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  • 1. Making a Difference BCG’s Partnerships and Projects for Social Impact
  • 2. The Boston Consulting Group (BCG) is a global manage- ment consulting firm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep in- sight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable compet- itive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 66 offices in 38 countries. For more infor- mation, please visit www.bcg.com.
  • 3. Making a Difference BCG’s Partnerships and Projects for Social Impact December 2008 bcg.com
  • 4. © The Boston Consulting Group, Inc. 2008. All rights reserved. For information or permission to reprint, please contact BCG at: E-mail: bcg-info@bcg.com Fax: +1 617 850 3901, attention BCG/Permissions Mail: BCG/Permissions The Boston Consulting Group, Inc. One Beacon Street Boston, MA 02108 USA
  • 5. Contents Personal Reflections on BCG’s Social Impact Work: A Message from the CEO 5 Shaping the Future—Together 6 BCG’s Approach to Achieving Social Impact 6 The Social Impact Practice Network 8 How to Get Involved 8 The Goals and Content of This Report 11 PART I: PARTNERING FOR SOCIAL IMPACT 13 Partnering Globally 15 Fighting Global Hunger 15 Advancing Children’s Well-Being 19 Improving Global Health 23 Partnering Locally 26 The Environment 26 The City of Chicago: Moving Toward a Greener Metropolis 26 Poverty and Hunger 28 Feeding America: Tackling Hunger in the United States 28 Public Health 30 DKMS: Aligning Patients and Donors in the Fight Against Leukemia 30 Education 32 U.S. Public Education: Transforming the Learning Experience 32 Instituto Ayrton Senna: Creating Opportunity in Brazil Through Education 35 Community and Economic Development 37 Schwab Foundation for Social Entrepreneurship: Enabling the Enablers 37 Arts and Culture 39 The Guy & Myriam Ullens Foundation: Building a Showcase for Chinese Contemporary Art 39 PART II: SHARING VIEWPOINTS 43 Tackling Malaria 45 Measuring Social Impact: Challenging but Critical 47 M  D 
  • 6. PART III: PROFILING BCG’S WORK FOR SOCIAL IMPACT 53 The Environment 55 Poverty and Hunger 57 Public Health 64 Education 70 Community and Economic Development 80 Arts and Culture 87 BCG Contributors 90 Index of Organizations 94 For More Information 96  T B C G
  • 7. Personal Reflections on BCG’s Social Impact Work A Message from the CEO The Boston Consulting Group has met with much success this year, despite a chal- lenging economic environment. We have expanded our consulting ranks, fostered deeper relationships with clients, and achieved revenue growth at rates that well exceed those of our competitors. But commercial success has never been BCG’s only goal. When our founder, Bruce Henderson, launched our firm more than 40 years ago, his ambition was to have a positive and lasting impact on society; indeed, he wanted to change the world. That aspiration remains strong in BCG today and is amply demonstrated in this report on our social impact activities. BCG clearly continues to make a genuine difference, both globally and on a local level. Today we are helping our partner organizations—which are addressing a wide array of critical challenges, such as hunger, infectious diseases, and illiteracy—be- come more effective, more efficient, and ultimately more capable of achieving their missions. It is gratifying to see the progress these organizations are making, and it is a privilege for BCG to play an active role in helping them achieve it. I thank these organizations for their trust and partnership. I also extend my thanks to the many BCG colleagues who have contributed to these efforts. Their passion, vision, and commitment to achieving real results are exciting and convey real hope. Their dedication is so important to our aspiration of helping to shape the future—together. I hope you enjoy reading this report and find it as compelling as I have. If you would like to learn more about the organizations we support or about BCG’s social impact work in general, including the establishment of our Social Impact Practice Network, please contact us at social_impact@bcg.com. Hans-Paul Bürkner President and CEO M  D 
  • 8. Shaping the Future— Together D espite rapid global economic develop- live. And we do so working together as a firm, because we ment, the world still faces a multitude of are convinced that we can achieve far more working col- challenges. Approximately 2.6 billion peo- lectively than any one of us could individually. ple, or 40 percent of the world’s popula- tion, exist on less than $2 a day, with We believe that the best way to achieve our objective is roughly 1 billion of them living on less than $1 a day. An by partnering with selected organizations in the social estimated 850 million people—more than the combined impact realm and, by applying our core consulting skills, populations of the United States, Canada, and the Euro- helping those organizations operate more effectively. We pean Union—live in “food insecure” households; that is, approach these relationships in precisely the same man- they do not get enough food to lead healthy, active lives. ner that we do our relationships with corporate clients: Meanwhile, diseases of the developing world continue to we collaborate closely with our partners to develop in- exact a terrible toll: malaria, for example, is estimated to novative ideas and approaches. And we are increasingly kill one African child every 30 seconds. focused on tracking our efforts to ensure that we are in- deed generating significant impact. (See Part II for some The challenges are not confined to developing countries. thoughts on measuring social impact.) Hunger, poverty, and a variety of other afflictions exist in many of the world’s wealthiest countries as well. In the We find that this approach not only maximizes our po- United States, for example, tential contribution, it also an estimated 35 million peo- challenges us intellectually ple, including about 12 mil- and helps us develop profes- lion children, live in food-in- sionally. Further, such part- secure households. nering fulfills us personally, as is evidenced by the large BCG’s involvement in the so- number of BCG staff—470 cial impact sphere is moti- employees, or approximately vated by such unacceptable 11 percent of our consulting truths. staff worldwide—who par- ticipated in our social impact BCG’s Approach projects over the past year. to Achieving And these numbers do not Social Impact include the employees who participate in the range of Through our social impact volunteer work discussed work, we strive to make a below in “Undertaking Ad- tangible and lasting contribu- ditional Social Impact Ac- tion to the world in which we A BCGer “on the ground” in western Africa. tivities.”  T B C G
  • 9. The approach also strengthens us as a professional firm people. To pursue these objectives, we have formed long- by helping us attract and retain the best talent. And we term relationships with a small number of leading organ- can engage with some of our corporate clients and soci- izations in their respective fields: the World Food Pro- etal leaders on another level—in the common pursuit of gramme, Save the Children, and the Bill & Melinda Gates serving the needs of society. Foundation, as well as several other organizations in the global health arena. Our social impact work spans six topic areas: the environ- ment, poverty and hunger, public health, education, com- Our local activities address a broad range of challenges munity and economic development, and arts and culture. facing the communities in which we live and do business. (See Exhibit 1.) We view these areas as reflecting a hier- Each BCG office determines the type of work it engages archy of needs, ranging from the most basic, broadly in. Recent examples of local social impact work include shared, immediate needs—that is, a sustainable environ- improving the supply chain of a network of food banks in ment and sufficient food—to the more social and experi- the United States; helping a national cancer society in ential needs of arts and culture. We engage in efforts that Denmark develop a fundraising strategy; working with a span these areas by working in partnerships with dedi- nonprofit to expand educational opportunities for Bra- cated social-sector organizations, through our philan- zil’s youth; and helping to launch a modern art museum thropic work with foundations, and through our corpo- in China. rate social responsibility (CSR) work with corporations. (We have not included descriptions of our CSR work in This report provides many examples of our global and this report, for confidentiality reasons.) In 2007, BCG com- local work. pleted approximately 140 assignments across these areas, working with more than 80 organizations around the Undertaking Additional Social Impact Activities. Al- world. though we engage in the social impact sphere primarily through our project work, BCG also contributes in many Partnering Globally and Locally. BCG engages in social other ways, including our volunteer efforts and board ser- impact initiatives on both global and local levels. Our vice with nonprofit organizations, community service, global efforts are guided by the United Nations Millen- charitable giving, and fundraising. Our Amsterdam and nium Development Goals, which establish specific targets Tokyo offices, for example, support the World Food Pro- for 2015 in the areas of combating poverty, disease, illit- gramme’s annual Walk the World event, a five-kilometer eracy, and other challenges facing the world’s poorest symbolic walk for the benefit of the organization’s school- Exhibit 1. BCG’s Social Impact Work Covers a Spectrum of Human Needs Arts and culture Community and economic development sm Co rp eri Education ora nte te olu soci dv Public health al r an esp opy on thr Poverty and hunger sib ilan ilit Ph y The environment Source: BCG’s Social Impact Practice Network. Members of BCG’s Amsterdam office support the World Food Programme’s Walk the World campaign. M  D 
  • 10. feeding projects. Our Toronto office closes one day each tackling environmental issues, drawing together expertise year to support the Fred Victor Centre, an organization and experience from our offices around the globe. By le- that helps the homeless, by serving food and conducting veraging best practices, promoting knowledge sharing, job interview workshops. Our Madrid office supports an and building a global support network, we aim to acceler- annual Special Olympics event for mentally handicapped ate and maximize the effectiveness of our firmwide envi- people. Our New York office participates in a mentoring ronmental efforts. program for local high-school students, coaching them on everything from academics to the challenges of everyday These examples represent a small sample of the types of life. And in Austria, Germany, Italy, Switzerland, and Sin- additional social impact activities in which BCG engages. gapore, approximately 250 BCGers each year support Most BCG offices are involved in a range of initiatives. business@school, an educational program launched by BCG partners, by volunteering as “school coaches” for ten The Social Impact Practice Network months. Beyond these examples, there are many more local activities taking place in our offices around the At BCG, we aim to be as effective and professional in world. our social impact work as we are in our commercial work. To facilitate this goal, we have launched the Social Impact Reflecting the growing importance of environmental is- Practice Network (SIPN) to organize and coordinate our sues, many BCG offices have also launched “BCG Green” social impact activities. The network has been designed initiatives, which focus on reducing the consumption of to be an integral part of BCG, allowing us to draw from natural resources and the production of waste, increasing our mainstream commercial know-how while simultane- recycling, and minimizing travel. Some examples: Within ously extending our expertise in the social impact sector. nine months of launching its BCG Green campaign, BCG’s London office reduced its paper consumption by nearly The SIPN functions on several levels. A small global team 50 percent and increased employee usage of the Eurostar coordinates and seeks to advance the social impact prac- train by 75 percent. Our Toronto office has reduced bot- tice. Then, in each BCG office, social impact nodes coor- tled-water consumption significantly by distributing reus- dinate our activities and serve as a gateway for participa- able bottles to staff, cutting consumption by 75 percent tion and communication about our efforts. Also, a during the first four weeks; it has also planted trees to number of topic interest groups and topic experts work offset some of the office’s carbon emissions. Our San to advance our knowledge and abilities across the topic Francisco office uses energy-efficient lighting and areas in which BCG is active. (See Exhibit 2.) employs a number of other innovative energy-saving How to Get Involved measures, including motion- activated hallway lights and BCG employees who wish automatic shutoff for light- to participate in our social ing, air conditioning, and impact work have several heating systems when the of- ways to do so. (See Exhibit fice is not in use. And our 3.) Project work is the prima- Chicago and Boston offices ry avenue for engaging in have both received the U.S. this work. Green Building Council’s Leadership in Environmental Our staffing process for so- Design (LEED) certification, cial impact work operates in signifying that they meet or the same manner as our exceed the council’s highest staffing process for corporate environmental standards. work. A global staffing team seeks to ensure an equal dis- BCG is also currently devel- tribution of opportunities oping a unified approach for BCGers work with local schoolchildren in Singapore. across all office systems.  T B C G
  • 11. Exhibit 2. BCG’s Social Impact Practice Network Coordinates Activities Around the World Topic Topic Topic expert expert expert Overall objectives ◊ Manage and coordinate our social Office A Local impact activities node ◊ Advance know-how and build our expertise in the social impact domain Region Office B Social Impact Local Practice Network node ◊ Increase and manage the participation of interested staff Local ◊ Improve internal communication Office C node and awareness of our social impact work Topic areas Source: BCG’s Social Impact Practice Network. Beyond project work, BCG offers several unique opportu- Exhibit 3. BCG Employees Can Participate nities for those seeking dedicated, longer commitments. in a Number of Ways Social impact secondments allow selected employees to work full-time with one of our global partners in social impact for six months to a year while remaining BCG employees. Positions vary depending on the needs of our client organizations. Recent secondments have included Social impact project work a position working as an international change manager for Save the Children’s Unified Presence initiative, and positions working as country coordinators in Mauritania and Laos for a UN-led partnership called REACH—End- Supplemental programs ing Child Hunger and Undernutrition. Secondment Social impact BCG also offers a social impact leave of absence, which al- program leave of absence lows employees to dedicate themselves to the social im- ◊ Work with one of pact work of their choice for up to 12 months. Recent ◊ Work with an organiza- BCG’s global tion of your own choice participants have worked in Latin America with Endeav- partners in social impact ◊ Duration of up to 12 or, an organization that seeks to transform the economies months of emerging markets by identifying and supporting “high- ◊ Duration of 6 to 12 months impact entrepreneurs,” and with the Center for Civil and Human Rights Partnership, which is advancing the devel- opment of a planned U.S. center for civil and human Volunteering and local programs rights in Atlanta. (For firsthand perspectives on BCG’s social impact secondments and leaves of absence, see the sidebars “Supporting Save the Children on Secondment” Source: BCG’s Social Impact Practice Network. and “Taking a Leave of Absence to Support Entrepre- neurs in Latin America.”) M  D 
  • 12. Supporting Save the Children on Secondment Olfert de Wit, a project leader in BCG’s The work itself is exhilarating and draws on a range of Amsterdam office, is on a 12-month skills—strategic, organizational, and interpersonal. I’m secondment with Save the Children, charged with bringing together a number of separate or- working as international change man- ganizations and helping them function as one; so far, I’ve ager for the organization’s Unified led unification efforts in Nicaragua, Colombia, and Viet- Presence initiative. He discusses the nam. The work is effectively a postmerger integration work, its satisfactions, and what moti- project, with all of its many facets, but it’s conducted on a vated him to pursue it. different scale and in an arena where results are meas- ured not in profitability but in lives touched. Working with Save the Children through BCG’s second- ment program has been an extraordinary experience. It’s been highly gratifying to see the difference we can I had been looking to broaden my professional horizons make. I’ve also found it enlightening to see how the skills with a different type of challenge and simultaneously we develop as consultants transfer to the nonprofit realm. engage in something targeting the greater good. This We really are bringing something special and valued to program has more than satisfied both objectives. Also, the table, regardless of where we apply it. being able to pursue these goals in a concentrated way and for an extended period is a very special and unique opportunity. I can really devote myself wholeheartedly to the task, and I will have the chance to see and experi- ence, firsthand, the fruits of my efforts. I’m very grateful to BCG. Taking a Leave of Absence to Support Entrepreneurs in Latin America Sylvain Franc de Ferriere is a consultant companies in mature economies, I’m helping entrepre- in BCG’s Paris office. He recently took a neurs launch and develop businesses in a much less sta- social impact leave of absence to spend ble environment. This focus draws on my existing skills a year working with Endeavor, an or- and knowledge base—and is broadening them as well, ganization that supports entrepreneurs particularly on the operational side. I’m oen called on in developing economies. for guidance on such decisions as whether to accept a par- ticular new client, whether to move a plant to a new site, As I write this, I’ve been working and whom to hire. The work is also very satisfying person- with Endeavor in Buenos Aires for six months. During that ally, since I feel I’m having a direct impact on an entrepre- time, I’ve had the opportunity to work on some very chal- neur’s business and, in the process, helping the develop- lenging cases in a range of sectors. In my first case, I ment of a country. I also really enjoy building close helped a medical-equipment manufacturer define its relationships with the management and founders of these strategic direction and, specifically, develop an entry strat- organizations. egy into the U.S. market. I also helped the organization secure $3 million in venture capital funding. In subse- I strongly recommend this experience to my fellow BCGers quent projects, I helped an Argentinean fashion designer for all the reasons I’ve noted above. Last but not least, it’s optimize its operations and redefine its strategic position- a great opportunity to spend time in some very vibrant ing, and I helped a soware company develop its interna- countries. tional growth strategy. I’ll be going to Chile in the next few months to support entrepreneurs there. This work has been rewarding on several levels. It’s ex- tended me professionally: rather than working with large  T B C G
  • 13. Volunteering and local programs present still another way Part III provides concise summaries of many of the social to get involved in social impact efforts. Many BCG offices impact projects that BCG engaged in from September have developed rich volunteer programs and offer other 2006 through December 2007. For reasons of client confi- locally relevant activities for interested staff. dentiality, we have not included summaries of all of the projects. We have grouped organizations by topic area The Goals and Content of This Report and listed them alphabetically, and we have specified the country or region targeted by each initiative. Organiza- Our objective in preparing this report is to provide a de- tions such as Save the Children, which span several topic tailed overview of our social impact efforts for our staff, areas, are listed in the one that we believe best captures those interested in joining BCG, and others interested in their overall mission. BCG’s activities. To facilitate an understanding of our work, we have included a broad range of materials and The report concludes with a list of all the BCG employees perspectives. who devoted time and effort to social impact projects during the selected period. We extend our thanks to them Part I provides an overview of our global efforts and high- for their contributions. lights some of the major global organizations we support. It also offers a representative sampling of our local work and highlights a cross-section of our local partners. B CG is committed to doing its part to make the Part II presents a closer, more detailed look at the intrica- world a better place, and we actively seek ways to cies of working in the social impact sphere. First, it increase our impact. If you have suggestions for features an interview with one of BCG’s social impact how we can accomplish this—or comments or questions clients, Regina Rabinovich, director of infectious diseases about the organizations or work described in this re- development for the Bill & Melinda Gates Foundation. port—please contact us at social_impact@bcg.com. Second, it highlights insights from a BCG project team that has tackled the challenge of measuring social impact. M  D 
  • 14.  T B C G
  • 15. PART I Partnering for Social Impact M  D 
  • 16.  T B C G
  • 17. Partnering Globally B CG’s global efforts, as noted, are guided by profound, ranging from stunted mental and physical de- the UN’s Millennium Development Goals, velopment among the very young to heightened vulner- which establish specific targets to be met by ability to disease and a dramatically shortened life span 2015 in combating poverty, disease, illitera- among adults. Indeed, The World Bank Group considers cy, and other challenges facing the world’s malnutrition to be the world’s most serious health prob- poorest people. Given this framework, our global work lem and the single biggest contributor to child mortality, focuses on the developing world and emphasizes three with roughly 3.5 million hungry children dying before the broad efforts: fighting poverty and hunger, advancing age of five each year. children’s well-being, and improving global health. These are long-term challenges by definition, requiring, we be- The World Food Programme (WFP) is one of the world’s lieve, long-term relationships with a few key players with largest humanitarian organizations and the UN’s front- which we have chosen to partner: the World Food Pro- line agency in its fight against hunger. Launched in 1962, gramme, Save the Children, the Bill & Melinda Gates WFP works in partnership with governments, nongovern- Foundation, and several other organizations in the global mental organizations, and other UN agencies to provide health arena. Organizations of this caliber, standing, and emergency relief and sustainable-development assistance size possess the scale and reach necessary to have a real to those in need. The organization’s reach is expansive: and lasting impact on problems of great magnitude, and WFP has operations in more than 80 countries, and it we feel privileged to have distributes food each year the opportunity to partner to nearly 90 million peo- with them. ple, two-thirds of whom are children. The following are detailed descriptions of a number of Increasing WFP’s effective- our recent efforts with these ness by even a small percent- organizations. A more com- age results in literally mil- prehensive list of brief sum- lions of additional mouths maries can be found in Part fed. With this goal in mind, III of this report. BCG began its relationship with WFP in 2003. Since that Fighting Global time, we have supported the Hunger organization in a range of ef- forts that encompass strate- Today, more than 850 mil- gy, governance, organization lion people—roughly one in design, and operational effi- eight—are undernourished. ciency. We have, for example, The World Food Programme brings food—and hope—to millions of children The effects of hunger are each year. helped WFP develop a new M  D 
  • 18. business model that significantly improves the organiza- tem accounted for a significant part of the problem. The tion’s ability to transform donated cash into food in the team also determined that all of the accounting adjust- hands of the hungry. We have also helped it upgrade its ments to hide the pilferage occurred at the “last mile”— supply-chain management and establish better measure- the point at which food is transferred to recipients. ment and forecasting systems; strike an optimal balance between centralized and decentralized local operations; Previous efforts to police the system had attempted to and create a global IT strategy. monitor the entire length of the supply chain—for ex- ample, by tracking delivery trucks using GPS beacons, Although much of our work with WFP has focused on setting up vigilance committees to monitor grain delivery, broad issues that affect the entire organization, several and using electronic weighbridges to automatically record projects have centered on “on the ground” operations truck weights. But these safeguards were all easily by- specific to countries or regions. passed by means of false accounting reconciliation. The team realized that it would be futile to attempt to moni- Improving Food Distribution. One recent example of tor, on an ongoing basis, a system that spanned thousands the second type of work was a project designed to help of miles and included more than 1 million operators. India’s government improve its food-distribution capa- bilities. India’s Public Distribution System (PDS), the Instead, the team determined that the most effective way world’s largest hunger-relief program, provides aid—in to address the problem would be to harness the power of the form of subsidized grain—to 400 million Indians who the system’s 400 million beneficiaries to make it difficult live below the poverty line. The program, which costs the or close to impossible for pilferers to exploit the account- government approximately $7 billion annually to admin- ing system. To achieve this goal, the team recommended ister, suffers from significant inefficiencies. In fact, in 2005 tightening the security of the card system by issuing bio- the Planning Commission of India estimated that a sig- metrics-based identification cards to all beneficiaries. Use nificant portion of the food earmarked for the poor never of these cards would eliminate “ghost” and duplicate us- reached its intended beneficiaries. Previous attempts to ers in the system as well as the possibility of “shadow improve the program had met with little success. ownership” by fair-price shop owners and those seeking to exploit the system. Then, to further strengthen security, BCG and WFP worked with two state governments in In- beneficiaries would be issued vouchers in the form of dia to determine where the problems lay. The program’s bar-coded coupons that they would exchange for grain. supply chain is relatively simple: The government pur- Furthermore, the system’s back-end infrastructure would chases grain from farmers at be modified so that the gov- government- determined ernment credited the owners prices and then stores it in of the fair-price shops on- federal and state warehouses. ly once it had validated From there, the grain is trans- the coupons. Taken togeth- ferred to local warehouses er, these measures would and eventually to roughly significantly change the 500,000 “fair price shops,” balance of power in favor of where qualifying families the genuine beneficiaries, and individuals present their enabling them to monitor ration cards and collect their and effectively control the allotment of grain every system. month. Aer a thorough as- sessment, the team deter- After gaining approval to mined that so-called leakage proceed with the plan from occurred across the supply one of the state governments chain for a variety of reasons, and other related stakehold- and pilferage by those in- India’s Public Distribution System, the world’s largest hunger-relief program, ers, the BCG-WFP team volved in the distribution sys- provides aid to 400 million people. launched a pilot program in  T B C G
  • 19. Rayagada, a rural district of roughly 1 million people in perts from different thematic areas, identified 11 specific the state of Orissa. The district is one of the poorest, most interventions in the areas of food security, health, and food-insecure regions in the country—and, for that rea- behavioral changes. Examples include the treatment of son, a perfect test case for the recommendations. Imple- severely malnourished children; the distribution of de- mentation, including the collection of biometric data worming tablets, vitamins, and minerals; and the promo- from every citizen across the district’s more than 2,500 tion of breastfeeding. The interventions are scientifically villages, has been a major undertaking on a range of proven, are relatively easy to implement, and typically fronts—raising technical, operational, and policy chal- yield rapid and sustainable results—especially when de- lenges. But the team is driving the process forward and livered in concert. Having identified these interventions, believes that the new system will be up and running at the partners turned their attention to developing a plan the beginning of 2009. to help countries lead, scale up, and implement this mul- tipronged approach through coordinated efforts by the Once the system is operational, the team expects that the various players. right quantities of food will reach the intended beneficia- ries and that the changes will result in substantial savings BCG and REACH focused initially on two countries, Mau- in the food subsidy program, making it possible for the ritania and Niger, in order to better understand the needs government to expand the entitlement, include the eli- and opportunities and to determine how an effective col- gible beneficiaries who are currently excluded, or do laborative process among the various aid entities might both. If the program delivers the intended results, the work in practice. Aer thorough research, the team dis- central government will consider scaling it up and intro- cussed potential approaches with representatives of the ducing it in several states across the country. The im- respective local governments, UN organizations, donor proved governance of the scheme will be as effective as organizations, and key nongovernmental organizations. providing additional resources, and it will help in safe- The team was encouraged to find that strong consensus guarding food-insecure people from rising food prices. existed among stakeholders around the need for greater collaboration. It also discovered that the stakeholders Focusing on Child Hunger and Undernutrition. An- shared a common belief that the initiative could provide other recent example of BCG’s work on the ground with a powerful platform for raising awareness of the so-called WFP is the organization’s REACH—Ending Child Hunger chronic emergency of child hunger and undernutrition and Undernutrition partnership, which was established and for pushing the topic higher on the political agenda jointly by WFP, the World Health Organization, the Food at both the country and global levels. and Agriculture Organiza- tion of the United Nations Through discussions with all (FAO), and Unicef. The initia- the stakeholders, the team tive is an effort to escalate also identified a strong busi- the fight against child hunger ness logic for achieving en- and undernutrition in indi- hanced collaboration by vidual countries. In the proc- identifying the many specific ess, the partners hope to ways in which the organiza- make a significant contribu- tions could collaborate in or- tion to realizing the UN’s der to tap their existing capa- Millennium Development bilities. The team identified goal of halving the number particularly promising op- of underweight children by portunities for reducing one 2015 and ending child hun- of the largest expenses asso- ger within one generation. ciated with health interven- tions: the final delivery of To advance the effort , those interventions to their REACH’s partners, in col- beneficiaries. Because each laboration with health ex- The BCG and World Food Programme team working together in Niger. aid organization usually had M  D 
  • 20. its own delivery system, it was determined that addition- decided to advance the REACH partnership with two full- al interventions could be delivered through existing chan- fledged one-year pilot programs: one in Mauritania and nels at relatively low incremental cost. When WFP, for one in Laos. BCG continues to support the pilots with two example, distributed emergency food aid through specific secondees, who serve as facilitators of the local partner- feeding centers, it could also hand out chlorine tablets to ships and help drive the coordination process toward con- kill bacteria in household water supplies and advise moth- crete action. ers on feeding their children. Such synergies, which had rarely been acted on, posed huge opportunities. A Rome-based BCG team also supports the efforts and is studying successful operational practices globally to in- The team realized that the true challenge, of course, was form and support the pilot projects and the related ac- formalizing this cooperation and institutionalizing a proc- tivities. Drawing on the experience gained through the ess for coordinating and planning at the country level— pilots, REACH will, as its next step, roll out activities in in a way that involved all the key players. To this end, the additional countries. (For insight into a related effort— team developed various organizational options and spe- one geared toward maximizing the effectiveness of UN cific recommendations for a governance structure, a steer- agencies through more effective teaming—see the side- ing group, lead roles, and a technical task force. In Mauri- bar “One UN: Achieving More Together.”) tania the government has already begun to implement the team’s proposal. As part of that implementation, the The problem of global hunger remains daunting. Indeed, government has formed a new coordination board for WFP calculates that, given current trends, the number of nutrition, which includes all key ministers and is chaired the chronically hungry is growing by 4 million per year. by the prime minister. WFP is committed, however, to doing everything it can to contribute to halting and ultimately reversing that slide. On the basis of the promising country studies led by the We are proud to have the opportunity to play a support- team, the heads of the agencies involved in this effort ing role in that endeavor. (For a perspective from WFP, One UN: Achieving More Together When BCG recently under- to their operations, one that would optimize the collective took an effort with the Unit- ability to deliver aid and improve the lives of the benefi- ed Nations Development ciaries who receive this aid. Operations Coordination Of- fice (DOCO), the concept of BCG helped DOCO develop a comprehensive framework maximizing organizational that would help bring the agencies together as “one UN.” impact by improving the co- The team identified an overarching model for organiza- ordination of efforts was central to the initiative. DOCO is tion design that would facilitate better overall teaming, the umbrella organization that coordinates the activities supplementing it with customized recommendations for of all of the roughly 30 UN development agencies, includ- operations in each country. Putting the model into prac- ing the World Food Programme. tice, the team supported pilot initiatives in eight coun- tries—Albania, Cape Verde, Mozambique, Pakistan, Historically, the individual agencies had functioned as Rwanda, Tanzania, Uruguay, and Vietnam—paying par- largely independent entities, each with its own brand, ticular attention to measuring impact and managing board of directors, operations, business processes, sourc- change. BCG and DOCO also helped the agencies and es of funding, and accountability. A consensus formed country teams change the funding structure in these among the members that this structure was less than ef- countries. To date, the results achieved by the country ficient on many levels. Mandates oen overlapped, do- teams working together include significant increases in nors had to navigate multiple interfaces and messaging, donor funds—for example, Tanzania saw a 50 percent in- and efforts were oen uncoordinated and duplicated. crease in funding over the previous year—and, simultane- DOCO was commissioned by the heads of these agencies ously, the ability to deliver more development assistance to develop a more unified, cross-organizational approach per dollar received.  T B C G
