Public-Private Partnerships for Humanitarian Action
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1 Innovation and Technology for Development Centre Public-Private Partnerships for Humanitarian Action EXECUTIVE SUMMARY In collaboration with July 2013
2 1. Introduction: background and motivation Governments, international agencies and humanitarian NGOs have traditionally been the main actors alleviating the suffering of vulnerable communities in the aftermath of large-scale natural disasters or man-made humanitarian emergencies. The private sector occasionally supported those humanitarian operations through financial or inkind donations, usually once the humanitarian emergency had occurred (in the disaster relief phase). However, in the last decade the role played by the private sector in the international humanitarian system has become more active. As part of their Corporate Social Responsibility (CSR) programs, companies are increasingly willing to establish crosssector partnerships with humanitarian organisations for making their specific capabilities available to the international community. On the one hand, collaboration with humanitarian agencies represents an opportunity for businesses to create shared value with non-traditional stakeholders. On the other hand, humanitarian organizations, which at one time regarded cash or in-kind donations as the only useful corporate contribution, are now recognizing that the private sector has more to offer in terms of material and human resources, know-how and technological innovation potential. By partnering with socially responsible firms, humanitarian actors can access to new skills and resources that build-up on their capacity and preparedness to respond to disasters. In this context, the Office for Humanitarian Action of the Spanish Agency for International Development (AECID) has recently launched an initiative aiming at boosting the engagement of socially responsible companies in humanitarian operations. The first step of this initiative consists in identifying and analysing best practices and lessons learnt in other key success stories of private-sector engagement in humanitarian contexts. This study is the starting point for the design of a set of guidelines, adapted to the Spanish context, for building strong and sustainable partnerships between the private sector and humanitarian actors. 2
3 2. Objectives and methodology The aim of the document is to develop an exploratory study of the potential of crosssector partnerships between private-sector firms and humanitarian actors. This aim is broken down into the following objectives: To review the literature on public-private partnerships in humanitarian action, with a special focus on the features making this type of collaboration different from other ways of engaging the private sector in humanitarian contexts. To identify and analyse a set of key case studies showcasing best practices and lessons learnt in forging long-term cross-sector collaborations in humanitarian contexts. To develop a set of guidelines for the promoting of the engagement of privatesector firms in the humanitarian action of the Spanish cooperation through new paradigms that go beyond the classical donor-recipient models. The methodology used to achieve those objectives is based on multiple case study research. After a desk research phase, we carried out a set of semi-structured interviews with key persons involved in a shortlist of experiences that were selected due to their relevance and representativeness. Table 1 provides further information on the interviews held. Table 1 Key cross-sector partnership experiences analysed in this study Case study Partners Sector Spokepersons #1 WFP-TNT Logistics #2 WFP-Royal DSM Nutritional products #3 OCHA DHL Logistics Marco Selva Adriana Zermeño Marco Selva Adriana Zermeño Isabelle de Muyser-Boucher Kathrin Mohr #4 Emergency.lu Telecommunications Marianne Donven 3
4 3. Key results and conclusions 3.1. A maturity model for private sector engagement in humanitarian operations Moving from philanthropic, occasional collaborations to long-term sustainable partnerships between firms and humanitarian actors can be described as a continuous activity that requires time for building up trust and mutual understanding between the partners. The features that make philanthropic collaborations different from crosssector partnerships are summarized in Table 2. Table 2 The public-private collaboration continuum (adapted from Austin, 2000) MATURITY MODEL Philanthropic collaboration Partnership Level of engagement Low High Importance to the mission Peripheral Central Magnitude of the resources Small Big Type of resources Money Core competencies Scope of activities Narrow Broad Interaction level Infrequent Intensive Trust Modest Deep Managerial complexity Simple Complex Strategic value Minor Major Value creation Generic resource transfer Core competencies exchange. Co-creation of unique value 3.2. Best practices The best practices and lessons learnt from the experiences analysed in this study are classified according to the dynamics of the collaboration: initial steps, during the partnership, and future and value renewal. 4
5 Initial steps: creating the partnership At the beginning, it is necessary to create a climate of trust and mutual understanding among the partners. This requires: Leadership and clear vision on how the partnership creates value for both organisations. In all the experiences analysed, the collaboration was settled through a clear vision from top management (CEO level, ministry level) either in the firm, in the humanitarian actor or in both, on the strategic value of establishing the partnership. This clear vision appears in the study as a necessary condition for forging new long-term cross-sector collaborations. Identify and undertake, in the beginning, a quick-win project. In order to create internal buy-in, especially from the humanitarian actor side, it is recommended to identify some initial projects that can deliver fast and measurable results. Private companies and humanitarian agencies have very different organizational cultures and decision-making processes, so a certain level of culture clash is to be expected in the initial phases of the collaboration. Quickwin projects help to create trust and mutual understanding among the partners and to overcome internal skepticism. Needs-driven partnerships and their innovation potential. All the partnerships analysed in the study responded to a specific need of the humanitarian community (e.g. need of better logistics, need of better micronutrients, need of enhanced communications in the aftermath of a disaster). The collaboration with a private sector partner enabled the agencies to better address those needs, through development in most cases of new products and services directed towards the humanitarian community (innovation potential of the partnership). Written agreements (e.g. memorandum of understanding) from the beginning. In the initial steps of the collaboration it is recommended to work on defining the roles and responsibilities of each partner, the initial objectives and time frame to achieve them and procedure for renewing the agreement. 5
6 During the partnership: evaluation, communication and strong governance mechanisms Strong governance mechanisms have been identified as a key issue for ensuring successful partnerships. Those governance mechanisms include the formal committees at different levels (strategic, technical) that support the management of the alliance. Those committees in most of the cases analysed have frequent meeting schedules and their composition is also very clearly appointed. Key performance indicators and continuous improvement approach. Evaluation of the benefits of the alliance is another critical success factor for sustainable partnerships. The benefits for both partners should be assessed. Even if different levels of complexity and specificity have been detected in the type of indicators selected for monitoring, all the partnerships in the study incorporate somehow an evaluation procedure and a continuous improvement approach. Joint communication. In all the cases, partners collaborate in disseminating together the results and achievements of their collaboration in different humanitarian and corporate forums. The future: renewing value within the partnership In order to ensure the long-term sustainability of the collaboration, it is necessary to pay attention to the evolving needs of each of the partners and the request of their respective stakeholders when redefining the new objectives and projects to be developed within the partnership. Changes in the management team in the humanitarian actor or economical struggles in the corporate side should not compromise the long-term commitment of both partners. Needs-driven collaborations that have developed strong governance mechanisms delivering (and renewing if necessary) real strategic value for both partners, are built on stronger foundations and show higher resilience when facing external turbulences. 6
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