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Based on our unique perspective as an organisation

that sits at the intersection of the corporate world

and the international development sector, Accenture

Development Partnerships believes that successful

development in the next decade will be characterised

by what we term cross-sector convergence;

a convergence of challenges, a convergence

of approaches and a convergence of solutions.

Development practitioners, irrespective of the sector

or the organisation they work in, will need to break

free from the shackles of traditional mindsets on the

roles and boundaries of each sectorpublic, private

and civil societyand embrace new thinking and

approaches that are somewhat agnostic on inputs

and intermediaries, but instead are focused on

optimising outcomes and impact.

What is cross-sector convergence?

Cross-sector convergence is the meeting of

business opportunity with positive social,economic or environmental impacts on global

development. Cross-sector convergence manifests

itself in many formsfrom inclusive business

models driven by corporations, to complex public-

private partnerships for delivery of public services

that are initiated by governments. At its most

extreme, it will manifest itself in new hybrid

models that transcend the traditional attributes of

a single sector. But at its core, this trend is about

re-thinking the traditional roles of the sector in

order to focus on new and innovative solutions to

development challenges.

Solutions characterised by this cross-sector

convergence mindset are many and varied, but

share a number of core principles in common:

Outcome over inputA cross-sector

convergence solution starts with the desired

outcome and impact, and then looks at which

entities have the capabilities to best achieve that

outcome. In this mindset, solutions are not about

a standalone project delivered by one entity,

but about collaboration among stakeholders

in a particular ecosystem, each of whom bring

distinct capabilities.

At the United Nations Summit on Millennium Development Goals in New York this September,the attention of world leaders will turn from domestic debt crises to the 10-year checkpoint onthe Millennium Development Goals (MDGs). No doubt there will be some good news. But the audienceis also likely to hear many explanations for lack of progress in othersthe reality is that, to drive highperformance, a transformational shift in how we think about achieving the MDGs will be required, and inparticular, how the latent power of the business world can be harnessed for greater development impact.

Sustainable and scalableCross-sector

convergence looks towards solutions that are

sustainable over time, not towards projects with

a three- or five-year life-span that go away when

a defined funding source dries out. Such solutions

oftenthough not alwaysare market-oriented,

looking to the power of market forces to drive

sustainability and scalability.

Organisationally agnosticCross-sector

convergence is organisationally agnostic. Inputs

can be sourced from entities across the public,

private or nonprofit sectors, and both locally and

internationally. While one organisation will often

play a lead role, the solution itself will most

often be delivered through an array of entities

working together.

What is driving cross-sector

convergence?Business and development sector players are both

being driven towards cross-sector convergence

but the drivers for each are quite distinct.

For business, Accenture research shows that

companies everywhere are being forced to

adapt to the rise of the multi-polar world1the

reality that emerging markets today possess

increasing economic and geopolitical clout, and

represent the greatest future source of growth

in a globalising economy, of new markets and

customers, and of new talent and innovation.

So in one sense, business is being driven towards

cross-sector convergence by a traditional set of

business drivers:

Growth opportunities in emerging marketsIn

new markets, growth opportunities and new

customer segments call for thinking and acting in

terms of inclusive business modelsfor example,

tapping the growing spending power of Indias

rural communities.

Consumer demand in developed countriesIn

developed markets, there is a growing need

to respond to increasingly savvy consumers

demands for sustainable and ethical products.

Accenture recently completed the second

United Nations Global Compact CEO study2

which found that 58 percent of the CEOs

surveyed cited consumers as the most

important stakeholder group that will affect

the way they manage societal expectations.

Licence to operateCompanies need to

demonstrate higher levels of corporate

responsibility in order to gain access to

emerging markets and their resources.

However, in another sense, business is being

driven to cross-sector convergence by the

realisation that its success in emerging markets

requires not only accessing customers and

resources, but in building sustainable societies.

The multi-polar world is inextricably intertwined

with the multi-polarised world. This is the world

that is not yet integrated into the global economy;

it is the world in which 2.7 billion people still live

on less than US$2/day; where more than 1 billion

people lack access to safe and clean drinking water;

and where up to 30,000 children die of easily

treatable diseases each day. Enlightened business

leaders understand that poverty inhibits prosperity;

that infectious diseases reduce the productivity of

a companys employees; and that child mortality

and malnutrition impact long-term talent markets.