  • 21. Partnering with BCG in the Struggle Against Hunger Sarah Laughton joined the World tervention. The effort quickly evolved into finding ways to Food Programme (WFP) in 1997 and work with other organizations in order to develop better is currently a program advisor in the responses to the HIV/AIDS crisis that is devastating interagency partnership of REACH— many communities in southern Africa. In each assign- Ending Child Hunger and Undernutri- ment, I have found it fascinating to get off the plane and tion, in which WFP is participating as step not only into a completely different social and cul- a lead partner. She discusses her expe- tural context but into a new and evolving work context riences with the organization and as well. what it has been like working with BCG. For about the last four years, I have been working on a Ever since I was young, I have had a strong interest in range of initiatives from WFP’s headquarters in Rome. making a meaningful contribution toward improving Currently, I’m a program advisor assigned to the REACH other people’s lives. I have also had an interest in travel- partnership, and it is within this context that I have been ing and experiencing circumstances that would make introduced to BCG. I have found the partnership very ex- me live a bit more intensely. Joining WFP has allowed citing. BCG has great expertise, is very results oriented, me to satisfy all those interests simultaneously and has and also knows what it takes for organizations to change. been quite fulfilling in other ways as well. Its experience in managing change is so interesting. The work has been challenging from the outset. My first BCG’s understanding of processes, in particular—how to three years were spent in Sierra Leone and Liberia. Si- make things happen as efficiently as possible and what erra Leone was in the midst of a civil war when I arrived; needs to be delivered at each stage—has been very valu- Liberia was also in a very transitional state, emerging able to us. The interaction with BCG has also been re- from its own civil war. My work in both countries was warding to me personally, as it has afforded me a chance thus centered on emergency relief and helping commu- to learn a new approach to tackling problems that I can nities recover from the effects of conflict, destruction, apply to my daily work. I have also had a lot of fun work- and displacement. ing with my colleagues from BCG. Next, I was stationed in Nepal for three years, where the I am convinced that we have an opportunity with REACH focus was on development in rural communities, mostly to make a real difference in children’s lives, and I am in the remote hill and mountain areas of the country. looking forward to continuing to work with BCG on this While there, I sometimes had to walk for days to get to very important effort. project sites. Following that assignment, I worked in Swaziland for 15 months, engaged in a drought relief in- see the sidebar “Partnering with BCG in the Struggle Save the Children, the leading global advocate for chil- Against Hunger.”) dren’s rights outside the United Nations, has set itself the bold aim of addressing all these issues simultaneously. Advancing Children’s Well-Being Remarkably, it is succeeding. The world’s disadvantaged children face a wide array of The first Save the Children organization was established challenges. More than 350 million suffer from hunger or in England shortly aer World War I for the purpose of malnutrition, and 5 million die annually as a conse- aiding survivors in war-ravaged Vienna. But Save the quence. Another 5 million children die from preventable Children has evolved from this single, targeted initiative diseases such as malaria and tuberculosis. More than 72 into a global entity composed of 27 national member or- million lack access to basic education, with nearly 37 mil- ganizations that reach more than 50 million children in lion of those children living in countries affected by over 120 countries. Save the Children’s network operates armed conflict. Poverty, natural disasters, homelessness, on multiple fronts, including emergency relief and advo- and domestic abuse exact a further toll. cacy. The organization’s recent campaigns hint at the M  D 
  • 22. scope and scale of its work. It provided shelter, food, clean member organizations, acquired knowledge and exper- water, and medical care to victims of the Indian Ocean tise have oen been significantly underleveraged, putting tsunami, reaching 276,000 children and their families in Save the Children at risk of “reinventing the wheel.” Indonesia alone. It also supplied shelter, food, clean wa- ter, medical care, education, and sanitation services aer Recognizing the need for a solution, several Save the Chil- Cyclone Nargis, reaching more than 500,000 people in dren member organizations, led by Save the Children US Myanmar in just the first few months aer the disaster. and Save the Children UK, enlisted BCG’s help in devel- And the organization has launched a sweeping Rewrite oping a comprehensive knowledge-management strategy, the Future campaign, which seeks to help the millions of one that would align the organization’s capabilities with children who live in conflict-affected areas gain access to its needs. The first phase of the effort focused on fact a quality education. finding and diagnosing the challenge. The team surveyed more than 650 employees of Save the Children working BCG has supported Save the Children for nearly 20 years. in 35 countries, with the dual goal of determining their Most of our work has been with the network’s individual information needs and understanding the existing prac- member organizations, including Save the Children Chi- tices in knowledge management across the organi- na, Save the Children Japan, Save the Children Mexico, zation. Save the Children Norway, and Save the Children Spain. The projects have spanned a diverse mix of topics, from Among the survey’s key findings was a very strong de- fundraising to organization. Three years ago, we formal- mand for access to written content such as documented ized a close partnership with the Save the Children Alli- and proven lessons and best practices. The survey also ance, and since then we have also engaged in broader uncovered an even greater demand among employees for initiatives designed to enhance the effectiveness of the identification of and access to topic experts—individuals entire Save the Children network. Recent examples have within the Save the Children network who had specific included an effort to optimize knowledge management experience in a given field and could share it directly. within the network and a corporate-fundraising strategy. From these findings, the team concluded that three mutu- ally reinforcing tools would be needed: an online staff Optimizing Knowledge Management. Maximizing the directory that identified topic experts; an online “library” return on knowledge management poses a particular that warehoused and facilitated easy access to written challenge for Save the Children because the group’s content; and a telephone-accessible “knowledge naviga- member organizations have operated largely autono- tor” function that could assist Save the Children employ- mously over its history. This ees who worked in the field type of structure, which has and lacked Internet access. evolved over decades of op- eration, has its advantages, With a general plan in place, but they can come at a cost the second phase of the ef- to overall efficiency. In some fort focused on implement- countries, for example, Save ing these initiatives in a spe- the Children might have sev- cific market . The team eral member organizations determined that Bangladesh, conducting operations, each a country in which Save the with its own priorities, office, Children was particularly ac- staff, and system. This can tive, would serve as an ideal sometimes lead to duplicate site for the pilot program— efforts and a failure to maxi- although some country-spe- mize potential synergies. cific fine-tuning would be Knowledge management of- necessary for the platform to fers a case in point: when work optimally. Accordingly, there has been limited shar- the team met with more than ing of information among The BCG team meets with Save the Children staff in Bangladesh. 200 members of the five Save  T B C G
  • 23. the Children member organizations with operations in mentation of the plan entailed significant cooperation Bangladesh to determine their specific needs and priori- and ownership. ties. In an attempt to gauge best practices, the team also interviewed and studied leading nongovernmental organ- The finished product was a robust, shared knowledge- izations that maintained a presence in the country. management platform. It was well received by the five Drawing on the information they uncovered, the team member organizations, with broad agreement that it was developed a customized approach to knowledge manage- delivering on its key objectives: faster, more effective or- ment that would meet the needs of all stakeholders in ganizational learning that resulted in improved produc- Bangladesh. tivity and resource deployment; and a stronger sense of community and shared purpose among the member or- One specific challenge that the team needed to address ganizations. The program’s success has prompted these was that of Internet access. Much of the country lacked and other member organizations to consider duplicating connectivity, rendering the advantages of online tools the effort in other countries. Toward this end, the team moot for many workers in the field. To mitigate this chal- has followed up on its initial effort by designing a global lenge and supplement the telephone-based tool, the team implementation plan for broader rollout. created versions of the staff directory that could be print- ed on demand and distributed through local offices, and If the program is adopted more widely within the organi- it also found ways for workers in the field to access the zation, as expected, Save the Children will continue to Internet through certain village “hub” locations. Finally, enhance its ability to have an impact on the lives of chil- and critically, the team worked hard to win buy-in from dren in need. (For a perspective on the project, see the leaders of the five member organizations, because imple- sidebar “Supporting Change in Bangladesh.”) Supporting Change in Bangladesh André Véissid, a project leader in also showed me, in very real terms, just how severe the BCG’s New York offi ce, helped drive need for assistance is in certain parts of the world. The the effort to optimize knowledge man- sheer magnitude of the issues Save the Children needs agement in Bangladesh for Save the to address in Bangladesh is overwhelming—from peri- Children. He discusses the project and odic catastrophic storms and resulting flooding to ever- the perspective he gained from it. present poverty. Working directly with the groups ad- dressing these issues firsthand was critical to identifying This was my first experience work- the steps needed both to drive greater impact and to en- ing with a nonprofit organization, and it was quite differ- sure that ownership of our recommended initiatives re- ent from any project work I had previously been involved mained in place long aer our work was completed. with. It was eye opening to discover what the nonprofit world really needs in terms of consulting work—and Finally, working in Bangladesh stretched me intellectu- equally enlightening to see the degree of impact we ally and afforded me opportunities for professional could have almost immediately. The client valued, in growth as well. We had to create innovative solutions to particular, the rigorous analytical framework and disci- some unique and challenging problems, such as the lack pline we brought to the task as well as our ability to bring of Internet access in much of the country and a cultural people together and get them aligned. These areas were resistance to reaching out to colleagues who were not where BCG added the greatest value throughout the known personally. Issues we might take for granted in project and were critical to getting the buy-in and sup- our more standard project work had to be reexamined in port needed to drive success. this situation, constantly challenging us to come up with the right solutions. Working on the ground in Bangladesh was an incredible way to see just how the work we were doing in New York In retrospect, this effort was surely the most rewarding could have a direct, measurable impact on the lives of project I have yet to be involved with. It was an experi- children in villages half a world away. The experience ence I certainly will never forget. M  D 
  • 24. Developing a Corporate-Fundraising Strategy. In an- thorough understanding of the opportunities. Drawing on other recent broad-based effort, BCG supported Save the all this insight, BCG and Save the Children worked jointly Children in developing a global strategy for corporate to develop a strategic plan, one that articulated both a fundraising. A consensus had formed among the member compelling value proposition for corporations and an ap- organizations that Save the Children as a whole had a proach for delivering on it for potential corporate part- significant opportunity to expand its share of corporate ners. The strategic plan includes goals, values, priorities, funding—but how best to seize that opportunity re- and implementation steps, and it has been endorsed by mained a question. all Save the Children member organizations. The team’s diagnosis of the organization’s practices and A key step among the plan’s recommendations was that the corporate-fundraising landscape in general revealed Save the Children create a global corporate-partnership several things. First, Save the Children had a positive, team that would manage global relationships. This would widely recognized brand. Also, other leading nongovern- allow the organization to pursue partnerships strategi- mental organizations had forged strong relationships cally and from a global perspective, with one central with the corporate sector and, as a result, had driven up point of contact and with consistent branding, messaging, corporate contributions significantly. In addition, many and positioning. A second key recommendation was that companies were actively seeking such partnerships, with Save the Children develop mechanisms (such as shared an emphasis on fewer, deeper relationships. Clearly, databases) to foster collaboration and sharing of best therefore, the larger environment was supportive. practices among member organizations. Other recom- mendations centered on the specifics of resources, staff- At the same time, however, Save the Children faced a ing, and processes. number of challenges. Other nongovernmental organiza- tions had clearer branding and positioning. Many also The program is under way, and early results are positive. had a single, cohesive, global approach to corporate fund- Save the Children expects that the strategy will translate raising and dedicated resources supporting their cam- into a significant boost to corporate contributions and, in paigns. Save the Children’s efforts, in contrast, were large- anticipation, has set a very aggressive five-year target. ly independent, uncoordinated initiatives from its The generation of this new global revenue will allow Save different member organizations. Save the Children had the Children to reach millions more children worldwide. neither an overarching scheme or message nor global re- sponsibility and authority assigned to any single entity. In addition, the effects of scaling up the fundraising ca- Finally, other nongovern- pacity across all the partici- mental organizations were pating member organizations generally better at demon- will have a highly valuable strating impact and at corpo- impact—both on domestic rate-style reporting—capa- revenue levels and in the cre- bilities that companies were ation of more integrated cor- increasingly emphasizing as porate partnerships. The ef- selection criteria. fort also reinforces the brand from an external perspective The team conducted further and has strengthened ties study, including interviews among the member organi- with experts to determine zations. best practices and with cor- porations to find out their By working to expand its ca- specific wants and needs. We pabilities through projects actively drew upon our net- such as these, Save the Chil- work of contacts to maxi- dren stands to reach ever- mize the amount of corpo- larger numbers of children Each year, Save the Children reaches more than 50 million children in more rate input and gain a than 120 countries. Save the Children and Panos photo by Frederic Courbet. over time and also to have a  T B C G
  • 25. greater impact on them. We look forward to continuing ment and delivery of new malaria drugs. At the time of to support the organization in this endeavor. its inception, in 1999, MMV filled a major void. The devel- opment of new antimalarials was at a standstill, with Improving Global Health only four drugs approved in the previous 25 years—a pe- riod during which more than 1,400 new drugs were ap- In most developed countries, infectious diseases such as proved for other diseases. Since then, MMV has managed pneumonia, tuberculosis, rotavirus, and malaria are well to reinvigorate malaria drug research, building a pipeline contained. But these diseases exact a heavy toll on the of more than 30 drug candidates, including 3 that are developing world, claiming millions of lives annually. scheduled to be launched in the next two years. As the global leader in antimalarial R&D, MMV has raised more Malaria is one of the most devastating and tenacious of than $300 million to support its efforts. these scourges. The disease, which has plagued humans for thousands of years, was brought partially under con- BCG’s relationship with MMV dates back to MMV’s trol in many regions of the world by the early 1960s. But founding, when we helped develop the organization’s a confluence of factors, both natural and man-made, has original charter and business plan. Since then, we led to its resurgence. Annually, malaria now kills approx- have supported MMV in a variety of activities. This past imately 1 million to 2 million people, more than 75 per- year, we developed a comprehensive strategic and cent of whom are African children under the age of five. financial plan to help the organization prepare for the There are 300 million to 500 million new incidences of challenges that lie before it over the next five years. the disease each year. As much as half of the world’s population is at risk of eventually contracting malaria. One challenge facing MMV is ensuring access to the anti- The economic burden of the disease is also vast: malaria malarial drugs that are developed. We identified and pri- is estimated to cost Africa alone roughly $12 billion a oritized key actions that MMV could take to optimize the year in lost productivity. distribution and uptake of its new antimalarials and to ensure that they reach those who need them most. A As part of its broad portfolio of efforts related to global second challenge has been building an early-stage pipe- health, BCG has devoted considerable attention to ma- line of drugs to prepare for the inevitable emergence of laria. Our efforts have taken the form of three main drug resistance. We projected the size, composition, and streams: supporting organizations and partnerships price tag of the pipeline that MMV would have to develop such as the Malaria Vaccine Initiative, which develop in order to meet the global need for new malaria treat- and launch new antimalarial ments over the next decade. products; helping the Bill & Finally, we brought these ele- Melinda Gates Foundation ments together with a strate- define its role and strategy gic vision and financial plan in the fight against the dis- that would strengthen ease; and helping to improve MMV’s appeal to the donor global coordination among community. those who fight against ma- laria on the ground in coun- Working with the Gates tries where the disease is Foundation and the Inno- endemic. vative Vector Control Con- sortium. We also focused Working with Medicines our efforts on product devel- for Malaria Venture. One opment and distribution in of the organizations we sup- another recent project: sup- port is Medicines for Malaria porting the Bill & Melinda Venture (MMV), a public- Gates Foundation and the In- private partnership that In India, the arsenal against infectious diseases includes pesticides purchased novative Vector Control Con- seeks to drive the develop- by consumers at small village kiosks. sortium (IVCC), a research M  D 
  • 26. group that works to develop new tools to control the the current annual global demand for PHPPs of approxi- transmission of insect-borne diseases. In the past, public- mately $750 million was roughly double previous esti- health pesticide products (PHPPs)—most of which were mates. This amount is large enough to generate some developed by the agricultural industry for agricultural additional interest in PHPP development but insufficient purposes and subsequently repurposed for public to prompt changes in the investment plans of agricultur- health—have been effective against malaria. But the al companies. PHPPs that are currently available have several limita- tions: resistance to them is increasing; some usage proce- The team also determined that individuals failed to use dures are expensive to implement; and a number of coun- some pesticide products because of practical consider- tries have banned DDT, a particularly effective agent. ations. Many people, for example, reported that they found it too time-consuming and invasive to remove all Simultaneously, the gains made by modern agriculture— of their belongings in order to have the inside of their in particular, the advancement of genetically modified homes sprayed. Others said that they found sleeping un- crops—have le agricultural companies less compelled to der treated bed nets too hot. Hence, effective tools were develop new pesticides, thereby reducing the potential accessible but not fully utilized. Interestingly, the team supply of new PHPPs. Compounding matters, the per- also observed that people were buying readily available ceived limited demand for dedicated PHPPs (those used consumer products, such as insect repellents and aero- solely for public health) has provided little incentive to sols, with their own money as alternatives to free PHPPs. other potential producers and investors. The team recommended investing in research to under- stand the efficacy of such products for disease control. Seeking to rekindle the development of PHPPs, the Gates (For a perspective on the project, see the sidebar “Creat- Foundation and IVCC wanted to create a market fact ing Transparency for Decision Makers.”) base, with the goal of providing clarity for public- and private-sector decision mak- The Gates Foundation and ers who were interested in IVCC plan to use the insights investing in, developing, or generated by the team’s purchasing these products. work to guide their future in- The fact base would quantify vestments in this area. The the current size of the team also shared the results market; capture a better un- with both the public-health derstanding of the needs, community and the agricul- behaviors, and decision-mak- tural industry—and interest ing processes of suppliers, was strong. buyers, and other stakehold- ers; and analyze the process Malaria remains a critical and hurdles associated with threat to much of the world’s getting a new product to population—and it will take market. a concentrated and sustained effort to eliminate this threat. Through primary research in Indeed, in recent work sup- seven countries—Brazil, porting the Gates Founda- Mexico, India, Indonesia, Ni- tion in formulating its overall geria, Tanzania, and Zam- strategy against malaria, bia—and interviews with BCG calculated that it would global suppliers and decision require an annual invest- makers, BCG helped the ment of almost $7 billion to Gates Foundation and IVCC control the disease at peak create and analyze the data. cost—fully $5 billion more Notably, the team found that A woman in India discusses the types of pesticides she uses. than the world is currently  T B C G
  • 27. investing. So there is much ground to cover. (We are cur- tively support its pursuit. Eliminating malaria, according rently working with the global malaria community to to Colin Boyle, a partner and managing director at BCG, develop a global business plan to advance the battle would rank among the world’s great accomplishments— against the disease.) on a par with putting the first man on the moon, sequenc- ing the human genome, developing the printing press, The Gates Foundation’s stated long-term goal of eradicat- and eradicating smallpox. “And, assuming the effort is ing the disease will, of course, take proportionately more successful, it will be a great point of pride for BCG to have effort. But we believe that with the right tools, this target played its part,” he says. is ultimately within reach, and we will continue to ac- Creating Transparency for Decision Makers Sara Staats, a project leader in BCG’s turally. We encountered some skepticism at first among Boston office, led an analysis of the some of the people we were working with, many of whom pesticide market for the Bill & Melin- were brilliant academics. But by the end, they valued us da Gates Foundation and the Innova- and our contribution highly. tive Vector Control Consortium. She discusses the work and the value that This experience made me realize what a unique skill set BCG brought to the effort. we bring to the table. I was also struck by the synergies between our regular client work and our social impact ini- For me, one of the highlights of this project was the chance tiatives. Our work in the pharmaceutical industry, in this to visit many of the countries affected by malaria and to case, gave us insight into the R&D process used for pesti- see, firsthand, the nature of the challenges we were con- cides. And our network gave us the opportunity to speak fronting. Being on the ground allowed us to see through with all the major agrochemical suppliers and other rele- the eyes of the afflicted and really understand what’s vant private-sector companies so that we could gain a full keeping them from using the antimalarial drugs or pesti- set of perspectives. cides that are readily available. We also gained a real sense of what it means to be affected by the disease. In sum, this was a highly rewarding and affirming experi- ence. I would recommend that others get involved in these Looking back on the project as a whole, it was amazing for types of challenges. There is a great payoff in realizing me to see the contribution BCG could make by drawing on that you really can have a meaningful impact. our core ability to think strategically, logically, and struc- M  D 
  • 28. Partnering Locally B CG’s local initiatives are the domain of the The City of Chicago: Moving Toward firm’s individual offices. Each office chooses a Greener Metropolis the topics it wants to focus on and the or- Like virtually all of the world’s major cities, Chicago gen- ganizations with which it wishes to partner. erates a vast amount of waste. Indeed, a recent study de- Some of these partnerships are long term; termined that the city produces in excess of 5.5 million others, depending on the nature of the work, are more tons annually—more than ten pounds per resident every finite in duration. BCG’s local initiatives allow our firm to day. Chicago has committed itself to addressing the prob- have a direct impact on the communities in which we lem and addressing it aggressively. In fact, as part of May- maintain a presence. or Richard M. Daley’s goal of making Chicago “the green- est city in America,” the city has initiated work on a Zero Below we profile in greater detail a local project from Waste strategy to dramatically reduce the volume of each of the topic areas covered by our social impact work. waste that is generated and not repurposed. A more comprehensive list of brief summaries can be found in Part III of this report. BCG helped develop the underlying strategy for the initia- tive, working with Chicago’s Department of Environment The Environment and a number of other stakeholders, including members of various city departments, state and local agencies, non- Concern for the environment profit organizations, and the was once seen by some to be local community. The first a luxury afforded only to de- step in the process was gain- veloped countries. But today, ing an understanding of Chi- clearly it is not. Clean water cago’s waste-management and air—and the safeguard- situation. Drawing on work ing of forests, biodiversity, that the city had previously and ecosystems—are essen- done, the team found that tial for the preservation of less than 40 percent of the our planet. They are also waste being generated in prerequisites for sustainable Chicago was being diverted social and economic devel- productively—that is, recy- opment. cled or reused—with the re- mainder ultimately ending BCG engages in a diverse mix up in area landfills. The team of environmental efforts. Our determined that a confluence work with the City of Chicago of factors was limiting the is one recent example of our rate of productive diversion, efforts in this area. The BCG team visits the so-called green roof atop Chicago’s City Hall. but it also found that if those  T B C G
  • 29. obstacles could be overcome, the potential to drive the Next, across all of the waste streams, BCG identified op- rate sharply higher was considerable. portunities for the city to play a role in developing—or facilitating the private development of—necessary incen- The challenges—logistical, regulatory, and mostly eco- tives and infrastructure. Regularly evaluating emerging nomic—defied easy solutions, however. The cost of de- technologies such as biomass gasification (a clean dis- positing waste at landfills, for example, was much lower posal process that turns food and landscape waste into a in the Chicago area (at approximately $40 per ton) than gas that could be used as fuel) and helping private parties in some other parts of the country, where prices exceeded navigate the political process for getting recycling permits $100 per ton. This reality limited the financial incentive are just two examples of roles for the city that could po- to find alternatives to landfill disposal. The city also tentially have a huge impact. Finally, a few of the strate- lacked critical infrastructure; in particular, there were few gies included selective use of mandates where necessary, recyclables-processing centers, and most of them were far but they were limited to situations in which reasonable from the city. These logistics drove up transportation infrastructure and economic incentives were already in costs to the point where recycling in aggregate became place. In some situations, mandates could quickly break cost ineffective. Compounding matters, Chicago’s Depart- stalemates between key stakeholders, creating mutually ment of Streets and Sanitation handled only 20 percent beneficial results. of the city’s waste. The remaining 80 percent was col- lected by private contractors, which were driven by their Implementation is in its very early stages, but the city has own economic interests. Solutions would need to com- already made progress on several fronts. Early wins in- bine legal requirements and financial incentives. Aer conducting further analysis, polling more than 80 Turning Chicago Green stakeholders and outside experts, and drawing on the les- sons and best practices from several other cities that had Shoshannah Lenski, a consultant launched similar “green” efforts, the team proposed strat- in BCG’s Chicago office, was an as- egies that collectively would address the major challeng- sociate when she worked on the es and set Chicago on a path toward Zero Waste. Because City of Chicago’s Zero Waste initia- the team determined that mandates alone would fail to tive. She discusses her interest in the topic and what she learned spur and sustain the necessary levels of participation in from the project. the effort, particular emphasis was placed on ensuring that the targeted outcomes were economically viable for Environmental issues have always been a passion of the city’s residents and businesses. (For more about this mine, so it was incredibly rewarding to have the op- work, see the sidebar “Turning Chicago Green.”) portunity to participate in the Zero Waste effort. The project was particularly meaningful because I live in The proposed strategies touched upon four major waste Chicago and I will be directly affected by the work. The streams: food and landscape waste; household paper, building in which I live, for example, does not current- ly collect recyclables. It’s exciting to realize that this plastic, glass, and metal; construction materials; and will soon change—and to know that I played a part in household hazardous waste. Given the different materi- making it happen. als, as well as very different collection mechanisms, each stream needed to be evaluated separately and unique It’s also exciting to see the impact that the project has strategies proposed. However, a few common threads had on our office’s own “green” efforts—it’s really helped tie the strategies together. made us want to reduce our own environmental foot- print that much more. We’ve recently started a new First, most of the strategies included educational compo- recycling program and switched to more environmen- tally friendly light bulbs, and we are evaluating about nents to help interested citizens reduce their waste, such a dozen other “greening” initiatives, such as using car as facilitating composting education programs for resi- services that utilize hybrid vehicles. It makes me proud dents, helping bring together networks of interested busi- that BCG is committed on all levels to having a tangi- nesses, or expanding outreach about the city’s facility for ble impact on the environment. collecting household hazardous waste. M  D 
  • 30. clude the launch of recycling efforts in several neighbor- the numbers will only rise, potentially dramatically, in hoods. The city is also actively reviewing options for mak- the near to medium term. ing the waste collection process more efficient through franchising, which could lead to a variety of economic, Feeding America, the country’s largest hunger-relief or- environmental, and quality-of-life benefits. ganization, is a potent bulwark against the problem. Through its network of more than 200 member food A bold move toward Zero Waste would truly transform banks and food-rescue organizations, Feeding America Chicago’s environmental profile, reducing not only land secures and distributes more than 2 billion pounds of and water pollution but also dramatically cutting green- food and grocery products annually, feeding more than house gas emissions. City officials are confident that by 25 million Americans, including more than 9 million chil- acting aggressively and utilizing creative strategies, Chi- dren and nearly 3 million seniors. The organization sup- cago can meet its objective. We share that belief and feel ports approximately 50,000 local charitable agencies that privileged to have helped the city take its first steps to- collectively operate more than 94,000 programs, includ- ward that end. ing food pantries, soup kitchens, emergency shelters, and aerschool programs. Feeding America is committed, in Poverty and Hunger short, to getting food to those in need as efficiently as possible through whatever channels it can. Poverty and hunger are present not just in developing countries but in developed ones as well. BCG partners BCG has supported Feeding America on several major with organizations that address these issues on both lev- initiatives over the past two years. The first initiative was els. Here we highlight our work with Feeding America. the development of a five-year strategic plan that would This organization, formerly known as America’s Second address all aspects of the organization’s operations and Harvest—The Nation’s Food Bank Network, works to help Feeding America expand its reach and impact in the combat hunger in the United States. face of declining food donations. Feeding America: Tackling Hunger The plan sought to address a confluence of factors that in the United States were driving down donations: improved manufacturing Chronic hunger is a problem typically associated with de- practices, which have led to fewer dented, damaged, and veloping countries. Yet it exists in developed ones as well, “off spec” goods that were typically donated; the growth including those blessed with a superabundance of re- of discount food stores, which has given manufacturers a sources. The United States is forum for selling goods they perhaps the foremost exam- would otherwise have donat- ple. According to a recent ed; and falling food contribu- study by the U.S. Depart- tions from federal programs ment of Agriculture, more owing to rising commodity than 35 million Americans, prices. including about 12 million children, live in food-inse- In this effort, we helped cure households and there- Feeding America identify 16 fore lack consistent access to critical initiatives in five stra- enough food to lead a tegic areas: the sourcing of healthy, active life. The af- food and funds, distribution, fected include not just those memb er segmentation, on the lowest rungs of the branding, and the so-called economic ladder but work- last mile in the delivery ing-class families as well. The chain of food to recipients. combination of a slowing We also helped lay the economy and volatile food BCG Chicago staff members volunteer at a food bank, one of Feeding Ameri- groundwork for successful and fuel prices suggests that ca’s member organizations. implementation of the stra-  T B C G
