A New Generation of Leaders: The Social Entrepreneur

1. A New Generation of Leaders: The Social Entrepreneur Fulbright Lecture Series November 19, 2010 Dayle M. Smith, PhD Professor of Management University of San Francisco Fulbright Visiting Professor of Management, Hong Kong Baptist University and the HAC 2010-2011

2. Overview • Introduction • Fad or Paradigm Shift • New Generational Values • A Model for Social Entrepreneurship and Leadership Development • Role of Education in Developing the Social Entrepreneurial Leaders • Implications and Discussion

4. Challenge: Access to Clean Water • 1.2 billion people are drinking unsafe water • Problem: transport (retrieval to consumption) • Seeding innovation in the water sector • Acumen Fund, IDEO w/backing from Gates Foundation

5. Micro Finance • The Kadoorie Story in Hong Kong • Grameen in India (http://www.grameen.com/) • KIVA in the US & Worldwide

7. Social Entrepreneurship Defined • A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change….rather than bringing a concept to market to address a consumer problem, social entrepreneurs attempt to bring a concept to market to address a public problem. (Alex Nicholls, Oxford University’s Skoll Centre) • Social entrepreneurship takes many forms, but at it’s core is characterized by a leaders’ sense of social consciousness and a desire to make a positive impact on society

8. …adapted from an ancient Chinese proverb • Philanthropy/Charity “Give a man a fish and you feed him for a day…” • The NGO/Government Model “…teach a man to fish and you feed him for a lifetime” • Social Entrepreneurship “Provide him access to capital to create a sustainable fishing business at a fair rate of return and change the world”

9. Challenges • Understanding of Complex Problems (poverty, access to clean water, healthcare, environmental pollution,sustainability in all its forms) • Taking a A Different Approach to Business • Collaborative effort • Triple Bottom Line Thinking • Leadership Reframed

10. Why a “new” generation of Leaders? What do our students care about? What inspires this generation? …the anecdotal evidence

11. A New Generation of Business Leaders • “socially aware, globally engaged…” - --Professor Dave Gershon National Institute for Pharmaco-Economics and Healthcare Policy Social Venture Incubator

12. IBM Global Student Study 2010 • Three most important ‘external’ forces over the next three years • Globalization • Environment • Sustainability Source: IBM Global Student Study 2010, IBM Global CEO Study 2010

13. Representative Comments • “I’ll consider economic performance and societal/environmental performance as two parts of the same process of wealth creation. We need to rethink what wealth means” (student, France) • “Resources are depleting heavily. Govenrments will now take things into their hands and keep their resources in their country so they will last longer.” (student, India) • “Natural resources..are becoming more scarce….there will be a need for collaboration among nations to find solutions to these problems, which means that organizations will be more interconnected.” (student, USA) • “Global thinking is a must for leaders, but it must be associated with a focus on sustainability and integrity, otherwise businesses will be short-lived.” (student, Japan) Less than 4 in 10 students believe their education has prepared them well to address the new realities of a shared planet

14. Insights from the IBM Study • To meet future challenges…. • Rethink Business Value • Create Stronger Global Connections • Inspire Creative Leadership Source: IBM Global Student Study 2010, IBM Global CEO Study 2010

15. The Role of Education Consider these ideas about Education…

16. “In an engaged institution, an ideal education lies between the two poles of experience and purpose, thought and action, self-realization and social responsibility. An education is meaningful when it liberates the spirit and feeds the soul andat the same time, prepares us to make good decisions, contribute to public life, and live as responsible citizens of our democracy. To foster a society in which learning has consequences, our colleges and universities must direct themselves to bringing public purposes and private benefits together.” (--Ramaley, J.A. (2005). Scholarship for the public good: living in Pasteur’s quadrant. In A.J. Kezar, T.C. Chambers, & J.C. Burkhardt (Eds). Higher education for the Public Good. (p 180). San Francisco: Jossey Bass.)

17. Scholarship of Engagement • “At one level, the scholarship of engagement means connecting to our most pressing social,civic and ethical problems. Campuses should be viewed by both students and professors not as isolated islands but as staging grounds for action…. but at a deeper level…what’s also needed is is not just more program, but a larger purpose, a larger sense of mission…. …the scholarship of engagement also means creating a special climate in which the academic and civic cultures communicate more continuously and more creatively with each other, helping to enlarge what anthropologist Clifford Geertz describes as --the universe of human discourse and enriching the quality of life for all of us.” (Boyer, 1990. Scholarship Reconsidered: Priorities of the Professoriate. Princeton, NJ: Carnegie Foundation)

18. What’s Needed? • “…Collaborative, action-oriented, real-world problem-solving was by far the best strategy to advance knowledge and learning.” (---reflecting on W. R. Harper’s beliefs about higher education in Benson, et. al. (2005): “Integrating a commitment to the public good into the institutional fabric.”

