1. IFS Conference 2008 Jamila Aman's Presentation 1 Social Entrepreneurship and Innovation

2. IFS Conference 2008 Jamila Aman's Presentation 2 Presented by Jamila Aman

3. IFS Conference 2008 Jamila Aman's Presentation 3 Workshop Purpose Celebrate and build on success Outline systematic approach Earned income –Establish business objectives/criteria –Product development –Product screening –Risk management and readiness Shared services (MSO) Venture philanthropy

4. IFS Conference 2008 Jamila Aman's Presentation 4 Social Entrepreneurship We are a world of wall builders, partitioners, and dividers of space. We long for the security of safe places. We construct these barriers in a vain attempt to control the elements, to keep the rain from dampening the fire, the wind from covering ours lives with the inevitable dust. Many of the walls we build are essential to our survival. Many, however, are not. By fortifying the unnecessary walls, we in business (for profit and not-for-profit)..huddle in the systems we have closed. The consequences: thinking decays and novelty vanishes. Open Boundaries- Howard Sherman and Ron Schultz1998

5. IFS Conference 2008 Jamila Aman's Presentation 5 Social Entrepreneurship Application of entrepreneurial attitudes to social sector: –Change is the norm –Embrace change –Seek change –Client focused –Shift resources from low to high productivity –Calculated risks –Create something new –Strive for Transparency

6. IFS Conference 2008 Jamila Aman's Presentation 6 Organisational Readiness Risk Management

7. IFS Conference 2008 Jamila Aman's Presentation 7 Issues Fear of loss of control Resources – financial/human Risk averse culture Conflicting ends Lack of structure/governance for success

8. IFS Conference 2008 Jamila Aman's Presentation 8 Organizational Readiness Strategy Governance Human resources Finances Operations, Products and Services Market perspective

9. IFS Conference 2008 Jamila Aman's Presentation 9 Strategic Management Overview C. Input D. ThroughputA. Output Current State Change Management Strategic Implementation Annual Strategic Review and Update Future State 5. Current State Assessment and Business Planning 4. Objective Development 3.Strategic Priority Parallel Process with Key Stakeholders 2. Strategic Planning: Vision, Mission, Values B. Feedback

10. IFS Conference 2008 Jamila Aman's Presentation 10 Mapping the Future Ideal Future Vision Formulate dreams that are worth believing in & fighting for by meeting 3 challenges. Challenge #1. Vision Statement Challenge #2. Mission Statement Challenge #3. Core Values

11. IFS Conference 2008 Jamila Aman's Presentation 11 Ideal Future Vision Answer all or any of the following questions : What will put you out of business? What is your ultimate vision of success? What is your ideal community vision? Answers may be - end of homelessness, hunger etc.

12. IFS Conference 2008 Jamila Aman's Presentation 12 Mission What is your organization’s part in achieving the vision? What do we produce? Who do we serve? How do we do it?

13. IFS Conference 2008 Jamila Aman's Presentation 13 Values What do board members & employees stand for & embrace? What are the rules? May include integrity, transparency, entrepreneurship, innovation etc

14. IFS Conference 2008 Jamila Aman's Presentation 14 Strategic Priority Development Balanced Score Card Format Consider organizational success from more than one perspective, for example: Internal Business Processes Client Financial Human Resources

15. IFS Conference 2008 Jamila Aman's Presentation 15 Strategic Priorities Financial Answer the question: How do you wish to appear to your owners/funders? Client Answer the question: How do you wish appear to your client/customer? Internal Business Processes Answer the question: In order to achieve your mission, what business processes must you excel at? Human Resources Answer the question: How do you sustain your ability to learn and grow? Vision Mission Values

16. IFS Conference 2008 Jamila Aman's Presentation 16 Earned Income

17. IFS Conference 2008 Jamila Aman's Presentation 17 Results in Other Ventures 90% of successful ventures relate to the non- profit’s mission Planning matters 46% of non-profits with ventures have more than one 69% are profitable Profitability is reached in 2.5 years on average Only 10% use a spin-off – cutting edge The largest benefit is the creation of an entrepreneurial culture (58%) From a survey of non-profits operating business ventures

18. IFS Conference 2008 Jamila Aman's Presentation 18 Systematic Approach

19. IFS Conference 2008 Jamila Aman's Presentation 19 Systematic Approach Determine organisational –Need for innovation –Purpose Organisational readiness and commitment Product development –Search for opportunities –Create new services and screening –Research, design, testing –Launch, evaluation and revision Portfolio approach