  • 31. tegic plan. Once fully instituted, the plan is expected this system could generate potential annual savings on to translate into an additional $25 million in annual fuel and freight as high as $5 million. Feeding America is fundraising for Feeding America—a 70 percent increase. implementing the full suite of recommended supply-chain The plan should also allow Feeding America to distribute improvements, and the early results are promising. an additional 800 million pounds of food to its net- work and feed an additional 3.2 million hungry people BCG also recently supported Feeding America on a each year. branding initiative that, like the project described above, was also an offshoot of our initial strategic work. (For a A follow-on project focused on Feeding America’s supply consultant’s perspective on the branding effort, see the chain. Believing that it could achieve greater efficiency in sidebar “Countering Hunger Through Brand Building.”) sourcing and distribution, the organization asked BCG to help it identify and capture the opportunities. Aer study- Countering Hunger Through Brand ing Feeding America’s practices and those of its network, Building BCG confirmed that sizable potential synergies did in- deed exist. Regarding sourcing, BCG noted that when Emily Wren, a consultant in BCG’s Feeding America’s member organizations bought food to Atlanta office, was an associate supplement donated food, they typically did so indepen- when she worked on the branding dently, on an ad hoc basis, and in small quantities. As a initiative for Feeding America. She result, members paid premiums as high as 20 percent to discusses her experience. wholesalers and retailers. I have long had a desire to give back to society, and I founded a BCG determined that if member food banks and food- nonprofit organization in college in an effort to do so. rescue organizations could coordinate their activities, Although the work was very rewarding, I felt I could pool their purchasing power, and purchase food strategi- potentially have more impact through business. I be- cally by, for example, committing to specific volumes and lieve strongly in the role that corporations can play in delivery dates, they could purchase directly from manu- improving society by “growing the pie” and creating facturers in many categories and save considerable sums jobs. So I decided to join BCG to strengthen my busi- ness skills. of money. Indeed, by fully leveraging the scale of its net- work in this manner, Feeding America could potentially When I first joined the Feeding America project, I save as much as $11 million a year—the equivalent of thought the work might be less rigorous than the cor- 176 million additional meals. BCG also determined, how- porate projects I had been involved in. But I was quite ever, that Feeding America and its members would need impressed to find that BCG approaches social impact to make both organizational and operational changes to work in precisely the same manner that it tackles work enable such strategic food purchasing. They would have in the corporate sector: with just as much rigor and to create a single point of contact at the national level to possibly even more passion. develop and maintain relationships with manufacturers. As the project progressed, I realized that BCG’s ap- They would also need to modify their storage and distri- proach to this type of work unites my desires to im- bution capabilities, because manufacturers typically ship prove the world and to use my full range of abilities to products in full truckloads while most of Feeding Ameri- do so. In this project, by applying our unique skill sets ca’s members lack the capacity to order a full truckload and capabilities to the task, we helped Feeding Amer- of any one item. ica develop a much stronger brand. Over time, this change will multiply the impact of each and every one BCG recommended that the members form food-sharing of the organization’s employees, resulting in far great- er aid delivered to those in need. cooperatives (FSCs) led by large member organizations with centrally located warehouses. To minimize shipping Looking back, not only was this case the most fulfilling costs, the FSCs would accept and store bulk deliveries experience I’ve had with BCG so far, but it also marked from manufacturers; products could then be combined in a paradigm shi in my view of how BCG can make the smaller quantities and delivered in fully loaded trucks to world a better place. individual member organizations. BCG determined that M  D 
  • 32. Analysis and polling had determined that the public’s our involvement in this sector, we highlight our work awareness of the organization was limited: only 40 per- with DKMS. cent of those surveyed were familiar with America’s Sec- ond Harvest. Additionally, few people were aware of the DKMS: Aligning Patients and Donors organization’s support of many local food banks, because in the Fight Against Leukemia fewer than 25 percent of those food banks advertised the Leukemia—cancer of the body’s blood-forming tissues— fact or incorporated the America’s Second Harvest name is a devastating disease, claiming one life approximately into their own. BCG was enlisted to help strengthen the every ten minutes. It is oen associated with the young brand and increase the organization’s appeal to donors. and is, in fact, the most common cancer among children. But leukemia is primarily a disease of maturity, affecting Through qualitative and quantitative research, including approximately ten times as many adults as children and workshops with consumers, BCG and the organization adolescents. gained a broad understanding of the public’s views and, in particular, those of targeted segments. From that work, One of the most effective treatments for the disease is the team developed an optimal positioning strategy and bone-marrow transplantation, but the logistics are daunt- messaging to support it. The effort resulted directly in the ing because a close tissue match is critical. Only one-third organization’s changing its name—a move that is expect- of patients find a compatible donor among family mem- ed to significantly strengthen its brand and, in the proc- bers, and the odds of finding a match among strangers ess, substantially boost the national organization’s fund- are small, ranging from 1 in 20,000 to 1 in several million. raising ability, potentially by as much as $12 million by Compounding the difficulty is the lack of transparency: 2012. The work should also increase the reach and effec- the right donor might be within close proximity of a given tiveness of Feeding America’s member organizations, patient, but unless the donor can be identified, the pa- inspire network and staff confidence, and raise the pub- tient’s need will go unfilled. lic’s awareness of domestic hunger. To help facilitate donor matches, BCG alumnus Peter Harf, Hunger in the United States is largely “under the radar,” together with another physician, Gerhard Ehninger, found- but the problem is very real. Feeding America remains ed DKMS in Germany in 1991. DKMS stands for Deutsche committed to being a major part of the solution, and we Knochenmarkspenderdatei—the German Bone Marrow look forward to continuing to support the organization in Donor Center. In 1990, Harf had launched an extensive its efforts. campaign to find a matching donor for his wife, Mechtild, who was suffering from acute Public Health leukemia. Mechtild was also the sister of BCG alumnus In addition to supporting or- Heiner Rutt. At the time, ganizations that address the there was no national donor health issues facing develop- center in Germany, and the ing countries, we work with country had fewer than 3,000 those focused on the health registered donors. Deter- concerns of the developed mined to spare other families world. Our recent efforts in a similar struggle, Harf and the latter realm span a vari- Ehninger launched DKMS. ety of challenges, such as Their aim was twofold: to in- helping a breast-cancer- crease the number of bone- advocacy organization with marrow donors and facilitate its strategic planning and the matching of those donors working with an innovative with patients in need. nonprofit research center seeking to bring drugs to The center grew quickly, reg- DKMS is the world’s largest marrow-donor center, with more than 1.7 million clinical trial. To illustrate registered donors globally. Photo by DKMS. istering more than 68,000  T B C G
  • 33. potential donors in its first year. DKMS has subsequently bone-marrow drive, with DKMS’s help, upon learning expanded its reach beyond Germany and today is the that her niece Frederike had been diagnosed with leuke- world’s largest marrow-donor center, with more than 1.7 mia. What started as a small appeal for help motivated million registered donors globally—accounting for ap- about 280 BCG employees to register as potential donors. proximately 13 percent of the worldwide total. To date, (Fortunately, Frederike did not ultimately need a trans- the center has facilitated more than 14,000 transplants. plant. She recovered from her illness and is doing well Says Claudia Rutt, DKMS’s CEO since its launch, “Our today.) mission is to save lives, and I’m happy to say that we’re making great strides toward that goal.” DKMS has made a material difference to thousands of individuals and their families, and it aspires to achieve BCG has supported the organization since its inception. more. It seeks to recruit more donors, with its next target In its initial stage, we helped it create Germany’s first- being the 2 million mark; generate more awareness ever countrywide donor database. We also helped the among potential beneficiaries; enable more transplants; center develop the process for staging donor drives— and ultimately save more lives. It is a world-class organi- DKMS’s primary means of recruiting donors. zation. Antonella Mei-Pochtler, a BCG senior partner and DKMS does not initiate and run the majority of donor Bringing a Business Framework drives; rather, most drives are undertaken by individuals to Medicine or small groups. Typically the drives have been run by relatives or friends of leukemia patients, but corporations BCG alumnus Alexander Schmidt have increasingly taken part, providing a sizable source joined DKMS in 2002. Aer he of new donors. DKMS’s main contribution is to provide completed his medical studies, guidance on how to organize the drives. It does so through he worked at BCG from 1998 personal consultation and by providing a detailed “how to 2002. to” guide, which BCG helped develop. The guide covers My initial exposure to DKMS all practical aspects of the drives, ranging from the num- was through BCG’s job data- ber of medical staff required to ways in which to generate base, where DKMS had posted a position. What in- media attention. trigued me about the role at DKMS was the idea that I could simultaneously leverage my consulting skills BCG has also worked with DKMS on a number of strate- and medical background. I was eventually hired as ad- gic issues. In 2001, we helped it develop a growth strategy visor to the CEO—more or less a one-person corpo- focused on internationalization. On the basis of that rate-development department. I worked in this role for about 18 months, and now I work as DKMS’s chief work, in 2004 Peter Harf and his daughter Katharina medical officer, responsible for leading about 50 em- founded DKMS Americas, headquartered in New York. Its ployees. establishment diversified and deepened the organiza- tion’s international donor base, particularly in the United DKMS has provided me with precisely what I was look- States. BCG continues to support DKMS with regard to ing for. It has given me an opportunity to deploy quite international expansion, among other topics. In 2008, we a bit of the tool kit I acquired at BCG, including prob- helped the organization perform a detailed market anal- lem-solving and even slide-writing skills. DKMS is also ysis of two European countries. a very well run and efficient organization, and we reach our targets through regular business princi- ples—a factor that was very important to me when I Beyond our project work, we have a number of strong joined the organization. We are, in fact, run like a for- personal ties to DKMS. Several BCG alumni, compelled profit organization, with the important difference that by the commitment and impact of DKMS, have joined the our profit is measured not in financial terms but rather organization as employees. (For a perspective on making in donors found and lives saved. This approach is very the transition, see the sidebar “Bringing a Business motivating to everyone working at DKMS, including Framework to Medicine.”) Our people have also, in sev- me, because it provides a direct sense that our work is eral instances, served as DKMS “clients.” In 2004, for ex- advancing a good cause. ample, BCG employee Michaele Völler initiated her own M  D 
  • 34. managing director who orchestrates much of BCG’s in- ucation is also a field to which we believe our skill sets volvement with DKMS, says that it is “perhaps the best- and approaches—analysis, problem solving, change man- run nonprofit organization I have ever encountered.” It agement, and consensus building—are particularly well also serves as a prime example of what can happen when suited. Over the last several years, we have engaged in a committed individual identifies a problem and resolves efforts to improve prekindergarten through twelh-grade to fix it. We look forward to continuing to support DKMS education in the United States at both state and district and helping it achieve its aims. levels; we have also engaged in special initiatives that address specific issues across states and districts. Three Education recent cases are representative. Education is the means by which individuals develop and Developing a Transformation Plan in Dallas. The first societies tap inherent talent and capabilities. A country’s is our support for the development of a transformation education system is critical for supplying its labor mar- plan for the Dallas Independent School District (ISD). kets and ultimately drives its economic success and com- Dallas ISD is the nation’s twelh-largest school district, petitiveness. educating more than 160,000 children annually. Like many large urban school systems, Dallas ISD was BCG strives to improve educational opportunities around experiencing disappointing student outcomes and per- the globe. Recent examples of our involvement are our formance. Less than 60 percent of entering freshmen efforts in the United States and our work in Brazil with graduated from high school; and by their midtwenties, Instituto Ayrton Senna. only 5 percent of the district’s students had earned a degree from a two- or four-year institution of higher U.S. Public Education: Transforming education. the Learning Experience Public education in the United States is at a crossroads. Seeking to turn things around, Dallas ISD’s new superin- While the demand for an educated work force has never tendent, Michael Hinojosa, committed to developing and been greater, many U.S. students are performing at levels implementing a transformation plan that would ensure far below basic proficiency, particularly in such critical that all of the district’s students graduated and were pre- areas as mathematics and science. Worse, a disquieting pared for college and the work force. To support the ef- number of students—roughly 30 percent—eventually fort, he formed the Dallas Achieves Commission, a body drop out and never complete high school. Outcomes are of stakeholders consisting of city and state officials, phi- particularly weak for inner- lanthropists, and leaders city schools and minority from business, higher educa- and low-income students tion, and civic and religious generally, but the problem is organizations. The commis- truly national in scope. The sion, in turn, asked BCG to quality-of-life implications help the district conceive and for many of these youths, implement the plan. and the broader economic implications for the country BCG worked in partnership as a whole, are troubling. with the district and the Clearly, this is a system in broader community to de- need of improvement. velop the plan. They began developing an analytic fact BCG has committed itself base and polling teachers, strongly to enhancing U.S. students, administrators, and public education. We deem external stakeholders to so- the effectiveness of this sec- licit opinions and ideas and tor of society of vital impor- A strong public-education system will be critical to the U.S. economy in the gain consensus. The team tance on a host of levels. Ed- years ahead. also studied other educa-  T B C G
  • 35. tional efforts around the country to determine best “Supporting Urban Communities Through Education practices and identify promising approaches. From this Reform.”) work, the team developed a comprehensive transforma- tion plan for the district, one designed not only to The district’s transformation will not happen overnight, improve the district’s profile but also to make Dallas and Hinojosa’s goal of winning the Broad Prize for Urban ISD one of the strongest urban school systems in the Education—awarded to the nation’s most improved dis- country. trict—by 2010 is an ambitious one. But we are confident, on the basis of the commitment and progress made to The plan consisted of more than 100 recommendations date, that the district will meet its objectives—to the con- encompassing literally all facets of the education experi- siderable benefit of Dallas’s youth. ence, from the curriculum and teacher recruitment and training to performance measurement. The district’s Building Capacity to Expand Support to Schools in board of directors approved the plan in its totality; im- North Carolina. A second representative effort is our plementation, which BCG is supporting, is now in its ini- support of the North Carolina Department of Public In- tial stages. Early wins include a reorganization of the struction (DPI), the body charged with implementing that district’s central office, a significant reduction in student- state’s public-school laws and the state board of educa- teacher ratios at the secondary-school level, the creation tion’s policies and procedures. According to its charter, of an incentive program to attract high-quality teachers DPI also offers instructional, financial, technological, and to the district’s lowest-performing schools, and the devel- personnel support to all public-school systems in the opment of performance “scorecards” for schools. (For a state. The challenge confronting DPI was that demand for consultant’s perspective on the initiative, see the sidebar its support services was accelerating much faster than the Supporting Urban Communities Through Education Reform Jamal Powell, a principal in BCG’s At- ronment. When the Dallas project started, I actively sought lanta office, led the firm’s efforts in an to get involved, because it seemed like the perfect oppor- educational initiative with the Dallas tunity to pursue my aim. Achieves Commission. He was also in- volved in BCG’s education work in New As we delved into the project, we realized that the high Orleans following Hurricane Katrina. school system really wasn’t working for many students in Here Jamal discusses the appeal of the Dallas: it failed to engage them on a level they found in- project with the Dallas Achieves Com- teresting. It was very rewarding for us to realize that it was mission and the lessons he learned from the experience. possible to help change the system and make it work. It was also very inspiring for me, personally, to see the level Since my high-school days, I have had a strong interest in of commitment and energy that BCG brought to the ef- helping urban communities. Coming from a diverse back- fort. It was remarkable to work with a team of folks so ground and having grown up in an urban community, I dedicated to making a difference. know firsthand the many challenges these communities face. Education is surely one of the greatest challenges— With people so passionate about their work, my job as a one that at the same time has great potential to bring leader was less about managing the “micro” processes about real transformation. than about harnessing and channeling that passion so that we could have maximum impact. The public high school that I attended was, in fact, a fairly good school, but many schools in the surrounding areas To have the opportunity to be involved in efforts like this were not particularly strong. When I discovered that some one, and to see the genuine difference we can make, families in the community had actually changed address- makes me even more engaged and excited to be at BCG. I es to try to get their children into my school, I concluded think our social impact work also shows other people and that something had to be done. There must be a way, I companies the contributions that a top-tier consulting thought, to provide quality education in every urban envi- firm can make in this field. M  D 
  • 36. agency’s capacity to deliver them. The number of schools Launching a Public-Private Partnership to Advance that were underperforming was growing rapidly; DPI was Math and Science Education. A third representative ef- able to provide direct assistance to less than 10 percent of fort is our support of the launch of the National Math them. The agency sought a means of significantly expand- and Science Initiative (NMSI), a public-private partner- ing its reach and effectiveness while keeping a rein on ship established to address what many business and gov- resources. It enlisted BCG’s support. ernment leaders consider one of the country’s greatest economic threats: the poor performance of U.S. students BCG and DPI conducted a rigorous, fact-based assess- in mathematics and science and the shrinking percentage ment of DPI’s assistance model, collecting input from of graduates who enter those fields. The data to support more than 700 stakeholders. They also conducted a thor- those concerns are striking. For example, less than one- ough study of other states’ assistance programs to deter- third of the country’s fourth- and eighth-grade students mine best practices. The team then outlined a framework perform at levels deemed proficient in mathematics; and for a new model, one that would provide broad, compre- only 15 percent of U.S. undergraduate degrees are in hensive support to the state’s districts and individual natural sciences or engineering, compared with more schools. It also assessed the feasibility of implementing than 50 percent for Singapore, China, and France. the required changes; developed a road map for imple- menting those changes; and launched the implemen- NMSI—whose major donors are Exxon Mobil Corpora- tation. tion, the Bill & Melinda Gates Foundation, and the Mi- chael & Susan Dell Foundation—seeks to tackle the prob- The model the team developed focuses primarily on lem by implementing recommendations from a report building district capacity to support schools; provides issued by the National Academies, Rising Above the Gath- more customized, needs-specific assistance than was pro- ering Storm: Energizing and Employing America for a Bright- vided through previous support models; supports all of er Economic Future. Among the report’s recommended the state’s roughly 2,400 schools rather than just a small actions: annually recruit and train 10,000 new science subset of schools; is sustainable and scalable; and is also and mathematics teachers by awarding four-year scholar- proactive and preventive rather than exclusively reactive ships; strengthen the skills of 250,000 teachers through and corrective. Another key feature of the model is that training and education programs at summer institutes, in it rigorously monitors and measures program perfor- master’s programs, and in Advanced Placement (AP) and mance and DPI’s own service quality and internal proc- International Baccalaureate (IB) training programs; and esses. This feature has instilled and fosters a culture of increase the number of high school students who pass AP continuous improvement and IB science and mathe- within the organization. matics courses so that a larg- er pipeline of students are To support the new strategy, prepared to enter college and BCG helped DPI reorganize graduate with a degree in itself. The more streamlined science, engineering, or structure accelerates deci- mathematics. NMSI’s objec- sion making, institutionalizes tive is to advance these meas- cross-functional collabora- ures and ultimately scale tion, empowers staff, and in- them nationwide. creases DPI’s agility and cus- tomer fo cus. DPI has BCG’s role in this effort was emerged a much stronger to support the start-up of organization—one much NMSI. The work included de- more capable of achieving signing a business model, a its mandates—and North grant selection process, and Carolina’s schools and stu- launch and rollout plans; de- dents stand to benefit pro- Strengthening students’ performance in math and science is one of the great- termining financial and or- portionately. est and most immediate challenges. ganizational requirements;  T B C G
  • 37. and supporting the initial fundraising drive. NMSI’s emerging economies, China has an illiteracy rate of ap- launch was successful, and the organization has already proximately 9 percent, and in India the rate is nearly 40 secured $140 million in pledged funding. NMSI has also percent. rolled out its first round of programs in 15 states, awarded grants to nonprofit organizations in 7 states in order to In certain parts of Brazil—especially the north and north- help institute AP training and incentive programs, and east, where poverty is at its worst—the illiteracy rate is as awarded grants to 13 institutions of higher education for high as 25 percent. School dropout rates are high and the replication of UTeach—a program that aims to re- closely track poverty levels: children in the bottom cruit, develop, and retain teachers in math, science, and quartile of income complete an average of only four years computer science. In short, NMSI has hit the ground run- of school, whereas children in the top quartile of income ning and is already making a difference. complete an average of more than ten, according to Worldfund. A strong public-education system and a well-educated work force will be critical as the United States seeks to Even when Brazilian children stay in school, outcomes maintain its leadership role in the global economy in the are oen disappointing. In 2006, for example, more than years ahead. We look forward to continuing to play a role 55 percent of Brazil’s 15-year-olds tested below critical in achieving those ends. levels in reading, and more than 70 percent tested below critical levels in math, according to the OECD’s Pro- Instituto Ayrton Senna: Creating gramme for International Student Assessment. Simply Opportunity in Brazil Through Education put, much of Brazil’s youth is failing to receive the educa- Among developing countries, Brazil is a powerhouse. tion it needs in order to participate in today’s economy. With an estimated GDP of $1.7 trillion in 2006 based on purchasing-power parity, Brazil boasts one of the world’s Instituto Ayrton Senna (IAS) is committed to bridging this ten largest economies, strong annual growth in recent gap. The organization was launched in 1994 following the years, and a GDP per capita that is much higher than that death of its namesake, Ayrton Senna, a three-time For- of India or China. Yet there is a wide income gap between mula One world-championship racing driver who was the country’s rich and poor, and commensurate social killed in an accident. Senna had contributed generously inequality as reflected in Brazil’s relatively low ranking to children’s charities, particularly those targeting chil- on the UN’s Human Development Index and other social dren from low-income families. In his lifetime, the insti- and economic gauges. While economic growth is helping tute was conceived as a means of furthering his vision. to close the gap, much still needs to be done. IAS concentrates specifically on education, which it con- A key part of the problem siders to be the key means has been the country’s his- for transforming children’s toric shortfall in education. potential into competencies. According to the United Na- Working in partnership with tions Educational, Scientific governments at the munici- and Cultural Organization pal, state, and federal levels, (Unesco), Brazil’s overall il- as well as nongovernmental literacy rate is approximately organizations, schools, and 12 percent—considerably universities, IAS implements higher than the illiteracy its offerings throughout the rates of roughly 1 percent re- country. Its roster of pro- ported by the developed- grams is diverse, ranging country members of the Or- from straightforward literacy ganisation for Economic campaigns to innovative Ed- Co-operation and Develop- In parts of Brazil, the illiteracy rate is as high as 25 percent. IAS photo by ucation Through Sport and ment (OECD). In other Roberto Fulgêncio. Education Through Art pro- M  D 
  • 38. grams. The organization’s reach is expansive: since its age, coherence with IAS’s overall fundraising strategy, founding, IAS has helped shape the lives of nearly 9 mil- feasibility of implementation, and potential return. We lion children, and in 2008 alone it reached 1.5 million also helped IAS identify optimal payment formats for children. It has invested approximately $80 million in targeted donors and develop loyalty programs that would children’s causes over the last ten years and was awarded foster long-term relationships. Unesco’s prestigious Chair in Education and Human De- velopment in 2004. Recommendations for donor development included ideas both for cultivating totally new relationships and for bet- BCG has supported IAS since 2005. We have helped the ter leveraging existing opportunities. In the latter catego- organization with a number of initiatives, including the ry, BCG noted that IAS delivered more than 50 lectures a development of corporate-specific and integrated strate- year at companies, universities, and schools but that the gic fundraising plans; the revamping of its licensing mod- organization never actively solicited support from the el, which IAS uses to generate revenues through the li- audiences. Taking such a step would be an easy, low-cost censing of Ayrton Senna’s brand and image; and a way to reach individuals who would likely be sympathet- repositioning of its brand portfolio consisting of its four ic to the organization. BCG also noted that there was con- key brands. Our latest effort was to help IAS create a siderable opportunity for IAS to tap the ranks of existing fundraising strategy that targets individual donors. IAS networks of supporters and their families, such as ac- and BCG determined that establishing this channel could countants, lawyers, and the spouses of CEOs who actively prove significant to the organization, since the new source supported IAS. By providing such people with marketing of funds would both expand cash flow in absolute terms, materials that they could distribute to interested parties, thus helping to ensure IAS’s long-term viability, and miti- IAS could easily reach a group of likely donors. gate the volatility that accompanied corporate dona- tions. The final phase of the project was to design an imple- mentation plan. BCG helped IAS map out all phases of The first phase of the work was an assessment of the in- that plan, including timelines and responsibilities. We dividual-donor market and IAS’s positioning within it. also helped identify the organizational, infrastructure, Through consumer research and detailed interviews with and partnership needs of IAS and define its goals and more than 600 potential donors, we helped IAS segment metrics. Finally, we helped IAS put the plan into practice the market and identify and understand potential do- by launching two pilot efforts. Those efforts are under nors’ preferences and behaviors regarding donations. The way, and the early results are encouraging. team also interviewed sev- eral Brazilian nongovern- All told, IAS expects the new mental organizations to de- individual-donor fundraising termine best practices in campaign to translate into a individual-donor fundrais- significant rise in annual ing. Finally, the team as- funds over the next few sessed IAS’s image and po- years—potentially enough tential appeal to individual to make it possible to teach donors. an additional 30,000 chil- dren to read. We look for- During the second phase, the ward to continuing to sup- team developed and vetted port the organization as it strategic options. BCG helped brings positive change to IAS identify possible ap- Brazil’s youth. (For a consul- proaches to donor targeting tant’s view of IAS and and messaging, then its critical role in the coun- screened those approaches try, see the sidebar “Driving against such criteria as fit E du ca t i o n Re fo r m i n Instituto Ayrton Senna believes that education is the key means for turning with the organization’s im- children’s potential into competencies. IAS photo by Michele Zollini. Brazil.”)  T B C G
  • 39. impact solutions to many of society’s problems. These Driving Education Reform in Brazil individuals usually operate in areas where traditional companies aren’t lured by sufficient profits or where de- Michele Pikman, a project leader mand isn’t met by the government. Perhaps the most in BCG’s São Paulo office, worked important role model for social entrepreneurs is Muham- on a project with the Instituto Ayr- mad Yunus—a Nobel Prize winner and the founder of ton Senna (IAS). She discusses the Grameen Bank. Yunus recognized the connection be- what it was like working with the tween poverty and low credit ratings and in 1976 devel- organization and the critical im- oped a microfinance concept that has become hugely portance of education-related ef- successful and has been replicated throughout the forts in Brazil. world. It’s been very rewarding, particularly as a mother-to- be, to be involved in an education-focused initiative— Like all entrepreneurs, social entrepreneurs have a vari- and specifically to work with IAS. Illiteracy and the ety of prerequisites for becoming viable, including access quality of education are big issues in Brazil: there are to resources, a support network, and a certain level some 14-year-old children in the eighth grade, for ex- of publicity. Fortunately, a number of entities—individu- ample, who can’t read and understand a newspaper als, foundations, charitable organizations, and civic- article. This problem has systemic effects, one of minded corporations—recognize the unique value that which is a large gap between the haves and the have- nots in Brazilian society. Education is obviously one of these entrepreneurs provide and are helping them on a the main levers that can make a difference. It was a number of levels. One of the major players taking great feeling, therefore, to be involved in this project these steps is the Schwab Foundation for Social Entrepre- and to be able to work toward a better future for the neurship. country’s society, in general, and for my own child, specifically. The Schwab Foundation was established in 1998 by Klaus Schwab, the founder of the World Economic Forum, and Working with IAS has also been a great experience in his wife, Hilde. The organization commenced operations and of itself. The organization thinks about scale, about the long term, and about changing millions of in 2000. Having long believed that the most significant children’s lives. The people there are doers, and they social changes are driven by individuals and small groups, implement BCG’s recommendations at an incredible the couple launched the foundation to identify grassroots pace. In addition, I find the degree of impact that IAS leaders, provide them with a platform, and raise public is having in Brazil inspiring. It’s also very inspiring to awareness of their efforts. me that the CEO and the COO of IAS are women. The foundation’s primary vehicle for achieving these Community and Economic Development goals is its Social Entrepreneur of the Year contests, which are held in 30 countries worldwide. Contest winners do Community and economic development efforts are vital not receive monetary awards. Instead, they gain critical for increasing the standard of living in communities, re- access to and support from a large network consisting gions, and ultimately nations as a whole. BCG partners of other social entrepreneurs, business leaders, the foun- with governments, foundations, and nonprofit organiza- dation, and members of the World Economic Forum. tions around the world on such initiatives, working to They also receive broad media exposure, which enhances enhance local markets, create jobs, and encourage entre- global awareness of their activities and can help attract preneurship. Our work with the Schwab Foundation for investors. Social Entrepreneurship is illustrative of our efforts. BCG has worked with the Schwab Foundation for the Schwab Foundation for Social past several years. Our primary function has been to help Entrepreneurship: Enabling the Enablers in identifying, selecting, and highlighting leading social Social entrepreneurs—dynamic individuals who launch entrepreneurs through the organization’s annual con- enterprises targeting social change rather than profits— tests. Our first such engagement with Schwab was in Ger- have been responsible for a range of innovative, high- many in 2005; by 2007, we were supporting contests not M  D 
