1. The Sequence of a PACA Exercise
Jörg Meyer-Stamer

2. What is the sequence of activities in a PACA?
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

3. What is the sequence of activities in a PACA?
Build-up
Prepa-
ration
Organi-
sation
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

4. Somebody has to initiate the PACA: The PACA Host
Government institution?
Private sector institution (e.g. Chamber)?
NGO?
Stakeholder Forum?
An organisation with credibility!
The PACA Host
motivates other stakeholders to support PACA
creates a PACA team
1 - 2 external facilitators
3 - 5 local people
who prepare the PACA (advance information, invitees for kick-off workshop, mini-workshops, interviews)
organises the kick-off workshop
coordinates the schedule for interviews and mini-workshops
organises the presentation of results.

5. Organising a PACA Exercise (1)
The proper way:
4 - 6 weeks in advance:
identify PACA Host or contract PACA Facilitators
define territory / focus
3 - 4 weeks in advance:
select PACA Team
plan details of organisation with PACA Host
1 - 2 weeks in advance:
book venues
invite people for kick-off, mini-workshops
make appointments for interviews
The frenzied way:
Try to do all this in a few days
Resources for organisation:
90 contacts
* 2 phone calls
* 10 minutes per call
= 30 hours on the phone!
plus marketing
plus correspondence
= a lot of time and effort!

6. Organising a PACA Exercise (2)
Make sure that the right people invite the relevant stakeholders
credible public sector actors to invite other public sector actors
credible private sector actors to invite other private sector actors
Use at least 3 of the six possible means of communication
face-to-face
phone
letter
fax
SMS

7. Collect advance information
Check available publications (research, articles in papers and journals)
Check statistics
Main sectors in the local economy:
What are critical success factors in these sectors?
What does “competitive advantage” in these sectors actually mean?
What are their main competitors nationally and internationally?
What is international good practice in promoting competitiveness in these sectors?

8. PACA-Exercise (2-3 weeks)
Build-up
Prepa-
ration
Organi-
sation
Hypo-
theses
Workshop
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

9. The Hypotheses Workshop -- an internal event of the PACA Team
Purpose:
Get a shared understanding of the expectations in the PACA Team
on PACA
on the location
on possible proposals
Make implicit opinions and prejudice explicit
Create a base of reference for the next steps of work
Option: Turn the Hypotheses Workshop into a crash course for PACA team members
Structure
Presentation on PACA
Mesocard exercise:
clarification of open questions on PACA
PACA Facilitators respond
Mesocard exercises:
What do we expect to be our findings?
What may come out as proposals?
Which LED activities are already going on?

10. PACA-Exercise (2-3 weeks)
Hypo-
theses
Workshop
Kick-
off
Workshop
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

11. Kick-off workshop: Preparation
Invite participants:
Representatives of business associations
Representatives of local government
Representatives of leading firms
Representatives of support institutions
Local leaders / connectors / mavens
Local media
Reserve adequate locality
Prepare Mesocard materials

12. Kick-off workshop: Purpose
Inform local stakeholders about the PACA
Raise information about the local economy
hard information
participants’ perception / interpretation of local reality
Motivate participants to support the PACA exercise
arrange appointments for interviews
persuade colleagues to be available for interviews

13. Kick-off workshop: Structure
Presentation of key concepts
the Diamond of Local Competitiveness
optional: LED
Participants write Mesocards
four diamond corners -- strong & weak points
competitive advantage of the region
vocation in ten year’s time
Discussion of cards / observations / questions
Explanation of subsequent steps

14. The structure of the Diamond in the Kick-off Workshop
Govern-
ment
Main sectors and
companies in the
local economy:
What are the strong
and weak points?
Supporting institutions
(factor conditions):
* training, technology,
finance, public util.,
infrastructure
* location, land
Strong + weak points
Demand conditions:
* Sophisticated demand
* Unusual demand
* Pioneering / innovative
demand
Strong + weak points
Supporting industries
(suppliers, subcon-
tractors, service
providers):
Strong + weak points

