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1. Values into Value
Why social innovation is the key to creating value in today’s
values-driven marketplace
Richard Landry
September 2011
2. Social value is the new global currency
Organizations in every sector are being challenged and reshaped by the emergence
of a new set of global forces and norms:
• Digital networks
– Radically undercut organizational scale as a strategic advantage
– The new “scale” is the reach of support one attracts via digital networks
• Global tribes
– Virtual communities of shared values and concerns that transcend traditional
social and geographic boundaries
– Transform “engagement” into an inherently social experience
• Social value
– A natural outgrowth of the emergence of global tribes across digital networks
– Rewards enterprises and innovations that address broadly recognized social needs
“How do we begin reorganizing the industrial economy? By using markets, networks, and communities to alter the
way resources are managed: To weave a fabric of incentives for sustainable growth and authentic value creation
into the economy—a new economic fabric that’s meaningful to people.” –Umair Haque, Havas Media Lab
September 17, 2011 slide 2
3. Social innovation:
A new way to create social value
Enterprises and innovations that tap the power of digital networks and virtual
communities to create a new, sustainable blend of social and financial return
• Rooted in the pursuit of authentic social value
– Social value is at the core of identity, business model, and reputation
• Catalyze and participate in network effects
– Adopt “shaping strategies” that extend social and financial benefits broadly across a network
• Social enterprises and social innovations
– Emerging social enterprises, and social innovations by organizations in digital transition
– Media, information technology, business and consumer services, nonprofits
“A shaping strategy is no less than an effort to broadly redefine the terms of competition for a market sector
through a positive, galvanizing message that promises benefits to all who adopt the new terms.”
–John Hegel III, Deloitte Center for Edge Innovation
September 17, 2011 slide 3
4. Social innovation strategy:
A framework for sustainable social value
A strategic framework for designing and scaling social enterprises and social
innovations that are “built to last” in global markets:
• Values-based
– Adopt business models and practices that explicitly reflect stakeholders’ core values
and concerns
• Authentic
– Based on HBS Balanced Scorecard strategic management framework for organizational design,
strategic marketing, impact assessment, and innovation
– Values are expressed through every layer of the enterprise and in every interaction with
stakeholders, both internal and external
• Open
– Innovations arise out of a process of open inquiry, design, assessment, and refinement
undertaken in direct engagement with the community of stakeholders
“With innovations easily copied and competition from low-cost Asian producers fierce, Philips understands it is no
longer enough to crank out great products. What it's aiming for is social innovation, or engaging with
nontraditional partners to develop culturally relevant solutions.” –BusinessWeek
September 17, 2011 slide 4
5. richmedium social innovation strategic framework
innovation dimension core values strategies initiatives key performance indicators
• What long range paths of action • What key strategic initiatives • What criteria are you using to
• What role do you play in
network are you pursuing to catalyze or are you pursuing to engage assess your current performance
catalyzing and contributing to
(systemic impact) contribute meaningfully to your stakeholder organizations in in catalyzing and contributing to
your field?
field? advancing your field? your field?
• What is the primary social
social • What criteria are you using to
purpose of your work? • What long range paths of action
(authentic cultural, economic, • What key strategic initiatives assess your current performance
• What is the desired ultimate are you pursing to advance your
and ecological impact) are you pursuing to advance in advancing your social purpose?
social outcome of your efforts? social purpose?
these priorities?
• In what ways do you engage • What criteria are you using to
client •What are the primary principles • What are your current top
clients in the advancement of assess the current performance
(performance, transparency, and standards you observe in priorities for client engagement
your mission and product of your client engagement and
and engagement) client interaction and service? and stewardship?
strategy? stewardship initiatives?
cultural • What management principles • In what ways do you • What criteria are you using to
• What are your current top
(internal/external goals and standards do you observe to intentionally foster a sense of assess the current performance
organizational development
alignment) advance your mission? shared mission among internal of your organizational
priorities?
stakeholders? development initiatives?
• What expectations do you and • What top priorities are you
• What long range paths of action • What criteria are you using to
operational your stakeholders have for pursuing in the current planning
are you pursuing to achieve assess the current performance
(sustainable growth and growth, sustainability and mission period to achieve sustainable
sustainable growth and advance of your growth, sustainability, and
mission advancement) advancement? growth and advance your
your mission? capacity-building initiatives?
mission?
