Lean Startup Approach To Social Entreprise v1

Building a Social Entreprise
via a Lean Approach
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Andrea Darabos (Lean Coach, Lean Advantage)
Twitter: @Adarabos
Mail: andrea@leanadvantage.co.uk
Daniel Ludwig (Crowdrunning)
Twitter: @bydanielludwig @crowdrunning
Mail: daniel.ludwig@crowdrunning.com
LEAN ADVANTAGE Ltd.

From Project Idea to a Social Enterprise:
The Story of Crowdrunning
Personal Story
Global problem, local relevance
(UK, 80 k young homeless people NEET)
www.crowdrunning.com

A Social Startup:
„It’s a startup with a mission to solve a social problem, in search of
a scalable, replicatable business model” - Andrea Darabos
A social startup can live inside
an existing organization…
Or being created as a
new venture.

Crowdrunning is a Social Startup
• Running for change e.g homelessness, peace, water, etc.
Problem: Using sport/running to solve multiple global issues,
• Stakeholders – unexplored
Problem for Whom
• Unexplored
How will we Measure Impact:
• Rough - Run for change
What Service will we Provide:

Lean Startup Coaching
• Lean Social Startups search for a repeatable business model that delivers solutions
to a social problem and do this in a fast, effective way.
• Coaching helps to apply Lean thinking when building a social startup
• A Lean Coach challenges you to set up small experiments and to validate your
assumptions in the outside world with real stakeholders as early as possible
Lean Coaching Questions
(orange slides)
Assumptions, Validation
(blue slides)
@ADarabos,
Lean Coach,
Lean Advantage Director
@ByDanielLudwig,
Crowdrunning Founder

Vision, Mission, Values
• What is the vision of your social startup?
• What is the mission?
Hint: narrow your focus. Focusing on a local problem helps
you validate your business model faster and learn
• What values does your social entreprise stand for?

Vision, Mission, Values - Crowdrunning
Vision
A world where we combat
together global youth
homelessness locally, one run
at a time.
Mission
Providing running based personal
development program (PDP) for
young homeless and unemployed
people with support from caring local
runners, charities and businesses for
further education and employment
milestones
Values
Determination
Encourage
Inspiration
Equality

Local Impact & Learning
• What local issue are you solving?
• What local impact are you aiming for?
• Iterate via the Build-Measure-Learn cycle
to refine a working, sustainable
business model
• Then Scale up your Social Entreprise
SERVICE
Based on Eric Ries: The Lean Startup

Social Startup to Social Enterprise
• Found a working
business model
• Local issue, MVP,
Run several Build-
Measure-Learn
Experiments
• Scale up working
model and repeat
elsewhere
SERVICE

Local Impact - Crowdrunning
• What we decided to focus on…
• Local community helping young people living in their community

Stakeholders, Pain and Gain - Personas
• Who are the stakeholders in the problem domain?
• Create personas for them and describe their attributes
• Age, social background, segment
• What is their pain?
• What gain are they aiming for?

Stakeholder Personas - Crowdrunning
Young
People
(Aged 16-
25)
Charities
(small,
medium)
Local
Businesses
Runners
(all levels)

What is your MVP?
i.e. Minimal Viable Product, but if you are designing a service,
then call it Minimal Viable Service (MVS)
• What could be the absolute minimal service or product,
that we can create to test if we can address each
stakeholder’s pain?

MVP - Crowdrunning
To address EACH
stakeholder’s
pain
Running based
personal
development
program (PDP) in
the community

Use the Lean Social Canvas
• In this order, think about:
• Use one copy of the Lean Social Canvas for each
stakeholder group
• Identify their pain
• Your startup’s Unique value propositions to address these
pain points
• A MVP solution as a possible way realizing these value
propositions
• Metrics how we will measure success of meeting pain with
the solution
Template @ www.socialleancanvas.com

www.socialleancanvas.com
The Social Lean Canvas

Lean Social Canvas – Charities – Crowdrunning
Pain/Gain
Problems
• FUNDRAISING Lack of visibility and staff
for challenge events
• Lack of service prior and after the
challenge event for fundraisers
(challenge events)
• EMPLOYEES Lack of employee
engagement in challenge events -
>Professional Management &
reputation Problem
Solutions
• Weekly Running events with young
people and employees
• Bi weekly Video & Film production with
social media integration
• Monthly Milestone Meeting with other
local partners (Networking)
Amount of raised money through
Crowdrunning program
Percentage of increased social
media KPI ( conversation,
amplification and applause rate)
through video production
Number of employees and fundraisers
participating at runs
Metrics - Output

Lean Social Canvas – Pain/Gain
Businesses – Crowdrunning
Problems
• Lack of Employee Health programs
with community engagement
• Lack of community involvement
and engagement (small / big
company)
• Reputation Problem
Solutions
• Weekly Running events with employer
involvement as sponsor
social media integration as proof for
engagement with young people
• Monthly Milestone Meeting with other
local partners (Networking)
Metrics - Output
Number of employees
participating in running
program
Percentage of increased social
media KPI ( conversation,
amplification and applause
rate) through video production

Lean Social Canvas - Pain/Gain
Young People (16-25) - Crowdrunning
Pain
• Lack of inspiration & goal settings
• Lack of leadership & communication &
teamwork skills
• Lack of education foundation
• Lack of contacts to local employers
• Not in Employment
• No awareness of healthy lifestyle
• Living isolated or with wrong friends
Gain
• Weekly Running events with
employer involvement as sponsor
• Bi weekly Video & Film
production with social media
integration as proof for goal
settings and progress
• Monthly Milestone Meeting with
local partners and employees
(Networking)
Metrics - Output
Number of Milestone 1, 2, 3
passed so far
Number of Members obtaining
training / education and
employment
Retainment ratio: started vs
finished within last 6month

