Beyond profit

transcript

Beyond Profit: Lessons from Social

Enterprise

A story about a man and $27

"looking for the most timid."

"Shameless Exploitation in Pursuit of the Common Good".

Simply a good brand or a great model?

Towards a definition: Conditions necessary

Entrepreneurial context

Sub-optimal equilibrium

Entrepreneurial characteristics

New equilibrium

The pursuit of “mission-related impact.”Social Entrepreneurship: The Case for Definition, Stanford Social Innovation Review Spring 2007Roger L. Martin & Sally Osberg

The importance of definition..

“Social entrepreneurship…combines the passion of a social mission with an image of business-like discipline, innovation, and determination commonly associated with, for instance,

the high-tech pioneers of silicon valley”(Dees (1998, p1))

Some Stats, Trends and Big Society

The sector overviewIncome spectrum

The Sector: Some facts

62,000 Social Enterprises in the UK 1

Civil Society was estimated to have contributed £147 Billion to the economy in 2007/082

£77bn contribution by social enterprise activity3

78.6% ave growth 4

56% increased TO (20% reduced TO) vs SME’s where 28% increased (48% reduced) 5

1. 2009 Annual Survey of Small Businesses (ASBS)2. Singh, A. ‘The Civil Effect’ (2010)3. The UK Civil Society Almanac4. RBS SE100 Data Report 20105. IFF Research, 2009, BERR SME Business Barometer February 2009, Department for

Business,Enterprise and Regulatory Reforms (BERR)

<£10K£10k-£50K£50K-£100K£100K-£250K£250K-£1M£1M-£5M£5M-£10M£10M +

Source: State of social enterprise survey 2009 Social enterprise coalition

The Sector Size

Sector sizeThe Sector overview

Source: State of social enterprise survey 2009 Social enterprise coalition

Trends

www.trendwatching.com

A societal shift?

Embedded Generosity

Random Acts of Kindness

Generation GStatus Fixes –Generosity,

Connectivity, Green

The route cause

Trends

www.trendwatching.com

Changing trends

71% of people buy brands from companies whose values are similar to their own. (Source: Young & Rubicam, August 2010.)

In 2006, ‘strong financial performance’ was the third most important factor for US consumers in determining corporate reputation. By 2010,‘transparent and honest practices’ and ‘company I can trust’ were the two most important. (Source: Edelman Trust Barometer, 2010.)

“87% of UK consumers expect companies to consider societal interests equal to business interests, while 78% of Indian, 77% of Chinese and 80% of Brazilian consumers prefer brands that support good causes”. (Source: Edelman, November 2010.)

• Empowering individuals and communities

• Encouraging social responsibility

• Creating an enabling and accountable state

East End Prints

What can we learn?

Purpose and

passion

What are you best

Economic engine

The importance of purpose1

Source: Jim Collins: Good to great

•Annual turnover: £2 million•Doubled in size in 2010•100% traded income•25% of profits into bursaries

The importance of Purpose1

• Involving young people at the front end of the creative process

• Key proposition is Co-Creation

• Applying youth marketing, to one of the most enduring of challenges, helping young people to fulfil their potential

• Clients include: Google, Coke, PlayStation, BBC, Home Office, O2 and C4

The best place to work?1

Focus on what you stand for not what you do

1. Be inspiring to those inside the company. 2. Be something that could be as valid 100 years from now as it is

today. 3. It should help you think expansively about what you could do but

aren't doing. 4. Help you decide what not to do. 5. Authentic to your company/brand. Companies that fail on this count

are often the ones that really don't stand for anything and never will.

What is your purpose?1

• Deep understanding of target audience

• Social entrepreneurs observe, experience, question, challenge

• Relentless determination to change driven by purpose

• Skilled at re-directing, using and regenerating under-used, abandoned, redundant or derelict human and physical resources

• Work in creative partnership with multiple organisations

Innovation & creativity2

• FoodWorks brings together young volunteers, surplus food and an idle kitchen space to create nutritious meals for people affected by food poverty in the community.

