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Lean Impact: How to scale social innovation for good

Closing the Gap – a series of Oxford University postgraduate student insights to the Skoll World Forum 2018

Nikhil Dugal, Skoll Scholar and 2017-18 MBA at Saïd Business School, reports on the Skoll World Forum workshop ‘Lean Impact: Scaling Innovations for Social Good’.

Ann Mei Chang is the author of the upcoming book, Lean Impact, on how modern approaches to innovation can drive massively greater social impact and scale.

She is the former Chief Innovation Officer and Executive Director of the U.S. Global Development Lab at USAID. Prior to her pivot to the public sector, Ann Mei had over twenty years of experience at leading Silicon Valley companies including Google, Apple, Intuit, and some startups.

At the Skoll World Forum, she led a workshop titled Lean Impact: Scaling Innovations for Social Good where participants were introduced to the lean methodology to help develop more scalable solutions for social innovation. Participants were asked to arrive with a social challenge or a solution where they’d like to see growth.

Session for Lean Impact - Workshop cabaret tables at the Skoll World Forum

The workshop started with her posing an intriguing question. There has been slow but steady progress in multiple focus areas in the development sector such as sanitation and health, but shouldn’t we be shooting for progress at the same rate as disruptive technologies such as mobile phones? Their adoption has skyrocketed over the past two decades unlike any other technology deployed in the social sector.

Edison once stated, ‘genius is one percent inspiration and ninety nine percent perspiration’. A lot of time when we think about innovation, we focus on the one percent inspiration, but success is about making that idea practical and applying it to achieve true impact at scale in the world.

The lean startup movement has done a good job capturing the fundamental strategies for scaling up in the startup sector but the movement mostly addresses businesses in the private sector. Lean impact aims to help fill in the gaps for applying the lean methodology in the social sector.

Ann started the session with three principles to follow in order to achieve lean impact: Think big, start small and relentlessly seek impact.

  • Think Big: Think about the problems that you want to solve, instead of thinking about problems you can currently address based on your resources. For example, Astro Teller from Google X stated that we should be clear whether our aim is to make a 10% or a 10x improvement. Sometimes 10x could actually be easier because fewer people have tried it.
  • Start small: Key to innovation is about how fast you’re able to iterate your solution. That’s why you should start small. It’s easier to test something out with 10 people rather than 1000 people.
  • Relentlessly seek impact: You need to love your problem not your solution, and relentlessly seek impact in your interventions.

Further, she stated that social innovation lies at the intersection of three pillars: growth, value and impact.

Ben diagram of Social Innovation. Value/Growth/Impact

1) Value

The value in the social sector comes from two customers, your funders and your end users.

You need to understand what your end users need, and not move forward with assumptions. Are you delivering something people want or come back for? How do you make something people desire and demand?

A prime example for testing customer value is PATH water filters. They tried two versions when they were going to market, one was the simplest and cheapest version, and one was a nicer model that cost twice as much. Three times as many people bought the nicer version because they didn’t want something that looked like a trashcan sitting in their living room! You want to create real world conditions to see how people will respond in the real world because observed data is more valuable than self reported data.

Meanwhile, funders are looking to minimize risk rather than enhancing learning. Funders need to look at starting small, taking more risk and placing lots to bets. Based on traction, funding can be scaled up over time.

2) Growth

Do you have an engine for growth that doesn’t just grow linearly but accelerates over time? Many organizations focus on scaling their work in the short term instead of the long term. In the social sector, we often see growth curves like the inverse hockey stick. An organization can scale quickly but then when they reach 100,000 or 1 million people, there are just not enough donor dollars to continue scaling up and stagnation occurs.

A typical grant program can cause organizations to scale up too fast instead of iterating, starting small and testing solutions before scaling them up. We need to also validate drivers that can accelerate growth in the long run.

3) Impact

It is also possible for an organization to scale up too fast, and focus on vanity metrics such as the number of people they reach or total funding mobilized. This leads to scale with unclear impact. Instead, innovation (outcome) metrics should be drivers for how your intervention works, such as adoption rates or percentage of users working or studying longer. How can we test early on to see if the intervention solves the problem we are addressing? There are several linkages between an intervention and the resulting impact that need to be confirmed before scaling up.

