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Social Entrepreneurship and Innovation

This workshop by Jamila Aman focuses on social entrepreneurship, strategic management, and organizational readiness to help you develop innovative solutions. Learn to balance mission and financial sustainability while creating valuable social impact ventures.

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Social Entrepreneurship and Innovation

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  1. Social Entrepreneurship and Innovation Jamila Aman UFT FEB 18, 2009

  2. Presented byJamila Aman, Executive Director Northwood Neighbourhood Services Jamila Aman UFT FEB 18, 2009

  3. Remember • A bad idea with a champion is better than a good idea without a champion Jamila Aman UFT FEB 18, 2009

  4. Workshop Purpose • Celebrate and build on success • Outline systematic approach • Earned income • Establish business objectives/criteria • Product development • Product screening • Risk management and readiness • Shared services (MSO) Management Service organization • Venture philanthropy, why social enterprise Jamila Aman UFT FEB 18, 2009

  5. Social Entrepreneurship • Why Social Enterprise? • To generate an restricted revenue • To use an restricted revenue for advocacy) the forbidden word) • To use revenue from social enterprise it for programs/ services that are hard to cell to donor agencies • To create social purpose enterprises Jamila Aman UFT FEB 18, 2009

  6. Social Entrepreneurship • Application of entrepreneurial attitudes to social sector: • Change is the norm • Embrace change • Seek change • Client focused • Shift resources from low to high productivity • Calculated risks • Create something new • Strive for Transparency Jamila Aman UFT FEB 18, 2009

  7. Organisational ReadinessRisk Management Jamila Aman UFT FEB 18, 2009

  8. Issues • Fear of loss of control • Resources – financial/human • Risk averse culture • Conflicting ends • Lack of structure/governance for success Jamila Aman UFT FEB 18, 2009

  9. Organizational Readiness • Strategy • Governance • Human resources • Finances • Operations, Products and Services • Market perspective Jamila Aman UFT FEB 18, 2009

  10. Strategic Management Overview D. Throughput A. Output C. Input Current State Strategic Implementation Annual Strategic Review and Update Future State Change Management 5. Current State Assessment and Business Planning Parallel Process with Key Stakeholders 2. Strategic Planning: Vision, Mission, Values 4. Objective Development B. Feedback 3.Strategic Priority Jamila Aman UFT FEB 18, 2009

  11. Mapping the Future Ideal Future Vision • Formulate dreams that are worth believing in & fighting for by meeting 3 challenges. Challenge #1. Vision Statement Challenge #2. Mission Statement Challenge #3. Core Values Jamila Aman UFT FEB 18, 2009

  12. Ideal Future Vision Answer all or any of the following questions: What will put you out of business? What is your ultimate vision of success? What is your ideal community vision? Answers may be - end of homelessness, hunger etc. Jamila Aman UFT FEB 18, 2009

  13. Mission What is your organization’s part in achieving the vision? What do we produce? Who do we serve? How do we do it? Jamila Aman UFT FEB 18, 2009

  14. Values What do board members & employees stand for & embrace? What are the rules? May include integrity, transparency, entrepreneurship, innovation etc Jamila Aman UFT FEB 18, 2009

  15. Strategic Priority Development Balanced Score Card Format Consider organizational success from more than one perspective, for example: Internal Business Processes Client Financial Human Resources Jamila Aman UFT FEB 18, 2009

  16. Strategic Priorities Financial Answer the question: How do you wish to appear to your owners/funders? Internal Business Processes Client Vision Mission Values Answer the question: In order to achieve your mission, what business processes must you excel at? Answer the question: How do you wish appear to your client/customer? Human Resources Answer the question: How do you sustain your ability to learn and grow? Jamila Aman UFT FEB 18, 2009

  17. Earned Income Jamila Aman UFT FEB 18, 2009

  18. Results in Other Ventures • 90% of successful ventures relate to the non-profit’s mission • Planning matters • 46% of non-profits with ventures have more than one • 69% are profitable • Profitability is reached in 2.5 years on average • Only 10% use a spin-off – cutting edge • The largest benefit is the creation of an entrepreneurial culture (58%) Jamila Aman UFT FEB 18, 2009 From a survey of non-profits operating business ventures

  19. Systematic Approach Jamila Aman UFT FEB 18, 2009

  20. Systematic Approach • Determine organisational • Need for innovation • Purpose • Organisational readiness and commitment • Product development • Search for opportunities • Create new services and screening • Research, design, testing • Launch, evaluation and revision • Portfolio approach Jamila Aman UFT FEB 18, 2009

  21. Strengthens OrganisationsAchieves Mission • Generates revenue • Unrestricted • Greater degree of control • Enables growth beyond funding base • Supports mission and strategic plan • Create valuable new services • Enhances profile Jamila Aman UFT FEB 18, 2009

  22. Balancing Mission and Financial Return Jamila Aman UFT FEB 18, 2009

  23. Product Development ProcessPlanning for Success Jamila Aman UFT FEB 18, 2009

  24. Definition of a Good Idea • Meets a significant customer need – a market • Return on investment • Risk managed • Competitive advantage • Cost • Performance • Leverages a strength/asset • Fits with mission/values Jamila Aman UFT FEB 18, 2009

  25. Enterprises • Mission related products or services • Same product, new market: geographic or customer • Programme related products (manuals)/services (EAP) • Staff resources (training) • Public sector contracting • New product/leveraging organisational strengths • Client resources (social firm) • Soft assets intellectual property (licensing/franchising) • Hard assets (rental) • Unrelated business (Ben & Jerry’s) Jamila Aman UFT FEB 18, 2009