September 17, 2011 slide 5
6. Shaping strategies
Unlock stakeholder passion and engagement to successfully launch, gain scale,
accelerate impact, and extend reach
• Open innovation
– Inquiry, design, assessment, refinement, and implementation in direct collaboration
with the community of stakeholders
• Open media
– A new paradigm for media, marketing, and stewardship
• Open platforms
– Practices, standards, and interfaces that extend social and financial benefits broadly
within a network
“As people work together, they come to focus on what truly matters to them, and their thinking evolves from a
reactive problem-solving mode to creating futures they truly desire. With this comes a level of commitment,
imagination, patience, and perseverance far beyond what happens when we are just reacting to problems.”
–Peter Senge, The Necessary Revolution
September 17, 2011 slide 6
7. Open innovation
Using design principles and methods to bring organizational intent in alignment
with stakeholder values
• Core values inquiry
– Engaging stakeholders—directly and transparently—about “what matters most”
• Strategic framework design
– Prototyping innovations that have the potential to deliver a new, sustainable blend of
social and financial value
• Assessment and refinement
– Iterative design, development, and testing in direct collaboration with stakeholders
• Implementation
– Rolling out innovations that stakeholders actively embrace—because they have collaborated
in designing them
“Prototyping is modeling or simulating your best current understandings precisely so you can have a shared set of
understandings that enable communications, especially among people with very different discipline bases. That
allows you to get to some desired outcome which you could not have predicted in the beginning.” –John Kao
September 17, 2011 slide 7
8. Open media
Digital environments that support the expression and advancement of
authentic social value
• Media
– Radically downsize the economics of media production, distribution, and monetization, while
producing cultural products of engaging relevance, depth, and sophistication
• Marketing
– Expose the entire consideration cycle to dialogue, making it possible to dramatically accelerate
acceptance and engagement
• Stewardship
– Foster learning communities that extend their value via network effects
“The new electronic interdependence recreates the world in the image of a global village.”
–Marshall McLuhan, The Gutenberg Galaxy
September 17, 2011 slide 8
9. Open platforms
Accelerate the growth of social innovations and extend their reach beyond the four
walls of the enterprise
• Practices
– Transform the value chain into a learning community by fostering dialogue and exchange among
clients, partners, and other stakeholders
• Standards
– Build support for innovations around a shared platform of intellectual property
• Interfaces
– Create points of entry for clients, partners, and other stakeholders to participate in, repurpose,
and extend innovations
“Open platforms are mass collaboration in action—a bold new way to extend the productive capacity of your business
without having to infinitely extend your costs.” –Don Tapscott, Wikinomics
September 17, 2011 slide 9
10. Shaping strategies
social innovation strategic framework
innovation dimension core values shaping strategies
network systemic impact
open platforms
authentic cultural, economic, and
social
ecological impact
performance, transparency, and open media
client
engagement
cultural internal/external goals alignment
open innovation
sustainable growth and mission
operational
advancement
September 17, 2011 slide 10
11. Framework design process
Strategic framework design process
design phase strategic brief strategic plan strategic marketing plan development
internal values audit √
external stakeholder audit √ √
landscape analysis √ √ √
trends analysis √ √ √
business model √ √ √
implementation √
September 17, 2011 slide 11
12. RSF Social Innovation Strategic Framework
Innovation Dimension Core Values Strategies
• Build awareness and adoption
Reimagine Money:
of social finance innovations
• A transferable portfolio of social
• Establish productive
finance innovations
Network partnerships in identified focus
• A productive ecosystem of
(Systemic impact) areas
social finance partners
• Create an intentional learning
• A network of local, place-based
community to share best
economies
practices
• Identify and fund a critical mass
Social • Innovations in social finance of innovative social enterprise
(Authentic economic, cultural, • Innovations in social enterprise projects in focus areas
and ecological impact) • Financial transactions that heal • Support lending efforts
human beings and the planet programmatically with field-of-
interest funds
• A listening culture that
responds to emerging client • Introduce innovative products
needs that serve emerging client needs
Client
• Transparency in financial • Launch improved client
(Performance, transparency,
transactions communications plan
and engagement)
• Financial relationships that are • Introduce improved client
personal, direct, and stewardship practices
transformative
• Launch internal brand
Cultural • Interpret Steiner's philosophy
management program
(Internal/external goals for 21st century financial markets
• Launch integrated staff hiring,
alignment) • Model our internal work on
development, and retention
three-fold social principles
program
• Increase assets and working
• Trusted financial institution capital base
Operational
• Strong assets, adequate • Improve risk management
(Sustainable growth and
working capital, and skilled practices
mission advancement)
management • Hire skilled candidates in key
positions
September 17, 2011 slide 12
15. Tricycle social innovation framework
innovation dimension core values strategies
• We develop and promote our
