We are thrilled to announce the launch of our new weekly blog and 24/7 social media platform, which will feature bite-size posts providing you with the latest trends and ideas within the social sector. It will include original thinking, but also collect the latest thinking with the goal of being a place for the interested to visit and be inspired, cross-pollinate, and provoke new thinking.

Our resolution for 2013 is for Social TrendSpotter to become a key resource for you and your team, so feel free to bookmark and share it. Or, follow us on Facebook, LinkedIn, or Twitter for the latest posting.

We also believe that our readers will be our best “ Social TrendSpotters,” so please send them along.

Social Enterprise: Trend or Fad?

Posted on May 15, 2013 by suzanne

Many have asked the question – what is special about social enterprise? Is it a trend or a fad? Social enterprise has been around for almost a century through the groundbreaking work of pioneers such as YMCA, Goodwill, and Girl Scouts. It has recently taken root in the social nomenclature and almost 50% of all social service agencies have adopted it as not only a principle to earn income for their organization, but as a way to advance the social and economic goals of the community. In Cincinnati alone, based on a survey conducted by Flywheel: Social Enterprise Hub, it was estimated that 30% of local nonprofits operate a social enterprise. Of those operating social enterprises, 50% operate one social enterprise, 30% operate two social enterprises, and 20% operate three or more social enterprises. 44% of these organizations started their first social enterprise in the last decade. Based on these results, social enterprise is not a fad, but instead is a paradigm for how many nonprofit organizations are serving their mission as well as earning unrestricted income to support their organization.

How do you start? Whether you are new to social enterprise or starting another social enterprise, you begin the same way:

Uncover your strengths: Research suggests that the most successful enterprises (for-profit or social) leverage each individual’s or organization’s strengths. Begin with your staff and/or board and brainstorm – what do we have, do, or know? Think broadly about your unique assets. For example, you may operate a Meals on Wheels program for your local community, but use the kitchen only from 1-5 PM and the kitchen could be utilized for more.

Evaluate your strengths: After you identify your strengths, vote on the top 5 to 7 strengths based on which are most unique, have value to others, and are closest to your mission. Using Handout A, walk through each question for each top strength and identify possible opportunities. Based on our previous example of the kitchen, you have many opportunities – rent the kitchen to others, start a catering business, or provide additional meals.

Assess your opportunities: After you identify your opportunities, vote on the top 5 to 6 opportunities and then walk through Handout B to assess their promise based on ease of implementation, mission fit, and profit. With these scores, you will have an objective assessment of which opportunities have the most promise.

Social enterprise is not right for every organization – it requires the right opportunity, the right timing, and the right process. Once you determine that all of these are aligned, take each opportunity and conduct a feasibility assessment. The feasibility assessment allows you to “fail early and cheaply” and helps you decide on a go or no/go decision. If the feasibility assessment is promising, the next step is developing a business plan to create a roadmap for the social enterprise. In future editions we will further detail each of these steps, but feel free to email us with questions. For additional information, Social Impact Architects also offers workshops on Social Enterprise 101, Social Enterprise 201, Business and Financial Models, and Business Planning in communities across the country.

We are also excited that the next edition of our blog will cover the latest thinking and trends LIVE from the Social Enterprise Alliance Summit in Minneapolis, Minnesota next week. If you want real-time updates, follow us on Facebook, LinkedIn, or Twitter.

Social Enterprise Four Phase Process

The Lean Start-Up, Social Sector Edition

Posted on May 8, 2013 by suzanne

The Twittersphere is abuzz about the latest article in Harvard Business Review, Why the Lean Start-Up Changes Everything, by Steve Blank. “Lean Start-up” (which was coined by Eric Ries in his book) is the alternative to writing a business plan before starting a venture. Instead, it is a hypotheses-driven approach for finding a sustainable and scalable business model. It includes three steps – developing the business model (build), eliciting customer feedback (measure), and developing the product intentionally (learn). While we love this notion, especially for social enterprises (see next week’s article on Social Enterprise 101), it is not 100% transferable to the sector without some modification. We adapted the model for the social sector with the following six steps:

Step #1: Isolate Problem(s) – Many social sector organizations start with the notion of “what if?” Passionate individuals see a need in the social sector and want to fill the void. After first identifying the problem, the next important step is to get to the root cause of the problem. Ask yourself: Why does the problem exist? Are you addressing the symptoms or the actual problem? Why isn’t anybody else addressing it? Once you have answers to these key questions, you can then develop your overall hypothesis around the social solution, also known as a theory of change.