20. IFS Conference 2008 Jamila Aman's Presentation 20 Strengthens Organisations Achieves Mission Generates revenue –Unrestricted –Greater degree of control –Enables growth beyond funding base Supports mission and strategic plan Create valuable new services/SROI Enhances profile

21. IFS Conference 2008 Jamila Aman's Presentation 21 Balancing Mission and Financial Return Strong Business Case SECOND PRIOIRTY BUSINESS HIGHEST PRIORITY VALUE ADDED Weak Business Case DON’T PURSUEPHILANTHROPY LimitedAdvances Mission

22. IFS Conference 2008 Jamila Aman's Presentation 22 Product Development Process Planning for Success

23. IFS Conference 2008 Jamila Aman's Presentation 23 Definition of a Good Idea Meets a significant customer need – a market Return on investment Risk managed Competitive advantage –Cost –Performance Leverages a strength/asset Fits with mission/values

24. IFS Conference 2008 Jamila Aman's Presentation 24 Enterprises Mission related products or services –Same product, new market: geographic or customer –Programme related products (manuals)/services (EAP) –Staff resources (MSO/training) –Public sector contracting New product/leveraging organisational strengths –Client resources (social firm) –Soft assets intellectual property (licensing/franchising) –Hard assets (rental) Unrelated business (Ben & Jerry’s)

25. IFS Conference 2008 Jamila Aman's Presentation 25 Product Creation Pre-work Scan –Community trends and needs –Potential market opportunities – market research –Attend conferences/read magazines/annual reports/web/etc –Assess what competitors are doing Scan –Internal capacities (swot) Leading edge networking

26. IFS Conference 2008 Jamila Aman's Presentation 26 Brainstorming Use information/knowledge/fantasy/dreams/intuition Build on experiences of and skills/knowledge in the organisation Lateral thinking, scramble patterns –e.g. pose a problem and only outrageous solutions are suggested Look at data for opportunities, look at it from other people’s perspectives Be excited, accept thoughts/play with them - have fun Bring experts from different organisations together Discuss with others, family, friends, associates

27. IFS Conference 2008 Jamila Aman's Presentation 27 Level 1 Screening Criteria Does the idea further your vision, mission, values and strategic priorities? 1=no, 2=partial fit, 3=full fit Is there a potential customer benefit? 1=none, 2=some need/some customers, 3=urgent need/many customers Are there profit potential (by third year)? 1= less than 20K, 2=more than 20 k but less than 50k, 3= more than 50k What investment is required? 1 = major investment, 2 = minor investment, 3 = achieve with current resources Is there a champion? 1=no, 2= neutral 3=yes Is there risk? 1 = high risk (no known mitigation), 2 = medium risk (new strategies needed), 3 = low risk (strategies in place) Scoring: each idea will have a score of 6-18

28. IFS Conference 2008 Jamila Aman's Presentation 28 Screening Phase 2 Create a concept statement –Describe product –Target audience and reason for buying it –When, where, how? Product attractiveness –Financial results –Marketing issues and competitors –Risk factors Does it fit with the organisation? Test with sample of external experts

29. IFS Conference 2008 Jamila Aman's Presentation 29 Screening Phase 3 Feasibility Analysis and Priority Setting –Does the product have financial potential? –How likely is the product to implemented successfully (easy or hard)? –Is an investment required? –Is an investment justifiable in terms of financial or mission improvement? –Does the product advance mission and strategic priorities?

30. IFS Conference 2008 Jamila Aman's Presentation 30 The Success Quadrant High financial and social impact Low Potential Consider Later Top Priority Continue Screening Low financial and social impact Not Strategic Do Not Consider Further Long Term Consider Second Low (Idea will be relatively difficult to implement) High (Idea will be relatively easy to implement) Fit with Organisation

31. IFS Conference 2008 Jamila Aman's Presentation 31 First Set of Measures Product A

32. IFS Conference 2008 Jamila Aman's Presentation 32 Second Set of Measures Product A

33. IFS Conference 2008 Jamila Aman's Presentation 33 High financial and social impact Low financial and social impact Low (Idea will be relatively difficult to implement) High (Idea will be relatively easy to implement) Product A Strength of Idea Fit with Organisation

34. IFS Conference 2008 Jamila Aman's Presentation 34 Screening Phase 4 Business Planning

35. IFS Conference 2008 Jamila Aman's Presentation 35 Benefits of Writing a Business Plan Refines the idea Writing it down makes it real Creates a framework for making the idea happen Method of external communication Internal due-diligence tool