15. What does the kickoff workshop look like?

16. PACA-Exercise (2-3 weeks)
Kick-
off
Workshop
Interviews
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

17. Field work: Interviews
identification of firms, institutions and individuals to be met
during kick-off workshop, discussion with Chamber, local government, key informers
structured interviews (“conversations”), usually with director/CEO/executive secretary, based on open questionnaire and qualitative methodology
conducted by external and local members of PACA Team (2 - 3 persons)
takes notes about observations, write minutes, formulate more hypotheses / reformulate hypotheses

18. What is an interview guideline (as opposed to a questionnaire)?
Closed questions (yes/no, scoring)
Precise wording of questions is paramount
Fixed sequence of questions
Guideline:
Open questions
Wording of question not defined ex-ante - depends on situation
Interview dramaturgy depends on interviewee

19. What is the purpose and structure of the interview?
To understand the internal structure of the company / institution
To understand how it fits into the local economy
To gather its perception of the local economy
To assess its willingness to participate in a LED initiative
To motivate it to participate in a LED initiative
Structure (company interview):
Intra-firm effort to improve competitive advantage
Interaction with suppliers and subcontractors
Interaction with customers
Interaction with competitors
Interaction with supporting institutions: training, R+D, information, finance, etc.
Interaction with business association and Chamber
Relationship with and percep-tion of local government

20. A good way to organize the interview: The Five Forces Plus
Macro-
framework
Rules +
regulations
Supporting
institutions:
strong and weak
points
New entrants:
How likely?
Who?
What advantage?
Bargaining power of
suppliers
Rivalry:
Who are competitors?
Competitive advantage?
Bargaining power of
customers
Threat of substitutive
products (radical tech-
nical change, change
in consumer behavior)

21. Field work: Typical interview situations

22. PACA-Exercise (2-3 weeks)
Interviews
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

23. Field work: Mini-workshops
persons with similar characteristics, e.g.
same industry and company-size (e.g. small garment firms, small food processing firms)
similar background (e.g. CEFE entrepreneurs, woman entrepreneurs, innovative firms)
purpose: get information on the sector
evaluation of performance of the sector
Mesocard
Structuring tools like Diamond, Five Forces Analysis, transaction matrix, SWOT, ...
optional: first brainstorming on options for action

24. A format for a mini-workshop: An adaptation of the Diamond
Govern-
ment
Competitive advantage
and disadvantage of
the sector
What are the strong
and weak points?
Supporting institutions
(factor conditions):
* training, technology,
finance, public util.,
infrastructure
* location, land
Strong + weak points
Demand conditions:
* Sophisticated demand
* Unusual demand
* Pioneering / innovative
demand
Strong + weak points
Supporting industries
(suppliers, subcon-
tractors, service
providers)
Strong + weak points

25. Another format for a mini-workshop: The Five Forces Analysis
New entrants:
How likely?
Who?
What advantage?
Bargaining power of
suppliers
Rivalry:
Who are competitors?
Competitive advantage?
Bargaining power of
customers
Threat of substitutive
products (radical tech-
nical change, change
in consumer behavior)

26. A variation of the Five Forces format to assess market power and barriers to entry
New entrants:
How likely?
Who?
What advantage?
Bargaining power of
suppliers
Rivalry:
Who are competitors?
Competitive advantage?
Bargaining power of
customers
Barriers to diversification:
How easy to diversify? Barriers to entry in neighbouring markets?

27. Another format for a mini-workshop: Transaction matrix
Benefits and costs/risks of co-operation
between A and B
(e.g. IT firms and universities)
Cost + risk
Benefit + advantage
... for A
... for B

28. When do we use which Mini-workshop format?
Diamond
Five Forces
Transaction Matrix
heterogeneous group
focus at locational factors
diversified landscape of supporting institutions
homogeneous group of businesses
few supporting institutions
supporting institutions
public sector

29. What does a mini-workshop look like?

30. A typical day during PACA fieldwork
First interview at 8:00, takes longer than expected
Arrive late for 9:30 interview (got lost in industrial park because instructions were inadequate)
Arrive even later for 11:00 interview, conclude interview at 13:00, rush to venue for Miniworkshop
No time for lunch, grab a sandwich on the way
Conduct Miniworkshop at 14:00 -- some participants are late, the discussion is very lively, workshop takes longer than expected
Arrive just in time for 17:00 PACA Team meeting
Rush to dinner with key local informant at 19:00
Drop into bed, dead tired, at 22:00, realising that you didn’t have time to write up the interview minutes

