APS 1015 Class 10 - Managing for Impact

  • 372 views
Uploaded on

Students will learn about some of the key management challenges involved in running a social enterprise. Concepts to be covered include goal-setting and target-setting, identifying and measuring key …

Students will learn about some of the key management challenges involved in running a social enterprise. Concepts to be covered include goal-setting and target-setting, identifying and measuring key metrics (both financial and social) and leading and inspiring a team. This class will also feature a “live case” with a guest social entrepreneur.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
372
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
7
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Design thinking:Firstly it is not only convergent. It is a series of divergent and convergent steps. During divergence we are creating choices and during convergence we are making choices.relies on an interplay between analysis and synthesis, breaking problems apart and putting ideas together
  • Design thinking:Firstly it is not only convergent. It is a series of divergent and convergent steps. During divergence we are creating choices and during convergence we are making choices.relies on an interplay between analysis and synthesis, breaking problems apart and putting ideas together
  • What did you do as a volunteer?
  • What is your reaction?Why do some people see these types of images and act, and others not?Is there a difference if you are living it as opposed to seeing it from afar?Reflect on this for your term assignment
  • Focus on the distinction between entrepreneurand enterprise
  • http://www.youtube.com/watch?v=wyrFWbGiGOc

Transcript

  • 1. APS 1015: Social Entrepreneurship Class 10: Managing for Social Impact Monday November 11th, 2013 Instructor: Norm Tasevski (norm@socialentrepreneurship.ca) Assaf Weisz (assaf@socialentrepreneurship.ca) 1
  • 2. © Norm Tasevski & Karim Harji Agenda • • • • Assignment review Managing for Social Impact Preparing your enterprise presentations Next Week 2
  • 3. Managing for Social Impact… 3
  • 4. © Norm Tasevski & Karim Harji Two Main Responsibilities as a Manager of a Social Enterprise… Achieving financial goals Achieving social goals 4
  • 5. © Norm Tasevski & Karim Harji 5
  • 6. © Norm Tasevski & Karim Harji Achieving Financial Goals Key Concepts • Focus on your mission • Know when to say “no” • Build a business independent of yourself • Test (prototype) often, and fail fast The Market or the Mission? (Brinckenhoff) • The market is always right • The market is not always right for you • The mission should be your organization’s ultimate goal 6
  • 7. Achieving Social Goals… 7
  • 8. © Norm Tasevski & Karim Harji Exercise: From Intentions to Impact When did you volunteer? 8
  • 9. © Norm Tasevski & Karim Harji Exercise: From Intentions to Impact How do you know you made an impact? 9
  • 10. © Norm Tasevski & Karim Harji Impact vs Net Impact Is your effort better than what would have happened anyways? 10
  • 11. © Norm Tasevski & Karim Harji Impact vs Net Impact Is your effort better than what would have happened anyways? NET IMPACT is what matters 11
  • 12. © Norm Tasevski & Karim Harji Achieving Social Goals 1. Identify your social goals – Theory of Change (defining your social value) – Embed them within/across your operations 1. Measure the social value created – How do you measure your goals? – Address the common challenges in measurement 1. Communicate your impact – Know what to say and who your audience is – Be creative around your message 12
  • 13. © Norm Tasevski & Karim Harji Step 1: ID Your Social Goals • What Social Benefit are you creating? • How do you decide? 13
  • 14. © Norm Tasevski & Karim Harji 14
  • 15. © Norm Tasevski & Karim Harji Embedding “Social” across the Business Model 15
  • 16. © Norm Tasevski & Karim Harji Exercise: Balancing social & financial value $ + + - 16
  • 17. © Norm Tasevski & Karim Harji Step 2: Measure the Social Value Created Why Measure, and for Whom? • Management – Performance management (meeting needs/objectives) – Organizational sustainability, attract new investment – Demonstrate the value created by organization • Social Investors (inc. funders) – Impact of grants, mission alignment – Accountability measures – Assess organization value, relate to risk/return (of investment) • Government Programs/Policy – Make the case for investment in organization/approach – Accountability measures 17
