Changemaker supporting documents reading material

Everyone a Changemaker Social Entrepreneurship’s Ultimate Goal

by Bill Drayton

As published in the Winter 2006 edition of

The MIT Press

Ashoka is a global association of the world’s leading social entrepreneurs. It helps them both get started and succeed over their long lifetimes causing large scale, very much needed pattern change. They address every area of human need – from human rights to the environment, from full economic citizenship to empowering young people. Small investments produce huge results. Five years after their startup launch, between 49 and 60 percent have already changed national policy and around 90 percent have seen independent institutions copy their innovation.

Working with these social entrepreneurs, Ashoka builds communities of innovators who work collectively to transform society, and to design new ways for the social sector to become more productive, entrepreneurial and globally integrated. There are now over 1,750 Ashoka leading social entrepreneurs, and Ashoka serves over 60 countries.

2006 is Ashoka’s 25th anniversary year!

The MIT Press Reprinted with the permission of Innovations journal. To find out more, please visit www.mitpress.mit.edu/innovations.

Bill Drayton

Everyone a Changemaker Social Entrepreneurship’s Ultimate Goal

Rodrigo Baggio grew up in Rio de Janeiro loving computers. As he matured into an extraordinarily tall, thin man with a hugely wide smile, he became a computer consultant. However, from early on, he was one of the few in his generation who noticed—with concern—that the young people growing up in the favelas on the hills overlooking his middle-class neighborhood had no access to this digital world.

Because he has the great entrepreneur’s tenacity of observation and thought as well as action, he decided he had to take on the digital divide—well before the phrase came into currency—and he has been pursuing this vision relentlessly ever since. While beginning to work toward this dream as a teenager, he learned just how motivated and capable of learning the young people in the favelas were. And also how competent the favela community was in organizing. This respect underlies the central insight that has allowed Rodrigo to have a growing multi-continental impact.

Rodrigo provides only what the community cannot: typically computers, software, and training. The community does the organizing, finding space, recruiting the students and faculty, and providing ongoing administration. The result is a uniquely economical model, and also one where, because the investment strengthens the broader community, it is selfsustaining and a foundation for other initiatives long into the future.

Rodrigo’s chain of hundreds of community-based computer training schools now serves hundreds of slums across Latin America and Asia. These schools now have 700,000 graduates.

I got a sense of Rodrigo’s power when he came to Washington shortly after being elected an Ashoka Fellow. Somehow he convinced the Inter-American Development Bank to give him its used (but highly valuable) computers.

Somehow he convinced the Brazilian Air Force first to warehouse and then to fly these computers home. And then he somehow managed to persuade the Brazilian customs authority to allow all these computers in at a time when Brazil was trying to block computer imports.

Rodrigo Baggio’s students in a Brazilian favella.

Several years later, I got a further sense of how his mind worked, when I asked him why he was starting his work in Asia in Japan. Japan, he said, was the only large Asian source of computers where he could imagine getting people to give them to him. Therefore, as his first step, he had to demonstrate the value of his program to the Japanese in several of their own slums.

That is how entrepreneurs work. Having decided that the world must change in some important way, they simply find and build highways that lead inexorably to that result. Where others see barriers, they delight in finding solutions and in turning them into society’s new and concrete patterns.

That much is easy to observe. However, there is more to it. Somehow, an unknown, young, lanky Rodrigo, the head of a new and unknown citizen organization, persuaded the managers of one after another of society’s big institutions to do things they never would have imagined. He knew they were the right and logical things to do. Somehow they sensed that inner confidence and found it surprisingly persuasive.

What were they sensing? Rodrigo’s words and arguments no doubt helped, but few people are willing to step out beyond the safely conventional merely on the basis of good arguments.

Rodrigo was persuasive because his listeners sensed something deeper.

What Rodrigo was proposing was not just an idea, but the central logic of his life—as it is for every great entrepreneur. He mastered and came to love the new digital world from the time he was a young boy. More important, his values from early on drove him to care about the poverty and inequality he could see on the hillsides rising behind the middle-class Rio in which he was growing up. His values and his temperament had him taking on the digital divide before the term was invented.

As a result, when Rodrigo sat across the table from the much older, powerful officials he needed to move, they were confronting not just a good idea, but deeply rooted and life-defining values: non-egoistic, kindly determination and commitment.

This values-based faith is the ultimate power of the first-class entrepreneur. It is a quality others sense and trust, whether or not they really fully grasp the idea intellectually. Even though they would not normally want to step out in front of the crowd, a quiet voice tells them to trust Rodrigo and go with his vision. innovations / winter 2006 © 2006 Tagore LLC

Bill Drayton

Any assessment of Rodrigo’s impact that stopped with his idea, let alone his business plan, would not have penetrated to the core of his power. Our field has been impoverished by too many assessments that never get to the essence.

Nor is Rodrigo’s most important impact his schools or the life-changing independence and mastery he provides his students. Consider the impact Rodrigo has on a community when he introduces his program. It is not a school created by the government or outsiders. It is a school created by, funded by, managed by, and staffed by people in the community.

The students are responsible for learning and then making their way. Think how many patterns and stereotypes are crumpled by these simple and very obvious facts. The psychological impact is a bit like India emerging from 50 years of falling behind to suddenly being recognized as the new challenger at the cutting edge of the most advanced part of the world’s economy.

Accompanying this disruption of old patterns of action and perception is another contribution, and I believe it is the greatest one of Rodrigo and every entrepreneur: the idea of catalyzing new local changemakers into being. Unless the entrepreneur can get someone in one community after another to step forward and seize his or her idea, the entrepreneur will never achieve the spread that is essential to his or her life success.

Consequently, the entrepreneur presents his or her idea to the local community Ten years ago, the probability in the most enticing, safe, understandable, and user-friendly ways possible.

Of course, the entrepreneur’s own life story is in itself a beacon encouraging of an idea from Bangladesh hundreds of others to care and to take initiative. This also increases the number affecting a community in of local changemakers.

Brazil, Poland, or the U.S. was Moreover, when these local champions then build the teams they need to very limited. Now it is common launch the idea they have adopted, they are providing not only encouragement but also training to potential next-generation local changemakers. (the best-known example As the field of social entrepreneurship has grown and multiplied and wired being Muhammad Yunus’s itself together across the globe over the last 25 years, the rate of this plowing impact on the global spread and seeding at the local level has accelerated dramatically. Ten years ago, the of microcredit) and becoming probability of an idea from Bangladesh affecting a community in Brazil, Poland, or the U.S. was very limited. Now it is common (the best-known example being more common every year.

Muhammad Yunus’s impact on the global spread of microcredit) and becoming more common every year.

As the number of leading pattern-changing social entrepreneurs has been increasing everywhere, and as the geographic reach of their ideas has been expanding ever more rapidly, the rate of plowing and seeding therefore has multiplied. As have the number of local changemakers.

This whole process is enormously contagious. As the number of large-scale entrepreneurs and local changemakers multiplies, so does the number of support institutions, all of these make the next generation of entrepreneuring and changemaking easier. Not only do people not resist, but in fact, they respond readily to this change. Who wants to be an object when they could be changemakers, when they could live lives far more creative and contributory and therefore respected and valued?

As important as Rodrigo’s impact is on the digital divide and on the lives and communities he serves, I believe this second dimension of his impact is far more important—especially at this transitional moment in history.

The most important contribution any of us can make now is not to solve any particular problem, no matter how urgent energy or environment or financial regulation is. What we must do now is increase the proportion of humans who know that they can cause change. And who, like smart white blood cells coursing through society, will stop with pleasure whenever they see that something is stuck or that an opportunity is ripe to be seized. Multiplying society’s capacity to adapt and change intelligently and constructively and building the necessary underlying collaborative architecture, is the world’s most critical opportunity now. Pattern-changing leading social entrepreneurs are the most critical single factor in catalyzing and engineering this transformation.1

EVERYONE A CHANGEMAKER The agricultural revolution produced only a small surplus, so only a small elite could move into the towns to create culture and conscious history. This pattern has persisted ever since: only a few have held the monopoly on initiative because they alone have had the social tools. innovations / winter 2006

Everyone a Changemaker

That is one reason that per capita income in the West remained flat from the fall of the Roman Empire until about 1700.

By 1700, however, a new, more open architecture was beginning to develop in northern Europe: entrepreneurial/ competitive business facilitated by more tolerant, open politics. The new business model rewarded people who would step up with better ideas and implement them, igniting a relentlessly expanding cycle of entrepreneurial innovation leading to productivity gains, leading to ever more entrepreneurs, successful innovation, and productivity gains.

One result: the West broke out from 1,200 years of stagnation and soon soared past anything the world had seen before.

Average per capita income rose 20 percent in the 1700s, 200 percent in the 1800s, and 740 percent in the last century.2 The press reported the wars and other follies, but for the last 300 years this profound innovation in how humans organize themselves has been the defining, decisive historical force at work.

However, until 1980, this transformation bypassed the social half of the world’s operations.3 Society taxed the new wealth created by business to pay for its roads and canals, schools and welfare systems. There was no need to change. Moreover, no monopoly, public or private, welcomes competition because it is very likely to lose. Thus, the social sector had little felt need to change and a paymaster that actively discouraged it.

Hence, the squalor of the social sector. Relative performance declining at [S]ociety cannot an accelerating rate. And consequent low repute, dismal pay, and poor self-esteem significantly increase and élan. the proportion of adults By the nineteenth century, a few modern social entrepreneurs began to appear. who are, and know they The anti-slavery leagues and Florence Nightingale are outstanding examples. But are, changemakers and they remained islands.

It was only around 1980 that the ice began to crack and the social arena as a whole who have mastered the made the structural leap to this new entrepreneurial competitive architecture.4 necessary and complex However, once the ice broke, catch-up change came in a rush. And it did so underlying social skills pretty much all across the world, the chief exceptions being areas where governments until it changes the way all were afraid.

Because it has the advantage of not having to be the pioneer, but rather of young people live. following business, this second great transformation has been able steadily to compound productivity growth at a very fast rate. In this it resembles successful developing countries like Thailand.

Ashoka’s best estimate is that the citizen sector is halving the gap between its productivity level and that of business every 10 to 12 years.

This rapidly rising productivity means that the cost of the goods and services produced by the citizen sector is falling relative to those produced by business—reversing the pricing pattern of the last centuries that led to the much-criticized “consumer” culture.

As a result, as resources flow into the citizen sector, it is growing explosively. It is generating jobs two and a half to three times as fast as business. There are now millions of modern, competing citizen groups, including big, sophisticated second-generation organizations, in each of the four main areas where the field has emerged most vigorously: Brazil-focused South America, Mexico/U.S./Canada, Europe, and South and Southeast Asia. (The field is also growing vigorously in Africa, the Middle East, East Asia, and Australia/New Zealand, but these are much smaller clusters.) All this, of course, has dramatically altered the field’s élan and attractiveness. This is where the job growth is, not to mention the most challenging, value-rooted, and increasingly even well-paid jobs. Just listen to today’s “business” school students.

Given the results-based power of this transformation of the citizen sector, more and more local changemakers are emerging. Some of these learn and later expand the pool of leading social entrepreneurs. To the degree they succeed locally, they give wings to the entrepreneur whose idea they have taken up, they encourage neighbors also to become changemakers, and they cumulatively build the institutions and attitudes that make local changemaking progressively easier and more respected. All of which eases the tasks facing the next generation of primary pattern-change entrepreneurs.

This virtuous cycle catalyzed by leading social entrepreneurs and local changemakers is the chief engine now moving the world toward an “everyone a changemaker” future.

No matter how powerful this dynamic is, however, several other changes are necessary if society is to navigate this transition successfully: innovations / winter 2006

Bill Drayton

l Most important, society cannot significantly increase the proportion of adults who are, and know they are, changemakers and who have mastered the necessary and complex underlying social skills until it changes the way all young people live. l Although it is normal for support areas like finance to lag behind change in the operating areas they serve, the emergent citizen sector is now at significant risk unless it can quickly engineer major structural changes in both its institutional finance sector and the broad grassroots sources of support in its post-breakeven zone.

TRANSFORMING THE YOUTH YEARS There are well over 400 Ashoka leading social entrepreneurs whose primary goal is getting society to do a far better job of helping all children and young people to learn and grow up successfully. Each has a powerful, proven, society-wide approach. (Between 49 percent and 60 percent of those elected by Ashoka have changed national policy within five years of their startup-stage election.)

However, each of these approaches is a partial answer. It is built around one insight or principle, works through one delivery system, and addresses one or two client groups. Ashoka’s “mosaic” process brings all these powerful elements together, draws out the few universal principles that open major new strategic opportunities for the key decision makers in a field (e.g., in this case, those who run schools and youth programs), and then markets these principles. In effect, these mosaic collaborations promise our community the ability to entrepreneur together, an advance that produces far bigger impact than anything the sum of our solo ventures could achieve.

Roughly two-thirds of these 400-plus youth-focused Ashoka entrepreneurs have learned the same three powerful principles. Because they need human resources to implement their vision and cannot realistically get more teachers, they turn to young people. That young people are a huge, and in fact usually the only significant available human resource is the first insight. The other two follow logically: first, the unconventional assumption that young people are or can be competent; and second, the idea that one must transform youth communities Youth Venturer Jason Upshaw trains neighborhood young people in bike repair leading (e.g., in schools) so that they become competent at initiating and organizing, and then train and reward their young people in these skills. Applying these three to bikes and jobs. principles in hundreds of different ways and across the globe produces strikingly similar and powerful results: motivated students, better academic results, and young people who are experiencing being in charge. And a very different feel to those schools and programs from the moment one walks in.

Whether these social entrepreneurs discovered and developed these principles to solve their staffing problems and/or with broader educational purpose, collectively they have created a most powerful set of tools to transform the youth years.

Moreover, the repeated success they have had in large-scale and highly diverse applications of these principles leaves one with enormous confidence in the power and practicability of these principles.

Ashoka’s young people’s mosaic also identified another principle that fits closely with this first cluster: anyone (or any group) who does not master the complex social skill of guiding his or her behavior through applied empathy will be marginalized. Since this is the enormously cruel, destructive state of perhaps 30 percent of the world’s people, helping young people master empathy is proportionately important.5 One of the best ways of doing so is by encouraging them to build teams to contribute important changes and/or services. If their team is to succeed, they must master teamwork, which in turn rests on applied empathy.

Ashoka began developing its mosaic process and the pioneer young people’s application in 1990. It was, however, only quite recently that Ashoka realized that its ultimate purpose, an “everyone a changemaker” world, is an unreachable fantasy unless the youth years become years of practicing being powerful and acquiring the required underlying skills: applied empathy, teamwork, and leadership. This realization suddenly puts the mosaic’s core principles in a new light: They are as powerful as they are in large part because they are so key to unlocking this historical transition.

If young people do not grow up being powerful, causing change, and practicing these three interlocked underlying skills, they will reach adulthood with a self-definition that does not include changemaking and a social skill set that largely precludes it. Just as one must develop strong emotional foundations in the first three years of life or suffer for a lifetime, young people must master and practice these social skills and the high art of being powerful in and through society while they are young. innovations / winter 2006

Everyone a Changemaker

Consider how sophisticated the learned skill of applied empathy is: As we contemplate each action, we must comprehend how it will impact everyone at several removes around us and long into the future—and then guide our behavior accordingly. Our world now requires that skill as the ticket of admission to most simple levels of society. A dependably good person can no longer rely only on rules because they are increasingly in conflict, changing, or have yet to be developed.

Those without this complex skill will be marginalized. Moreover, mastering it is only the first step toward learning teamwork and leadership. Like ballet, these skills require extensive and real practice.

The children of elite families grow up at home and usually in school being expected to take initiative and being rewarded for doing so. This confident ability to master new situations and initiate whatever changes or actions are needed is in essence what defines the elite. Entering adult life with confidence and mastery of empathy/teamwork/ leadership skills is what ultimately has given this small group control of the initiative and therefore of power and resources for millennia.

However, the other 97 percent grow up getting very little such experience with taking initiative. Adults control the classroom, work setting, and even sports and extra-curricular activities. And this situation, coupled with society’s attitudes, drums home the message to this majority: “You’re not competent or perhaps even responsible. Please don’t try to start things; we can do it far better.” Teachers, social workers and others are comfortably in control; and, in fact, most school and other youth cultures are not competent and do not train and support and respect initiative-taking. Instead, the peer group culture, not surprisingly, is resentful and in the worst cultures, quite negative.

Do these inarticulate, frustrated youth cultures bring analogous prior situations to mind? Over the last century, many other groups—including women, African Americans, those with disabilities, even colonial peoples—had to make their way from debilitating stereotypes and little prior practice in taking the initiative to becoming fully accepted, capable contributors. These groups, although very different from one another, had to travel strongly similar human and community transformation paths.

Young people are the last big group to set out on this journey. They are also different; but, in the underlying psychological and organizational transitions ahead, they can learn a great deal from the experience of these other groups.

Building on the history of these earlier movements and also on the accumulated experience of hundreds of leading social entrepreneurs working with young people, Ashoka and many partners6 have prototyped and are beginning to launch at scale the equivalent of a women’s or older person’s movement for young people.

Although this movement must ultimately change how everyone thinks about and relates to young people, it is young people and their peer communities who will have to change most and who have the most to gain. Therefore, as with all the earlier similar transformations, it is essential that they be central actors—both in actually shifting to the new pattern (because the best learning comes from action) and in championing the change (because people in any class are most likely to hear and trust peers).

This emergent movement will be far bigger than Ashoka, and once it is past the next six to ten intensely entrepreneurial years, it will require extensive operating management that is culturally inappropriate for Ashoka’s “collegial/intrapreneurial” essence. Ashoka has therefore created an independent but close partner, Youth Venture. Working closely with Ashoka’s young people “mosaic” team, it has the lead in major spread and emerging operating work.

How to launch and build such a movement?

Ashoka, Youth Venture, and their partners are following a strategy that exercises enormously powerful jujitsu-like leverage; leverage that works on four mutually reinforcing levels. They are summarized in Table 1.

innovations / winter 2006

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Table 1. The Movement’s Jujitsu: Four Levels of Leverage Actions In any school, community, or country each year, ½ of 1 percent of the young people have a dream and create a lasting venture.

Impacts By leading, these young Venturers become lifelong leaders. They have mastered the essential skills of empathy, teamwork and leadership-and irrefutably know it.

Each venture engages a team (typically 3-5 in the core group Everyone learns what teamwork, that they can lead, and how to do plus 20 who tutor, coach, broadcast, etc.)7 so. This further multiplies the next generation’s proportion of “natural” leaders.

1% of a school or youth community launches Ventures with on average 25 participants. Over two years: 20% to 25% of the whole institution are Engaged, likely “tipping” its youth culture.

As Venturer peer groups recruit and sell their work, they can both tip their school or neighborhood youth culture and also will wear down old attitudes and logistic barriers (e.g., space, insurance).

Society questions the current disempowering pattern, builds a women’s/disability movement for young people.

YouthVenture participants provide role models and champions. The press joins in.

Everyone redefines the youth years and lives them as a time of expected initiative,competency, and contribution.

Each of these four levels in Table 1 needs the others. But they will not snap into place together or everywhere in society instantly. This makes the job facing the pioneers much harder than it will be for their successors; and it requires a phased, several-stage strategy.

The central challenge is getting to the scale where the synergies between these four levels—and across schools, neighborhoods, and regions—kick in and become irreversibly self-multiplying. Ashoka/Youth Venture, recognizing this is the heart of the matter, has been experimenting with a dozen different avenues and is gaining increasing traction. Here are some examples: l Partnering with national organizations with many chapters (e.g., the Girl Scouts) or broad reach (e.g., Youth Services America). l Co-venturing with public-spirited corporate partners, including experimenting with engaging staff, local units, and key customers as nominators, Youth Venturer Allies, and local organizers. (Most recently with Staples in Europe and Latin America). l Communicating the stories of Youth Venturers broadly and encouraging others through media partners (including a growing relationship with MTV in the U.S. and Mexico). l Using Internet avenues to recruit, help, and network Venturers, Allies, and local Partners. l Extending Youth Venture’s online “Virtual Venturer” program, which allows young people to become Venturers even in communities without an established organizational presence. l Replicating the successful United Way model developed in North Central Massachusetts.

After two years, almost all the schools have multiple Youth Venture teams; the area’s community college gives college credit for high school Venture work; and virtually all young people in the area experience multiple Venture models. Four other local United Ways are moving to follow, hopefully followed by many others and also community foundations. l Partnering with a subject matter segment of the citizen sector (e.g., the environment) to support Youth Venture teams in its field as a means of seeding future leadership. l Building a network of stand-alone, volunteer-led local Youth Venture organizations akin to the vast majority of Scout, 4-H, and Little League groups (experiments underway in four metropolitan areas). l Breaking through with groups of schools, e.g., those served by an Ashoka Fellow or where we can get support from the leaders of a school system. This is more school system leveraged than working school by school although we welcome individual schools as long as the leadership comes from them. l Building links to youth communities (e.g., punk rock bands, debate groups) built around a common interest and that cut across institutions and geography. l Getting to scale locally: Using all avenues in a few medium-sized metropolitan areas or small provinces or states (e.g., New Hampshire). innovations / winter 2006

Everyone a Changemaker

Although the movement is far up the learning curve, all that means is that the pace of experimenting/learning is accelerating and broadening. It needs many more partners who are excited by this movement-building challenge of accelerating to scale, and who will join in experimenting, adapting, and pushing.

And it needs to communicate its alternative vision for the youth years and ultimately for a rapidly multiplying proportion of the population who have the power to change things.

As the number of young leaders increases and spreads, this job becomes easier and easier, not least because such Venturers usually gain confidence once they see that, in addition to being the founders of a newspaper or a program to help new immigrant youth or a peer-to-peer counseling service, etc., they are pioneers in an historic moment.

NEEDED: NEW SOCIAL FINANCIAL SERVICES Citizen organizations of all types and sizes urgently need a new social financial services system.

Where can two 15-year-old African American girls go when they need $900 seed funding to launch a teen-to-teen late-afternoon confidential telephone hotline? Or a 14-year-old who needs $800 startup and working capital to buy T-shirts to imprint and sell in order to fund an Ecuadorian support group of young people with diabetes? Or a group of boys who need funds to seed what eventually will became a successful effort to build a municipal skateboard park?8 They cannot go to a foundation or a government agency. They typically cannot even open their own bank account.

What if their parents cannot or will not pay? Or if it is important to the young people to do it on their own (so they can do it their way)?

As we have just seen, society’s core interests are in making it easy, not impossible, for young people to take initiative and build ongoing services. But our existing financial services institutions fail us.

This is only one of many such failures of today’s social financial institutions.

Going to the other end of the sophistication scale, consider how the structure of government grant agencies and foundations makes it extremely difficult for either institution to serve leading social entrepreneurs. The people try hard, but the structural barriers are formidable and firmly set. Again, given how central social entrepreneurs are to what is society’s greatest historical opportunity now, this failure is extremely costly.