Organizations like ID insight are introducing cheaper and faster tools to evaluate impact, lightweight proxies that can tell if the intervention is working before investing in expensive evaluations like RCTs.

Decision vs. knowledge focused evaluation

Ann went on to explain that there are four proto-typical business models in the social sector:

  • Market-driven: These rely on market forces for traction, and are the easiest to scale. For example, Off-grid Solar uses a pay-as-you-go business model using mobile money over time instead of customers facing a large upfront cost.
  • Cross-subsidy model: This involves cross-subsidizing an impact generating non-profit service with a for-profit or revenue generating activity. A leading example is Arvind eye care that has each wealthy patient pay for up to 3-4 people. Facilities are different but everyone gets the same quality healthcare.
  • Replication: Microfinance was pioneered by the Grameen Bank in Bangladesh by Mohammed Yunis. This model has now been replicated and spread around the world to reach over 200 million people.
  • Government spending: This is a often the most appropriate/likely path to scale for basic services such as health and education, where the government is usually the biggest provider and potential partner.

Workshop Exercises

The session also included a workshop to help participants work on their ideas.

The first included defining a goal and a problem. To identify a goal we can start by asking, ‘How will the world be different in 10+ years if you succeed?’. A problem is what is preventing the goal from being reached today. These problems are due to some root causes. If we identify those, it can help frame the solutions to address them.

The second exercise was to generate lots of solutions to pick one for testing. Attendees were asked to be creative and think outside the box, keeping in mind that high risk leads to high reward. Participants must start with a blank slate in order to do so. Then, one idea must be selected from this list and the attendee must identify their assumptions behind it and how the solution will play out.

The third exercise was about asking who will pay for the product/service at scale and who will implement the solution at scale.

To learn more about Lean Impact and Ann’s upcoming book, visit leanstartup.co/social-good

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News that Serves

Closing the Gap – a series of Oxford University postgraduate student insights to the Skoll World Forum 2018

Kevin Warner, Skoll Scholar and 2017-18 MBA, at Saïd Business School, covers the Skoll World Forum session ‘News That Serves’.

There are many unknowns in the future of news media.

Who will do the reporting? Who is going to pay for it? How will consumers engage?

What we do know: Media reporting will be decentralized. It will be lean. And it will be interactive.

Wednesday’s Skoll World Forum panel discussion, News that Serves, painted a bleak picture in the broad landscape of international media, highlighting the Orwellian monospeak scandal of Sinclair Media, the “fake news and hate speech fuelling a genocide in Burma”, and the startling statistic that only 13% of people have unfettered access to a fair and open news. With the decline of democracy, warned moderator Pam Mitchell, “the first thing that goes is a free media”.

While decidedly grim, the visiting panel presented promising solutions for an industry that has struggled to evolve in the digital age.

Mainstream media was slow to adopt social media, but the new medium has increasingly afforded unprecedented news access to underserved peoples and given reporting opportunities to populations without the pedigree of elite western journalism schools.

Where some international news conglomerates have lost their reputation for integrity, independent media organizations have flourished through a focus on authenticity. According to Cristi Hegranes, Founder and Executive Director of Global Press Institute, the purpose of “journalism at its core, is to serve the truth”, and the diversification of global reporting is bringing authenticity back to the news.

For NPR executive editor, Edith Chapin, “public media doesn’t have enough resources to squander”. Efficiency will be achieved through better coordination of regional member stations to reduce redundancy of reporting and avoid the “six-year-olds at the soccer game” style of every reporter chasing the same story.

Laura Flanders’ experience as an independent journalist is that, “media at the margins exists today” and is uniquely situated to serve the public interest. Minority networks are working efficiently and independently through proximity to their customers. This proximity allows for news coverage that engages with community and delivers independent media that consumers trust.

While there is cause for concern in this era of fake news and the decline of mainstream investigative journalism, the panel showed an undoubted optimism for what the future holds for news media. It is clear that through innovation and evolution, news will continue to find ways to best serve the public good.

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Democracy in Crisis?

