Social Innoavation
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Transcript of Social Innoavation
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Applying Social Innovation to Your Organization
Facilitator: Geri StengelThursday, October 22, 2009
9:30am – 1pm
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§ Professional Development Workshops
§ Certificate Programs
§ Customized Training & Conference§ Facilitation
§ Meet the Grantmakers Panel § Discussion Series
§ Consulting & Coaching§ Executive Leadership Service
§ Grantmaker Services
§ Room Rentalsjkljlkjkl
www.supportcenteronline.org
What we do
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Facilitator BiographyGeri Stengel president of Ventureneer, an online education and peer support service, and Stengel Solutions, a strategic planning and marketing consultancy. An adjunct professor at The New School, she headed marketing at companies like Dow Jones and Physicians' Online. Geri co-founded the Women's Leadership Exchange. She is a past vice chair of Governance Matters and past board member of the National Association of Women Business Owners – NYC
For questions about today’s workshop, please email Geri Stengel at:
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Agenda
• What Is Social Innovation?• Social Enterprise• Being Values Driven• Social Investing• Measuring Social Impact
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What Is Social Innovation?
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What Is Social Innovation?
• New strategies, concepts, ideas and organizations that meet social needs of all kinds – Working conditions– Education – Community development– Health– And more
Source: Wikipedia
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What Is Social Innovation?
• A new idea, method, or device to solve society’s challenging problems
• The idea / model can come from public, nonprofit, and private sector
• Method for doing things more efficiently, effectively, and sustainably
• Some are already innovating:– Teach for America, Wendy Kopp– Benedict, Jim Fruchterman– Grameen Bank, Muhammad Yunus’s
Source: Andrew Wolk, Root Cause
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A White House Perspective
• Find the most effective• Focus on high-impact, result-
oriented non-profits• Provide the capital needed to
replicate• Partners with citizens,
nonprofits, social entrepreneurs, foundations and.
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What Is the Social Innovation Fund?
• Solves some of our nation’s most difficult social challenges by working with the grantmaking community to identify what is working in communities
• Provides growth capital and other support so that these programs can help more people
• Improves the use of data and evaluation to maximize the impact of government funding
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How Will the SIF work?
Social Innovation Fund
Growth Capital toOrganizations95% of SIF
Investment inResearch and
Evaluation5% of SIF
ViaGrantmakingInstitutions85% of SIF
Directly toCommunity
Organizations10% of SIF
Communityorganizations
Communityorganizations
Communityorganizations
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Why Work Through Intermediary Organizations?
• Grantmakers know the nonprofit community and possess the skills necessary to find the most promising approaches and help develop them
• SIF can further leverage federal dollars by inspiring the grantmaking community to focus on growing promising organizations and matching federal dollars with significant private investment
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Ten Social Innovations
• Charter Schools• Community-Centered Planning• Emissions Trading• Fair Trade• Habitat Conservation Plans• Individual Development Accounts• International Labor Standards• Microfinance• Socially Responsible Investing• Supported Employment
Source: Stanford Social Innovation Review
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Questions
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Who Gets It
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Case Studies
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What did they do right?
• http://www.philanthropyforum.org/forum/2009_Plenary_6_Video.asp?SnID=807878483
Part 1, 6:30 minutesPart 2, 10 minutes
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Who Gets It
• Founded Pam Omidyar• Combines intensive research with
cutting-edge technology to improve the health and quality of life of tweens, teens and young adults with chronic illnesses
• Create fun, innovative products• Re-Mission, video game ,for
young people with cancer. Improves treatment adherence and other key health outcomes.
• gDitty combats sedentary behavior in children as a way to fight the effects of childhood obesity.
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Who Gets It
• Headquartered in NH• Helps people acquire fuel-efficient,
affordable and reliable vehicles• Helps clients build
creditworthiness and provides car selection and purchase assistance to help low- and moderate-income individuals create savings, improve their access to health care, and reduce carbon emissions into the environment
• Since 2001, Bonnie CLAC has guaranteed over $12 million in loans for more than 1200 clients, most of whom fall below HUD low-income guidelines.