Lean Social Canvas – Pain/Gain
Runners - Crowdrunning
Pain
• Lack of employer health services
• Lack of Business/Life balance
• Lack of active community involvement
• Lack of charity support prior and after
the challenge event
• No fundraising during the Marathon
event preparation via training/running
• No direct access to charity and
services (young people)
Gain
• Weekly Running events with employer
involvement as sponsor
social media integration for fundraising
awareness
• Monthly Milestone Meeting with local
partners and employees (Networking)
Number of employees and local
citizens participating in running
program
Length of participations
(Months)
Amount of raised money through
Crowdrunning program
Metrics - Output

Differentiate Social Output and Outcome, Impact
Source: the foundation of social return on investment
(SROI)
Inputs
Resources
invested in your
activity
Activities MVS / MVP
Your Minimum
Viable Service or
Product
Outputs
The direct and
tangible products
from the activity,
i.e., people
trained, trees
planted, products
sold
Outcomes(Short-term)
Changes to
people resulting
from the activity,
i.e., a new job,
increased income,
improved stability
in life
Outcomes(Long-term)
Impact =
Outcomes less an
estimate of what
would have
happened anyway

Vulnerable Youth Social Output and Outcome Model
Source: The Young Foundation 2012
Output Outcomes

Now, Go out of the Building!
• Ideas on the Lean Canvas are only your assumptions
• Go and validate the real pain of your stakeholders, and build a value
proposition that serves their real need!
• How to?
• Qualitative interviews, focus groups, storytelling, demo of prototype idea,
with real people!
• What is the “real” problem?
• How are customers solving this problem currently?
• Why, why, why, why, why? Keep digging to understand the customer’s context.
• Get permission to discuss more later, after you’ve figured out a solution, and ask for introductions
to new people you can interview
A good source on Customer Interviews - Ash Maurya: Running Lean

Crowdrunning Outputs and Outcomes
How we use our activities
to address outputs
and outcomes
• Communication (Explaining, presenting, listening)
• Confidence and Agency (self-reliance, self-esteem, ability to
shape your own life and world around you)
Monthly
Milestone
Meeting
• Communication (Explaining, presenting,
listening)
• Creativity (Imaging alternative ways of doing
things, innovation, visualize future job or
career)
Bi weekly Video & Film production
•Relationship and Leadership
(motivating others, valuating and
contributing to team work,
establishing positive relationships
•Resilience and Determination (self
motivation, having sense of purpose,
persistent)
•Confidence and Agency
Weekly Running Meetups

Crowdrunning Logic Model
Young People
Inputs
- Confidential -
Activities
Weekly Running
Meetups
Bi weekly Video &
Film production
Monthly Milestone
Meeting (first
Tuesday evening
each months)
Outputs
Stakeholders specific
metrics:
Percentage of
Participation
Number of Members
obtaining training /
education and
employment
Mileage and lengths
of video production
participation with
employers and
charities
Outcomes(Short-term)
Improve Health,
Social and Emotional
Capabilities:
• Communication
• Confidence and
Agency
• Creativity
• Resilience and
Determination
• Relationships and
Leadership
- YP gain ownership
and confidence over
self learning pathway
- YP gain access to
local education and
training programs
(Inspiration)
Outcomes(Long-term)
- YP can fulfill their
aspirations with local
employment
perspectives
- YP can leave shelter
/hostel earlier

Crowdrunning - Measurement and
Evaluation
(Young People)
Measurementtools
- questionnaires
completed by the
young people
(Beginning)
- Film /Video
Production (3 Months)
- one-to-one talks and
group sessions with
the young people after
during/runs
- feedback from
Milestone Partners
(Charities, Runners &
Businesses)
InitialEvaluation(Pilot)
TBC
ResultEvaluation(3Months)
TBC

Build – Measure - Learn Cycle
• In what timeframe will you to build and execute the
MVP?
• What metrics will you to validate you have solved pain?
(Define Metrics per stakeholder group)
• When and how will you collect these metrics?

Build-Measure-Learn - First iteration
Crowdrunning
Timeplan
i.e. Build:
August 2014
•meet
stakeholder
groups, validate
pain, refine MVP
October -
December
•run the MVP
program,
evaluate
metrics,
feedback from
all stakeholders
Measure:
Collect
metrics and
feedback
every month
Learn:
Jan 2015
• evaluate final
metrics,
feedback
•Start new Bulid
Measure Learn
cycle

Lean Startup Workshop for
Social Entrepreneurs and Intrapreneurs
• We run regular face-to-face workshops for social
entrepreneur teams, involving lots of pitching and
iteration.
Bring your idea and leave with a ready-to-validate
proposition and your first MVP, MVS!
• Email us for more info @ LeanAdvantage.co.uk!

Contact us with
any questions!
Andrea Darabos (Lean Coach, Lean Advantage)
Twitter: @Adarabos
Mail: andrea@leanadvantage.co.uk
Daniel Ludwig (Crowdrunning)
Twitter: @bydanielludwig @crowdrunning
Mail: daniel.ludwig@crowdrunning.com
LEAN ADVANTAGE Ltd.

Lean Startup Approach To Social Entreprise v1

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