Step #2: Form goals, target population, and outcomes – Next, it is important to fill in the details on how you will achieve your theory of change. Ask yourself: What are the goals of the program/organization? Who will you serve? How will they be served? What do you hope to achieve over time? How does it lead to impact? One of the most helpful tools to build your framework is a logic model.

Step #3: Learn about existing practices – Once you have your theory of change and logic model (as you see it), conduct secondary research on your idea to uncover what others nationally are doing. You may believe your idea is unique, but it is just as important to confirm this hypothesis. Research: What works with the target population? What research exists around your idea? Are there promising and/or best practices? What can be learned from others? Once your research is complete, consider revising your theory of change and logic model.

Step #4: Scan local environment – Now that you have a better understanding of the need and execution, conduct an environmental scan of other nonprofits, government agencies, and businesses to understand what others locally are doing, and to find possible partners and funders. Find out: Who is also working with the same target population? Are others providing a similar idea – either in execution or outcome? How are you alike or different? What funding exists to support the idea? Once your scan is complete, you’ll have a better idea of whether there is a market for your idea and if your idea is fundable. If the market isn’t promising, you might revise your idea and/or consider ways to partner with others on the unique aspects of your idea.

Step #5: Assess internal capacity – Now that you know what it takes to be successful, conduct an internal review of your capacity to execute. In your research, you have found what works, what is fundable, and how you are different, so you by now understand your unique value proposition and possible business model. Decide: Is it worth pursuing? Is it consistent with your mission? Are you the best equipped locally to pursue? How will it impact current work? Do you have the resources and/or expertise to pursue? If the idea has a market, but you are concerned about internal capacity, consider ways to partner or share your idea with others. Sometimes is it more practical and efficient to incubate an idea within an existing organization than to start an idea and an organization at the same time.

Step #6: (Re)design most impactful, complimentary program – Once you have covered all the above steps, your idea will be initially “pressure-tested.” You can then turn your idea into action by developing the most meaningful delivery of the program for your community. Then, once you start the program, it is important to support continuous improvement to redesign the program as needed.

Lean start-up was invented to help existing companies and start-ups go to market more quickly and deal with rapid change more efficiently. The social sector is feeling this pressure as well – to innovate, to create impact, and to become sustainable. We hope the sector will employ this isolate-form-learn-scan-assess-(re)design process as an enhancement to the build-measure-learn cycle and enjoy more rapid prototyping and meaningful results.

Duke – The Fuqua School of Business Alumni Q&A with Suzanne Smith

Posted on May 7, 2013 by suzanne

Reprinted from Fuqua Alumni Newsletter Alumni Q&A: Suzanne Smith, 04.15.13

April 15, 2013

Daytime MBA 2008
Founder and Managing Director, Social Impact Architects

What do you do professionally?
I’m a serial social entrepreneur who is driven to help the social sector. Our team enables organizations to leverage entrepreneurial principles and create higher impact, higher performance strategies by applying three core principles: engaging in thought leadership (@socialtrendspot; a weekly blog on my website), teaching the next generation of social entrepreneurs, and running a consulting firm (Social Impact Architects) to work alongside organizations as they effect change.

What is the most enjoyable part of your job?
Aha! moments – my parents were teachers, and I love the moment when I’ve taught someone a “way of working” that gives them that Aha! moment and their viewpoint is forever changed.

What is the biggest challenge you face?
Time management – however, I think that is an outdated way of viewing it. Instead, I challenge myself with “energy management;” in other words, how to best utilize my finite time and energy toward my social mission and still enjoy a fulfilling personal life.

