75238 NOVEMBER 2012 ABOUT THE AUTHOR M�RIO GOMES How to Revamp a Business Edge Program: is an Operations Officer in IFC’s Sustainable Business Advisory The Case of Ghana (SBA) Business Line and is based in Maputo, Mozambique. He has worked in private sector develop- IFC aims to strengthen the overall business environment by providing local ment (including SMEs) for 16 years. markets with management training programs aimed at small businesses, such as APPROVING MANAGERS Business Edge. We sign cooperation agreements with local business development Sara Ann Clancy, Regional Business service providers to deliver this interactive learning program. The hoped-for result Line Leader in Africa Johane Rajaobelina, Senior Opera- is that the beneficiaries of training will run more efficient businesses and the tions Officer, Management Solutions (SMS) overall economy will improve. This Smartlesson share the lessons we learned Special thanks goes to former IFC while revamping our Business Edge program in Ghana. We achieved the overhaul staff members GIthuku Mwangi and Uzo Kumi, who launched the initial by clearing up training providers’ misinterpretations about the program and Ghana Business Edge program. Also, credit is due to the two official Busi- empowering them to deliver it, defining a clear strategy for the program, shedding ness Edge training partners for their commitment and entrepreneurship: all but the top performing local providers, giving providers chances to network Cicada Consulting Ltd and Rainbow Consult, managed respectively by Gil- with potential clients, lining up some business for the providers, and exerting bert M. Atta-Boakye/Daniel Andoh strong quality control over the program. and Margaret Jackson. Final thanks go to Theodora Ablah Mifitefu for administrative and logistics support and to Theodora Acqua, from AMS- Background CO, which provides additional sup- port whenever necessary. Business Edge also targets the businesses’ Supporting the development of competitive small and medium enterprises (SMEs) is a suppliers, distributors, and clients. The strategic pillar of Private Enterprise program, which IFC started in Vietnam in Partnerships for Africa (IFC-PEP Africa), 2001, has spread to many other countries. which coordinates the work of IFC Advisory Services in Sub-Saharan Africa. In partnership IFC implements the training through with the private sector, IFC-PEP Africa uses selected providers who undergo a five-day training tools, such as Business Edge and the adult learning methodology taught by our SME Toolkit, to help SMEs grow and prosper. certified master trainers. Successful training providers are accredited by IFC Business Edge is IFC’s comprehensive and become official Business Edge training training program designed to improve partners in their country. IFC provides its management skills for employees of SMEs partners with support, including 55 and middle management of large firms in training manuals, and monitors the quality IDA countries and emerging markets. of the training. Figure 1: We boosted the number of people trained SMARTLESSONS — NOVEMBER 2012 1 2. Market Trends and Demand Figure 2: Most training occurred in the Agribusiness Sector Our Business Edge providers provided training in several economic sectors in Ghana. The main sectors so far were agribusiness (13%); non-governmental organizations (12%); banking and finance (11%); energy (8%), and education (8%) (see Figure 2). 49% of the workshops delivered covered personal productivity skills; 24% marketing management, 18% general and operations management; 12% finance and accounting, and the rest human resources management. 3. Increase Revenue for Partners From June 2009 until February 2011, when workshops cost $1,545, revenues from Business Edge training totaled $20,060. From February 2011 through November 2012, the training fee was raised by 30 In Ghana, we launched Business Edge during a training of percent to $2,003, revenues jumped by 500 percent. trainers in Accra in June 2009. This session educated 20 Total revenues to date are $142,261, with Rainbow trainers and six assessors representing eight consulting Consulting Ltd (59%); Cicada Consulting Ltd (30%); EDC firms. Consulting (5%) and the rest of the partners (6%) (see Figure 3). From February 2011 through November 2012, when our revamp of the Ghana Business Edge program started to provide more support to increase support to Lessons Learned local training partners, we achieved the following Lesson 1: Clear up your training partners’ results: misinterpretations about the Business Edge 1. Key Indicators process, but also equip them with tools to do their job. We saw increases of more than 400 percent in numbers of workshops offered, training seats filled, unique trainees and women participants while, SMEs trained increased by This is a must that should be done as soon as possible. 