dialogues for resilience in dynamic markets

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Dialogue for Resilience in Dynamic Markets Private Markets for Climate Resilience, February 2017

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Page 1: Dialogues for Resilience in Dynamic Markets

Dialogue for Resilience in

Dynamic Markets

Private Markets for Climate Resilience, February 2017

Page 2: Dialogues for Resilience in Dynamic Markets

Dialogues among decision makers and experts:

To establish a baseline of understanding1

Starting with actors in decision spaces2

Designed to engage, capture dynamic change3

Page 3: Dialogues for Resilience in Dynamic Markets

A dialogue for resilience in dynamic markets is…

Page 4: Dialogues for Resilience in Dynamic Markets

The dialogue is interactive communications with experts & stakeholders that shares understanding of the challenges and opportunities for investing in climate resilience

• Working closely together, with people who want to share their expertise and learn together

• Dialogues in conversations that continue throughout the project (and beyond); more than an event

• Benefits all parties: what does each take home from the event and the ongoing conversation?

• Establishes a common understanding of ways forward

• Purposeful: Not a survey of all views, nor a campaign to convince all actors

Dialogue to document shared knowledge

Page 5: Dialogues for Resilience in Dynamic Markets

What are we trying to achieve?Who

• Who are the actors in climate resilience?• How are the linked together?

Stake

• What is their current and potential investment in resilience?• What are the incentives for investment?

Knowledge

• What are current business processes and outcomes?• How is resilience incorporated in current processes at present?

Actions

• What are current options?• What investment is needed to promote effective actions?

Market structure

• What is the current stage of the market for climate resilience goods and services?• Are there market-wide actions required to promote private sector investment in climate resilience?

The Private Markets for Climate Resilience project uses dialogues as the first step in building a business case for climate resilience products and services in the private sector. The steps link to the analysis of risks and options (the B°Resilient Process Models) and the analysis of the market structure (maturity in supply and demand) for climate resilience products and services.

Page 6: Dialogues for Resilience in Dynamic Markets

Dialogues for resilience have several outputs that lead to an ‘insiders’ understanding of the market for climate resilience products and services

• Who acts leads to an assessment of potential partners for fund managers and investment projects. This is also the foundation of the analysis of the market structure.

• The stake and knowledge underpin the business case for investing with this actor. There is a range of business cases that we will explore—from building capacity across the sector network to the direct financial benefits to a single company that provides a climate resilience ‘product’

• The actions step is the link to the process models of outcomes and options for enhancing resilience. The close dialogue should come up with an extended list of current practice and potential innovations.

Steps

Page 7: Dialogues for Resilience in Dynamic Markets

Getting started…

Page 8: Dialogues for Resilience in Dynamic Markets

Actors act! Their interest in climate resilience is related to who they are.

List types of actors with a simple description:• Constitution:

• Single person• Informal group or voluntary network• Organization with formal management

• Competence: Level of understanding to expert knowledge about climate change and resilience

• Champion and capacity to act to achieve resilient processes, especially in working with our team

• Involvement in resilience process (elaborated in the process model template):• Consensual in supporting resilience outcomes• Contracted agent to deliver a climate resilience

product or service• Competitor that may prevent an outcome from being

achieved

Who are the actors?

Page 9: Dialogues for Resilience in Dynamic Markets

Actors act in relationship to other actors. Networks provide new opportunities (what if a new actor comes in?) and also barriers (some actors control the actions of others).

Use an actor-network map to take a quick look at the context for making decisions about climate resilience:• A simple network with few actors in clear links

that work to achieve resilience?• A complex web with many actors in links that

may compete with each other and no consensus as to desired outcomes?

• Which actors are champions who want to work with us to promote private sector investment in climate resilience?

What is their decision space?

Page 10: Dialogues for Resilience in Dynamic Markets

No single method for understanding actors is perfect and not all are required. The dialogues for resilience are dynamic, people-centred, iterative. They are not protocols that you have to follow.

Some of our favorite approaches:• Synthesize from articles and trade literature. Much is already

documented and experts have a good knowledge base to start with.

• Inventory actors in a typology, noting key attributes. A more formal method is a use case—an illustrative example of the actor as a story.

• Interviews fill in the gaps and test out our ideas of who acts and what is important to the actors. Analysis of narratives is helpful. Formal questionnaires may be more useful later when the questions are more specific.

• A matrix of competence and leadership locates actors on this issue. The matrix can then be used to ask ourselves, where do we want this actor to be as a result of working with us? And from there plan further dialogues and capacity building.

• Actor-netmap protocol from IFPRI has been adapted for climate resilience with a growing library of real examples. It can be a very interactive exercise with stakeholders, or equally a quick snapshot done by experts.

How do we learn, together?

