Sustaining Investment

THE WORLD BANK

World Bank Group

Multilateral Investment Guarantee Agency

Sustaining Investment

Preface

Sustaining Investment through Investor Aftercare is a guide for staff and consultants of the

Investment Climate Advisory Services (IC AS) of the World Bank Group. It builds on the best practices and lessons learned in both developing and developed countries and provides a step-by-step guide to the preparation, design, implementation and evaluation of an investor aftercare program.

This investor aftercare advisory product has been developed to:

1. Help IC AS staff advise clients on developing business retention, expansion and embedding initiatives, particularly in light of the current global economic downturn. 2. Help our clients promote incremental investment through professional account

management, investor problem solving and advocacy of systemic policy reform.

3. Target the special challenges of investment promotion in frontier and conflict-affected countries.

This is not a universal blueprint for investor aftercare, but rather a guide for helping clients of diverse experience and priorities strengthen their capacity for it. The practitioner is

responsible for keeping the contents of this manual confidential and using them in an appropriate manner.

Strategic Collaboration

I. INTRODUCTION TO AFTERCARE

Short

List Decision Start-Up

Expand-Delocate

Promotion/Targeting

Facilitation

Start-up Servicing

‘Company-level services designed to facilitate the start-up and

continuing development of a company…’

“…with a view towards maximizing its contribution to the local

Operational Servicing

Policy Advocacy

Aftercare

Putting Aftercare into Practice

Client aftercare activities will be aimed at:

Understanding investors, their needs and perceptions

Building long-term, collaborative relationships with investors and

addressing the needs of these investors

Helping remove obstacles and solve problems faced by investors in

their start-up, operations or expansion phases

Helping investors meet and cooperate with officials, local suppliers,

service providers, and other investors

Providing information to investors about doing business locally

Aftercare: Why to do it?

The Aftercare Provider‟s C.R.E.E.D.

C

onsolidate: Improve low implementation rates

R

etain: Keep existing investors from leaving

E

mbed: Extract benefits for development

E

xpand: Get reinvestments

D

iversify: Support opportunities for other, higher value

business activities.

Aftercare: How to do it?

…by building investor confidence, trust and loyalty.

1 2 3 4 5 20 40 60 80 100

Loy

alty

/

Re

te

ntion

Dissatisfied Neither Satisfied Satisfied nor Dissatisfied Very Satisfied Zone of Defection Zone of Indifference Zone of Affection

Sales & Distribution

1962 – Sales representation via Austrian branch 1991 – Honeywell Service and Engineering, s.r.o. 1995 – Honeywell spol. s.r.o.

Research & Development

1993 – Prague Technology Center (today´s Prague Laboratory) 2003 – Global Design Center in Brno

Manufacturing Units

2001 – Ademco Brno

2002 – Mora Aerospace a.s. 2002 – Honeywell Controls s.r.o.

2003 – Security Products (Olympo Controls)

Shared Services

– Global Credit and Treasury Services

Honeywell in the Czech Republic

Aftercare: Why do it?

• Investor

Services

• Investor

resources

• Internal

organization

• Information

Management

Tools

The Works

The Basics

Summary of Keys to Success in Investor Aftercare

1. Senior government commitment:

Access to influential

officials and buy-in for aftercare implementation

2. Focus:

On priority sectors and companies. For biggest

impact without spreading the IPI staff too thin.

3. Information:

To identify customers and their needs and to

understand companies and their industries like insiders

4. Relationships:

With customers, mid-level officials, policy

makers, and providers of services to investors

5. Problem-solving mechanisms:

So change is based on

6. Build implementation capacity 5. Develop an implementation work plan 4. Develop tools and procedures 3. Develop a strategic action plan

The Sustaining Investment guide will take you through the process of delivering a successful investor aftercare project. There are eight steps, some of which may be executed in parallel, in four phases.

7. Work plan implementation 8. Evaluate program performance 2. Identify investor base and its

needs

II. INTRODUCTION TO THE PROJECT MANUAL

Steps 1-2: Preparation Steps 3-5: Design

Step 8: Evaluation

1. Scoping