31. Structure of a rushed PACA Exercise
Day 1
Hypo-
theses WS
Lunch
Kick-off
Workshop
Day 2
Mini-WS and / or
interviews
Fast food
Team
meeting
Day 3
Mini-WS and / or
interviews
Sandwich
Team
meeting
Day 4
Mini-WS and / or
interviews
Famine
Interviews
Day 5
Interviews
Results
work-
shop
Day 6
Elabo-
ration of
Presen-
tation
Event
Way-
Forward
Workshop
Team
celebrates
Morning
Afternoon

32. Realistic structure of a PACA Exercise
Monday
Tuesday
Wednesd
Thursday
Friday
Saturday
Hypo-
theses WS
Kick-off
Workshop
Interviews
Mini-WS and / or
interviews
Mini-WS and / or
interviews
Mini-WS and / or
interviews
Mini-WS and / or
interviews
Week 1
Mini-WS and / or
interviews
Interviews
Results
work-
shop
Presen-
tation
Event
Way-
Forward
Workshop
Week 2

33. Venues for interviews and Mini-workshops
Conduct interviews preferably on the site / at the office of the interviewee
take a walk around the company / institution before or after the interview
Conduct Mini-workshops
at venues that are convenient for the participants, which may not the venues that are convenient for you
at a time that is convenient for the participants.

34. Documentation of the PACA fieldwork
Interview minutes
brief (use template!)
capture main insights, proposals, possibility of becoming a champion
Miniworkshops
put up the brownpaper with the cards in the central PACA Team venue
photodocumentation
PACAmate software (under development)

35. PACA-Exercise (2-3 weeks)
Results
Workshop
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

36. Results workshop, part 1 Internal exercise of the PACA Team:
verification / falsification of hypotheses
preparation of diagnostic (Mesocard)
strong and weak points by industry / economic branch
strong and weak points of supporting institutions, associations, local government
prioritisation of observations (Pareto).

37. Results workshop, part 2
verify: what were the proposals which came up during the field work, i.e. in interviews and mini-workshops?
what are further proposals the team can come up with?
Pareto the proposals to sideline trivial or unrealistic proposals
verify: which highly scored proposals meet the following criteria:
realistic and viable
apt for quick implementation
potential for quick, visible effect

38. Having a closer look at the Three Criteria
Realistic and viable
can this proposal be implemented with the locally available resources?
motivation, know-how, institutions, funds, ...
Apt for quick implementation
can you start planning for implementation next week?
Potential for quick, visible effect
can you expect a visible effect within three months?
LOCA Team defines a score between 1 (=no) and 3 (=yes) for each criterion
Multiply the three scores

39. Typical constellations regarding business sectors in the local economy: Where to start?
Sector is
doing well
Sector is doing
not so well
Sector wants
joint action to
strengthen
competitiveness
Strategic
Sector
Desparate
sector
Sector does not
want joint action
to strengthen
competitiveness
Busy
sector
Hopeless
sector

40. Management of expectations
Do not create unrealistic expectations!
do not formulate proposals which are unlikely to be implemented!
don‘t promise activities which will overwhelm your capacity!
don‘t promise that you will solve the local stakeholders‘ problems!
don‘t give the impression that you come with a big bag of money!
limit the number of proposals, and mention who will be in charge of them!

41. What it looks like in practice

42. PACA-Exercise (2-3 weeks)
Results
Workshop
Presen-
tation
Event
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

43. Structure of the Presentation Event
Presentation of concepts, findings and proposals
explain the concepts and the methodology used (Powerpoint)
present the diagnostic (Powerpoint)
present the proposals (Powerpoint
Mesocard exercise with audience
optional: additional activities with interested participants
e.g. ask for volunteers to become project champions

44. What does the presentation look like?

45. Discussion of findings and proposals
distribute cards and markers among the participants, explain the Mesocard rules (1 idea per card, write legibly)
ask the participants to write down their observations, questions, criticism and proposals
stick the cards to the wall, discuss them with the participants
avoid opening an opportunity for local dignitaries to give speech!