36. IFS Conference 2008 Jamila Aman's Presentation 36 Guidelines for Successful Plans Aim for a maximum of no more than twenty pages in the main body of the plan Be as brief and crisp as possible when explaining your idea and strategy Quantitative Specific Cover what investors are looking for Address risk and exit

37. IFS Conference 2008 Jamila Aman's Presentation 37 Business Plan Format Cover Page and Executive Summary Description of the business Industry and Market Analysis Marketing, Communications and Sales Plan Management and Operations / Launch Plan Risk Assessment and Contingency Plan Exit Strategy Financial Plan for Your Venture Supporting Documents

38. IFS Conference 2008 Jamila Aman's Presentation 38 After That…. Development Testing Launch Entrepreneur

39. IFS Conference 2008 Jamila Aman's Presentation 39 Organisational Structure

40. IFS Conference 2008 Jamila Aman's Presentation 40 Why Separate? Different cultures/ends Shield non-profit from business risk Raise external capital Enhance focus on non-core markets without compromising non-profit’s purpose or funding

41. IFS Conference 2008 Jamila Aman's Presentation 41 Structure Non-profit Organisation Intellectual Property Operational Support Purchase Of Service Enterprises Holdings Business Investors

42. IFS Conference 2008 Jamila Aman's Presentation 42 Transition Clean break, separate entities Share resources, purchasing services Conflict of interest Sharing management Compensation Share purchasing Transition plan and monitoring

43. IFS Conference 2008 Jamila Aman's Presentation 43 Relationship With Non-profit Customer/vendor/owner (major shareholder) Separate companies – consistent vision Some price concessions to keep charity as a customer and meet mission Mutually beneficial for Enterprises to succeed Negotiated and governed by contract

44. IFS Conference 2008 Jamila Aman's Presentation 44 Significant Key To Success Foster a dynamic, success generating, entrepreneurial ethos Provide support to staff who are: Creative Innovative Entrepreneurial Productive Successful Aspiring

45. IFS Conference 2008 Jamila Aman's Presentation 45 Partnerships, Alliances Mergers, Acquisitions

46. IFS Conference 2008 Jamila Aman's Presentation 46 Working together –Creating efficiencies –Enhancing quality Allowing for a focus on services Supporting social enterprise

47. IFS Conference 2008 Jamila Aman's Presentation 47 Context Pressure to create efficiencies Enormous duplication

48. IFS Conference 2008 Jamila Aman's Presentation 48 One Approach - MSO A management service organisation (MSO) is an integration that includes the creation of a new organisation in order to integrate administrative and fundraising functions, and thus to increase the administrative efficiency and effectiveness of participating organisations. It may include co-location.

49. IFS Conference 2008 Jamila Aman's Presentation 49 Benefits Enhances quality, strengthens organisation Generates revenue: cost savings/profit Frees management time Keep up Enhances profile/reinforces advocacy partnering Reduces risk Entrepreneurial spirit Supports mission and strategic plan

50. IFS Conference 2008 Jamila Aman's Presentation 50 Examples of Savings and Quality Enhancement Procurement –Average 26%, Up to 50% on certain items –One organisation – 32% savings (equivalent of a 1 FTE freed up for the organisation) Finance/HR/IT –Higher quality, more comprehensive service –Potential for savings/minimally breakeven Fundraising –access to focused expertise at low cost

51. IFS Conference 2008 Jamila Aman's Presentation 51 MSO Possibilities

52. IFS Conference 2008 Jamila Aman's Presentation 52 Process Creative/interactive/inclusive Full participation of the stakeholders, leading to a strong sense of ownership Mentoring Idea creation and implementation process Systematic

53. IFS Conference 2008 Jamila Aman's Presentation 53 Way Forward Initial meeting/test concept Research/interviews/preliminary assessment Workshop/obtain commitment to the process Business feasibility and priority setting Stakeholder meeting/commitment Business planning and communication ‘Partner’ meeting/buy-in Launch/build scale Add products Add members/customers

54. IFS Conference 2008 Jamila Aman's Presentation 54 Process Refine Business Plan with Trustees Council support - letter of intent - £1.25M Identify other markets Discussions with other potential partners Fundraising Commitment from Trustees to MSO Launch MSO Early 06

55. IFS Conference 2008 Jamila Aman's Presentation 55 One Final Thought

56. IFS Conference 2008 Jamila Aman's Presentation 56 The acid test for shared services (Tom Peters) Are we good enough to sell this service on the open market? If not, why are we “buying” from ourselves when nobody else would buy it from us?

