mfs extension strategy presentation (final 30-5-14)

30 May 2014

EXTENSION AND PORTFOLIO DEVELOPMENT STRATEGY

TODAY WE WILL LOOK AT…

• The broader extension landscape • A mirror• Some principles

– Market segmentation and engagement– Products and services portfolio

• Options for where to next

THE EXTENSION LANDSCAPEA NATIONAL PERSPECTIVE (1)

• DPIs– Seeking higher (relative) levels of levy co-investment– Most prescribing:

• Minimum industry co-funding levels• Cost (plus) recovery

– Desire to maintain a “presence” in industry – Key positions often dependent on “soft funding”– Subscribed to one or more national strategies

THE EXTENSION LANDSCAPEA NATIONAL PERSPECTIVE (2)

• RDCs – An increasing contribution to extension

• Many / most challenged by extension role / priorities • Increasingly expected to engage in ‘industry-good’ or

‘industry/public good’ space– Levy-funded

• Must provide a value/service (of some form) to all levy payers– Formal +/- ambitious attribution requirements – Subscribed to one or more national strategies

THE EXTENSION LANDSCAPEA NATIONAL PERSPECTIVE (3)

• Private sector– Consultants, resellers, banks, corporates, etc– Seeking higher (relative) levels of involvement– Increasingly engaged in and/or supporting group-based

activities – Many delivery entities are small- to medium- businesses

• High dependence on “soft funding”• Low overhead structure

– Fee-for-service tied directly to results achieved– Not subscribed to / aligned with national strategies

WHY IS THIS IMPORTANT?

“COLLABORATE OR DIE”

CAPACITY &CAPABILITY

for the long-term

CONTEXT &CO-ORDINATION

in RD&E application

COLLABORATION & CO-INVESTMENTin delivering R&D to industry

“COLLABORATE OR DIE”

CAPACITY &CAPABILITY

for the long-term

CONTEXT &CO-ORDINATION

in RD&E application

COLLABORATION & CO-INVESTMENTin delivering R&D to industry

• MFS is part of a bigger picture– Primary role in delivering value locally– Secondary role in contributing to the extension landscape

(regional ↔ state ↔ national) • Collaboration is paramount

– Agri-business– Government and NFPs (RDCs, Landcare, etc)– Other groups

• Building (extension) capacity is key to longevity and success– As MFS grows, we’ll need to develop the resources we need

to deliver value

• Public-good activities remain a primary responsibility for the public sector• Industry-good activities co-funded by industry bodies and the public sector • Private-good activities (increasingly) undertaken on a user-pays basis

PUBLIC GOOD INDUSTRY GOOD PRIVATE GOOD

FREE USER - PAYS

RDCs

Public sectorPrivate sector

TEMPLATE FOR RESOURCE DEPLOYMENT

HOW ARE WE LOOKING?

MFS’ OBJECTIVES• Provide members with proven, relevant and targeted

information to improve knowledge and profitability • Provide a forum to focus on and manage research,

development and extension on the Monaro • Provide opportunities for members to interact and

exchange ideas • Be member-owned and driven • Develop partnerships by seeking the involvement of

individuals and organisations in the pursuit of our objectives

Who / where and what

SOME QUESTIONS COME TO MIND…

SOME QUESTIONS COME TO MIND…• What does “success” look like for MFS?

– Where do we want to be in 2, 5, 10 and 20 years?• What does an MFS member look like?

– How well do we know our members’ needs, aspirations, motivations?– Does “everyone” need to be a member?

• What non-member services:– Can/could MFS provide?– Must MFS provide (contractually)?

• How are we performing in:– Enhancing knowledge and profitability?– Managing RD&E?– Facilitating interaction and exchange of ideas?

