september 2012 towards high impact regional cluster partnerships
TRANSCRIPT
September 2012
Towards High Impact Regional Cluster Partnerships
Mandate CIs Evaluation Purpose and Questions Policy Context Key concepts: clusters and cluster
initiatives (CIs) Key Findings, Conclusions,
Recommendations
1. Promote and facilitate economic growth and development, job creation, economic transformation and economic intelligence
2. Support different sectors of the economy by actively intervening in the economy
3. Cluster approach is one of the tools adopted for-a coordinating mechanism for sector support , development ,growth, innovation and competitiveness.
1. Grow and diversify the local economy
2. Stimulate and support entrepreneurship and innovation
3. Strongly link the local economy to the national,regional,and global economy
4. Create a conducive environment for business development & investment leading to increased opportunities for sustainable job creation and entrepreneurial spirit and thriving businesses
5. Collaborate with all relevant stakeholders
1. Provide institutional support for effective implementation of development programmes and improve service delivery( Clusters, SPV,etc)
2. Develop sector strategies & Sector support interventions for the prioritised sectors of the economy
3. Facilitate the provision of economic infrastructure-sector specific and the SEZ.
4. Trade and export orientation
5. Innovation and technology
1. New Growth Path: 5 million new jobs by 2020 (including 350,000 manufacturing jobs and 300,000 jobs in the green economy)
2. SA 2030 Development Plan: 11 million jobs between 2012-2030.
3. National Industrial Policy Framework: Reduce SA’s unemployment from above 20% to 15% over the next 10 years (2011-2021) & incrementally create about 430,00 direct jobs, and another 860,000 indirect jobs: 2011-2014
4. 2012 KZN Industrial Development Strategy: 1 million jobs over 5 years (2012-2017) by focusing on relevant sectors
R102 billion over the next five years (2012-2017) earmarked by IDC for IPAP and NGP sectors, as follows: 10 billion Job Creation Fund at Prime less 3% over five years; 25 billion towards 'green economy ; 500 million energy efficiency fund; R7,7 billion agricultural and forestry value chains; and R6,1 billion to support companies in distress as a consequence of the global financial
crisis.
The 12I Tax Incentive has leveraged large manufacturing investments worth R21,8 billion.
The research and development (R&D) tax incentive has allocated more than R1 billion in tax deductions to encourage private sector R&D activities worth R9,6 billion between 2006 and 2011.
Manufacturing Competitiveness Enhancement Programme launched May 2012 allocated R5.8 billion (went live on 4 June 2012) (note: Automotive, Clothing, Textiles, Leather and Footwear sectors that qualify for support under AIS, APDP, MIDP, CTCP and CTCIP have been disqualified from this incentive programme. Automotive manufacturers which earn less than 25% of its turnover from the motor vehicle supply chain may, however, apply for the MCEP)
1. Understand the value and selected impacts of CIs on the cluster members, clusters, local/regional economy
2. Inform recommendations to enhance the effectiveness & efficiency of Cis
3. Inform the prioritisation & nature of government support to Cis.
1. Are there conflicting expectations of the CIs, and if so, how can these expectations be better aligned?
2. What perceptions exist regarding the different roles that different stakeholders should be playing with respect to CIs including governance and management roles?
3. What kinds of benefits do the CIs result in and do they deliver value for money/ return on investment?
4. How representative are the CIs (ITO participation, membership, and Board level) and does anything need to be done to improve representivity?
5. What needs to be done to ensure CIs are industry-driven and industry-led? 6. What impacts are the 9 CIs having on the growth, success, sustainability and
development of their membership, their industries and ultimately the local and regional economy?
7. To what extent have the intended CI objectives been realised?8. How effective and efficient are the CI programmes?9. Is clustering the right approach to follow to meaningfully impact on job creation
and which CI models are most successful?10. Which sectors/ clusters should be prioritised for future support (from the 9 CIs
evaluated)?11. Why do CIs need government funding, and if so for how long?