57. IFS Conference 2008 Jamila Aman's Presentation 57 Venture Philanthropy High Engagement Giving

58. IFS Conference 2008 Jamila Aman's Presentation 58 What is Venture Philanthropy? Capital and human resources invested in charities by various types of investors in search of a social return on their investment. VP involves a high engagement over many years with fixed milestones and tangible returns and exit achieved by developing alternative, sustainable income.

59. IFS Conference 2008 Jamila Aman's Presentation 59 Venture Philanthropy Investing In Programmes Services InfrastructureCommercial Ventures Social Enterprise

60. IFS Conference 2008 Jamila Aman's Presentation 60 Elements Capital for growth, reliable money Human resource expertise/strategic coaching Partnering internally and externally Performance centred, results orientated Long term, exit strategy to sustainability Business case/plan Business to business presentation Management, board, cash management, impact

61. IFS Conference 2008 Jamila Aman's Presentation 61 Venture Philanthropy Priority Significant problem Appropriate solution SROI Enthusiasm/being with a winner Impact/building on success Innovative and entrepreneurial Fit with your values/vision

62. IFS Conference 2008 Jamila Aman's Presentation 62 VP Benefits – A US Example What Funders and Grantees Say Partnering Reliable, long term grant money Improved organisational capacity, better: –Evaluation systems –Marketing business and strategic planning –Fundraising Improved organisational performance/growth For every $1 invested, $3 gained in expertise

63. IFS Conference 2008 Jamila Aman's Presentation 63 UK VP Activities Just Beginning Funds –World-in-Need –Impetus –Laidlaw/Ryan Corporate Involvement –Shell –Diageo EU VP Association Examples –Charity Technology Trust –Plan International –Tomorrow’s People –Help the Hospices

64. IFS Conference 2008 Jamila Aman's Presentation 64 Investor Motivation Apply knowledge/intellectual stimulation High engagement Joy of giving Image enhancement Social return on investment Corporate social responsibility Help business units achieve their goals

65. IFS Conference 2008 Jamila Aman's Presentation 65 Case Study: Corporate Venture Philanthropy Diageo plc –Small number of very high engagement initiatives –Directly led to the creation of Tomorrow’s People –Board and management support –Measurement and accountability SROI evaluation Communication of value to stakeholders in community –Exit strategy in long term

66. IFS Conference 2008 Jamila Aman's Presentation 66 Case Study: Strategic Partnerships New Profit, Inc. –Modelled after a venture capital fund –Significant support to few investments –CEO coach from Monitor Group –Board of Directors position –Portfolio manager –Access to other resources

67. IFS Conference 2008 Jamila Aman's Presentation 67 Trade Association Driven Fund Social Equity Fund –Created by trade association to further its business objectives –Special purpose fund managed by the trade association using VP principles –Invests in charities in a competitive fashion – an market place for innovation –Mechanism for member organisations to act as high engagement donors

68. IFS Conference 2008 Jamila Aman's Presentation 68 Trends Increased/new capital and expertise Impact on/leverage with other funders VP model will evolve Impact on charity behaviour

69. IFS Conference 2008 Jamila Aman's Presentation 69 Increased Capital New philanthropic giving - people or corporations who may otherwise not be philanthropic Opening up opportunities beyond CSR departments to access funds/expertise from the various business units Increase the level of commitment of existing donors, reinvigorating and advancing mature funding relationships Success stories will lead to expansion in Europe

70. IFS Conference 2008 Jamila Aman's Presentation 70 Leverage Outside Of Movement Traditional grant makers will adapt some of the principles of the movement Increase in the acceptability of infrastructure funding Traditional grant makers will co-invest with venture philanthropists Venture philanthropy due diligence/investment will act as a positive signal to other grant makers Venture philanthropists will provide services to support other grant makers

71. IFS Conference 2008 Jamila Aman's Presentation 71 Evolution Of The Model Partnering in a true sense - working within the mission of the organisation as opposed to driving the mission Social return on investment evaluation will continue to be applied, leading to more efficient practices Increase in investing in mission-based social enterprise/trading for a FROI/SROI

72. IFS Conference 2008 Jamila Aman's Presentation 72 New Capital Structures Funders will create blended fund portfolios – diverse funders, joint working Charities will lead the creation of captive funds in support of their mission

73. IFS Conference 2008 Jamila Aman's Presentation 73 The Organisational Strategic Plan Internal Marketplace ORGANISATIONAL EXPERTISE Funds Portfolio £ Capital Innovation Fund Revolving Innovation Fund Endowment Innovation Fund BUSINESS PLANNING Extra capacity + expertise INVESTOR EXPERTISE INVESTOR biddinginvestment