Closing the Gap – a series of Oxford University postgraduate student insights to the Skoll World Forum 2018

Aaron Bartnick, Skoll Scholar and 2017-18 MBA at Saïd Business School, reports on the Skoll World Forum session ‘Democracy in Crisis? Populism, Polarization, and Civic Engagement’.

The 2018 Skoll World Forum is a celebration of proximity. But could this proximity–proximity of people, of ideas, of cultures–actually be the root cause of so many of our problems?

That was the provocative opening to one of the Forum’s most anticipated panels: “Democracy in Crisis? Populism, Polarization, and Civic Engagement,” moderated by New America President and CEO Ann-Marie Slaughter and featuring Obama Foundation CEO David Simas, former South African Ambassador Ebrahim Rasool, and Turkish journalist Ece Temelkuran.

Despite living in the most complex era in human history, we often divide our worlds into black and white. For Forum attendees, that tends to mean that things like pluralism and proximity are good, and populism and nativism are bad. But there are more than a few shades of grey to each of these phenomena. Popular movements can both take down despots in Tunisia and install them in Hungary. And pluralism can make us both richer and more uncomfortable than ever before. “We love the mobility of capital and goods,” Rasool explains, “but we don’t know what to do with the mobility of people.”

Populists have found their answer. Shut down the borders, villianize the immigrants and elites, and make [insert country here] great again. It is a compelling story, argues Temelkuran. It has a good guy (a nostalgia-tinged version of our triumphant past), a bad guy (the elites that have always kept us down and the new people who have aligned with them), and a clear path for the good to triumph over the bad.

What is the democrats’ answer? “Populists have a compelling story,” challenges Temelkuran, “and we are trying to beat it with a PowerPoint.”

That, perhaps, is why we are asking if democracy is in crisis. It is not because democratic governments are in retreat. Forty years ago, there were nearly three times as many authoritarian regimes as democratic ones. Today, it is nearly five-to-one in favor of democracies. Democratic institutions remain intact. Representative governments and independent judiciaries are not being disbanded in waves around the globe, though they have come under alarming threat in several countries that were once considered on the road to democracy, most notably Temelkuran’s own Turkey.

But what is in crisis is the democratic story. Individuals, not institutions, make decisions. And individuals, Simas reminds us, make decisions based on stories. In the United States, voters who twice supported Barack Obama and then flipped to Donald Trump were responding to a story, Simas argues, which was built by the Obama Democrats and then adopted by the Trump populists. Both ran as outsiders seeking to subvert an unjust system and restore power to the people. Neither’s motivation was viewed as particularly partisan. And the aspirational desire for “hope and change” that defined Obama’s first presidential campaign morphed, after eight years of mixed satisfaction, into a call for confrontation in the form of “drain the swamp.”

What, then, is democracy’s new story? If it is a cost-benefit analysis clearly showing that the benefits of free trade and borders outweighs their associated pains, Rasool thinks we are sunk. “The middle ground can’t be boring,” he argues, “when we’re fighting for our survival.”

Instead, it is up to those who wring their hands at the current challenges to democracy to rise up with an affirmative case for its defense. If democracy is the ultimate expression of individual freedom, then let us say so. If pluralism makes us more competitive and successful, then let us say so. And if we genuinely believe that there is a place for everyone in this new interconnected and competitive world, then let us prove it.

Populists have their story. It is time for the would-be defenders of democracy to tell theirs.

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My Journey from Saint Louis

Kevin Duco Warner is a 2017-18 Skoll Scholar on the Oxford MBA. Focused on the social impact of food, he has worked to develop market-driven solutions to climate change through the advancement of the local food movement. Kevin shares the story of how he came to pursue a business degree.

I didn’t know that I was an entrepreneur. Heck, I couldn’t even spell the word entrepreneur consistently until about 4 months ago (it’s got that special French characteristic of having more vowels than seems reasonable). Fortunately for me, it turns out you can embody the ideals of an entrepreneur without actually realizing it.

What I have always been is curious. My thirst for knowledge has only been matched by my desire to make the world a better place. This ideal of being simultaneously thoughtful and impactful has led me down a somewhat circuitous path to Oxford, but I have found that following passion leads to unparalleled opportunities.

