When I reached out to inquire about an interview for this blog, Steve couldn’t have been more willing to chat partnerships, collaboration, challenges engaging business leaders, and what it takes to combat these “wicked” problems he so aptly identified. 

My interview with Steve is below. But first, an introduction:

Steve Schmida is Chief Innovation Officer and Co-Founder of Resonance, a global consulting company headquartered in Burlington, VT, leveraging market-based solutions to the world’s biggest challenges. Before founding Resonance, Schmida spent a number of years working in the former Soviet Union, helping advance entrepreneurship models, promoting democratic development and human rights. During that time, Schmida had many opportunities to learn the ins and outs of bringing public and private actors together to achieve, what we now call, shared value, or a way of engaging in collaboration for mutual benefit and comparative advantage. This model of collaboration helped form the genesis of Resonance, which now after fifteen years, has become a leader in building effective collaborations for scaled impact. Helping donor agencies like the U.S. Agency for International Development (USAID), global nonprofits or private sector organizations partner to accelerate impact, Resonance leverages effective collaboration approaches to make development work better for those who most benefit.

Below is a summary of our conversation.

JS: What are some of the biggest challenges businesses are facing now? Many are of course unique given Coronavirus, but if we were to also consider pre-COVID, and looking into the future, what issues arise? How does cross-sector collaboration help?

SS: If you consider what businesses’ core priorities were during the 20th century, they were focused solely on optimization. Programs around lean manufacturing, six sigma or other methods for minimizing outputs and inputs were top of mind. Moving into the 21st century, business challenges have become more complicated. “Wicked” problems that offer no linear causation or solution, like climate change, human trafficking in supply chains, improving sustainable sourcing in agriculture and so on require a completely different set of tools and approaches. Collaboration is important for tackling these problems, because there is really no way companies can solve them on their own. No one company or civil society actor can make climate change less of a reality without engaging others to create new incentive structures, cultures or methods for evaluating success. Collaboration is the new norm.

JS: Do companies need prodding or encouragement to think this way, or are they moving into this new evolution on their own? 

SS: For those companies that see this move as being critical, they are making decisions accordingly. For others, there are a number of forces pushing companies in this direction. These include: 

1. Emerging of conscious capitalism. Consumer tastes are changing. This is driving a lot of action and reflection around issues of sustainability, and companies are taking notice, and making changes accordingly.
2. Investor pressure. The evidence is quite clear that companies operating in a more responsible manner, or that have more structured environmental, social and governance (ESG) programs, are providing higher returns on investment. Investors are taking notice, and the pressure to move ESG programs forward will continue. 
3. Employees. Companies are still competing for high quality talent. In a recent conversation with a well-known Silicon Valley technology company leader, he shared that nearly all of their actions around sustainability were propelled by interests from employees. Employee engagement is prompting innovation and new ways of thinking. 
4. Traditional industries are shifting their priorities. For companies within the extractives, oil and gas, mining or forestry sectors, priorities were a lot different during the 1990s. Profitability and supply took precedence over social or environmental impact. Unforeseen forces, many of which ebb and flow, or come from internal or external sources, are changing the way these sectors think about sustainability and partnering.

JS: What was it that prompted you to write this book? Which moments over your extensive career working with businesses in collaboration contexts made you think that writing a book was necessary to get this message out? 

SS: There’s a lot of great material out there around partnerships produced by many wonderful organizations. Almost all of the information, however, has been written from the perspective of the  public sector, or is focused exclusively on civil society. Very little has been written from the business context that allows the sector to act. I’ve worked directly on fifty or more partnerships (which includes building, managing, evaluating, and implementing collaborations). For business professionals, this space is tricky to navigate. I wanted to put something forward for a business professional that provides value and guides them into cross-sector collaboration in a way that’s engaging and readable. Also I wanted it to be less academic.  The book is a “how to guide,” but it does not come with exercises. It does, however, include narratives that aim to illustrate a point, by highlighting how peers have engaged around a sustainability agenda. The book is meant to give different perspectives for businesses to use collaboration as a commercially viable tool. 

JS: What is an ideal example of cross-sector collaboration through your experience? Something that’s worked well? 