74. IFS Conference 2008 Jamila Aman's Presentation 74 Changes In Charitable Organisation Behaviour Charities will proactively encourage venture philanthropy and create venture philanthropists – creating an internal market Increased emphasis on social return on investment will encourage a more efficient use of resources Increased familiarity with business language and practices

75. IFS Conference 2008 Jamila Aman's Presentation 75 Screening Criteria Significant problem/appropriate solution/SROI Good strategy, business plan, exit strategy Good management team Do the numbers make sense? Enthusiasm/being with a winner –Building on success –Innovative and entrepreneurial –Fit with your values/vision

76. IFS Conference 2008 Jamila Aman's Presentation 76 SROI Elements Issue/problem Solution (product/service) Investment required Desired outcomes –Client –Organisation/enterprise –Stakeholder/investor desired outcomes Data management/evaluation Social and financial return on investment –Social enterprise financial performance/value –Cost savings/gains to government –Client Sources of information –Roberts Enterprise Development Fund –New Economics Foundation

77. IFS Conference 2008 Jamila Aman's Presentation 77 Strategic Issues Develop criteria in partnership Trust, partnering and control Due diligence and fit Innovation and risk taking Organisational readiness Cultural differences Exit and sustainability

78. IFS Conference 2008 Jamila Aman's Presentation 78 Process with a Charity Product development/feasibility study Finalise programme/infrastructure/commercial selection and internal fund structure Finalise readiness issues and solutions/plans Prepare business cases and business plans Research, preparation and training Launch, implementation and evaluation Networking and business to business presentation Follow-up and negotiation

79. IFS Conference 2008 Jamila Aman's Presentation 79 Identifying Potential Investors Current supporters and their networks –Existing member/donor database –Member/donor networks –Staff/volunteer knowledge Research –Competition –Rich lists –Trusts –Media –Investor groups –Companies Demographic identification and analysis Networking/interviews/feasibility testing

80. IFS Conference 2008 Jamila Aman's Presentation 80 Business Case (Two Pages) Quote Problem/market Solution/business idea –Right strategy –People to make it work –Exit/sustainability SROI/FROI The organisation and its desirability

81. IFS Conference 2008 Jamila Aman's Presentation 81 Success Factors in Obtaining The Investment Is the proposal convincing? Did the unique value come through? Is the proposal customer driven? Was it credible? Was it enthusiastic? Would you remember the presentation? Was the presentation style compelling? Did it catch your attention in the first minute? Was the “ask” or proposal clear?

82. IFS Conference 2008 Jamila Aman's Presentation 82 Key Learnings Build on current network, donors and investors Research the investor Focus on and engage the investor, think laterally It is a sales process Be patient/persistent, it could take up to 2 years It is partnering, be organisationally ready

83. IFS Conference 2008 Jamila Aman's Presentation 83 How would you apply earned income/MSO/venture philanthropy to your Organisation?

84. IFS Conference 2008 Jamila Aman's Presentation 84 Some Great Resources…  Fraser Valley Centre for Social Enterprise www.centreforsocialenterprise.com  Social Enterprise Alliance www.se-alliance.org  Social Venture Network, www.svn.org  Social Venture Partners, www.svpi.org  Centre for Community Enterprise www.cedworks.com  Centre for Social Innovation www.socialinnovation.ca

85. IFS Conference 2008 Jamila Aman's Presentation 85 More Great Resources…  Toronto Enterprise Fund www.torontoenterprisefund.ca  Aperio Consulting www.aperio.ca  Andrew Horsnell & Associates www.AndrewHorsnell.com  Canadian Social Entrepreneurs Network www.csen.ca  npEnterprise Forum, www.npEnterprise.net  Sustainable Enterprise Resource Centre www.sustainabilityincubator.com

86. IFS Conference 2008 Jamila Aman's Presentation 86 More Great Resources…  Canadian Conference on Social Enterprise www.socialenterprise.ca  Business and Sustainable Development www.bsdglobal.com  Canadian Centre for Social Entrepreneurship www.bus.ualberta.ca/ccse/  Canadian Business for Social Responsibility www.cbsr.ca  Sustainable Enterprise Academy www.sustainableenterpriseacademy.com  Net Impact, www.netimpact.org  www.GreenBiz.com  www.greenleaf-publishing.com

87. IFS Conference 2008 Jamila Aman's Presentation 87 Yippy! We Are Done!

88. IFS Conference 2008 Jamila Aman's Presentation 88 Jamila M. Aman 4330 Brandon Gate Drive Mississauga, Ontario L4T 3K4 Direct: 416-618-3041 jaman@northw.ca http://www.northw.ca