Getting involved in global development
GETTING INVOLVED IN THE GLOBAL DEVELOPMENT MARKET meldunn.com.au
Australia is blessed with an incredible pool of talent and
experience, across a broad range of industries, and it is this
expertise that could provide significant and sustainable
benefits into the communities where a development initiative is
targeted.
The challenge for many firms and individuals wishing to
participate in development activities is in understanding the
intricacies of the process to secure involvement. Activities
through agencies such as the Australian Agency for International
Development (AusAID), the World Bank and the Asian Development
Bank, are usually let through a public, competitive tendering
process. Adding to this challenge is the fact that in almost all
cases, the process is different for each agency.
Myth - that the development industry is different.
Well of course it is, as are all industries - different clients,
different products, different channels to market, different
cultures, different environments, different risks etc.
What makes it the same is the need to ensure client needs are
met, if not exceeded, and that products and services are as
desired/needed, not imposed.
So how do you get involved? Is it luck? It is skill? Is it
people, products or services?
All and more I am sure.
A key step often required is the need to demonstrate experience,
understanding, value, sustainability of strategies etc to those
assessing a tender.
Reality Check - Successful tenders must be compliant to the
requirements of the request, must be price competitive, and need
to find the balance between the technical requirements of the
response and the selling nature of the process.
One of the most important aspects of development initiatives is
their ability to produce sustainable outcomes into the
communities within which the activities take place.
Consequently, learning from past activities assists to shape the
style of future initiatives. For firms or individuals seeking
participation, understanding how such learning could modify
development approaches is a critical step in determining the
type and level of involvement to target.
Fact - learning from past activities continues to shape future
interventions.
The Development Market Today
The following points are some key observations about the
directions [approaches] being taken in the provision of
development assistance. These directions have the potential to
impact on any strategy organisations and individuals might adopt
to enter, maintain, or increase their involvement:
*Funds are being diverted from government aid agencies to other
government departments for sector-specific programs *There is a
continuing trend to devolve more decision making to the offshore
post of the donor country, away from the 'central' headquarters
*An increase in donor co-ordination and collaboration where, for
example, the USA [through USAID] and Australia [through AusAID]
might align program approaches to avoid duplication and other
associated impediments, into a sector-wide approach *A trend
seeing more assistance being aligned to foreign policy where,
for example, security and regional stability could influence aid
disbursement *Bilateral donors are opening their markets,
allowing for individuals and organisations to compete for once
closed opportunities *There is an increasing trend for a move to
larger activities, such as sector-wide approaches, as opposed to
specific project interventions *Scale and global reach is likely
to be an important criteria in winning and managing major
programs *Relationships and networks in country with donor
representatives, recipient governments, local organisations and
development professionals are becoming increasingly important.
Opportunity/Approach/Success Factors
Opportunities for involvement exist across a whole spectrum of
activities, from short-term review/assessment activities in
Australia, to short-term offshore assignments for individuals or
teams, to long-term offshore assignments for individuals or
teams, to overall project management which might include
technical inputs as well as sub-contracting of activities.
Organisations such as The Development Executive Group
(http://www.developmentex.com) are a valuable resource for
individuals and firms to identify opportunities, individuals and
potential partners. This Group provides a range of free
information and support services to individuals and companies,
including project information updates, a weekly development
newsletter and employment opportunities in the development
sector.
An immediate key success factor is the consideration of which
level of involvement for a particular opportunity is likely to
deliver the best result with the minimum of risk - for the
organisation, the client, the stakeholders and the recipients of
support.
Many of the larger activities, such as programs, facilities and
sector-wide approaches, often have sub-components that will be
let out - meaning the overall project managing firm could be
ineligible to perform the services within a sub-component. The
key principles to securing sub-component involvement is often
identical to that required to secure the overall project, as
there will be a call for tender using the same or very similar
process to that used by the funding agency.
Consequently, all levels of involvement in the development arena
are likely at some point to require interested
organisations/individuals to participate in a competitive
tendering round. This is often the case regardless of the size
of the resultant budget.
Reality Check - Tendering efficiency and effectiveness remains
critical.
Tendering skills alone, while critical, are not the sole success
factor - in fact tendering well in the absence of other key
activities/initiatives may prove insufficient. Key
considerations for success, in addition to compiling a winning
tender include:
*Having the winning product - the team, the approach, the
methodology, and the response to the requirements of a tender
*Ensuring advance positioning - research, preparation, resources
*Maintaining adequate promotion - often the key here is
relationships, and certainly past achievements *Being in the
right place - knowing the clients and stakeholders and having an
international presence *Offering the right price - must be
competitive and offering value for money.
The tender response is often the most challenging aspect (apart
from implementation of course), addressed by ensuring
appropriate preparation and analysis is conducted in advance.
The tendering timeframe usually falls within a 4 - 8 week period
and generally responses would be required to address key
criteria including the team, approach and methodology,
management, and price.
Reality Check - Preparation must commence prior to the public
call for tender if a realistic chance of success is to be
expected.
These thoughts are by no means exhaustive, though they do cover
some core principles relevant to successful business development
and tendering approaches.
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