What leading social entrepreneurs need and what today’s dominant social financial institutions—governments and foundations—can provide conflict point by point: Social entrepreneurs need social investors who will value new ideas. The most important innovations cut across the disciplinary and organizational boundaries created to solve old problems. Governments are bound by narrow, rigidly and impermeably bounded “stovepipes” defined by legislation and refined ever more narrowly by the organizations and regulations that follow. Foundations are captive to internally formulated “strategies,” their institutional stovepipes, and staffs who typically follow specialist lateral career paths. Moreover, a program officer confronting a crosscutting idea will have to learn more, think harder, and consult and share decision-making much more than when facing a familiar idea that neatly fits his or her program. (Can you imagine what would have happened to the digital revolution if its entrepreneurs had to fit similar strategy/stovepipe straightjackets created by Deutsche Bank or Bank of America?)

Social entrepreneurs need and deserve loyalty. Their work is not a job; it is their life. And they are, day by day and year after year, central to the iterative process of creation that is the essence of the value being built. But making and sustaining the commitments that would constitute loyal partnering requires judgment, very-long-term perspective, and true understanding of entrepreneurship—all of which are difficult for large institutions to muster.

Social entrepreneurs need medium- to long-term and often substantial investments. They must test and refine an idea (an inherently unpredictable process), learn how to market it and cause many other institutions to change (also resistant to tight scheduling), and then build an institution and movement. Almost all governments and foundations, guided by their own internal one-year budgeting imperatives, provide one-year funding.

Social entrepreneurs need support in building strong, major institutions; governments and foundations avoid the “overhead” this would entail.

To some degree, it is natural for change in financial and other support services to lag behind a transformation of the operating institutions. There is, however, considerable risk that these financial institutions will not adapt adequately or at all.

Unlike business financial firms, neither governments nor foundations must respond to their clients.

Governments are sensitive to political stimuli, but these synapses often do not come from the clients being innovations / winter 2006

Bill Drayton

served. Development agencies are an extreme case: Their end clients have no leverage; it is the contractors who do. In this case, the resulting misalignment of incentives may be worse than in the typical foundation case, where clients are as a rule no more than supplicants.

There are further systemic reasons why governments and foundations fail the citizen sector. Their structure keeps them from seeing and often from serving whole classes of potential clients well. Moreover, because they are not subject to competitive discipline, they do a poor job of rewarding high performing citizen groups and closing or merging poorly run ones. Society’s resources are, consequently, allocated poorly. Worse, the citizen sector cannot become as productive as business as long as this undisciplined condition continues.

A notorious example is the dramatic variation in performance between the numerous microcredit institutions in the Chicago area. Some have almost perfect payback rates and low general administration and sales ratios. Others perform dismally. So far, the institutions investing in these funds barely seem to notice.

However, commercial competitive microcredit investment funds could not afford such inattention. A fund that invested in any of the losers would end up with a lower return for its investors and only one or two stars (out of five) on the Morningstar mutual fund rating service.

If the incumbent institutions seem unlikely to transform themselves to provide the types of services a rapidly evolving and increasingly diverse citizen sector now needs so urgently, where can the sector look? To the enormous, highly competitive, client-focused for-profit financial industry. It provides business a kaleidoscopic diversity of services that are minutely fitted to client needs and that change, if anything, faster than the clients.

The first for-profit financial firms that recognize that there is a huge, highly attractive new business waiting to be born here and that open it up will profit handsomely—and make a profound contribution.

There are many factors coming together now that make such a move timely.

[S]ociety’s core interests are in The citizen sector is now both very large and the fastest growing sector of society. It making it easy, not impossible, also has many large, solid institutions.

At the same time, there is huge existing, and more latent, demand for for young people to take quality social investments, with varying mixes of social and economic return and initiative and build ongoing in different subject matter and geographic areas. There also is huge actual and services. But our existing latent demand for engagement in the social sector. People want access to quality personal opportunities ranging from volunteering and internships to full careers financial services institutions for themselves and their families and friends. They also want to spot and land fail us. the new business/social opportunities that are now developing. A smart bank will develop a web of products and services that will allow its bankers to serve every investor client’s individual needs with a tailored package of varying mixes of financial, social, and engagement values.

Along with my colleagues in Ashoka’s Business Entry program, I have identified roughly 40 building-block financial and service products that, when combined orchestra-like in varying combinations and with varying pricing, can offer banks and other financial institutions a very large, profitable new business. This business will enable these institutions to bring huge value to a very wide range of clients—from teen beneficiaries of a skipping trust9 to a high active net worth entrepreneur ready to sell his/her business and redeploy both resources and career.10 The strategy here is to demonstrate just how profitable and attractive this business is to new clients. The immediate work is to develop and refine the building block products in the crucible of the full product-development process and, most critical, to direct client feedback.

This is not about a new product. Or even a number of new products. It is about building a major new business that will link varying types and classes of investors with diverse investee needs through equally diverse (and varying over time) channels. At one time the banks did not invest in art or even real estate. Now those areas are integral, and clients expect them.

The transaction costs of government and foundation grant-making, taking into account only the direct (not opportunity) costs to donor and donee, now run 20 to 45 percent, roughly 10 times what is normal for business finance.11 This difference offers huge scope for financial firms to find efficiencies and capture some of the savings through fees.

Although some components of this new business’s product orchestra will be labor intensive and custom-tailored, it is critical to have a large number of high-volume component products. Large volumes are necessary to drive down per-transaction costs, which is essential for modest or merely wealthy investors and competitively key even for the sophisticated very wealthy.

The now-huge socially responsible investment industry achieved this scale chiefly by investing in subsets of existing financial stocks and bonds that exclude objectionable (e.g., tobacco, arms) securities. The new commercial microcredit innovations / winter 2006

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funds that have been introduced over the last few years are the first major example of the next step: the for-profit finance industry profitably providing direct investments in citizen-sector work to the broad public. They are able to do so because there are 120 to 150 large, safe, well-established microcredit lenders, with clear, stable track records, in whose securities these funds can invest large sums safely without incurring significant expense (relative to investment) in case-by-case due diligence reviews.

Although this success is enormously encouraging, it is far, far from enough. It illustrates the principle, but it cannot provide either the volume or the choice the huge latent demand needs, let alone what is required to build a substantial business for the industry overall.

Therefore, a critical part of the Ashoka strategy to encourage for-profit finance firms to enter the social financial services business is to catalyze the development of many, very large, reasonably uniform and safe, and therefore securitizable, new classes of social investment. The single most important source of these new investment opportunities flows from our gracefully named business/social “hybrid value-added chain” (HVAC) work. This work originated in another major “mosaic” collaboration, this one across roughly 400 Ashoka social entrepreneurs whose work is focused on ensuring full economic citizenship to everyone. A good many of these working toward this goal have found powerful leverage in reconnecting business with the newly entrepreneurial/competitive citizen sector through new value added chains involved in design, production, distribution, servicing, and parallel supports including finance. The new, more productive value added chains draw The transaction costs of for each step in the chain whatever each side can contribute most effectively and government and foundation efficiently. However, this work has typically been limited to one product or service in one country; and these early cases were held back by the relative immaturity of grant-making, taking into the citizen sector organizations at the time. account only the direct Ashoka’s HVAC strategy is to get four very different products/services (not opportunity) costs to quickly to the point where the customers, businesses, and citizen groups are donor and donee, now run all benefiting enormously from the new cooperative value-added chains. Once the businesses in an industry see one of their competitors gaining important 20 to 45 percent, roughly new markets and making significantly higher profits, they cannot afford not to ten times what is normal follow. The same is true for the organizations that compete with the pioneer for business finance.11 This HVAC citizen groups, once they see how much their competitors are benefiting from large, stable, nonpolitical, new revenues and their new, unique ability to difference offers huge scope provide valued new services to their clients. This competitive dynamic is key for financial firms to find to the jujitsu that allows Ashoka, a small force, to set in motion so large and efficiencies and capture some irreversible an historical change. of the savings through fees.

Setting this same, huge structural change in motion in four very different industries will make it clear that something far bigger than an industry-specific innovation is at work. The HVAC principle will apply to most, probably all, areas of human endeavor. Once this framework becomes clear and is widely grasped, everyone can begin looking for possible applications to their areas of work.

A key example: many a smart management consultant will make partner by building his/her firm’s HVAC practice. They will seek out such high-yield opportunities, bring them to potential clients, and then do the required design and institutional adaptation work. Because they will do this work regularly, they will be able to build practices serving managers who do not have this experience. This response is key because it will institutionalize the catalytic work Ashoka now has taken on.

Business schools and business writers will also be key players in helping spread awareness of the HVAC idea and in reporting on and helping to systematize the knowledge underpinning the field as it develops. There is also extensive work for the emerging institutions of the citizen sector to do here.

Sketching the story of one HVAC on which Ashoka is working will help make this change more concrete: Over most of the planet small farmers do not have access to drip irrigation equipment. It is not profitable for the piping and irrigation firms to serve them. The companies’ costs are too high for the poor rural economy, and the companies do not understand or trust the small farmers or their environment.

In Mexico, a partnership between Amanco (the leading piping company in Latin America), Ashoka, and local citizen groups is now beginning to demonstrate how to close this gap.

Over the last decade, large, competent citizen groups have developed to serve small farmers. Their cost structure is that of the “other Mexico,” that of the poor and of the rural areas. They understand and have the trust of their clients. innovations / winter 2006

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Bill Drayton

Moreover, the sector has increasingly mastered relevant skills ranging from large-scale/low-cost organizing to knowing how to help poor people save reliably.

These now large, skilled, economic citizen groups can provide the missing bridge between the company and a huge untapped new market, between the farmers and access to a technology that will provide them with more income, more stable income, water conservation, and environmental benefits.

Everyone benefits enormously.

The farmers earn much more, more securely.

The environment benefits, and the country produces more, more reliably.

The first citizen groups to join are the only source, at least for a while, that can provide these benefits to their farmer clients. This gives them a huge competitive advantage vis-à-vis both government and other citizen groups. Moreover, they get the same markup that businesses playing similar roles in bigger markets receive—a huge (especially relative to their cost structure) and growing revenue flow that is also independent of governments and foundations.

Amanco will be the first into this market and should settle in long term with a significant share, even recognizing that competitors will follow. The company has established key relationships and is quickly coming up the learning curve to mastering this new market, which is making it harder and harder for others to catch up quickly.

Nonetheless, competition will come. Citizen groups that said no when Ashoka first approached them, fearing the risks (and in some cases feeling uncomfortable partnering with business), are watching and beginning to wonder where they can find such a deal.

Business will probably respond even more quickly. In a second HVAC area, slum reconstruction, a major global competitor to the company with which Ashoka began this work decided it had to jump on this new approach four months after the first HVAC collaboration began if it was not to fall behind in accessing this huge new market.

Each of the HVACs creates very large, reasonably uniform financing needs across the globe. These eminently financeable needs in turn become a critical source of the attractive new products needed to fuel the new businesses waiting to be born in the for-profit finance industry.

Street improvements in the Agua Fria To the degree these needs come from a business/social marriage, they will be even settlement of northern Guadalajara more attractive to the finance industry and to many clients. This will reduce the price discount where Ashoka and Cemex’s Patrimonio that risk-averse investors attach to anything unfamiliar. It also builds in a further acceleration Hoy program has speeded and cut the of learning and therefore of productivity growth for both business and citizen sectors. cost of housing.

Learning will accelerate further as the two sides overcome the differences in style, language, and clothing, and the mutually suspicious stereotypes that developed over the last several centuries of deepening division. The people on both sides will bridge these gaps, not because doing so is socially nice, but because it is essential for their respective core interests: business wants these markets, and the citizen groups want to deliver these goods to their clients and gain financial and political independence.

The HVAC delivering drip irrigation to smaller farmers generates two sound lending opportunities: The large, stable, competent citizen groups providing the bridge between company and farmers need bridge financing when starting up until they reach breakeven.

Far bigger is the need to help the farmers obtain credit so they can buy this substantial capital asset. Loans to farmers for drip irrigation should be attractive to lenders for two reasons: (1) there is security and (2) the farmers will stop making many other payments long before this one, given how central this equipment is to their economics. Once the mechanisms are developed, such loans could quickly become a gigantic financial product class given that capital equipment and many millions of modest farms are involved.

The same pattern holds true for the urban slum reconstruction HVAC, where Ashoka’s work is also far advanced.

Similar logic but somewhat different specifics will produce yet more financing opportunities in one HVAC after another.

Each requires extensive financial engineering and then marketing; but the cumulative effect, especially as the competitive jujitsu in each area kicks over, will be a tsunami of large-volume, low-unit transaction cost, profitable for everyone, and offering new investment opportunities.

Getting the for-profit finance industry to enter the social financial services field is entirely critical if the citizen sector is to obtain the inventive, adaptive, responsive, and efficient institutional services it so urgently needs.12 Investor innovations / winter 2006

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Everyone a Changemaker

demand does not create the bottleneck. The chief obstacles are: first, inadequate flows of high volume, diverse, attractive investment opportunities; second and simply, insufficient imagination to see so large a strategic opportunity.

If anything, the need for profound change is even greater when it comes to how the citizen sector supports itself once groups pass beyond the early years when institutional finance is key.

Citizen groups, very much like businesses, have a three-stage life cycle. They start with a self-financing “garage” incubation period. Then they gear up for a time of service and product testing and refining and also of institutional formation that often requires significant institutional investment. Eventually they move onto a “post-breakeven” mature phase, where citizen base or grassroots resources coming in must at least equal expenditures. Outside the U.S. and a handful of other countries, this citizen base is entirely inadequate.

This inadequacy poses a profound strategic risk to both individual groups and the citizen sector overall. As we have seen, the sector is now large and growing explosively. Foundations cannot touch this scale of need. Governments, if they were not increasingly under pressure to retrench, could provide the needed resources. In many cases they would like to do so, both to ensure the provision of needed services and to reestablish control over the citizen sector. This is, of course, a danger the groups and the sector cannot afford to run. Dependency on government was precisely what caused the sector to fall so far behind business from 1700 to 1980.

The only alternative is to build the sort of broad base of citizen support that underlies every sector of society that does not have the power to tax and that has become secure and steady: business, religion, trade unions, social clubs, even the schools of samba that enable poor neighborhoods in Brazil to prepare and mount Carnival groups every year.

This base has four main components: people’s time, money, information in and out, and captive businesses. The mix that works will vary by field and institution. However, any institution that cannot find a mix that works for it is unlikely to survive long.

The challenge here is not to get Brazilians or Poles to be more generous. They give generously now, but only to groups that ask, and ask intelligently—be they the churches or the schools of samba.

The citizen sector is new. In most countries it is just now reaching the stage where there are a significant number of reasonably stable, mature, clearly focused institutions ready to build such broad citizen bases. The challenge, then, is closer to home. It has to jolt the citizen sector itself to grasp that it must and can go out and build this new sustainable, long-term foundation.13 And, at the same time, to help it learn how.

WHERE WE ARE GOING The daily news is chronically dispiriting, a reportage of follies that seem to be taking place in a world without a compass.

That is probably so in part because this is a time when deep historical tides are moving with unprecedented speed and force.

The millennia when only a tiny elite could cause change is coming to an end. A generation hence, probably 20 to 30 percent of the world’s people, and later 50 to 70 percent, not just today’s few percent, will be changemakers and entrepreneurs. That world will be fundamentally different and a far safer, happier, more equal, and more successful place.

To get there, we must end the infantalization of young people. They and the rest of us must enable all young people to be fully creative, initiatory, and powerful changemakers.

We must also build the wisest possible financial and other institutions so that, as these young people become adults, the new citizen sector will draw them fully into an “everyone a changemaker” world.

We invite reader comments. Please send an email to <editors@innovationsjournal.net>.

innovations / winter 2006

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Bill Drayton

1. As Ashoka has come to understand this more clearly, it has clarified its ultimate goal. Challenged several years ago by eBay’s Pierre Omidyar, Ashoka came to understand, given its understanding of these historical forces it came into being to serve, that its ultimate goal is an “everyone a changemaker” world. Before that, it had talked chiefly in terms of the intermediate goal of building an entrepreneurial/competitive citizen sector.

2. Interview with economist Will Baumol in his office. See also, William J. Baumol, The Free-Market Innovation Machine (Princeton University Press, 2002).

3. The “social” or “citizen” half of the world’s operations includes education (students, faculty, organizations), health, environment, emergency relief, rural and slum development, human rights of all sorts, and all the other areas of human and environmental needs–except when these needs are served by the business other half. Eventually the distinction will fade as the accidental division created over the last three centuries of rapid business productivity growth and social-sector stasis erodes. Ashoka and a growing number of other citizen sector organizations ask that everyone stop defining us as not government (NGO) and not business (“nonprofit”), respectively, the European and American first reactions to our newly emerging sector. It does not make sense to define half of society by what it is not. We suggest the use of “citizen sector” and “citizen organization” instead. One or more citizens caring and organizing to provide a service or spark a change are the active ingredients. And, as this paper articulates, our most important impact is our “everyone a changemaker”—aka citizen—role.

4. Ashoka was conceived in the 1960s to serve this historic transformation, but it only began work in 1980 when it perceived that the time was ripe.

5. Canadian Ashoka Fellow, Mary Gordon, and her Roots of Empathy program, is one example of the innovation building in this area. See Mary Gordon, Roots of Empathy: Changing the World Child by Child (Thomas Allen Publishers, 2005).

6. These partners in the U.S., for example, range from the Girl Scouts to Staples, from MTV to a growing number of local United Ways and schools.

7. Youth Venture’s experience in the U.S. 8. These are typical of the sort of venture Youth Venture has found among teens in the U.S. 9. A skipping trust gives income from capital for a generation, but not the capital. Skipping a generation, the principal is distributed to the grandchildren of the person who created the trust.

10. Ashoka is engaging with partner institutions to pioneer/demonstrate this new business. As this product and business development work proceeds and partners agree, it will report on these developments at <www.ashoka.org>.

11.William F.Meehan III, Derek Kilmer, and Maisie O’Flanagan explain the reasons for this, in Investing in Society, Stanford Social Innovation Review (Spring 2004): “For starters, [government and foundations do] not have cost efficient transaction processes, when compared to for-profit benchmarks. In the for-profit capital market, companies spend between $2 and $4 raising capital (e.g., legal, marketing, and administrative expenses)—for every $100 they raise. In the social capital market, however, nonprofits spend between $10 and $24 for every $100 they earn through fundraising (e.g., obtaining donor lists, sending direct mail, or making phone calls). Nonprofit chief executives, meanwhile, spent between 30 and 60 percent of their time pursuing donations with such ‘soft costs’ unevenly accounted for in fundraising costs. Foundations and government grantors, meanwhile, spend about $12 to $19 on administration (including general overhead and reviewing grant applications) for every $100 they allocate.

Federated givers, those intermediary organizations such as the United Way and Jewish Community Federation that collect individual donations and then allocate dollars to charities, spend approximately $13 million for every 100 to cover their expenses. That means that in the social capital market, the cost of raising capital consumes roughly 22 to 43 percen t of the funds raised, a dreadfully inefficient process.”

12. Ashoka is also pursuing several other, complementary strategies. One is its new Social Investing Venture (SIV) program. The SIV program seeks out leading entrepreneurs anywhere in the world who are championing major structural change in social finance. It helps them get started and succeed and will work to enable them to share and collaborate with one another, with leading operating social entrepreneurs, and with thought leaders in the social investment field.

13. Ashoka’s Citizen Base Initiative is pursuing three specific strategies to help tip the citizen sector’s perception and behavior. See <http://www.citizenbase.org>.

Photo credits:

Cover: Top left - John Maier, Jr., The Image Works Bottom left - Janet Jarman www.janetjarman.com Back Cover: Middle right - Janet Jarman www.janetjarman.com Bottom left - Janet Jarman www.janetjarman.com Inside: p.5 - John Maier, Jr., The Image Works p.23 - Kris Herbst, Changemakers.net

innovations / winter 2006

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Bill Drayton Chair & CEO Ashoka: Innovators for the Public

Bill Drayton is a social entrepreneur. As a student, he was active in civil rights and founded a number of organizations, ranging from Yale Legislative Services to Harvard’s Ashoka Table, an interdisciplinary weekly forum in the social sciences. He graduated from Harvard with highest honors and went on to study at Balliol College in Oxford University, where he attained his M.A. with First Class Honors.

He is also a 1970 graduate of Yale Law School and has been a professor at both Stanford Law School and Harvard’s Kennedy School of Government. In 1970 he began his career at McKinsey and Company in New York. From 1977 to 1981, Mr. Drayton served in the Carter Administration as Assistant Administrator at the U.S. Environmental Protection Agency where he launched emissions trading (the basis of Kyoto) among other reforms.

After his term at the EPA ended in 1981, he returned to McKinsey half-time and launched both Ashoka and Save EPA and its successor, Environmental Safety. At McKinsey, he helped the firm develop tax and regulatory design work and then its use of industry strategy (an increasingly useful first step to company strategy). With the support that he received unexpectedly when elected a MacArthur Fellow at the end of 1984, he was able to devote himself full time to Ashoka. Mr. Drayton is currently the Chair and CEO of Ashoka: Innovators for the Public. He is also Chair of Youth Venture, Community Greens, and Get America Working!

Mr. Drayton has won numerous awards and honors. Most recently in 2005, he was selected one of America’s Best Leaders by US News & World Report and Harvard’s Center for Public Leadership. In the same month he was the recipient of The Yale Law School Award of Merit, the school’s highest honor. In 2004, he received the National Wildlife Federation’s Conservation Achievement Award International. Mr. Drayton has also received the Vanguard Award for Contributions and Achievements in Nonprofit Law from the The American Bar Association, the Common Cause Public Service Achievement Award, and the National Public Service Award from the National Academy of Public Administration and American Society for Public Administration.

www.youthventure.org

Abuja | Ahmadabad | Asunción | Bamako | Bandung | Bangkok | Bogotá | Bongaigaon Budapest | Buenos Aires | Cairo | Calcutta | Caracas | Colombo | Dakar | Delhi | Dhaka Frankfurt | Harare | Istanbul | Johannesburg | Kampala | Karachi | Kathmandu | La Paz Lima | London | Madrid | Mataram | México City | Montevideo Ouagadougou | Paris | Prague | Quito | San José | San Salvador | Santiago São Paulo | Toronto | Vilnius | Warsaw | Washington, D.C.

FROM IDEAS TO SOCIAL ENTERPRISE A guide to utilising university intellectual property for the benefit of society

Copyright © UCL, UCLB, UnLtd and STORM, 2013 ‘From Ideas to Social Enterprise - A guide to utilising university intellectual property for the benefit of society’ is the result of a collaboration between UCL, UCL Business PLC, UnLtd and STORM® Skills Training CIC. It was made possible through the generous support of the Intellectual Property Office Fast Forward Competition.