  • 40. only in Germany but in Canada, France, Great Britain, The Wellcome organization was developed in 2002 to fill Hungary, and Switzerland as well. We have provided as- the void. It offers affordable on-demand assistance to sistance on a variety of fronts, searching for suitable so- women and families for up to a year aer a child’s birth; cial entrepreneurs, screening and vetting candidates, pre- its primary clientele are single mothers and families with paring the juries that judge the competition’s final stage, three or more children. The staff at Wellcome consists of working with the media to promote the events, and help- volunteers—most of them mothers with grown chil- ing to organize the award ceremonies. (For a consultant’s dren—whom the organization recruits and trains. These perspective on BCG’s role, see the sidebar “Showcasing individuals can quickly defuse stressful situations, bene- Social Entrepreneurs.”) fiting both children and their families. The value of these contests, as well as the overall value of At the end of 2007, Wellcome supported approximately the Schwab Foundation’s work, are reflected in a sam- 1,200 families. It seeks to cover all of Germany by 2011 pling of 2007 contest winners. Germany’s winner, Rose and is facilitating that expansion by means of a novel Volz-Schmidt, founded Wellcome, an organization that adaptation of the franchising concept to the social impact helps mothers and families with newborns. The need for sphere. Not only did Wellcome’s growth prospects receive such help is acute in Germany today, with the country a substantial boost from the publicity surrounding the facing declining birth rates, particularly among well-edu- Social Entrepreneur of the Year awards ceremony, but cated women. A contributing factor cited by many wom- Volz-Schmidt was also recognized publicly for her work en is the lack of a supporting infrastructure: as society by German chancellor Angela Merkel, who has become has become increasingly mobile, fewer women have fam- an active supporter of Wellcome. ilies living nearby, and there is a shortage of daycare cen- ters. The lack of a supportive environment can lead to Hungary’s winner in 2007, Péter Orbán, is tackling a dif- overwhelming stress for new mothers, causing depression ferent challenge: securing employment for his country’s and even child neglect. disabled. His organization, Napra Forgó Kht (Sunflower Showcasing Social Entrepreneurs Anne-Marie Deans, a consultant in motivated by our visit, because it meant recognition for BCG’s Cologne office, joined the firm their hard work and the opportunity to have that work aer earning her PhD in malaria re- analyzed rigorously. For the finalists, of course, there is an search. Working with the Schwab Foun- even bigger impact, as the awards ceremony in Berlin dation for Social Entrepreneurship was translated into media exposure and the opportunity to her first assignment at BCG. network with businesspeople, CEOs, politicians, and oth- ers from the realm of social entrepreneurship. The final- I had several roles while working on ists also display the competition logo on their Web sites, the Schwab project. One was to help the organization se- which gives them additional recognition and credibility. lect finalists for its Social Entrepreneur of the Year award, a process that entailed a due diligence review of the 15 I really enjoyed working on the project. What I found most semifinalists Schwab had chosen from about 60 initial interesting was the unique people; everyone I met was an applicants. We visited and interviewed the majority of extremely committed social entrepreneur. Their organiza- the semifinalists to evaluate their organizations’ poten- tions were equally inspiring, each effectively addressing a tial and ensure that they matched the criteria for the So- very distinct challenge. Having to evaluate and choose cial Entrepreneur of the Year contest; ultimately, we se- among them was extremely challenging. I also enjoyed lected five finalists. My team and I also helped plan the experiencing firsthand BCG’s social impact work and see- awards ceremony, ensuring that the jury was well pre- ing the enthusiasm of all the BCGers involved, including pared and that the event itself ran smoothly. our senior partners. It was a great experience. It was amazing to see the impact that the competition can have on the entrepreneurs. The semifinalists were all very  T B C G
  • 41. seeks to inspire people, communities, and the corporate sector to initiate “greening” efforts on school campuses, on publicly accessible land, and at home. The organiza- tion has been recognized numerous times for its achieve- ments and is having a truly transformative effect on Canada. Klaus Schwab once said that “the world must become aware of the fantastic transformational power of social entrepreneurship.” And indeed, the social entrepreneurs described above demonstrate how individuals can have great impact when they are relentless in their pursuit of new ideas. We look forward to continuing our support of The finalists of the Schwab Foundation for Social Entrepreneurship’s 2007 social entrepreneurs around the world. contest in Germany celebrate at the awards ceremony with Hilde Schwab and BCG’s Dieter Heuskel. Arts and Culture Arts and culture are integral to all societies. They allow communities to develop and share innovative points of view about the world and enable people to express their individuality—and experience that of others. In this way, they greatly enhance the quality of life. BCG has completed many projects that touch arts and culture at the local level. Our work includes our efforts to help expand the capabilities of Fondazione Palazzo Strozzi, which seeks to promote the art of Florence, Italy, and our work helping to strengthen the business model of the New York City Opera. Our work with the Ullens Foundation also illustrates our efforts in the realm of arts A Wellcome volunteer helps care for twins. and culture. Non-Profit Ltd.), which he founded in 2000, is a combina- The Guy & Myriam Ullens Foundation: tion rehabilitation center and employment agency for Building a Showcase for Chinese those with “changed working abilities.” It seeks to over- Contemporary Art come the stigma many employers attach to the disabled Belgian industrialist and philanthropist Baron Guy Ullens by providing the latter with suitable job opportunities— had a bold vision: to transform an abandoned military in such areas as packing, gardening, and cleaning—that factory in northeast Beijing into a vibrant, world-class allow them to demonstrate their capabilities and the exhibition center focusing on Chinese contemporary art. value they can add. The organization places between 30 The center would display works from his vast personal and 50 people annually at precontracted companies and collection—the world’s largest, at more than 1,500 piec- has inspired similar efforts by other organizations. es—together with a broad swath of offerings from the country’s thriving artistic community; and it would fea- The winner of Canada’s 2007 contest, Geoffrey Cape, is ture a schedule of exhibitions and events. The center the executive director and cofounder of Evergreen, an would also conduct research, sponsor emerging artists, environmental nonprofit organization that was launched and offer educational programs for both adults and chil- in 1991 to help make the country’s cities “more livable.” dren. It would be a unique institution within China and Through its three core programs—Learning Grounds, serve as a marquee venue for the country’s contemporary Common Grounds, and Home Grounds—Evergreen artists. M  D 
  • 42. Given these positive factors, Ullens decided to pursue his vision. Some significant obstacles remained in his path, however. First, the project would truly be starting from square one, since Ullens had neither a defined business plan nor a clear image of what the center would look like. Second, he also had little in the way of dedicated help or organization infrastructure; working with him was only a small team of part-time employees who were artists rath- er than businesspeople. Third, there were external constraints. The Chinese gov- ernment had traditionally taken a fairly negative stance toward contemporary art, which manifested itself in a The Ullens Center for Contemporary Art was launched in November 2007 at general lack of support and tight restrictions regarding a weekend-long gala attended by almost 4,000 guests. permissible content. Laws concerning the legal and tax status of nonprofit organizations were also less developed in China than in other countries, thereby limiting tax in- centives for potential contributors. And there was the very real threat that the government might tear down the factory and much of the surrounding area, its current vi- brancy notwithstanding, and build alternative commer- cial projects in its place. Finally, there was self-imposed urgency, because Ullens wanted the center to be operational before the start of the Beijing 2008 Olympic Games—then less than three years away—in order to capitalize on the expected large influx of tourists and international press. Given the size and array of the challenges he faced, Ullens sought BCG’s The Ullens Center’s cutting-edge presentation serves as a striking backdrop assistance in supporting the venture. for the display of contemporary art from China and around the world. BCG quickly immersed itself in the project and stayed Supporting the idea was the renaissance taking place in with it through its completion. The team provided assis- the structure’s immediate surroundings. Beijing’s 798 Art tance on virtually every aspect of the work. It helped District, part of the city’s industrial Dashanzi district, had refine the center’s objectives and establish plans and recently become home to a growing number of Chinese a timeline; select a designer; define governance and or- and international galleries, bookshops, and cafés. The ganization structures; develop a strategy for managing transformation had been driven by surging local and relations with the government; and formulate a media global interest in Chinese contemporary art. strategy to reinforce the desired messaging. BCG also helped develop ticket pricing and sales strategies, iden- The area, however, lacked what Ullens was proposing: a tify revenue generation opportunities (for example, a large state-of-the-art facility with a full complement of museum shop and café and several potential invest- museum services. Hence, the prospects for such a center ments in nearby properties), and develop a fundraising were favorable. Another plus was Ullens’s willingness to strategy to help ensure the center’s long-term sustain- fully fund the venture, if necessary, through the Guy & ability. The BCG team even helped mail invitations and Myriam Ullens Foundation, which had been established develop a seating plan for the center’s opening; it also in 2002 to promote Chinese art. This commitment miti- provided logistical assistance for the launch itself. Says gated the questions surrounding financing for such a ma- Ullens, “Without BCG, the museum would not exist.” jor undertaking. (For a consultant’s perspective on the scope of the work,  T B C G
  • 43. see the sidebar “Shining a Spotlight on China’s Contem- ing works by China’s many emerging artists, whose art is porary Art.”) not yet familiar to the international markets. “The $2 mil- lion canvas is not for us,” he says. “We want to shine a “It was an unbelievably complicated process,” explains spotlight on the full spectrum of fine contemporary art BCG’s David Michael, the senior partner and managing being produced in this country, not just the works of a director who led the effort. “There was just so much to select few.” be done. It was like opening a hotel, a restaurant, and a luxury gi shop, and then holding two weddings in the The establishment of the center has had other benefits as hotel on the first two days of operation. And we were do- well. It has strengthened the local economy, reinforced ing it all under the spotlight of the global media and art the vibrant artistic character and atmosphere of the com- critics.” munity, and likely helped spare the area from the govern- ment’s wrecking ball. “It’s very rewarding to know that All the hard work paid off handsomely, however. The Ul- we played a major role in saving this district from being lens Center for Contemporary Art was launched in No- demolished,” says David Michael. He also notes the lon- vember 2007 at a weekend-long gala event attended by ger-term impact that the center stands to have on Bei- almost 4,000 invited guests—and has since met a chorus jing’s identity. “This building has become a public institu- of critical acclaim. The Art Newspaper, for example, said, tion that will be a landmark in Beijing, like the “In years to come, the opening of UCCA may be seen as Guggenheim and the Museum of Modern Art are in New one of the defining moments in Chinese art.” York and the Centre Pompidou is in Paris. You think of those cities and those institutions as being related—you The center is truly a one-of-a-kind institution that fully couldn’t imagine the cities without them. Beijing now realizes its founder’s vision. Its more than 8,000 square has that.” meters of space, two full floors, three separate exhibition halls, and overall cutting-edge presentation serve as a The Ullens Center for Contemporary Art has already be- striking backdrop for the display of contemporary art gun to live up to its promise. We look forward to watching from China and around the world. In particular, says Ul- the center grow in prominence and influence, and we are lens, the center serves as the ideal platform for showcas- proud to have played a role in its creation. Shining a Spotlight on China’s Contemporary Art Hui Zhang, a senior associate in BCG’s organized venture into an efficiently designed, future-ori- Shanghai office, worked for approxi- ented organization and finding a means of making that mately ten months on the launch of the organization financially self-sustaining. But we managed Ullens Center for Contemporary Art. to succeed. This accomplishment gave me a very strong She discusses her role and what the ex- sense of achievement, especially at this early stage of my perience meant to her. career. Working for Ullens was my first I am proud to have been involved in this effort because I project with BCG, and I feel very lucky to have received think the Ullens Center for Contemporary Art is very im- this assignment. At the outset, my role was essentially to portant for the Chinese arts scene. I am also grateful for provide general support for BCG’s overall activities. I par- having had the opportunity to work in the social sector ticipated in a range of tasks, including benchmarking generally. I think it’s very important that BCG continue to other museums—both Chinese and international—and involve itself in this area. Not only will the work have a running focus groups to develop a shortlist of possible positive impact on our brand, but it will also allow us to names for the museum. make a fundamental difference to many worthwhile or- ganizations and causes that oen desperately need the Ultimately, I was responsible for leading two modules: or- type of support we can provide. ganization design and fundraising. It was quite challeng- ing to have the tasks of both transforming a small, loosely M  D 
  • 44.  T B C G
  • 45. PART II Sharing Viewpoints M  D 
  • 46.  T B C G
  • 47. Tackling Malaria An Interview with Regina Rabinovich, MD, Director, Infectious Given the complexity of this organism—it is a parasite Diseases Development, Bill & Melinda Gates Foundation and it has a complex life cycle—we can’t battle it with T just a single approach, because no one approach is per- he Bill & Melinda Gates Foundation has fect. What we need instead is a portfolio of tools that are set itself the goal of helping to eradicate used together. So we’re investing in all aspects simultane- malaria—one of the world’s deadliest and ously: the pursuit of a vaccine, the development of new most intractable diseases. In this interview, drugs for treatment, and more effective use and imple- Regina Rabinovich discusses the Gates mentation of pesticides and diagnostics. Foundation’s objectives, progress to date against the dis- ease, the challenges that the work has entailed, and the The challenge, of course, is determining the right mix of foundation’s relationship with BCG. investments for each type of tool and across the entire portfolio. This step entails answering a number of ques- The eradication of malaria is a highly ambitious ob- tions: How will the different tools be utilized in the field? jective. How did the Bill & Melinda Gates Foundation What specific impact are we trying to have with each decide to pursue it? tool? What are the barriers to achieving that impact? Malaria is one of many diseases the foundation is work- We look at the solutions from the earliest research all the ing against, but it is notable because it is one of the cost- way to implementation. And, for us, this analysis begs the liest in terms of the human toll. When we chose to focus question, What is the role of the Gates Foundation versus on it, one of the initial questions we asked was, what is that of other players? our objective? Is it 60 percent impact—that is, do we want to reach 60 percent of those most vulnerable to the Clearly we can’t do it alone. We don’t have enough mon- disease? Is it 80 percent impact? What should we aim for ey to do everything we want to do. And there are other and what is realistically achievable? very committed and capable players out there—players like the Wellcome Trust and the National Institutes of However, if we aimed for 80 percent impact, that would Health at the research level, and many others, including still leave 20 percent of afflicted children to die. Expressed countries, at the delivery level. So arriving at a compre- that starkly, we all started to think not just about what we hensive, maximally effective approach in light of all these could accomplish in five years but also about what we considerations was and remains a very complex task. But could ultimately achieve over the long term if we put we believe we’re on the right track. enough resources against the disease, made the right in- vestments, and effectively engaged the external commu- How would you characterize the progress of the foun- nity. That’s how our focus on eradication came about. dation’s efforts against the disease to date? What is the foundation’s strategy against the dis- Right now we’re probably three to four years ahead of ease? where we were planning to be about a year ago. So prog- M  D 
  • 48. ress has been encouraging. We are at the point where we But, to emphasize, we view ourselves as partners to the are going to start seeing real impact from our efforts in work that the countries need to do and need to finance, the field, and the tools we are investing in are going to because we can’t possibly do those things ourselves. It prove themselves increasingly credible. doesn’t matter if we create a new product or toolbox if it’s not utilized. The campaign against malaria is very in- In fact, the problem we’re starting to contemplate—and tegrated in that way. it’s one we didn’t expect to face for several years—is, what’s next? Once you’ve finally driven the disease down How has BCG contributed value to your work and to very low levels, how do you sustain it? How do you how has the relationship evolved? replace those bed nets in three years in a systematic man- ner? How do you maintain funding? BCG’s role in working with us has been built brick by brick. We didn’t have the opportunity to say at the very It’s an exciting problem to have in global health. And I beginning, “We have ten goals we need to accomplish, think the fact that we’re actually discussing it demon- and we’d like you to help us work through them system- strates the credibility of our stated goal of eradication, atically.” The relationship has been built as we fostered which no one was even thinking about as a possibility trust and as great people from BCG worked with us. until recently. What started off the relationship between the foundation The Gates Foundation has taken an active role at en- and BCG was the first study BCG conducted with one of gaging with the broader malaria community and the our grantees, the Medicines for Malaria Venture (MMV); Roll Back Malaria Partnership. How do you think it was an in-depth study of that organization’s portfolio. about the foundation’s role as a partner with these BCG examined the market, determined the value of different organizations? MMV’s portfolio, assessed the mix of the pipeline, and raised the right sets of questions. When people within the I don’t think of it in terms of what we’re doing versus Gates Foundation saw that kind of analysis being done, what they’re doing. We are part of a partnership, and all they wanted it in other parts of the malaria portfolio. of us are working toward the same objective. Each of these organizations has its own area of emphasis and The approach that your team has taken with us—an ap- adds a particular value. proach that not only utilizes in-house experts but also engages the external community effectively—has been a What the foundation is looking to do is add value wher- very positive complement to our internal capabilities. It ever it can along the spectrum. In particular, we’re look- has allowed us to do much more and progress at a much ing for solutions that have some permanency. And those faster pace, and the benefits to us and the malaria-vulner- types of solutions are based on knowledge, because when able population have been considerable. you learn something, the world changes in front of you. So we’re looking to use science to create something that creates health.  T B C G
  • 49. Measuring Social Impact Challenging but Critical Ina Astrup, Petter Eilertsen, Pia Hardy, Øyvind Torpp, and has been identified and widely discussed. And there has Ulrich Villis worked on the BCG team that developed the ap- been progress. On a macroeconomic level, economics ex- proach outlined here. The approach has already been used by perts have published numerous studies on the challenges one of our social impact clients—one that is dedicated to and costs of reaching the UN’s Millennium Development making “value-based” investments in the social impact field. Goals. These studies, which aim to provide guidance on T budget allocations to both policymakers in international he resources available to organizations en- institutions and governments of developing countries, gaged in philanthropic efforts are too scarce have yielded principles that have advanced the practice to improve the welfare of all the world’s of measurement generally. needy. Despite the unprecedented increase in charitable giving over the past decade, Academic researchers in specific fields have also devel- the funds available still seem like a drop in the ocean oped industry- and cause-specific yardsticks that facilitate compared with the poverty-related challenges of the de- comparison among similar initiatives. Researchers in veloping world or the large inequalities in the developed health economics, for example, have developed a metric world. Therefore, many organizations are asking the that has become a de facto standard for measuring the same questions: burden of disease and the effectiveness of health-related interventions: the disability-adjusted life year (DALY). Es- ◊ How can we ensure that sentially, we can think of a our efforts significantly DALY as one lost year of improve the lives of the healthy life that results from largest number of benefi- a disease or condition of pov- ciaries? erty. Health interventions tend to be successful when ◊ Is there a way to measure they result in low levels of the social impact generat- DALYs or in high levels of ed by our interventions? DALYs that have been avert- ed. Similarly, in education, ◊ Can we assess different researchers have developed types of potential inter- and gained wide acceptance ventions to determine for a standardized methodol- which would have the ogy for calculating the rate greatest impact? of return from additional years of schooling. Over the past few years, the need for a reliable means In measuring social impact, the effects on the ultimate beneficiaries are what Progress has also been made of measuring social impact count. toward the development of M  D 
  • 50. measures or approaches that would enable the compari- vidual initiatives—thereby allowing it to create maximum son of social impact initiatives not just within but across socioeconomic value and, simultaneously, minimize risk. thematic areas—such as education, health, or food secu- rity. For example, the Social Return on Investment frame- The approach can also, we believe, provide a credible work, developed in 2001 by REDF, a philanthropic fund, means of vetting unrelated projects. As such, it could yielded some valuable insights on a theoretical level, al- prove highly useful to governments, nongovernmen- though the model proved difficult to apply in practice. tal organizations, philanthropists, and other funding en- More recently, the Copenhagen Consensus 2008, a panel tities that have a range of potential investments to of eight leading economic experts focused on addressing choose from and seek an objective way to differentiate some of the world’s greatest challenges, has also made among them. significant contributions toward that end by systemati- cally applying economic cost-benefit analysis to social As noted, our approach does have its limitations, and we impact efforts. continue to develop it. We believe, however, that the overall framework as it currently exists has real value. We believe it is important, both for social impact organi- That’s why we are excited to share our thinking. zations and for their intended beneficiaries, that meas- urement practices in the social impact sphere continue Specifics of the Approach to evolve and improve in quality and rigor. Today many organizations struggle with the challenge of measure- The approach we have developed has four steps: deter- ment, and they leverage very little of the academic re- mining an effort’s inputs; identifying the effort’s outputs; search. They also tend to use their own individualized assessing the effort’s impact on beneficiaries and on so- approaches—many of which focus solely on indicators ciety; and, finally, calculating value creation—that is, the specific to their particular effort. monetary value of the impact. It is this last measure that provides a single “grade” for each initiative and allows In an attempt to advance the discussion, we have worked for comparisons across initiatives. Importantly, it also ad- to develop an approach for measuring social impact— dresses the vexing problem of comparing the value of one that we believe can help individual organizations initiatives that save lives with the value of those that im- make better decisions and can also allow for a compari- prove them. son of different types of initiatives. The approach is based on BCG project work, interviews with foundation officials Each step of our approach, we note, requires making a and academic experts, and third-party research. Although number of explicit assumptions and choices. That means the approach has its limitations, we believe it can signifi- that considerable subjectivity is involved, particularly in cantly increase the quality and impact of social invest- calculating impact and value creation. Yet as long as as- ments and projects in the following ways: sumptions and choices can be standardized—that is, if the same criteria can be applied to each initiative—valid ◊ By allowing, within a margin of error set by the reli- assessments and comparisons are possible. ability of the input parameters, an assessment of social impact across thematic areas To help illustrate how our approach works, we apply it here to a hypothetical example—a malaria intervention ◊ By identifying the key drivers of return in an African country. The agencies and organizations involved in the hypothetical intervention purchased and ◊ By quantifying the relative sensitivities of the individ- distributed 10,000 mosquito nets in order to reduce ma- ual parameters laria among rural children under the age of five. (See the exhibit “Applying a BCG Approach to Assess the Social ◊ By uncovering the critical variables that need to be Impact of a Malaria Intervention.”) managed when projects are implemented Inputs and Outputs. Generally, it is easy to quantify an In this way, our approach can help guide an organization intervention’s inputs, which are the financial and nonfi- in selecting its portfolio of projects and designing indi- nancial resources invested, and its outputs, which are the  T B C G
  • 51. direct deliverables to beneficiaries. Donors typically re- tended beneficiaries. Unfortunately, many organizations quire the organizations with which they partner to for- today, in particular those working in the developing malize and measure output targets so that it is clear how world, are not able to accurately identify who actually funding will be deployed. Consider the malaria interven- benefits from their efforts—a situation that poses a fun- tion that we offer as an example. The input in this effort damental challenge to measurement. would be $85,000—the cost of buying 10,000 mosquito nets and distributing them. The output would be the Impact. We could stop at the calculation of the relation- 10,000 nets distributed. ship between inputs and outputs, because it certainly yields valuable information. But this measure does not However, in this example only 3,500 nets actually reached take into account whether—or to what extent—the inter- the intended beneficiaries: rural children. Although the vention actually increased the welfare of each benefi- rest of the nets were not wasted—5,000 were used by ciary. This can be determined only by measuring the ul- adults and 1,500 by urban children—the range of bene- timate changes to the beneficiary that resulted from the ficiaries had a significant impact on the intervention’s intervention, which we refer to as the impact. success. In the example, measuring the ultimate changes to each At this stage, we would calculate the relationship between beneficiary calls for us to draw on several well-document- inputs and outputs—in this case, an average cost per ben- ed assumptions about the effectiveness of mosquito nets eficiary of $8.50. However, this figure changes markedly— and the incidence of malaria. By applying these assump- to about $24—if we divide the total cost by only the in- tions to the output of the intervention, we calculate that Applying a BCG Approach to Assess the Social Impact of a Malaria Intervention Inputs Outputs Impact Value creation Definition Financial and Direct deliverables Ultimate changes Monetization of nonfinancial to the beneficiaries to the beneficiaries ultimate changes resources invested to the beneficiaries in the initiative Example Procurement of 10,000 3,500 targeted 18,000 episodes of Lifetime productivity gain mosquito nets for beneficiaries were malaria and 70 deaths from averted DALYs: between targeted beneficiaries: reached were prevented among $542,500 and $18.2 million rural children under the targeted beneficiaries, age five 6,500 nets were corresponding to 2,170 Health care expenditures used by unintended DALYs averted over three saved over three years: Staff for distributing beneficiaries (5,000 years $680,000 nets and educating adults and 1,500 beneficiaries urban children) An additional 300 DALYs Total benefit: between were averted among the $1.2 million and $18.9 million Investment: $85,000 unintended beneficiaries Ratios Cost per beneficiary: Cost per DALY averted: $34 Range of benefit-to-cost $8.50 ratio (depending on ◊ Cost per DALY averted monetization factor used): among the targeted between 14 to 1 and 222 to 1 beneficiaries: $14 ◊ Cost per DALY averted among the unintended beneficiaries: $184 Source: BCG analysis. Note: A DALY is a disability-adjusted life year. M  D 
  • 52. the impact of 3,500 rural children under age five sleeping project has ended. However, information is generally under malaria nets for three years would be 18,000 fewer available to quantify the burden of a disease: in our episodes of malaria among those children, and 70 fewer hypothetical example, the prevalence of malaria and deaths than would otherwise have occurred.1 the DALYs for children under five due to malaria would be available from the World Health Organiza- Because DALYs are the standardized measure for quanti- tion. Once we know the efficacy of the intervention, fying the impact of a health intervention, we then calcu- we can estimate its likely impact in averting the late that the mosquito net intervention averted 2,170 disease. DALYs among rural children.2 An additional 300 DALYs were averted among the 6,500 unintended beneficiaries: ◊ Attribution. Finally, we must isolate the impact of the adults and urban children. The impact on the unintended intervention we are analyzing from any other inter- beneficiaries was lower because, among other reasons, ventions that are simultaneously targeting the same fewer adults die from malaria than children, and the beneficiaries. A pragmatic way to calculate attribution prevalence of malaria is lower in urban areas than in ru- is to weight the influence of each program according ral areas. to its budgeted spending. This approach assumes that the interventions have the same overall efficacy. At this stage, we can derive a few additional, very helpful figures from our hypothetical example. The intervention A complicating factor when making assumptions about incurred a cost per DALY averted of $34. However, the efficacy, time frame, or attribution is that the quality of cost per DALY averted among the targeted beneficiaries data varies across different countries and types of inter- was only $14, while the cost per DALY averted among the ventions—and data are oen inaccurate. Hence the proc- unintended beneficiaries was $184. It is clear that if the ess of finding and validating data can be quite time con- implementers had been able to ensure that only targeted suming. beneficiaries received and used the nets, the impact would have been vastly greater. Value Creation. The final step of the process is to deter- mine the actual monetary benefit of an intervention to Standardized measures such as DALYs and costs per the beneficiaries and to the community as a whole. This DALY enable comparisons across all kinds of health inter- figure can then be compared with the program’s cost ventions. Organizations seeking to benchmark the impact in order to calculate the intervention’s return on in- on beneficiaries can already draw on a significant amount vestment. of empirical research using these metrics. Several levels of value creation need to be examined. In Organizations oen need to estimate the likely impact of the malaria example, we would need to consider the fol- an intervention before launching it in order to assess its lowing: potential. To undertake this challenging task, an analyst will generally need to make reliable assumptions about 1. The lifetime productivity that the community gains three main variables: when DALYs are averted ◊ The Efficacy of the Intervention. How well does an inter- 2. The health care costs that families and society avoid vention perform, technically and operationally? In our example, we assume that the nets will successfully pro- 3. The broader societal benefits gained—including im- tect against malaria 50 percent of the time (the techni- cal efficacy) and that approximately 95 percent of the 1. For rural children in sub-Saharan Africa, the incidence of malar- nets will be used correctly (the operational efficacy)— ia—that is, the average number of times a child gets malaria in a for a total efficacy of 47.5 percent. This information year—is 3.6. Approximately 1,350 of every 100,000 children under age five die of the disease every year in the region, yielding a death can generally be found in empirical case studies. rate of 0.0135. We assumed that the total efficacy of the interven- tion would hold constant over three years at 47.5 percent. ◊ The Time Frame. Oen, the final impact of an interven- 2. A DALY is calculated assuming a discount rate of 3 percent and tion can be measured only several years aer the uniform age weighting.  T B C G
