Partnership building is a cornerstone of successful Market Systems Development (MSD) programming. Sustainable and scalable change cannot be achieved by a single organisation working in isolation. Instead, it requires fostering collaboration and leveraging the resources, expertise and reach of various actors within the market system.
Strategic partnerships are essential for addressing systemic constraints, promoting innovation and ensuring long-term ownership and sustainability.
Determining if a partner is a good fit for your programme
The first meetings with partners are not just about how to message your programme and manage expectations. They are also about getting to know potential partners and figuring out if they are the right ‘fit’ for you. Partner selection for market systems programmes is a bit like dating, with both parties trying to make a good impression (without promising too much), while also trying to determine if the person across the table is worth their time. One way to determine whether a partnership makes sense is utilising the Will/Skill matrix.
This tool presents four quadrants based on the capacities and incentives that a market actor may have to change. For potential partners on the matrix, think about what types of support they need.
For example, a cocoa farmer cooperative may have a high willingness to aggregate, buy from their members at a good price, and offer credit and services; but they may have management or financial constraints (i.e. a lack of skill). Alternatively, a major commodity trading company may be much less interested in investing in a smallholder supply chain and choose instead to work through intermediaries or develop large commercial operations on their own (i.e. a lack of will). See image below borrowed from the Making Markets Work for the Poor Guide.
This simple framework can allow you to determine if a partner is ‘willing’, as in has a desire, to try something new regardless of support; or ‘able’, as in they have the resources, staff capacity, and/or business acumen to see an idea through.
Willingness and capacity matrix provides further detail on this tool and its use in MSD programming.
Principles of effective partnerships building
Effective partnerships in MSD can be characterised by the following core principles.
- Alignment of objectives - partners should share a common vision for change and have aligned objectives for a specific intervention. This ensures that all parties are working towards the same goals and are motivated to contribute to your programme's success.
- Mutual benefit - partnerships should create mutual benefit for both parties. Each should gain something valuable from the collaboration, whether it be access to new markets, increased efficiency, enhanced reputation or the opportunity to contribute to social impact.
- Clear roles and responsibilities - clearly defined roles and responsibilities are essential for effective collaboration. Each partner should understand what is expected of them and how their contributions will be valued.
- Open communication and transparency - open communication and transparency are critical for building trust and fostering strong relationships. Partners should be willing to share information, provide honest feedback and address challenges constructively.
- Shared risk and reward - partners should share in both the risks and rewards of the collaboration. This promotes a sense of ownership and accountability.
PRISMA building partnerships for impact unpacks the process of building and managing successful partnerships so that we can understand the key principles, the core elements and the mechanics of how this is done.