PRINCIPLES OF ENGAGEMENTDELIVERY MODELS

• Mode of engagement– Active vs passive– Broad-scale (untargeted) vs segmented (targeted)

• Outcome sought / achieved– Enhanced awareness– Increased knowledge– Established skills– Improvements in the enterprise or business

THE RD&E SECTOR HAS HISTORICALLY STRUGGLED WITH “PRODUCT DEVELOPMENT” / “PIPELINE” EFFICACY

SUPPLY-DRIVENRD&E

DEMAND-DRIVENRD&E

PRINCIPLES OF ENGAGEMENTSTAKEHOLDER SEGMENTATION

Innovators(2.5%)

EarlyAdopters(13.5%)

Early Majority(34%)

Late Majority(34%)

Late / non-adopters (16%)

DECREASING SPEED AND/OR LEVEL OF INNOVATION / INNOVATIVE CAPACITY

LEAD USERMARKET

MAJORITY MARKET LATE / NON-ADOPTER MARKET

PRINCIPLES OF ENGAGEMENTSTAKEHOLDER SEGMENTATION

• Multiple mechanisms– Physical (scale, location, enterprise mix, etc)– Demographic (age, gender, family status, etc)– Behavioural (collaborative / individual, passive / active, etc)– Skills / capability level– Motivational (speed, price, innovation, profit, etc)

• Multiple considerations– Value-adding potential in each segment– Relative “importance” of each segment (financial / non-financial) – Capacity and pain:gain ratio in collating associated information– Tying into the / a “product development” pipeline

• Consultation with lead / end users, intermediaries • Modelling likely costs, benefits and market size• Process, plan or cycle to guide inputs and timing• Validation / testing for prototype / price / market testing • Auditing to identify duplication / gaps / blockages• Planning to determine resource requirements,

development advertisement rollout table• Re-validation / re-testing to check product supplied

versus product demanded

PRINCIPLES OF ENGAGEMENTPRODUCT & SERVICES PORTFOLIO

AWARENESS(CATEGORY A)

KASA(CATEGORY B)

PRACTICE CHANGE(CATEGORY C)

REGI

ON

AL /

STAT

EN

ATIO

NAL

/ SE

CTO

RLO

CAL

COMMUNICATION (PASSIVE)

GROUP ENGAGEMENT

(ACTIVE)

GROUP ENGAGEMENT

(APPLIED)

NUMBER OF PRODUCERSTARGETTED

$ PERPRODUCERTARGETTED

RELATIVEENGAGEMENT FOCUS APPROACH KPIs

AWARENESS IN TARGET MARKET SEGMENT/S

• PARTICPATION RATES

• KASA CHANGE/S

• PARTICIPANT APPLICATION (OF PRACTICE/S) RATES

• IMPACT CHANGES

FORMAT

• MAGAZINES• FORUMS• EXPOS

• WORKSHOPS & TRAINING

• PRODUCER DEMO / VALIDATION SITES

FREE

RELATIVEUSER COST

EXTENSION / ADOPTION FRAMEWORK

USERPAYS

PRE-REQUISITES

• Effective communication

• Compelling reason / desire to change

• Viable alternative to current practice

ENABLERS

• Relative advantage

• Compatibility• Complexity• Trial-ability• Observe-ability

PRINCIPLES OF ENGAGEMENTFACILITATING ADOPTION

WHAT DOES ALL THIS MEAN?

• MFS is at a cross-roads in its development– An opportunity (and need) exists to expand our value-add– Farming systems groups are likely to be pivotal to the operation and

success of the future extension landscape• The more we want to integrate with (and access $$$ from) the

likes of LLS, RDCs (etc) the sooner we need to:– Broaden our scope beyond single-tier membership– Better understand – in detail – the needs, drivers and limitations of

local producers / production systems– Develop a products and services portfolio that delivers value at

different price (membership) points– Understand, measure and report our ROI

WHAT DOES ALL THIS MEAN?(IMHO)

AT THE RISK OF STATING THE BLEEDING OBVIOUS…

THIS REQUIRES A LOT OF WORK• The systems and processes to support these developments take

time and cost money– CRM, surveys, evaluation, reporting

• Growth and change can invoke resistance – Parallel management of existing members’ expectations will be

required• More stakeholders (members, partners, co-investors) requires

strong rules of engagement– Needs “tight” governance, compliance, funding and disclosure controls– Risk management considerations (continuity of income)

…ALL OF WHICH IS / ARE MANAGEABLE…

SCRUTINY WILL INCREASINGLY BE APPLIED TO OUR / THE COST:BENEFIT (ESPECIALLY WHEN USING PUBLIC OR LEVY FUNDS)

Participation 100% 75% 50%Businesses 53 39.75 26.5

$95000 $1792 $2390 $3585$ per business

END