Insight & Strategy
Key Stakeholder Buy-in &
Participation
Ability to Execute and Achieve
ImpactSource: © Impact Economix (2012)
(www.impacteconomix.com)
Three Cluster Performance Areas
Cluster
Performance
Area
Rationale CI Key Performance
Areas
1. Insight & Strategy
An in depth understanding of key value chain
success factors and competitiveness challenges is
needed to inform a CIs strategy to enhance cluster
competitiveness and growth
Understanding of the
cluster’s competitive
position and core
upgrading challenge
incl. quality and depth
of value chain research
A strategic, shared, and focused long term vision of
cluster success, objectives, strategies, and
expectations between key stakeholders is vital for
effective and aligned action.
Strategic, Sound and
Shared Cluster Vision,
Objectives, Strategies,
Expectations
Cluster
Performance
Area
Rationale CI Key Performance
Areas
1. Key Stakeholder Buy-in & Participation
Active participation from CI members is a vital
pre-condition for CI success and this also
contributes to improved communication and
joint action between industry.
Industry Social
Capital: Awareness,
Quality of
Relationships incl.
Membership
Active participation and support, including
leveraging funding and expertise, from key
value chain organisations, especially those
relevant to labour force skills development and
innovation is vital if sustainable
competitiveness is to be improved.
Participation &
Support from key
partners
Cluster Performance
Area
Rationale CI Key Performance Areas
3. Ability to Execute and Achieve Impact
Good CI governance policies and processes, an effective Board, and strategic Board leadership is vital to enhance the CIs reputation and trust and ability to attract and manage funding in a transparent and accountable manner.
Cluster Governance Relationships & Processes
Highly skilled CI management and effective management processes are essential to facilitate complex partnerships, and implementation of CI strategies and programmes.
Cluster Management Quality & Processes
Clear, well structured action plans are needed to ensure CI strategies are logically broken down into activities with appropriate resources so as to allow for ongoing monitoring and accountability.
Pragmatic Action Plans
Outputs and outcomes which ultimately improve both firm-level and cluster-wide competitiveness will be achieved if excellence can be achieved in the above key performance areas.
Implementation Impacts
Monitoring and reporting of of both CI and cluster performance against plan is essential to check progress and maintain accountability. Evaluation processes for Board performance, management performance, and CI performance are needed to learn lessons and make adjustments to enhance performance.
Systems & Processes for Monitoring, Evaluating, Learning, and Revision
Area of
Excellence
Area of Analysis Evaluation Questions
1.1
Understanding
of the cluster’s
competitive
position and
core upgrading
challenge incl.
quality of
research
Depth of understanding of cluster’s global and national positioning by management, chairperson
Quality /depth of value chain research which has informed CIs strategic plan
a) Is there a clear approach to cluster/ value chain re-positioning/ upgrading/ growth which is well informed by quality value chain research/ evidence and widely supported by industry?
b) Are detailed value chain studies available which also examine the strength of the cluster in specific niches and identify the critical success factors for the key customers in the value chain?
c) Are the primary competitiveness challenges and opportunities as well as the current constraints/barriers to effectively dealing with these issues clearly defined in the CI business plan?
Area of
Excellence
Area of Analysis Evaluation Questions
1.2 Strategic,
Sound and
Shared Cluster
Vision,
Objectives,
Strategies,
Expectations
Shared development and understanding of cluster strategy and challenges by management, chairperson, and membership
Clear and logical strategy ITO cluster re-positioning/ upgrading/ growth
Responsiveness: objectives and activities respond to present and future needs of key stakeholders and society in general
a) Does a shared cluster vision exist, and to what extent has the industry been involved in its development? To what extent is awareness of this shared by both members and non-members/ stakeholders?
b) Have long term cluster growth targets been defined and agreed by key stakeholders?
c) Do key stakeholders agree on the CI’s objectives?
d) Does the business plan clearly articulate objectives, targets, activities, responsibilities and resources?
e) Strength of CI strategy & objectives alignment with government priorities?