What sorts of interesting places has your position taken you? Do you have a favorite?
I love traveling domestically and internationally, and I’m five states away from visiting all 50. Last year I worked in Alaska, and this year will give a speech in Montana (and plan to tour Wyoming and Idaho while I’m there). Every community embraces social entrepreneurship in principle, but engages it in different ways—my job is to connect them with something they know and to help shift their perspective and then take action.

What is the best professional advice you’ve received?
Too many examples to list! I have a mentor who has been with me since my mid-20s, and he has coached some of the top executives for Fortune 500 clients. We happened to sit next to each other on a flight, and I experienced one of the best conversations of my life. He magnanimously offered to take me on as a pro-bono client, since I worked for a nonprofit. He encouraged me to separately classify my goals as professional (you + work), personal (you + family), and private (just you). Every year I decide on 1-2 things in each category. I don’t focus first on the goals, but focus on the feelings I want to cultivate in each area and derive my goals from that feeling. We still talk regularly and, believe me, he keeps me accountable to those goals!

Aside from your current role, what is your dream job?
I’m doing it!

What do you like to do outside of work?
Anything that I haven’t done before—rafting, skydiving, or exploring a new place. Spending time with friends and my 6 (almost 7) nieces and nephews.

What is the most important thing you learned during your time at Fuqua?
On my very first day then-Daytime Dean Bill Boulding said, “There is no growth in comfort, there is no comfort in growth.” I had my own Aha! moment and now pass that quote on to my students and clients.

Who was your favorite professor?
Outside of my muses in the Social Entrepreneurship area (Greg Dees, Paul Bloom, Cathy Clark, and Matt Nash), among whom I could never choose, I loved Dan Ariely, author of Predictably Irrational and leading researcher in behavioral economics. It was his first year back at Duke, and I was just a sponge in his class. I still use his principles to stun my students and clients. I also never forgot his lesson on “Opening and Closing Doors.” He is a genius, and I am privileged to know him.

What is your favorite Fuqua memory?
Fuqua Fridays! After a tough week of bending my mind and pushing my physical limits, it was great fun to unwind with others. It was even better when followed by FuquaVision, our version of SNL.

What does Team Fuqua mean to you?
Team Fuqua = a great sense of community. Knowing that there is always someone, whether from my class year or another, who is one e-mail or phone call away—and is willing to respond within 24 hours to help me. You can’t beat that!

“In the Know” – Skoll World Forum 2013

Posted on May 1, 2013 by suzanne

Jeff Skoll, after creating eBay, started his next entrepreneurial venture – the Skoll Foundation (Skoll). Skoll was started in 1999 and became the largest and most influential foundation supporting social entrepreneurship through grants ($358 million in 13 years) and thought leadership, including the Skoll World Forum on Social Entrepreneurship. Each year, the Skoll World Forum gathers distinguished delegates, including former President Jimmy Carter, Muhammad Yunus, and Archbishop Desmond Tutu, and leading social entrepreneurs to discuss the latest trends. The Skoll World Forum has become a bellwether for social entrepreneurs and more recently the entire social sector. The most recent conference wrapped up a few weeks ago - here we cover the three most innovative, game-changing ideas:

Importance of Delivery: In honor of the Skoll World Forum, McKinsey & Company published an anthology of essays from noted authors, The Art and Science of Delivery, which discusses the importance of scaling in a sustainable manner to the populations that most need interventions. Why is this important? While most of the essays focus on international development, this concept is equally important to domestic audiences. It underpins why we named ourselves Social Impact Architects. Social design is both an art and a science. The art comes from the innovation and creativity to find new and better solutions to serve. The science comes from the execution and the ability to find business models to scale. Each essay showcases the blending of these elements and inspires all of us to achieve more for those we serve.