  26. Product CreationPre-work • Scan • Community trends and needs • Potential market opportunities – market research • Attend conferences/read magazines/annual reports/web/etc • Assess what competitors are doing • Scan • Internal capacities (swot) • Leading edge networking Jamila Aman UFT FEB 18, 2009

  27. Brainstorming • Use information/knowledge/fantasy/dreams/intuition • Build on experiences of and skills/knowledge in the organisation • Lateral thinking, scramble patterns • e.g. pose a problem and only outrageous solutions are suggested • Look at data for opportunities, look at it from other people’s perspectives • Be excited, accept thoughts/play with them - have fun • Bring experts from different organisations together • Discuss with others, family, friends, associates • Generate a list of opportunities e.g. Northwood case Jamila Aman UFT FEB 18, 2009

  28. Level 1 Screening Criteria Does the idea further your vision, mission, values and strategic priorities? 1=no, 2=partial fit, 3=full fit Is there a potential customer benefit? 1=none, 2=some need/some customers, 3=urgent need/many customers Are there profit potential (by third year)? 1= less than 20K, 2=more than 20 k but less than 50k, 3= more than 50k What investment is required? 1 = major investment , 2 = minor investment, 3 = achieve with current resources Is there a champion? 1=no, 2= neutral 3=yes Is there risk? 1 = high risk (no known mitigation), 2 = medium risk (new strategies needed), 3 = low risk (strategies in place) Scoring: each idea will have a score of 6-18 Jamila Aman UFT FEB 18, 2009

  29. Screening Phase 2 • Create a concept statement • Describe product • Target audience and reason for buying it • When, where, how? • Product attractiveness • Financial results • Marketing issues and competitors • Risk factors • Does it fit with the organisation? • Test with sample of external experts Jamila Aman UFT FEB 18, 2009

  30. Screening Phase 3Feasibility Analysis and Priority Setting • Does the product have financial potential? • How likely is the product to implemented successfully (easy or hard)? • Is an investment required? • Is an investment justifiable in terms of financial or mission improvement? • Does the product advance mission and strategic priorities? Jamila Aman UFT FEB 18, 2009

  31. The Success Quadrant Fit with Organisation Jamila Aman UFT FEB 18, 2009

  32. First Set of Measures Product A Jamila Aman UFT FEB 18, 2009

  33. Product A Second Set of Measures Jamila Aman UFT FEB 18, 2009

  34. Product A Strength of Idea Fit with Organisation Jamila Aman UFT FEB 18, 2009

  35. Screening Phase 4Business Planning Jamila Aman UFT FEB 18, 2009

  36. Benefits of Writing a Business Plan • Refines the idea • Writing it down makes it real • Creates a framework for making the idea happen • Method of external communication • Internal due-diligence tool Jamila Aman UFT FEB 18, 2009

  37. Guidelines for Successful Plans • Aim for a maximum of no more than twenty pages in the main body of the plan  • Be as brief and crisp as possible when explaining your idea and strategy • Quantitative • Specific • Cover what investors are looking for • Address risk and exit Jamila Aman UFT FEB 18, 2009

  38. Business Plan Format • Cover Page and Executive Summary • Description of the business • Industry and Market Analysis • Marketing, Communications and Sales Plan • Management and Operations / Launch Plan • Risk Assessment and Contingency Plan • Exit Strategy • Financial Plan for Your Venture • Supporting Documents Jamila Aman UFT FEB 18, 2009

  39. Development Testing Launch After That…. Entrepreneur Jamila Aman UFT FEB 18, 2009

  40. Organisational Structure Jamila Aman UFT FEB 18, 2009

  41. Why Separate? • Different cultures/ends • Shield non-profit from business risk • Raise external capital • Enhance focus on non-core markets without compromising non-profit’s purpose or funding Jamila Aman UFT FEB 18, 2009

  42. Structure Non-profit Organisation Business Business Business Intellectual Property Enterprises Holdings Business Operational Support Purchase Of Service Investors Jamila Aman UFT FEB 18, 2009

  43. Transition • Clean break, separate entities • Share resources, purchasing services • Conflict of interest • Sharing management • Compensation • Share purchasing • Transition plan and monitoring Jamila Aman UFT FEB 18, 2009

  44. Relationship With Non-profit • Customer/vendor/owner (major shareholder) • Separate companies – consistent vision • Some price concessions to keep charity as a customer and meet mission • Mutually beneficial for Enterprises to succeed • Negotiated and governed by contract Jamila Aman UFT FEB 18, 2009

  45. Significant Key To Success • Foster a dynamic, success generating, entrepreneurial ethos • Provide support to staff who are: • Creative • Innovative • Entrepreneurial • Productive • Successful • Aspiring Jamila Aman UFT FEB 18, 2009

  46. Partnerships, Alliances Mergers, Acquisitions Jamila Aman UFT FEB 18, 2009

  47. Working together • Creating efficiencies • Enhancing quality • Allowing for a focus on services • Supporting social enterprise Jamila Aman UFT FEB 18, 2009

  48. Context • Pressure to create efficiencies • Enormous duplication Jamila Aman UFT FEB 18, 2009

  49. One Approach - MSO • A management service organisation (MSO) is an integration that includes the creation of a new organisation in order to integrate administrative and fundraising functions, and thus to increase the administrative efficiency and effectiveness of participating organisations. It may include co-location. Jamila Aman UFT FEB 18, 2009

  50. Benefits • Enhances quality, strengthens organisation • Generates revenue: cost savings/profit • Frees management time • Keep up • Enhances profile/reinforces advocacy partnering • Reduces risk • Entrepreneurial spirit • Supports mission and strategic plan Jamila Aman UFT FEB 18, 2009

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