I have worked at my family’s food hub, Fair Shares, for the last 8 years. We contract with local farmers to source seasonal food and distribute it for 48 weeks each year to consumers in Saint Louis, Missouri. Fair Shares operates as a for-profit company utilizing the buying power of our large, local customer base as a grassroots tool for social and environmental change.

Collage of images of Kevin posing with vegetables and other foods

Before Fair Shares started, area farmers faced limited opportunities in getting their products to market, and consumers encountered multiple obstacles in accessing sustainably-grown food. The Saint Louis growing region allows for production for much of the year, but in the mid-2000s farmers’ markets ran for only 5 months per year, and offered producers meager financial rewards. Fair Shares created a model that aggregates the food from over 60 farmers into shares marketed directly to consumers. Combining the bounty of many producers allows us to offer greater diversity to our customers while supporting small farmers who have committed to low-carbon growing practices.

The beauty of working for Fair Shares is that it has given me the flexibility to follow my curiosity focused through the lens of a love for food.

About 4 years ago I started an organic corn tortilla company after teaching myself how to nixtamalize local field corn at home (I won’t get into it here, but the history of nixtamalization as the Aztec’s solution to pellagra is fascinating – worth a read on wikipedia!). I was not happy with the inconsistent results of pressing each tortilla by hand, but that was the only realistic option for a home cook. I realized that I needed a commercial grade tortilla machine if I was ever going to get consistent results. I started La Tortilla Buena because it was the only way to rationalize to my wife that importing a $2000 tortilla machine from Mexico was a good idea. Despite any real business acumen, my tortillas were quickly stocked by a number of small groceries, restaurants, and even a school lunch program. I attribute this success to the passion I had for the process of making the product.

Living in a very urban area spurred an interest in edible landscaping and urban homesteading. What started with a raspberry bush and some basic herbs progressed to harvesting homegrown saffron and espaliering two pear trees on a privacy fence. This knowledge, gained through doing, brought on opportunities to consult on urban agriculture projects and to teach cooking classes with local chefs. I even got to teach an heirloom apple grafting class with a local apple farmer.

Image of Kevin's home grown pear trees against a fence

Image of homemade food on a plate

So why uproot my life to move to Oxford? Why get an MBA?

I wanted to see my career, focused on impact through food, transition from local and regional, to national and global in scale, but I couldn’t find a clear path. I knew I needed more formal education, but struggled in finding a field that felt like the right fit.

My intention was to stay in the business world, but I was focused on policy and public administration degrees because they carried an underlying focus on social good. Most business programs lacked an ethos that resonated with me; that is, until I found the Skoll Centre at Oxford Saïd.

No other institution is driving the social impact space in a setting as powerful as Oxford. It is evident that the mission of the Skoll Centre is directly influencing Oxford Saïd’s approach to business education.

The process of being awarded the Skoll Scholarship was a whirlwind. It changed the trajectory of my life. In a matter of a few months I went from toting vegetables around an uninsulated warehouse in Saint Louis to walking the hallowed streets of Oxford in formal academic dress robes. To say that being at Oxford is a humbling experience is an understatement.

Schrödinger locked his cat in a box at his home on Northmoor Road, a 5 minute walk from my house. Tolkien wrote the Lord of the Rings in the house next door to Schrödinger. Radiohead played their first concert at the pub at the end of my street. It is absurd how many titans of western thought operated within a mile of my house in Oxford.

Kevin standing by the road sign for Northmoor Road in Oxford in full Oxford attire

My intention when I began a career in good food was never very concrete. I realize now that there was a centralized theme in the work: namely, changing the way people eat. But it required a whole lot of ‘doing’ before I could fully quantify it. It was not until I applied to Oxford that I really went through the process of self-assessment required to solidify my personal mission. I am confident that my time spent studying for an MBA as a Skoll Scholar will give me the tools to further succeed in my endeavors regardless of whether or not I can spell entrepreneur.

Follow Kevin on Twitter: @nosleepforduco

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My Journey from New Delhi to Oxford

Nikhil Dugal is a 2017-18 Skoll Scholar on the Oxford MBA. He’s a social entrepreneur working in the field of environmental sustainability, specifically towards establishing a circular economy. Here, Nikhil shares his story and inspiration up to becoming an Oxford Scholar.