46. Identifying Champions in the Presentation Event
In the second part of the Presentation Event:
invite participants to indicate their interest
to champion specific activities
to participate in specific activities
invite volunteers to a Way-forward Workshop on the following day

47. Why “Presentation Event”?
The format is different from a normal presentation
admittedly, there is usually a Powerpoint presentation
the Mesocard exercise breaks through the usual rituals
Consider to give the presentation at an unusual location
to make sure that participants don’t forget the event

48. What the Presentation Event looks like

49. PACA-Exercise (2-3 weeks)
Presen-
tation
Event
Way-
forward
Workshops
Prepa-
ration:
* Orga
* Ad-
vance
info
Hy-
po-
the-
sis
Wks
Kick-
off
Wks
Interviews
Results-
Workshop:
Diagnosis +
Proposals
Pre-
sen-
tation
event
Way
for-
ward
Wks
Imple-
mentation
Mini-workshops
Fieldwork (1-2 weeks)
PACA-Exercise (2-3 weeks)
PACA-Project

50. Conducting a Way-forward Workshop (1)
Option 1, with a small group:
detailed discussion of implementation of a small number of proposals
ask Pfeiffer’s Six Questions
define responsibilities

51. Pfeiffer’s Six Questions
For each proposal:
How exactly are we going to do this?
Who is taking responsibility?
Who has to collaborate
What are the resources we need?
When do we start?
How do we know that the activity started?

52. Conducting a Way-forward Workshop (2)
Option 2, with a bigger group:
clarify proposals
initial discussion on how to implement
define responsibilities and make appointments for subsequent meetings around each proposal

53. Two weeks later Organise a Champions’ Breakfast
to signal commitment from your side
to motivate Champions
to connect Champions
to assess progress
to stimulate exchange of experience
Turn Champions’ Breakfast into regular event

54. So what comes after PACA?
Option 1: More PACAs
to monitor, energise and re-focus ongoing activities
to initiate more intense development activities in specific clusters or value-chains
to constantly adjust an LED effort to new opportunities and necessities
Generic LED, Reflexive LED
Option 2: From PACA to local strategy
PACA leads to alignment, sophistication and motivation of local players
Players agree to formulate an explicit LED strategy

55. Conceptualizing PACA: LED as an iterative process
Crisis of
fragmentation
Implementation
Assessment
Reflection
Implementation
Adjustment
Planning for new
action
Assessment
Reflection
Adjustment
Planning for new
action
Implementation
Assessment
Reflection
Planning for
quick implementation
Rapid
appraisal (PACA)

56. The learning cycle in PACA
by doing
Highlighting
facts + percep-
tions about the
local economy
Aligning
information and
perceptions
Identifying opportunities
for joint action

57. Implementation of quick-win
catalytic projects plus
continu-
ation of
quick-
win
activi-
ties
Implementation of next
round of
activities
(including
more
complex
inter-
ventions)
Presentation
Event
PACA
Follow- up
Work-
shop
Way-
forward
Fieldwork
+ Results
Workshop
Build-up
Kick-off
Targeted
PACA-
Exercises
to opera-
tionalise
GENESIS
Implementation of quick-win
activities
GENESIS Strategy
Formulation

58. Using PACA to initiate a territorial development initiative
Month Activities
Lack of
communication
Distrust
Effects
Credibility
Motivation
Learning
Trust
Coordi- nation
Ambition
Competence
Professio-
nalisation
Institutions
Project management
LED Forum
LED Agency 1 6 12 18 24 30
quick-win projects
more ambitious
projects
quick-win projects
quick-win projects
catalytic projects
quick-win projects
quick-win projects

59. Possible structure of a Two Year PACA Project
January
Implementation
February
Third appraisal
Launch GENESIS
Complete GENESIS
Focussed PACA Exercise
March
April
May
June
February
Start build-up
March
First PACA Exercise
April
Implementation
May
June
First appraisal
July
Implementation
August
Focussed PACA Exercise
September
October
November
Second appraisal
December
Implementation
Fourth appraisal
July
August
September
October
November
December
Fifth appraisal

60. Thank you for your attention!
More information at: