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