The overview, considerations for discussion and templates provided in this guide are not intended to be comprehensive and do not constitute legal advice. Readers should consult their HEI’s policies and legal advisers on any specific legal issues. To the fullest extent permitted by law, neither the authors of this guide nor any partner organisations shall have any liability, whether arising in contract, tort, negligence, breach of statutory duty or otherwise, for any loss or damage, whether direct, indirect or consequential, occasioned to any person acting or omitting to act or refraining from acting upon any recommendations or suggestions contained in the guide or from using any templates provided in this guide.

2

Foreword UCL is a globally leading university and as a research powerhouse generates large volumes of cutting edge knowledge as a consequence of world class curiosity-driven research. We know that such knowledge can have its most profound impact outside of the walls of academia and, as such, has the potential to change society and improve peopleâ&#x20AC;&#x2122;s lives. UCL is committed to supporting the academic community in maximising the social benefit of its research, using the widest possible range of mechanisms available. Within

that range of activities, social enterprise plays an important role and resonates particularly with UCL, which it might be argued, was originally set up as a social enterprise.

I was therefore delighted when colleagues at UCL, UCLB, UnLtd and the University of Manchester secured the support of the Intellectual Property Office to develop a toolkit that will assist social entrepreneurs, knowledge transfer offices and other stakeholders in the higher education sector to create and develop effective social

enterprises. Such a venture is a powerful illustration of our continued commitment to our core mission: to create a greater understanding of the world through research and scholarship, and then apply our knowledge and insight for the good of society.

Professor Stephen Caddick Vice-Provost (Enterprise) UCL

ďťżForward

3

Acknowledgements This guide is written through a year long team work, with expertise in social enterprise, knowledge transfer and academic staff involvement in social enterprise. The core team included Madeleine Gabriel and Hannah McDowall (UnLtd), Muki Haklay (UCL), Ana Lemmo Charnalia (UCLB), and Gillian Green and Sonia Nikolovski (University of Manchester).

The guide was edited by Josh Lange (UCL). Nadine Lange developed initial visual layout.

The experiences of STORM Skills Training CIC, Mapping for Change CIC, UCL Business PLC (UCLB) and University of Manchester Intellectual Property (UMIP) were instrumental in developing the toolkit.

We are very grateful for the assistance of Julian Blake at Bates, Wells and Braithwaite, specialist social enterprise and education institution solicitors,

4

Acknowledgements

for comments on the drafting of the Guide; the model documentation in Appendix A and consent to use the table on page 22, which was originally published in “Keeping it Legal”, a joint publication by BWB and Social Enterprise UK, Steven Schooling (UCLB) and Tim Curtis (Northampton University) for comments and advice on an earlier draft of the manual.

In addition, Barbara HastingsAsatourian (Contraception Education CIC), Peter Hooper (University of Keele), Dominic Chalmers (University of Strathclyde), Brian Clements (University of Wolverhampton), Alex Nicholls (University of Oxford), Kelly Smith (University of Huddersfield), Paul Haywood (University of Salford), Pawel Zolnierczyk (SEEK, University of Salford), Tony West (Anglia Ruskin University), Claire Jackson (University of Strathclyde), Hilary Dalke (Kingston University),

Wai-Ling Bickerton (University of Birmingham), Heather Thompson (UMIP), Eryl V Cox (Research and Commercial Division, Cardiff University) and Sue Sundstrom (Research and Enterprise Development, University of Bristol) who shared with us their insights.

UCLB provided space for meetings and administrative costs that are associated with the project, and the project would not have been possible without the support of the Intellectual Property Office (IPO) and its Fast Forward Competition.

Professor Muki Haklay, Department of Civil, Environmental & Geomatic Engineering and co-founder Mapping for Change University College London (UCL)

Contents Part one: UK Higher Education and the Second Invisible Hand ��������������������������������������� 6

4.2 STORM: community interest company limited by guarantee ���������������������������������������������������������������������������������32

1.1 Introduction ���������������������������������������������������������������������������������6

4.3 Mapping For Change: community interest company limited by shares ���������������������������������������������������34

1.2 The role of knowledge transfer offices (KTOs) and research commercialisation offices ��������������������������9

4.4 Contraception Education: limited company converted into a community interest company �����35

Part two: The Basics ������������������������������������������������������������������ 11

Appendix A: Model Agreements ��������������������������������������������������� 36

2.1 Definitions of Social Enterprise �������������������������������������� 11

A.1 Model Document 1 – Licence of Copyright ���������36

2.2 Difference between social enterprise and regular enterprise ������������������������������������������������������������������������ 12

A.2 Model Document 2 – Licence of Patents/ Know-how Rights �����������������������������������������������������������������������39

2.3 University Intellectual Property ����������������������������������14

A.3 Model Document 3 – Checklist of considerations for University participation in Social Enterprise utilising University generated intellectual property �������������������������������������������������������������������������������������������42

2.4 Governance ����������������������������������������������������������������������������� 15 2.5 Articulating and measuring social impact ����������18 2.6 Common legal forms ���������������������������������������������������������19

Part three: Business Plans and Agreements ��������������������������� 21

Appendix B: Pros and cons of common legal forms in the social enterprise sector �������������������������������44

3.1 The business sketch checklist ��������������������������������������� 21 3.2 Formulating ‘in principle’ agreements with the HEI and external partners ������������������������������������������������������23 3.3 Agreeing on the use of university intellectual property ������������������������������������������������������������������������������������������� 27

Part four: Case Studies ���������������������������������������������������������������30

Appendix C: Considerations for discussion �������������������������������46 Appendix D: Links to further UK & worldwide resources ������� 47 Endnotes ���������������������������������������������������������������������49

4.1 DECIPHer Impact: company limited by guarantee ����������������������������������������� 30

Key to Acronyms:

Note on terminology:

HEI: Higher Education Institution

This guide uses the term Social Enterprise throughout, which is defined in section 2.1 below.

The authors acknowledge that this can be a contested term especially in instances when the legal structure of a venture allows for private profit and distribution

KTO: Knowledge Transfer Office IP: University Intellectual Property RCUK: Research Councils UK HEFCE: Higher Education Funding Council for England

of profits to private shareholders.

Social Enterprise is used throughout to refer to Enterprises which use the majority of their surpluses for social good.

Contents

5

Part one:

UK Higher Education and the Second Invisible Hand Audience This guide is aimed at HEI faculty and staff interested in starting up a social enterprise. It informs HEIs how to best assist researchers to commercialise their research and develop spinout businesses with a primarily social aim.

Aim This guide provides a starting point for collaboration between academic staff and research commercialisation staff to create, launch, and scale social enterprises. In particular, this guide presents relevant information, practical methods, and case examples to assist in the development of formal university spin-outs based on intellectual property. Readers are advised to follow links found in the appendix and in endnotes to find specialist information, and refer to their institutional policies for further guidance as well as seek professional legal advice when required.

1.1 Introduction This introductory section offers Higher Education Institution (HEI) leaders and other interested parties a conceptual understanding of how university knowledge and resources, including intellectual property, can be capitalised on through creation of social enterprises. It outlines how social enterprises can effectively utilise academic and research staff knowledge in ways that compliment existing knowledge transfer activities; positively impact HEI communities; fully enrich the teaching, learning, and research experience; and align with HEI strategies for public engagement.

Professor and later lord rector of Glasgow University, Adam Smith, provided his readers with more than one ‘Invisible Hand’ in his world-changing economic and moral philosophy. In 1759 in his Theory of Moral Sentiments, Smith identified a balancing feature of ‘regard for others’ as essential to societal progress, what one modern theorist calls ‘The Second Invisible Hand’ i.

Social enterprises fulfil Smith’s grand challenge by placing solutions to long term societal and environmental concerns rather than short term profit - at the heart of their enterprise. It can even be said that universities are a type of social enterprise.

By commercialising HEI knowledge through social enterprise, everybody wins.

To illustrate this, the Chair of

6

Part one: UK Higher Education and the Second Invisible Hand

Universities UK Employability, Business and Industry Policy Network recently wrote: ‘university engagement with social enterprise can only be beneficial for all concerned’ ii.

Transferring knowledge into social enterprise is good for higher education because it aligns traditional values with innovation through creating and advancing sustainable financial, social, and environmental solutions, often by invigorating otherwise latent university IP. Furthermore, research funders have insisted on assessing the social impact of research activities that culminate in IP. For example, the RCUK Excellence to Impact Framework expects university researchers to demonstrate the wider impact of their research on society.

Attuning to the RCUK framework through the commercialisation and wider impact of research and academic activities by building social enterprise capacity is a natural extension of the educational and charitable missions of the HEI community.

This guide provides methods and resources for HEIs to achieve many of the goals for the RCUK Sustainable World iii, including ‘improving health and well-being’, ’enhancing the research capacity, knowledge and skills of public, private and third-sector organisations’ ‘environmental sustainability, protection and impact’ and ‘enhancing cultural enrichment and quality of life’ as well as others. A similar list from the European Commission includes employability, social inclusion, and ethical trade. Accordingly, this guide complements the 2011 HEFCE iv report which suggests that HEIs have vast but largely untapped capacity to build the next generation of financially profitable and environmentally sustainable social enterprises whilst fulfilling their individual public benefit and charitable strategies simultaneously with their research agendas.

In addition to measurable economic, social, and environmental impact for each institution, social enterprise engagement offers multiple political and financial benefits.

Fifty-six HEIs in the UK have pledged to HEFCE and UnLtd to redirect £1 billion of expenditure towards social enterprises, and billions of pounds of government and private investment are being redirected towards social enterprise around the

Social enterprise modules Research

Partnerships with local business/ community

Work placements with SEs

Business development labs

SOCIAL ENTERPRISE Staff enterprise support

Seed funding

Extracurricular lectures & support

Wider enterprise support

Support for start-up businesses

Figure 1: Types of social enterprise support offered within universities v world through implementing large-scale investment policies such as the UK government’s ‘mutualisation agenda’ and the coming into force of the UK Public Services (Social Value) Act, commenced in England on January 31st, 2013. This Act requires social value to be considered as part of all public sector commissioning processes, including the commissioning from HEIs.

Social enterprise offers innovative methods of measuring the social value of enterprise activity; and HEIs are particularly suited towards building broader capacity, creating and capturing value, and increasing the rigour of the public welfare

agenda through matching intellectual property and networked expertise with social enterprise.

Figure 1 shows that in addition to national and institutional advancement, HEIs are especially suited for creating knowledgebased social enterprises which have the potential to fully exploit the commercial use of organisational resources whilst addressing genuine social concerns.

For example, many HEIs can offer improved services to the community through social enterprise spin-outs from the local university. These opportunities offer much more than short term profit maximisation: social enterprises

Introduction

7

“How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it.”

Adam Smith, 1759, The Theory of Moral Sentiment

are centred on operating sustainably and generating reasonable surplus for further development, scaling, and social finance – like universities, social enterprises aim for long term goals. Even further, when taking into account the broader strategic vision of aligning social and environmental imperatives with HEI resources to create future value and social capital, the development of social enterprises becomes a natural avenue for enhancing knowledge transfer and research outcomes as well as a virtuous circle of value creation. This guide focuses on the utilisation of intellectual property and other faculty and staff social enterprise activities

which produce financial value in addition to the following benefits: Utilise the high level of skills, knowledge and abilities of academic and research staff Impact positively on HEI communities, particularly in inner city areas by addressing relevant social and environmental problems Enrich the learning and research experience by testing ideas for solutions of social and environmental problems in everyday economic environments Align with HEI charitable goals and public relations initiatives

Similarity

Difference

Management is key to the success of the business.

For SE’s, opportunities for external investment may be specific to social aims.

Positive cash flow is very important for the success of the business, though oftentimes it is difficult to maintain.

Emphasis is on social impact and profits reinvested into the company. The paramount duty to shareholders is replaced, wholly (if the social enterprise is a charity), or partly, by a duty to the social enterprise’s public, social, or community purposes.

IP developed at a higher education institution is key to the product/ service delivered by the company.

Although protecting value is still important and IP a valuable asset, SE’s are relatively less likely to see proprietary IP protection as essential and relatively more inclined to see it as a collaborative resource.

Company and academic/institution interactions can be complex.

SE/HEI interactions may be supportive, collaborative and subsidising to the extent the SE is promoting the HEI’s public benefit objects.

Table 1 A snapshot of similarities and differences between HEI-based for profit and social enterprises

8

Part one: UK Higher Education and the Second Invisible Hand

1.2 The role of knowledge transfer offices (KTOs) and research commercialisation offices

influence the commercialisation route.

This section provides guidance in relation to similarities and differences between traditional ‘for-profit’ business models and social enterprise; myths and realities of embarking on a new social enterprise; and specific areas where KTOs can offer assistance.

The role of KTOs and research commercialisation offices at higher education institutions is to support staff and students in the commercial exploitation of innovations that have come about from their academic activities. This typically involves an initial screening process to identify whether there is novelty and commercial value relating to the innovation. If it is decided that a tangible commercial opportunity exists for the

innovation, then the KTO will work with the academic/student entrepreneur to explore potential ways of commercially exploiting the innovation. This involves examining a variety of business models that could be used. The input of the academic/student is important in this regard, as their attitudes and opinions relating to how their innovation can be exploited and how much they wish to be involved in - and benefit from - this process will

A complementary route to commercialisation of university IP is through social enterprise: the commercial exploitation of ideas/innovations via a company that takes into consideration the social/ environmental impact of its business in addition to the profitability of that business. The table opposite outlines some of the similarities and differences between a social enterprise and the more common ‘for profit’ company that is usually considered for a university spinout/startup company.

From the perspective of the social entrepreneur there are many similarities between starting up a social enterprise and starting up a conventional for-profit company. Both are businesses requiring viable

Myth

Reality

Being your own boss does not require a significant time commitment

Starting and managing a company is incredibly hard work and can be very time-consuming.

Social enterprises do not need to make money

The social entrepreneur needs to generate surpluses to ensure sustainability, and simultaneously promote social/environmental benefits in a meaningful, tangible, and measurable way.

Financial incentives are the only motivation to start a business

Successful social entrepreneurs are more likely to be motivated by innovation, creating change, doing good and improving existing services than by money alone. However, the social enterprise must be profitable in order to continue to exist as a company and to use those profits to generate positive social/ environmental impact.

Some universities have more resources and better support structures to assist in the development of social enterprise than others

Most HEIs will have support structures that can assist the social entrepreneur with the development of a business. Request assistance from internal champions and others at the HEI who have well-established activities in the area of social entrepreneurship or charity development. Additionally, the social entrepreneur should seek to be directed to external networks and organisations that can offer to support on this journey.

Table 2 Myths and realities of university social enterprise development

The role of knowledge transfer offices (KTOs) and research commercialisation offices

9

business plans, start-up and working capital, sufficient resources, and an appropriate organisational infrastructure to implement the business plan.

Table 2 exposes some of the myths that are common when thinking about social enterprises.

These must be seriously considered before thinking about before embarking on the social enterprise journey.

From the point of view of the social entrepreneur, the involvement of the KTO in establishing a social enterprise is beneficial for several reasons: ensuring that the proposal is viable and that legal and financial structures are sound; delineating the use of intellectual property; providing access to non-financial institutional resources; and finally through marketing and brand identity. Each of these is elaborated on in more detail below the following figure. Each quadrant in Figure 2 serves as a checklist for the KTO and social entrepreneurs to establish resource capabilities at particular HEIs. First, while the KTO might be new to the specificities of social enterprises, most of the experience in commercialisation of research can be effortlessly transferred to social enterprise, especially since social enterprises must produce a viable business plan. The KTO will have expertise in analysing business plans and providing feedback on their feasibility; they will be able to assess different ways of utilising the knowledge that is being invested in the social enterprise and consider how to protect it; and they will also have links to

10

SOCIAL ENTREPRENEUR

1. Financial & Legal Advice

2. Brand Identity & Marketing

contracts feasibility expected return human resources standards health and safety industry experience

university brand mark legitimate connection to the university reputation securing further investment industry experience

3. Organisational Resources

4. Conditions of Intellectual Property

variable expenses such as telephone lines and stationary fixed expenses for working, business planning, meetings collaboration with supportive colleagues at the university

proof of concept funding clarification of institutional policy delineation of ownership and value industry experience

KNOWLEDGE TRANSFER OFFICE Figure 2 Working with the KTO legal and accounting experts that can help to organise the early stages of establishing the legal and financial structures.

Second, the basic law is that intellectual property rights created by an employee in the course of employment first belong to the employer. In any other case (consultants, students, staff acting not in the course of employment) the individual creator is the first owner. Rights can be transferred by written contractual agreement or by formal written deed. Hence every consultancy or sub-contract

Part one: UK Higher Education and the Second Invisible Hand

should include, as standard, an intellectual property assignment clause or an appropriate license covering intellectual property rights created under the commission. Therefore, before setting up a social enterprise it is necessary to assess what IP of the HEI and/or of any other parties will be used in its operations and it is important to ensure sufficient rights are transferred, or licensed to the social enterprise and particularly in relation to licenses to consider attaching appropriate limitations to and conditions of their use.

Third, the KTO can provide access to the valuable resource such as the HEI name, logo, and access to networks and funding opportunities that ensure that the reputation of the HEI is linked to the social enterprise. This can be very valuable in attracting further investment, working with external organizations or securing business.

Fourth, including the KTO can also open up official access to HEI resources as part of the support package, such as premises, staff, equipment, and administrative support. It may also be a route to support funding or investment. These can be crucial for the early stages of the social enterprise. Also by being officially linked to the HEI, the social entrepreneur can

hope for a better understanding from management for devoting time and resources to the social enterprise. Most universities will have different structures to support the development of social enterprise activities. For instance, UCL Enterprise has established Social Enterprise Knowledge Transfer Champions, UCL Business (UCLâ&#x20AC;&#x2122;s Technology Transfer Office) has a business manager solely dedicated to identify and support social enterprise opportunities, and UCL Advances offers social enterprise training, networking and business support for students and staff.

However, the KTO might be unfamiliar with social enterprises, so it is important that the relevant academics and staff

communicate the rationale and benefits of such activities within their HEI. In practice, social enterprises are typically not complex or markedly different from for-profit enterprises and the KTO can seek external advice as needed. In practice, social enterprises are typically Working with the KTO to address a specific social aim with IP might even turn into a shared vision for the institution.

For a case where an academic and KTO worked together to change a limited company structure to a social enterprise see Contraception Education in Part Four

Part two:

The Basics This section defines social enterprise and clarifies how social enterprises differ from for-profit enterprises in relation to economic philosophy, governance, and legal organisational forms. It provides guidance related to business modelling, handling governance issues, measuring value, and addressing related challenges.

2.1 Definitions of Social Enterprise There are many ways to describe what a social enterprise is, and while official definitions are broad there are a few common principles regarding these types of organisations and activities.

Most formal definitions will carry the basic idea that a social

enterprise is a business that uses its surpluses to achieve social objectives. In terms of the Second Invisible Hand mentioned in the introduction, Social entrepreneurs implement a business approach built on others-regarding vi:

Addressing neglected societal problems by Challenging conventional wisdon (and status quo) through Innovative business models that Empower people to deliver Sustainable solutions (ideally scalable/replicable) achieving Multiplier impact on peopleâ&#x20AC;&#x2122;s lives

The role of knowledge transfer offices (KTOs) and research commercialisation offices

11

For example, the UK government use the definition ‘A business with primarily social objectives whose surpluses are principally reinvested for that purpose’ while the European Union offers a more elaborate definition: ‘Social enterprise’ means an enterprise whose primary objective is to achieve social impact rather than generate profit for owners and stakeholders. It operates in the market through the production of goods and services in an entrepreneurial and innovative way, and uses surpluses mainly to achieve social goals. It is managed in an accountable and transparent way, in particular by involving workers, customers and stakeholders affected by its business activity’. A more recent definition, as seen in the dissected ‘others-regarding’ approach opposite, adds the component of addressing neglected societal problems viii which offers a more specific frame for the idea of the ‘social’.

12

Part two: The Basics

2.2 Difference between social enterprise & regular enterprise Many social enterprises are charities delivering goods and services, for the public benefit, on a non-profit distributing basis as a direct means of promoting their charitable objects. Others have by definition charitylike social purposes through operating as community interest companies, or as community benefit societies (the community benefit form of industrial and provident society). Others may have a social purpose linked to the participation of community members (a co-operative industrial and provident society), or employees (a company structured as a mutual). Some ordinary businesses self-declare as social businesses. There can be skepticism about those, but there may be good reasons why a social business will take a legal form which allows for private profit, usually because

this enables them to attract private investment which they need to grow. In these cases a genuine commitment to social purposes may be present and demonstrable in practice.

The common factors are that the social enterprise primarily exists to serve a social mission and delivers it as an operating business, because it primarily sustains itself through trading successfully and making sufficient profit/surplus for its continued viability. Table 3 on page 13 outlines the core differences between a for-profit enterprise and a social enterprise.

At even a more fundamental level social enterprises can be seen as built on a different economic ‘edifice’ than regular enterprises, leading to long-term sustainable solutions (see Table 4).

For-Profit Enterprises

Social Enterprises

Driven by commercial mission although may have strong ethical practices, primarily suited to the companyâ&#x20AC;&#x2122;s needs. Primary accountability is typically exclusive to private business owners/shareholders.

Driven by social mission, and underpinned by a sustainable business model.

All income comes from trading.

Income comes substantially from trading in products or services, although grants and subsidy may also contribute (especially for charitable social enterprises).

Core aim is to make profits for owners/ shareholders; businesses are structured to distribute 100% of the profit to shareholders.

Core aim is to sustainably address a neglected social or environmental issue. Profits are principally reinvested in the business or community for a clearly-defined social purpose.

Cannot take on charitable or social enterprise organisational structures.

A range of legal forms are appropriate some of which cannot be applied to regular enterprises (A range of organizational forms can be found here: www.4lenses.org/settypology/models) viii

Offers pay and benefits based on a negotiated agreement, (fairness coming from business decision rather than mission principle).

Socially focused approach may be associated with a particular agreement in principle to beneficiary workers and/or a principle of fair pay and conditions to employees.

Competitive by purpose and nature.

More likely to engage with other organisations collaboratively in pursuit of the common social purpose (within relevant otherwise competitive markets).

Table 3 A comparison between social and for-profit enterprises

Self-Interest Edifice

Others-Regarding Edifice

Sustainable Competitive Advantage

Sustainable solutions

Logic of Control (5 Forces)

Logic of Empowerment

IP Protection and Trade Secrets

Share knowledge, Open Source

Maximize Profits

Maximize Societal Impact

Firms

Community / Solution

Capture Value

Create Value

Incentives

Intrinsic Motivation

Self-Interest

Others-Regarding

Table 4 Santosâ&#x20AC;&#x2122; comparison of self-interested and others-regarding edifices ix

Difference between social enterprise & regular enterprise

13

2.3 University Intellectual Property Intellectual property (IP) is the name given to the means of protecting the fruits of intellectual labour, whether it is laboratory research, a novel, the logo of a business or the knowledge associated with a product or process. It is a method of commercially protecting assets that, without protection, would rapidly lose their value. When granted, an intellectual property right (IPR) will give you the right to prevent others from using your property. This can give you a monopoly in the market, lasting from 15 years, in design rights, to potentially indefinite rights in the case of trademarks, (provided the trade mark is maintained and continually renewed). This protection gives value to your invention, and will increase the knowledge transfer opportunities available to you. The state grants such protection in order to provide incentives to investors to develop technologies, products and ideas in order to bring them to market.

