lean startup approach to social entreprise v1
DESCRIPTION
Through the story of Crowdrunning, a startup with a social mission, we demonstrate how a lean approach and a lean mentor/coach can be helpful to turn a startup to a social entreprise using minimal time and resources. Wether it is a venture on its own or an innovation within a company you are working on - let us know your feedback and questions!TRANSCRIPT
Building a Social Entreprisevia a Lean Approach
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Andrea Darabos (Lean Coach, Lean Advantage)
Twitter: @Adarabos
Mail: [email protected]
Daniel Ludwig (Crowdrunning)
Twitter: @bydanielludwig @crowdrunning
Mail: [email protected]
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
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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 insidean 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:
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Lean Startup Coaching
• Lean Social Startups search for a repeatable business model that delivers solutionsto 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 yourassumptions 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(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Vision, Mission, Values
• What is the vision of your social startup?
• What is the mission?
Hint: narrow your focus. Focusing on a local problem helpsyou validate your business model faster and learn
• What values does your social entreprise stand for?
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Local Impact & Learning
• What local issue are you solving?
• What local impact are you aiming for?
• Iterate via the Build-Measure-Learn cycleto refine a working, sustainablebusiness model
• Then Scale up your Social Entreprise
SERVICE
Based on Eric Ries: The Lean Startup
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Social Startup to Social Enterprise
• Found a workingbusiness model
• Local issue, MVP, Run several Build-Measure-LearnExperiments
• Scale up workingmodel and repeatelsewhere
SERVICE
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Local Impact - Crowdrunning
• What we decided to focus on…
• Local community helping young people living in their community
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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?
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Stakeholder Personas - Crowdrunning
Young People
(Aged 16-25)
Charities (small,
medium)
Local Businesses
Runners (all levels)
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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 eachstakeholder’s pain?
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
MVP - Crowdrunning
To address EACH stakeholder’s
pain
Running based personal
development program (PDP) in the community
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Use the Lean Social Canvas
• In this order, think about:
• Use one copy of the Lean Social Canvas for eachstakeholder group
• Identify their pain
• Your startup’s Unique value propositions to address thesepain points
• A MVP solution as a possible way realizing these valuepropositions
• Metrics how we will measure success of meeting pain withthe solution
Template @ www.socialleancanvas.com
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
www.socialleancanvas.com
The Social Lean Canvas
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Lean Social Canvas – Charities – CrowdrunningPain/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)
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Amount of raised money throughCrowdrunning 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/GainBusinesses – 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
• Bi weekly Video & Film production with social media integration as proof for engagement with young people
• Monthly Milestone Meeting with other local partners (Networking)
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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/GainYoung 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)
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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/GainRunners - 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
• Bi weekly Video & Film production with social media integration for fundraising awareness
• Monthly Milestone Meeting with local partners and employees (Networking)
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Source: the foundation of social return on investment
(SROI)
Inp
uts Resources
invested in your activity
Act
ivit
ies MVS / MVP
Your Minimum Viable Service orProduct
Ou
tpu
ts The direct and tangible products from the activity, i.e., people trained, trees planted, products sold
Ou
tco
mes
(Sh
ort
-ter
m) Changes to
people resulting from the activity, i.e., a new job, increased income, improved stability in life
Ou
tco
mes
(Lo
ng-
term
) Impact = Outcomes less an estimate of what would have happened anyway
Vulnerable Youth Social Output and Outcome Model
Source: The Young Foundation 2012 (c) Crowdrunning 2014 | (c) Lean Advantage 2014
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 valueproposition 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
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
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
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Crowdrunning Logic ModelYoung People
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Inp
uts - Confidential -
Act
ivit
ies Weekly Running
Meetups
Bi weekly Video & Film production
Monthly Milestone Meeting (first Tuesday evening each months)
Ou
tpu
ts 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
Ou
tco
mes
(Sh
ort
-ter
m) 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)
Ou
tco
mes
(Lo
ng-
term
) - YP can fulfill their aspirations with local employment perspectives
- YP can leave shelter /hostel earlier
Crowdrunning - Measurement and Evaluation
(Young People)
Mea
sure
men
t to
ols - 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)
Init
ial E
valu
atio
n (
Pilo
t)
TBC
Res
ult
Eva
luat
ion
(3
Mo
nth
s)
TBC
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Build – Measure - Learn Cycle
• In what timeframe will you to build and execute theMVP?
• What metrics will you to validate you have solved pain?(Define Metrics per stakeholder group)
• When and how will you collect these metrics?
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Build-Measure-Learn - First iterationCrowdrunning
Timeplani.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 Learncycle
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Lean Startup Workshop forSocial Entrepreneurs and Intrapreneurs
• We run regular face-to-face workshops for socialentrepreneur teams, involving lots of pitching and iteration. Bring your idea and leave with a ready-to-validateproposition and your first MVP, MVS!
• Email us for more info @ LeanAdvantage.co.uk!
(c) Crowdrunning 2014 | (c) Lean Advantage 2014
Contact us withany questions!
Andrea Darabos (Lean Coach, Lean Advantage)
Twitter: @Adarabos
Mail: [email protected]
Daniel Ludwig (Crowdrunning)
Twitter: @bydanielludwig @crowdrunning
Mail: [email protected]
LEAN ADVANTAGE Ltd.
(c) Crowdrunning 2014 | (c) Lean Advantage 2014