  • 53. proved educational outcomes as children are sick and we use the national GNI per capita figure for Rwanda, we miss school less often, and higher productivity as calculate the most conservative return at $542,500—about parents take less time off from work to care for sick 6.4 times the program’s cost. But if we use the global av- children erage of the GNI per capita, the return would be calcu- lated at $18.2 million and the benefit-to-cost ratio would But measuring costs and lost productivity that will be be 214 to 1. avoided—as well as the seemingly intangible greater social good—is a very tricky undertaking. Particularly The Copenhagen Consensus 2008 argued for using $1,000 when the impact of a project extends far beyond its as a monetization factor because this amount corre- immediate beneficiaries, it is harder to attribute and sponds to the value of a statistical life year according to quantify. We discuss each of the three levels of value cre- surveys evaluating the average amount that developing ation in turn as they would relate to our hypothetical countries are willing to pay for health-enhancing initia- project. tives. Using this monetization factor, the benefit from our malaria example would be about $2.2 million, yielding a The First Level: Lifetime Productivity Gains. The increase in benefit-to-cost ratio of 26 to 1. We find this calculation in lifetime productivity that is attributable to a health inter- line with the Copenhagen Consensus 2008 estimate of 20 vention is commonly quantified by multiplying the to 1 as the expected benefit-to-cost ratio of malaria pre- DALYs averted by a monetization factor. Any attempt vention and treatment. at such a calculation is ethically sensitive, however, because it entails making an explicit assumption about The Second Level: Health Care Costs Avoided. In a preventive the value of a human life. Additionally, there is no single, health-care initiative, a significant benefit is the savings widely accepted metric for this calculation. In the ma- in treatment costs that result when infections are avoid- laria case, for example, this value could be any one of ed. Data for these assumptions can be obtained from na- the following: tional health budgets and surveys of private health ex- penditures. Unfortunately, the quality of data on ◊ Gross national income (GNI) per capita ($250)3 developing countries is oen poor. In our hypothetical example, we calculate the health expenditure avoided by ◊ GNI per capita adjusted for purchasing-power parity the intervention over the three-year period at an estimat- ($730)4 ed $680,000, two-thirds of which would be carried by pri- vate households. ◊ The so-called value of a statistical life year ($1,000 for low-income countries), as explained below The Third Level: Broader Social Benefits. Quantifying the wider socioeconomic effects of interventions is challeng- ◊ The world’s average GNI per capita ($8,400) ing, so we have chosen not to calculate them in this ex- ample. Still, these broader social benefits can be consider- Obviously, the monetization factor that is chosen will sig- able. Benefits in some types of interventions—for nificantly affect the final value-creation calculation and example, crime prevention—can far outstrip the direct benefit-to-cost figures. Using national GNI figures, for gains for an individual beneficiary. We therefore recom- example—even those adjusted for purchasing-power mend using qualitative assessments to attempt to deter- parity—will yield low returns for low-income countries. mine these effects. As a result, low-income countries will be inherently dis- advantaged in any comparisons of initiatives across na- In the malaria example, we can quantify only the first tions.5 We therefore argue for using a common valuation two levels of value creation, calculating total value figure across countries, which is consistent with the prin- ciple of valuing all lives equally. 3. In our example, we used the GNI figures for Rwanda. Interestingly, however, the return on investment for social 4. In our example, we used the GNI figures for Rwanda. impact projects is oen high—even when the lowest GNI 5. The issue of which monetization factor to use also arises for less figure is used. In our hypothetical malaria intervention, if sensitive value-creation calculations, such as those for education. M  D 
  • 54. creation for three years at between $1.2 million and The Value of the Model $18.9 million. Dividing these amounts by the direct mone- tary input to the initiative, $85,000, yields a benefit-to- The approach we have described here is a sound, repli- cost ratio of between 14 to 1 and 222 to 1. cable, and broadly applicable methodology for calculat- ing social impact. It is not perfect, as we have noted, and Note that in this example we do not need to calculate arguably it is only as good as the underlying assumptions value creation over a longer period because the project used in each case. lasted only three years—the lifetime of a mosquito net for malaria prevention. In areas such as education, how- But even without certainty about the assumptions, the ever, where value must be calculated over longer periods, model offers deep insight into the causalities and relative some further questions must be asked, among them the importance of an initiative’s individual parameters. This following: is helpful not only for judging the robustness of the initia- tive but also for yielding critical insight into which param- ◊ What time frame should be used to measure aggregate eters to focus on during implementation. benefits? Of course, the total value created by any intervention de- ◊ What discount rate should be used? pends wholly on the quality of implementation—a factor we have not addressed in our exploration here. ◊ What rates of inflation and economic growth should be used? We believe that our approach will enable organizations engaged in social impact activities to make better deci- These calculations resemble a discounted-cash-flow anal- sions, allocate resources more effectively, and design ysis, and the most suitable variables need to be assessed more successful programs—to the advantage of their tar- on a case-by-case basis. geted beneficiaries. The key drivers we have identified as being critical to assessing social impact can also be ap- plied as key performance metrics, enabling robust moni- toring and reporting of implementation efforts.  T B C G
  • 55. PART III Profiling BCG’s Work for Social Impact M  D 
  • 56.  T B C G
  • 57. The Environment BCG is carrying out an ever-increasing amount of work help- Challenge: The organization believed that much of the ing companies, cities, and public authorities achieve greater biological information that might be useful in addressing environmental sustainability. In this section, we profile just a the critical issues facing the planet is poorly organized few of our local projects. and stored—and, as a result, largely inaccessible. The or- ganization sought to explore the possibility of creating a data platform that would consolidate—and facilitate easy City of Chicago, Department access to—such information across the education, sci- of Environment ence, business, and civic communities. U S Impact: BCG helped the organization conceptualize the Description: A department of Chicago’s government project, develop a mission statement, initiate fundraising whose mission is to “protect human health and the envi- activities, identify potential technology partners, and ronment, improve the urban quality of life, and promote map out an implementation plan. The organization economic development.” launched the platform as well as an innovative data-gath- ering approach to leverage it: the Microbial BioBlitz pro- Challenge: The department sought a plan to dramati- gram, which offers children the opportunity to collect, cally reduce the approximately 3 million tons of waste analyze, and identify novel microbial species. that Chicago’s residents and businesses send to landfills every year. Wildlife Conservation Society (WCS) Impact: BCG and the department developed a strategy U S to reduce the waste sent to landfills through initiatives targeting the elimination, reuse, and recycling of con- Description: An organization that “saves wildlife and struction, household, food-and-landscape, and hazardous wild lands through careful science, international conser- waste. These initiatives will also have the impact of elim- vation, education, and the management of the world’s inating millions of tons of carbon dioxide emissions an- largest system of urban wildlife parks,” including its flag- nually. ship Bronx Zoo, in New York City. Challenge: WCS’s Education Division had grown signifi- The E.O. Wilson Biodiversity Foundation cantly. WCS sought a strategic plan to help the division U S focus its activities and set priorities for program develop- ment and investment in staff and grant funding. Description: An organization that seeks to “preserve bio- logical diversity in the living environment by inventing Impact: BCG helped WCS develop a strategic plan for the and implementing business and educational strategies in division, including an approach to portfolio management, the service of conservation.” and defined metrics to assess the impact of each set of M  D 
  • 58. programs. The work has strengthened the division’s per- Challenge: The zoo faced three key challenges: defining formance, particularly in program impact, fundraising, its strategic focus, shaping its governance and organiza- and internal communication. tion structures, and ensuring adequate funding. Impact: BCG helped the zoo identify possible strategic Zoologischer Garten Frankfurt directions, as well as governance and organization struc- G tures, by drawing on high-level benchmarking of other organizations. BCG also helped the zoo identify potential Description: An inner-city zoo in Frankfurt that seeks to sources of funding that would make it less reliant on sub- make animals’ lives visible to visitors; contribute to con- sidies. The stakeholders involved in the effort believe that servation; and educate people about animals, their habi- the project has helped broaden their perspective on the tats, and their protection. zoo’s future positioning.  T B C G
  • 59. Poverty and Hunger BCG’s work in reducing poverty and hunger spans the globe, Challenge: In the face of increasing demand for food aid covering both developed and developing countries. We work and diminishing contributions from key suppliers, the on a variety of topics, from disaster relief to long-term devel- federation sought to reexamine its business model, opment. particularly as it related to securing food through dona- tions or purchase. It also wanted to determine whether the organization needed to find alternative sources Action Contre la Faim (ACF) of food. F Impact: BCG and the federation determined that the Description: An international organization that delivers group’s business model and food sources were more than emergency aid to people suffering from natural disasters sufficient to allow the organization to meet its objectives. or man-made crises. The team also identified key levers that the organization could use to strengthen its ability to secure food and Challenge: ACF sought to redesign the organization potentially double the aid it provided to beneficiaries. structure of its headquarters in an effort to provide a The identified levers included deepened relationships higher level of service to its field operations. with current providers and improved prospecting capa- bilities. Impact: BCG helped ACF reorganize its headquarters into two separate entities: an “urgency” group and a “postcrisis” group. Specialists from ACF’s nutrition, food- Feeding America security, water-and-sanitation, human-resources, finance, U S and logistics functions have been reassigned within those two entities. This structure should speed decision making Description: A network of more than 200 food banks and help ACF better serve the 87 field operations in the and food-rescue organizations, and the nation’s largest 20 countries where the organization is active. charitable hunger-relief organization. Known formerly as America’s Second Harvest—The Nation’s Food Bank Net- work, the organization secures more than 2 billion pounds Fédération Belge des Banques of donated food annually and distributes it to over 25 Alimentaires (Belgian Federation million people in the United States. of Food Banks) B Challenge 1: Faced with growing numbers of hungry people and declining donations of food, Feeding America Description: A nonprofit organization that collects food sought a review of its strategy and planning processes. from approximately 200 donors and distributes it to more than 100,000 beneficiaries in Belgium through nearly 600 Impact: BCG helped Feeding America develop a five-year local humanitarian and charity organizations. strategic plan designed to improve the efficiency of the M  D 
  • 60. organization’s food-distribution efforts, increase the num- fields it considered were special economic zones, small ber of people served, and magnify the effectiveness of and medium enterprises (SMEs) and entrepreneurship in the organization’s fundraising campaign. Once fully insti- Africa, information transparency and governance, and tuted, the plan is expected to enable the organization to water and sanitation in the developing world. serve an additional 3.2 million people and increase an- nual fundraising by $25 million. Impact: BCG helped the organization develop an early framework for one of its global development initiatives, Challenge 2: In an effort to counter falling food dona- Fuel the Growth of Small and Medium Enterprises. The tions and higher food prices, Feeding America sought to work entailed evaluating special economic zones, high- overhaul its procurement and distribution strategies. technology parks, and broader growth and development of SMEs. As a result of the work, Google.org has estab- Impact: BCG and Feeding America identified $16 million lished an SME fund in India and made several grants to in potential annual cost savings that could be achieved increase the flow of capital to SMEs in the developing through improved procurement and distribution practic- world. BCG also helped the organization evaluate options es—enough to provide an additional 256 million meals for improving water quality and sanitation in the devel- per year. The team also developed strategies and an ex- oping world. On the basis of that work, Google.org de- ecution plan—including the definition of organizational cided to tackle the topics through its Inform and Empow- requirements and metrics—for achieving the targeted er initiative. This initiative leverages Google’s expertise savings and put the plan in motion. in accessing information in order to empower communi- ties, service providers, and policymakers to improve pub- Challenge 3: To expand its reach and impact, Feeding lic services such as education and clean water for the America sought to strengthen its brand and raise general several hundred million people who lack access to them. awareness of hunger in the United States. Impact: BCG and Feeding America developed and ar- Save the Children ticulated a unique brand positioning for Feeding America G among prioritized segments of the population; one of the major outcomes of the work was the decision to change Description: A global nongovernmental organization the organization’s name. The new brand positioning is dedicated to improving the lives of children worldwide. expected to increase awareness of the organization and an overall understanding of hunger. Feeding America Challenge 1: Save the Children sought help in advancing also expects the branding work to translate into an ad- its Unified Presence initiative, whose objective is to de- ditional $12 million in donations by 2012—an amount velop integrated program, financial, and administrative sufficient to provide an extra 190 million meals to the systems in the key countries where Save the Children’s hungry. The positioning could also have a large impact on member organizations deliver programs. the network’s local organizations. Impact: BCG helped Save the Children determine which core processes should be tackled first and design a plan Google.org for the immediate harmonization of two main processes: U S financial reporting and annual operational planning and reporting. As the Unified Presence initiative progresses, it Description: Google’s philanthropic arm. It aims to “use will increase the organization’s overall efficiency, reduce the power of information and technology to address the administrative costs, increase cooperation among mem- global challenges of our age.” ber organizations, and aid in fundraising—thereby allow- ing Save the Children to touch more lives and have a Challenge: The organization sought assistance in struc- greater impact. turing its grant and investment priorities, identifying re- gions where it could have a significant impact, and inves- Challenge 2: Save the Children lacked a standard ap- tigating several fields for potential funding. Among the proach for managing the knowledge required to support  T B C G
  • 61. its member organizations around the world. As a result, touch more children and have a greater impact on their the sharing of information and best practices within the lives. organization was limited, and opportunities to achieve synergies and leverage experience were not realized. Save the Children sought to formulate a global strategy for Save the Children sharing knowledge more proactively. I Impact: In the first phase of this work, BCG had helped Description: A global nongovernmental organization Save the Children develop a consensus among its mem- dedicated to improving the lives of children worldwide. ber organizations about the need for more effective knowledge management. The team had also helped map Challenge: Five Save the Children member organiza- out initial action steps. This second phase focused on tions—Save the Children Canada, Save the Children Fin- implementing the recommended steps in one country: land, Save the Children Sweden, Save the Children UK, Bangladesh. The team conducted country-specific analy- and Save the Children US—maintained operations in In- sis, determined the best practices for sharing information dia. Save the Children’s international board therefore across the organization, and launched a pilot initiative. sought to combine their efforts into a new member orga- This work, which is ongoing, will allow Save the Children nization in India in order to achieve operational syner- to share knowledge more effectively across regions and gies, maximize fundraising capability, and become a divisions, resulting in cost savings and improved produc- stronger national advocate for children. tivity and resource deployment. Impact: BCG helped Save the Children design and roll Challenge 3: Save the Children’s Market Development out a structured and balanced process for combining ex- Program allows mature member organizations to invest isting operations and creating a strong new member or- in strengthening member organizations in other coun- ganization. The work entailed adapting Save the Chil- tries that have significant fundraising potential. Many dren’s Unified Presence methodology, studying the Indian stakeholders were dissatisfied with the program’s unclear donor market and relevant competing nongovernmental objectives and operational complexity. Save the Children organizations, and supporting the design of a marketing desired a review of the program and recommendations strategy that would allow the new, unified organization— to improve it. Save the Children Bal Raksha, Bharat—to achieve its fundraising milestones and deliver greater impact for In- Impact: BCG worked with Save the Children to redesign dia’s children. All Save the Children programs in India are the program—clarifying objectives, streamlining opera- now managed by Save the Children Bal Raksha, Bharat, tions, instituting new metrics, and ensuring participation and test-marketing efforts kicked off in June 2008. from the organization’s leadership. The work is expected to enhance the program’s effectiveness considerably— resulting in more rapid growth and therefore greater im- Save the Children China pact for children. C Challenge 4: Save the Children sought to strengthen its Description: A member organization of Save the Chil- relationships with corporate donors and partners. dren, a global nongovernmental organization dedicated to improving the lives of children worldwide. Impact: BCG helped Save the Children define a strategy for working with potential corporate donors and part- Challenge: Save the Children China’s challenge was two- ners, set clear goals, gain support from Save the Chil- fold: the organization sought both to improve its ability dren’s member organizations, and determine best prac- to roll out and scale up its programs and to strengthen its tices for engaging corporations and disseminate that brand and profile. information throughout the organization. The work should allow Save the Children to significantly enhance Impact: BCG helped Save the Children China develop a its corporate relationships, permitting the organization to more effective and consistent approach toward moving M  D 
  • 62. from planning to executing pilot programs—and, ulti- Impact: BCG helped Save the Children Mexico consoli- mately, to large-scale program implementation. The date the six entities and made recommendations for the organization has since begun to utilize the new ap- unified organization’s structure, fundraising strategy, and proach. BCG also helped Save the Children China de- governance. Tangible results of the work to date include velop a comprehensive, segmented media plan that em- greater geographic reach and significantly improved ploys more consistent messaging. Save the Children fundraising capabilities. Specifically, Save the Children China is using the plan, and its profile has already been Mexico now has operations in ten regions and plans to raised: several of its key activities have received broad expand into three more in the next several years; also, the media coverage. organization expects funding in 2008 to increase by 40 percent over 2007 levels. Save the Children Japan J Save the Children Norway N Description: A member organization of Save the Chil- dren, a global nongovernmental organization dedicated Description: A member organization of Save the Chil- to improving the lives of children worldwide. dren, a global nongovernmental organization dedicated to improving the lives of children worldwide. Challenge: Save the Children Japan had an ambitious fundraising objective: to more than double annual dona- Challenge: Save the Children Norway sought to achieve tions from private contributors within five years. The or- two goals: gauging the effectiveness of its organization ganization sought to develop a marketing strategy to structure and determining whether it needed to add ca- support that goal. pacity in order to increase its effectiveness in delivering aid to children. Impact: BCG helped the organization develop a detailed marketing plan, encompassing the development of mile- Impact: BCG helped Save the Children Norway analyze stones, the identification of targeted donor segments and and optimize its organization structure. It also helped it key triggers that influence donors’ decisions, and a hu- assess the need for further gains in capacity that would man resources plan to support the effort. The team also allow it to better achieve its strategic goals and align itself analyzed returns on various marketing initiatives and with the strategy and development of the global Save the recommended that Save the Children Japan focus on a Children organization. few specific activities. The organization has implemented the team’s recommendations and expects the plan to en- able it to meet its objective. Early results are promising: United Nations Development Operations total private contributions in 2007 well exceeded the an- Coordination Office (DOCO) nual target. G Description: The umbrella organization that coordinates Save the Children Mexico the activities of all UN development agencies, including M Unicef, the World Food Programme, and the World Health Organization. Collectively, the approximately 30 agencies Description: A member organization of Save the Chil- account for more than $4 billion in annual budgets. dren, a global nongovernmental organization dedicated to improving the lives of children worldwide. Challenge 1: DOCO’s goal was to increase the United Na- tions’ impact and relevance in a changing world of inter- Challenge: Save the Children Mexico sought to reorga- national development. It sought to improve the ways in nize its six independent associations into a single organi- which UN agencies interact with one another, with non- zation and, in the process, increase its efficiency and governmental organizations, and with local governments impact. to deliver aid at the country level.  T B C G
  • 63. Impact: BCG and DOCO analyzed the situation and pact develop a comprehensive diagnostic tool—one that spoke with numerous stakeholders. The team used its the Global Compact expects to use to assess most poten- findings to develop a comprehensive framework and set tial partnerships between corporations and UN organiza- of options for how the United Nations could work more tions. The Global Compact believes that using the tool effectively in developing countries, placing particular em- will significantly improve the outcome of every one of its phasis on getting the agencies to collaborate more closely projects. The tool has already begun to live up to its prom- as “one UN.” The team identified an overarching model ise: in its first year, partner corporations and UN organi- for organization design that would facilitate better team- zations have made 4,000 requests for the tool, making it ing generally, and it supplemented the model with cus- the most requested Global Compact resource to date. tomized recommendations for operations in each coun- try. The team also developed a plan for implementation. Women for Women International (WfWI) Challenge 2: DOCO sought to implement the plan devel- G oped during the first phase of the effort. Description: A nonprofit organization that provides fe- Impact: BCG supported the pilot initiatives launched by male survivors of war with the resources to move from DOCO in eight countries: Albania, Cape Verde, Mozam- crisis and poverty to stability and self-sufficiency. bique, Pakistan, Rwanda, Tanzania, Uruguay, and Viet- nam. The team provided change management support to Challenge 1: WfWI had experienced rapid but unsustain- help the players overcome barriers to collaboration that able growth in recent years, achieving a compound an- had developed over time. The team also helped catalyze nual growth rate of 52 percent since 2000. To manage its the process for changing the funding structure in these future growth, WfWI sought a plan that encompassed countries and supported efforts to measure impact. To more strategic approaches both to sponsor acquisition date, results achieved by the country teams working to- and to program delivery. gether include significant increases in donor funds; for example, funding in Tanzania increased by 50 percent Impact: BCG and WfWI formulated a strategy based on over the previous year. Simultaneously, the country teams detailed financial modeling and analysis, and bench- have been able to deliver more development assistance marking of successful sponsorship organizations. Among for each dollar they receive. the strategy’s key recommendations were an expansion of WfWI’s sponsorship program, investments in new ser- vices, and a rationalization of the organization’s geo- United Nations Global Compact graphic expansion. The work also established reasonable G growth targets for the organization and provided man- agement with a set of tools to support decision making. Description: An office of the UN Secretariat that seeks to The strategy, which is expected to result in a 50 percent coordinate the efforts of companies around the world in increase in donor funds per recipient, should allow WfWI their commitment to responsible business practices. to support more women and have a greater impact on each woman it serves. It should also lead to enhanced Challenge: The United Nations partners with businesses programming, improved sponsor retention, and greater on a variety of social impact initiatives. The Global Com- financial efficiency. pact sought a means of determining the likelihood that a given partnership would succeed—that is, make substan- Challenge 2: To maximize operational effectiveness and tial progress toward achieving one or more of the United ensure accountability in the face of the organization’s Nations Millennium Development Goals. It also sought a rapid growth, WfWI sought to upgrade its budgeting and forward-looking tool that would help prospective partners planning systems. lay the groundwork for effective partnership projects. Impact: BCG and WfWI reviewed the organization’s Impact: Utilizing input from dozens of corporations and budgeting and planning tools and processes, and identi- UN partner organizations, BCG helped the Global Com- fied opportunities to strengthen and streamline them. The M  D 
  • 64. improvements, which WfWI has adopted, have given the secure approval from its senior management and to organization a clearer view of its fundraising and opera- launch implementation. tional expenses and have led to a stronger alignment between the budgeting processes used by headquarters Challenge 3: Recent large-scale emergencies convinced and those used by field operations. Improvements in WFP that a more coordinated response among relief pro- its ability to forecast revenues and manage costs should viders could result in more lives saved. WFP sought to also enhance WfWI’s ability to effectively deploy develop an emergency-preparedness and response-train- resources and should result in more funds available for ing center in Asia that would focus on improving interop- programming. erability among different humanitarian agencies. Impact: BCG and WFP conducted global benchmarking World Food Programme (WFP) to identify success factors and differentiators for training G in emergency response and disaster management; devel- oped a concept for the training center, including infra- Description: The frontline agency of the United Nations structure options and training modules; prepared com- in its fight against global hunger. munication documents for use with internal and external stakeholders; and developed an implementation plan Challenge 1: As an input to its strategic plan, WFP sought and helped WFP initiate it. to better understand changes in the external environ- ment in which it operates, particularly regarding donor requirements and implications of the United Nations’ on- World Food Programme (WFP) going reform process. WFP also wanted to examine the I overall context of major trends, such as globalization, that affect demand for the agency’s services. Description: The frontline agency of the United Nations in its fight against global hunger. Impact: BCG helped WFP conduct a thorough assess- ment of the macro trends affecting the organization’s Challenge: The Indian government’s food-distribution operating environment and influencing the demand for program, the largest in the world, provides aid in the form humanitarian aid in the near and medium terms; under- of subsidized grain to 400 million Indians living below stand the expectations of key donors and gauge WFP’s the poverty line. The program is plagued by problems capabilities relative to those expectations; weigh the im- and inefficiencies, including leakage and pilferage, and pact of UN reform efforts on WFP’s central and country this results in less than half of the subsidy reaching the operations; and advance discussions on WFP’s strategic intended beneficiaries. The Indian government sought direction. The broad-based work should enhance the WFP’s technical assistance in getting the national pro- agency’s planning, fundraising capabilities, and opera- gram on track. tional efficiency—resulting in a greater ability to counter hunger. Impact: BCG and WFP diagnosed the problem and de- signed a solution that would properly identify the benefi- Challenge 2: WFP sought to develop a multiple-sourcing ciaries and empower them to stop those who have been platform for its central, Rome-based support functions. abusing the system. The solution centered on the intro- The goal of this undertaking was both to better reflect duction of three changes: unique, biometrics-based—and WFP’s global character and to increase the efficiency and thus nonduplicable—identification cards for intended re- effectiveness of those functions. cipients; vouchers that must be redeemed and validated before authorities acknowledge that subsidies have been Impact: BCG helped WFP quantify the potential efficien- delivered; and a management information system that cy gains and design a plan for realizing them. The plan will allow measurement and monitoring of the program’s will exploit WFP’s global reach and will structure the performance. A pilot being run in the Rayagada district transactional processes of support functions closer to of the state of Orissa promises to deliver the right quan- WFP’s field operations. BCG also worked with WFP to tity of food aid to the intended beneficiaries: about 1 mil-  T B C G
  • 65. lion people. If successful, the pilot would result in sub- of the involved players, and gain consensus on a future stantial savings of the food subsidy, making it possible for path among those players. The project stands to increase the Indian government to expand the entitlement, in- the effectiveness of aid delivery efforts considerably in clude eligible beneficiaries who are currently excluded, the pilot countries, and it also lays the groundwork for an or both. If the program delivers the intended results, the expanded rollout. central government will consider scaling it up and intro- ducing it in several states across the country. The im- proved governance of the scheme will be as effective as World Food Programme (WFP) providing additional resources, and it will help to safe- S-S A guard food-insecure households from rising prices. Description: The frontline agency of the United Nations in its fight against global hunger. World Food Programme (WFP) I, M,  N Challenge: Despite continued efforts over the past few decades, undernourishment in sub-Saharan Africa has Description: The frontline agency of the United Nations increased steadily in absolute numbers. Poverty has also in its fight against global hunger. increased steadily, especially among the region’s small farmers. WFP and its partners sought to determine how Challenge: WFP, working in partnership with three other procuring food aid locally from small farmers could pro- UN organizations (the World Health Organization, the vide an opportunity to fight hunger and alleviate poverty Food and Agriculture Organization, and Unicef), sought simultaneously. to advance REACH—Ending Child Hunger and Undernu- trition, an effort that aims to maximize the impact of aid- Impact: BCG helped WFP estimate the overall demand related initiatives in individual countries by improving for food aid in sub-Saharan Africa in 2015 and assess how coordination among local governments and aid-related this demand could be met. Drawing on this information, bodies. the team estimated possible income improvements for small farmers that could result if some of the food were Impact: BCG helped WFP identify two pilot countries, procured from them. prioritize activities, outline a structure for the partnership M  D 