• As a multiplatform, global online platform as an open
media enterprise, we serve as a resource to the global dharma
network hub for a network of groups and community
(systemic impact) movements dedicated to bringing • Our business activities are
authentic Buddhist values to designed to actively support the
contemporary global society growth and development of
aligned dharma institutions
• Our content strategy is geared
toward a "new presentation" of
dharma that is relevant to
• As a social change agent, we
social contemporary life situations
showcase and demonstrate the
(authentic cultural, economic, • We actively identify and
efficacy of the contemporary
and ecological impact) showcase new, authentic
Buddhist path in a diverse,
teachers, cultural groups and
global, and networked society
movements that are dedicated to
addressing contemporary issues
from a Buddhist perspective
• We serve the emerging • We produce content and
community of Buddhist teachers, community designed to support
dharma institutions, and authentic teachers and teachings
practitioners who together are that reflect a diverse, and
client
giving birth to a contemporary inclusive view of the dharma
(performance, transparency,
presentation of the dharma-- •We bring teachers, dharma
and engagement)
grounded in authentic practice institutions, and practitioners
traditions, and well-suited for the together in a diverse, global,
needs of a diverse, inclusive, virtual practice community
global, networked society
• We follow explicit and
transparent operating policies
and that reflect our commitment
to Buddhist practice in the
• Our business is a practice: We
cultural workplace
approach everything we do as an
(internal/external goals • We recruit, hire, and develop
opportunity to help grow and
alignment) board and staff members who are
develop a diverse, inclusive,
committed to the Buddhist path
global dharma community
• We have adopted a mission
statement that explicitly
communicates how our Buddhist
practice informs our work
• Our core function is to organize
• We plan to create media
a diverse, inclusive, global
products and services that reflect
spiritual community that provides
our stakeholders' expressed
authentic teachings and related
needs and that attract their
operational resources to help stakeholders
explicit support
(sustainable growth and walk the Buddhist path in
• We will transparently involve
mission advancement) contemporary society
our stakeholders in setting our
• By adopting a diverse and
agenda and improving our
inclusive approach, we serve the
performance based on their
broadest range of contemporary
feedback
Buddhist practitioners possible
September 17, 2011 slide 15
18. Earthfire Institute impact framework v.3
impact dimension core values strategies
• A center for integrating a deep
ecological perspective within the
disciplines of art, business, • Develop special cross-
media, education, science, and disciplinary initiatives geared
network
spirituality toward bringing ecologists and
(systemic impact)
• A workshop for creating a new media makers together to create
narrative about the purpose and and extend the new narrative
value of protecting wildlife and
habitat
• Enrich the movement to protect
wild animals and habitat,
catalyzed via the learning
• Produce media that captures
social experience of entering into
the insights derived from the
(authentic cultural, economic, personal relationship with them
Earthfire learning experience and
and ecological impact) • Influence the discussion in the
exposes them to broader
fields of art, business, media,
audiences
education, and science about the
inherent worth of all life and
natural settings
• Influencers in the fields of art,
business, education, media,
science, and spirituality who are
• Develop peer-led programs that
interested in integrating a deep
allow influential leaders to
client ecological perspective with their
explore and deepen the insights
(performance, transparency, discipline
of their respective disciplines
and engagement) • Empower leaders to share their
through the medium of human-
experiences in ways that can
wildlife-habitat relations
influence dialogue and inspire
action among their peers and
colleagues
• A learning community of artists,
business people, educators,
media makers, scientists, and
cultural spiritual thinkers motivated to • Organize board of advisors
(internal/external goals share the insights derived from around the concept of a learning
alignment) the Earthfire experience community; introduce new
• Belief in the inherent worth of members based on this principle
the individual and the power of
relationship as the bases for
systemic change
• A wildlife sanctuary that serves • Develop learning experiences
as a laboratory for learning geared to influencers in art,
experiences that explore the business, education, media,
relationship between humans, science, and spirituality, to whom
wildlife, and habitat Earthfire represents a laboratory
operational • A stable, growing base of for extending their work in their
(sustainable growth and influential sponsors who connect own disciplines and sharing cross-
mission advancement) personally and professionally with disciplinary insights
the Earthfire experience and are • Widen the base of support by
inspired to share it with others extending these learning
• A revenue stream sufficient to experiences to influencers'
support program expansion and personal and professional
ongoing capital improvements networks
September 17, 2011 slide 18
20. Where social innovation is happening
Social innovation strategies are changing the way organizations are launching,
gaining scale, and entering global markets
• Markets
– Media
– Information technology
– Business and consumer services
– Nonprofits
• Disciplines
– Brand identity
– Strategic marketing
– Sustainability
– Social impact
– Digital transition
September 17, 2011 slide 20