There are four main types of IP rights which are used to protect inventions or creations: patents, copyright, design and trademark.

Patents A patent is a means of gaining protection for your idea against other people using it without consent. A patent is a legally enforceable document granted by the government of a country (or in the case of Europe, group of countries) which enables the holder to control who uses or benefits from an invention. A

14

Part two: The Basics

patent is means of protecting an application of a scientific or industrial idea – it is not a means of protecting an idea per se.

Copyright Copyright is an intellectual property right to an original created work such as a book; a research report; song, or other audio material; a film or any other visual material; and computer programs. It arises automatically on creation, and gives the creator (or his/her employer when the creation is in the course of employment), the exclusive right to use and benefit from the work.

Many social entrepreneurs also register a Creative Commons License x which allows creators to define specific permissions for the use of their work.

Designs There are a range of different levels and types of protection for designs in the UK and abroad.

In general though, Design right is an intellectual property right which applies to original, non-commonplace designs of the shape or configuration of products. According to the IPO, a design is legally defined as being ‘the appearance of the whole or part of a product resulting from the features of, in particular, the lines, contours, colours, shape, texture or materials of the product or ornamentation.’ This means that protection is given to the way a product looks. In the UK, design protection takes two forms: registered design and unregistered design rights.

Charities and social enterprises can register their designs in the same way as commercial

businesses.

Trademarks A trade mark is a registered, distinctive design or logo that gives the registered owner exclusive rights to use it – and, through its distinctiveness, is invested with goodwill value to assist in the promotion of goods and services. A trade mark can be useful as it enables a consumer to make an informed decision about the goods – for example, if a customer is pleased by a purchase, they would be more likely to then purchase another item that is advertised by that trade mark. This can be seen from the use of HEIs trademarks – it has now come to represent a certain level of quality, and the use of it on goods such as merchandising indirectly gives the customer more information about the good. Charities and social enterprises can register their trademarks in the same way as commercial businesses.

For a case where trademark was used for a social enterprise spin-out, see DECIPHer Impact in Part Four Typically, KTOs deal with types of intellectual property rights which can be protected. Due to the high costs involved in securing patent protection for an innovation, a KTO might only use this method to protect the intellectual property relating to an innovation if it is seen as a commercially high value innovation and will most likely fulfill the legal requirements to achieve patent protection. In addition to patents there are other types of intellectual property that can be commercially exploited,

Patents

Trade marks

Copyright

Registered Design Right

Term

Up to 20 years (subject to annual renewal)

Rights can last forever (renewals every 10 years)

Life plus 70 years (Broad-cast and sound recording copyright lasts for 50 years, typo-graphical arrangement for 25 years)

Up to 25 Years

Area of Protection

Throughout the UK – International registration is usual

Throughout the UK – International registration is usual

Throughout the UK – protected by international copyright agreements

Throughout the UK

Protects against

The protected idea being used, sold or manufactured

The use of protected trade-mark by others without owner’s permission

The protected work being copied or reproduced in communication or performance

The protected product being manufactured, sold or imported

What is protected

Inventions

Brand identity, Exclusive rights in original including words, work, e.g. music, art, film, logos and other signs literary works and broadcasts

What the product looks like

Table 5 Summary of four main types of IP protection in the UK xi such as copyright, registered designs, trademarks and trade secrets (visit UK IPO website for definitions). These other types of intellectual property, in addition to the expert knowledge held by the academic/student, could prove commercially lucrative within a social enterprise.

2.4 Governance Governance concerns how an enterprise is accountable for its actions and how it decides its strategic direction. Different legal structures require different governance mechanisms, each having its own challenges.

Maintaining the balance between the social and commercial interests of the social enterprise can be difficult and governing boards play a crucial role in this.

If the social enterprise loses sight of the commercial side then it risks losing cash flow, financial forecasting, attracting investment

and ensuring profitability; on the other hand if it focuses too much on commercial success it risks mission drift, allowing the real purpose of the social enterprise to be compromised.

This section will highlight some general advice about getting governance right for all social ventures and highlight a few of the issues which are specific to the most common approaches to social enterprise. The following considerations relate to good governance:

Board members with a spread of skills In order to avoid either mission drift or poor business performance the board needs to have directors who challenge and support staff in both areas.

It is not only skills that are needed Time to offer support and members who share the same values is also important.

Especially as time and resources for board member training are often lacking, getting it right from the start will help. For legal purposes, the board members in a charitable company are called ‘charity trustees’. It is considered good practice for the management team to assess their strengths and weaknesses and consider how the board or the executive team might be augmented to maximise likelihood of success for instance by adding business development expertise.

Strong founders Many ventures are established by charismatic and strong founders eager to get on and do the social enterprise rather than organise the governance side. Failure to get governance right early on, however, runs the risk of problems down the line when in effect governance is needed to resolve a problem or demonstrate accountability and

Governance

15

Sometimes academics might become directors of a social enterprise spin out. It is important to understand directors’ responsibilities and formal duties xii. As a director of a company, you must:

competence. Strong founders can also dominate a board, especially if they have influenced or picked board members themselves, but a board needs to hold executives and staff to account, as well as bring new perspectives into work plans and business development.

• Try to make the company a success, using your skills, experience and judgment

Multi-stakeholder boards

Insider’s Note

• Follow the company’s rules, shown in its articles of association • Make decisions for the benefit of the company, not yourself • Tell other shareholders if you might personally benefit from a transaction the company makes • Keep company records and report changes to regulatory bodies • Make sure the company’s accounts are a ‘true and fair view’ of the business’ finances

Very small ventures

Ensuring that the vision is properly understood and shared from the start and ensuring each stakeholder’s interests and concerns are expressed will help.

Regularly revisiting this vision and testing decisions against it will encourage stakeholders to put the interests of the organisation first rather than those of their particular group.

Company membership

Establishing the different remits of executives, staff, and the board from the start will help both to function in a mutually supportive manner. Role and job descriptions can help and terms of delegation need to be clear.

A social enterprise might want to get someone with expertise or experience in this area to help facilitate initial meetings where these differences are established.

Part two: The Basics

Board members need the right amount of information in sufficient time to make good decisions and contribute to strategic thinking. Managers of a social enterprise need to provide this but also prompt board members to comment on and scrutinise their proposals.

In some instances boards are particularly constructed to provide for the perspectives of different stakeholders. The danger in this is that each such director sees her/himself as a representative and sees her/his role as asserting and defending the interests of the appointing body rather than a central vision of the best interests of the collective enterprise.

Staff/board role clarifications

16

Good flow of information

In small social enterprise contexts the division between management and governance can be very unclear because one or two people are doing almost everything. To maximise governance best outcomes, trying to clarify expectations and divisions from the start and having regular reflections about how it is working will help.

In a commercial company the shareholders are owners with financial interests and voting rights which give them ultimate control of appointments to the board. In a charity, or another type of corporate social enterprise without a share structure (e.g. a community interest company limited by guarantee), the company members have the equivalent constitutional rights, but not the personal financial interests of shareholders. The HEI could be sole member; there may be a group of stakeholders (HEI; academic staff; students; enterprise employees; beneficiaries; community organisations, etc.); the directors may also be company members with decision making power at both levels in the company.

A social enterprise with a share structure may still have

investors or equity holding shareholders. The HEI may wish to participate as a social investor. In the Community Interest Company limited by shares, a maximum of 30% of realised profit is distributable to shareholders. In an industrial and provident society shares work more like loans paying annual variable interest as distribution entitlement is pre-tax.

For a case where the HEI is a shareholder, see Mapping for Change in Part Four Social enterprise type Mutualâ&#x20AC;&#x2122;s/membership based organisations

Common challenges

Addressing challenges

Boards are elected by membership from Keep members engaged and informed the membership â&#x20AC;&#x201C; danger that people with as to what the board needs, encourage right spread of skills may not be available members to elect people with skills as well or elected. Also a danger that certain as passion and to stay engaged. groups within membership become particularly active and dominate.

Those based on a charity sector approach

The most obvious board members may have strong charity/voluntary expertise but lack business expertise. If the social enterprise is coming out of a charitable way of thinking it might need to have a multi-organisational structure to ensure accountability for trading practices as well as charitable ones. The organisation may lack expertise to ensure business planning and operation using sound business principles.

Ensure that board has business expertise representation or understands that it needs specific advice in this area. May need to seek expert advice about a multi-organisational structure (a charity arm and a trading arm, if there are both charitable and non-charitable elements to the business). Be especially vigilant when offering a service in which there is a risk that full costs might not be recovered.

Those coming from a business sector perspective

Sometimes fail to understand the need for public accountability and transparency.

Ensure governance is robust and meets standards of intended clients and competitors.

Spin-out models (from a university or other organisation)

Lack of business expertise, lack of time to devote to the social enterprise, right spread of skills might not be available.

Utilise the strengths of the organisation such as the KTO and other faculty to formulate a sound Business Plan and Theory of Change .

Table 6 Addressing common challenges for specific social enterprise types

Governance

17

2.5 Articulating and measuring social impact Successful social enterprises usually begin with a robust Theory of Change xiv . This is a way of articulating the social problem that the venture is addressing, and stating how the social enterprise’s activities will make a difference to this problem. Although most social entrepreneurs have some understanding of how their intervention is intended to create a social impact, they do not always clearly articulate and communicate their theory of change. Doing so can be really helpful in getting the buy-in of others by explaining the social model of the enterprise.

Preparing a theory of change also tends to be a helpful exercise for social entrepreneurs themselves in shaping social enterprise activities – the theory of change ensures social enterprise activities are

deliberately designed to create their intended social impact.

Once the Theory of Change is clarified, the next step is to develop a plan to measure impact. Below are some important considerations for measuring impact:

Deciding what to measure This will usually include outputs – such as numbers of people reached, numbers of units sold, environmental assets protected – and changes, or outcomes that come about as a result, such as improved wellbeing or educational attainment. It is often a good idea to work with other stakeholders, such as customers, beneficiaries, partners and potential funders, to ‘map’ types of outputs and outcomes and decide which are most important to capture.

Identifying robust indicators of outputs and outcomes Indicators are signs that outputs and outcomes have been achieved and they can be quantitative or qualitative.

For example, an indicator of improved well-being might be ‘improved satisfaction with life overall’.

Deciding what types of evidence are needed and how much time and resources to invest in capturing evidence of outcomes This will depend on resources available, who needs the information and how it will be used. For example, direct customers and board members may be happy with case studies and basic monitoring information, while other audiences such as funders or public commissioning bodies might need in-depth evaluation or other types of evidence such as cost-benefit analysis.

Key questions for measuring social impact Beneficiaries

Results

Costs

Alternatives

18

What information about the beneficiaries is relevant to organisational aims? (e.g. age, sex, disability, employment status, etc.).

What measurable outcomes does this social venture actually achieve? (e.g. number of patients saved by a university-developed heart-monitoring device in a specified time period).

How much does it cost to provide each service? (e.g. some organisations calculate the cost of volunteers as if they were paid minimum wage).

What would have happened if the social venture had never intervened? (e.g. 1 million patients in developing countries would be unable to afford a life-saving treatment).

Benefits

How can the value of this social venture be shown? (e.g. short/long term quantitative results OR a financial cost determined concerning the implications for society - i.e. alternatives without this venture).

Positive Externalities

Are there any unplanned benefits coming out of this social venture that can be quantified? (e.g. beneficiaries or staff supplement the existing technology with a profit-making enhancement)

Part two: The Basics

More sophisticated analysis can include moving from measuring outcomes to calculating impact, such as trying to show what would have happened in the absence of the intervention.

There are many ways to express impact xv. Some organisations use approaches like Social Return on Investment, where return is calculated in monetary terms and expressed as a ratio of inputs (costs of delivering the intervention) to returns (monetary value of social impacts achieved).

For a case of how impact is measured in relation to a university spin out see STORM in Part Four.

2.6 Common legal forms Choices about adopting a legal structure will depend on a number of factors like stakeholders, governance, reputation, motivation in terms of profit distribution, scale, start up and working capital needs. It’s advisable that the legal structure accurately reflects the needs of the social enterprise. Table 7 on the following page offers a comparison of legal structures for social enterprises.

The most common legal structures for social enterprise in the UK are: Company Limited by Guarantee (which may also be a Registered Charity) Company Limited by Shares Community Interest CompanyCIC (limited by shares or guarantee)

Insider’s Note A table showing the ‘pros and cons’ of each of these structures can be found in Appendix B. All the structures listed are companies, regulated by company law, with limited liability for company members/ shareholders and directors/ trustees, so it is a legal person holding its own property, employing its own employees, entering into its own contracts and responsible for its own liabilities, without creditors having recourse to the personal assets of members or directors.

All social enterprises might be able to benefit from a discretionary 20% relief from rates on business premises, depending on the policy of the relevant local authority.

Part Three gives step by step guidance to help make the process easier.

Common legal forms

19

Company Company limited by limited guarantee by shares (including (including CIC charitable and version) CIC versions) Incorporated with separate legal identity?

Yes

Yes

Society for the benefit of the community

Bona-fide co-operative

Unincorporated Association

Yes

Yes

No

Limited liability for members?

Yes

Yes

Yes

Yes

Unlikely to incur liability unless there is an indemnity in the constitution

Limited liability for directors/ committee?

Yes

Yes

Yes

Yes

No

Rules

Rules

Various names can be used, e.g. constitution, rules

Constitutional document?

Memorandum and Articles of Association

Objects

Any

Any

Must be for the benefit of the community

Must follow co-operative principles

Any

Charitable?

Usually not

Can be

Can be

Usually not

Can be

Regulator?

Companies House

Companies House

FSA

FSA

None

Registration with Regulator?

Yes

Yes

Yes

Yes

No

Fees for registration?

£20

£20

£100 – £950

£100 – £950

N/A

Debt financing available?

Yes

Yes

Yes

Yes

Yes

Equity financing?

Yes

No

Protection of social purpose?

Membership voting

Stakeholder involvement?

None unless charitable or CIC, but some safeguards can be built into the constitution Usually one share one vote, so voting is weighted in accordance with the size of shareholding

Not conventional equity-but shares with distribution entitlement

No

FSA has to approve rule changes, and will protect purpose – public/ community benefit for Society; member benefit for co-op

Only constitutional and revocable

One member one vote

As per the constitutional document – usually one member one vote

Normal

Normal

Usually one member one vote

Possible if built into the structure explicitly

Table 7 Table comparing legal forms: choosing a social enterprise structure xvi

20

Part three: The Basics

Part three:

Business Plans and Agreements Business plans that seek to exploit university-owned intellectual property need to include specific details that have been thought through in order to gain permissions from the department, School/Faculty, and the HEI before starting-up. This section guides the social entrepreneur and KTO on how to work collaboratively with common business planning and formulation processes, particularly in relation to commercialising HEI intellectual property.

The ‘value’ of the proposed product - i.e. Value Proposition - needs to be determined. In the case of a social enterprise, this will include the financial as well as the ‘positive social impact’ covered in Part Two. When composing the plan, keep in mind the need to present the

social enterprise as addressing the HEIs explicit public benefit objects and its strategic goals, such as: social impact, public engagement, reputational value, key performance indicators, and commercial investment opportunities.

3.1 The business sketch checklist One-Page University Intellectual Property Social Business Sketch Checklist The idea – what objective this business idea may achieve and how it differs from existing methods How this business idea is connected with the social entrepreneur’s research

Often called the ‘cocktail napkin business plan’ this single side A4 page should include enough key information to start the conversation. It can also be used as a business planning template.

The business idea and theory of change xvii Information about any external organisations involved in the development of the IP Ideas about how the company will raise income (potential customers) Ideas about how the company will sell the product/service (route to market) Who will be in the company (company members, investors, trustees ((if charitable)), directors, and staff) What the social aims are and how they will be achieved What the role of the social entrepreneur is in the company What experience the social entrepreneur has running a business What resources (e.g. start-up and working capital, staff, equipment, premises) are essential and how they will be obtained

The business sketch checklist

21

The Social Enterprise Business Plan Creating a business plan or alternative such as the Business Model Canvas xviii is essential to help the social entrepreneur think about how feasible the business idea is and identify areas that

require additional research and input. A business plan will also be essential when seeking funding, whether is commercial finance or grants. Developing a business plan is not an isolated exercise, it will happen concurrently with gaining permissions: agreement

of terms will most likely result in changes or refinements in the business plan. Below are common aspects of for-profit and social enterprise planning that should be considered when transforming university IP into a sustainable social enterprise:

Ten Questions About the Business Every Business Plan Should Answerxix 1. Who is the new social enterprise’s customer?

2. How does the customer make decisions about buying this product or service?

3. To what degree is the product or service a compelling purchase for the customer?

4. How will the product or service be priced?

5. How will the social enterprise reach all the identified customer segments?

6. How much does it cost (in time and resources) to acquire a customer?

7. How much does it cost to produce and deliver the product or service?

8. How much does it cost to support a customer?

9. How easy is it to retain a customer?

10. What are the market development prospects and opportunities?

University social enterprise spinout business plans should include: Social issue or concern that the business will be addressing Products or services offered An established demand Measures of social impact including Theory of Change xx Production costs How production costs will be financed xxi A marketing plan xxii describing how the social entrepreneur will promote and sell its

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product or service. This includes an analysis of the market and potential competitors and collaborators An analysis (e.g. PEST) of the external factors and trends that will affect the business idea An analysis of the strengths, weaknesses, opportunities and threats (SWOT) to the project and how the social entrepreneur will exploit or manage them An analysis of the main risks facing the project

Part three: Business Plans and Agreements

 Check yourself: Determining real demand is a science of marketing and should never be taken lightly. For some social enterprises the beneficiaries will also be the customers, but for others the customers will be independent of the social purpose of the enterprise. Do not be one of the businesses and social enterprises that fail because demand was assumed without any thorough analysis and do not be afraid to undertake some market research.

3.2 Formulating ‘in principle’ agreements with the HEI and external partners

Insider’s Note The processes that need to be followed are likely to be different across the UK HEI sector but the following questions (Figure 3) are indicative of what might be discussed.

Initial Engagement with KTO or Research Commercialisation Office Once the Business Sketch is developed, permission needs to be sought to exploit the IP (For particulars concerning permissions, see appendix).

Initial meetings with the KTO will assess the value of the IP and the viability of the proposed business concept. The following steps and tools are designed to assist all of the stakeholders in preparing for the meetings about using the IP for a sustainable social enterprise.

Questions related to IP due diligence process • Background of research area and the significance of the work being discussed?

• Is there any intellectual property protection available for this work? If yes, what kind?

• How was this work funded?

• Who was involved in creating the IP? Who owns it? What is its commercial value?

• Are there any background and/or third party rights required to give value to the IP? • Are there any existing contracts that the organisation has in relation to this IP (such as collaboration agreements, consultancy agreements, confidentiality agreements, research contracts, IP licences, material transfer agreements)? If so, do these agreements contain any restrictive provisions that could affect commercialisation?

• Is there any competing IP/product/service?

• Does the IP created by the HEI risk infringing on the IP that belongs to anyone else?

• Has the work been discussed (verbally and/or in writing) with anyone who is not an employee of the HEI? If so, were confidentiality agreements in place?

?

Questions related to commercialisation and institutional issues • Has the academic done any market research?

Does the academic have any relevant industry contacts?

• Is the work reliable and does it do ‘what it says on the can’? Have any proof of concept studies been undertaken?

• What would the inventor like to do with this innovation? How do they envisage commercialising this and what are the reasons for their preference?

• What sort of value could commercialisation bring to the University (purpose delivery, social objectives, economic, reputation)?

• What role does the inventor see for himself or herself in the commercialisation process? How much of an active role does the inventor wish to take? Are they entrepreneurial?

• The inventor’s motivation for doing this and view of the social enterprise vs. for-profit alternatives: how does she or he plan to use any profits?

• Has the inventor had any informal conversations with relevant Head of Department? Is there support for this initiative?

• What are the risks for the HEI and the social entrepreneur in relation to this venture?

Figure 3 Potential questions raised during initial meetings between an academic and a technology/knowledge transfer representative Formulating ‘in principle’ agreements with the HEI and external partners

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1 – Bring a Business Plan to the Table Ensure that a clear business plan is written to demonstrate the viability of and commitment to the proposed social enterprise.

A detailed 3-year plan should show how the social enterprise will operate, the social entrepreneur’s role within that business and their continued involvement with the HEI.

Key Questions: • Has the social entrepreneur informed their Head of Department and obtained permission?

• Does the social entrepreneur have a marketing plan that includes a pricing strategy and market assessment?

• Does the business plan have a break-even-analysis?

• Does the social entrepreneur have a start-up and operating plan which specifies roles, responsibilities, and core processes?

• Has the social entrepreneur considered competing work responsibilities with the HEI, such as research and travel?

• What is the proposed relationship between the HEI and the social enterprise? More specifically, will the HEI license the IP for a fee, offer financial and material support, offer secondments for a charge, provide investment capital or a service provision?

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2 – Separate Research, Teaching, and Other HEI Responsibilities It is important to clarify early on the motivation for creating the SE and also any existing commitments that the academic might have. Be clear on how the social entrepreneur’s time, expertise and any innovations/ IP the social entrepreneur has developed whilst working at the HEI will be used within the social enterprise and how this will be balanced with core responsibilities. Depending on the policies inherent at each individual HEI, the social entrepreneur may need to discuss with the HEI employer regarding the use of professional time for non-HEI work. The employer may also view the use of existing expertise and any knowledge or innovations developed while an employee at the HEI as the use of assets developed and owned by the HEI. The social entrepreneur and partners (if any) may therefore need to agree with the HEI about the use of social entrepreneur time and HEI-owned assets. The social entrepreneur may wish for a temporary secondment of relevant staff members or colleagues from the HEI to work part-time for the social enterprise. If this is the case, then this will need to be discussed with the HEI through a separate agreement (covering relevant charges). Institutional policies vary, but some of the ways the arrangement might be codified include: part-time consultancies with key academics who remain HEI employees, secondment agreements, under which university employees remain employed by the university but

Part three: Business Plans and Agreements

are seconded to work full- or part-time for the company, and service agreements under which individuals are employed full- or part-time by the company.

Key Questions: • Does the social entrepreneur plan to work part-time for the social enterprise?

