• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
APS1015H Class 9 - Managing for Social Impact
 

APS1015H Class 9 - Managing for Social Impact

on

  • 645 views

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.

Statistics

Views

Total Views
645
Views on SlideShare
544
Embed Views
101

Actions

Likes
0
Downloads
7
Comments
0

1 Embed 101

http://www.socialentrepreneurship.ca 101

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    APS1015H Class 9 - Managing for Social Impact APS1015H Class 9 - Managing for Social Impact Presentation Transcript

    • APS 1015: Social Entrepreneurship Class 9: Managing for Social Impact Saturday, November 10, 2012Instructor:Norm Tasevski (norm@socialentrepreneurship.ca)Karim Harji (karim@socialentrepreneurship.ca) 1
    • © Norm Tasevski & Karim HarjiAgenda•  Assignment review•  Managing for Social Impact•  Preparing your investment pitches•  Next Week 2
    • Managing for Social Impact… 3
    • © Norm Tasevski & Karim HarjiTwo Main Responsibilities as a Manager of aSocial Enterprise… Achieving financial goals Achieving social goals 4
    • © Norm Tasevski & Karim Harji 5
    • © Norm Tasevski & Karim HarjiAchieving Financial GoalsKey Concepts•  Focus on your mission•  Know when to say “no”•  Build a business independent of yourself•  Test (prototype) often, and fail fastThe 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
    • Achieving Social Goals… 7
    • © Norm Tasevski & Karim HarjiExercise: From Intentions to Impact When  did  you   volunteer?   8
    • © Norm Tasevski & Karim HarjiExercise: From Intentions to ImpactHow do you know you made an impact? 9
    • © Norm Tasevski & Karim HarjiImpact vs Net ImpactIs your effort better than what would have happenedanyways? 10
    • © Norm Tasevski & Karim HarjiImpact vs Net ImpactIs your effort better than what would have happenedanyways? NET IMPACT is what matters 11
    • © Norm Tasevski & Karim HarjiAchieving Social Goals!1.  Identify your social goals –  Theory of Change (defining your social value) –  Embed them within/across your operations2.  Measure the social value created –  How do you measure your goals? –  Address the common challenges in measurement3.  Communicate your impact –  Know what to say and who your audience is –  Be creative around your message 12
    • © Norm Tasevski & Karim HarjiStep 1: ID Your Social Goals!•  What Social Benefit are you creating?•  How do you decide? 13
    • © Norm Tasevski & Karim Harji 14
    • © Norm Tasevski & Karim HarjiEmbedding “Social” across the BusinessModel 15
    • © Norm Tasevski & Karim HarjiExercise:Balancing social & financial value $   +   +   -­‐   -­‐   16
    • © Norm Tasevski & Karim HarjiStep 2: Measure the Social ValueCreated!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
    • © Norm Tasevski & Karim HarjiWhy is Measurement Important?!“Not everything that can be countedcounts, and not everything that countscan be counted” “You can’t manage what you can’t measure” 18
    • © Norm Tasevski & Karim HarjiChallenges 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
    • © Norm Tasevski & Karim HarjiA 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
    • © Norm Tasevski & Karim Harji SROI Snapshot: TurnAround Couriers!Overview  of  Target  Popula;on  (sample)   Avg  Change  in  Societal  Contribu3on    • 38%  recruited  directly  from  shelters   (Target  Employees):   $9,391• 23%  female   Average  Number  of  Target  Employees: 10• Average  age:  21   Current  Year  Cost  Savings  to  Society:   $93,910• 100%  unemployed  at  3me  of  hire  • 54%  receiving  social  assistance  at  hire   Cumula3ve  Cost  Savings  (prior  to  Y5): $191,170• 54%  been  involved  with  jus3ce  system   Total  Cost  Savings  to  Date: $285,080• 54%  did  not  complete  high  school   Cumula3ve  Societal  Payback  Period: 1.8    years   Cumula3ve  SROI: 285%        Sustainable  Livelihood  Outcomes  (sample)   Note:  ini3al  SCP  investment  =  $100,000  • 89    youth  in  total  have  been  hired  over  5   years   Employment  Outcomes  (sample)  • 100%  target  popula3on  recruited  from   shelters  able  to  get  out  of  shelter  system   • Increased  target/non-­‐target  staff  ra3o  to  83%     and  secure  independent  housing  within  6   • 69%  con3nue  to  work  at  TAC  (9)   months  of  employment  at  TAC   • 15%  moved  onto  mainstream  employment  in  • 85%  who  relied  on  income  support  through   window  cleaning  industry  (2)   social  assistance  at  3me  of  hire  able  to  get   off  and  stay  off     • 8%  went  on  to  post  secondary  educa3on  (1)   21
    • © Norm Tasevski & Karim HarjiAcumen Fund: social performancemeasurement 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
    • © Norm Tasevski & Karim HarjiSimple Measures for Social Enterprise:Lessons from the Acumen Fund!•  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
    • © Norm Tasevski & Karim HarjiStep 3: Communicating YourSocial Impact! How? 24
    • © Norm Tasevski & Karim Harji 25
    • Break 26
    • Your Investment Pitches… 27
    • © Norm Tasevski & Karim HarjiElements Important to the “Social Investor”•  Overview and mission •  Business model•  Management and •  Competitive advantage Advisors •  Collaboration/•  Problem partnerships –  social issue being •  Marketing and Sales addressed •  Financial projections•  Size of the problem •  Financial requirements –  how big is the social issue•  Solution –  Here’s how it works…•  Value proposition –  Inc. social benefit 28
    • © Norm Tasevski & Karim HarjiElements Important to the Angel Investor•  Overview and mission •  Business model•  Management and •  Marketing and sales Advisors •  Financial projections•  Customer problem •  Financing requirements•  Market opportunity/size•  Solution –  Inc. social issue being addressed•  Value Proposition•  Competitive advantage•  Where the solution fits 29
    • © Norm Tasevski & Karim HarjiAn Example… 30