Portrait of Nikhil

My journey leading up to Saïd Business School has always been guided by one principle, to put the impact of the work I’m doing first, before anything else.

My journey started in 2014 when I had been working at a development economics research center in India for about two years. As a researcher, I became increasingly frustrated from working on multi-year, multi-million dollar projects that repeatedly unpacked major social challenges, without actually pairing them to actionable policy insights that could create change. It became clear that I enjoyed a more hands-on approach, and wanted take part in changing the problems I was working on. I set out to find opportunities to use what I’d learned to become part of building solutions myself.

While in college at New York University, I had taken a class on social entrepreneurship that first introduced me to the idea of establishing a business-for-good. I was immediately intrigued by the concept of a business designed to address a social or environmental problem, versus the traditional mode of CSR, which engages in philanthropy out of a percentage of profits made from the unsustainable systems themselves. This new breed of social –business instead leverages market-forces to implement change, without the constraint of relying on funding for their entire life-cycle.

It wasn’t long after first getting excited about social enterprise that I met a friend who had been inspired by the idea of repurposing shipping containers into infrastructure – and his inspiration really got me thinking. Having worked in the development sector, I understood there was an unmet need for organizations working on rented land, running operations in remote areas. I was also interested in working in the waste management space. I proposed that we focus on his expertise in manufacturing, and use my previous experience to start a company that provides custom container infrastructure to organizations in rural and urban India.

Image of colourful containers

Containers retired from use at a yard in Uttar Pradesh

Aadhan

Over the past two years, we’ve built a company that repurposes once unusable materials into beautiful classrooms, workspaces and more, anywhere in India. We provide an end-to-end service to any organization looking to build temporary infrastructure. Our facilities help up-cycle shipping containers that are over 20 years old and retired from use.

We’ve built a list of vendors who provide construction inputs made from waste, such as wall paneling made from Tetra-pak waste cartons or sustainably sourced wood, insulation made from PET bottles, and roofing sheets made from recycled plastic and aluminum. These are offered as a package to our clients, for each of whom we design a custom facility as per their requirement. We also offer off-grid solutions including solar-panels and dry-toilets.

Interior of a shipping container - built withTetra-pak Board

The interior of this facility is made from Tetra-pak Board

At Aadhan Infrastructure, we’ve helped recycle over 25 tons of steel, and built a diverse range of infrastructure including skill training classrooms for government programs, training facilities for rural healthcare workers, and even furniture showrooms for private companies. Over 400 children from disadvantaged communities have accessed skill training in rural Uttar Pradesh due to our classroom. We’ve also won grant funding, business competitions and were featured on national television.

Nikhil and his team standing on top of a shipping container they have converted into a space

Carrying out an inspection before dispatch

Why the Oxford MBA?

Despite our small and growing success in India, I feel there is so much more I need to learn in order to grow the company’s impact across India. We have faced innumerable challenges including an inability to scale up our work with the government, an inability to raise equity funding, the lack of an established market and low trust in the new building technology. I was able to receive significant peer support from organizations such as Unltd. Delhi; however, I realized I needed to build my skillset in order to successfully be able to run the business and change our model in order to scale up the impact of our work.

Coming from a background in economics and math, I wanted to study business in a place that was focused on supporting social entrepreneurs, and actively involved in the changing narrative on the nature of business. Due to this reason, I had a very specific list of MBA programs. Each one was a one-year program, focused on entrepreneurship, with a significant focus on social enterprise. Saïd Business School was at the top of this list, especially due to the countless resources they offer to social entrepreneurs and the presence of the Skoll Centre.

I had been looking at the scholarship for over a year, and once I knew I met the criteria, I reached out to a previous scholar from India, who was incredibly kind and helpful. It immediately gave me a sense of the community here and motivated me further to apply. One year later, I’m sitting in Oxford, and have been blessed to receive a Skoll Scholarship.

This opportunity has enabled me to pursue my goals and continue to engage in my mission. There are truly few organizations in the world that provide such significant support to social entrepreneurs, with only the intention of encouraging them to lead an impactful career. There is no chance that I would have had access to such a great program without the help of the Scholarship and I look forward to using every opportunity I get over the next year to learn as much as possible.