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Who Gets It
• Houston-based • Trains and employs high school
students to perform technical services for major corporations
• Seeks to enable economically disadvantaged high school students to enter the economic mainstream by providing them with the knowledge and work experience required to succeed as technical professionals
• Over 95 percent of Genesys Works graduates go on to college. Genesys Works has locations in St. Paul, Minnesota and Houston, TX and is planning to open a Chicago location in 2010
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Questions
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Social Enterprise
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Trends in Social Enterprise
• Recognition that we need innovative approaches to social change and that the status quo is not sufficient
• Desire to harness private ingenuity, resources, and energy for the public good
• Appreciation for the value of socially entrepreneurial behavior
• Interest in drawing on business methods and markets, where possible, to craft sustainable solutions to social problems
• Need to learn more about what it takes for socially entrepreneurial efforts or endeavors to succeed
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Teach a Man to Fish, and You Feed Him for Life
• “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for life.”
• Experimentation with for-profit and hybrid forms of organization to serve social missions or deliver socially important goods and services
• More “strategic,” “engaged,” and “outcomes-based” approaches to social sector funding
• More attention paid to issues of impact, scale, and sustainability with the hopes of increasing SROI
• Growing experimentation with market-based approaches and business-inspired methods
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Broad Categories
• Cause marketing• Licensing• Government purchase social
services• Retail or Thrift Store• Temp Agency• Housing / Property Management• Clerical Services• Consulting Services• Restaurant or Café• Packaging and Assembly• Employee Assistance Program• Maintenance• Technology Related
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Specific Examples
• Ben & Jerry’s in Times Square is operated by a non-profit that is using the store to make money and place youth in part-time jobs
• An education foundation sold the rights to a textbook it developed --- commercialize intellectual property
• a US based non-profit sells licenses to use its programs in other countries -- - expand mission
• Girl Scout cookies – although there are programmatic benefits, there is no doubt that the cash from the sale of cookies is critical to the funding stream - generate funds
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Being Values Driven
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Types of Values Driven Businesses
Products/services that improve the
quality of the life in the community
Operate in a social
responsible way
Invest profits in social
environmental causes
Values-Driven Business: How to Change the World, Make Money, and Have FunBy Ben Cohen, Mal Warwick
Types of Values Driven Businesses
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Five Dimensions of Values Driven Businesses
Your Company
Employees
Suppliers
Customers
Community
Environment
Environment
Values-Driven Business: How to Change the World, Make Money, and Have FunBy Ben Cohen, Mal Warwick
Five Dimensions of Values Driven Businesses
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Employees
• Do your workers reflect the ideas, spirit that define the character of the organization?
• Does the organization reflect the employees value to it?– Wages
• Profit sharing• Stock options
– Benefits• Health, EAP, health club, • Retirement• Flex time, maternity leave
– Flex time
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Employees – cont’d
– Support, encouragement, respect, opportunity
• Training • Recognition
– Advancement– Self expression
Benefits: lower turn over, employees more productive, attend to details better, easier to recruit, higher quality people, lower theft/fraud
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Employees – cont’d
Given the economic times, how could you control costs and add value for employees?
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Suppliers and Vendors
• They are a source of innovative ideas, market intelligence, feedback on operations and products
• You can have greater expectations of them– Supplier diversity– Environmental friendly practices– Vetting for child labor (Nike, site visits)– Fair trade practices– Employee practices– Community orientation
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Suppliers and Vendors – cont’d
• Besides a fair price, what expectations do you place on you suppliers?
• How can you pressure them to become more socially and environmentally conscious?
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Customers/Clients
• How do you listen to your clients to improve your service?
• What improvements have you made based on client feedback?
• How can you go further to improve their?
• Can you educate them to be more socially and environmentally conscious?
Benefits: customers more loyal and forgiving when something goes wrong, some customers prefer companies with a cause
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Community
How can you partner within the community to improve your organization and the community?
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Environment
• How can you reduce waste in production and packaging process?
• How can you recycle?
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Determine Screening Matrix
• What values do you care about the most?
• How much do the tactics within the value costs?
• Which tactics have the most impact?
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Questions
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Social Investing
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What Is Socially Responsible Investing (SRI)?
An investment process that considers the social and environmental consequences of investments, both positive and negative, within the context of rigorous financial analysis
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In What Do Socially Responsible Investors Invest?
• Environment• Health • Consumer-product safety,• Diversity and human resources
policies• Human rights and the supply
chain• Community impact
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In What Don’t Socially Responsible Investors Invest?
• Make or sell weapons• Alcohol• Tobacco• Pornographic products• Poor environmental record • Exploit labor in developing
countries • Gambling or casinos• Don’t respect animal rights
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Socially Responsible Investors Are Customizing Issues
Countries with poor records on labor standards and human rights or where conflict, civil strife, terrorism, or pandemic diseases
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Who Are Social Responsible Investors?
