Blueprint of RumaKita - universitas indonesia (housing track)


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A blueprint of RumaKita - Housing Solution by Universitas Indonesia for Hult Global Case Challenge

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Blueprint of RumaKita - universitas indonesia (housing track)

  1. 1. By Habitat for Humanity InternationalThis blueprint is submitted by Universitas Indonesia for Hult Global CaseChallenge 2012 – Housing Track. It offers innovative solution to reach the targetof serving 50 million people, with 10 houses, in 10 years.Universitas IndonesiaMuhamadImanUsman– Project ManagerAichiroSuryoPrabowo – Government RelationsRainintha Siahaan – Partnership and Community DevelopmentWindy Natriavi – FinanceIan Hutomo – Technology and OperationCoach: Anna Agus
  2. 2. By Habitat for Humanity International “A House is Not a Home, when the Heart is not with It” – AnonymousHabitat for Humanity International (HFHI) is well-known organization in providing houses for many throughout theyears. With 7 billion and exponentially growing population living in 1 planet, which marks another level of globalchallenges, hence a global housing solution is a primary priority that we should think of for the future generation.Services could be generated either for impairment and new houses. With shortage of spaces, global poverty andfluctuating cost in building a proper shelter for mankind, one should be able to address this set of complexproblems.Opportunities to enhance the role and capacity of this organization is wide open, especially to enable them totransform and scale up for many challenges ahead. Housing sector is unique but complex in a sense that it involvesvarious numbers of stakeholders and deal with local situation. As the team of Universitas Indonesia have studied,challenges that HFHI is facing are: (1) Lack of Access to Affordable Houses for benegiciaries, (2) Lack of innovativebusiness and organization model to allow it to scale up and be sustainable to answer the challenges; (2) Lack ofincentive for relevant stakeholders especially volunteers and masons, to make various project delivery besustainable, (3) Less strategy to tie strategic affiliation with potential donor and investor.Transforming the role of HFHI into housing enabler is the only realistic solution to deliver the challenge of 10 millionhouses for many. Transformation works best and feasible when we change the behavior and mindset. Housingshould be seen as a process rather than as results. Thus a very comprehensive tool to transform HFHI’s role andcapacity is a way to go. Universitas Indonesia is proud to propose Rumakita as a concept that suitably address theaforementioned challenges by creating multi pronged approaches – which in general may entails: (1) Crafting upinnovative business and organization model for HFHI to scale up and sustain best practices (2) Extending hands tostrategic partnership and investment to be able to finance solution; (2) Sustaining the number of strategicpartnership to donate, finance and support various project; (3) To engage relevant stakeholders should be able todefine its organization as a benchmarking organization Universitas Indonesia is proud to address challenges thatHabitat for Humanity International through a breakthrough solution, without compromising HFHI’s reputation,philosophy and best practices. By transforming HFHI’s position from Housing provider to housing enabler, we canhelp HFHI to reach the goal to reach 50 million people (10 million homes) in ten years.With $1 Million Grants, it will be multiplied through: To build an online platform system – Virtual MatchmakingBooth; Operational, Administrative and Management Salaries; Business and Community Development; Marketingand Fundraising. From these activities, we could generate $ 4.748.915 for the 1st year, with an outreach growth of27% up until 2023., we could serve 198.396 houses in 10 years. We do believe if this solution could work in anarea, it could be replicated and scaled up to broader areas.We are targetting to replicate this in 10 Areas, in 10years. With this number, we are optimistic that we could serve 17.435.424 houses with 69.741.696 people served Page | 1
  3. 3. By Habitat for Humanity InternationalPROBLEM STATEMENT:“ HFHI needs to deliver 10 million houses in upcoming future, whereas we only have limited access of funds andcapacity to attain the aforementioned numbers”GOAL:Transforming HFHI’s role from housing provider into housing enabler, with specific goals asfollow:  To craft a sustainable business model which able to boost the role and capacity of RumaKitato be the benchmarking organization for global housing solution by maximizing the engagement, outreach and cooperation with wider yet relevant stakeholders (i.e public, volunteers, donors, channeling unit, media, masons, government)  To scale up business model of Rumakita in housing projects into an accountable, affordable efficient and trustworthy channeling and distribution unit for housing solutions.CHALLENGES:To achieve the goal, currently Habitat for Humanity International is still facing some challenges, but to recap themain challenges:a) Lack of strategic model of partnership with donors, volunteers, masonsb) Neglected community development programsc) Limited channel of distribution unitSOLUTION:To achieve the goal, we do believe, that transforming HFHI position from housing provider into housing enabler isthe only solution realistic to deliver 10 million houses by 2020. RUMAKITA is the solution offered to answer thechallenges.1. Volunteer Development and Management UnitThroughout the years, volunteers are seen as the HFHI’s primary backbone and brand builder for housing project inHFHI. To assure and sustain this image, HFHI needs to develop a Development and Management Unit forvolunteers and potential volunteers in general especially to set a benchmark of having abundant qualified andcommitted volunteers. Especially with the urgency to deliver projected 10 million homes in near future, hencemaking sure that available manpower is sustainable should be one of priority too. This unit should be designed as Page | 2
