Theory: What are the unique HR and operational considerations that social entrepreneurs need to incorporate in their social enterprise? Practice: What strategies and techniques can social entrepreneurs apply to effectively execute the operational and HR aspects of their social venture? http://www.socialentrepreneurship.ca/entr4800

1. ENTR 4800: Social Entrepreneurship
Class 6 (Part 1): Operational and HR
Considerations
Monday, October 25, 2010
1
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)
3

4. © Norm Tasevski & Karim Harji
Last Week – What did we learn?
4

5. © Norm Tasevski & Karim Harji
Well of Change – Christine Ho
5

6. HR Considerations…
6

7. © Norm Tasevski & Karim Harji
Where does HR Fit?
77

8. © Norm Tasevski & Karim Harji
A Caveat…
Think of your HR from the perspective of “running a
business”, not “running a charity”
8

9. © Norm Tasevski & Karim Harji
A Second Caveat…
Your HR Strategy must align with your business model
and align with organizational values
9

10. What if you were a…
10
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?
11

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

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

14. © Norm Tasevski & Karim Harji
What If you were a….
Virtual platform? !
14
• 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?
15

16. © Norm Tasevski & Karim Harji
16
Exercise:
What HR Strategy makes sense for…!

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

18. © Norm Tasevski & Karim Harji
18

19. © Norm Tasevski & Karim Harji
Balancing Financial and Social
Tensions
• “Social cost”
• Business acumen
• Two missions – may lead to confusion/conflict
19

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?
20

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…
22

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

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

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

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

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

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

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

30. © Norm Tasevski & Karim Harji
30

31. © Norm Tasevski & Karim Harji
Balancing Financial and Social
Tensions
• “Social cost”
• Business acumen
• Two missions – may lead to confusion/conflict
31

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?
32

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?
33

34. Break
34