Area of
Excellence
Area of Analysis Evaluation Questions
2.1 Industry
Social
Capital: CI
Awareness
and Quality
of
Relationships
incl.
Membership
Shared values and objectives amongst key stakeholders
Awareness of CI by non-member firms
Degree and strength of participation in CI activities
Inclusiveness for existing members and recruiting new members
a) Level of awareness of CI and its role / strategy / priorities/ services by non-members
b) Strength of membership participation in CI activities by both members and non-member firms
c) Number of paid up members in relation to potential total firms
d) Are cluster members brought together effectively to demonstrate the benefits of joint action?
e) Are targets set for membership and is there a clear marketing plan to share and disseminate the benefits of cluster membership to non-members
Area of
Excellence
Area of Analysis Evaluation Questions
2.2
Participation &
Support from
key partners
Efficiency: Nature of support from national, provincial and municipal government including level of officials, funding processes and leveraging etc.
Strength / quality of relationships and coherence with CI for skills development
Strength / quality of relationships and coherence with CI for, innovation,
Strength / quality of relationships and coherence with CI for finance,
Strength / quality of relationships and coherence with CI for trade promotion
Role definition and clarification between CI and key support organisations
Effective lobbying processes/ efforts and involvement of key policy makers
Effectiveness in accessing special funds/ programmes to benefit members
a) Amount of funding leveraged and/or accessed from public sector organisations
b) Amount of funding leveraged and/or participation in national sector support initiatives incl. Incentives
c) Amount of funding raised from other private sector organisations
d) Effectiveness of coordinated broader public sector support incl. Improving the business environment
e) Success in influencing national level policy and/or improved cluster support programmes
f) Perceptions of role clarity and definition between CI and key support organisations
Area of
Excellence
Area of Analysis Evaluation Questions
3.1 Cluster
Governance
Relationships
& Processes
Seniority of Board leadership
Representivity & inclusivity of Board representation
Adequacy of Board Policies
Accountability: Financial Management
Transparency and Reporting
Effective board election processes
a) Seniority level and relevant industry knowledge (incl. Knowledge of cluster firms) of public officials on CI Board to add value to CI
b) Level of private sector representatives/ leadership on the Board from leading companies and board portfolios
c) Are the expectations and obligations of different stakeholders defined in the cluster governance agreement/ Constitution/ MOAs?
d) Have key uncertainties/ risks been identified and risk management plan defined as part of the business plan?
e) Are key policies in place to ensure good governance and accountability (see detailed list of policies)?
f) Agreed financial management policies and procedures which comply with Company’s Act and ensure good governance
g) Are board election processes held annually and are they effective?
h) Are board self evaluation processes in place?
Area of
Excellence
Area of Analysis Evaluation Questions
3.2 Cluster
Management
Quality &
Processes
Level of CI leadership to command cluster buy-in and respect
Existence of a performance management indicator system developed via inputs from CI stakeholders
Quality and reach of communication processes incl. Reporting on CI progress
Involvement in, and effectiveness of, industry in programme implementation
a) Level of CI Management leadership, depth of cluster experience and understanding, and skills to facilitate complex partnerships
b) Adequacy of performance indicator system in terms of indicators, information management, and reporting systems
c) Are there clear and frequent communication processes/ plan in place and effective dissemination of information to both members and non-members via web-site, newsletters, press releases etc.
d) Are dedicated Task Teams with clear mandates and Board reporting processes industry driven and functioning effectively?
e) Is an annual report produced which includes CI achievements and how widely is this communicated and disseminated?
Area of
Excellence
Area of Analysis Evaluation Questions
3.3 Relevant
& Pragmatic
Action Plans
Alignment between action plans, CI vision and objectives and industry needs and priorities
Existence of clear and logical structure of action plans to support implementation, monitoring, and accountable progress reporting
Extent to which business plan/ action plans take advantage of key opportunities for growth
a) Are CI roles and programmes aligned with priority needs and priorities of its members ITO Member views on importance and effectiveness of CI services?
b) Are there clear action plans with specified deliverables, resources, responsibilities and deadlines?
c) Are the action plans sufficiently focused on a limited set of achievable priorities in relation to available resources?
d) Existence of gaps regarding key cluster growth opportunities which require more attention in the CI business plan?
