APS1015 Class 9: Managing for Social Impact

APS 1015: Social Entrepreneurship
Class 9: Managing for Social Impact
Wednesday, July 3, 2013
1
Instructor:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)

© Norm Tasevski & Karim Harji
Agenda
•  Assignment review
•  Managing for Social Impact
•  Preparing your enterprise presentations
•  Next Week
2

Managing for Social Impact…
3

Two Main Responsibilities as a Manager of a
Social Enterprise…
4
Achieving social goals
4
Achieving financial goals

5

Achieving Financial Goals
66
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

Exercise: From Intentions to Impact
8
When
did
you

volunteer?

Exercise: From Intentions to Impact
How do you know you made an impact?
9

Impact vs Net Impact
Is your effort better than what would have happened
anyways?
10

Impact vs Net Impact
Is your effort better than what would have happened
anyways?
NET IMPACT is what matters
11

Achieving Social Goals!
1212
1.  Identify your social goals
–  Theory of Change (defining your social value)
–  Embed them within/across your operations
2.  Measure the social value created
–  How do you measure your goals?
–  Address the common challenges in measurement
3.  Communicate your impact
–  Know what to say and who your audience is
–  Be creative around your message

Step 1: ID Your Social Goals!
1313
•  What Social Benefit are you creating?
•  How do you decide?

14

Embedding “Social” across the Business
Model
1515

Exercise:
Balancing social & financial value
16
+

+

-‐

-‐

$

Step 2: Measure the Social Value
Created!
1717
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

Why is Measurement Important?!
1818
“Not everything that can be counted
counts, and not everything that counts
can be counted”
“You can’t manage what you can’t
measure”

Challenges in Measurement!
1919
•  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)

A Note on SROI!
2020
•  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.

SROI Snapshot:
TurnAround Couriers!
Avg
Change
in
Societal
Contribu3on

(Target
Employees):
$9,391
Average
Number
of
Target
Employees: 10
Current
Year
Cost
Savings
to
Society:
$93,910
Cumula3ve
Cost
Savings
(prior
to
Y5): $191,170
Total
Cost
Savings
to
Date: $285,080
Cumula3ve
Societal
Payback
Period: 1.8

years
Cumula3ve
SROI: 285%

Note:
ini3al
SCP
investment
=
$100,000

21
Overview
of
Target
Popula;on
(sample)

• 38%
recruited
directly
from
shelters

• 23%
female

• Average
age:
21

• 100%
unemployed
at
3me
of
hire

• 54%
receiving
social
assistance
at
hire

• 54%
been
involved
with
jus3ce
system

• 54%
did
not
complete
high
school

Employment
Outcomes
(sample)

• Increased
target/non-‐target
staff
ra3o
to
83%

• 69%
con3nue
to
work
at
TAC
(9)

• 15%
moved
onto
mainstream
employment
in

window
cleaning
industry
(2)

• 8%
went
on
to
post
secondary
educa3on
(1)

Sustainable
Livelihood
Outcomes
(sample)

• 89

youth
in
total
have
been
hired
over
5

years

• 100%
target
popula3on
recruited
from

shelters
able
to
get
out
of
shelter
system

and
secure
independent
housing
within
6

months
of
employment
at
TAC

• 85%
who
relied
on
income
support
through

social
assistance
at
3me
of
hire
able
to
get

off
and
stay
off

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

Simple Measures for Social Enterprise:
Lessons from the Acumen Fund!
23
•  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)

Step 3: Communicating Your
Social Impact!
2424
How?

25

Elements Important to the “Social Investor”
28
•  Overview and mission
•  Management and
Advisors
•  Problem
–  social issue being
addressed
•  Size of the problem
–  how big is the social issue
•  Solution
–  Here’s how it works…
•  Value proposition
–  Inc. social benefit
•  Business model
•  Competitive advantage
•  Collaboration/
partnerships
•  Marketing and Sales
•  Financial projections
•  Financial requirements

An Example…
29

APS1015 Class 9: Managing for Social Impact

Recommended

Recommended

More Related Content

Similar to APS1015 Class 9: Managing for Social Impact

Similar to APS1015 Class 9: Managing for Social Impact (20)

More from Social Entrepreneurship

More from Social Entrepreneurship (20)

Recently uploaded

Recently uploaded (20)

APS1015 Class 9: Managing for Social Impact