  4. 4. By Habitat for Humanity Internationalattractive as possible to generate more people to join the opportunities to make change over people’s living(quantity) and potentially bring a learning experience for volunteers on specific skills (quality).Capacity building and sustainable management for volunteers are investment for securing manpower to help theglobal housing problems. To this end, the development and management unit should maximize the function andskills of volunteers in both construction and non-construction functions. The management will also compiledatabase of volunteers according to their field of interest, country of origins,etc. By having these two streams offunction and database, HFHI can efficiently allocate these resources accordingly. Volunteers will be optimallyempowered by various housing projects.As having qualified volunteers is essential in housing project, HFHI needs to conduct a performance assessment tokeep volunteers motivated and professional. Such performance assessment is a tool for HFHI to reward goodperforming volunteers.2. Mason Knowledge and Skill Management UnitAnother biggest concern in ensuring that 10 million standard houses can be delivered as affordable as can be tothe beneficiaries are through havinglocally inept and qualified masons. This relevant stakeholder has been sominimally addressed in the past, whereas affordable houses according to local standards and available materialsare necessary skills that the masons working with HFHI needs to have under certain housing project. To make surethat masons are well-utilized, empowered and educated this unit, we need to boost a unit for Mason Knowledgeand Skill Management in the form of capacity building, under the auspices and consultancy of material companies.Capacity building will work as as certification process for masons will be done in the form of training of utilizinglocally available materials, designing a standard and healthy house and neighborhood. Name of certified masonswill be available on the Virtual Matchmaking Booth.3. Monitoring and Channel Expansion UnitAs we are held accountable with various strategic partners and donors with abundant donation at stake, ensuringan efficient pipeline that is easy to be monitored by HFHI is a way to go.Aside from the concern of accountability,the channel of loan distribution should be expanded and should be made affordable by employing bottom-upapproach for instance: community-based distribution to guarantee payback, ensuring affordability, effective andtrustworthy channel. To champion the principals of effective delivery, accountability and affordability, RUMAKITA willleverage HFHI partnership with banks and Micro Finance institutions to give communities and small-mediumenterprises. As with bank, HFHI will partner up with selected banks and Micro Finance Institutions for housing togive out small-medium enterprises loans to potential beneficiaries. HFHI then will help reducing the risks of bank inlending out loans by giving professional expertise as business consultants to individual beneficiaries. Ideally HFHIwill receive back 0% loan and revolve those funds. Banks will receive the 7-10% p.a and pay out certain fees HFHI (with lower rate) to HFHI for their work in assisting these companies. But most importantly, consumers will have theirhouses and the added income capacity to support the family and their livelihood. Page | 3
  5. 5. By Habitat for Humanity International4. Program Outreach and Strategic Partnership “Optimizing the power of dollar you donated and spent” RUMAKITA’s website will be equipped with interactive page - The Virtual Matchmaking Booth -which works as one of HFHI biggest public donation platform, aside from already well-built strategic partnership with loyal donor. The Virtual Matchmaking Booth displays items representing materials and any kind resourcesand cost required to finish certain housing and community development project. Resources are comprised of materials such as, but not limited to: window pane, roof, window, and cements even technical consultancies and administrative needs. Web visitor will be directed to the interactive page and able to donate their money based on the price of each materials displayed.People can send every single cent and see where the money goes, because as potential donors/investors purchase the material, there will be direct improvement in that particular house. Here people may choose whether they want to donate, or want to invest. If they want to donate, their donations will go 100% to the beneficiary. But, if they want to invest, it means they lend their money to the people they want to help, and the money will be paid back to the donators (investors) in certain amount of times via HFHI. At the top of the interactive page, we will display a countdown of price required on certain project – as a live cost required countdown is shown on the page. Anytime a certain housing project is financially covered, the countdown will be connected to HFHI’s social media pages (i.e Twitter, Craigslist, and Facebook), therefore the public can easily access and see the development of project finalization in the real time and via real project. After this, public Utilization of online platform where people can donate their money for housing is already implemented by HFHI. People could donate through several means: (1) registering directly on HFHI website;(2) buy merchandises, or (3) even by playing a game. Since December 2009, Zynga has partnered with HFHI to offer a series of new goodies for purchase in CityVille. Through the game you donate virtual money through a variety of items available for purchase, with 100% of the sales going to the Habitat for Humanity program. Through this game, HFHI attained more than $ 10 million. With the Virtual Matchmaking Booth, we can leverage outreach of subject and scale of donation by inducing donor and potential donor through online platform model. The model addresses aspect of psychology of donation from three angles, which entails: (1) Easiness of Donating - The option to donate/invest on housing project material is only a click Page | 4