Area of
Excellence
Area of Analysis Evaluation Questions
3.4Implement
ation Impacts
Extent to which CI objectives have been met and constraints encountered limiting achievement
Alignment between firm needs, and type and quality of CI services
Impact on firm-level benchmarks
Impact on cluster-wide/ industry outcomes
a) How satisfied are CI members with CI services that are important to members?
b) Degree of success in ensuring firm-level training which meets cluster’s priority needs is delivered to firms
c) Degree of success in facilitating firm-level innovation in terms of products, processes, business models
d) What firm-level benchmarking and competitiveness improvements have been achieved?
e) What impact has the CI had on member and non-member firm performance?
f) What are the industry export and employment trends?
Area of
Excellence
Area of Analysis Evaluation Questions
3.5 Systems
& Processes
for
Monitoring,
Evaluating,
Learning, and
Revision
Extent to which key cluster initiative performance objectives are translated into performance indicators which are regularly reported and used to inform decision-making processes
Existence of CI processes to review performance, including Board performance.
a) Is there an M&E system which contains performance indicators which meet the needs of different stakeholders?
b) Do Board self-evaluations take place once a year?
c) Do CI strategy evaluations / strategic planning processes take place at least every 3 years, and are these results communicated widely to all stakeholders?
d) Are objectives regularly re-considered to make sure these are in line with the latest technological, regulatory, and financial developments?
e) Are Annual Reports produced and circulated widely to both members and non-members?
Geographically bounded concentration of similar, related or complimentary firms that possess potential to expand their global market share and which share infrastructure, labour markets and services and who are facing similar opportunities and threats;
Networks of interconnected firms and supporting institutions that accelerate innovation, business formation and expansion and job creation;
Clusters are groups of industries with high levels of co-location in terms of employment (US Cluster Mapping Project).
CIs can take many forms, ranging from projects, to programmes to dedicated institutions and refer to: Various ways to organise the participants in a cluster in
order to define and work towards the achievement of specific objectives which are generally aimed at contributing towards improved firm and cluster competitiveness. CIs involve collaborations between a diverse number of public and private sector actors, such as firms, government agencies, and academic institutions (Source: Wikipedia: http://en.wikipedia.org/wiki/Cluster_development).
Organised efforts to increase the growth and competitiveness of a cluster within a region, involving cluster firms, government and/or the research community (Sölvell et. al. (2003): Cluster Initiative Greenbook).
Clusters, Cluster Initiatives, and Economic Development
Rising wage costs in China potentially improve SA’s manufacturing prospects (provided we can strengthen competitive skills, logistics and a stable and a supportive political and policy environment): China’s monthly wage for unskilled worker is
currently about $350 and its “monthly wage for unskilled worker will reach at least $1,000 in 10 years.” (Lin, Justin Yifu: 2012: 352).
About R50 million from KZN Province and R45 million from Ethekwini Metro
Some CIs have leveraged additional funds via private sector membership, private sector corporates, donors etc. Only three of the KZN CIs have succeeded in establishing membership models where the private sector contributes significant co-funding, and most of the other CIs are at different stages of phasing in a membership contribution system.
On average each CI has received between R1-R1.5 mil. P.a. in total (KZN crafts cluster has received the largest share of funds at R27.48 million (however, no formal CI organisation or Section 21 has been established to date).
Western Cape Provincial Government has provided R215 million in funding to about 15 CIs over the past 7 years, or an average of R2 million per CI p.a. (excludes additional funding by the City of Cape Town).
NB: Caution needs to be exercised when benchmarking or comparing cluster initiatives as the effectiveness and impacts of CIs are heavily influenced by a wide range of factors including, but not limited to, the following: length of time the CI has been in operation, how supportive or not the government policy and
regulatory framework is for the cluster, and the nature of financial and human resources
available to the CI.