• Will the social enterprise depend on the social entrepreneur’s specialist knowledge and/or IP that the social entrepreneur has developed while an employee at the HEI? • What is the HEI policy on time spent on work unrelated to the social entrepreneur’s faculty/ staff contract? Have the HEI’s sign off procedures been followed?

• Where will staff for the social enterprise come from? If from the HEI, staff contracts must be considered and all procedures carefully followed according to HEI policy.

3 – Show how the HEI will Benefit from the Social Enterprise The HEI may be obliged to secure proper value for, or wish to be financially reimbursed for the transfer to or use of its assets in the social enterprise, including expert knowledge or IP the social entrepreneur has developed. In any event, an explicit agreement is required. This could involve a license agreement (the HEI gives the social enterprise permission to use the IP), an agreement to assign the University IP to the social enterprise (the IP becomes the property of the social enterprise) The agreement may also involve the HEI providing financial and other resources on appropriate terms. The HEI may wish to have an equity

stake in the business (if there are shares), or constitutional company membership without a financial interest and/or a seat on the board of directors.

Think about the benefits that the social enterprise can bring to the HEI and its community – these can be included in the discussions to demonstrate valuable reputational, social and financial benefits that the proposed social enterprise can provide. Importantly, the social entrepreneur has the ability to position the ‘best-case scenario’ for the IP in relation to the societal and ethical imperatives and potential qualitative impact of research production and dissemination.

Key Question: • Has the social entrepreneur evaluated the opportunity costs to these different scenarios? For example, if the HEI insists on 50% of the net revenue, will the remainder suffice to operate the social enterprise?

Here’s a practical equity formula to express social enterprise IP value: Monetary value of IP + Monetary value of subject matter expertise xxiii + Added income from social enterprise tax benefits, volunteer work hours and grants and/or award funding – Liabilities = Social enterprise equity

4 – Make a Mutually Beneficial Revenue Share or Allocation of Shares In order to encourage participation in knowledge transfer activities and to promote the recognition of valuable intellectual property produced by staff, most universities will have a policy for revenue sharing from licensing similar the one illustrated in figure 4 below.

For strictly commercial spin out companies (as the most common legal form for a new company is a company limited by shares) there is usually a discussion about the equity split and constitutional balance between the researchers, the HEI and external investors.

The differences between regular and social enterprises require HEIs to rethink their normal revenue distribution practices:

the community or the business the social entrepreneur may not want to participate in revenue sharing the HEI might be willing to minimise their share given other benefits that the social enterprise can attract (reputation, social impact, etc) value will not grow in the company for the ultimate benefit of shareholders on a business sale, but may be retained within the social enterprise for application towards its social purpose.

Insider’s Note Some HEI’s intellectual property policy will specify that if researchers receive shares in the spin out company, then they will forgo their right to benefit under revenue share to receive further income.

If the company takes a Community Interest Company (CIC) form, the profit distribution will be regulated and provisions will be included in its constitution or articles of association. Some HEIs might want become members of the new company but will not be expecting profit distribution while others might avoid becoming a member/ shareholder of a social enterprise as it is difficult to envision an exit.

a higher percentage of profits may need to be reinvested in Total Net Revenue (after legal and other costs)

Academic(s) Total

University General Fund

Department

Research Commercialisation Office

Total

To £xk

x%

x%

x%

x%

100%

Over £xk

x%

x%

x%

x%

100%

Figure 4 Illustration of revenue sharing from licensing for commercial enterprises

Formulating ‘in principle’ agreements with the HEI and external partners

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5 – Involve External Partners The social entrepreneur will need to bring any business partners and/or community on board at the very start of the process, including community partners, and they need to be included in the business plan.

How much partners get involved in the process depends on their relationship to the start-up and/ or the IP.

for the social enterprise when finalising agreements with the HEI. Your KTO may be able to suggest organisations who can provide advice to early stage ventures.

Key Questions: • Does the solicitor/financial advisor have experience in social benefit contracts?

• Does the solicitor/financial advisor have experience balancing social and financial considerations?

Key Questions: • Do partners own any of the IP? If yes, it is worth exploring social enterprise joint venture vehicles.

• Do partners wish to have operational involvement in the company, perhaps a directorship or shareholder status?

• Are partners stakeholders with no interest in the company, perhaps a defined ‘community’ or the recipients of a service the social entrepreneur wishes to provide?

• Does the social entrepreneur have supply partners? These are key business resources for the social entrepreneur. If so, how will they do business with the social entrepreneur? What are the risks?

6 – Obtain Professional Legal and Financial Assistance Once the discussions with the HEI have advanced to a level where the social entrepreneur has a good idea of the IP commercialisation plan, a draft business plan, and the social entrepreneur is ready to enter into contract with the HEI, the social entrepreneur needs to look at obtaining independent legal and financial advice and representation. The social entrepreneur will need advice and representation as well as

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7 – Discuss Company Constitution Issues A shareholders/members’ agreement, articles of association of the new company, and an agreement covering the full relationship between the HEI and the social enterprise are required.

The KTO will have templates for more commercial ventures (particularly for companies limited by shares) which can also be used, keeping in mind that social enterprises will require special considerations.

KTO templates will usually cover these areas: Legal organisational forms (pros and cons) and how they fit the social enterprise business model.

Shareholders/members of the new company Company directorate and responsibility for strategic management IP licenses Director service agreements Employment contracts Investment agreements

Part three: Business Plans and Agreements

Key Questions: • Who will the company members/shareholders be: the researchers, the HEI, investors and/or external organizations, employees, community organizations, or others?

• Who will be members of the Board of Directors/Trustees?

• Will the university (whether shareholder/member or not of the new company) have rights to appoint a director or observer to the board?

• Who will be Managing Director of the new company? (The managing director will run the company on a day to day basis and will be appointed by the board of directors) • Who will have voting rights and will there be provisions to veto over direction of the company (e.g. to protect investor interests)?

Insider’s Note Model articles from Community Interest Companies (CIC) can be obtained from the CIC Regulatorxxiv 8 – Identify Sources of Funding Check first what is directly available from the HEI to help the social enterprise in its early stages: for example ‘proof of concept’ funds, university challenges, and business competitions. Current funding resources can be found in the appendix. For support on contract particulars related to use of public funds, Social Enterprise UK provides more comprehensive assistance in their 2012 Social Value Guide.

3.3 Agreeing on the use of university intellectual property There are a few potential scenarios that the social entrepreneur may encounter when bargaining for the commercialisation of IP relevant to the social enterprise. These are briefly explained below and will need to be discussed in more detail with the KTO as well as

with a legal advisor advising the company which is seeking the license or assignment from the KTO. First it is important to understand what type of IP is involved. Universities normally grant rights to three different types of IP which may be sold or licensed:

Formal IP

Design, trademarks, patents, copyright, database rights

Subject Matter Expertise

Specialised information that assists the licencee/assignee in the use of the IP. This might include technical (e.g. a secret method or recipe, unpublished research findings) or non-technical information (exclusive marketing or business information). Some know-how might be protected by confidentiality agreements or by copyright laws.

Tangible Items

Materials that might be needed by the IP licencee/assignee in order to produce the service/product. These materials may not be available elsewhere and so a separate agreement relating to the transfer of these materials from the HEI to the licencee/assignee will be needed (For example, for a biobank).

Insiderâ&#x20AC;&#x2122;s Note Investors have argued in the past that spin outs need to own their IP in order to attract further investment but this is much less the case now. Some UK HEIs will prefer to license the IP because spin outs are high risk ventures and it makes it easier to recover the IP if the spin out company is not successful. Therefore, Scenario 1 below is more typical in IP agreements than Scenario 2. The cases in the final section highlight several possibilities of working with the KTO â&#x20AC;&#x2DC;from ideas to social enterpriseâ&#x20AC;&#x2122;.

Figure 5 University intellectual property asset typology

Next, it is important to know what particular information is necessary to close a deal where both parties are clear of their roles, their gains, and their risks, and agree in principle. Choose from the scenario that best fits the IP assets and business plan of the proposed social enterprise and then use the following scenarios to work through

the deal-making process. It is suggested that once the social entrepreneur determines the most likely scenario and prepares for it using the various tools in this guide, that the social entrepreneur practices answering the most salient questions found before Step One (i.e. Figure 3) above so that the answers are clear and concise.

Agreeing on the use of university intellectual property

27

The Process of Agreeing on IP

Scenario 1: The HEI owns the IP and wants to retain ownership, but is willing to offer the social enterprise a license to use it.

Provide the HEI with safeguards that the IP will be commercialised as agreed and if not, that they will have the opportunity to take back the IP

Agree on the financial terms for sharing the revenue from the IP with the HEI

Agreement is necessary on how long the license will last for (timeframe)

Discuss how the IP will be used and whether its use will be limited to specific markets and to specific companies/HEIs Discuss the terms of any IP or know-how that might be created during the time the agreement is in force but did not come about from activities relating to the IP that is actually in the agreement.

Scenario 2: The HEI owns the IP and agrees to assigning ownership to the social enterprise

Formulate a contingency plan for the IP in case the company goes out of business Agree on financial terms. This could involve the HEI having an equity stake in the company (if applicable) or, as one example, a license from the company to the HEI to use the IP in an area that the company doesnâ&#x20AC;&#x2122;t want to focus on.

The onus will be on the enterprise to commercialise the IP and to ensure that IP protection is maintained

HEI has no interest in the IP and does not want to be involved in helping to commercialise it Discuss the use of the IP and make a case for the commercial, financial and reputational advantages of the IP being owned by the social enterprise rather than the HEI Agree with the HEI to commercialise the IP in the best interests of both the social entrepreneur and the HEI in non-financial terms. The best outcome is usually where both parties are formally in agreement

Figure 6 Scenario-based strategies for agreeing on the IP for social enterprise

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Part three: Business Plans and Agreements

Key considerations for discussions are: Whether the IP is to be licensed or assigned to the social enterprise spin-out Whether the IP is to be licensed or assigned ‘free of charge’ or an upfront and/ or royalty payments need to be agreed.

Scenario 1: social entrepreneur is licensed to use the IP Prepare: 1. identify the IP with the asset typology above, and articulate its intended use and any alternative uses 2. identify the ‘customer base’ in the marketing plan 3. identify the pricing strategy in the marketing plan and set a ‘bottom line’ both for the revenue sharing and the licensing timeframe 4. think of any hidden costs that might emerge as well as hidden benefits 5. ensure there is a fullydeveloped Benefits and Risks plan

both parties are content with all of the terms

must be assured that the IP, and their reputation, will be protected

the contract is as specific as possible and understood by both parties

What mutually beneficial transfer price is most appropriate?

Close the deal:

Scenario 2: social entrepreneur is granted ownership of the IP Prepare: 1. identify the IP with the asset typology above, and articulate its intended use and any alternative uses 2. List the advantages of intellectual property owned by the social enterprise: Commercial? Financial?

Reputational?

Agree on terms: In what specific cases would the IP need to be returned to the university (e.g. business failure)?

The university should have a stake in proportion to their investment and risk. Who is taking what risks? Answering this question will help the social entrepreneur formulate specifics. The university

Make sure it is in writing that the university is not interested in commercialising this IP Close the deal: In what specific cases would the IP need to be returned to the university (e.g. business failure)?

The university should have a stake in proportion to their investment and risk. Who is taking what risks? Answering this question will help the social entrepreneur formulate specifics. The university must be assured that the IP, and their reputation, will be protected What mutually beneficial transfer price is most appropriate?

Make sure it is in writing that the university is not interested in commercialising this IP

Agree on terms: What safeguards will be in place so that the HEI can reclaim their property in case of a breach of contract?

What amount of revenue is reasonable for both parties? If this IP could be commercialised for-profit, then what additional benefits does the HEI receive from entering into a social enterprise venture?

What mutually beneficial license fee is most appropriate?

Copyright © UCL Media Services - University College London

Agreeing on the use of university intellectual property

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Part four:

Case Studies Impact The programme has already proved a success in preventing young people from starting smoking. It has been reviewed and recommended in guidance by the National Institute of Health and Clinical Excellence (NICE). The whole of Wales is currently rolling out ASSIST as well as 22 English PCTs and 2 of the Channel Islands. Since licensing began, over 38,000 students have been involved in the programme. During the last academic year alone, over 20,000 Year 8 students have taken part. This is likely to mean that in the region of 360-720 fewer 15-year old adolescents are regular smokers as a result of the Company and the associated knowledge translation and intervention implementation that it has enabled.

4.1 DECIPHer Impact: company limited by guarantee www.decipher.uk.net

Using knowledge to tackle significant issues DECIPHer Impact Ltd. is a joint spinout between the University of Bristol and Cardiff University.

The company is based on intellectual property generated

by Professor Laurence Moore from the School of Social Sciences, Cardiff University and Professor Rona Campbell from the University of Bristol during the successful ÂŁ1.5 million Medical Research Council (MRC) funded ASSIST (A Stop Smoking in Schools Trial) Study which took place in 59 schools across Western England and Wales. This successful programme works by identifying and training the most influential students in schools to meet the challenge of preventing the take-up of smoking among their friends and class mates.

Social value and business planning The development of this social enterprise opportunity was undertaken throughout as a joint effort between the University of Bristol, Cardiff University and the academics following the same rigorous process in place for more commercial spin-outs.

The objective of the project has always been to facilitate rollout of the programme as widely as possible. The team understood

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Part four: Case Studies

how valuable the application of this research could be for society.

If implemented nationally, the venture could cut the numbers of 14-15 year olds taking up smoking by over 40,000 each year. In order to deliver this benefit over the long term, the social enterprise also needed to achieve financial sustainability.

As a result, significant work was undertaken by the academics and both research commercialisation offices alongside external consultants, experienced in working with the NHS and in training provision, to assess if a viable business plan could be drafted. This process identified the current financial model, a 3-year licence granted to Primary Care Trusts (PCTs) to deliver the ASSIST training, which would allow company formation without capital injection. The academics were fully involved at all stages of the process while the commercialisation offices provided expertise and advisory input. As expected, it took significant time for all team members, research support and academics from both universities to develop a shared understanding of the needs of running a social enterprise and how the financial imperatives sit alongside the social drivers.

Company formation, revenue distribution and IP The programme’s requirement for effective quality control, marketing and close customer and financial management led to the decision to set up a company rather than try to run the programme directly from either university. The primary objective of the company was to maximise the translation and impact of evidence-based public health improvement research, specifically in the first instance to market, support and quality assure the ASSIST programme.

A number of business models were discussed pre-formation but the difficulty in finding start-up capital in addition to the academics’ preference for a not-for-profit model, strongly influenced the decision in relation to the adopted legal structure.

With no expectation of dividends or of the need for external capital, a company limited by guarantee was the obvious choice. The main objective of the company is a social one, supporting the implementation of evidence based health programmes, (the first of which is aimed at reducing the uptake of smoking amongst teenagers) rather than revenue generation.

Therefore, it was discussed and agreed that any surplus would be used to further develop the ASSIST product or new evidence based health/education products. The company was finally created in early 2010 when input from key customers that they were in a position to purchase a licence provided the financial means for the company to start trading. The universities assigned the trademark and licensed the know-how to the

company and consultancy agreements were put in place to account for the academics’ time. It was recognised from the beginning that this effort could only succeed with the right, experienced senior manager to both run the company and communicate the programme’s value to clients. This person joined the company at creation and has driven the uptake of ASSIST over the past 3 years. It was also recognised that, as the company grew, an independent non-executive director would add significant value; an experienced third sector professional, now the chairman, ensures that the company keeps the full social and financial balanced scoreboard through all its decisions. The creation of a company reinforced the advisory role of the academics, allowing them to continue their research full time while their innovative programme is rolled out widely.

Professor Rona Campbell from the University of Bristol

Professor Laurence Moore from Cardiff University

DECIPHer Impact: company limited by guarantee

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Impact An estimated 200,000 frontline staff have been trained by 533 STORM® Facilitators since 2003.

Charitable work has also been undertaken in Pakistan and Bangladesh. The following quote from the Republic of Ireland encapsulates Storm’s impact: ‘STORM® has fundamentally changed the way we approach suicide in Dublin 10…the fear of working with someone who may be suicidal has been replaced with a sense of security...The structure that STORM® provides has opened frontline workers up to recognising and addressing potential suicide’. And NHS Lanarkshire highlights the broad scope of activities offered by STORM®: ‘Staff reported the skills developed have had application not only in relation to clients at risk of suicide, but also to a much wider client group. [Storm] has also played a key role in other service developments such as treatment pathways, and a recently updated risk assessment tool.’

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Part four: Case Studies

4.2 STORM: community interest company limited by guarantee www.stormskillstraining.co.uk

Scaling up expertise to benefit large numbers With experience working in Mental Health and Primary Care services, STORM® Directors Doctor Gill Green and Professor Linda Gask understand the need for staff to be equipped with the skills to ask the difficult questions related to suicide and self-harm.

The STORM® training packages for health and social care staff were developed in the mid1990’s. It became increasingly clear that all frontline staff could benefit from similar training, so in 2003 the STORM® Project was created at the University of Manchester to disseminate the training more widely.

Business Model STORM® provides evidence based suicide prevention and self-harm mitigation training packages for frontline staff across healthcare, social care, education, criminal justice and military services across all sectors, and to Occupational Health and staff with responsibility for mental health and wellbeing in companies.

STORM® offers variations of ‘Self-Harm Mitigation’ training to appeal to different customers.

A complete package includes comprehensive preventions of self-harm, self-injury, and suicide whereas a condensed package might concentrate solely on preventing suicide. There are also two delivery methods to reach as many customers as possible, and a consultancy

service. Surplus income is invested back into the company to fund social impact work and further research undertaken by the STORM® Project at the University of Manchester. As a result of the financial success of this venture a CIC (Limited

by Guarantee) legal form was incorporated. Customers include a number of statutory and nonstatutory health and social care organisations, private healthcare providers, charities, universities, and professional associations across the UK, Channel Islands, Republic of Ireland, Malta and Australia.

IP and incorporation The social enterprise is a direct result of the research undertaken to develop the training package.

The IP is protected by licence agreement and is copyrighted through a registered trademark.

STORM® customers enter an agreement with the University of Manchester which continues to be managed by UMIP. The Directto-Participant training organized for independent individuals and smaller organizations is protected by agreed Terms & Conditions between UMIP and STORM®. The University does not have a stake in the company but a royalty fee is paid to UMIP for any packages/ training sold. University of Manchester Intellectual Property Ltd (UMIP) has supported STORM® since 2003 by providing venture management, public relations and IP legal support. UMIP has also been a key support in the start-up of the CIC. STORM® has also benefited

from several grants and awards including a Unltd Level 2 Award (ÂŁ15,000 plus mentorship and pro bono legal and HR support), Unltd/HEFCE Outstanding Social Entrepreneur in Higher Education award, and selected to participate in the 10,000 small business programme, North West funded by the Goldman Sachs Foundation and delivered

by Manchester Metropolitan Business School.

STORM: community interest company limited by guarantee

33

Impact Since its creation, MfC has worked with 25 communities across the world and assisted more than 1,100 beneficiaries through projects such as reducing the negative environmental impact of a local scrap yard in Deptford, developing Green routes in London and changing buses in Putney. The social enterprise has also created 10 volunteering and intern opportunities for students. Professor Muki Haklay and Louise Francis, founders of Mapping for Change, received a Higher Education Social Entrepreneurship Award from UnLtd, the Foundation for Social Entrepreneurs and HEFCE. Under the umbrella of UCL Enterprise and the leadership of the VP Enterprise who included the creation of social enterprises in the 2011-15 strategy, UCL Business became the first Technology Transfer office in the UK to employ a business manager solely dedicated to identify and support social enterprise opportunities across UCL departments.

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Part four: Case Studies

4.3 Mapping For Change: community interest company limited by shares www.mappingforchange.org.uk

Creating new knowledge with the community Professor Muki Haklay from the UCL department of Civil, Environmental & Geomatic Engineering and co-founder of Mapping for Change (MfC) and his colleagues offer expertise and innovative participatory mapping tools that empower communities to take ownership of the changes they want to make in their localities. Communities are invited to take an active role by collecting data, for instance for the benefit of town planning or reduction of pollution, and mapping this information to show key areas where change is needed.

IP and incorporation The idea for Mapping for Change was based on participatory mapping and citizen science research from 1998 to 2008 at UCL. The IP is in the form of trademark and know-how of the processes involved. UCL initially supported the venture by providing space for the company, some funding and time for Prof Haklay to develop the venture.

Later on, UCL Business Plc, UCL’s technology transfer office, provided MfC with corporate structuring, contractual and Intellectual Property advice.

Mapping for Change was initially set up as a limited company.

However, the founders observed that this legal form made it difficult for the venture to be recognised as a social enterprise.

Therefore, in 2012 Mapping for

Change was converted into a Community Interest Company Limited by Shares to protect the social mission but also allow potential investment in the future.

UCL became a shareholder of the new company and appointed a director to the MfC board. Profits are currently being reinvested in the company.

The social entrepreneur’s journey According to Prof Haklay “There is nothing like setting a social enterprise to enrich your research knowledge and see how it can impact the world at large. I would advise academics to talk with their Knowledge Transfer Office as soon as possible about their social enterprise idea and try to make the venture part of the university. It is important to learn the best way to introduce the idea of a social enterprise and it will take time to get all the agreements in place. UCL has been supportive of establishing Mapping for Change CIC and it is one of the examples where research can lead to real impact on communities and places.”

Prof. Muki Haklay (UCL) and co-founder of Mapping for Change

4.4 Contraception Education: limited company converted into a community interest company www.contraceptioneducation.co.uk

Transforming passion and expertise into educational opportunity Barbara Hastings-Asatourian founded Contraception Education in 2001 while she was a senior lecturer in Public Health at Salford University’s School of Nursing, Midwifery and Health. The company was initially established as a company limited by shares for the purpose of disseminating the ‘Contraception the Board Game’ and to pursue the social mission of improving young people’s knowledge of sexual health, safe sex and relationships and reducing unwanted pregnancies.

The company is now a social enterprise that develops and produces sex education materials and resources that are used to educate young people in the UK and internationally.

Barbara is now a full-time social entrepreneur who, in addition to her passion for healthcare and education, has a great interest in entrepreneurship and mentors budding entrepreneurs. She is a volunteer for the Princes Trust and is associated with their Enterprise Programme and the ‘Explore Enterprise’ course which supports young prospective entrepreneurs.

IP and incorporation The company was set up with assistance from Salford University’s then equivalent to a KTO. The business enterprise unit at the University encouraged her

to set up a limited company, to prepare business plan and helped her to manage the IP protection that was available to her. The university provided Barbara with legal, IP and mentoring support for approximately two years. Initially there were a number of challenges involved in the transition from academic to social entrepreneur. For example, Barbara had previously discussed her ideas with others without having confidentiality agreements in place. She eventually was able to protect some of her ideas via copyright and registered design. She also mentions the importance of academics to pay attention to personal tax liability because this can be a bitter surprise later in the process.