Over the next year I plan to use all the resources we are offered here, including programs such as Map the System, Skoll Academy and Skoll Venture Awards to refine the mission of my organization and explore levers for change to help us scale our impact. I’ve had the opportunity to attend a few sessions at the Skoll Academy already, and am extremely impressed with the program the Centre has been able to put together as an alternative to the Consulting Development Program and the Finance Lab offered to the rest of the MBA class.

I’ve also had the amazing opportunity to meet my peers, each of whom is as accomplished as the next. They are the greatest resource we have here, and they come from all over the globe, with about a third from the development sector. Although they’re from a diverse background, what they have in common is a sense of collaboration and community, and I feel certain I’ll learn more from them than I can begin to describe here and now.

 

 

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From Lisbon to Oxford

Sandra Fisher-Martins is a 2017-18 Skoll Scholar on the Oxford MBA. She is also a plain-language activist and entrepreneur. Sandra shares the candid truth about leaving her 10 year old organisation to pursue an Oxford MBA.

“Can you read this letter for me?”, asked Mr. Domingos, the office center caretaker.

We stood by his desk and he watched while I sifted through it. I explained that the letter was in fact a surgery voucher from the Ministry of Health paying for a surgery in a private hospital of his choice. His smile was a mix of relief and disbelief.

“I had thrown it in the bin. Then I remembered you telling me about your job the other day…”

Mr. Domingos had his first job at the age of five and taught himself to read as an adult. He enjoyed the sports newspaper, but struggled with official letters, forms and pretty much everything else. His life story was unique, but his experience of depending on others to access crucial information was not uncommon. Nearly 4 in 5 Portuguese are ‘functionally illiterate’, which means that their reading skills are insufficient to meet the demands of daily life.

I founded Português Claro (‘Plain Portuguese’) in 2007 because I was appalled by the gap between the average literacy skills of our citizens and the complexity of the documents we had to read to get on with our lives. From electricity bills to insurance contracts, from bank statements to government websites, everything was riddled with jargon and legalese. How could anyone make informed choices? How could anyone know and act on their rights?

Sandra and the Claro team at work

Sandra and the Claro team at work

Sandra delivered a talk at Productized 2016

Sandra delivered a talk at Productized 2016

The low literacy problem is an important and complex battle to wage, requiring massive investments in education. I was too frustrated to wait. Seeing an opportunity to meet the needs of today’s Portuguese adults, I set out to persuade businesses and government agencies to simplify the way they communicated with the public.

Having little business experience, during my first years at Claro I used to dispel the flashes of self-doubt with fantasies of getting the Skoll Scholarship and picking up, in one swift year, everything I would need to run a successful social venture.

I never applied. I was too busy running the business and learning by trial-and-error to be a plain-language expert, a salesperson, an accountant, a project manager, a recruiter, a team leader, and a CEO. Stopping for a year was impossible.

And then, after nearly a decade of challenges and growth, Claro hit a sudden wall. A change in government had led to a sharp decline in private and public investment and our sales were plummeting. Faced with the possibility of having to close the company, I started questioning the sustainability of the change we had created over time. Without Claro to provide plain-language services, would these organizations revert back to their old ways?

As my doubts grew, it became clear that I’d allowed myself to be sucked into the day-to-day of running a social enterprise when the real challenge was in creating sustainable systemic change. It was time to stop and have a rethink.

I went back to the Skoll Scholarship and the Centre had added more programming focused on system change. So I decided to apply. This time I wasn’t looking for tools to run a business. I was looking for a space for reflection within a world-class network of systems thinkers, social entrepreneurs and researchers.

It is now Week 4 in Michaelmas (in plain language, that’s the beginning of November) and although the MBA has barely started so much has happened. This is a high-frequency learning environment, with daily opportunities to engage in mind-expanding conversations. Today I met with Patrick to learn about his experience running an impact investment fund in Peru. Last night I explored with Emily the systemic consequences of an ill-conceived agricultural investment in Ghana. Through this exposure to diverse experiences and approaches, my initial questions have evolved and unexpected themes — like ‘identity’ — have surfaced. Clearly, this journey has just begun.  I am eager to see where it takes me.