SS: There’s a good example that I include in the book, of a Resonance project working with USAID in Ghana. We were working with fisherfolk who found it risky to fish in the open ocean. We identified that insurance would help ameliorate the risk for fisherfolk’s families, so we brought in insurance and financial companies to deploy mobile micro insurance products geared towards these communities. Both the companies and USAID wanted to scale the initial project, so with the help of the Ghanaian government, we expanded what we thought would only be 300 participants into a 3,000 participant program. The companies were thrilled, because their product showed value, and they were able to learn a new market segment. The fisherfolk were relieved, and the government was happy to see such a viable business take off in this local context. USAID also saw value, given the extension of this informal sector into a new geography. The program is scaling and will serve 200,000 paying customers just this year. The insurance and financial companies are extending their services beyond fisherfolk into other sectors. We were thrilled to see a development problem turn into a business opportunity by finding the right collaboration. 

JS: What are some of the biggest challenges you have faced in engaging in cross-sector collaboration?

SS: Effective collaboration around sustainability needs to solve a business problem, as well as a social or environmental problem. There must be alignment internally from both the business and corporate social responsibility sides for collaboration to work.  At the same time, companies are facing supply side constraints. They are starting to see a pinch in their standard way of operating. In agriculture, for example, climate impacts yield, so when demand goes up, yields are doubly impacted. The internal teams focused on both of these issues need to agree with how to address this challenge. This internal misalignment is not unique to companies, but companies need to agree that there’s value in partnership. Multiple company departments have to be involved in making decisions. Incentives must align. Companies have different cultures and ways of handling these decisions. Internal alignment, and bringing stakeholders along on the journey is something that’s not often talked about, but where there’s a lot of work to still take on. 

JS: In the book you share valuable tools for businesses ready to partner, including ways to overcome differences in approaches or methods for measuring impact. What is one of the most important elements of the process you include?

SS: Measurement. At Resonance we have a partnership results chain process that we use. It looks very similar to a logical framework analysis yet incorporates partner goals and motivations. We use it to help companies manage their partnership engagements a bit easier. We’ve also used it as a facilitation tool. The tool allows partners to understand the implicit and explicit outcomes of the partnership. We adapt it to many contexts and I share about it in the book. 

JS: What is the one thing you wish you could tell all business leaders before they embark on a partnership journey?

SS: To get clear and crisp on the problem to be solved and determine whether it lends itself to partnership or not. In the book I talk about the simple, complicated and wicked problems framework. First things first, companies must understand what type of problem they are trying to solve. If it’s a simple problem, maybe they don’t need to involve outside actors to solve it. If it’s a complicated or wicked problem, then a business may need to ask itself “who else cares,”  “who else has equities in this problem,” or if it’s unique to the company, in which case it makes sense to address the problem on its own. If there are equities elsewhere, the business will need to engage others in collaboration. This becomes the key point of departure in thinking about a partnership.

JS: What do you hope your readers will gain by reading your book?

SS: I hope they walk away excited that there’s an approach for solving problems, or at least trying to tackle them. Collaboration across sectors is not as easy as it sounds. Many of our clients come to Resonance after they’ve had a failed experience with partnership. Certain elements are complicated, especially internally. Yet they can be solved. Effective partnership requires intentionality. I hope business leaders approach partnership with intention and be deliberate after reading this book.

JS: Is there anything else you’d like to add?

SS: Partnerships are an incredible tool but they are not a panacea. The purpose of my book is to help companies see that partnership is a tool they can use, and equip people with the skills to determine whether it’s the right tool.  Resonance’s commitment is to operate at the nexus of civil society, the public and private sectors, and to help focus on the important problems to solve.

It was such a joy to talk with Steve about his work and his book. His dedication to partnership building, and effective collaboration to address our wicked problems is inspiring and contagious. I hope you’ll join me in enjoying his book when it comes out June 2nd. Pre-sales are available here.
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Joanne Sonenshine is Founder of Connective Impact, an advisory firm developing impactful partnership, funding and collaboration strategies for international, mission-driven, socially-minded and environmentally conscious organizations

The Coronavirus has arrived in the United States, and even if we do our best to avoid getting infected, our daily lives and work will be (and already are) impacted. 

However, not all is lost!

Partnerships and collaboration can still thrive without face-to-face interaction. Our online partnership community is a testament to that! Think of the carbon savings, too, when virtual meetings replace ones you must travel thousands of miles to attend! With some strategy and a few little tweaks to how you work, your partnerships can continue to thrive even during this uncertain time.

What can you do In the wake of Coronavirus to ensure your business keeps its partnership dialogues moving despite limited in-person time?