300%. We also achieved a 300 percent increase in the During our first mission to Ghana in February 2011, to number of certified trainers (one of them is a half way to launch the revamp of the country’s Business Edge become master trainer), the number of cooperation program, we became aware of the number of agreements signed with clients increased from 1 to 7. misperceptions that Business Edge partners and to some Notably, we whittled down the number of training extend clients had regarding the program. So, we partners from eight, to four, of which only three are organized a meeting with all eight Business Edge active. This means that three partners with a total of five training partners, including the actual trainers. During trainers delivered more in the last 20 months than did the meeting, we corrected the following eight partners with a total of 20 trainers in the first 18 misinterpretations: months of the program. Figure 3: BE partners Fees and Revenues 2 SMARTLESSONS — NOVEMBER 2012 Business Edge Training in Financial Management and Accounting to Pro Credit SME clients provided by Cicada Business Edge Training in Personal Productivity Skills provided by Consulting Ltd . May 2012. Cicada Consulting Ltd to Staff of Atlas Copco. June 2012. 1. Administrative Process • Marketing tools—We distributed flyers, pens, folders, booklets, and banners to all partners. We • Training partners didn’t realize that they were developed and launched in local newspapers a supposed to register their courses in the Business Edge flyer that provided details about Business Edge database, so that IFC could control what they were courses and contact information for our local doing on the ground. Some Ghana partners had training partners. We also wrote press releases delivered training to SMEs but not entered the about training agreements with large clients, to information in the database. promote the program in local media as well within IFC. • Training partners didn’t know how to access the Business Edge training manuals. They were supposed to create a • A Business Edge website sub-page for Ghana—On purchase order in the database and pay IFC $50 for each the Ghana webpage, we could input useful information order. Then they would receive the materials electronically. for clients, such as logos and contact information; local success stories; and profiles and photographs of local • Some trainers thought they would be certified once trainers. they had attended the training of trainers program. However, they also needed to conduct two trainings • Concept notes/terms of reference and budgets— of eight hours each and then pass two assessments We shared these tools with our training partners so with a minimum grade of 75 percent each: a they better understood the technical and financial satisfaction rating by trainees and a grading by a details of the program, especially how to budget Business Edge assessor. classes. • Some trainers believed that after becoming certified, • Guidance on how to price the training— Business they could conduct training in all six Business Edge Edge works in a commercial basis, meaning that BE subjects. However, the rule is that they can only train in partners are free to charge in the market what two subjects, or in exceptional cases, three subjects. they want. However, we provided appropriated guidance on pricing structure for both type of • Trainers didn’t know how much they could courses: corporate value chain courses, which a customize training content (the rule is no more than large firm offers to its suppliers or distributors; 25 percent), or how many people could attend a and open course training, which is open to the class (the maximum is 25). public. 2. Pricing Structure • Bus ines s Edge dat abas e t r aining— I n some c as es , we t aught t r aining par t ner s how to • Business Edge Partners felt that with an IFC solution ent er inf or m at ion on t heir courses, in their hands they would go to the market and charge par t ic ipant evaluat ions , and ot her detai l s i n higher fees easily. t he dat abas e. 3. Business Development and Marketing Training clients also needed clarification about Business Edge. Many clients thought that • Training partners thought that it was expected for IFC to bring in business for them. because IFC was involved and is part of the World Bank Group, the training was free or After clarifying details of the Business Edge program, IFC inexpensive. We met with several clients to provided the following tools to our local training partners: clear up these issues. SMARTLESSONS — NOVEMBER 2012 3 Business Edge Launching with the Association of Ghana Industry Business Edge Network meeting to link up BE Partners and (AGI). November 2011. Clients - November 2011. Lesson 2: Define a clear strategy for the local Business Another condition of the contract renewal was that the Edge program for two to three years. partners needed to record all their past activities in the Business Edge database, and promise to record all future One of the first steps in our overhaul of the Ghana activities within 30 days. Paying fees alone won’t program was to present to all local training partners guarantee that IFC will renew a training license; rules a country report, from the Business Edge database, and procedures also must be followed. with the current number of workshops conducted and seats sold. We compared these numbers with These decisions were tough but allowed IFC to keep only the partners’ own targets in their applications to top and engaged partners: Cicada Consulting Ltd, EDC become official partners. This strategy clearly Consulting Ltd, Rainbow Consult, and 2MB Consulting Services. It’s better to have fewer active partners than a instilled in the partners a sense of the need to work large number of them, which sometimes can be difficult hard and deliver. to manage. We set a target of selling 2,000 seats in the following 24 months, to give the partners a picture of where to go as Lesson 4: Sign partnership agreements to link up well as how much effort was required. training partners and clients. We also communicated