• Triple donation model has allows nutritious meals at a low cost.

“Close to 80% of innovation thinking is learned and acquired... it's like exercising your muscles -- if you engage in the actions you build the skills” Hal Gregersen

Innovation is learned skill2

Skills include: • Associating, questioning, observing,

experimenting and discovering.

• Identify a problem and write nothing but questions about it for 10 minutes a day for 30 days

• Identify a business, customer, supplier, or client, and spend a day or two observing

• Set aside 30 minutes a week to talk with a contact you wouldn't normally talk to

3 things you can do to be more innovative2

Efficiencies through ownership

• Employees have a stake in the outcome• Workers come from the community itself• Employees are often the benefactors• Input is directly related to output

Ownership & employee participation3

• 1 farmer...8000 landlords

• £800K community shares

Ownership and participation3

Organisational alignment4

People

Purpose

Activity

Impact

Measures

Sustainable communities4

Measurement & Social Return4

• 86% of social enterprises report on impact of activities 1

• Evaluation is thought of at the earliest stage– What do we want to do and how will we measure it?

• Anticipatory rather than retrospective evaluation• Real time evaluation

1. RBS SE100 Data Report 2010

Social enterprise in Public services

Commercial outcome•£23.3m Turn Over• Ave growth 20-25% per year for past 5 years• 99% on time

Measurement of social impact• 117 long term unemployed into work• +26% increase in passenger journeys

to disadvantaged groups• +64% increase in journeys for

passenger groups

Commercial success is enabling community impact

Challenges for Social Enterprise

• Access to finance• Business support• Capability building• Bridging the credibility gap • Sustainability • Partnerships (private and public sector)

What of the future?

• Government’s reforms open up public services to more diverse sources and methods of delivery

• Increased competition between sectors

• Skill sets between the sectors become more similar and an increasing number of people may switch sectors

• Increased consumer demand to embed societal sustainability in organisations

Source: http://www.3s4.org.uk/drivers

Business brains for social gains

Who we are: Our values and other things

We are an innovative, dynamic business development agencyspecialising in the social sector. We help make social businesses happen, by bringing commercial practices and skills from the private sector.

Like the people we partner with, we are passionate about social change and we are disciplined in developing sustainable business. When you combine passion with disciplined thinking and action you can affect real change.

We believe every person and organisation can benefit from a set ofprinciples which defines what they do and how they do it. Below we set out the principles that we live by, in business and personally:

• Anything can be done • Don’t let adversity stand in the way of a good decision • Say it as it is • Be more passionate about clients' success than they are • Be human, be kind, be empathetic • Don’t do it if you don’t believe in it - not for all the money in the

world • Be demanding www.provadisgroup.com

Business brains for social gains

Tamsin Fielden is an energetic, skilled sales and marketing professional with 16+ years experience in consumer, healthcare and third sector organisations. She has worked for the likes of Unilever, Colgate Palmolive, Raleigh International, Manchester Business School, Bristol Meyers Squibb.

A passion for social change and innovation led Tamsin to establish Provadis in 2009, to help make social businesses happen. She works with social enterprises, community groups and charities to help them access commercial skill-sets through a hybrid training/consultancy model that builds capacity in people quickly.

She works with start-up through to small/medium sized social businesses with aspirations for growth and commercial organisations aiming to deliver social value. She has delivered programmes in youth and community engagement, employability, mental health and delivered a Social Enterprise action learning conference in partnership with Manchester Business School and Social Solutions Academy in 2010.

Her expertise includes visioning and strategic positioning; marketing strategy, action planning; team development and facilitation; marketing communication; project management, implementation and evaluation. Her experience ranges from leading global product portfolios of over $300m, with budgets in excess of £1m to project managing community school builds in Africa.

tamsin@provadisgroup.com0161 980 137107940 923 102

www.provadisgroup.com

Tamsin Fielden: Managing Director