Commerce, Barbara attended a course about social enterprise and how to set one up. She had already ruled out forming charity as it seemed too restrictive. The course prompted the decision in 2009 to convert her company to a CIC as this seemed to fit better with her mission. The transition from a company limited by shares to a CIC was done with support from Business Support Solutions and a small grant to fund this changeover. Salford University were also involved in this process as the University previously owned a stake in the company – Barbara needed their permission to convert the company to CIC – and they were supportive and provided publicity.

Finding an ethical business model Although the University offered support, Barbara did not feel comfortable with the ethics of running a limited company, mainly because this business model is purely profit-driven and did not acknowledge the social impact side of the company, which was what Barbara was most interested in. Much later, she decided on her own that there needed to be a change to her business model. Barbara investigated a number of options, including becoming a charity, by discussing the matter with various people in her network

Barbara Hastings-Asatourian Managing Director of Contraception Education

Through her membership of the Manchester Chamber of

Contraception Education: limited company converted into a community interest company

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Appendix A:

Model Agreements A.1 Model Document 1 – Licence of Copyright

conditions of use in Schedule 2; any further reasonable written instructions of the University;

Note

‘SE Business Plan’: the business plan of the Social Enterprise, including the proposed use of the Work for the SE Purposes;

This model document is provided, for cross-referencing with the guide and to highlight the principal issues which will need consideration in relation to a Licence of Copyright granted by a University to a Social Enterprise. It is not to be regarded, or relied upon, as comprehensive, or any substitute for appropriate legal advice. In particular, the Conditions of Use and Payment Schedules will require detailed drafting, incorporating, as appropriate to the circumstances, a range of normal commercial and practical matters which are not detailed in the main text below, including standard, more specific, intellectual property protection provisions with which a Knowledge Transfer Office will be familiar. This model document was prepared by Bates, Wells and Braithwaite, Ref: JB/211647 (2-6 Cannon Street, London, EC4M 6YH; 0207 551 7777; mail@bwbllp.com).

Date: Between: (1) [Name] Principal Address: [ (‘University’);

]

(2) [Name] Registered Office: [

36

];

Appendix A: Model Agreements

Company Registration Number: [ ]; [Charity Registration Number]: [ ]; (‘Social Enterprise’);

Background: (A) The University, through the engagement of one or more SE Participants, has created the Work.

(B) The SE Participants have promoted the establishment of the Social Enterprise and presented the SE Business Plan to the University and the University agrees to grant this licence to use Copyright in the Work in promoting the SE Purposes.

Agreed terms and conditions: 1. Interpretation The following definitions apply in this Agreement.

‘Copyright’: all copyright and rights in the nature of copyright subsisting in the Work worldwide to which the University is/ becomes entitled; ‘Conditions of Use’: i) the University’s written general conditions for the use by social enterprises of its intellectual property rights, specifically those relating to copyright; ii) subject to/supplemented by specific

‘SE Participants’: personnel and/ or students of the University who are involved in the Social Enterprise; ‘SE Purposes’: specified purposes for which the Work is proposed to be used by the Social Enterprise, within its public benefit objects; ‘Work’: the work specified in Schedule 1; ‘Work Material’: any material including/derived from, the Work, to be used for the SE Purposes; ‘Work Material Net Price’: the net invoiced price of any Work Material, exclusive of VAT or any similar tax.

2.

Grant of Licence

2.1 The University hereby grants to the Social Enterprise a licence of the Copyright to use for the SE Purposes in accordance with the Conditions of Use, including in producing, promoting and selling/ transferring Work Materials; 2.2 For the duration of the Licence, the University

undertakes not to [itself exercise nor] grant any licence permitting any third party to exercise the rights granted to the Social Enterprise under Clause 2.1.

2.3 Use of the Work and Work Material may be in connection with any trademarks of the Social Enterprise.

3. Social Enterprise and Commercial Use

The Social Enterprise shall use its best endeavours to use the Copyright to promote the SE Purposes directly and subject to Schedule 2 or use the Copyright for further commercial benefit.

4. Copyright notice and acknowledgement 4.1 The Social Enterprise shall procure that all published and sold/transferred Work Material shall be marked with a notice in reasonably prominent form as follows © Copyright [University Name] [Year of creation] licensed to [Social Enterprise Name] 4.2 The Social Enterprise shall procure that all published and sold/transferred Work Material shall contain any further acknowledgement specified in Schedule 2.

5. Information and co-operation 5.1 Each party shall promptly keep the other informed in relation to all communications, relating to the Copyright or Work Material, with any authority, or any complainant and in relation to any actual, or potential, breach

5.2 The parties shall reasonably co-operate in response to all such communications, complaints and actual, or potential, breaches.

keep proper records and books of account showing the proper basis of royalty calculation and the activity giving rise to royalty payment obligations. Protection of the Copyright

6.

8. Sub-licensing

of the Copyright.

Confidentiality

Each party shall keep secret and confidential any information of a confidential nature communicated to it by the other, either preparatory to, or as a result of, this Agreement, for as long as such information is confidential.

7. Royalties 7.1 The Social Enterprise shall pay to the University royalties for use of the Copyright as specified in Schedule 3 (if applicable): 7.1.1 in promoting its SE Purposes; 7.1.2 in obtaining further commercial benefit.

7.2 Subject to Schedule 3, such royalties may (as applicable) be based on percentages of Work Material Net Price on actual sales by the Social Enterprise (or any sub-licensee).

7.3 Payment shall be made in accordance with payment provisions set out in Schedule 3.

Subject to Schedule 3, royalties shall be payable, for each preceding quarter, within 30 days of the issue of an applicable royalty statement and the required invoice, to the end of each 1st January, April, July and October.

7.4 The Social Enterprise shall

8.1 The Social Enterprise shall have the right to grant to any person a sub-licence of any of its rights under this Agreement in relation to its SE Purposes.

8.2 The Social Enterprise shall obtain the prior written consent of the University (not to be unreasonably withheld, or delayed), in relation to any further commercial use.

8.3 The Social Enterprise shall be liable for all acts and omissions of any sub-contractor and shall indemnify the University against all loss or damage incurred the University, as a result of such sub-contractor action or omission.

9. Assignment/disposal The Social Enterprise shall not, without the prior written consent of the University (not to be unreasonably withheld or delayed), assign, charge or otherwise dispose of any of its rights or obligations under this Agreement.

10. Duration and termination 10.1 This Agreement shall come into force on the Date in its heading.

10.2 Each party may terminate this Agreement on at least six months’ written notice to the other.

A.1 Model Document 1 – Licence of Copyright

37

10.3 The University may terminate this agreement with immediate effect by giving written notice to the Social Enterprise if: 10.3.1 the Social Enterprise fails to pay any amount due under this Agreement on the due date for payment and remains in default not less than fourteen days after being formally notified in writing to make such payment; 10.3.2 the Social Enterprise commits a material breach of this Agreement (other than failure to pay any amounts due under this Agreement) and (if such breach is remediable) fails to remedy that breach within fourteen days of being formally notified in writing to do so;

11. Variation No variation of this Agreement shall be effective unless it is in writing and signed on behalf of both parties.

12. Notice Any written notice required under this Agreement shall be shall be delivered personally, or sent by pre-paid firstclass recorded delivery, or by commercial courier, or by email to an email address established for formal communication between the parties.

13.

No third party has any rights under this Agreement.

14.

10.3.3 the Social Enterprise suspends, or threatens to suspend, its business, or any substantial part of it; proposes any compromise, or arrangement, with its creditors; or is subject to any proper enforcement action by any creditor, or any corporate action by its members, in respect of unpaid debt.

10.3.4 there is a change of control of the Social Enterprise.

Third Party Rights

Dispute Resolution

14.1 Either party may raise an issue between the parties as a formal dispute.

14.2 The parties will then use reasonable endeavours to resolve the dispute through nominated representatives within thirty days.

14.3 If a dispute is not resolved under Clause 14.2, it may be referred by either party to be resolved by two more senior nominated representatives within thirty days.

10.4 Entire agreement This Agreement constitutes the entire agreement between the parties and supersedes all previous agreements between the parties relating to its subject matter.

38

Appendix A: Model Agreements

14.4 If the dispute is not resolved under Clause 14.3, it may be referred by either party to be resolved through reference to the mediation service of the Centre for Effective Dispute Resolution (www.cedr.com).

Schedule 1 - the Work [ ] Schedule 2 - Conditions of Use [ ] Schedule 3 - Royalties [ ] Signed by the Parties on the Date in the heading to this Agreement:

Signature: On behalf of the University

Name: Position: Signature: On behalf of the Social Enterprise

Name: Position:

A.2 Model Document 2 – Licence of Patents/Know-how Rights Note

Background:

This model document is provided for cross-referencing with the guide and to highlight the principal issues which will need consideration in relation to a Licence of Patent Know-how Rights granted by a University to a Social Enterprise. It is not to be regarded, or relied upon, as comprehensive, or any substitute for appropriate legal advice. In particular, the Conditions of Use and Payment Schedules will require detailed drafting, incorporating, as appropriate to the circumstances, a range of normal commercial and practical matters which are not detailed in the main text below, including standard, more specific, intellectual property protection provisions with which a Knowledge Transfer Office will be familiar. This model document was prepared by Bates, Wells and Braithwaite, Ref: JB/211647 (2-6 Cannon Street, London, EC4M 6YH; 0207 551 7777; mail@bwbllp.com).

(A) The University, through the engagement of one or more SE Participants, has secured the Patents/Know-how rights.

Date: Between: (1) [Name] Principal Address: [ (‘University’);

]

(2) [Name] Registered Office: [

];

Company Registration Number: [ ]; [Charity Registration Number]: [ ]; (‘Social Enterprise’);

(B) The SE Participants have promoted the establishment of the Social Enterprise and presented the SE Business Plan to the University and the University agrees to grant this licence of Patents/know-how Rights to the Social Enterprise to use in promoting the SE Purposes.

‘SE Participants’: personnel and/ or students of the University who are involved in the Social Enterprise; ‘SE Purposes’: specified purposes for which the Patents/Know-how Rights are proposed to be used by the Social Enterprise, within its public benefit objects; ‘Patents/Know-how Material’: any material including/derived from, the Patents/Know-how, to be used for the SE Purposes; ‘Patents/Know-how Material Net Price’: the net invoiced price of any Patents/Know-how Material, exclusive of VAT or any similar tax.

Agreed terms and conditions: 1. Interpretation

2.

The following definitions apply in this Agreement.

2.1 The University hereby grants to the Social Enterprise a licence of the Patent/Knowhow Rights to use for the SE Purposes in accordance with the Conditions of Use, including in producing, promoting and selling/transferring Patents/ Know-how Materials;

‘Conditions of Use’: i) the University’s written general conditions for the use by social enterprises of its intellectual property rights, specifically those relating to patents and knowhow; ii) subject to/supplemented by specific conditions of use in Schedule 2; any further reasonable written instructions of the University; ‘Patents/Know-how and Patents/ Know-how Rights’: the specified rights under the specified patents (including patent applications) and/or in respect of know-how specified in Schedule 1; ‘SE Business Plan’: the business plan of the Social Enterprise, including the proposed use of the Patents/Know-how Rights for the SE Purposes;

Grant of Licence

2.2 For the duration of the Licence, the University undertakes not to [itself exercise nor] grant any licence permitting any third party to exercise the rights granted to the Social Enterprise under Clause 2.1.

2.3 Use of the Patents/ Know-how Rights and Patents/ Know-how Material may be in connection with any trademarks of the Social Enterprise.

A.2 Model Document 2 – Licence of Patents/Know-how Rights

39

3. Social Enterprise and Commercial Use The Social Enterprise shall use its best endeavours to use the Patent/Know-how Rights to promote the SE Purposes directly and subject to Schedule 2 to use the Patent/Know-how Rights for further commercial benefit.

4. Patent/Know-how Rights notice, registration and acknowledgement 4.1 The Social Enterprise shall procure that all required patent user registrations in respect of the Patent/Know-how Rights are secured and that all distributed and sold/transferred Patent/ Know-how Material shall be marked with the relevant patent numbers in reasonably prominent form.

4.2 The Social Enterprise shall procure that all distributed, published and sold/transferred Patents/Know-how Material shall contain any further acknowledgement specified in Schedule 2.

5. Information and cooperation 5.1 Each party shall promptly keep the other informed in relation to all communications, relating to the Patents/Knowhow Rights, with any authority, or any complainant and in relation to any actual, or potential, breach of the Patents/Know-how Rights.

5.2 The parties shall reasonably co-operate in response to all such communications, complaints and actual, or potential, breaches.

6.

Confidentiality

Each party shall keep secret and confidential any information of a confidential nature communicated to it by the other, either preparatory to, or as a result of, this Agreement, for as long as such information is confidential.

7. Royalties 7.1 The Social Enterprise shall pay to the University royalties for use of the Patent/Know how Rights as specified in Schedule 3 (if applicable): 7.1.1 in promoting its SE Purposes; 7.1.2 in obtaining further commercial benefit.

7.2 Subject to Schedule 3, such royalties may (as applicable) be based on percentages of Patents/Know-how Material Net Price on actual sales by the Social Enterprise (or any sub-licensee).

7.3 Payment shall be made in accordance with payment provisions set out in Schedule 3.

Subject to Schedule 3, royalties shall be payable, for each preceding quarter, within 30 days of the issue of an applicable royalty statement and the required invoice, to the end of each 1st January, April, July and October.

7.4 The Social Enterprise shall keep proper records and books of account showing the proper basis of royalty calculation and the activity giving rise to royalty payment obligations.

8. Sub-licensing 8.1 The Social Enterprise shall have the right to grant to any person a sub-licence of any of its rights under this Agreement in relation to its SE Purposes.

8.2 The Social Enterprise shall obtain the prior written consent of the University (not to be unreasonably withheld, or delayed), in relation to any further commercial use.

8.3 The Social Enterprise shall be liable for all acts and omissions of any sub-contractor and shall indemnify the University against all loss or damage incurred by the University, as a result of such sub-contractor action or omission.

9. Assignment/disposal The Social Enterprise shall not, without the prior written consent of the University, (not to be unreasonably withheld or delayed), assign, charge or otherwise dispose of any of its rights or obligations under this Agreement.

10. Duration and termination 10.1 This Agreement shall come into force on the Date in its heading.

10.2 Each party may terminate this Agreement on at least six monthsâ&#x20AC;&#x2122; written notice to the other.

10.3 The University may terminate this Agreement with immediate effect by giving written notice to the Social Enterprise if: 10.3.1 the Social Enterprise fails to

40

Appendix A: Model Agreements

pay any amount due under this Agreement on the due date for payment and remains in default not less than fourteen days after being formally notified in writing to make such payment; 10.3.2 the Social Enterprise commits any other material breach of this Agreement and (if such breach is remediable) fails to remedy that breach within fourteen days of being formally notified in writing to do so; 10.3.3 the Social Enterprise suspends, or threatens to suspend, its business, or any substantial part of it; proposes any compromise, or arrangement, to its creditors; or is subject to any proper enforcement action by any creditor, or any corporate action by its members, in respect of unpaid debt.

10.3.4 there is a change of control of the Social Enterprise.

10.4 Entire agreement This Agreement constitutes the entire agreement between the parties and supersedes all previous agreements between the parties relating to its subject matter.

11. Variation No variation of this Agreement shall be effective unless it is in writing and signed on behalf of both parties.

12. Notice Any written notice required under this Agreement shall be shall be delivered personally, or sent by pre-paid first-

class recorded delivery, or by commercial courier, or by email to an email address established for formal communication between the parties.

13.

Third Party Rights

No third party has any rights under this Agreement.

14.

Position:

Signature: On behalf of the Social Enterprise

Name: Position:

Dispute Resolution

14.1 Either party may raise an issue between the parties as a formal dispute.

14.2 The parties will then use reasonable endeavours to resolve the dispute through nominated representatives within thirty days.

14.3 If a dispute is not resolved under Clause 14.2, it may be referred by either party to be resolved by two more senior nominated representatives within 30 days.

14.4 If the dispute is not resolved under Clause 14.3, it may be referred by either party to be resolved through reference to the mediation service of the Centre for Effective Dispute Resolution (www.cedr.com).

Schedule 1 - Patents/Knowhow and Patent Know-how Rights [ ] Schedule 2 - Conditions of Use [ ] Schedule 3 - Royalties [ ] Signed by the Parties on the Date in the heading to this Agreement:

Signature: On behalf of the University

Name:

A.2 Model Document 2 â&#x20AC;&#x201C; Licence of Patents/Know-how Rights

41

A.3 Model Document 3 – Checklist of considerations for University participation in Social Enterprise utilising University generated intellectual property Note This document is provided, for cross-referencing with the guide and to highlight the principal issues which will need consideration in relation to University participation in a Social Enterprise. It is not to be regarded, or relied upon, as comprehensive, or any substitute for appropriate legal advice.

This checklist of considerations was prepared by Julian Blake at Bates, Wells and Braithwaite, Ref: JB/211647 (2-6 Cannon Street, London, EC4M 6YH; 0207 551 7777; mail@bwbllp.com) 1.

University policy on such investment 1.1 Is the working assumption that an approved Project is one the University wishes to continue to support, including potentially through investment, or is Project approval distinct from further identification of a Project in which the University has a potential investment interest?

1.2 What are the investment criteria for a social investment by the University and the balance between social and financial considerations?

1.3 What are the distinctions in approach between an investment the University could undertake as: 1.3.1 promoting its educational

42

Appendix A: Model Agreements

3.3 Business Plan: including Project purpose; market and risk assessment; budget; startup and working capital; delivery infrastructure; implementation plan, human and material resources, development opportunity, plan and prospects.

charitable objects; 1.3.2 promoting wider public authority public benefit purposes; 1.3.3 a financial investment; 1.3.4 a combination of these 1.4 Would the University or an associated company invest?

2. Project investment need and proposition 2.1 Is investment from the University necessary, desirable, or one among other options from the Project’s perspective?

2.2 What is the investment proposition made to, or by, the University – type of investment (equity/debt); size of investment; ranking of investment; return entitlement/expectations/ prospects?

2.3 Who are the co-investors and other participants in the Project?

3.

Due diligence

3.1 What level of due diligence is required to consider potential benefits/risks as investor (beyond level of scrutiny required to approve a Project without investment risk).

3.2 Independent evidence of product/service potential.

4. Investment/Project participants Agreement 4.1 Between University and Project company and coinvestors.

4.2 Incorporation of Business Plan.

4.3 Conditions of investment (derived from business assumptions; due diligence conclusions; representations about the Project).

4.4 Other support/contributions from the University – premises, staff, equipment, intellectual property, administrative services, components of product/service etc and terms and conditions of supply.

4.5 Support/contributions of other participants.

4.6 Duration of agreement: participant commitment; process for one member exit/removal; process for new participants; end of project and consequences.

4.7 Investor protection safeguards: 4.7.1 role in appointment of Project board (nomination, election with other participants) and Project sub-committees; 4.7.2 reserved business matters

requiring investor consent, or consultation - major changes to Business Plan, or Project strategy; 4.7.3 procedures for: liaison; variation; review; new investment; disagreement, /dispute resolution, donation of profit; distribution of profit; winding-up.

5. Project constitutional structure/Articles of Association of Project Company 5.1 Structure: i) commercial Company Limited by Shares; ii) social enterprise - Community Interest Company; iii) charitable/ non-profit distributing Company Limited by Guarantee; iv) public benefit with co-operative structure â&#x20AC;&#x201C; Community Benefit Society; v) member benefit Cooperative; partnership â&#x20AC;&#x201C; Limited Liability Partnership.

5.2 Shareholder/membership provisions reflecting Investment Agreement provisions.

5.3 Composition of Board reflecting Investment Agreement provisions and further provisions to ensure appropriate balance of skills and experience.

5.4 Corporate policies and procedures reflecting Investment Agreement provisions.

5.5 Operational policies and procedures reflecting provisions of Business Plan.

A.3 Model Document 3

43

Appendix B:

Pros and cons of common legal forms in the social enterprise sectorxxv Non-Charitable Company Limited by Guarantee Company Limited by Guarantee is the most popular form of incorporation for organisa-tions in the sector.

The governing body in this mode is called a ‘Board of Directors’.

‘Limited by guarantee’ means that each member’s liability for the company’s debts is limited to an amount written in the govern-ing instrument: often as little as £1 each (a technical mechanism replacing the equity share, still establishing a corporate limited li-ability structure).

The organisation has a separate legal identity and can be liable separately from its mem-bers and directors, reducing the risk for members and directors. However, directors can still be liable for negligence and/or fraud.

In return for limited liability the company must register its incorporation with Companies House and regularly provide them with certain information: – Annual accounts, annual return – Notice of change of directors or secretaries and their particulars – Notice of change of registered office Companies can be

44

incorporated with a single member Pros Directors can be paid.

Cons May be difficult to raise philanthropic donations/ grant aid.

Unlike a CIC, assets are not protected by an invioble asset lock.

Community Interest Company (CIC) CICs can be companies limited by guarantee or by shares. They can adopt the co-operative, not-for-profit or general commercial company model.

There are obligations that a CIC has to meet and continue to meet in addition to those imposed on an ordinary company: – Must satisfy a community interest test (looks at the underlying motivation of the company in terms of what it will do, who it will help and how, if it makes a profit, or surplus, what the company will do with it).

– Must adapt certain statutory clauses in its constitution (asset lock and preventing the CIC from falling under control of non-members).

– Must deliver an annual community interest company

report with its accounts.

A CIC limited by shares may pay dividends, if agreed by a resolution of its members but dividends payable to private shareholders (non-asset locked bodies) will be subject to a dividend cap. AT least 70% of profits are retained for the CIC’s social purposes.

Pros Distinct brand for social enterprises with the share version a vehicle for social equity investment.

Flexibility of constitutional structure Combines freedom of entrepreneurial activity with protection of invioble ‘asset lock’.

Directors can be paid.

Light touch CIC regulator (in addition to company regulation).

Cons Less opportunity for philanthropic donations/ grant aid than a charity.

Cap on dividends (‘asset lock’) could depress interest from Investors.

Corporate Registered Charity (charitable company limited with guarantee) A public benefit, non-profit distributing organisation with exclusively charitable purposes is a charity and entitled to

Appendix B: Pros and cons of common legal forms in the social enterprise sector

and obliged to register as with the Charity Commission.

Most charities in corporate form are companies limited by guarantee.

The activities of a registered charity must fall into one or more of 12 pre-defined charitable objects which are for the public benefit. A charity may trade in direct pursuit of its charitable objects (with a De minimis allowance for non-charitable trading).

A charity is governed by a board of trustees, who are accountable for the charity operating reasonably and prudently in pursuit of its charitable objects. The general rule is that trustees do not benefit from their charity and so are not paid (however there can be exceptions in the best interests of the charity)., Charities have tax benefits because they are for the public benefit. They are exempt from corporation tax, capital gains tax, stamp duty on property transfers and income from letting excess space. They are entitled to 80% mandatory business rates relief on property they occupy for their charitable purposes. Thet can receive donations from individual tax-payers through gift aid, grossing-up net of tax donations in the hands of the charity; and corporate gift aid donations are tax deductible.