All of these are prerequisites for long-term business

growth, and, thus, all are areas where business can

play a roleand has a self-interest in doing so.

In contrast, development sector players are being

driven towards cross-sector convergence by their

missions of achieving development impact. They

are increasingly realising that partnering with

the private sector can, in many circumstances,

help enhance the scalability, sustainability and

long-term impact of efforts ranging from health

to education, to livelihoods and job creation.

1FromGlobalConnectiontoGlobalOrchestration:FutureBusiness

ModelsforHighPerformanceWhereTechnologyandtheMultiPolar

WorldMeet

2ANewEraofSustainability:UNglobalCompactAccentureCEO

Study2010

Cross-sector convergenceA new view of global development

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How does cross-sector

convergence manifest itself?Collaboration across the sectorsprivate, public

and civil societyis not new, and partnerships

are on the increase. But these partnerships

are often defined by a single issue or single

geography and they struggle to scale, replicate or

deliver more than piecemeal change.

Cross-sector convergence on the other hand

goes a step further. More complex forms of

collaboration are emergingcoalitions that

comprise a variety of different players and seek

to affect systemic change on issues ranging

from malnutrition to access to medicines. Thesemore complex collaborations are likely to have

a far more disruptive effect on traditional value

chains and sector boundaries, creating a new set

of development approaches which involve hybrid

business models, hybrid funding models and

hybrid delivery models.

Hybrid business models will seek to combine

profit with broader societal impact. They will

share many of the attributes of what is loosely

termed social enterprise, but be driven by

corporations and have an inherent ability to

scale. Examples include Grameen Danone Foods

Ltd, which targets the rural poor with a newblend of affordable and nutritious yogurt known

as Shakti Doi (meaning power yogurt).

Hybrid funding models reflect an increasing

willingness on the part of donors to fund

innovation that delivers tangible development

impacts, even if this may result in public

money feeding private sector investment in

cases of market failure. The UKs Department

for International Developments new Business

Innovation Facility, the Gates USAID Challenge

Fund for cash-for-work mobile payments in Haiti

and the aspiration to create a Dow Jones Global

Fund 50 Index for investable products to fightHIV, TB and Malaria are all good examples.

Hybrid delivery models apply the distinctive

competences of one type of organisation inan adjacent value chain or sector. The much-

celebrated M-PESA mobile phone-based banking

and money transfer product saw a mobile

operator, Safaricom, enter the financial services

sector in Kenya as a technology-enabled market

opportunity that has had a massive impact on

financial inclusion in Kenya. M-PESA captured 6.5

million subscribers by May 2009 and manages 2

million daily transactions in Kenya alone.

Implications

It is clear that the interests of the development

agencies and businesses are converging, with

implications for all.

For business, cross-sector convergence means

looking at emerging markets more holistically,

not only as new customers or sources of raw

materials, but as societies to strengthenand

thus serveas future sustainable markets for

goods, services and talent in the long term.

For development funding agencies, it suggests

being softer on inputs and intermediaries and

harder on outcomes and impactand funding

non-traditional entities or initiatives that go

against the prevailing orthodoxy.

For NGOs and other implementing organisations,

it suggests looking to partner more strategically

with business to achieve scalable and sustainable

long-term solutions, not just as sources of

funding for short-term projects. It could even

mean a degree of reinvention in parts of their

traditional value chain to embrace new hybrid

models of delivery or funding.

And for all, Accenture Development Partnerships

believes cross-sector convergence can be a

positive force for changea force for achieving

the MDGs in a way which harnesses and alignsthe distinct capabilitiesand distinct interests

of each sector to deliver high performance.

Gib BullochExecutive Director

Accenture Development Partnerships

September 2010

To learn more about AccentureDevelopment Partnerships, and our

views on Cross-sector convergencevisit accenture.com/adp

Accenture Development Partnerships is

a group within Accenture designed tooperate on a not for profit basis to channel

Accenture's strategic business, technology

and project management expertise to non-

profit organisations, NGOs, foundation

and donor organisations operating in

the development sectorhelping these

organizations achieve their social and

economic development goals. Accenture

Development Partnerships started as a

corporate social enterprise in 2003 and

has to date completed 330 projects for

74 non-profit clients, working across 58developing countries, and deploying more

than 700 Accenture employees.

2010

Accenture

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