to partners that IFC would exit This was a very important factor in the success of the Business Edge in the medium term, so they and their Business Edge revamp in Ghana. By signing cooperation trainers needed to feel the urgency of being on their agreements with several institutions, IFC created the own and fight for their market. opportunity for dialogue between providers and the clients. We signed agreements with six clients: Pro Although Business Edge is an IFC product backed by the Credit, West Africa Civil Society, Federation of IFC brand, that’s not enough to sell it in a local market. Associations of Ghanaian Exporters, Association of To enter a local market requires a strong commitment Ghana Industry, Ghana Chamber of Commerce and from training partners, a good network of clients, and in Industry, and Fidelity Capital Partners. some cases, low training fees in the beginning of the program. We organized a special event with the Association of Ghana Industry attended by local news media. We also Lesson 3: Only keep top performing or engaged hosted a meeting in our offices between training partners, training partners. the six clients who had signed agreements, and potential clients including a microfinance Institution, which was an When we were launching the revamp of the Ghana excellent opportunity for networking. The Microfinance program, the local training partners were expecting that Institutions (Advans Bank) had an ongoing project IFC would be more flexible in regarding the payment of targeting 200 SMEs and was eager to hear from training the license fees. They thought that if they didn’t conduct partners about Business Edge value added and services. a lot of training, they didn’t have to pay the fees. To correct this misperception, we needed to send a strong Lesson 5: Increase your credibility by bringing some message. We decided that in order to have their contracts business to the table. renewed for 2011-2013, the partners needed to pay the fees outstanding for more than a year, and also pay the IFC drew up training proposals for clients including entire $3,000 annual fee up front, rather than in Pro Credit and West Africa Civil Society, which installments. Previously, partners paid half up front and demonstrated to local training partners how to bring the balance six months later. in business. The partners started to see money coming 4 SMARTLESSONS — NOVEMBER 2012 Business Edge Training in several topics provided by Cicada Consulting Ltd to SME Distributors of Solar Lights Under the Lighting Africa Program which is a joint IFC and World Bank program. July 2012. in, which gave them confidence. Also, our Conclusion move helped to establish IFC’s authority, which made the partners more inclined to Business Edge is an IFC program targeting follow Business Edge rules and procedures. employees of SMEs and middle management of large firms and other In the last few months of the program private institutions. Our official training overhaul, the partners are operating partners—the most reliable partners in the independently of IFC, which could local market based on their experience, provide some indications of the skills, and tools—are our means of reaching sustainability of the program in longer the clients. However, we must provide the term. In the pipeline is the potential partners with a clear vision for the program project with Advans to be financed by and proper guidance and discipline in the Agence Française de Développement, first two years of any local Business Edge the French international development program. agency. IFC needs to maintain control over the Lesson 6: Trust your official training program to ensure it is run properly, partners but maintain strict control over otherwise we face a credibility risk. the program. Keeping permanent pressure on the training partners helps to maintain high standards of quality. Our partners need to The Business Edge Program in Ghana has follow the rules and procedures laid out in been managed long distance by IFC’s the agreements they sign and pay their Mozambique office since July 2011. We fees on time. They also need to make have made on-site visits twice a year but money, which means that IFC could create the situation has required us to exert tight business opportunities for them at least in control over some activities. Our main tool the beginning of the program which could is the Business Edge database, where our pave the way for a more sustainable market training partners record information about for Business Service providers..Properly their courses for our approval. One of our managed, this can be a win-win situation rules is that IFC’s country manager only for all. DISCLAIMER signs training certificates once the partners SmartLessons is an awards pro- have entered all necessary information. gram to share lessons learned in This forces the partners to provide the development-oriented advisory services and investment opera- information. tions. The findings, interpreta- tions, and conclusions expressed in this paper are those of the author(s) and do not necessarily reflect the views of IFC or its part- ner organizations, the Executive Directors of The World Bank or the governments they represent. IFC does not assume any respon- sibility for the completeness or accuracy of the information con- tained in this document. Please see the terms and conditions at http://smartlessons.ifc.org or contact the program at smartles- sons@ifc.org. SMARTLESSONS — NOVEMBER 2012 5