Pros Much greater potential eligibility for funding from public authorities, charitable grant-makers; the public; and companies.

Tax exemptions and reliefs.

A non-charitable trading subsidiary may donate its profits to the charity by corporate gift-aid, reducing its tax to zero the donation being received tax free by the charity.

Cons More active (but generally benign) regulation by Charity Commission in addition to regulation as a company.

More responsibility for people involved as they become charity trustees. Charitable law prohibits payment to trustees for trusteeship (subject to exceptions) requiring a nonexecutive board.

Trading not in pursuit of its charitable objects would have to be undertaken by a noncharitable trading subsidiary with a commercial relationship to the charity. The subsidiary may donate its profits to the charity by gift-aid.

Company Limited by Shares ost frequently adopted M corporate legal structure.

The governing body is called a ‘Board of Directors’.

There is no limit on dividends that can be paid to shareholders.

Shareholders’ liability for the company’s debts is limited to the amount of their equity investment.

Pros Not subject to regulatory requirements of a charity or CIC. Good investment model – ability to pay dividends may make it easier to attract

private investors.

Shares option can make recruiting experiences management easier to achieve.

Cons Potential conflicts of interest between the social purpose and broader shareholder constituency.

Potential conflicts between the social enterprise mission and interest of shareholders.

Industrial and Provident Society ssentially these are coE operatives, run and owned by their members, but which may operate for the benefit of the community in addition to benefiting the members. An IPS can own property, enter into contracts, issue shares and take out loans. It has to be registered with and regulated by the Financial Services Authority (FSA). The aims of the society and the way it is run must comply with certain conditions in order for the FSA to accept and maintain the registration.

An IPS must have at least three members.

Pros Good for promoting democratice ownership and control through co-operative structures Has a separate legal identity from its members.

Can own property or enter into contracts in its own right.

Cons Less fit for purpose for organisations with hierarchical structures.

45

Appendix C:

Considerations for discussion Permissions

Outcome 1, scenario 1

Outcome 2, scenario 1

Commercial value Social Enterprise to exploit the IP.

low commercial value

HEI maintains ownership Royalty paid to the HEI or value transfers

No commercial value Social Enterprise to exploit the IP. HEI maintains ownership and licenses the IP to the social enterprise No Royalty, but may need to buy a license/ pay one off payment

Partners – other universities, charities, community groups, funding councils, etc xxvi

Outcome 3, scenario 2 and 3

Social Enterprise to exploit the IP. HEI relinquishes ownership HEI assigns the IP without requesting payment

Joint IP ownership

Joint IP ownership:

Partner IP ownership:

Negotiate exploiting the IP in partnership with the HEI.

Negotiate exploiting the IP in partnership with the HEI.

Negotiate exploiting the IP.

No IP ownership

No IP ownership:

Negotiate contractual relationship

Negotiate contractual relationship with HEI, and Social Enterprise.

Negotiate contractual relationship with HEI, and Social Enterprise.

No IP ownership:

Dept./School/Faculty

• Permission to Start-up as per business proposal • Use of Resources • Transfer/use of Assets

HR

• Staff secondments • Staff time split between employment with HEI, and SE

Finance

• Funding arrangements. Insider’s Note: Transfer as operating service generally raises commercial transfer of business issues.

Estate

• If remaining within the HEI (Scenario 1): • Space rental • IT support • Postage • Telephone • Equipment/furniture

Table 8 Permissions and outcomes regarding commercial value of IP

46

Appendix C: Considerations for discussion

Appendix D:

Links to further UK and worldwide resources Grants UnLtd www.unltd.org.uk

The Social Enterprise Loan Fund www.tself.org.uk

Big Lottery Fund www.biglotteryfund.org.uk

Big Issue Invest www.bigissueinvest.co.uk

Esmee Fairbairn Foundation www.esmeefairbairn.org.uk

The Social Investment Business www.sibgroup.org.uk

Comic Relief www.comicrelief.com

Various local and regional community lenders CDFIâ&#x20AC;&#x2122;s can be accessed via Community Development Finance Association www.cdfa.org.uk

www.governmentfunding.org.uk www.trustfunding.org.uk www.governmentfunding.org.uk

Social Investment Business www.sibgroup.org.uk

www.grantsonline.org.uk

Venturesome www.cafonline.org

Advice about funding for business www.J4b.co.uk

The Big Issue Invest www.bigissueinvest.co.uk Triodos Bank www.triodos.co.uk

Funding Central - access to thousands of funding and finance opportunities, plus a wealth of tools and resources www.fundingcentral.org.uk

Nesta www.nesta.org.uk/investments Bridges Community Ventures www.bridgesventures.com

www.grantfinder.co.uk

Other Guides on Social Enterprise

www.grantsnet.org.uk

Evill, S., Howells G. and Zalamea F.2012. The ClearlySo Guide for the Ambitious Social Entrepreneur www.clearlyso.com/socialenterprises/how-to/ambitioussocial-entrepreneur.html

Social Investment Unity Trust Bank www.unity.co.uk Triodos Bank www.triodos.co.uk The Co-Operative Bank www.co-operativebank.co.uk

Frost, C. 2009. Creating social

enterprises: a guide to social enterprise for university Staff.

Cambridge & Chelmsford: Anglia Ruskin University www.praxisunico.org.uk/news/ detail.asp?ItemID=343 HEFCE, UnLtd, Simpacta, Red Ochre.2010 Social Entrepreneurship Toolkit A comprehensive guide to developing a social enterprise, developed as part of the UnLtdHEFCE Higher Education Social Entrepreneurship Awards programme. www.unltd.org.uk/ socialentrepreneurshiptoolkit Nesta and UnLtd. 2012 Rooted: Growing your own social venture.

A practical guide to getting started with your own social venture. www.unltd.org.uk/rooted-guide Universities UK. 2012 Universities enabling social enterprise www.universitiesuk.ac.uk/ Publications/Documents/ versitiesEnablingSocialEnterprise. pdf

Legal Resources Bates, Wells and Braithwaite and Social Enterprise UK. 2005.

Keeping it Legal www.sel.org.uk/uploads/ Keeping-it-Legal.pdf CIC Regulator. Guidance materials and model articles for

47

Community Interest Companies. www.bis.gov.uk/cicregulator

www.4lenses.org/setypology/ prolog

ESRC funds research and training in social and economic issues.

Praxis Unico Practical Guides – A selection of useful guides to promote best practice available to those working within research commercialization. www.praxisunico.org.uk/ resources/practical-guides.asp

Organisations that support social entrepreneurs

National Council for Voluntary Organisations NCVO www. ncvo-vol.org.uk/advice-support/ funding-finance/sustainablefunding/publications Provide useful introductory guides for groups interested in social enterprises.

Governance advice The National Council for Voluntary Organisations published a very practical document called: For Love and Money: Governance and Social Enterprise back in 2007, but it is still a very useful guide and can be found here: www.ncvovol.org.uk/ uploadedFiles/NCVO/ Publications/Publications_ Catalogue/Trustee_and_ Governance/For_Love_and_ Money_%20Exec_Sum_PDF.pdf The Social Enterprise – University Enterprise Network SE-UEN has produced a useful document on legal models and governance. www.plymouthsocial enterpriseuen.co.uk/resources/ files/4%20-%20UEN%20 Social%20Enterprise%20 Legal%20Models%20and%20 Governance.pdf

Business Planning Business Model Canvas www.businessmodelgeneration. com Virtue Ventures – Kim Alter provides a typology that breaks down the traditional boundaries between the nonprofit and private sectors and explores how institutions have combined a mix of social values and goals with commercial business practices.

48

Ashoka UK www.ashoka.org Ashoka is the global association of the world’s leading social entrepreneurs.

Association of Chief Executives of Voluntary Organisations www.acevo.org.uk ACEVO connects, develop and represent the third sector’s leaders.

Cabinet Office www.cabinetoffice.gov.uk/ resource-library/growingsocial-investment-marketvision-and-strategy Growing the Social Investment Market: A vision and strategy sets out the Government’s vision of a thriving social investment market where social ventures can access the capital they need to grow, allowing them to do more to help build a bigger, stronger society.

CAN www.can-online.org.uk CAN supports social enterprises and charities to scale up their businesses and maximise their social impact by providing business support and capital as well as running CAN Mezzanine, high-quality and affordable office space exclusively for the social sector.

Cooperatives UK www. cooperatives-uk.coop Cooperatives UK is the national trade body that campaigns for co-operation and works to promote, develop and unite cooperative enterprises.

Economic and Social Research Council ESRC www.esrc.ac.uk

Appendix D: Links to further UK and worldwide resources

Philanthropy UK www.philanthropyuk.org Leading resource for free and impartial advice to aspiring philanthropists who want to give effectively.

Proving and Improving www.proveandimprove.org from New Economics Foundation www.neweconomics.org Toolkit to help provide social enterprise and other mission– driven organisations with the knowledge, tools and resources to prove and improve their quality and impact.

School for Social Entrepreneurs www.sse.org.uk SSE supports individuals to realise their potential and to establish, scale and sustain, social enterprises and social businesses across the UK, Australia and Canada.

Skoll Centre for Social Entrepreneurship at the Saïd Business School, Oxford University www.sbs.ox.ac. uk/centres/skoll/Pages/ default.aspx The Skoll Centre is a leading global entity for the advancement of social entrepreneurship. It fosters innovative social transformation through education, research, and collaboration.

Social Enterprise Training and

Support SETAS www.setas.co.uk A one-stop marketplace for social enterprise training and support.

Social Enterprise UK www.socialenterprise.org. uk Social Enteprise UK is the national body for social enterprise. It represents members to support and help grow the social enterprise movement.

Social Firms UK www.socialfirms. co.uk Social Firms UK is the national membership and support organisation for the development of the Social Firm and Work Integration Social Enterprise WISE sector in the UK. Social Return on Investment Network SROI www.sroi-uk.org. uk Membership organisation with members who are practitioners,

academics, funders and investors with an interest in the use and development of social return on investment methodology.

UnLtd www.unltd.org.uk UK Charity which supports social entrepreneurs by providing a complete package of funding and support, to help individuals make their ideas a reality.

Endnotes i.

ii.

iii.

Santos, F.M. (2012). A positive theory of social entrepreneurship. Journal of business ethics. 18 August, p.1-17. DOI 10.1007/s10551012-1413-4 Universities UK (2012).

Universities enabling social enterprise. www.universitiesuk.ac.uk/ Publications/Documents/ UniversitiesEnablingSocial Enterprise.pdf Research Councils United Kingdom. Accessed 2013. www.rcuk.ac.uk/ Publications/policy/ framework/Pages/ SustainableWorld.aspx

iv. Higher Education Funding Council for England.

Accessed 2013. www.hefce.ac.uk/ whatwedo/kes/society/ entrepreneur v.

Universities UK (2012).

Universities enabling social enterprise. www.universitiesuk.ac.uk/ Publications/Documents/

UniversitiesEnabling SocialEnterprise.pdf vi. Santos, F.M. (2012). ‘Let’s get serious about social entrepreneurship: Rethinking strategy and organization theory.’ Paper presented at NYU Stern Conference on Social Entrepreneurship, Nov. 7-9. vii. Santos, F.M. (2012). A positive theory of social entrepreneurship. Journal of business ethics. 18 August, p.1-17. DOI 10.1007/s10551012-1413-4 viii. www.4lenses.org/ settypology/models ix. Santos, F.M. 2012. ‘Let’s get serious about social entrepreneurship: Rethinking strategy and organization theory.’ Paper presented at NYU Stern Conference on Social Entrepreneurship, Nov. 7-9. x.

www.creativecommons.org

xi. Intellectual Property Office.

My IP, Intellectual Property

Explained. 2012. www.ipo.gov.uk/myip.pdf xii. https://www.gov.uk/ running-a-limited-company/ directors-responsibilities xiii. Theory of Change. ‘A theory of change (TOC) is a tool for developing solutions to complex social problems. A basic TOC explains how a group of early and intermediate accomplishments sets the stage for producing longrange results.’ Source: Harvard Family Research Project. Accessed 2013. www.hfrp.org/evaluation/ the-evaluation-exchange/ issue-archive/evaluationmethodology/anintroduction-to-theory-ofchange xiv. See note xiii above xv. Sources for measuring impact: www. proveandimprove.org www.bigsocietycapital.com/ guidance-social-sectororganisations

49

www.inspiringimpact.org www.theoryofchange.org www.socialauditnetwork. org.uk www.thesroinetwork.org www.ces-vol.org.uk/ Publications-Research/ publications-freedownloads/publicationsfree-assessing-change xvi. Reproduced with permission from Bates, Wells and Braithwaite. Bates, Wells and Braithwaite and Social Enterprise UK. 2005.

Keeping it Legal, http:// cms.bwbllp.com/Files/ Publications/sec_keeping_ legal_complete2b.pdf xvii. See note xiii above xviii. To help the social entrepreneur build a business plan, try out the Business Model Canvas developed by www. businessmodelgeneration. com This is an interactive tool that makes business planning easy.

Other helpful templates: Business Link Business Plan: www.businesslink.gov.uk/ Starting_a_Business_files/ Business_Plan_Template_ v8.4.doc Social Enterprise Toolbelt (section on business planning): www.setoolbelt. org Business Traders (Australia) Social Enterprise Plan: www.socialtraders.com.au/ social-enterprise-businessplanning xix. Adapted from: Harvard

50

Endnotes

Business School. Accessed 2012. http://hbswk.hbs.edu/ item/0565.html#related xx. See note xiii above xxi. Social and Environmental Metrics: www. socialenterprise.net/assets/ files/Revisioning%20 Value%20measure%20 impact%20final.pdf www.setoolbelt.org (search under financial accounting). xxii. Enterprising Non-Profits (Canada) Marketing Module: www.enterprisingnonprofits. ca/learning-toolkits/ products-and-markets xxiii. ‘Subject matter expertise’ is optional and here refers to the market value of a seconded member of staff, or if the IP requires specific technical abilities, the market value of an HEI staff member with this specific competence. If this is included as an asset, then the actual charges of the secondment or technical staff member should be included as a liability. Since many staff at university arguably receive lower salaries than they would in the private sector, rather than simply transferring this unique value into labour costs, calculating expertise in the Social Enterprise IP Equity approach shows a more detailed picture of the benefit of HEIs using their human capital for social enterprise spin-outs. xxiv. www.bis.gov.uk/cicregulator xxv. Reproduced with permission

from: UnLtd. and HEFCE, UnLtd, Simpacta, Red Ochre. 2010 Social Entrepreneurship Toolkit A comprehensive guide to developing a social enterprise, developed as part of the UnLtdHEFCE Higher Education Social Entrepreneurship Awards programme. www.unltd.org.uk/ ocialentrepreneurshiptoolkit xxvi. HEI involvement will need to be covered by an appropriate collaboration, or company member’s/ investment agreement – Joint IP could be part of collaboration. Otherwise SE could receive it under a licence.

Contact Information UCL Business PLC The Network Building 97 Tottenham Court Road London W1T 4TP Tel: +44 (0)20 7679 9000 Fax: +44 (0)20 7679 9898 Email: info@uclb.com

CHANGEMAKING 101:

A STUDENT GUIDE TO

SOCIAL ENTREPRENEURSHIP

CHANGEMAKING 101:

A STUDENT GUIDE TO

SOCIAL ENTREPRENEURSHIP

ACKNOWLEDGMENTS Over the past ten years, the field of social entrepreneurship has been growing at a blistering pace.

More courses and applied learning opportunities are available on campuses than ever before, and awareness is increasing of both the need and the promise of system-changing solutions to create a better tomorrow.

However, many students donâ&#x20AC;&#x2122;t know how or where to start on their pathway towards learning about this new and emerging field, or how to get involved.

This guide, Changemaking 101, was developed to meet this need. Through the leadership and support of the Algernon Sydney Sullivan Foundation, this guide was envisioned to support the 31 colleges and universities in the Sullivan network in the Southeastern region of the U.S., while also serving as a critical resource to the students in the Ashoka network, and elsewhere, seeking guidance and examples. We are grateful to the Sullivan Foundation and their partnership in this effort.

We are also very fortunate to have the continued support of our long-time friend and partner Debbi D. Brock, Assistant Professor of Entrepreneurship at Anderson University, and creator of the 2003 Social Entrepreneurship Teaching Resource Handbook. Debbie co-authored new editions of the Handbook with Ashoka U in 2008 and 2011. For Changemaking 101, Debbi offered her insights into the growth of the academic field of social entrepreneurship, resources most relevant to students, and her expertise as a contributing editor.

Even with the Sullivan and Ashoka network as references, we realized that the best student resourses are shared from student to student through word of mouth, social media, and other networks. We built on this awareness by recruiting two hard working and insightful student interns as contributing authors: Tommy Tobin, recent graduate from Stanford University, and Brittany Koteles, recent graduate of University of Illinois at Urbana-Champaign. Tommy and Brittany were both student leaders for social entrepreneurship, and they injected this guide with their network knowledge, experiential advice, and new research.

But Changemaking 101 would not be complete without the submissions from organizations serving student social entrepreneurs, and from student leaders themselves, who are featured throughout this guide through their stories of impact and campus transformation.

Finally, a recent graduate of Boston Universityâ&#x20AC;&#x2122;s Center for Digital Imaging Arts, Mary Dorothy Fain, helped to create the final polished product in an easy to read and beautifully designed format.

Changemaking 101 is a guide created by students and for students.

We look forward to hearing your comments, and accounts from your own experience, to continue building a robust network of knowledge and resources for the field.

With appreciation,

Marina Kim, Director, Ashoka U

2

Contributing Authors

Contributing Editors

Brittany Koteles Tommy Tobin

Debbi D. Brock, Anderson University Erin Krampetz and Michèle Leaman, Ashoka U

CHANGEMAKING 101

CONTENTS ABOUT YOU...........................................................................................................................................................................04 1. FIRST THINGS FIRST..................................................................................................................................................... 05 Spotlight On: Business............................................................................................................................................ 06 Spotlight On: Health................................................................................................................................................. 07 Social Entrepreneurship In Other Sectors...................................................................................................... 08 Going Deeper: Understanding Social Entrepreneurs................................................................................. 09 2. KNOWLEDGE.................................................................................................................................................................... 10 Getting Started............................................................................................................................................................ 10 Stay Informed................................................................................................................................................................13 Deepen Your Knowledge with Learning Communities...............................................................................15 3. SKILLS...................................................................................................................................................................................17 Work In A Team............................................................................................................................................................17 Expand Your Network...............................................................................................................................................19 Connect With Faculty................................................................................................................................................21 Be A Great Communicator.....................................................................................................................................23 4. KICK IT OFF.......................................................................................................................................................................27 Student Organization Profiles...............................................................................................................................27 Activities For Student Social Entrepreneurship Organizations..............................................................33 Start Your Own Venture...........................................................................................................................................37 5. BRANCH OUT...................................................................................................................................................................40 Issue: Microfinance And Social Enterprise......................................................................................................40 Issue: Health...................................................................................................................................................................41 Issue: Internathional Leadership...........................................................................................................................41 Issue: Hunger............................................................................................................................................................... 42 Issue: Poverty.............................................................................................................................................................. 43 6. ONWARD........................................................................................................................................................................... 44 Strategies For Success............................................................................................................................................ 44 Career Search Resources....................................................................................................................................... 44 Internship And Volunteer Opportunities......................................................................................................... 46 Explore Graduate Study Opportunities........................................................................................................... 48 ABOUT US............................................................................................................................................................................... 50 About Algernon Sydney Sullivan Foundation............................................................................................... 50 About Algernon Sydney Sullivan Scholarship Program.............................................................................51 About Ashoka..............................................................................................................................................................52 About Ashoka U..........................................................................................................................................................52

CHANGEMAKING 101

3

ABOUT YOU

Do you want to make a difference in the world?

Do you see the same problems in the news headlines every day, and wonder how we could solve them?

Do you question â&#x20AC;&#x153;the way things have always been doneâ&#x20AC;? and change things up, just to try something different?

Are you looking for a more effective way to bring about social change?

Are you inspired by those who have?

If you identify with any or all of the above, then this guide is for you! With Changemaking 101: A Student Guide to Social Entrepreneurship, our goal is to give you: A comprehensive introduction to social entrepreneurship Resources to learn more deeply about this approach to social change Models of social entrepreneurship at work on college campuses that you can replicate Strategies for how to build momentum for social entrepreneurship activities on your campus Tips and tools to be an effective student leader and changemaker in your field of interest Ideas for starting a social entrepreneurship club, launching a venture, or adding a social entrepreneurship-oriented perspective to an existing club.

Use this kit to get inspired, grow as a leader, and bring the concept of social entrepreneurship to your campus.

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CHANGEMAKING 101

1.FIRST THINGS FIRST What is Social Entrepreneurship?

Social entrepreneurship is a different way of approaching problems in the world. It means coming up with innovative solutions to society’s most pressing social problems.

It means offering new ideas for wide-scale change. It means finding what is not working in a system, and changing it – without waiting for others to lead. It means bringing a vision of a better world together with the realistic, practical steps of getting there.

describes social entrepreneurs as people who “identify resources where others only see problems […] and unleash resources in the communities they’re serving.”

Even in the most unlikely contexts, social entrepreneurs inspire others to stand up and act together for social change.

“There is nothing as powerful as a new idea in the hands of a firstclass entrepreneur.”

Bill Drayton, Founder & CEO of Ashoka

With this guide, you can start to learn how to do the same.

Everyone can be a changemaker.

Don’t wait until you graduate!

You can work to bring change now. David Bornstein, author of How to Change the World 1.FIRST THINGS FIRST

Who are some well-known social entrepreneurs?

Muhammad Yunus (Bangladesh): Founder of microfinance and the Grameen Bank; recipient of the 2006 Nobel Peace Prize.

Maria Montessori (Italy): Developed the Montessori approach to early childhood education.

Jimmy Wales (United States): Created Wikipedia, the first collaborative, peeredited encyclopedia, and now the biggest encyclopedia in the world.

What do these social entrepreneurs have in common?

They each had a big idea for lasting, systemic change with a positive social impact – but they all took small, practical steps to get there. In the following pages, you will find some tangible examples of social entrepreneurs at work in a variety of fields. Social entrepreneurs are everywhere!

“Social entrepreneurship is useful to me in situations where the status quo should be improved in a thoughtful, sustainable way. And there’s no shortage of example situations like that!”

Spotlight on Business Spotlight on Health Social Entrepreneurship in other Sectors Going Deeper

Josh Goldman, student, Denison University

Wendy Kopp (United States): Founded Teach for America to solve educational inequity by recruiting highperforming college grads to teach in low-income communities.