CIs have developed a range of objectives, programmes and projects to meet member needs and promote cluster competitiveness and growth, and these objectives and programmes are summarised here. In most cases, objectives are not quantified and are actually broader goals. There is widespread unevenness in how CIs define and structure their objectives and programmes and this contributes to the difficulty that some stakeholders have in understanding the CIs, as well as evaluating the CIs:
The CIs which have been rated as promising and leading are delivering significant value for money in terms of cost per job (retained jobs as well as new jobs), economic multipliers, small business development, transformation, household income and environmental benefits:
A communication and collaboration platform between business and local, provincial, and national government, and other regional stakeholders,.
Improved linkages and coordination between firms in the value chain
Improved firm and value chain productivity Reduced costs as well reduced environmental impacts Increased domestic and/ or international sales Improved access to finance and funds Accelerated firm and cluster growth Improved firm profits and sustainability Increased and retained employment Improved public sector understanding of clusters and key business
environment constraints to competitiveness and growth and ability to prioritise interventions
Cluster Initiative Theory of Change and Short, Medium and Long Term Impacts
Source: © Impact Economix (2012) (www.impacteconomix.com)
1. Why SA’s Job Targets are a good thing: Gives all stakeholders a clear outcome to focus on and prioritise
2.Why SA’s Job Targets are a bad thing: Weak public sector conceptual understanding of why and how different
types of businesses actually create jobs and what kinds of interventions can meaningfully impact on a business hiring more workers (and what current conditions prevent businesses hiring more workers)
Unrealistic and simplistic expectations re the links between public funded initiatives and private sector response
3. So: CIs cannot create jobs, but they can improve the likelihood that a business might grow (and reduce the chances of business failure) and hire more workers into the future by improving the enabling environment and the competitiveness and responsiveness of firms to market needs. This contribution is valuable in and of itself!
The potential contribution and role of the CIs towards South Africa’s future job-creation challenges and targets and the implementation of IPAP3 and the KZN IDS is potentially significant and warrants further enhancement of, and support to, CIs in KZN.
Strengthening the roles of Cis in the following areas identified as important- BUT CIs requires additional resources to be effective1. CIs need to strengthen their capacity to assist individual firms to
access funds for expansion and improving competitiveness including at least the following areas:▪ national incentives for equipment purchasing▪ industrial development finance from the IDC and others for expansion▪ green economy finance▪ innovation and R&D finance
2. The role of CIs in improving sector-specific skills needs to be unpacked and clarified at a cluster specific level by indicating complementary roles the CIs can play in the overall skills system and in relation to the range of roles being played by existing skills organisations
3. The role of CIs in assisting firms to access African markets, in partnership with DTI and TIKZN, needs to be strengthened
4. The role of CIs in improving the regional innovation system and providing access to innovation support
The monitoring and information management systems of CI performance and impacts are relatively under-developed. It was difficult to find much consolidated or accessible reporting by the CIs on their outputs and short or long term impacts.
KPA 1.1: Understanding of the cluster’s competitive position and core upgrading challenge incl. quality of research
KPA 1.2: Strategic, Sound and Shared Cluster Vision, Objectives, Strategies, Expectations
CI Strategies and Business Plans Need to be Refined to reflect a clear structure and logic between the following levels: Industry constraints and opportunities Critical success factors CI Vision and Mission CI Objectives (should be quantifiable) Programmes
Programme logic and structure should be refined to be logical and support better management and monitoring, and ideally to include: Purpose Motivation: (i) need context; ii) solution concept Objectives Activities Outputs Responsibilities and time-frames Resources required in terms of people and budget (ideally per main output) Key performance indicators and targets
Strategy Benefit Focus (objective to be
defined for each)
Examples of Key Programmes
Cost benefits Joint sourcing and purchasingValue chain developmentLobbyingBusiness environment and infrastructure
Service benefits Supply chain eventsCollaboration on skills programmes, innovation, finance etc.Accreditation/ compliance assistance/ tools/ techniques
Capability benefits World Class ManufacturingSupplier Development
Awareness benefits Marketing and PRCorporate Social Responsibility
Sector growth Trade promotionInvestment PromotionSkills development
Objective #
<<<< Say what it is here>>>> (ideally to
include a quantitative measureable target
Overall
Responsibility
<<This could be a person, committee, the
Board>>
Activity Output Sub-Activities
Person
Responsible for
Sub-Activity Timeframe KPI
What you are going
to do to meet this
objective.