Girl Power: Gro Brundtland, former Prime Minister of Norway, said “experience shows that development funding that tackles the root causes of violence against women, including challenging entrenched beliefs and practices, can actually be more successful than funding institutional reform.” This reminds us, as we domestically debate “leaning in,” that many women across the world do not even have a voice. Many panelists confirmed that “girl power is one of global development’s most potent weapons against poverty.” This sentiment rings true domestically and we are excited about the future of two-generation programs.

Data + Story: In the great debate between data and storytelling, Tim Hanstad of Landesa effectively encapsulized the verdict: “for years I have carried a prejudice against the value and power of storytelling. Stories are just data with a soul…. but now I agree: stories are where numbers find meaning.” The Skoll World Forum followed suit with a great lineup of speakers showcasing both data and storytelling as important tools. We enjoyed the session by Sundance filmmakers and their strategies on how to find effective storylines. We have provided a step-by-step guide on how to create your own story in the social sector and will continue to share our experiences.

We also loved the title of this year’s conference, which marked its 10th anniversary – Disruption: Dare to Imagine/Design to Win. It is a call-to-action for the sector to not only “think big,” but also to design solutions that will create sustainable, long-term impact.

Impact Measurement Series 4 of 4: The Power of Storytelling

Posted on April 24, 2013 by suzanne

Daniel Pink’s 2005 bestseller A Whole New Mind discusses the rise of the Conceptual Age – embodied by a “high touch, high concept” approach. The times require the ability to cut through the sensory clutter and craft a satisfying narrative alongside the recent drive for data and insights. The good news is that the social sector has a wealth of stories to tell – lives changed, art created, and communities impacted. The sector creates meaning (an important attribute according to Pink) as its social currency. The bad news is that, with so few resources, the social sector considers marketing and communications a luxury. However, with the advent of social media, one story created via video on Vimeo, picture on Instagram, or presentation on Prezi can travel across the globe in an instant. You don’t need a large budget or access to the conventional media to tell your story.

Before you employ these tools, what do you say and how do you say it? To answer this question, we’ll take cues from our favorite storytelling professionals – English teachers, Madison Avenue advertising executives, and Hollywood screenwriters.

Your English teacher would say start first with an outline and then answer basic questions. For this exercise, DO NOT think about what marketing materials you already have; instead, start fresh. Here is a list of key questions:

Who are you (as an organization)?
How do you impact human life? To what end?
Why should I care?
Why should I care now?
What should I do?

The key in this exercise is to keep asking yourself the most important question – how do I impact human life? If you use qualitative data in your evaluation plan, you may find that insights from clients or patrons assist you with describing this impact. Try this exercise with someone unfamiliar with your organization, in order to get an objective viewpoint. See Exercise #1 for a helpful guide.

Next, Madison Avenue advertising executives use a pyramid with “the big idea” at the top. Think Subway and their “Fresh” campaign or Volvo and their emphasis on safety. Or, in the nonprofit sector, the American Cancer Society and their Birthday campaign. What is your big idea? Ask yourself:

How are you different?
What do you want to be known for?
What difference are you making?

The key to this exercise is to brainstorm multiple ideas in a creative setting. Just let yourself go and then edit later. It also helps to try out this exercise in a group setting and then get feedback from outsiders about which words or images stand out to them. See Exercise #2 for a helpful guide.

Finally, we are all mesmerized by the stories of Hollywood . . . but all the stories from Hollywood follow the same formula. Every commercial, every movie, every TV show follows the screenwriting rules of “how to tell a compelling story.” Think about your story and use this formula to your advantage:

Who is the hero?
Who is the antagonist?
What is the happy ending?

The key to this exercise is to follow the formula on your own terms. You do not have to use every element of the guide, but adapt the major elements of the story to shape your narrative. Feel free to borrow from others – the best stories are re-crafted from universal themes. See Exercise #3 for a helpful guide.

Once you are clear on your message and have a “hook” through your big idea, it should be easier to tell your story and find the right tool to help you tell it. Storytelling is a vital technique for the social sector to learn and then master. Your story is powerful - make the world stand up and take notice.

Click here to watch our interview on Storytelling.