1. Communicate, communicate, communicate: It’s essential for making partnerships thrive in normal times. With hesitations to travel, more frequent communication will be key to maintaining successful partnerships. Luckily, there are countless online tools that enable us to feel the energy of a face-to-face meeting, without the handshakes. To ensure productive communication, set up weekly or even more frequent check-ins with counterparts. Even if you don’t need that check-in, do it anyway. This will provide reassurance that the partnership is progressing and that you are accessible to your counterparts.
2. Re-affirm goals, roles and responsibility: At the outset of any partnership, you probably established goals for your work together, as well as roles and responsibilities. Take this time to review and confirm that your shared vision and goals are still achievable, and that each party is still able meet their commitments. Canceled a trip to origin? Establish how you’ll check in with suppliers, and see if local partners can help with monitoring. Use our partnership evaluation tool to help assess your progress.
3. Ask for help: Many us will have to re-strategize our business plans for 2020 – you’re not alone. Reach out and ask for help, participate in online dialogues and workshops. We have set up 1-hour strategy sessions to help you think through some of these challenges and can help you identify partners that will support you until business gets back to normal.

Don’t have a partnership strategy yet? Now is a great time to build one. Take a look at our free resources online and get in touch. ​

According to the U.S. Agency for International Development (USAID), resilience is all of those things, and likely more. Resilience is about systems change, and multi-sector engagement on the ground, especially in communities where conflict, development deceleration and economic loss is most prevalent.

In a panel discussion hosted by the Society for International Development (SID) here in Washington, and populated with leaders from USAID, the Center for Strategic and International Studies (CSIS), Mercy Corps, and Opportunity International, USAID shared an update on its  Bureau creation, whereby the existing Bureau for Food Security (BFS) will merge with the water teams currently housed within the Bureau for Economic Growth, Energy and Environment (EEE), and Center for Nutrition, to become the new Bureau for Resilience and Food Security.

The proposed Bureau aims to improve the way the agency helps communities and countries "enhance their well-being, improve water security and reduce hunger, poverty and malnutrition." But what does that really mean? For the new Center, focusing on resiliency doesn't mean an entirely new approach to distribution of U.S. Government aid. It simply means that USAID can better target countries and communities most in need of humanitarian assistance, while eventually saving on U.S. Government costs, by building systems and capacity that allow for the countries to take on their own development in the future.

The three sources of programmatic activity aim to be:

1. Livelihoods (diversification and improved incomes)
2. Systems (natural resource management, climate change, improved communication and coordination across sectors)
3. People (healthy, educated, well nourished and gender equitable)

The U.S. Government is right to focus on how its dollars are utilized in countries like Ethiopia, for example, where more than $5 billion has gone to address challenges around drought, food insecurity, and income inequality over the last decade. While Ethiopia has made great gains in its development trajectory, when new challenges come into play (for example the current devastation brought on by locusts or floods, etc.) the country should ideally be able to help itself bounce back over time. The Bureau's aim is to help build local infrastructure, market systems, technical capacity and local collaborations to help countries and communities mitigate, and ultimately adapt, to these crises, without the continuous need of the U.S. Government.

During the panel discussion, a panelist raised this simple,  yet provocative question: "We are we still focused on resilience after all of these years?" The answer: We have no choice until we get better at it. USAID will be taking lessons from the successful Feed the Future program, and continue promoting the long term benefit of adoption of farming best practices, climate smart agriculture, better use of soil, income diversification and gender equity to propel resilience measures in places where it invests. 

There was much talk about collaboration, and how hard it can be, especially when there are so many different systems, terminologies and approaches used in field contexts. I asked how the U.S. Government is considering its role in managing irresponsible governments and crumbling infrastructure, like bridges and roads, given how much it touts its interest in working with the private sector, and the need for these basics to be in place for effective market-based systems to thrive. Thriving market-based systems lend themselves to longer term development, and resilience, all else being equal. The private sector grows impatient with USAID at times when the urgent need is better governance to promote market-based systems. From the response I got, it sounds like USAID recognizes its importance in facilitating strong government dialogue, and helping governments commit to long term market stabilization, thus encouraging private sector engagement. As an aside, this is also the role the Millennium Challenge Corporation is trying to play alongside USAID.

I was encouraged by the repeated mentions of multi-sector approaches, since to address resiliency in many communities (particularly those in agricultural centers), the community must be at the center of investment, and one sector alone, or commodity, or investor type, or government even, can not solve all challenges without effective collaboration, built from the community up. 

In summary, it remains to be seen how effective the new Bureau for Resilience and Food Security will be in truly moving the needle on development challenges in places of highest need, conflict and humanitarian crises. Measuring results around resiliency has gotten easier, but is still incredibly difficult AND takes a lot of time.

In the meantime, our role here at Connective Impact will be to bring together actors that have a vested interest in seeing economic improvements over time, and are patient for results, but believe deeply in the power of markets and private sector-led collaboration to make change.