  • 66. Public Health We partner to improve health in both developed and develop- helped change the landscape of the global effort consid- ing countries. Our work ranges from initiatives against spe- erably. cific diseases—from cancer to malaria—to efforts that tackle systemic challenges like the delivery of health care in the de- Challenge 2: The Gates Foundation sought help in pre- veloping world. paring for and facilitating a meeting of foundation grant- ees who were involved in the discovery and development of artemisinin-based antimalarial drugs. Bill & Melinda Gates Foundation G Impact: The foundation increased strategic alignment among three major organizations involved in the discov- Description: A foundation that seeks to “reduce inequi- ery and development of antimalarial drugs by bringing ties and improve lives around the world” through its ef- these organizations together, identifying common inter- forts to fight poverty and improve health care and edu- ests, sharing key milestones, and creating a road map that cation. identified future interdependencies. Challenge 1: The foundation sought to review, refine, Challenge 3: The foundation sought to update its strat- and articulate its malaria strategy for the next phase of egy for effectively countering a number of infectious dis- combating the disease. The strategy would guide the or- eases that weigh heavily on the world’s poor, such as hu- ganization’s future investments to fight malaria and man African trypanosomiasis, Japanese encephalitis, would provide a clearer vision to its grantees. The foun- visceral leishmaniasis, and Guinea worm disease. dation also wanted to articulate its strategy in order to provide a clear message at a forum that it would host for Impact: BCG and the foundation quantified the burden more than 200 grantees and members of the global ma- of each disease in terms of its economic and social costs laria community. and determined the strides made to date against it. The team also gathered input from worldwide experts on Impact: BCG and the Gates Foundation established a each disease and identified the remaining challenges to clear understanding of the current state of malaria con- eradicating, eliminating, or controlling it. From this work, trol and research-and-development efforts, quantifying the team craed a strategy encompassing priorities and both the total human toll of the disease and the progress action steps for incremental grant-making from the Gates of remedial efforts. The team also developed a vision of Foundation over the next three to five years. the requirements to combat the disease globally, estimat- ing the total cost at almost $7 billion annually at the Challenge 4: The foundation sought both to determine peak—a $5 billion shortfall relative to current funding the size of an expected shortfall over the next several levels. The strategy served as a basis for the organiza- years in supplies of critical meningitis vaccines in sub- tion’s call at its global forum to eradicate the disease. Saharan Africa and to spur remedial action among mem- This rallying cry has focused attention on malaria and bers of the global health community.  T B C G
  • 67. Impact: BCG and the foundation established a baseline mated 2.6 billion lack access to proper sanitation. The of existing and planned vaccine supply and then estimat- foundation has been exploring strategies for improving, ed the potential demand for a vaccine given the expecta- sustaining, and scaling access to safe water, sanitation, tion of a cyclical increase in epidemic outbreaks. The and hygiene. team estimated a potential shortfall of as much as 50 mil- lion doses of the vaccine over the next three years. Given Impact: BCG helped the foundation summarize and com- the high mortality rate—death occurs in roughly 10 to 20 municate the size of the problem and the health impact percent of untreated and unvaccinated people who are of unsafe water, sanitation, and hygiene. It also helped exposed to the disease—this shortfall could have cata- articulate the effectiveness of the remedial efforts to date strophic effects. The team shared insights and recommen- and the capabilities of stakeholders. BCG also provided dations with key members of the global health commu- some support to the foundation in laying out a vision for nity and developed a financing proposal designed to a sustainable global system that would address these drive greater production of vaccine supply. problems. Challenge 5: The foundation sought to improve efforts to Challenge 8: The foundation invests significant resources combat pneumonia, measles, and meningitis—diseases through its grantees to develop new products and inter- that have respiratory implications and are responsible for ventions that are critical to reducing the burden of dis- about 5 million deaths a year, including almost 3 million ease in the developing world. The foundation sought to children. learn best practices from the public and private sectors in order to ensure that the best products possible are Impact: BCG and the foundation articulated the current launched in the most efficient manner. burden of these diseases, analyzed current remedial ef- forts and investments, gathered input from leading ex- Impact: BCG and the foundation worked together to seg- perts, defined potential interventions, identified potential ment the foundation’s diverse portfolio of current invest- partners, and developed a strategy. The strategy specifies ments by type of product and intervention—such as vac- areas of focus and identifies high-level initiatives for the cine, drug, or diagnostic—and stage of development. foundation to pursue over the next three to five years. Using this information, the team developed a series of questions—tailored for the different points along a prod- Challenge 6: The foundation sought a comprehensive uct’s life cycle—for the foundation and its grantees to strategy for reducing the incidence of enteric and diar- address together to ensure that products in development rheal diseases (EDDs) in the developing world. EDDs will meet patients’ needs. BCG also helped the founda- cause an estimated 2 million deaths annually, primarily tion develop the scope of work for a new team dedicated among babies and children. to providing foundation program officers and grantees support in commercialization. Impact: BCG and the foundation established a baseline quantifying the impact of EDDs by specific disease across Challenge 9: Historically, new health interventions tar- regions and patient populations. They also studied the geting the developing world have proved very slow to current portfolio of investments designed to combat reach those who need them—if they reach them at all. To EDDs and gauged their effectiveness; identified potential attempt to remedy this problem and maximize the im- new interventions; and polled the broader community of pact of the many interventions it plans to bring to market EDD experts and organizations. Further, they identified within the next several years, the foundation launched its data gaps that, if filled, could improve the ability to ad- Global Health Delivery organization. It sought a strategic dress the burden of EDDs, and they developed an over- plan for that organization. arching strategy, including potential initiatives. The strat- egy will guide the foundation in its efforts against EDDs Impact: BCG and the foundation developed a strategic and help it prioritize its grant making. and operating plan for the Global Health Delivery orga- nization. By examining more than 20 case studies and Challenge 7: An estimated 1.1 billion people in the de- interviewing over 50 experts in global health, the team veloping world lack access to potable water, and an esti- identified five critical areas that the foundation would M  D 
  • 68. need to focus on to ensure the effective delivery of its Description: The Bill & Melinda Gates Foundation seeks health solutions. On the basis of these findings, the team to “reduce inequities and improve lives around the world” defined an approach to investing and partnering that through its efforts to fight poverty and improve health would allow the foundation both to meet its objectives care and education. IVCC, which is funded by the founda- and to play a unique and transformative role in accelerat- tion, is a research consortium that aims to improve health ing the adoption of new technologies. by developing new products and tools to control the transmission of insect-borne diseases. Challenge 10: The foundation sought to increase the im- pact of its sponsored health-care products and initiatives Challenge: Public-health pesticide products (PHPPs) by identifying and addressing obstacles to uptake in glob- were extremely successful at combating malaria in the al health systems. past. But currently available tools have severe limitations and, owing to market inefficiencies and the perception Impact: BCG and the foundation identified potential that the market for such products is small, there has been systems-related barriers to the delivery of the interven- limited investment to develop new PHPPs. To attempt to tions that the foundation expected to launch in the near spur new development, the two organizations sought to term. The team then prioritized the barriers and devel- create a fact base that would provide clarity for decision oped potential solutions to them. The team also identi- makers in the public and private sectors. The fact base fied five particularly high-impact initiatives for the foun- would, among other things, quantify the current size of dation to pursue, including the establishment of the PHPP market; provide a better understanding of the information mechanisms to improve system responsive- needs, behaviors, and decision-making processes of sup- ness and the design of financing mechanisms to increase pliers, buyers, and other stakeholders; and analyze the scale and sustainability. The foundation developed a spe- process and hurdles associated with bringing a new prod- cific plan to launch the five initiatives in 2008. Internally, uct to market. a strong set of sponsors within the foundation are now willing to execute systems-related interventions; this rep- Impact: The team created a rich fact base through its resents a significant change in direction for the world’s primary research in seven countries and interviews with largest philanthropic foundation. suppliers and global leaders. One of the team’s key find- ings was that annual demand for PHPPs was an estimat- Challenge 11: The foundation sought to identify oppor- ed $750 million—a figure roughly double previous esti- tunities to improve maternal, neonatal, child, and repro- mates. The team also determined that there was a ductive health. potential opportunity to attack the disease through con- sumer markets; it therefore recommended investing in Impact: BCG helped the foundation analyze the factors research to understand the efficacy of consumer products influencing the health of these specific populations and such as insect repellents for disease control. The team’s assess potential interventions. Maternal and neonatal findings, which were shared broadly with the global conditions are responsible for a great deal of mortality health and agrochemical communities, will guide future and morbidity in the developing world, and relatively investments in this sector by IVCC and the foundation. simple interventions have proved to offer significant im- provements. The work revealed an opportunity for the foundation to have a short-term impact by increasing the DKMS distribution of these interventions, tools, and approaches, G and the foundation is continuing to evaluate the areas where it can have the greatest impact. Description: An organization that aims to increase leu- kemia patients’ chances of survival by identifying the best-matching bone-marrow donors. BCG alumnus Peter Bill & Melinda Gates Foundation and Harf founded DKMS in 1991. Innovative Vector Control Consortium (IVCC) Challenge: DKMS sought to expand its reach and G impact.  T B C G
  • 69. Impact: BCG helped DKMS establish and expand its in- helps patients decide where to seek treatment and offers ternational database of donors and develop fundraising hospitals an opportunity to think differently about their strategies. DKMS is now the world’s largest and most suc- performance and how to improve it. The guide is a flag- cessful center for bone-marrow donation. It has more ship for building the region’s reputation in health care than 1.7 million registered potential donors and it has and sets standards for methodology and usability. It has supported more than 14,000 transplants to date. been favorably reviewed and very well received, with more than 10,000 copies sold within its first few days in local bookstores. It has also prompted other regions in Europa Donna—The European Breast Germany to launch similar projects. Cancer Coalition (ED) E Kræftens Bekæmpelse (Danish Cancer Description: An independent nonprofit organization Society) whose mission is to improve breast cancer education, D screening, treatment, and research. Description: An organization that works with cancer re- Challenge: ED sought to adapt its role and positioning to search organizations, supports cancer patients, and pro- changes in the cancer advocacy environment, identify vides guidance on cancer prevention. The Danish Cancer and integrate best practices employed by other advocacy Society’s vision is a life without cancer. organizations, and make sure that its programs and ac- tivities matched the needs of its increasing number of Challenge: The organization sought to develop a fund- stakeholders. raising strategy that would allow it to meet an ambitious target: raising 50 percent more funds in 2015 than it did Impact: BCG and ED analyzed the needs, expectations, in 2006. and ideas of ED’s users and partners, identified best prac- tices by benchmarking ED against six other important Impact: BCG helped the organization analyze the fund- patient-advocacy organizations, defined strategic options raising market in Denmark; identify relevant segments; and prioritized them in a strategic plan, and developed determine the potential of various clusters of donors such an implementation road map. The work should help ED as private individuals, businesses, and foundations; and increase its funding base significantly and enhance its develop a comprehensive strategy and implementation ability to meet its objectives. plan. The strategy is expected to help the organization exceed its original goal, resulting in even more funds available for the fight against cancer. Initiativkreis Ruhrgebiet (IR) G Medicines for Malaria Venture (MMV) Description: An organization consisting of representa- G tives of more than 70 major German corporations that seek to promote the development of the country’s Ruhr Description: A public-private partnership dedicated to region into a major European business area. The Ruhr is supporting the discovery, development, and delivery of already one of Europe’s largest industrial regions. innovative, effective, low-cost antimalarial drugs. Challenge: IR sought to advance its efforts to promote Challenge: MMV was established as a public-private the Ruhr’s reputation as a leader and innovator in health partnership in 1999 to address the absence of R&D in care by publishing an updated guide to the region’s hos- antimalarials. BCG helped design MMV’s original charter pitals. and write its initial business plan. Since that time, MMV has raised more than $300 million and built the largest Impact: BCG helped IR design, publish, and promote its pipeline of antimalarial drugs that has ever existed, in- third edition of Klinik-Führer Rhein-Ruhr, a guide that cluding three drugs scheduled to be launched in the next M  D 
  • 70. two years. In 2007, MMV sought an updated, five-year R&D spending. Finally, BCG helped MRF create a new strategic plan that would define new targets for the part- governance structure to advance the organization’s capa- nership’s drug-development efforts, optimize the launch bilities in target validation and drug discovery. The work and distribution of its products to the most vulnerable should help MRF use its limited human and financial re- populations, and strengthen the organization’s invest- sources more effectively; facilitate high success rates in ment appeal to donors. drug development programs; lower the costs of its re- search projects, programs, and marketing; and improve Impact: BCG and MMV worked together to define a new its messaging to donors regarding the power of MRF’s strategic vision and financial plan for the organization network. and gain support from the partnership’s board and do- nors. Among the team’s key findings was that MMV would need to double the size of its early-stage portfolio PATH in order to meet global demand for new antimalarials G that respond to emerging resistance. The team also quan- tified the cost of a novel antimalarial combination thera- Description: An international nonprofit organization py that the organization was contemplating developing that “creates sustainable, culturally relevant solutions, and identified policy levers and partner activities that enabling communities worldwide to break longstanding would increase access to MMV’s antimalarials. The final cycles of poor health.” strategic plan, once fully implemented, should significant- ly enhance MMV’s ability to achieve its mission. Challenge: PATH sought to design a model for assessing the influence of different factors on the potential adop- tion rate of a vaccine for human papillomavirus (HPV) in Myelin Repair Foundation (MRF) developing countries. U S Impact: BCG and PATH developed a flexible analytical Description: A nonprofit medical-research foundation model that incorporated supply, demand, and financing dedicated to changing the way academic medical research scenarios. The model takes into account a large number is organized and seamlessly connecting the output of this of variables that can influence adoption rates, such as research with the biotech and pharmaceutical companies countries’ health-care budgets, societal attitudes toward that can bring new treatments to market. MRF is demon- vaccination and health, and access to vaccination pro- strating the value of its approach by accelerating the dis- grams. It can be used to quickly determine the likely im- covery and development of treatments for multiple scle- pact that a range of potential situations and actions rosis. would have on vaccine adoption. PATH is using the mod- el to support discussions with stakeholders and to accel- Challenge: MRF wanted to establish a framework for ap- erate adoption of the vaccine across the developing plying its Accelerated Research Collaboration (ARC) ap- world. proach to research in other diseases, build on and extend this approach to accelerate the early-stage drug-discovery process for multiple sclerosis, and identify opportunities Rockefeller Foundation to expand MRF’s innovation and collaboration net- G works. Description: A foundation that “works around the world Impact: BCG and MRF organized a workshop in which to expand opportunities for poor or vulnerable people leading health-care experts helped define business mod- and to help ensure that globalization’s benefits are more el options that MRF could leverage to accelerate drug widely shared.” discovery research and promote greater industry interest in multiple sclerosis. BCG also, through use of its propri- Challenge: The Rockefeller Foundation sought a strategy etary network and IP tools, helped MRF identify oppor- for an e-health initiative. The initiative would improve tunities to optimize its innovation network and future the quality, equity, and cost-effectiveness of health care  T B C G
  • 71. in the Global South—a term for developing countries— Once launched, the plan will form the basis for a broad- by using information and communication technologies based advocacy effort to increase the resources available (ICT) to improve and expand diagnostic, treatment, pre- to battle malaria. By 2015, when RBM’s targets are ventive, and monitoring capabilities as well as user aware- achieved through the help of this plan, an estimated 1 ness and access. million children will no longer die of malaria each year and the global number of annual cases will be reduced Impact: BCG helped the Rockefeller Foundation assess by as much as 75 percent. the potential value of such an initiative; determine the readiness of individual countries; identify potential participants, roles, organization models, applications, World Health Organization (WHO) and action agendas for an e-health initiative or coalition; G and develop a strategy through which the initiative’s objectives would be met. The Rockefeller Foundation Description: The body within the UN system that is plans to engage the broad global-health and ICT com- responsible for providing leadership on global health munities to shape the plan for an e-health initiative or matters. coalition. Challenge 1: WHO sought BCG’s help in formulating a business plan for the launch of Africa Health InfoWay Roll Back Malaria Partnership (RBM) (AHI), an Africa-focused component of WHO’s broader G e-health initiative. Description: A global organization that brings together Impact: BCG helped WHO develop a business plan with and coordinates the activities of all the multilateral, bilat- a particular focus on improving health care equity (that eral, and nongovernmental organizations; the countries is, better serving neglected populations), efficiency, and in which malaria is endemic; foundations; private-sector quality. Components of the work included determining companies; and research institutions engaged in the bat- the context and underlying needs, the potential value of tle against malaria. online health initiatives, and AHI’s specific role in WHO’s global e-health effort. BCG also helped WHO determine Challenge: RBM sought to develop a global business plan the best ways to leverage the African information infra- to fight malaria. It wanted a plan that would help the in- structure, to support health information at the district ternational malaria community achieve its near-term goal level, and to advocate policy changes at the national of mortality reduction and long-term goal of eradication, level. and that would guide the activities of the malaria com- munity at both the global and country levels. Challenge 2: WHO sought BCG’s assistance in develop- ing a business plan framework for its Global Observatory Impact: Working with more than 200 contributors, BCG for eHealth, which seeks to “improve health by providing is helping RBM develop a global plan. The plan aligns member states with strategic information and guidance RBM partners around a common vision and targets, and on effective practices and standards in eHealth.” articulates the agreed-upon strategy and the estimated resources needed to achieve these targets. The plan also Impact: BCG helped WHO develop a framework for highlights the need for structural changes in how RBM the plan. Components included objectives, timelines, or- operates, including the need for greater attention to in- ganization structure, and recommendations for imple- country communication and monitoring and evaluation. mentation. M  D 
  • 72. Education Our work in education focuses mainly on public primary and the organization spur policy changes that translate into secondary schooling but also includes higher education. Our significantly improved student outcomes. projects range from transformation and performance man- agement at the district and state levels to the mentoring and coaching of individual students. Atlanta Education Fund (AEF) U S Advance Illinois Description: An “independent friend” of the Atlanta U S Public Schools whose mission is to “accelerate and sus- tain student achievement by enhancing the community’s Description: A nonprofit education-advocacy start-up capacity to lead, support, monitor, and advocate for effec- organization aiming to create a world-class education sys- tive education reforms.” tem in Illinois that prepares all students to be college and work force ready. Challenge: AEF sought to develop a comprehensive “col- lege success strategy” and implementation plan that Challenge: Stakeholders were concerned that student would help Atlanta students graduate from high school achievement and outcomes in Illinois were disappoint- and succeed in college and in their careers. ing and that Illinois students were not positioned for success in an increasingly competitive global economy. Impact: BCG helped AEF identify key levers for gaining Advance Illinois and its primary funding partners—the admission to college and succeeding as a college student; Bill & Melinda Gates Foundation and the Joyce Founda- it then helped develop a plan for aiding students in tion—therefore sought a strategic plan for a new educa- achieving those goals. The plan included the establish- tion-focused advocacy organization that would drive ment of an Atlanta-wide coalition for college success, col- change, and assistance in launching that new organi- lege and career information centers in schools, and robust zation. systems for tracking student data. The team also devel- oped support for a funding campaign that would help Impact: BCG worked with a steering committee of senior sustain future efforts. Illinois leaders and the Gates and Joyce foundations to launch Advance Illinois. The team developed a four-year strategic plan for the organization, assembled the inaugu- The Broad Foundations (TBF) ral board of directors, launched the search for an execu- U S tive director, filed for nonprofit legal status, and secured early operational funding. This groundwork should help Description: A Los Angeles–based national philanthrop- Advance Illinois quickly raise public awareness of the ic organization, founded by Eli Broad, that focuses on state’s educational challenges and elevate public educa- three main areas: urban public-education reform, con- tion in the policy debate. Over time, it should also help temporary art, and medical research.  T B C G
  • 73. Challenge 1: The Broad Center for the Management of world and the opportunities for acquiring them in public School Systems, incubated by TBF and now a separate high schools. The program is active in Germany, Austria, nonprofit organization, is one of TBF’s major education- Italy, Switzerland, Norway, and Singapore. Since its incep- reform initiatives. It seeks to boost student achievement tion, more than 10,000 students aged 14 to 19 have par- by developing effective executive leaders of the nation’s ticipated. Every year, 250 BCG consultants support the largest urban public-school systems. Interested in increas- program by volunteering as school coaches for ten ing the center’s impact over the next four years, TBF months. asked BCG to support the development of a strategic plan that would outline the center’s mission, vision, objectives, Challenge: The program and its partners sought to con- and resource requirements. tinue bringing hands-on business knowledge to students at public high schools. Partners to the program are the Impact: BCG assisted the organization in developing a corporations that contribute personnel who volunteer as strategic plan and resource model, with primary empha- instructors. sis on increasing both the number and reach of leaders placed by Broad. The plan calls for a 400 percent increase Impact: The project continues to help students acquire in the number of such leaders over four years, with the critical skills. About 75 percent of the participants who aim of concentrating a significant number of them in completed the training said that they feel better versed roughly 30 large urban school districts. TBF’s hope and in reading company reports; about 90 percent said that expectation is that five to seven of those “Broad dense” they feel more confident presenting their ideas in public; districts will generate superior gains in student achieve- and about 70 percent said that they are considering start- ment and serve as reform models for other urban school ing their own business. The program is also well received districts. by high school teachers: more than 90 percent of the roughly 400 who participated said that they value the ex- Challenge 2: The strategic plan for TBF’s education arm perience. And participating companies consider the cam- called for scaling up operations dramatically, increasing paign a valuable part of their human-resources devel- annual funding by approximately 300 percent by 2008, opment. and increasing the number of staff focused on making investments. To facilitate these goals, TBF sought to cre- ate a more efficient and scalable grant-management proc- Chicago Public Schools (CPS) ess that could accommodate the expected increase in U S grant-making activity. Description: One of the four largest school systems in Impact: BCG and TBF identified key levers, including the United States, serving more than 400,000 stu- technological considerations, for the design of an effi- dents—85 percent of whom are from low-income fami- cient, scalable process; determined an optimal path; and lies—in more than 650 schools. mapped out an implementation plan. Aer 18 months, TBF’s education arm found that it was better able to Challenge 1: In a previous effort, BCG had helped make decisions about grantees, track the performance of CPS lay the groundwork for a new performance-manage- its programs, and meet its strategic objectives. ment process through the creation of a detailed five- year road map. The follow-up challenge was to advance the plan. business@school—An Initiative of The Boston Consulting Group Impact: BCG helped CPS advance the effort on all key E  S fronts through a range of initiatives, including change management support, the development of metrics, and Description: An educational program launched in 1998 the design of support materials for teachers and students. as a personal initiative by BCG partners. The business@ The work has had significant organizational impact on school program aims to bridge the gap between the eco- CPS and has fostered a more data-driven and results- nomic knowledge and skills required in today’s business oriented culture. Specific outcomes to date include the M  D 
  • 74. rollout of a new data “dashboard” for tracking improve- cago LEADS (Leading Economic Advancement, Develop- ment; progress on piloting a revamped teacher-evaluation ment, and Sustainability), which aims to create the na- process; and the expansion of more intensive training, tion’s first truly demand-driven work-force-development mentoring, and professional-development support for system. Through Chicago LEADS, initiatives are under new teachers. As the work continues, it will further in- way to address the shortage of nurses, develop a network crease data-driven decision making and enhance effec- of high-performing career academies in the Chicago Pub- tiveness and efficiency in Chicago schools, to the benefit lic Schools, and create a new work-force focus within the of the city’s students. local community-college system. Challenge 2: CPS sought to increase the number of disadvantaged students who attend—and succeed in— Cowen Institute for Public Education college. Initiatives, Greater New Orleans Education Foundation, and New Orleans Impact: BCG helped CPS design Bank on College, an in- City Council Education Committee novative scholarship program that allows students to U S “bank” dollars payable toward college by completing ac- tivities and achieving goals that are linked with future Description: The Cowen Institute for Public Education college success. CPS was awarded a $2 million grant from Initiatives is a nonprofit organization affiliated with Tu- the Chase Foundation to pilot the program in three Chi- lane University that aims to improve New Orleans stu- cago high schools. The program, launched in the fall of dents’ achievement and college readiness by “creating 2008, has the potential to be adopted more broadly with- and sustaining an environment that enables public in CPS or elsewhere in the state of Illinois. school success.” The Greater New Orleans Education Foundation is a nonprofit organization dedicated to en- suring an effective and high-quality education for every Civic Consulting Alliance (CCA) child in New Orleans. The New Orleans City Council U S Education Committee is an elected government body that offers assistance and input to the Orleans Parish Description: A nonprofit consulting group that works School Board and other agencies in order to maximize with corporations and firms to bring private-sector exper- the quality of education in the New Orleans Public tise to bear on public-sector challenges across Chicago. School System. Challenge: Nearly half a million Chicago residents live Challenge: The organizations sought to rebuild and in “working poor” families, headed by adults who are transform the public-education system in New Orleans stuck in low-skill, low-wage jobs. At the same time, following the damage wrought by Hurricane Katrina. local industry clamors for higher-skilled labor, unable to find employees qualified to fill jobs that pay wages Impact: BCG helped the organizations conduct a large- that can support a family. CCA and a committee of civic scale community-engagement effort to assess and spread leaders sought to assess local employers’ needs and iden- awareness of the state of public education in New Or- tify opportunities for residents to gain the skills neces- leans in the wake of the hurricane. The assessment fo- sary to qualify for these jobs and break the cycle of cused on major changes made to the system since the poverty. storm, early building blocks in place that could support transformation, and key challenges to the new system. Impact: BCG worked with CCA and civic leaders to iden- The assessment also provided six short-term recommen- tify a number of high-opportunity sectors and to begin dations to drive progress. The team secured endorse- developing strategies for addressing the shortage of ment of and support for these recommendations across skilled workers in those sectors. Civic leaders have since civic, education, and nonprofit organizations in New initiated efforts to help Chicago’s local community col- Orleans. Local education leaders believe the work will leges steer students toward those fields. Additionally, CCA help set them on a path toward transforming the school has worked with the city to launch a new program, Chi- system.  T B C G
  • 75. Dallas Achieves Commission LEAD, an education-focused committee composed of U S members of the state’s education, state-government, busi- ness, and civic communities, was appointed by the state’s Description: A commission convened by the superinten- governor to further the implementation of Vision 2015, dent of the Dallas Independent School District (Dallas Delaware’s sweeping education-reform initiative. ISD) to support the transformation of public education in Dallas. Its members consist of city and state officials, phi- Challenge: In 2006, BCG supported the creation of Vi- lanthropists, and leaders from business, higher education, sion 2015, an innovative plan for transforming public and civic and religious organizations. The commission is education in Delaware. Faced with a strong plan but lim- supported by the Foundation for Community Empower- ited public resources to fund it, the governor of Delaware ment, a Dallas-based nonprofit organization focused on established LEAD and included recommendations for im- making Dallas “a whole city.” proving the school system’s fiscal efficiency among the committee’s core responsibilities. DBREC sought to sup- Challenge: Dallas ISD, like many large urban school sys- port LEAD in that effort. tems, faced disappointing student outcomes and perfor- mance; for example, less than 60 percent of entering Impact: BCG helped LEAD identify opportunities for po- freshmen graduated, and only 5 percent of students tential annual cost savings ranging from approximately earned a degree from a two- or four-year institution of $90 million to $160 million, to be achieved through new higher education by their midtwenties. The district sought efficiencies in transportation, purchasing, energy, benefits, to develop and implement a transformation plan that construction, and administration. Such savings would would ensure that its students graduate and are prepared yield a material benefit to the entire state school system. for college and the work force. Savings at the low end of the range would, for example, be sufficient to fund the creation of both a world-class Impact: BCG, in partnership with the district and broad- incentive, mentoring, and evaluation system for the devel- er community, developed a comprehensive transforma- opment of high-quality teachers and an early-childhood- tion plan, which was endorsed by the Dallas Achieves education program for all three- and four-year-olds whose Commission, accepted by the district superintendent, and family income is within 200 percent of the poverty line. approved by the district’s board of trustees. The team also developed a detailed road map for implementation and set it in motion. Early wins include the reorganiza- École Centrale Paris (ECP) tion of the district’s central office—a move that will F improve efficiency and effectiveness and enable money to be redirected to student and teacher programs. The Description: A leading French engineering school. plan, once fully implemented, should result in a signifi- cant increase in the number of Dallas students who grad- Challenge 1: Facing increasing competition both in uate from high school and earn college degrees, providing France and in the rest of Europe, the school sought to spillover economic benefits to the Dallas region and launch a new, revitalized program. beyond. Impact: BCG helped the school conceive and launch a new program based on three main pillars: more interna- Delaware Business Roundtable tional experience for students (a minimum of six months), Education Committee (DBREC) and more projects (three mandatory projects in the first two Leadership for Education Achievement years), and more experience-based education (meaning in Delaware Committee (LEAD) fewer hours in a classroom). The program has already led U S to a significant improvement in the school’s ranking with- in France. Over the long term, the school expects the pro- Description: DBREC, a consortium of Delaware’s largest gram to produce students who are more entrepreneurial, employers, seeks to coordinate the business community’s more international, more innovative, and better able to commitment to improving public education in the state. effect change. M  D 
