These positive sentiments were echoed at the World Conference of
Trade Promotion Organizations, which took place in The Hague in
October 2008. Against a backdrop of the global economic crisis,
rocketing oil prices, increasing food scarcity and accelerating
climate change, the conference strongly reinforced the critical
role of TPOs in contributing to national economic growth.
The Conference - an important informal network for sharing of
TPO best practice - highlighted the window of opportunity for TPOs
to take a leadership role in the vacuum left by the lack of
consumer and investor trust.
However, making a difference to export growth can be a
challenging task for TPOs in some developing countries. TPOs are
increasingly required to quantify their outcomes and to be held
accountable for their results. If they are to achieve expansion of
trade and reach new clients - and satisfy their governments (or
donors) that they are doing their job - they need to be visible and
well connected to the private sector.
It is normal for TPOs to be tuned into specific areas of
competitiveness and opportunity in their home economies, and to
focus their resources accordingly. However, the most effective TPOs
also identify opportunities - for example, in sustainable trade or
corporate social responsibility - and obstacles to entering new or
emerging markets and work out the best way to facilitate access to
those opportunities for their exporters (what Grant Aldonas, in his
article on p7, describes as creating an 'enabling
environment').
Bringing value to exporters
The higher the hurdles, the greater the value TPOs can deliver. By
using the tools of trade promotion, such as national pavilions at
specialized trade fairs and trade missions, TPOs can shepherd their
companies into the most appropriate sectors. This also serves to
highlight areas of national competitiveness, and enables exporters
to gain leverage off this awareness through their own promotional
efforts. Take, for example, China's capability in low-cost
manufacturing, or the reputation for information technology in the
United States.
Accurately assessing the market-readiness of exporters is also
vital if resources are to be used effectively. For example, some
TPOs provide self-paced assessments online, which are useful
because they take participants through key issues that might not
have even occurred to them.
The Internet has revolutionized access to information but only
skilled and experienced staff can provide real understanding of
market structures, the respective strengths of channel operators,
and reputation and capacity to perform based on assiduous
investigation on the spot.
Constantly innovating to develop new products and services that
meet the needs and demands of clients is critical to the ongoing
success of TPOs. As can be seen from the TPOs receiving 2008 World
Trade Promotion Organization Awards in The Hague [see p6], the best
performing TPOs are constantly responding to client demand, are
success oriented and have a strong affinity with their private
sectors.
Success factors for TPOs
Recognition and support (including adequate funding) from
sponsoring governments is critical. There must be a sophisticated
understanding of the TPO's role among the country's leadership, and
active involvement to produce system-wide engagement and support.
National economic policy should also direct resources into industry
sectors that have growth potential, not into propping up industries
that are inherently disadvantaged.
A further critical aspect is the positive engagement between the
business community, industry and exporter associations and
groupings. Dialogue should be continuing, future-oriented and
collaborative in tone and action. Medium-term rotations of senior
specialists across the private-public border can infuse deep
industry knowledge and insider access.
Key performance indicators should be adopted to encourage
greater effectiveness, and should percolate down into individual
performance agreements so there is congruency and alignment of
corporate strategies and individual actions. Targets should be
quantified and stretching, but must be believable and not seen as
empty posturing or wishful thinking.
Software-based Customer Relationship Management (CRM) systems
record activities undertaken with customers and the export results
achieved. This is a vital means of measuring efficiency,
return-on-investment and client satisfaction.
Planning structures need to concentrate not only on short-term
operational planning but also on the medium-term horizon, and
involve inputs from all levels of the organization. The 'plan' must
live and not be a pro forma, box-ticking exercise. Strenuous
performance evaluation against the plan must be undertaken so that
lessons are learned. Strategy needs to be implemented aggressively
and in rapid response to changes in markets and business
practices.
The best TPOs have mastered online communications and their
websites meet user needs. Technology keeps TPOs connected to their
clients, their markets and their paymasters. It is important for
TPOs to monitor usage patterns and seek feedback, as well as to
constantly refresh sites to build confidence that the TPO is
keeping up with the constantly changing modes of international
business and new forms of communications media, e.g. use of SMS
messaging.
Recruitment needs to be focused on attracting and retaining
skilled staff in what is often a challenging job in a widely
networked, complex global operation. Commercial quick-footedness
(and relevant private sector experience) should be sought, rather
than a bureaucratic obsession with process. One ultimate test is
the skill to be responsive to a request for market information on
each product or service, in all its uniqueness.
TPOs should constantly look to benchmark themselves, internally
and externally, against other similar organizations. Discovering
that you are lagging against others on key performance indicators
can be salutary, and examining comparative data is a critical
measure of how your organization is tracking.
Benchmarking internally provides a link between strategy and
measured performance. The measures to be adopted need tight,
unambiguous criteria and should be designed so that there are no
unwanted side-effects (such as destructive competition between
staff in pursuit of individual rewards, or manufactured results
which paper over the cracks in a loosely defined measurement
system).
The International Trade Centre (ITC) is expanding and upgrading
its benchmarking services to provide best practice information on
key TPOs processes. As a neutral, trusted party, ITC can surmount
any fears of disclosure by individual TPOs and deliver comparative,
aggregated data to participating organizations. This will enable
TPOs to assess their performance in key result areas and chart a
course for world-class performance.
Recognizing achievement
It is vital that governments devote thinking time to their
expectations of, and plans for, their TPOs. There is sufficient
experience to show the way forward and to learn the hard-earned
lessons of how to make a difference to the international
performance of their traded goods and services sectors. Through its
World Trade Promotion Organization Awards, ITC has been recognizing
and rewarding best practices in TPOs. Tapping into this information
can be a useful guide to up-and-coming and ambitious TPOs,
especially from the developing world.
The last decade in particular has shown how it is possible to
lift millions out of poverty by taking advantage of more open
markets, economic growth and better information flows. More logical
processes of deciding where and how to focus will see resources
better allocated and produce greater returns.
The winners of the World Trade Promotion
Organization Awards for 2008 are:
Afghanistan: Best Trade Promotion Organization
from a Least Developed Country
Jamaica: Best Trade Promotion Organization from
a Small Country
Kenya: Best Trade Promotion Organization from a
Developing Country
New Zealand: Best Trade Promotion Organization
from a Developed Country
Costa Rica: Panellists' Surprise Award
New Zealand: 'Best of the Best' Trade Promotion
Organization
For information on WTPO winners see: www.tpo-net.com
Requirements for a successful TPO
- Recognition, support and funding from sponsoring
governments
- Positive and future-focused engagement between all
stakeholders, particularly the private sector
- Ambitious but realistic key performance indicators
- Customer relationship management to measure effort against
efficiency and results
- 'Live' strategic planning and constant evaluation, maximizing
the potential of communications and staying abreast of
technology
- Recruiting and retaining commercially savvy staff
- Benchmarking performances and constant comparison to similar
organizations