Projected/ desired
result
Break down of the
activities into sub-
steps.
Person responsible Specific date for
evaluation
Exact indicator to
measure the success
of the sub-activity.
Break down of the
activities into sub-
steps.
Person responsible Specific date for
evaluation
Exact indicator to
measure the success
of the sub-activity.
Break down of the
activities into sub-
steps.
Person responsible Specific date for
evaluation
Exact indicator to
measure the success
of the sub-activity.
Cons & Recs (3): KPA 2.1:
As a general guideline, CIs should all aim set membership targets and have a clear plan to achieve these. An ideal target would be for +-50% of firms as paid up members after +-5 years of operations, however each cluster is uniqueand requires its own appropriate target (CIs also need better company databases for the whole cluster, recruitment & communication plans incl. Director’s recruitment target, more political support)
Ongoing efforts are required to engage with relevant trade unions regarding their participation in the CIs as well as their role in CI programmes and generally with respect to improving cluster competitiveness and growth
More opportunity for non-member inclusion e.g. Open industry participation in a strategic (1-3 years) cluster planning event
Participation & Support from key partners incl. Cluster Governance incl. Cluster Governance
KZN Provincial government be engaged with at MEC level to present the findings of this report and to agree on a process to clarify Provincial government’s position regarding funding support for certain CIs in KZN which are prioritised in the KZN IDS.
Both KZN Provincial Government and Ethekwini Metro need to refine Industrial Development Policies to provide a clearer basis for prioritising and supporting regional clusters, Guidelines to inform the development and implementation of cluster strategies, and clarifying an exit approach and process.
Both Ethekwini Metro, KZN Provincial Government and the CIs to develop a coordinated approach to accessing funding from the MCEP
CIs need to consider the possibility of developing a more explicit approach to lobbying (in partnership with KZN Provincial Government and Ethekwini Metro) which is informed by a Stakeholder Mapping analysis
Awareness of the purpose and roles played by the CIs needs to be constantly enhanced and the Ethekwini Metro and the KZN Provincial Government need to provide stronger support to linking CIs with government initiatives/departments
A process needs to be designed to clarify the current and ideal future roles and services to be performed by the CIs and TIKZN with respect to various trade and investment promotion services
3.1 Cluster Initiative Governance Relationships & Processes
Develop a cluster capacity development plan for politicians and officials: A 2-3 day course delivered by UKZN in clusters and value chain upgrading Site visits to key firms in the clusters to allow for practical demonstrations and
an understanding of issues impacting on firms in the cluster. CI Boards of Directors to:
Discuss the desirability of facilitating a broader stakeholder document which includes Metro, Provincial and National government, as well as key para-statals, regarding mutual expectations and obligations with respect to the CI and its key programmes, including but not necessarily limited to critical infrastructure and business environment issues which are vital to industry growth.
Discuss the possible need for a risk management plan which could apply to two levels: at the level of the industry/ cluster itself and at the level of the CI organisation and that risk management be a standard agenda item for Board/ EXCO meetings.
Objective:RiskMitigating action(s)
CI Boards of Directors to: Review whether the procurement policy and financial approval framework
and other financial management policies and processes in place are adequate in terms of appropriate financial controls as well as in ensuring competitive tender processes for all goods and services procured above a certain minimum threshold (for example R10,000). (refer Annexure H)
Formally review whether the MOU and MOI adequately define the Boards obligations in terms of ethics, declarations of interests, and performance management and whether there would be value in these issues being clarified in a separate Board Charter document (see Annexure I)
Ensure that Directors sign a declaration that they have no personal interest in the matters being discussed and that they will not participate in any decisions that should arise where they have an interest. The procedures around declaration should be included in a relevant document e.g. Board Charter – See Annexure I).
