the definitive guide to scaling social enterprise
Post on 07-May-2015
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The Definitive Guide to Scaling Social Enterprise
Rizwan Tayabaliwww.socialeffect.org | www.globosocial.org
© 2007 Charteris plc 2
Outline
1.Commercial vs. Social Scaling
2.Three Myths
3.New Models for Scaling Social Enterprise
4.The Future
Commercial vs. Social Scaling
Commercial scaling is about more money
The dream is explosive financial growth
Typically via any of 4 scaling models
Organic GrowthFranchisingAcquisition
Merger
These models are often costly in both their inefficiencies and the
challenges of managing quality...
...but profits and easy access to borrowing typically mask these issues.
These models are also often assumed to be the ONLY options for
ALL organisations.
Social scaling however is about better outcomes
The dream is a world without hardship
Different goals require different approaches
Which means that the same models are NOT necessarily the answer.
Some SE’s are easy to scale using standard commercial models...
...typically where they offer simple products or packaged services
For those with complex human factor programmes it is not so straightforward
They face significant organisational challenges in scaling through
traditional models
Lack of sector infrastructure
Skills or capacity gaps
Local dependence on CEO/Founder
Raising Necessary Investment
So we need to start thinking differently
3 Myths
Myth 1
Commercial models apply for all orgs
Myth 2
Replicating process is the way to scale
Myth 3
Scaling is typically linear
New Models for Social Scaling
True social enterprises create and prove financially viable models of
change...
...they are NOT simply about making money in socially beneficial ways.
So although scaling for social enterprises involves elements of
traditional commercial scaling up to the point of proving sustainable
models...
...beyond that, the end-goal is about scaling the outcomes.
The SE’s model of viable change must therefore be seen as
separately scalable from the organisation itself.
4 Categories
NOTE:
1. Scaling can be quantitative or qualitative, but ideally both., so aim for approaches that best achieve these together.
2. The examples given, even if not always perfectly in the SE space, are simply to provide reference and proof that these scaling mechanisms can and do exist. They are a viable basis
for customisation, innovation, or mixing and matching depending on your organisation’s model of change.
1. Piggybacking
i.e. Leveraging the scale of others
Scaling through government
e.g. Cimientos who have convinced the Argentinian state to model their 500,000 scholarships on the ones they provide
Scaling through policy
e.g. Care Peru who prove their models work and then lobby presidential candidates to ensure that policy is amended to
safeguard change when they get in power
Scaling through transgovernmental organisations
e.g. Convincing, or merging with, entities like the Red Cross or UNICEF to incorporate proven models.
Scaling through business
e.g. Hybrid value chains like the partnership between Carlos Cruz and Danone to offer formal job opportunities to
marginalized communities outside Mexico City while creating a new distribution channel for nutritious goods.
Organisation must evolve to support delivery
2. Dispersal
i.e. Seeding the model and facilitating the spread
Scaling through transferability
e.g. 826 National and Transition Towns that have seeded a host of local variants around the original model
Scaling through microfranchising
e.g. Vision Spring’s “Business in a Bag” empowering local entrepreneurs to launch their own businesses selling eyeglasses
Organisation must evolve to manage spread or distribution
3. Movement
For models where successful social outcomes require changing mass
behaviour
Scaling through brand
e.g. La Usina who are developing a premium clothing brand that raises awareness of disability rights
Scaling through mass participation
e.g. Ashoka in Mexico who are aiming to create a culture of civil action via a 10 year managed program of ideas for change
Scaling through co-operation
e.g. Movimento Nossa São Paulo which is a network of 600 civil organisations working together to lobby government
with an agenda and set of goals to provide a better quality of life for all inhabitants of São Paulo
Organisation must evolve to manage the logistics supporting movement
4. Open Standards
i.e. Leveraging open interaction for funding, design, development, and
delivery.
Scaling through open source
e.g. Ushahidi which uses open standards and collaborative networks for sourcing development and leverages the power
of crowds for delivering change
Scaling through open design
e.g. Cipla’s generic retroviral drugs. Open (unpatented) design can and should be extended to product innovations addressing social needs. Innovator may enforce commons
licensing for efficiency and learning sharing with organisations that reproduce design.
Scaling through collaborative networks
e.g. SpineConnect, which is a collaborative innovation network (CoIN) for spine surgeons to collaborate on difficult
and unusual cases and develop better outcomes.
Organisation must scale to provideadvisory support and platforms
for continuous improvement
The Future?
The world is changing
Both sectors are realising that building in financial or social aspects
at start, adds little extra cost and significant rewards
Web 2.0 is forcing companies to converse to build loyalty, which in
turns forces them to humanise and stay true to social values.
Social entities are using brand, business model innovation, creating revenue streams, and leveraging the
power of crowds.
The sectors will merge even further
New models of operating, new ways of working, and new options for scaling will continue to arise...
Watch this space!!
Rizwan TayabaliSE Consultant, Social Effectrizwan.tayabali@gmail.com www.rizwantayabali.info www.socialeffect.org | www.globosocial.orgFind me on Twitter & LinkedIn
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