  • 18. © Norm Tasevski & Karim Harji Why is Measurement Important? “Not everything that can be counted counts, and not everything that counts can be counted” “You can’t manage what you can’t measure” 18
  • 19. © Norm Tasevski & Karim Harji Challenges in Measurement • • • • • Outputs vs. Outcomes Attribution vs. Contribution Qualitative vs. Quantitative Prove vs. Improve Rigour vs. feasibility “Metrics and evaluation are to development programs as autopsies are to health care: too late to help, intrusive, and often inconclusive.” (Trelsad) 19
  • 20. © Norm Tasevski & Karim Harji A Note on SROI • Discounted, monetized value of the social value that has been created, relative to the value of the investment. • Pioneered by Roberts Enterprise Development Fund (REDF) and Jed Emerson • Various uses for, and approaches to, SROI • Despite “hype” around SROI, it can be resource-intensive, and issues around feasibility, replication, reporting still remain. 20
  • 21. © Norm Tasevski & Karim Harji SROI Snapshot: TurnAround Couriers Overview of Target Population (sample) •38% recruited directly from shelters •23% female •Average age: 21 •100% unemployed at time of hire •54% receiving social assistance at hire •54% been involved with justice system •54% did not complete high school Sustainable Livelihood Outcomes (sample) •89 youth in total have been hired over 5 years •100% target population recruited from shelters able to get out of shelter system and secure independent housing within 6 months of employment at TAC Avg Change in Societal Contribution (Target Employees): $9,391 Average Number of Target Employees: 10 Current Year Cost Savings to Society: $93,910 Cumulative Cost Savings (prior to Y5): $191,170 Total Cost Savings to Date: $285,080 Cumulative Societal Payback Period: 1.8 years Cumulative SROI: 285% Note: initial SCP investment = $100,000 Employment Outcomes (sample) •Increased target/non-target staff ratio to 83% •69% continue to work at TAC (9) •15% moved onto mainstream employment in •85% who relied on income support through window cleaning industry (2) social assistance at time of hire able to get •8% went on to post secondary education (1) off and stay off 21
  • 22. © Norm Tasevski & Karim Harji Acumen Fund: social performance measurement in the investment process • Due Diligence – Literature review: state of practice – Estimate # of people served over the life of the investment – Assess how delivery of those “outputs” compare (more or less favorably) to the “best alternative charitable option” • During Deal Structuring – Conversations on how to think about performance management over the life of the investment, not just “mandatory reports” • Post-Investment – Quarterly reporting – performance, capacity, strengths/weaknesses – Semi-annual “forced ranking” across portfolio against investment criteria - financial sustainability, social impact at scale, breakthrough insights, and high-quality leadership - as well as actual performance to date and the investment’s potential for impact in the future • Closed Investments – Short “exit memo” looking at results generated, financial return, and lessons learned 22
  • 23. Simple Measures for Social Enterprise: Lessons from the Acumen Fund © Norm Tasevski & Karim Harji • Culture matters far more than systems – Tolerance for / learning from failure • If you build systems, start with a pencil and paper – Start simple; technology is an enabler not the solution • Think on the margin – Performance is always relative to what you had been doing before (past), to what your competition did over the same time period (peers), and to what you should have done (projections) • Count outputs and then worry about outcomes – “the conclusions you can draw from these outputs may not be made with scientific rigor, but they can inform businesslike decisions and raise important policy questions” • Don’t confuse information with judgment – Balance qualitative and quantitative – Use informed judgment, hold oneself accountable (to them) 23
  • 24. © Norm Tasevski & Karim Harji Step 3: Communicating Your Social Impact How? 24
  • 25. © Norm Tasevski & Karim Harji 25
  • 26. Break 26
  • 27. Your Investment Pitches… 27
  • 28. © Norm Tasevski & Karim Harji Elements Important to the “Social Investor” • Overview and mission • Management and Advisors • Problem – social issue being addressed • Size of the problem – how big is the social issue • Business model • Competitive advantage • Collaboration/ partnerships • Marketing and Sales • Financial projections • Financial requirements • Solution – Here’s how it works… • Value proposition – Inc. social benefit 28
  • 29. © Norm Tasevski & Karim Harji An Example… 29