• Individuals• Businesses• Universities
• Hospitals• Foundations• Pension funds
• Corporations• Religious institutions• Nonprofit organizations
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The Numbers:
From 1995 to 2007• SRI assets grew 324%
From $639 billion in $2.71 trillion• Overall assets under management
Grew 260%From $7 trillion to $25.1 trillion
• $1 out of every $9 U.S. is involved in socially responsible investing
From 2005-2007 • SRI assets grew vs. overall assets
under management 18% vs. 3% respectively
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SRI – Not a Fad
• Socially/environmentally screened funds have substantially grown
• Money managers are increasingly incorporating social/environmental investing
• Shareholder resolutions on social, environmental and governance issues rose dramatically
• A growing number of institutional investors support shareholder resolutions on social, environmental and governance issues
• Shareholder advocacy produces changes in corporate practices
• Community investing has grown significantly
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How Do Your Investments Measure Up?
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Questions
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Social Impact
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Metrics: Understandable, Inexpensive and Useful – Acumen
• What social impacts is your venture aiming to achieve?
• What is the relationship between these impacts and the activities of your venture?
• How well is venture achieving them? What are you learning about how to improve this?
• Can you afford to regularly produce these impacts?
• How much value is being created for society as a result?
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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GSVC Defines 3 Steps
1. DEFINE social value proposition: Theory of Change
2. QUANTIFY how you’ll track social value: Impact Value Chain: top three social output indicators
3. MONETIZE intended social value: Social Return on Investment (SROI)
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Step 1. Define Your Social Value Proposition: Tool 1. Theory of Change
• Focused: concise IF-THEN statement or statements that define the intended social impact and how the operation intends to cause it to happen– “If poor women in East Africa have
access to a microbicidal contraceptive, then AIDS will spread less rapidly in those countries.”
• Detailed: fine-grained set of cause and effect assumptions at the core of a strategy to create social change or achieve social impact.
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Step 2. Quantify Top 3 Social Indicators
Identify your top indicators of social value• These are outputs you can
measure directly as part of your business operations
• They should relate in a compelling way to the ultimate desired social outcomes of the venture
• We call them “indicators” or “social outputs.”
• Competition requires that you specify the 3 most important.
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Tool: Value Impact Chain
Inputs è Activities è Outputs è Outcomes è Goal Alignment
What is put into the venture
Venture’s primary activities to produce financial and social value
Results that can be measured by the venture –Social Indicators
Changes (increases or decreases) to the social system
How well outcomes align with intendedgoals; activity and goal adjustment
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Tool: Value Impact Chain
Inputs è Activities è Outputs è Outcomes è Goal Alignment
What is put into the venture
Venture’s primary activities
Results that can be measured
Changes to the social system
Activity and goal adjustment
-What would have happened anyway
= Impact
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Step 3: Monetize Impact
Identify the dollar value equivalent of your projected social impact to create a social return on investment.• There is no standard methodology
in current use to monetize social return and teams are strongly encouraged to build on existing work, innovate, and rigorously defend your decisions.
• That said, we will walk through the social return on investment (SROI) model used to date in the GSVC and by REDF. (www.redf.org)
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Tool 3: SROI Steps in Calculation of SROI
1. Quantify outputs/outcomes where possible
2. Translate into economic equivalent where possible using proxies
3. Develop social cash flow projection4. Subtract outputs/outcomes that
would have happened anyway (refer to proxy data)
5. Where outcome is qualitative, discuss what it is and how you will know it’s happening
6. Cite your sources and assumptions clearly
Source: Social Impact Assessment and Building Your SROI, Cathy Clark Faculty Advisor, GSVC Director, Research Initiative on Social Entrepreneurship Columbia Business School
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Questions
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Suggested Reading
• Obama Pushes For Social Innovationhttp://www.nptimes.com/09Jul/bnews-090701-1.html
• Stanford Social Innovation Reviewhttp://www.ssireview.org/
• http://andrewwolk.com/• http://www.fullcirclefund.org/• Values-Driven Business: How to Change the World, Make
Money, and Have Fun, Ben Cohen and Mal Warwick• On www.socialvc.net under Resource Library SROI examples.• Human Service Fellowship
http://socialvc.net/index.cfm?fuseaction=Page.viewPage&pageId=108&parentID=58&nodeID=1