19. Developing Social Entrepreneurs • Teaching Business Valuation from a “Triple Bottom Line” perspective: 3 Ps + 1 • People • Planet • Profit AND……..Partnerships

20. A Model for Social Entrepreneurs Source: Alex Nichols, Oxford University, Skoll Centre

21. Leadership Qualities (LPI) • Leadership Practices • Challenge the Process • Inspire Shared Vision • Model the Way • Enable Others to Act • Encourage the Heart Source: Kouses & Posner, The Leadership Challenge

22. Visioning Empowering Energizing Designing and Aligning Rewarding and Feedback Team Building Outside Orientation Global Mindset Tenacity Emotional Intelligence Life Balance Resilience to Stress Leadership from a Global Perspective: GELI Source: DeVries, Global Executive Leadership Inventory

23. Where Can These Behaviors Be Developed? • Education • Experience • Practice • All focused on • People • Planet • Profit • Partnership

24. Leveraging Education • Experiential Learning: Service Learning and Internships • An approach to Mission, Purpose and Making Education Relevant • A Strategy for Community Engagement

25. What is Service Learning? Internships and Service Learning • SL and Social Entrepreneurial Internships provide for experiential learning that engages students in course-relevant, community-focused service/experience that connects the academic discipline to community action and social change • SL is intentional in meeting the needs of a community partner, as defined by that partner and, engaging the student in well-articulated service and/or internship experiences • SL and the well-developed internships is built on a reciprocity principle where students learn from their community partners • SL and Internships from a “social change” perspective enables students to take action and reflect; whereby action informs reflection and reflection encourages further action--developing leadership knowledge, skills, abilities (KSAs) needed by Social Entrepreneurs

26. Building Strategic Alliances • Faculty-Community Partner (F-C) • Faculty-Student (F-S) • Community Partner-Student (CP-S) • Student-Student (S-S) Source: Smith, D. Managing Expectations in Service Learning, 2010

27. Developing Social Entrepreneurial Leaders: Strategic Alliances Business e.g. VC S-P The Developing Leader (S) Global Partners S-P, S-S, Mentor (F-S)

28. The Mentor: University S-S, S-F, S-P • Service Learning • Internships

29. Global Partners • S-S, S-P, F-P

30. Vision: live in a sustainable world of peace and prosperity. Mission: drives large-scale change by investing in, connecting, and celebrating social entrepreneurs and other innovators dedicated to solving the world’s most pressing problems. Example: Funding Root Capital and the Starbucks connection http://www.skollfoundation.org/nytimes-fixes-filling-the-gap-between-farm-an d-fair-trade/#more-3679 Skoll Foundation

31. The HUB: “a platform for innovation “We need new models that blend social and environmental value with economic viability. The system is broken. Together we can build a better alternative. When faced with a task of this magnitude, why not assemble great talent into a common space? Together, we generate new ideas for change. Then we combine tools and resources to transform our ideas into action. We work collaboratively, sharing best practices to inspire and grow. We build and scale together, forming a values-driven, high-performing system that works toward a better world.”

32. Business: The VC Community • Good Capital investment firm that increases the flow of capital to innovative ventures creating market-based solutions to inequality and poverty….invests in the most promising social enterprises and give them the tools and guidance they need to succeed. In addition,Good Capital actively leads the development of the emerging social capital market. …shares a deep commitment to the creation of a new, I informed, and passionate world of investing that strategically moves more capital to good.

33. The Experiential Learning Model Applied to Strategic Alliances in Social Ventures Alliance Relationship Experiential Learning Cycle Observations and Reflections Testing implications of concepts in new situations Formation of abstract Concepts and Generalizations cultivates Creativity & Innovation

34. Implications and Discussion • Identifying opportunities for innovation that address social concerns • Enabling a generation to gain experience with social enterprises • Reframing how we define stakeholder interest and what it takes to maximize shareholder value • Incremental Change versus Game-Changing--Need this be an either/or proposition? • Questions?