The document outlines key operational and human resources considerations for social entrepreneurship, discussing various business models and the importance of aligning HR strategies with organizational values. It poses critical questions regarding staffing, governance, and operationalization of business functions, while highlighting the balance between financial and social objectives. The appendix includes practical guidance on building a team, compensation structures, and effective HR practices.

1. ENTR 4800: Social Entrepreneurship
Class 6 (Part 1): Operational and HR
Considerations
Monday, October 25, 2010
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Instructors:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)

2. © Norm Tasevski & Karim Harji

3. © Norm Tasevski & Karim Harji
Agenda
• Greyston Bakery
• What did we learn – Last Week?
• “Live Case” - Christine Ho (Well of Change)
• HR Considerations
• Operational Considerations
• Part 2 – Legal Considerations (other slide deck)
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4. © Norm Tasevski & Karim Harji
Last Week – What did we learn?
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5. © Norm Tasevski & Karim Harji
Well of Change – Christine Ho
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6. HR Considerations…
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7. © Norm Tasevski & Karim Harji
Where does HR Fit?
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8. © Norm Tasevski & Karim Harji
A Caveat…
Think of your HR from the perspective of “running a
business”, not “running a charity”
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9. © Norm Tasevski & Karim Harji
A Second Caveat…
Your HR Strategy must align with your business model
and align with organizational values
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10. What if you were a…
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Product-based, for-profit Social Business…!
“Purpose-built”, non-profit Social Enterprise…!
“Fee-for-service” Social Business…!
“Virtual” Platform…!

11. © Norm Tasevski & Karim Harji
What If you were a….
Product-based social business!
• Types of Employees?
• Volunteers?
• HR/volunteer
management?
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12. © Norm Tasevski & Karim Harji
What If you were a….
Purpose-built social enterprise?!
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• Types of Employees?
• Volunteers?
• HR/volunteer
management?

13. © Norm Tasevski & Karim Harji
What If you were a….
Fee-for-service Social Business? !
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• Types of Employees?
• Volunteers?
• HR/volunteer
management?

14. © Norm Tasevski & Karim Harji
What If you were a….
Virtual platform? !
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• Types of Employees?
• Volunteers?
• HR/volunteer
management?

15. © Norm Tasevski & Karim Harji
Other HR Considerations…
• Who/what do you need?
• How do you find the right people?
• How do you define what they do?
• How (and from where) do you pay them?
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16. © Norm Tasevski & Karim Harji
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Exercise:
What HR Strategy makes sense for…!

17. © Norm Tasevski & Karim Harji
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Exercise:
What HR Strategy makes sense for…!
Your venture???!

18. © Norm Tasevski & Karim Harji
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19. © Norm Tasevski & Karim Harji
Balancing Financial and Social
Tensions
• “Social cost”
• Business acumen
• Two missions – may lead to confusion/conflict
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20. © Norm Tasevski & Karim Harji
Governance and Decision Making
Board of Directors
• Defining structure, roles, desired competencies
• Governance principles; identifying accountabilities
• Recruitment of members (tied to skill sets required)
• Relationship between management and Board
• Relationship with investors or funders
• Relationship with other stakeholders
• Managing tension between financial and social
objectives and activities
Management
• Responsibilities and accountability for each position
• Skills gaps and how will they be addressed
• Will staffing needs change as the enterprise grows?
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21. © Norm Tasevski & Karim Harji
Summary: Key Questions
• Who will manage the business?
• How do you plan to staff the venture?
• Will staff require special training or accreditation?
• Will the non-profit’s clients be hired? If so, are there any special
accommodations that will require additional staff or other resources?
• Will staff work on contract, for honoraria, or on a permanent basis?
• Do you have a person with business experience and/or training on
staff and how will that person be utilized?
• Does the staffing plan match your operational needs and revenue
growth projections?
• How will the staffing needs change as the enterprise grows?
• Are any of the positions transitional by design? If so, how will the high
turnover rates be accounted for in the enterprise?
• How easy will it be to attract qualified staff with anticipated working
conditions and salaries?
• What is the organizational chart? What is the accountability of each
staff member?
Source: http://www.enterprisingnonprofits.ca/sites/www.enterprisingnonprofits.ca/files/uploads/SEGUIDE_Web_Chapter_Five.pdf 21

22. Operational Considerations…
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23. © Norm Tasevski & Karim Harji
How do you…
Operationalize your Value Proposition?!
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Your venture???!
???!

24. © Norm Tasevski & Karim Harji
How do you…
Operationalize your “Customer” function?!
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Your venture???!
???!

25. © Norm Tasevski & Karim Harji
How do you…
Operationalize your Channels?!
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Your venture???!
???!

26. © Norm Tasevski & Karim Harji
How do you…
Operationalize your “Relationships” function?!
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Your venture???!
???!

27. © Norm Tasevski & Karim Harji
How do you…
Operationalize your Key Resources?!
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Your venture???!
???!

28. © Norm Tasevski & Karim Harji
How do you…
Operationalize your Key Activities?!
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Your venture???!
???!

29. © Norm Tasevski & Karim Harji
How do you…
Operationalize your Partner Development?!
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Your venture???!
???!

30. © Norm Tasevski & Karim Harji
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31. © Norm Tasevski & Karim Harji
Balancing Financial and Social
Tensions
• “Social cost”
• Business acumen
• Two missions – may lead to confusion/conflict
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32. © Norm Tasevski & Karim Harji
Summary: Key Questions
• How will you operationalize each segment of the
business model?
• How will you ensure that you adequately
understand and capture your considerations and
assumptions?
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33. © Norm Tasevski & Karim Harji
Appendix: MaRS workbooks
1. Building an A-Team
• What values do you seek in new hires?
• As the company grows, what new hires will you need and when?
• What skills do successful employees at your company require?
• What qualities do your employees need to make them excellent?
• How should you screen and interview to find the best candidates?
• How do you make an official offer of employment?
2. Compensation
• What forms of compensation are most effective for a start-up?
• How do I structure my employee stock option plan?
• What benefits am I legally required to provide and how much will they cost?
• How do I build a realistic and comprehensive HR budget?
3. HR at Work
• How do I effectively bring new people on board?
• How do I establish and conduct performance reviews?
• What are the essential HR policies and procedures I need to have in place?
• How do I create an effective employee handbook?
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34. Break
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