  6. 6. By Habitat for Humanity International away(2) All Kind of Donation Gets monitored at All Times- potential donor can monitor what they donate, where the money is allocated from this interactive page(3) Sustainable Donation is Assured through Incentive – This system enables a win-win solution for both parties – as potential donors in general can get the satisfaction of knowing the allocation of donation.With this solution, now, one house can literally built by dozens or even hundreds of people. People buildhouses together, and they can celebrate the success together! And it is win-win mechanism to all keyplayers in this game. Page | 5
  7. 7. By Habitat for Humanity International5. Community Development Unit First, HFHI always carefully select beneficiaries upon the basis of good-faith, especially when it comes to paying the housing credit loan gradually to the donators and other third parties. Secondly, as a housing enabler, Rumakita will assist HFHI’s capacity of not only crafting a per-unit housing solution in the future, but also to make sure that human aspect gets accommodated. Oftentimes, housing solution is heavily concentrated on building houses, instead of also paying attention to community development. Since the standard of living is largely defined by the quality of livelihood and environment, we need to develop other aspects of development as well,which are social and economy. To achieve this, we will establish community development unit as a mean wherepeople can get capacity and knowledge improvement. Our beneficiaries should payback by contributing throughsweat equity program to build other houses and engage in social activity. Beneficiaries may also choose to increasetheir income by joining local economic centre, and also will get capacity building to improve their skills andknowledge, so they will be financially independent. Page | 6
  8. 8. By Habitat for Humanity InternationalStrengths: 1. Composition of team’s background are diverse in terms of fields of interest and capacity, 2. Rumakita is compilation of ideas that are comprehensive and innovative enough to scale up HFHI and sustain its role and capacity 3. Ideas are compatible with HFHI’s reputation, images and not compromising the already best practices.Weaknesses: 1. Team has minimum experience in housing sector 2. Involvement of too many stakeholders – albeit normal in housing sector -Opportunities: 1. Well established brand 2. Sufficient networks to leverage the partnership, inciting volunteers and donors 3. Team members relevant engagement/ possessing networks, 4. The issue of global housing is emerging, and awareness of relating it to the issue of human development is also raising 5. The spirit of youth volunteerism and non-state actors’ involvement are emerging 6. Government’ support is increasing,Threats: 1. Share on wallet competition among non-profit organizations in housing sectors 2. Reluctance to payback 3. Unpredictable number of donation we will receive 4. In some countries, the system for online donations are not that familiar Page | 7
  9. 9. By Habitat for Humanity International Risk Risk Driver Risk Impact Likeli- Conse- Risk Risk Mitigation Plan hood quences LevelFailure in Low online Limited fund, 4 2 8 Plan better marketingfund purchase/donations Low ROI from for online donations,obtained from internet user, platform building Plan the time forfrom online Failure in online online marketing (e.gplatform marketing timing end of the year when online donations are high)Failure in Less awareness from Limited fund, 3 4 12 Prepare a betterfund people to payback, payment systems,obtained limited beneficiaries’ collaboration withfrom income, microfinance, andbeneficiaries integrate beneficiariespayment with economic and community development activitiesFailure in Complexity for people Limited fund, 3 3 9 Better marketing forfund to donate, Failure in fundrasing, moreobtained marketing and innovative ways tofrom promotion, limited promote andfundraising access and volunteers fundraise for HFHI to reach more peopleFailure in Failure in marketing Limited 2 3 6 Incentives andgathering and promotion to manpower to do rewards plan forvolunteers attract volunteers fundraising, volunteers, gives construction, more value added for unsustainable the existing number of volunteers as a way to volunteers Increases branding to be an HFHI volunteer, promoting internship programs, Increases marketing effortsLimited lands Backlog of houses are Difficulties in 3 4 12 Plans to build housesfor building accumulated in cities, building house, in satellite cities,house where access to land high cost of where land is is difficult building house accessible, but still near economic centerDifficulties in Lack of awareness Low impact, 2 4 8 Cooperating withtargetting from people about untargeted other partners (MFIbeneficiary HFHI, and and limited customers and volunteers) to number of partners to give recommendation reach out more for targeted beneficiaries beneficiariesLimited Lack of construction Lack of 4 2 8 Train more volunteers,volunteers in skills training for manpower in Lists professionalconstruction volunteers construction, masons ready to hire high cost to hire masonsNote:1 –5 : Very low6 – 10 : Medium>10 : High Page | 8