  • 76. Challenge 2: École Centrale Paris sought help in evaluat- sought to reverse the trend and reinvigorate its fundrais- ing a potential strategic alliance with Supélec, another ing capabilities. leading French engineering school. Impact: BCG and the school developed a comprehensive Impact: BCG helped École Centrale Paris dra a plan for fundraising strategy that included defined goals per tar- the strategic alliance, one that defined a vision for the geted donor group, extensive profiles of potential donors, combined institution and a transition plan. The team also donor-specific messaging, and organizational and proce- recommended specific action steps for each of the dural implementation plans. The team also recommend- schools’ key departments. Once completed, the strategic ed and facilitated the hiring of a fundraising coordinator alliance will create one of the world’s leading engineer- and the establishment of a fundraising committee. Fund- ing schools. ing has already increased significantly, enhancing the school’s financial security and its ability to respond ef- fectively to the ongoing structural changes in the Euro- Fund for Teachers pean education system. U S Description: A nonprofit organization that provides edu- Instituto Ayrton Senna (IAS) cational grants so that teachers of prekindergarten to B twelh grade can take summer sabbaticals. Supported by foundations, individuals, and corporate donors, the fund Description: A nonprofit institution based in São Paulo has provided more than $10.4 million in grants to more that works to improve children’s education throughout than 3,000 teachers across the United States since its es- Brazil. tablishment in 2001. Challenge: One of IAS’s primary sources of funding was Challenge: Fund for Teachers, which had operations the corporate sector—a highly volatile source of funds. in a handful of U.S. cities, sought a growth strategy that Another was royalties from the organization’s licensing would allow it to expand its geographical presence and of several brands associated with Ayrton Senna, the late reach. Formula One racing driver and the institution’s name- sake. IAS sought a new fundraising strategy that would Impact: BCG helped Fund for Teachers develop a growth minimize the volatility of donations, provide additional and expansion strategy; identify, screen, and prioritize opportunities for growth, and increase the organization’s potential new markets and operating partners; and iden- long-term sustainability. tify lessons from other educational foundations that had faced similar challenges. The work is expected to help the Impact: BCG helped IAS understand the current fund- organization meet its growth objectives and increase the raising landscape and IAS’s positioning within it, develop number of annual grants it awards from 500 in 2007 to strategic options, and design an implementation plan 1,000 by 2010. consisting of a series of pilots. The effort is expected to translate into a significant increase in funds received an- nually in the next few years—potentially enough to teach Handelshochschule Leipzig an additional 30,000 children to read. IAS believes the G work will also increase the Brazilian population’s aware- ness of the education challenges facing the country. Description: A European business school. Challenge: The school obtained substantial funding im- Khazanah Nasional Berhad mediately following its rededication 16 years ago, but the M rate of contributions has receded significantly over the last few years despite the school’s outstanding position- Description: The investment holding arm of the Malay- ing in national rankings. Handelshochschule Leipzig sian government. Khazanah Nasional Berhad has a man-  T B C G
  • 77. date to manage the government’s commercial assets and grams. The donors sought assistance with the organiza- undertake strategic investments that promote economic tion’s start-up. growth. Impact: BCG helped design a business model, a grant Challenge: The Malaysian government—as represented selection process, and launch and rollout plans. It also by the Putrajaya Committee for Government-Linked helped determine financial and organizational require- Companies (PCG), a committee made up of five govern- ments and provided support for the initial fundraising ment-linked investment companies—had identified the drive. NMSI was launched successfully and has already need to establish an education initiative to support stu- secured $140 million in pledged funding. The organiza- dents from underprivileged backgrounds in a specific tion has also initiated its first round of program rollouts state in Malaysia. With Khazanah acting as its secretariat, in 15 states, awarded grants to nonprofit organizations in PCG launched the initiative, which achieved significant 7 states in order to help them institute Advanced Place- results. This success led to interest in expanding the pro- ment training and incentive programs, and awarded gram to other states across the country. With guidance grants to 13 institutions of higher education for the repli- from PCG, Khazanah sought to develop a dedicated en- cation of UTeach—a program that aims to recruit, de- tity to take over the management of the initiative and to velop, and retain teachers in math, science, and computer make sure it remained aligned with the original mandate science. as it grew. Impact: BCG helped Khazanah design and launch a new North Carolina Department of Public oversight entity called the Pintar Foundation. The team Instruction (DPI) developed a detailed five-year plan for the foundation U S that encompassed its vision, mandate, operating model, organization structure, fundraising plan, and annual Description: The agency charged with implementing budget. Khazanah believes that the establishment of the North Carolina’s public-school laws and the state board foundation will allow the program to significantly expand of education’s policies and procedures governing public its reach and impact; the program is expected to reach education from prekindergarten through twelh grade. 480 schools by 2012. Challenge: Subject to increasingly stringent state and na- tional accountability standards, DPI faced a substantial National Math and Science Initiative and growing need to help underperforming schools (NMSI) achieve sustainable improvement. The department was U S assisting only a small portion of eligible schools while demand for assistance was growing far beyond the state’s Description: A public-private partnership that seeks to capacity and resources to deliver. In addition, while previ- spur improvement in the performance of U.S. students in ous efforts to support low-performing schools had pro- mathematics and science and to increase the percentage duced short-term gains in performance, those gains oen of graduates who enter those fields. The United States is dissipated once intensive state support was phased out. dramatically underperforming many countries in both DPI sought to expand its reach and effectiveness. subjects. Impact: BCG helped the agency create a comprehensive Challenge: The partnership’s major donors—Exxon Mo- model to assist underperforming schools, launch its im- bil Corporation, the Bill & Melinda Gates Foundation, plementation, and redesign the agency’s organization and the Michael & Susan Dell Foundation—wanted to structure to support the model. The model, which sets a create a formal entity that would tackle the challenge by national precedent, allows DPI to better meet its state implementing recommendations made in a report issued and federal mandates without significantly increasing by the National Academies, Rising Above the Gathering resources. It focuses on building capacity at the district Storm: Energizing and Employing America for a Brighter Eco- and school levels and creates tailored solutions that ad- nomic Future, and by scaling up locally successful pro- dress needs identified through a detailed assessment. M  D 
  • 78. The model also supports all of the state’s roughly 2,400 gram. To date, Pathways has successfully rolled out the schools rather than just a subset of those in need. In ad- program to five new low-income communities, reaching dition, it redefines the work of the entire agency, foster- 3,000 additional youths and their families. The societal ing a customer-focused mentality and a more entrepre- impact of the five new programs is an estimated neurial and collaborative working environment and $200 million in higher tax revenues and avoided costs. culture. Paul Quinn College Partners in School Innovation U S U S Description: A small coeducational liberal-arts institu- Description: A San Francisco–based organization whose tion located in Dallas that is affiliated with the African mission is to help public elementary schools in “low-in- Methodist Episcopal Church. Its mission is to “provide a come Bay-area communities—serving primarily students quality, faith-based education that addresses the academ- of color and English learners—achieve educational eq- ic, social, and Christian development of students and pre- uity through school-based reform.” pares them to be servant leaders and agents of change in their communities.” Challenge: Partners in School Innovation was growing rapidly, but its organization structure and processes were Challenge: In conjunction with an upcoming fundraising creating strains on senior management and affecting the campaign, the school sought to update its long-term stra- organization’s ability to grow and to retain talent. It tegic plan. sought to develop a scalable organization structure and performance-management processes and capabilities Impact: While establishing the initial fact base for the that would support its needs. capital campaign, BCG and the college determined that the institution faced significant financial, operational, and Impact: BCG helped the organization develop a sustain- credibility challenges. The team redirected the focus of able and scalable organization structure that would free the work away from long-term strategy in favor of near- to up senior resources, facilitate innovation and the develop- medium-term actions—such as raising tuition and ration- ment of new services, and address fundraising needs. alizing the number of academic programs—designed to BCG also helped the organization retool its performance- strengthen the school’s financial position, increase its in- management capabilities and processes. ternal capabilities, and regain credibility with students, donors, and the community. Early results of the work in- clude a significant increase in revenue, a reduction of Pathways to Education more than $1 million in the operating deficit, and, more C generally, a revitalized institution and an enhanced expe- rience for students. Description: A charitable organization created to reduce poverty and its effects by lowering the high school drop- out rate and increasing access to postsecondary educa- The Reciprocity Foundation tion among low-income youth. U S Challenge: The organization sought to replicate and scale Description: An organization that seeks to help home- its success in one location in multiple sites and pro- less and high-risk youth and young adults “permanently grams. exit the social services system and start meaningful, sus- tainable careers in the Creativity Economy (e.g., fashion, Impact: BCG helped the organization develop a growth design, marketing, and PR).” The organization currently strategy, secure more than $30 million in sustainable focuses its efforts on youths in New York City but plans funding from local governments and funding agencies, to expand into such cities as Los Angeles, Boston, San and outline an organizational plan to scale up the pro- Francisco, Seattle, and Austin.  T B C G
  • 79. Challenge: The Reciprocity Foundation’s existing pro- Challenge: In 2006, BCG supported the creation of Vision gram is classroom based, and there is limited capacity 2015, a plan to make Delaware’s education system one of to increase the number of students served. The founda- the best in the world by 2015. As a follow-up, the Rodel tion sought to explore the potential development of an Foundation engaged BCG to help the Vision 2015 Imple- online program, which would allow it to reach more mentation Team turn the plan into a reality. students. Impact: BCG helped the Vision 2015 Implementation Impact: BCG helped the foundation in four ways. First, it Team take tangible steps toward the plan’s implementa- facilitated brainstorming and discussion among the foun- tion. Chief among them was the design and launch of the dation’s executives in order to develop and gain consen- Vision Network, a pilot program for 21 schools. To date, sus on shared goals and objectives. Second, it defined the the Vision Network has provided participating school key needs of program stakeholders by means of inter- and district leaders with unique opportunities, including views and research. Third, it benchmarked the best prac- extensive leadership training. It has also strengthened tices of existing online programs. Fourth, it developed a ties between educators and state leaders from both the framework for further evaluation and testing of the orga- public and private sectors and raised commitment to the nization’s concept. broader Vision 2015 plan. Robert & Ruby Priddy Charitable Trust SIFE (Students in Free Enterprise) U S U S Description: A private charitable trust that funds the arts Description: An international organization that, working and liberal arts education in the southwestern United in partnership with universities and corporate sponsors, States. “challenges university students to apply what they’ve learned in the classroom to address real-world business Challenge: The trust was considering making its first- and economic issues.” SIFE has programs in 48 countries ever major philanthropic investment targeted specifically and in more than 1,400 universities. toward improving prekindergarten through high school education in Texas and Oklahoma. It sought to identify Challenge: SIFE sought a review of its organization struc- investment options that had high potential impact and ture and processes, and a strategy for maximizing the that fit the trust’s investment criteria. impact of its planned ongoing expansion. Impact: BCG helped the trust identify four potentially Impact: BCG and SIFE benchmarked the structures and high-impact investment opportunities and provided ad- processes of leading international organizations to deter- ditional guidance to the trust’s board on two of them. mine best practices; they then compared the findings with The trust is preparing to make the investment. SIFE’s structures and processes. The team also developed criteria to help SIFE prioritize its expansion efforts by country and manage its existing network of programs. As Rodel Foundation of Delaware and a result of the work, SIFE adjusted its strategic plan and Vision 2015 Implementation Team realigned its organization structure. These measures U S should help SIFE reach ever-greater numbers of students and maximize its social impact on targeted populations. Description: The Rodel Foundation of Delaware is a nonprofit organization whose mission is to “help Dela- ware create one of the finest public-education systems in Summer Search the nation.” The Vision 2015 Implementation Team, a U S subgroup of the steering committee of Delaware’s Vision 2015 education-reform initiative, seeks to guide that ini- Description: An organization whose mission is to “find tiative’s implementation. resilient low-income high-school students and inspire M  D 
  • 80. them to become responsible and altruistic leaders by pro- Challenge: The university wanted to merge with a re- viding year-round mentoring, life-changing summer expe- search institution, Forschungszentrum Karlsruhe. It riences, college advising, and a lasting support network.” sought a vision and plan for the merger that would en- The organization has seven offices nationwide and serves sure successful integration and satisfy the interests of the more than 700 students annually. respective “owners” of the university and the research institution, the state of Baden-Württemberg and the Fed- Challenge: Against the backdrop of a planned national eral Republic of Germany. expansion, Summer Search sought to determine whether it was using the right metrics to gauge results, the value Impact: BCG helped develop a compelling vision and created by each dollar invested in the program, and the plan that satisfied stakeholders and was embraced by the impact the organization was having on society at large. international academic community and the wider public. BCG also supported the implementation planning and Impact: BCG helped Summer Search identify and de- helped develop a marketing plan. The new institution, velop key metrics to track performance. It also helped Karlsruhe Institute of Technology (KIT)—with an annual estimate the impact that the program had on participants budget of more than €700 million and with over 7,500 and on society overall. The work le the organization employees—now has the means to become one of the better able to benchmark its operational performance world’s leading institutions in natural sciences and engi- against that of similar organizations in the United States neering. KIT is also well positioned to attract research and to articulate its value proposition to stakeholders, funding from third parties and to draw top research tal- potential sponsors, participants, and the community at ent from both Germany and abroad. large. Universität zu Köln Sutton Trust G U K Description: With more than 43,000 students, the Uni- Description: A trust, founded by BCG alumnus Sir Peter versity of Cologne is Germany’s largest institution of Lampl, that funds projects in the United Kingdom that higher education. provide educational opportunities for young people from nonprivileged backgrounds. Challenge: The university sought to substantially in- crease its fundraising capabilities so that it could enhance Challenge: The Sutton Trust sought to quantify the im- and expand its programs. pact of its investments. Impact: BCG and the university developed a new fund- Impact: BCG and the trust developed a methodology for raising plan, encompassing branding and positioning assessing returns on the trust’s projects and determined strategies and the identification of priority donor targets. that, on average, the projects yield a return of £15 to each The effort is expected to generate more than €10 million participant for every pound invested. The trust will use in additional annual income for the university within the the methodology and findings to prioritize its investments next three years. Already, €2.5 million have been raised and to help secure funding for its projects. It will also use in the first quarter of year one. them to encourage other educational bodies to adopt the cost-effective schemes that the team examined. w!se (Working in Support of Education) U S Universität Karlsruhe G Description: A nonprofit organization dedicated to “pro- viding educational support services nationwide, building Description: One of Germany’s leading technical univer- financial literacy, fostering business and social entrepre- sities. neurship, and preparing students for college and the  T B C G
  • 81. global workplace.” The organization targets secondary- Impact: BCG helped w!se develop a framework for pri- education systems in low- to moderate-income areas and oritizing its opportunities by cost-effectiveness, funding reaches approximately 25,000 students each year. availability, and student need. The team recommended that the organization leverage local economies of scale Challenge: The organization’s Financial Literacy Certifi- and continue to expand the program in the New York cation Program had grown rapidly over its first five years, City metropolitan area while simultaneously exploring serving more than 15,000 high-school students in the growth opportunities in other cities and states. With a 2006–2007 school year. The program had operated clear framework of priorities, the organization is now primarily in New York but had generated increasing in- able to proactively pursue the most promising growth op- terest from educators nationwide. The organization portunities in a systematic way. sought a strategy and plan for the program’s optimal ex- pansion. M  D 
  • 82. Community and Economic Development Our work in this category includes efforts in developed coun- ing and project tracking than would otherwise have been tries as well as in underprivileged or developing societies. We possible at this stage, given current project staffing and have partnered with governments, foundations, and nonprof- funding limitations.” it organizations to enhance local markets, create jobs, and encourage entrepreneurism. Cape York Regional Organisations A Atlanta BeltLine, Inc. (ABI) U S Description: Five nonprofit organizations that work to- gether to empower the indigenous people of Cape York, Description: The entity responsible for planning and ex- in Australia’s far north: Apunipima Cape York Health ecuting the development of the BeltLine, a proposed 22- Council, Balkanu Cape York Development Corporation, mile loop around Atlanta consisting of new parks—con- Cape York Land Council, Cape York Partnership Projects, nected by greenways with walking trails and bike and Cape York Institute for Policy and Leadership. paths—and a transit system surrounded by extensive mixed-use development. The BeltLine is projected to take Challenge 1: Cape York Institute for Policy and Leader- 25 years to complete and cost nearly $3 billion. ship sought assistance in developing and building sup- port for a welfare reform initiative that would help Challenge: ABI sought assistance in creating a program strengthen communities and reduce the region’s wide- management office, which would drive the project’s im- spread dependence on welfare. plementation. ABI also wanted to better understand sev- eral issues important to stakeholders and constituents, Impact: BCG helped the institute design and launch a such as how best to characterize and build support for trial welfare-reform effort in four Cape York communi- the proposed development and how to avoid and coun- ties, with a particular focus on housing, education, work teract the potential displacement of residents. reform, and the reestablishment of social norms. The trial won the endorsement of both the Australian Com- Impact: BCG and ABI developed the program manage- monwealth government, which committed to AU$48 mil- ment office and instituted governance structures, proce- lion in funding to support the project, and the Queens- dures, and tools to maximize its effectiveness. The team land state government, which committed an equivalent also conducted research and benchmarked other cities amount of funding and passed legislation to support that had undertaken similar efforts. According to ABI’s the trial’s objectives. Among the expected outcomes president and CEO, Terri Montague, the team’s work “has of the trial are improved literacy among students and provided a timely, fact-based ‘best practices’ platform an increase in the number of students who go on to sec- while also growing the BeltLine’s visibility and network ondary school; an increase in homeownership; and the among other cities. These efforts are now enabling clear- creation of 40 “real” jobs—that is, jobs that are not sub- er process definition and better-informed decision mak- sidized by the state—in the four communities.  T B C G
  • 83. Challenge 2: Cape York Institute for Policy and Leader- ums and sites. The work helped CCHR understand the ship sought a plan for improving educational outcomes financial, organizational, management, and other factors for Cape York students. to be considered in selecting a site and establishing the attraction. BCG then supported a working group that out- Impact: BCG helped the institute develop a proposed lined a vision and implementation plan for the center. Teach for Australia program that is based on the success- Currently, BCG and CCHR are focusing on design, content ful Teach for America program in the United States. The development, fundraising, and the establishment of a program would entice experienced teachers as well as board of directors. To date, CCHR has raised more than high-achieving recent university graduates to teach in re- $10 million and secured a donation of land worth mote areas by providing performance-dependent sti- $15 million. The team estimates that the center, once pends and intensive training in evidence-based teaching completed, will create 1,100 sustainable jobs, have an methodologies. BCG will continue to support the institute economic impact of $1.3 billion, and generate more than in making this proposal a reality. $50 million in tax revenues during its first ten years of operation. Also, aer the initial stages of the project, Challenge 3: Cape York Institute for Policy and Leader- CCHR asked the BCG principal leading the work to join ship, with BCG’s support, had developed the highly suc- the organization as its founding executive director; he is cessful Higher Expectations Program (HEP), an education- currently serving in that role and is on a leave of absence al initiative that provides scholarships and other financial from BCG. support to indigenous students from Cape York who seek to attend prestigious boarding schools in the state. HEP sought to expand its reach and offer similar services to Chicago 2016 indigenous students in other parts of Australia. U S Impact: BCG helped the institute develop a detailed plan Description: Chicago 2016 is a nonprofit organization for expansion, including criteria for the selection of stu- whose mission is to seek the privilege of hosting the dents and schools, quantification of the costs of imple- Games of the XXXI Olympiad in Chicago. mentation, and the identification of key partnerships needed for the effort to succeed. HEP expects the plan to Challenge: The BCG teams worked directly with the Chi- enable the organization to expand the program from its cago 2016 senior executive team on two core strategic current 38 students to 140 students within five years and issues related to Chicago’s Olympic bid. to generate significantly improved educational outcomes for those students. Impact: Although the details of the work are confiden- tial, the recommendations of the BCG team are helping the organization as it bids for the 2016 Olympic Games. Center for Civil and Human Rights Partnership (CCHR), Atlanta U S City of Cologne, Lord Mayor G Description: A nonprofit organization established in 2007 to advance the development of a planned $125 mil- Description: The mayor’s office of one of Germany’s lion center for civil and human rights in Atlanta’s down- largest and oldest cities. town district. Challenge: As part of a broader economic-development Challenge: CCHR sought support in thinking through effort, the mayor’s office sought to gauge the potential for questions about the content, size, location, and organiza- growth in the regional health-care industry and to de- tion of the planned center. velop a plan for achieving and leveraging that growth. Impact: BCG helped CCHR interview key stakeholders Impact: BCG and the mayor’s office determined that and benchmark existing civil- and human-rights muse- health care was one of the region’s most powerful en- M  D 
  • 84. gines of economic growth and that even more growth Impact: BCG helped CEW confirm and quantify the could be achieved through targeted investments in health problem, determine the structural and cultural issues care, such as bolstering capabilities at the region’s re- that are specific to the industry and that create obstacles search hospitals. To drive these efforts, the team estab- to women’s advancement, and identify actions that com- lished a regional network consisting of health care pro- panies could take and programs that CEW could launch viders and participants from other industries. to increase executive-suite opportunities for women. The work has raised the issue’s prominence among the indus- try’s senior leaders and laid the groundwork for City of Newark, New Jersey, Department change. of Economic Development U S Eberhard von Kuenheim Stiftung Description: The department responsible for all aspects G of city planning and economic development for the City of Newark. Description: A BMW foundation that seeks to initiate change through the sponsorship of entrepreneurial ideas Challenge: Newark’s deputy mayor sought to increase and projects in socially and economically underperform- the department’s efficiency and identify new ways to ing areas. drive the city’s economic growth. Challenge: The foundation sought a means to integrate, Impact: BCG supported the department on a number of on a sustainable basis, the more than 100,000 underpriv- initiatives. It helped it reorganize to increase efficiency ileged German adolescents who fail to gain access to the and advance departmental goals and strategy; develop German labor market each year. a strategy to attract retail businesses; launch the Brick City Development Corporation, a nonprofit entity that Impact: BCG and the foundation established a model will serve as the city’s key agent for economic develop- that leverages partners in business, politics, and educa- ment and the attraction and retention of businesses; and tion to create sustainable employment opportunities for identify opportunities to position Newark as a global youth in need. The model attempts to match individual transportation and logistics center. The efforts have al- skills with market demand for labor. Additionally, each ready had a broad range of positive effects on the city’s youth is supported by a mentor. The program was piloted economy. in 2008 with approximately 100 participants; a country- wide rollout, reaching up to 1,000 adolescents, is planned for 2009. Cosmetic Executive Women (CEW) U S Endeavor Description: A nonprofit trade organization of the beau- A, C, C,  M ty, cosmetics, fragrance, and related industries that seeks to catalyze women’s advancement by “helping to develop Description: A global nonprofit organization that seeks career contacts, knowledge, and skills of its members so to transform the economies of emerging markets by iden- that they may advance on both professional and person- tifying and supporting “high-impact entrepreneurs,” al levels.” whom it defines as those having “the biggest ideas and the most ambitious plans.” Endeavor has operations in Challenge: Although the beauty industry in the United ten emerging-market countries. States consists primarily of women, they are underrepre- sented at the most senior levels. CEW sought to better Challenge: Endeavor’s ongoing aim is to expand its im- understand the situation and then determine steps pact by providing more and better support to entrepre- that companies and the organization could take to ad- neurs in the countries in which it operates. BCG has dress it. supported Endeavor for several years in a range of ac-  T B C G
  • 85. tivities, including the selection of entrepreneurs, the de- market share. The foundation believes that the matrix, velopment of strategy, the strengthening of internal which is currently being used by a select list of business- processes, and support for events and workshops. But es, will help Spain’s large companies collectively maxi- BCG’s primary contribution has been to provide guid- mize the reach and effectiveness of their social impact ance to many of Endeavor’s chosen entrepreneurs, help- efforts, to the broad benefit of Spanish society. ing them navigate challenges in such areas as organiza- tion structure, market entry strategy, new-business development, performance measurement, and incentive Hudson Guild compensation. U S Impact: During 2007, BCG consultants participated in En- Description: A local community-service provider in the deavor’s local and regional selection panels, spoke and Chelsea neighborhood of New York City whose aim is to moderated panels at the organization’s annual confer- build community through a broad range of programs and ence in Argentina, and supported seven Endeavor entre- services. preneurs. Examples of the work supporting entrepreneurs include helping a Mexican entrepreneur develop a mar- Challenge: The organization sought options for address- ket segmentation and expansion plan for his agricultural ing the near-term cash-flow issues it was facing. It also business and helping a Chilean manufacturer of drilling wanted to quantify the total cost of each of its service equipment and consumables develop a new growth strat- programs and establish a framework to support decision egy and plan for realizing synergies in its current business making regarding its programming. units. BCG also helped a business-news-service company covering Latin America develop a new client-segmenta- Impact: BCG helped Hudson Guild identify financial tion strategy, and it helped a Chilean private-security firm shortfalls and develop a plan to return to breakeven op- refine its business model—including its value proposi- erating status. It also helped the organization understand tion, product mix, and pricing strategies—and develop a the cost of operating each program and develop a deci- regional growth strategy. Additionally, two BCG consul- sion framework for evaluating financial and social tants on leave of absence worked full-time for Endeavor tradeoffs among its programs. The work allowed the or- for more than six months. ganization to win the confidence of donors and secure additional funding, identify opportunities for achieving savings in long-term procurement costs through the rene- Fundación Empresa y Sociedad gotiation of payment terms with vendors, and ultimately S maintain its full suite of programs. Description: A network of large companies in Spain that “centers its activity on promoting business action to re- London Organising Committee of the duce the proportion of citizens who are socially disadvan- Olympic Games and Paralympic Games taged or at risk of exclusion.” (LOCOG) U K Challenge: In an effort to advance its mission, the foun- dation sought to create a “comparison analysis matrix” Description: The committee responsible for organizing, that would allow Spain’s large companies to measure marketing, and staging the Olympic Games and Paralym- their social impact activities and compare them with pic Games in London in 2012. those of their peers. Challenge: Funds for staging the Olympic Games are Impact: BCG helped the foundation develop an innova- raised primarily through ticket sales, sponsorships, broad- tive measurement methodology that considers both the casting, and merchandising. LOCOG sought a merchan- societal consequences of a company’s social impact ef- dising strategy for the games that would maximize reve- forts and the effect on the company itself, gauged by such nues and make the organization less reliant on other criteria as employee satisfaction, brand strength, and revenue sources. M  D 
