Open2012 business-planning-sustainability-water-sanitation-facil

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Open2012 business-planning-sustainability-water-sanitation-facil

  1. 1. Dr. Renée Botta, Media, Film & Journalism Studies Dr. Karen C. Loeb, Daniels College of Business University of Denver . March 2012
  2. 2. Overview Kibera Context 3-Legged Stool Model Problem Statement Business Model Training & Implementation Usage, Accounting & Financial Results Facility Management Conclusions Lessons Learned Next Steps Maji na Ufanisi
  3. 3. Kibera, Kenya• Kibera is an “informal settlement”situated in the southwestern part of thecity of Nairobi. There are over a halfmillion people living in slum conditions inone square mile: • Virtually no access to toilets • Limited access to clean water• “Flying toilets” abound where peopledefecate into plastic bags that they throwonto the streets.•In Silanga, our village, one pit latrineserves about 272 people, while the WHOrecommends a maximum of 40 personsper toilet.•In Kibera, the mortality rate for childrenunder 5 is 19%.
  4. 4. Problem Statement Extensive data collection and analyses reflected major gaps in the flow of value and resources: Funder  Breakdowns in:  Managerial Oversight Corporate /  Business Training Implementer  Standardization  Communication  Innovation Sharing  Revenue Sharing  Hygiene Education  Governance Processes  Recognition of Gender Issues/RolesFacility Operator Customer
  5. 5. Business Model of Social Franchising Philanthropic Funder/GrantorsProject Management Oversight Local Partner/Implementer Community-Based Governance Facilities Franchises/Local Governance
  6. 6. Business Training Elements Process Flows Standard Operating Procedures Usage Records Accounting Records Finance Models Supplemental Enterprises
  7. 7. Implementation Had planned quasi-experimental design varying degree of project management oversight, degree of hygiene messaging/training and introduction of supplemental enterprises Revised business focus became (1) making facilities operational , (2) obtaining consistent water flow (3) consistent record keeping and (4) adaptation of and adherence to SOPs Data collection on usage rates, accounting, finances and business management
  8. 8. Results-to-date: Usage Rates TOTAL TOILET USAGE 6000 5000 4000 # Uses 3000 2000 1000 0 Sep Oct Nov Dec Jan Feb Month As facilities become operational, overall usage generally increases over time, though impacted by water shortages/closures. Daily overall average usage ranges from 53 (Oct) to 198 (Feb) across facilities. Shower usage was limited primarily by water availability, but also lack of pumps to upper tanks and lack of water heaters.
  9. 9. Results-to-date: Usage Rates TOTAL TOILET USAGE PER FACILITY 1400 1200 1000 800 Sep # USES 600 Oct 400 Nov 200 Dec 0 Jan Feb FACILITY• Generally, usage increases at each facility over time (41 exception; attendantchange).• Jola introduced monthly family usage fee in February, so actual usage(conservatively) derived, rather than recorded.• Holiday away trips and serious water shortages (forcing closures) affected usage.• Location matters: proximity to cheaper pit latrines dampens general usage (MSF),while proximity to a bar enhances usage (41)!
  10. 10. Results-to-date: AccountingMisc Total Expenses Enterprises Total Revenue5% 6% Water Showers 9% 1% Water 27% Attendant 56% Toilet Tissues 84% 6% Soap 6%  Biggest expense is payment of attendant, followed by purchase of water.  Toilet usage is biggest contributor to revenues, with the sale of water and liquid soap enterprises at facilities emerging as additional revenue streams.  Water shortages restrict revenue opportunities significantly.  Planned enhancements to water storage capacity should significantly affect water and shower revenues.
  11. 11. Results-to-date: Financial NET AVERAGE MARGIN ACROSS FACILITIES 600 500 400Rev-Exp Avg 300 KSH 200 100 0 Sep Oct Nov Dec Jan Feb Month • Across facilities, there is evidence of profitability. • Decrease in November reflects new facilities starting up, while February decline reflects impact of water shortages and closures.
  12. 12. Results-to-date: Financial NET AVERAGE MARGIN PER FACILITY 1000 800 600REV-EXP AVG 400 KSH 200 0 -200 FACILITY • Each facility reflects overall profitability except Wamunyu, which recently restarted operations. • Jola uses monthly plan and pays their attendant the most.
  13. 13. Results-to-date: Financial NET MARGIN PER FACILITY PER MONTH 2000 1500 1000 Sep Oct Rev – Exp Nov 500 KSH Dec 0 Jan Feb -500 -1000 Facility• Water shortages in February adversely affected every facility.• Alternative monthly pay-for-family-use model at Jola emerged as mosteffective in maintaining positive margin (if water is available).• Current toilet usage alone appears insufficient in most cases to coverattendants’ expected salaries.• Increased water capacity could impact revenue stream significantly forincreased water sales, water purification enterprise, and shower usage.
  14. 14. Results-to-date: Facility Mgt Project Mgt oversight has facilitated centralized problem solving (e.g., attendant supplies, water issues). Project Mgt oversight and profitable facilities has sparked re- evaluation of Community governance strategies. Priorities shifting due to identification of critically needed repairs and water shortages. Gathering data on facility/attendant conformance to SOPs. Will correlate SOP conformance ratings (by CBO and Project Manager) with Net Margin data to test hypothesis that higher conformance is positively associated with net margin. Once facilities are fully operational with new enterprises and increased water capacity, the degree of project management oversight will be varied to examine appropriate span of control.
  15. 15. Conclusions Residents do use facilities when available. Monthly passes per family yield consistently higher net margin (JOLA). Consistency in facility functionality and water access is key to long-term profitability. Structural repairs are needed to extend functionality and increase revenue. Need to expand “marketing” by meeting users’ basic needs first (e.g., greater access to clean water).
  16. 16. Social Franchising: Lessons Learned Business model yields positive net margin at facilities, critical for operational sustainability. Improved communication up and down the value chain, facilitated by the project manager, contributed to financial gains and sharing of local innovations. Defining “social” concept means adapting to ever-changing needs of the community:  Monthly family-usage fees  Local governance strategies  Critical need for greater access to clean water Additional data gathering will enable determination of:  Appropriate project management span-of-control  Impact on health outcomes and hygiene practices  User perceptions of influence of local governance
  17. 17. Next Steps: Improve Facilities Structural/functional integrity Cosmetic Appeal Enhancements to increase usage (e.g., pumps, water heaters, handicap rails, sanitary bins, incinerator)
  18. 18. Next Steps: Increase Revenues Expand significantly capacity for water access and sales Promote water purification and liquid soap sales Develop marketing campaigns Create consistent “branding” of facilities
  19. 19. Next Steps: Manage Facilities Revise and implement new local governance strategies & structure Evaluate high/low project mgt oversight to determine appropriate span-of-control Evaluate residents’ attitudes towards facility oversight (CBO post- survey)

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