Page 11: Dialogues for Resilience in Dynamic Markets

Actor-network map from St Lucia

Influence matrix

Competence…

Leadership…

Learning journey to become an expert-

champion

Example using the Actor-Netmap protocol (adapted for climate resilience with the option to classify barriers to action). This map shows the weak connection between two groups at different scales. The analysis can be extended to explore what happens if a new actor comes into the space.

The influence matrix is a classic in targeting communications. A party with low competence and leadership (the red squiggle) might be targeted to support in moving to be a champion for resilience (the blue circle).

Page 12: Dialogues for Resilience in Dynamic Markets

Designing dialogues…

Page 13: Dialogues for Resilience in Dynamic Markets

Starting with what is already documented, the dialogue deepens the conversation in several cycles.

Familiar steps:• Choose people to work with, starting with ‘friends of the family’.• Pilot dialogues to confirm what is already documented and test

approaches for further dialogues • Interviews and initial contacts• First dialogue on private sector climate resilience to establish

the processes of climate resilience and canvas initial ideas regarding options for investment

• Second dialogue to review B°Resilient Process Models and priorities for climate resilience investment including an initial discussion on the nature of the market

• Third dialogue to review the market analysis and follow up recommendations for priority investments and enhanced climate resilience products and services

A progression of learning

Page 14: Dialogues for Resilience in Dynamic Markets

The first dialogue focuses on structuring business processes in the sector and agreeing on what would be practical resilience outcomes.

B°Resilient Process Model Exercise:• Choose people to work with, starting with ‘friends of the family’.• Pilot dialogues to confirm what is already documented and test

approaches for further dialogues • Interviews and initial contacts• First dialogue on private sector climate resilience to establish

the processes of climate resilience and canvas initial ideas regarding options for investment

• Second dialogue to review B°Resilient Process Models and priorities for climate resilience investment including an initial discussion on the nature of the market

• Third dialogue to review the market analysis and follow up recommendations for priority investments and enhanced climate resilience products and services

First dialogue

Page 15: Dialogues for Resilience in Dynamic Markets

The second dialogue uses the process models to refine what could be done, including the initial analysis of the demand for climate resilience products and services.

Resilience options in a market analysis:There are likely to be hundreds of options for each sector. Choose options to focus on in the market analysis:• Relate the options to the business processes and choose the

most likely processes for early investment, given the stage of the market.

• Score the options using simple criteria directly related to the potential for effective private sector investment. There will be many good things to do, and some options require public action—to be noted. Think of our user as an investment fund manager.

What is the nature of the market? At this stage, the dialogue should flag up how the stakeholders see the current market (in the sector and for enhancing climate resilience) and any frameworks and analyses that they use. We are working on the market appraisal approach—ideas and feedback from key actors is welcome!

Second dialogue

Page 16: Dialogues for Resilience in Dynamic Markets

The project results deserve a third round in the conversation with stakeholders. The purpose is to ensure the people you have worked with benefit from their involvement in the dialogue and to test the waters for next steps.

Working toward influencing the market:• We may not have funds and time for a full third dialogue. • Various forms of communication can be developed, as

appropriate. • Look for opportunities to engage through existing networks,

other workshops and directly with the stakeholders.• We are keen to test the waters for follow up services we can

offer—the goal of the project is to build a shared business service and not just another assessment.

• If we have time and funding for a third dialogue, we can explore methods such as role playing games, visioning exercises and other creative ways to look at change-making.

Third dialogue

Page 17: Dialogues for Resilience in Dynamic Markets

The market for climate resilience products and services is emerging in many sectors and countries. This assessment supported by the MIF and NDF pioneers practical methods to identify investment-ready opportunities in developing countries.

• Main focus on Colombia, South Africa and The Philippines• Supporting assessments in Nicaragua, Kenya and Vietnam• Agriculture: value chains for major commodities and

subsistence crops• Transport: coastal and relating to agricultural markets• Scaled methodology:

• Dialogues for Resilience in the Dynamic engage stakeholders and experts• B°Resilient Process Models document risks and actions to improve resilience in

business processes• Integrate demand and supply in an analysis of Market Maturity for Climate

Resilience• Preliminary reports: August 2017 to be reviewed in the Oxford

Adaptation Academy• Final presentations: November and December 2017 in Helsinki

and Washington

Private Markets for Climate Resilience

This SlideShare draws upon the Private Markets for Climate Resilience project supported by the MIF and NDF through the ProAdapt initiative. © Creative Commons License.

Contributors: , J Colvin, E Downing, T Downing, , A Kareem, C Lacambra, J Lacambra, D Molloy, B Smith, P Tiongson, M Velas-Suarin, G Wilson

Page 18: Dialogues for Resilience in Dynamic Markets

Join us in the LinkedIn Group: Private Markets for Climate Resilience

For more information, contact the project co-directors:Tom Downing, [email protected] Lacambra, [email protected]