KPA 3.2 Cluster Management Quality & Processes
Refine CI Business Plans to include key performance indicators
CIs develop membership communication and recruitment plans
CIs develop knowledge management plans and to consider providing on-line access to both members and non-members to priority information which meets cluster wide needs, for example: A more detailed searchable database and profile of the products and
services offered by both members and non-members Key contacts in relevant support organisations and departments for
example for regulatory approval processes at Metro, Provincial and National level incl. EIAs, Energy Efficiency, Water Efficiency, Waste etc.
Cluster/ industry statistics Other possible key cluster information needs
Relevant & Pragmatic Action Plans
CI Boards of Directors discuss whether potential exists to enhance the CI’s effectiveness in addressing the following issues/ services / programmes based on the relatively high level of importance and/or low level of satisfaction that member firms expressed with the following: Lobbying to improve the business environment (see Key Performance Area 2.2
above); Trade promotion (see Key Performance Area 2.2 above); Investment promotion (see Key Performance Area 2.2 above); Waste minimisation and water efficiency; Innovation R&D.
We believe that further investigation and discussion regarding innovation/ R&D needs is required
CI programmes and actions plans need to be refined & the resource requirements and implications of possible expanded CI activities will need to be assessed and discussed with both public and private sector funders.
Implementation Impacts
CIs impact on firm performance ranges from good to poor in direct correlation with the CIs level of maturity.
A future CI monitoring and evaluation system should include surveys of firms in the cluster to determine the impacts that participating in the CIs are having on the firms.
Skills and training: many challenges and complex policy and institutional environment. Need clearer diagnosis of problems and what issues need political intervention and what role CIs can play to address deficiencies
Benchmarking has important productivity impacts esp. on processes but aggregated data needs to be better shared, reported, and linked to broader cluster programmes
All CIs develop and adopt a clear approach and programme to support product innovation R&D. including new partnerships (e.g. with the Technology Innovation Agency) and sector-specific R&D and testing institutions. Longer term innovation trends need to receive more focus including the emergence of rapid manufacturing and 3d manufacturing technologies to support improved proto-typing and product development
Systems & Processes for Monitoring, Evaluating, Learning, and Revision
The CI Boards of Directors to : monitor achievement against key performance
indicators as included in the refined Business Plans Conduct an annual performance evaluation of the CI
service provider following a clearly defined process Conduct an annual board self-evaluation process
using a refined version of the board self-assessment check-list contained in Annexure J.
Consider being pro-active by involving non cluster members in the CI annual or 3 year strategic planning process as part of the membership recruitment plan.
As part of the Business Plan refinement process, appropriate key performance indicators need to be identified and integrated into programme design. These KPIs will be specific to the CI and need to be decided on by the CI. Example KPIs include: Cluster employment growth target Export growth in overall value of cluster exports Cluster membership growth target: number of firms and revenue total Value of media coverage incl. Number of newspaper and magazine articles and local
and international TV coverage of the cluster (there are quick and simple methodologies to calculate media value)
Training output target Innovation R&D target Cluster workshop target Average cluster member benchmark improvement targets for priority KPIs (if
relevant) Small business assisted target Black owned businesses assisted target Other output targets such as: industry owned 2015 / 2020 strategic plan
An M&E Plan and System needs to be designed to better support the monitoring and evaluation of CIs. This M&E plan needs to include a job verification system which is able to monitor job creation at the overall cluster/ economy (i.e job trends indirectly related to the Cis activities) level as well at the CI and member firm level (i.e. jobs directly related to the CIs activities). It is noted that the KZN Province has initiated a Province-wide job verification system process and the issue of CI job verification needs to be addressed as part of this overall process.
Each CI Board of Directors to review the report’s recommendations and formally adopt a program of phased responses/ actions in relation to the recommendations.