  • 86. Impact: BCG helped LOCOG identify and size merchan- Impact: BCG has worked with MFS for ten years; this dising opportunities, develop a strategy for capturing project was the third five-year strategic plan it has helped them and for promoting the brand among key constitu- the organization develop. In this effort, BCG helped MFS ents, and create an implementation plan, including time- cra a growth strategy that emphasized increasing pen- lines of activities and staffing and organizational implica- etration in its seven target communities. The approach tions. The work should allow LOCOG to meet and will have tremendous impact on underserved families in potentially exceed its revenue target. those communities. To fund this growth and maintain fi- nancial stability during a climate of flat growth in contri- butions from governments and foundations, the team Maeil Business Newspaper recommended a fundraising campaign focused on MFS’s S K major donor segment and developed a set of next steps. The organization is currently implementing the team’s Description: South Korea’s leading business daily, with a recommendations. circulation of more than 900,000. Challenge: The organization sought to make the case Metropolitan Planning Council (MPC) among opinion leaders in South Korea for strengthening U S the country’s financial-services sector and establishing it as the backbone of the nation’s economy. Previous efforts Description: A nonprofit, nonpartisan group of Chicago- by the government to achieve these goals had not gained region business and civic leaders committed to “serving any lasting momentum. the public interest through development, promotion, and implementation of sound planning policies so all resi- Impact: BCG and the newspaper presented their find- dents have access to opportunity and a good quality of ings to approximately 400 of the country’s opinion lead- life, the building blocks of a globally competitive Greater ers, including the current president, policymakers, and Chicago region.” business leaders. The team convincingly detailed how upgrading the financial services sector could drive Challenge: MPC sought to strengthen its performance- economic growth and create jobs, and it recommended management processes. action steps, including deregulation, that policymakers and business leaders should take. The work is expected Impact: BCG helped MPC identify opportunities for op- to advance the cause for upgrading and introducing timizing how it sets goals, measures its progress against global standards to South Korea’s financial-services them, holds staff accountable, and uses objective data to sector. improve. MPC utilized the recommendations to guide a reorganization of its staff and volunteers and to inform its work plan for 2008, which received board approval. Metropolitan Family Services (MFS) U S New Sector Alliance Description: A nonprofit organization that helps low- U S and moderate-income families in the Chicago area raise their children, care for vulnerable family members, and Description: A nonprofit strategy-consulting firm that achieve economic stability. MFS, the largest provider of seeks to “accelerate social change by strengthening orga- counseling services in the Chicago metropolitan area, of- nizations today while developing leaders for tomorrow.” fers a variety of services including legal assistance, policy New Sector Alliance works in partnership with leading advocacy, and youth development. academic institutions and consulting firms to provide guidance to nonprofit organizations through structured Challenge: The organization sought to develop a five- consulting engagements. It also trains and supports stu- year strategic plan focused on growth and revenue gen- dents and consultants, helping them become lifelong eration. agents of social change.  T B C G
  • 87. Challenge: New Sector Alliance works with a wide range Description: A nonprofit organization that seeks to pro- of nonprofit organizations to help them achieve their mote and facilitate business relations between Switzer- goals. BCG staff act as mentors and coaches to consulting land and the United States. teams of MBA and undergraduate students who lead these efforts. Between September 2006 and December Challenge: SACC sought to understand the impact of 2007, 55 BCG staff members worked on 56 projects for 43 multinational companies on the Swiss economy and to nonprofit organizations. determine how Switzerland could increase its attractive- ness to those organizations. Impact: Representative results include creating a nation- al expansion strategy for an organization that provides Impact: BCG helped SACC develop a better understand- free baby supplies to impoverished families; developing a ing of how multinationals make location decisions for tailored “balanced scorecard” for an organization dedi- their different operations. The team also developed a cated to meeting the demand for talent in the nonprofit five-point program to increase Switzerland’s attractive- sector; and designing a branding and marketing strategy ness to multinationals. for an urban farm that provides locally grown organic food to the community and job training to the homeless. Toronto Region Research Alliance (TRRA) Schwab Foundation for Social C Entrepreneurship C, F, G, G B, Description: A nonprofit organization dedicated to po- H,  S sitioning the Toronto region as a world center for re- search and research-driven industry. To achieve this Description: A foundation that seeks to identify and sup- goal, TRRA acts as a catalyst and an advocate for re- port “social entrepreneurs”—that is, founders of innova- search-intensive investment and public-private research tive companies or nonprofit organizations that emphasize capacity. maximizing social impact rather than profit. Challenge: TRRA sought to develop a multistakeholder Challenge: The Schwab Foundation sought assistance in marketing campaign to attract research-intensive invest- managing its annual Social Entrepreneur of the Year con- ment to the Toronto region. test in Canada, France, Germany, Great Britain, Hungary, and Switzerland. The event, held in 30 countries world- Impact: BCG worked with the organization to develop a wide, offers a platform for promoting social entrepreneur- targeted, cluster-based approach to economic develop- ship. ment that would identify high-priority sectors and spe- cific company targets. This approach has become the Impact: BCG provided broad support for the contests, basis for collaborative CEO-level sales pitches aimed at soliciting applications from social entrepreneurs, screen- attracting research-intensive investment to the Toronto ing and vetting candidates, preparing the juries that region. would judge the competition’s final stage, working with the media to promote the event, and helping to organize the award ceremonies. The event helped spread aware- United Way of Metropolitan Chicago ness of social entrepreneurship in the six countries and (UWMC) drew particular attention to the finalists’ organizations, U S helping them attract investors. Description: The largest private funder of health and human-services programs in metropolitan Chicago. Swiss-American Chamber of Commerce UWMC seeks to provide “the leadership and resources it (SACC) takes to help people across Chicagoland become inde- S pendent.” M  D 
  • 88. Challenge: UWMC was undertaking a major effort to WorkVentures Group transition its funding toward four distinct health and A human-services issues. As part of this effort, UWMC sought to redesign the process by which it allocated funds Description: A nonprofit organization committed to “so- to programs and determine how it should split its funding cial development and the empowerment of disadvan- among its priority issues. taged people” in Australia. It provides community-devel- opment , employment , and learning services. Impact: BCG helped UWMC design a new funding WorkVentures also has operations in electronics repair process that will more efficiently and effectively distrib- and in IT and communications; it uses these programs ute the organization’s $56 million in annual received both as training vehicles for the disadvantaged and as funds. The process will ensure that UWMC’s resources sources of revenue to help it advance its mission. are focused on those agencies that will have the greatest impact—and on the specific programs they operate. Challenge: The organization’s Connect IT project pro- The process will also make optimal use of the time vides access to affordable technology—specifically, low- and resources of UWMC’s staff and partner organiza- cost refurbished personal computers—to low-income tions. households, schools, and nonprofit organizations. Con- nect IT was looking for ways to target other nonprofit organizations both as potential clients for its IT services Wirtschaftsrat Deutschland and as new channels for delivering its development ser- G vices to disadvantaged people. Description: The Wirtschaftsrat considers itself the Impact: BCG helped the organization formulate a strat- “voice of entrepreneurship” within German politics. Rep- egy, identify and prioritize targets, and develop an imple- resenting a community of more than 11,000 German mentation plan. company owners and managers, the organization, in the tradition of Ludwig Erhard, fights for political reforms to strengthen the social market economy. World Future Council (WFC) G Challenge: German politics is facing a rising number of political representatives and groups, all competing for Description: A global forum consisting of 50 eminent influence and public attention. Against that backdrop, the personalities around the world that “informs and edu- Wirtschasrat sought a strategic review of its “competi- cates opinion leaders about challenges facing future gen- tive position” in terms of political differentiation and erations while providing them with practical solutions.” brand, membership structure, communication, regional focus, and emphasis. Challenge: WFC sought to update its strategic plan, pri- oritize its current and potential initiatives, define respon- Impact: On the basis of quantitative and qualitative sibilities among its various governing bodies, and improve analyses; interviews with politicians, key Wirtschasrat communication throughout the organization. members, and media representatives; and a survey of the organization’s membership, BCG and the Wirtschasrat Impact: BCG helped WFC address all four goals. WFC’s conducted a “strategic health check” and developed executives say they believe that BCG’s involvement recommendations for improving the organization’s stra- helped WFC align its resources more effectively, facilitate tegic positioning and operational structure. The work communication processes among its highly diverse should help the Wirtschasrat—an important voice in international team, and strengthen the organization’s German politics and among corporations and the pub- overall impact in its dealings with political and corporate lic—advance its cause of driving economic reform in institutions. Germany.  T B C G
  • 89. Arts and Culture BCG supports a variety of institutions and organizations in tion of excellence in the art of film, television, and digital this sector, such as museums and orchestras. media.” Challenge: AFI sought to develop a broadband strategy Abadia de Montserrat that supported the organization’s mission, made the S brand more attractive to a growing demographic, and generated revenue for the institute’s national programs. Description: A Benedictine monastery and tourist attrac- tion “where spirituality and culture come together against Impact: BCG helped AFI identify several high-potential a spectacular natural backdrop.” The site receives more opportunities in the broadband field, one of which has than 2 million visitors a year; the organization manages been approved for implementation by AFI’s board of di- a budget of approximately €20 million. rectors. BCG continues to support the initiative as it moves through detailed launch planning. Challenge: Abadia de Montserrat sought to identify new revenue opportunities and improve its efficiency in order to buttress its near-term financial health and ensure the Établissement Public du Grand Palais organization’s long-term viability. des Champs-Élysées (EPGPCE) F Impact: BCG helped Abadia de Montserrat identify sev- eral revenue-generating possibilities (including initiatives Description: A recently created, state-sponsored entity targeting pricing, tourist services, branding, and fundrais- charged with managing and promoting the newly re- ing); create and implement a budgeting tool that would opened Grand Palais exhibition hall, which had been help ensure cost control and eliminate budgeting devia- closed for renovations for 12 years. tions; and develop a plan for a more effective organiza- tion structure. The work will strengthen the organiza- Challenge: The agency sought to develop a comprehen- tion’s financial position considerably, allowing for the sive business strategy for the hall, including plans for the preservation of Abadia de Montserrat’s cultural legacy staging of exhibitions and events, marketing, and fund- and historic grounds, as well as the continuation of its raising. educational programs and charitable efforts. Impact: BCG helped the agency develop a shared vision for the use of the Grand Palais; develop a business model American Film Institute (AFI) for the hosting of events, including pricing strategies and U S guidelines for content; identify other relevant economic opportunities, such as the possible creation of a hotel on Description: A national institute that provides “leader- the premises and the renegotiation of a restaurant-leasing ship in screen education and the recognition and celebra- agreement; and create marketing and investment plans. M  D 
  • 90. The work is expected to generate more than €3.5 million ing processes, and development of a sustainable financial for EPGPCE by 2010 and enable the hall to operate prof- model for fundraising and property management. The itably without state subsidies over the longer term. team also identified target cultural sites for acquisition and drew up fundraising plans. The work is expected to lead to an additional €50 million in fundraising over five Fondazione Palazzo Strozzi years and the possibility of doubling the number of his- I toric and naturalistic sites under management. Description: A public-private partnership established in Florence for the purpose of better managing and promot- French Ministry of Culture ing the city’s art and cultural treasures. F Challenge: Believing that it lacked the necessary proc- Description: The government agency responsible for esses, tools, orientation, and management practices to promoting and protecting the arts in France. meet its goals, the foundation sought to institute them. Challenge: The agency sought to explore the possibility Impact: BCG worked with the foundation on a range of of instituting an annual contemporary art exhibition, to initiatives, including organizational benchmarking and be held at the newly renovated Grand Palais exhibition design, process standardization, activity planning, and hall in Paris. financial analysis. The effort has afforded the foundation greater control of its finances, more motivation as an or- Impact: BCG helped the agency define a concept for the ganization, and better performance in its sponsored exhi- event, create a business plan, and support its implemen- bitions. Over the longer term, it should help the founda- tation. The inaugural exhibition, Monumenta 2007, drew tion maximize its impact on the city’s art and culture and more than 135,000 visitors. The event has already been on the local economy: Fondazione Palazzo Strozzi esti- followed up with Monumenta 2008, which provided a mates that its efforts could ultimately translate into an showcase for the country’s contemporary art and artists. annual economic gain of approximately €100 million for the local economy. The Guy & Myriam Ullens Foundation C Fondo per l’Ambiente Italiano (FAI) I Description: A nonprofit organization whose aim is to promote contemporary Chinese art. Its founder, Baron Description: A private nonprofit trust whose mission is Guy Ullens, is a prominent Belgian philanthropist and to help protect, preserve, and enhance Italy’s artistic and contemporary art collector. environmental heritage. Challenge: The foundation sought BCG’s help to estab- Challenge: FAI wanted to increase its reach and impact, lish the Ullens Center for Contemporary Art (UCCA) in a raise its profile among the Italian public and institutions, renovated armaments factory in the 798 Art District in and improve the economic sustainability of its property- Beijing. management operations. To address these challenges, it sought a reassessment of its long-term vision, help iden- Impact: BCG provided broad support to the foundation, tifying growth opportunities, and a new business plan to from idea generation in mid-2005 to UCCA’s launch in capitalize on those opportunities. November 2007. BCG also helped the foundation develop potential business models to ensure the venue’s long- Impact: BCG helped FAI develop a three-year business term financial sustainability. UCCA’s opening generated plan. The effort encompassed clarification of the trust’s considerable interest from the global art world and wide- mission, creation of a new corporate-governance model, spread media coverage. Among the positive reviews was redesign of the organization to streamline decision-mak- this quote from the Art Newspaper: “In years to come, the  T B C G
  • 91. opening of UCCA may be seen as one of the defining mo- dation for significant program development in the com- ments in Chinese art.” UCCA played a prominent role as ing years. a destination for visitors during Beijing’s hosting of the 2008 Olympic Games. New York City Opera (NYCO) U S Luminato: Toronto Festival of Arts and Creativity Description: One of the country’s foremost opera com- C panies. Description: A nonprofit organization dedicated to de- Challenge: NYCO sought to understand the implications veloping one of the world’s leading multidiscipline, inter- of the vision of its incoming artistic director on its busi- national festivals of arts and creativity. ness model and to determine the organization’s strategic options for the year before the new director arrived. Challenge: Following the festival’s conceptualization in 2006—an effort in which BCG was integrally involved— Impact: Incorporating financial modeling, scenario plan- the organization sought help in launching its inaugural ning, and benchmarking of other institutions, BCG helped festival in June 2007. NYCO understand what the organization would need to do financially to support the vision of its incoming artistic Impact: BCG helped support the launch on many fronts, director. It also helped NYCO formulate a near-term strat- including defining objectives, creating a business plan, egy for the transition. and securing talent and more than $10 million in funding. The festival was a major success, drawing more than 1 million people and having an estimated economic impact on the Toronto region of $80 million to $100 million. The festival and its planning have also introduced a more col- laborative, multistakeholder approach to the development of the arts in Toronto; they have also exposed a whole new segment of the population to art and creativity. Moscow Symphony Orchestra (MSO) R Description: Founded in 1989, the MSO is Russia’s first private orchestra, functioning without state support. Challenge: Faced with unpredictable continuity of its sponsorship revenue and rising costs for venue space, or- chestra members’ salaries, and advertising, the MSO sought to expand its fundraising capabilities. Impact: BCG helped the MSO analyze its market image and determine ways to improve it; develop an action plan and marketing materials to attract new sponsors; and es- tablish a board of trustees and a development office to execute the strategy. The measures are expected to raise sponsorship support for the orchestra by a factor of two or three over current funding levels and provide a foun- M  D 
  • 92. BCG Contributors We extend a special thanks to the BCG employees and Bretin, Mairi Brewis, Volker Brinkmann, Christophe alumni who contributed to the projects profiled in this Brognaux, Prisca Brosi, Eva Bruch, Bernhard Bruhn, report; the contributors are listed alphabetically on these Danielle Buckley, John Budd, Kate Burgin, Hans-Paul pages. Bürkner, Adam Burrows A C René Abate, James Abraham, Antonio Achille, Gypsy Sarah Cairns-Smith, Dirk Calcoen, Amy Calcutt, Achong, Kara Adamon, Christopher Ader, Karen Adler, Vincenzo Campanale, Hope Carlson, Miguel Carrasco, Marco Airoldi, Tom Albert, Pol Alcazar, Renaud Amiel, Joseph Carrubba, Sabrina Casalta, Nicole Cave, Ioana Julien Ampollini, Andres Anavi, Jörn Andreas, Jim Cernat, Evan Chadakoff, Steven Chai, Polly Chan, Andrew, Cornelius Anger, Benedetta Angrilli, Rameez Jacqueline Chapman, Nidhi Chappell, Veronica Chau, Ansar, Sri Aparajithan, Christine Apold, Sebastian Arendt, Mark Chen, Michael Chen, Troy Chen, Nelly Cheng, Florian Arndt, Ulrike Arnhold, Abby Asare, Nils Victor Chevallier, Rohit Chhapolia, Laura Chias, Asmussen, Ina Astrup, Silke Aumann Giacomo Chiavari, Stephen Chien, Vincent Chin, Hanna Chiou, Minsook Cho, Peter Cho, Stephani Cho, B Patrice Choffat, Siao Fan Choo, Michael Choy, Jim Christodouleas, Domenico Cipolla, Babette Claas, Dave Stefan Babel, Daniel Baer, Jens Baier, Allison Bailey, Clark, Gale Clark, John Clarkeson, Julian Clemenz, Mark Graham Balch, Andrea Baldwin, Aneesha Banerjee, Collins, Jordi Comas, Tamara Cooke, Jill Corcoran, Subho Banerjee, Seema Bansal, Lorenzo Barbieri, Philippe Cornette de Saint Cyr, Agustín Costa, Jonathan Stefanie Bareis, Max Barry, Svetlana Basovsky, Silvia Cowan, Doug Crawford, Elisa Crotti, Brian Cu, Jamey Battigelli, David Baumgarten, Douglas Beal, Mark Beatty, Cummings Jorge Becerra, Johanna Belda, Alison Bell, Lucy Bellisario, Milena Belovejdova, Emanuele Belsito, Scott Belton, Marc D Benayoun, Tim Bennett, Ralf Berger, Alexander Bernert, Julie Bernollin, Dirk Bevers, Rishi Bhalerao, Vikram Marc Dahlke, Danny Dale, Pål Dale, Christopher Daniel, Bhalla, Arindam Bhattacharya, Sandeep Bidari, Charlotte Iris Danke, Anne Barbara Davidsson, Rich Davies, Niamh Biehl Laursen, Alexa Bieler, Angela Birke, Thomas Dawson, Pieter de Bey, Jesús de Juan, Joost de Kock, Mara Bischof, Rolf Bixner, Andy Blackburn, Philippe Blank, De Monte, Phil De Villiers, Olfert de Wit, David Dean, Jessica Blankshain, Tobias Blaschke, Nick Blawat, Lars Justin Dean, Anne-Marie Deans, Eloi Déchery, Mukut Blinda, Till Böhmer, Jürgen Bohrmann, June Boo, Jan Deepak, Jan Deepen, Martin Dehli, Michael Deimler, Borkowski, Michael Borß, Stefan Borsutzky, Alexis Craig della Penna, Peter Delling, Pierre Derieux, Stephan Bouanani, Pascale Bouger, Sophie Bourset, Savina Dertnig, Benjamin Desalm, Stanislas Descours, Trey Boyadjieva, Colin Boyle, Christoph Brack, Jesse Devey, Mythili Devineni, Ralf Dicke, Gregor Dillenius, Brackenbury, Christian Branum, Chris Braun, Vincent Matt Diver, Diana Dosik, Enrique Duarte Melo, Mike  T B C G
  • 93. Duffy, Matt Dunbar, Andrew Dunn, Sraboni Dutta, Mike Henning, Christian Hense, Johannes Herrmann, Dieter Dybbs, Tom Dye, Lisa Dyson Heuskel, Christoph Hilberath, Sebastian Hild, Gerry Hill, Yumi Hiratani, Philip Hirschhorn, Kasper E Hjorteberg, Edgar Ho, Mac Hodell, Robert Hof, Martin Hoff, Axel Hofmann, Kristine Holland, Karsten Rory Eakin, Ashley Egan, Søren Egholm, Ruth Hoppe, Daniela Horning, Chris Howe, Grace Huang, Ehrenfeuchter, Nikolaus Ehrensberger, Petter Eilertsen, Lydie Hudson, Philipp Hugelmann, Caitlin Hughes, Mehdi El Hajoui, Kelly Ellis, Bernd Elser, Gerald Engel, Nancy Hulcy, Johannes Hunger, Eric Hutchinson, Jens Joachim Engelhard, Harald Engelke, Petra Englberger, Hutzschenreuter Florian Erbeldinger, David Erdreich, Stephanie Ernst, Susanne Etzel, Veit Etzold I F Hideaki Imamura, Stefan Imme, Andrea K. Ingrisch, Alan Iny, Loui Itoh Pauline Fan, Hady Farag, Steve Fechheimer, Matthias Feix, Frank Felden, José Manuel Fernández-Bosch, Javier J Fernández-Seara, Diana Festl-Pell, Dominic Field, Rüdiger Filbry, Stan Finch, Andrea Fiorani, Geir Flæsen, Alastair Alan Jackson, Marcel Jaeggi, Jens Jahn, Matthias Jäkel, Flanagan, Moritz Fliescher, Ronny Flügge, Chloe Flutter, Wanda Jakob, Amber Jalan, Liyana Jamil, Jan Jamrich, Colm Foley, Valeska Foltin, Patrick Forth, Sylvain Franc Dan Jansen, Carly Janson, Sabine Jaritz, Jessica Järkvik, de Ferriere, Mark Freedman, Florian-David Frey, Marc-Oliver Jauch, Elaine Jen, Martin Jensen, Andreas Dominique Friederich, Ueli Friedli, Jan Friedrich-Rust, Jentzsch, Pablo Jerez, Ashish Jhina, Micah Jindal, Cristian Carsten Friedrichs, Anna Fromme, Pella Frost, Benjamin Jitianu, Nick Jivasantikarn, Fredrik Johansson, Barry Frowein, Xiaojing Fu, Kati Fuisz, Alex Fung Jones, Philipp Jostarndt, Junaidi Junaidi G K Susanne Gaede, Yves-André Gagnard, Cesar Galan, Ulrike Daniel Kägi, Malte Kalkoffen, Joern Kallmeyer, Rajit Garanin, Gunnar Garbe, Sophie Gassee, Christoph Gauger, Kamal, Annette Kämpf-Dern, Hiroshi Kanno, Jon Kaplan, Michael Gebhard, James Geddes, Xavier Genis, Carsten Sapna Kapur, Atsushi Kawaguchi, Yukie Kawamura, Ralph Gerhardt, Beth Gertz, Reggie Gilyard, Marin Gjaja, Esther Kempe, Simon Kennedy, Nick Kephart, Alyza Tanu Goel, Sharad Goenka, Eugene Goh, Aykan Keshavjee, Jamil Khan, Nadeem Khan, Dayoung Kim, Gokbulut, Simon Goodall, Katie Goodwin, Adam Gordon, Yong Bum Kim, Arno Kircher, Makio Kitazawa, Andreas Gili Gordon, Tim Gordon, Phil Gormley, Kaelin Goulet, Klar, Michael Klein, Maik Kleinschmidt, Fernando Antoine Gourevitch, Oliver Graham, Annemarie Grandke, Koch, Jasper Koch, Martin Koehler, Birgit Koenig, Katie Josh Gray, Ryan Greene, Astrid Greiser, Greta Greve, Koenig, Michael Kofluk, Kim-Wee Koh, Rüdeger Köhler, Melissa Griffith, Matthias Gröbner, Randy Grow, Gerald Philipp Kolo, Andreas Koppitz, Lara Koslow, Tejus Kothari, Gruber, Nick Grudin, Gracia Gu, Jose Guevara, Fabian Lukas Kotulla, Bernhard Kowatsch, Debbie Kozar, Carsten Günther, Lu Guo Kratz, Michael Krautmacher, Sascha Kreiskott, Matthew Krentz, Miriam Krieger, Fabian Kröher, John C. Krzywicki, H Daniel Kukla, Laura Kulick, Amit Kumar, Uttam Kumbhat, Tim Kunde, Ongki Kurniawan, Torsten Kurth, Steffen Ralph Häberli, Kai Habermann, Annette Häfele, Lukas Kusterer Haider, Chelsea Hamilton, Volker Hämmerle, Mike Hammett, Ingrid Hammond, Pia Hardy, Dirk Harlacher, L Chris Harlan, Jens Harsaae, Christian Hartenstein, Thorsten Harzer, Kelly Hatcher, Max Hauser, Sara Federico Lalatta, Mathieu Lamiaux, Kirsten Lange, Klaus Hayward, Martin Hecker, Axel Heinemann, Jan Heise, Langner, James Larson, Adam Lazareck, Chien Lee, Kevin Wilderich Heising, Kai Heller, Brad Henderson, Liz Lee, Viktor Lee, Francesco Legrenzi, Sandra Lehmann, M  D 
  • 94. Claudius Leibfritz, Edeltraud Leibrock, Heiner Leisten, O Heiko Lenhard, Shoshannah Lenski, Dennis Lentz, Eduardo León, Casey Leonetti, Maile Lesica, Frank Analeah O’Neill, Mughda Oak, Vicky Obst, Jorge Lesmeister, Matt Lesniak, Richard Lesser, Zach Levine, Ontiveros, Stefan Opel, Robert Opp, Sonja Ossig, Tom Lewis, Eric Li, Fang Li, Linda Li, Michelle Li, Kenneth Christopher Oster, Mark Ostermann, Naoki Ota, Holger Liao, Anna Linderum, Sylvia Lipp, Alison Little, Helen Liu, Ottleben, Antwane Owens, Toby Owens Min Liu, Derek Locke, Carly Loeb, Anna Lögters, Jessica Lohmann, Carl Frederik Loos, Philipp Loosen, Emilia P Lopez, Guillermo Lopez Vellarde, Markus Lorenz, Sönke Lorenz, Charmian Love, Elizabeth Lowenthal, Jim Lowry, Jasmine Pachnanda, Alex Pak, Elena Pallotta, Tyce Mark Lubkeman, Nathan Lucht, Emily Ludwig, Vladimir Palmaffy, Eric Paradise, Daniel Paul, Nicole Paustian Lukic, Lucy Luo, Ying Luo, Caroline Luttenberger, Tom Egede, David Pecaut, Beau Peelle, Ignacio Pena, France Lutz, Paul Luzak, Elizabeth Lyle, Mike Lyons M. Perier, Tal Pery, Markus Peterseim, Alice Peterson, Beth Petrey, Amadeus Petzke, Jan Pfeiffer, Michael M Pfeiffer, Walter Piacsek, Nicola Pianon, Michele Pikman, Boriwat Pinpradab, Michael Plankensteiner, Laura Po, Martin Ma, Jan Willem Maas, Moritz G. Maaß, Bharat Poddar, Nicolas Pöltl, Glenn Poppe, Christine Sebastiano Macchi, Fernando Machado, Andrew Mack, Poppenhusen, Nicolas Pott, Jamal Powell, Kim Powell, D.G. MacPherson, Amara Madu, Izabella Maholanyi, Marc Powell, Anthony Pralle, Roger Premo, Caroline Jan Majer-Leonhard, Arpit Malaviya, Gijs Manintveld, Preston, Fernando Prieto, William Pritchett, Jonas Prudlo, Sharon Marcil, Iván Martén, Ripley Martin, Cesar J. Puckett, Tony Pulice Martinez, Florian Marty, Andy Marwaha, Jasper Masemann, Dave Matheson, Anupam Mathur, Pál Q Mátyás, Luciano Mazzone, Stacy McAuliffe, Lane McBride, Ted McElroy, Adrian K. McKemey, Shamit Mehta, Karsten Sofina Qureshi Meier, Hubertus Meinecke, Antonella Mei-Pochtler, Molly Melican, Martin Metzker, Jörg Meyer, Ralf Meyer, David R Michael, Eike Michaelis, Holger Michaelis, Signe Michel, Jason Miller, Jim Minifie, Rainer Minz, Michelle Mion, Martin Raab, Stacie Rabinowitz, Maximilian Rabl, Jyoti Clemens Mirbach-Harff, Aditi Misra, Takashi Mitachi, Rajagopal, René Rambusch, Daena Ramiah, Kiran Rao, Laura Miyakawa, Makiko Mizutani, Tobias Modjesch, Deepak Ravindran, Nor Azah Razali, Inder Reddy, Homa Mojtabai, Grégoire Monconduit, Adrian Monsalve, Jonathan Redmond, Martin Reeves, Nils Rehbein, Rainer Kim Montgomery, Riccardo Monti, Austin Moorhead, Reich, Julia Reichert, Cory Reinbold, Felix Reszewski, Abigail Moreland, Benjamin Mosig, Oliver Mosmann, Byung Nam Rhee, Carl Richers, Katharina Rick, Dave Ellie Moss, Guido Mottini, Jean Mouton, Ferdinand Mück, Rickard, Nneka Rimmer, Eric Rimmke, Dimitrios Ulrich Mühlner, Fabian Müller, Jonathan Müller, Manfred Rizoulis, Hannah Roberts, Robert Roberts, Owen Müller, John Mulliken, Zarif Munir, Felix Münnich, Patrick Robinson, Renata Rodrigues, Andrew Rodriguez, Javier Musch, Federico Muxi Puig, Paolo Rohr, Kai Roolf, John Rose, Justin Rose, Esther Rosemond, Dru Rossbacher, Christoph Rothballer, N Carolin Rotter, Martin Rovers, Holger Rubel, Leonardo Rubinstein, Andreas Ruks Mariya Nacheva, Junko Nagashima, Elfrun Nägele, Ed Naim, Srivatsa Narasimha, Hemlata Narasimhan, S Dan Nash, Philipp Nellessen, Alex Nelson, Johanna Nemson, Roanne Neuwirth, Wei King Ng, Anne Nguyen, Dan Saacks, Holger Sachse, David Sadoff, Zach Safir, Ron Nicol, Betsy Nielsen, Kirsten Nienhuis, Gustavo Rohan Sajdeh, Kraig Salvesen, Stefan Salzer, Ann Carolin Nieponice, Jyoti Nigam, Mirko Nikolic, Tony Nimeh, Amit Samouel, Ameeth Sankaran, Justin Santistevan, Pedro Nisenbaum, Julia Nißlein, Erin Nixon, Kunihisa Noro, Santos, Aaron Sathre, Shaloo Savla, Akshay Saxena, Kate Manuel Nothelfer, Gabrielle Novacek, Christian Novosel Sayre, Yvonne Schade, Enrico Schäfer, Ivo Schaffer, Victor  T B C G
  • 95. Scheibehenne, Peter Scheideler, Hubertus Scherer, V Matthias Scherer, Karin Schetelig, Hanns Martin Schindewolf, Ulrich Schlattmann, Daniel Schlecht, Nithya Vaduganathan, Marco Valentini, David Valladolid, Kathrin Schlipf, Oliver Schlodder, Kathrin Schmid, Marc Stefano Valvano, Bruno van Lierde, Ernst van Orsouw, Schmidt, Patrick Schmidt, Alexander Schmitt, Tobias Laurent van Velthoven, Heidi Vanderbilt-Brown, Gabriele Schmitter, Christian Schmitz, Matthias Schoen, Dennis Vanoli, Brad VanTassel, Chalothorn Vashirakovit, André Schöneborn, Benjamin Schroeter, Stephan Schulze, Ulrik Véissid, Pamela Velarde, Clara Vergara, Nick Vidnovic, Schulze, Patrik Schulz-Vanheyden, Thorsten Schütt, Alberto Villa, Ulrich Villis, Rohit Vohra, Nicole Voigt, Albrecht Schütte, Miriam Schütte, Markus Schwaigkofler, Thomas von Hake, Arist von Harpe, Mia von Koschitzky, André Schwämmlein, Katharina Schwartau, Gunther Henning von Kottwitz, Tom von Oertzen, Friederike von Schwarz, Matthias Schwenke, Achim Schwetlick, Redwitz, Mathias von Waldenfels, Ankur Vora Rosemary Scozzafava, Zhimin Seetoh, Linda Segre, Andrea Seier, Sascha Seifert, Verena Sengpiel, Shirin W Sharif, Doug Shipman, Lamberto Siega, Michael Silverstein, Rusty Silverstein, Giacomo Silvestri, Georg Alexander Wachtmeister, Christian Wagener, Joel Simson, Konark Singh, Abheek Singhi, Andrew Slater, Wagner, Kim Wagner, Decker Walker, Bernd Richard Smith, Taylor Smith, Marty Smits, Daniel Waltermann, Stefanie Walther, Jing Wang, Hans Olaf Solbach, Marie Solem, Neil Soman, Jaeyong Song, Péter Warning, Julia Warren, Ruchi Warrier, Julia-Christina Soós, Brad Soper, Björn Sossong, Nick South, Nick Wasilke, Amelia Waters, Yana Watson, David Webb, Spitzman, Lori Spivey, Shelley Spring, V. Srikant, Sara Judith Weberhofer, Jake Wegrzyn, Marni Weil, Florian Staats, Anna Stähr, Sebastian Stange, Doug Staudmeister, Weiß, Daniel M. Welberts, Moritz Werner, Brent West, Delaney Steele, Hanno Stegmann, Andrea Stenger, Tom Stephen Whitehouse, Adam Wible, Alfred Wiederer, Stenhouse, Philipp Stephan, Karen Sterling, Carl Stern, Elmar Wiederin, Scott Wilder, Frauke Wildvang, Sven Anna Stetsovskaya, Todd Stevens, Lisa Stewart, Georg Wilhelm, Florian Wilken, Matthias Wilnhammer, Callum Sticher, Matt Stover, Cosima Strasser, Armin Strbac, Wilson, Joanne Wilson, Meike Winter, Alan Wise, Tobias Streffer, Sebastian Stricker, Matt Strickler, Trish Angelika Witt, Matthias Wittkowski, Tobias Wolf, Annette Stroman, Peter Strüven, Nirupama Subramanian, Erin Wolter, YJ Won, Christopher Wong, Mark Wong, Wendy Sweeney, Julie Swerdlow Woods, Emily Wren, Stacie Wright, Bo Wu, Chun Wu, Melissa Wu, Michelle Wu, Christine Wurzbacher T X Carsten Takac, Jennifer Tam, Evelyn Tan, Wern Yuen Tan, Dhruv Taneja, Vikas Taneja, Chris Tanzi, Rolf Tappe, Jing Xu, Rena Xu David Tapper, Andrew Taylor, Meghan Taylor, Bob Tevelson, Piyapong Thanyasrisung, Brenda Thickett, Y Inger Anne Tho, Mario Tiedemann, Jon Tien, Norman Timmins, Daniel Tisch, Pia Tischhauser, Jenny Tison, Polina Yampolska, Michael Yeh, Jinhua Yin, Zain Yoonas, Chau Tong, Karen Lellouche Tordjman, Senoe Torgerson, Camie Yu, Therese Yuen Øyvind Torpp, Roselinde Torres, Jami Totten, Claire Tracey, Branko Trebar, Scott Tremaine, Lucia Nava Z Treviño, Henning Trill, Juan Triola, Rohit Tripathi, Jutta Trögel, Jennifer Tsao, Ricard Tubau Lorenzo Zacchia, Silvia Zaganelli, Angela Zäh, Tobias Zahn, Alona Zaitzeff, Maike Zander, Hui Zhang, U Roc Zhang, Yunhui Zhang, Janet Zhou, Yvonne Zhou, Bernd Ziegler, Martin Ziegler, Abraham Zilkha, Patrick Uhlmann, Shalini Unnikrishnan, Harvey Uong, Philipp Zimmermann, Felix Zirkler, Rupprecht Graf zu Christian Urazan, Juan P. Uribe Ortenburg M  D 
  • 96. Index of Organizations Abadia de Montserrat 87 École Centrale Paris 73–74 Action Contre la Faim 57 Endeavor 9, 10, 82–83 Advance Illinois 70 The E.O. Wilson Biodiversity Foundation 55 American Film Institute 87 Établissement Public du Grand Palais 87–88 des Champs-Élysées Atlanta BeltLine, Inc. 80 Europa Donna—The European Breast 67 Atlanta Education Fund 70 Cancer Coalition Bill & Melinda Gates Foundation 7, 11, 15, 23–25, 34, Fédération Belge des Banques Alimentaires 57 45–46, 64–66, 70, 75 (Belgian Federation of Food Banks) The Broad Foundations 33, 70–71 Feeding America 28–30, 57–58 business@school—An Initiative of 8, 71 Fondazione Palazzo Strozzi 39, 88 The Boston Consulting Group Fondo per l’Ambiente Italiano 88 Cape York Regional Organisations 80–81 French Ministry of Culture 88 Center for Civil and Human Rights 9, 81 Partnership, Atlanta Fund for Teachers 74 Chicago 2016 81 Fundación Empresa y Sociedad 83 Chicago Public Schools 71–72 Google.org 58 City of Chicago, Department of Environment 26, 55 Greater New Orleans Education Foundation 72 City of Cologne, Lord Mayor 81–82 The Guy & Myriam Ullens Foundation 39–41, 88–89 City of Newark, New Jersey, Department of 82 Handelshochschule Leipzig 74 Economic Development Hudson Guild 83 Civic Consulting Alliance 72 Initiativkreis Ruhrgebiet 67 Cosmetic Executive Women 82 Innovative Vector Control Consortium 23–25, 66 Cowen Institute for Public Education 72 Instituto Ayrton Senna 32, 35–37, 74 Initiatives Khazanah Nasional Berhad 74–75 Dallas Achieves Commission 32–33, 73 Kræens Bekæmpelse (Danish Cancer Society) 67 Delaware Business Roundtable 73 Education Committee Leadership for Education Achievement 73 in Delaware Committee DKMS 30–32, 66–67 London Organising Committee of the 83–84 Eberhard von Kuenheim Stiung 82 Olympic Games and Paralympic Games  T B C G
  • 97. Luminato: Toronto Festival of Arts 89 United Nations Global Compact 61 and Creativity United Way of Metropolitan Chicago 85–86 Maeil Business Newspaper 84 Universität Karlsruhe 78 Medicines for Malaria Venture 23, 46, 67–68 Universität zu Köln 78 Metropolitan Family Services 84 Wildlife Conservation Society 55–56 Metropolitan Planning Council 84 Wirtschasrat Deutschland 86 Moscow Symphony Orchestra 89 w!se (Working in Support of Education) 78–79 Myelin Repair Foundation 68 Women for Women International 61–62 National Math and Science Initiative 34–35, 75 WorkVentures Group 86 New Orleans City Council Education Committee 72 World Food Programme 7, 15–19, 62 New Sector Alliance 84–85 World Food Programme, India 62–63 New York City Opera 39, 89 World Food Programme, Italy, 63 North Carolina Department of 33–34, 75–76 Mauritania, and Niger Public Instruction World Food Programme, Sub-Saharan Africa 63 Partners in School Innovation 76 World Future Council 86 PATH 68 World Health Organization 17, 69 Pathways to Education 76 Zoologischer Garten Frankfurt 56 Paul Quinn College 76 The Reciprocity Foundation 76–77 Robert & Ruby Priddy Charitable Trust 77 Rockefeller Foundation 68–69 Rodel Foundation of Delaware and 77 Vision 2015 Implementation Team Roll Back Malaria Partnership 46, 69 Save the Children 7, 9, 10,11, 15, 19–22, 58–59 Save the Children Bal Raksha, Bharat 59 Save the Children China 20, 59–60 Save the Children Japan 20, 60 Save the Children Mexico 20, 60 Save the Children Norway 20, 60 Schwab Foundation for Social 37–39, 85 Entrepreneurship SIFE (Students in Free Enterprise) 77 Summer Search 77–78 Sutton Trust 78 Swiss-American Chamber of Commerce 85 Toronto Region Research Alliance 85 United Nations Development Operations 18, 60–61 Coordination Office M  D 
  • 98. For More Information For further information about Tom Lewis this report or to learn more BCG Rome about BCG’s social impact work, +39 06 46 20 10 11 you may send an e-mail to lewis.tom@bcg.com social_impact@bcg.com or contact the team that coordinates BCG’s Ulrich Villis Social Impact Practice Network: BCG Munich +49 89 23 17 40 villis.ulrich@bcg.com Brenda Thickett BCG New York +1 212 446 2800 thickett.brenda@bcg.com  T B C G
  • 99. For a complete list of BCG publications and information about how to obtain copies, please visit our Web site at www.bcg.com/publications. To receive future publications in electronic form about this topic or others, please visit our subscription Web site at www.bcg.com/subscribe. 12/08
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