CHANGEMAKING 101

5

SPOTLIGHT ON: BUSINESS Social Entrepreneurs in Action ASHOKA FELLOW CASE STUDY: MICROFINANCE See how finance was transformed by a man with a vision.

THE PROBLEM

THE OPPORTUNITY

A significant number of families in Bangladesh are stuck in poverty. To get out of poverty, they need income.

To get income, they need a business – but many families do not have the seed money to start: banks simply won’t loan to individuals in poverty who don’t have the collateral.

Where banks saw only a poor person, another man saw an opportunity. First, he recognized, the poor only need small amounts of money. Secondly, poor women are driven, entrepreneurial, and reliable. And third, one flourishing small business could lift not only one family, but even its larger community from poverty.

1.FIRST THINGS FIRST Spotlight on Business

THE SOCIAL ENTREPRENEUR

Spotlight on Health Social Entrepreneurship in other Sectors Going Deeper

Muhammad Yunus is known as the “Father of Microfinance” because of his revolutionary work that brought banking to the poor.

Here is an interview with Yunus (3:58): http://www.youtube.com/ watch?v=WfdD3NPgEY4, and a story of a woman whose life was transformed (3:35): www.youtube. com/watch?v=1UugpcDjjJU

*SEE PAGE 9 FOR FOLLOW-UP QUESTIONS TO DISCUSS!

THE GAME-CHANGING IDEA “I went to the bank and proposed that they lend money to the poor people. The bankers almost fell over.”

-Muhammad Yunus, Founder, Grameen Bank Yunus’s system-changing idea was to lend small amounts of money to poor people while giving them a community of peer support among other borrowers.

More materials on social entrepreneurship and business Jessica Jackley talks about changing how we see poverty (18:34): www.ted.com/talks/lang/eng/jessica_jackley_poverty_money_and_love.html Twitter HashTags to follow: #CSR - Corporate social responsibility tweets #Microfinance - the name says it all See features on Net Impact Capital and Campus Kiva (page 40) for examples on how social entrepreneurship and business can intersect on your campus!

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CHANGEMAKING 101

SPOTLIGHT ON: HEALTH Social Entrepreneurs in Action ASHOKA FELLOW CASE STUDY: THE BIRTHING PROJECT Learn about one woman’s impact on the lives of babies born into poverty

THE PROBLEM

THE OPPORTUNITY

The US ranks 36th in the world for infant mortality – higher than any other highly developed country.

Within the US, that rate is twice as high for black mothers.

Pregnancy is a time when women who engage in even the riskiest behaviors may be open to change.

THE GAME-CHANGING IDEA THE SOCIAL ENTREPRENEUR Kathryn Hall-Trujillo founded The Birthing Project, where at-risk expecting mothers are paired with Sister Friends who serve as accountability partners.

What if we paired pregnant AfricanAmerican women with a female role model, who was committed to motivating her and help with decision-making through the baby’s first year?

1.FIRST THINGS FIRST Spotlight on Business Spotlight on Health Social Entrepreneurship in other Sectors

See a video (2:00) of The Birthing Project: www.youtube.com/ watch?v=lczDuVjXKlU

Going Deeper

*SEE PAGE 9 FOR FOLLOW-UP QUESTIONS TO DISCUSS!

More materials on social entrepreneurship and business Jane Chen solves the lack of incubators in the developing world: www.ted.com/talks/lang/eng/jane_chen_a_warm_embrace_that_saves_lives.html Twitter HashTags to follow: #Health – one of the top 20 hashtags used by social entrepreneurs #sdoh – “social determinants of health” www.ashoka.org/fellows Other Ashoka Fellows who work in this field: Veronica Khosa - HIV/AIDS George Askew - Pediatrics George Abraham - Holistic approach to blindness CHANGEMAKING 101

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SOCIAL ENTREPRENEURSHIP IN OTHER SECTORS Here’s a taste of what leading social entrepreneurs are doing in a variety of sectors:

EDUCATION Taddy Blecher, through CIDA City Campus trains South Africa’s youth: http://skoll. rockhopper.tv/ programmes/339

Eric Dawson launched Peace First to address sky-rocketing youth homicide rates: poptech.org/ popcasts/eric_ dawson_peace_ first

1.FIRST THINGS FIRST Spotlight on Business Spotlight on Health

Mary Gordon is

Social Entrepreneurship in other Sectors Going Deeper

8

reducing bullying by bringing babies into the classroom: www.ashoka.org/ node/3005

CHANGEMAKING 101

HUMAN RIGHTS/HUNGER An overview of Ashoka Fellows and human rights: www.ashoka.org/ rights

Christa Gannon is changing the culture of the juvenile justice system in the U.S.: usa. ashoka.org/fellow/ christa-gannon

Guillaume Bapst revolutionized the way that lowincome families can access food in France: www. ashoka.org/fellow/ guillaume-bapst

WATER Innovative solution to the water crisis in Azerbaijan: www.viewchange. org/videos/thelast-kankan-ofnakhchivan

Ashoka’s collaborative entrepreneurship for water innovations: www. ashoka.org/eii

Ako Amadi implemented a rainwater harvesting system in Nigeria: ashoka. org/fellow/2332

ENVIRONMENT No need to wait until you graduate!

350.org was launched by a bunch of Middlebury College students.

Hash tags to follow: #Environment #green #sustainable #climatechange

Gustavo Alanis is training judicial authorities in Mexico understand and enforce environmental laws: www.ashoka. org/node/3062

GOING DEEPER: UNDERSTANDING SOCIAL ENTREPRENEURS Reflecting on the following questions can help you digest the projects featured in our Spotlight section and learn how to approach problems like a social entrepreneur.

What about the outlined stories most impressed you on a personal level? Why? What qualities or skills do these social entrepreneurs possess? Do you recognize any of those characteristics in yourself?

Are the featured social entrepreneurs and their projects:

Ashoka’s Criteria for Social Entrepreneurship 1. Systems-changing? Sketch the ‘before’ system and ‘after’ system that the social entrepreneur targets. What norms are challenged? What changes?

2. Innovative? Does the idea stand out among other proposed solutions?

3. Scalable? What are the limits to expanding this solution?

4. Replicable? Can it be spread in other places? Has that happened yet?

5. Measurable? How can you determine the impact of the social entrepreneur’s solution?

1.FIRST THINGS FIRST

6. Sustainable? Are there ways you can see the financial sustainability of the social entrepreneur’s solution be improved?

Spotlight on Business Spotlight on Health

How could these social ventures be improved?

What problem in the world concerns you most? What is your passion?

Within that problem system that concerns you, what are people doing right? What “bright spots” exist as opportunities for change or growth?

Are there ways you can leverage these bright spots to your advantage to advance new and exciting solutions?

Social Entrepreneurship in other Sectors Going Deeper

(Adapted from the Transformative Action Institute)

Going Deeper: Bring a Social Entrepreneur to Campus AN ASHOKA FELLOW VISITS MARQUETTE UNIVERSITY The person: Jane Leu, founder of Upwardly Global, is a champion social entrepreneur who has helped thousands of immigrants to restart their careers upon entering the U.S.

The process:

During her one-week residence, Jane met with classes, student organizations and faculty members across campus in an effort to explore a cross-disciplinary fit for social entrepreneurship at Marquette University.

The effect: Jane brought the passion, energy and experience of a leading social entrepreneur to campus to ignite campuswide enthusiasm.

Bring a model social entrepreneur to your campus! Ashoka U helps coordinate a great match with an Ashoka Fellow that fits your campus’s focus and values.

CHANGEMAKING 101

9

2.KNOWLEDGE Learning about Social Entrepreneurship Now that you’ve seen what social entrepreneurship looks like, where do you fit into the picture?

That’s what the rest of this guide is for! Start by by learning more.

GET STARTED WITH THE BEST VIDEOS What is Social Entrepreneurship?

Entrepreneurs Can Change the World (2:20) A little video that answers the question: “Why are entrepreneurs so important? ”www.youtube.com/watch?v=T6MhAwQ64c0 The Story of Ashoka (3:50) A playful history of the “Everyone a Changemaker” vision. www.youtube.com/user/Ashokavideos#p/a/u/1/RfiY9rRsWqE Gary Hamel on Reinventing the Technology of Human Accomplishment (16:44) An action-packed, eye-opening picture of how we MUST radically rethink how we organize people and resources in the 21st century. www.managementexchange.com/video/garyhamel-reinventing-technology-human-accomplishment.

2.KNOWLEDGE Get Started Stay Informed Go Deeper

Social Entrepreneurship in Action Stanford President John Hennessey – Opportunities in Social Entrepreneurship (1:40) ecorner.stanford.edu/authorMaterialInfo.html?mid=931 Paul Rice – Awakening the Sleeping Giant (14:04). At TEDxAshokaU, the founder of Fair Trade USA speaks on how social entrepreneurship is a way to empower the poor. www.youtube.com/watch?v=a7X5eEimFD8 Rocco Falconer – Unleashing Young Social Entrepreneurs (14:30) The story of Planting Promise, and a prime example of a young social entrepreneur talking about how young people will change the world. www.youtube.com/watch?v=ru-CBJehYhY

Education and Social Entrepreneurship RSA Animate – Changing Education Paradigms (11:40) Why don’t we get the best out of people? Because we have been educated to become good workers, rather than creative thinkers. What’s the solution? A dynamic, radical new approach to education. www.ted.com/talks/ken_robinson_changing_education_paradigms.html Adora Svitak – What Adults Can Learn From Kids (8:13) An argument, presented by a twelve year-old who knows that the big dreams of youth deserve high expectations – starting with a willingness to learn from young people as much as to teach them. www.ted.com/talks/adora_svitak.html Dave Meslin – The Antidote to Apathy (7:05) A self-defined “professional rabblerouser” identifies seven barriers that keep us from participating in our communities. www.ted.com/talks/dave_meslin_the_antidote_to_apathy.html

Tools for re-thinking a system: www.soccket.com/media-gallery/soccket-our-story-in-90-seconds www.thefuntheory.com www.ideo.com/work/human-centered-design-toolkit/

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CHANGEMAKING 101

GET STARTED WITH THE TOP WEBSITES TO EXPLORE If you’re looking for:

Outstanding examples of social entrepreneurs from the organization that coined the term “social entrepreneur.”

Ashoka www.ashoka.org A global association of leading social entrepreneurs, Ashoka is creating a world where everyone can respond to social challenges.

Tagline: Everyone a Changemaker

Awards, scholarships, or resources for student social entrepreneurs.

Algernon Sydney Sullivan Foundation www.sullivanfdn.org Sullivan provides scholarships to students from over 54 institutions, and helps foster service and social entrepreneurship in higher education.

Tagline: Inspiring Lives of Integrity and Service

Information on what younger, early-stage social entrepreneurs are up to.

Echoing Green www.echoinggreen.org Echoing Green unleashes the next generation of talent to solve the world’s biggest problems.

Tagline: Think big. Be bold. Drive Change.

2.KNOWLEDGE

News about social innovation.

Get Started

Dowser www.dowser.org A new kind of journalism that focuses on innovative solutions rather than existing problems.

Tagline: WHO is solving WHAT and HOW.

Stay Informed Go Deeper

Engaging, relevant information, statistics, graphics, and tips on how to make the world a better place.

GOOD www.good.is An edgy and fresh editorial perspective with quality, hip graphics and aesthetic.

Tagline: For people who give a damn.

BONUS: Sign up @ the website for the One GOOD Thing A Day email!

Profiles—with videos—of amazing social entrepreneurs in a variety of issue areas.

Skoll Foundation www.skollfoundation.org Skoll Foundation pursues a sustainable world of peace and prosperity by identifying and investing in social entrepreneurs.

Tagline: Investing in, connecting and celebrating social entrepreneurs.

A mix of scholarly articles, news, book reviews, and pragmatic tools about social innovation.

Stanford Social Innovation Review www.ssireview.org A blend of information in the fields of nonprofit management, corporate social responsibility, social entrepreneurship, and philanthropy.

Tagline: Striking a balance between pragmatic and intellectual.

Inspiring videos about real people and progress in global development.

Viewchange www.viewchange.org ViewChange brings together documentaries, news reports, and viewergenerated films of varying length and style – all about social changemakers.

Tagline: Stories powering progress.

CHANGEMAKING 101

11

GET STARTED WITH INSPIRING BOOKS

“Every change begins with a vision and a decision to take action.”

David Bornstein, How to Change the World

Be Bold by Cheryl Dorsey Profiles twelve different social entrepreneurs supported by Echoing Green, bringing to life the core elements of acting boldly, thinking boldly, and living boldly.

Forces for Good by Leslie R. Crutchfield and Heather McLeod Grant The six most effective practices of non-profit management, highlighting their use in twelve outstanding non-profit organizations.

How to Change the World by David Bornstein A comprehensive introduction. Thousands of students have fallen in love with social entrepreneurship reading this book.

2.KNOWLEDGE Get Started Stay Informed Go Deeper

Life Entrepreneurs by Christopher Gergen and Gregg Vanourek Find your “core identity” with this book, which focuses on 55 ordinary folks who have led extraordinary lives through social entrepreneurship.

“Build a vision for the people and recognize that no single source of leadership will make it happen.”

Social Entrepreneurship: What Everyone Needs to Know by David Bornstein and Susan Davis

Jacqueline Novogratz, The Blue Sweater

The perfect starter guide to the field, this book provides a general overview of social entrepreneurship in a Q&A format.

The Blue Sweater by Jacqueline Novogratz Acumen Fund founder Jacqueline Novagratz weaves powerful stories of social entrepreneurship through personal narrative of her experiences in Africa – the stuff that led to the innovation of “patient capital” for social entrepreneurs.

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”

George Bernard Shaw; the quote that inspired The Power of Unreasonable People

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CHANGEMAKING 101

The New Pioneers by Tania Ellis Provides an overview of the current social megatrends that are shaping our ways of thinking, living and conducting business.

Work on Purpose by Laura Galinsky with Kelly Nuxoll Recently published by Echoing Green, Work on Purpose tells the stories of five changemakers who aligned their passion with their talents. The result: Personal fulfillment and societal impact.

The Power of Unreasonable People by John Elkington, Pamela Hartigan, and Klaus Schwab Detailing social entrepreneurs from all walks of life with ideas from a wide spectrum, this book reviews the business models and practices that you can use to develop a social venture.

Social Business by Muhammad Yunus The goal of social business is to create self-supporting, viable enterprises that generate economic growth – while providing goods and services that people need. Yunus shows how social business can be put into practice and explains its potential for the business world.

GET STARTED WITH FILMS AND DOCUMENTARIES

Sundance Stories of Change Series www.sundance.org/programs/stories-of-change-films Through the Sundance Institute and Skoll Foundation, Stories of Change supports the creation of feature-length independent documentary films that examine social entrepreneurship. One documentary you’ll find here is “To Catch a Dollar: Muhammad Yunus Banks on America.”

Uncommon Heroes Short Film Series www.skollfoundation.org/approach/storytelling/uncommon-heroes Titled Alvin’s Alvin Hall as film, probing of their work

Guide to Good Business, the series follows finance guru he visits a different social entrepreneur with each short their business model, examining the potential impact and exploring the challenges to scaling their innovation.

PBS’ The New Heroes Documentary Series http://www.pbs.org/opb/thenewheroes/index.html A whole social entrepreneurship curriculum on the web with DVDs to order.

2.KNOWLEDGE Get Started

STAY INFORMED WITH PODCASTS

Stay Informed Go Deeper

Now that you’re caught up, how to keep up? Stay up to date: AshokaTECH tech.ashoka.org/podcasts Creative uses of technology in fields ranging from public health to education.

Public Radio International’s Social Entrepreneurship Podcast www.pri.org/business/social-entrepreneurs/index.1.html “Hear a different voice” on social entrepreneurship from around the world.

Social Innovation Conversations sic.conversationsnetwork.org From all regions and walks of life, learn about how social entrepreneurs are helping our world through socially motivated businesses, both big and small.

Stanford E-Corner ecorner.stanford.edu/podcasts.html Every Wednesday during the academic year, the Entrepreneurial Thought Leaders program brings leading entrepreneurs and thinkers to Stanford’s campus. Their lectures are available here as podcasts.

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STAY INFORMED WITH BLOGS

Social Edge www.SocialEdge.org This blog is “By Social Entrepreneurs, For Social Entrepreneurs.” It’s a global online community where thousands in the social benefit sector connect to network, learn, inspire and share best practices. Weekly conversations highlight key issues in the field.

Acumen Fund Blog www.acumenfundblog.org The Acumen Fund blog features the latest breakthrough ideas from the Acumen Fund and its fellows.

Ashoka U Blog www.ashokau.org/blog Read about recent developments in social entrepreneurship education through administrator, faculty, student, social entrepreneur and community voices.

Do you believe “no news is good news?” Think again. Current events often bring news of things gone wrong, but the New York Times’ Fixes blog focuses on innovative solutions to problems in society.

2.KNOWLEDGE Get Started

The New York Times’ Fixes Blog opinionator.blogs.nytimes.com/category/fixes

Stay Informed

Spark Blog from Echoing Green www.echoinggreen.org/blog Learn about the top ideas, tweets, thoughts, and buzz about social entrepreneurship from leaders in the field.

Go Deeper

Ashoka’s Youth Venture Blog blog.youthventure.org Youth Venture inspires and invests in teams of people ages 12-21 to create and launch their own sustainable social ventures. This blog tracks the latest news in youth-led social change.

Ashoka’s Changemakers Blog www.changemakers.com/blog Changemakers is a global community that tackles social innovation through onlinecompetitions. This blog tracks the latest collaborations from all corners of the world!

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CHANGEMAKING 101

GO DEEPER Don’t learn alone! Learn about social entrepreneurship with others through these courses, peer groups, and seminars. This list is by no means exhaustive, but it shows the breadth of opportunities for you to apply and expand your knowledge of social entrepreneurship.

Sullivan Foundation Social Entrepreneurship Institute www.sullivanfdn.org The Sullivan Social Entrepreneurship Institute is a three-week intensive study of social entrepreneurship to encourage students from any major or background to learn and apply social entrepreneurship skills in a wide variety of contexts. Led by Professor Debbi D. Brock, at Anderson University, this interdisciplinary program teaches students how to: 1. Pursue Social Entrepreneurial Opportunities. Learn how to recognize a good social business opportunity and write a business plan for a social venture.

2. Leverage Resources. Learn how to leverage human capital, social capital, financial capital and environmental capital, through marketing, communication and leadership.

3. Create Social Value. Work with a nonprofit or for profit social enterprise in an internship capacity to create social value.

4. Become a Social Change Agent. Take an active role in building your own entrepreneurial skills to prepare yourself to be a part of Gandhi’s “be the change you wish to see in the world.”

“StartingBloc opened my access to thousands of other social entrepreneurs. As an afropreneur -a social entrepreneur with an African focusit allowed me to build bridges across several continents.”

Idris Bello, winner of the Dell Social Innovation Competition

2.KNOWLEDGE Get Started Stay Informed

Berkeley Microfinance Simulcast www.mficonnect.com/page/berkeley-microfinance A free live webcasted MBA microfinance course taught by Professor Sean Foote. Some campuses offer credit for the class. Last year, 75 campuses around the world took advantage of this opportunity.

Go Deeper

StartingBloc: The Institute for Social Innovation www.startingbloc.org StartingBloc is a four-day fellowship program that provides socially conscious students and young professionals with the training, experience, and networks necessary to drive social, economic, and environmental innovation through their careers and lives as engaged citizens.

TechChange www.techchange.org Today, emerging technologies make it easier to respond to disasters, distribute food, and fight diseases. However, not enough practitioners in the field know how to use or access these technologies. TechChange offers interactive and innovative training at the intersection of social entrepreneurship and technological skills.

Transformative Action Course Curriculum www.transformativeaction.org Workshops and courses are offered at colleges and universities across the country. Transformative Action catalyzes the power and money of all stakeholders toward creative “win-win” solutions. It is also a powerful method for individuals to approach problems as opportunities for personal growth.

CHANGEMAKING 101

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GO DEEPER 21ST CENTURY SKILLS REQUIRE 21ST CENTURY TRAINING. DID YOU KNOW? 90 percent of the world has access to a cell phone, 1 in 4 people are on the internet, and more than 700 million people have Facebook!

2.KNOWLEDGE

Spotlight on: Citizen Circles Citizen circles are like book clubs: they are small groups of three or more people that commit to meeting for several weeks – but they are about much more than a book. Citizen Circles participants are devoted to challenging each other to learn about a particular interest and to make a positive change in the community and the world.

Taking charge of your own education: Co-founder Alan Webb describes the beginning of Citizen Circles: “At the first Ashoka U summit, we were struck by the potential for staff, professors, and students alike to share and learn together. Social innovation education opportunities were limited at our universities - but we were lucky. This inspired us to create a process for small groups that was simple, powerful, and flexible.”

Education the right way: “The way we learn about social entrepreneurship should mirror the way we create social enterprises - small teams, driven by our passion, addressing challenges we see in the world around us, with each member contributing according to his or her unique abilities.”

Get Started Stay Informed Go Deeper

Get involved! Start a Citizen Circle, take advantage of free resources to help students, or host an event to launch several Citizen Circles at once! Go to citizencircles.com or email cocreate@citizencircles. com to learn more.

citizencircles.com Looking for more?

A comprehensive list of educational resources and opportunities can be found in Ashoka U’s Social Entrepreneurship Education Resource Handbook. To download the first 12 pages of the Handbook for free, go to www.ashokau.org/resources/social-entrepreneurship-educationresource-handbook.

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CHANGEMAKING 101

3.SKILLS Becoming a Changemaker Develop and refine your skill set in order to prepare to be a force for social good. In this section, you will find ways for you to cultivate your strengths, grow as a leader, and become an effective changemaker, on your campus and beyond.

What social change opportunities exist on your campus? Dig in and start using your time as a way to strengthen your leadership skills. See examples of student organizations (pages 27-31) and start your own group (pages 32-36).

WORK IN A TEAM To inspire action among a group of people is one of the most powerful things you can do as a student leader. Here are tips from other students in social entrepreneurship teams on effective leadership:

“A great leader never conveys that they are ‘above’ anyone else.

Motivate- don’t command.”

-Natalie Steward, student, Johns Hopkins University

3.SKILLS Work in a Team

“The key to effective leadership is delegation. You can’t do it all, and there are people waiting to use their strengths. Let them!”

-Anand Deshpande, student, Emory University

Expand your Network Connect with Faculty

“It’s okay to ‘overcommunicate’ - be crystal-clear about your expectations, give feedback to others, and be open to feedback, too.”

-Ravi Singh, student, University of Michigan

Connect with the Community Be a Great Communicator

“Make sure everybody gets a chance to contribute. Be conscious of pulling in less talkative, introverted people.”

-Rachit Khaitan, student, Clarmont Mckenna College “Write an agenda for every meeting and send it out 24-48 hours ahead of time. Also, food at meetings is always a plus- but don’t get carried away.”

-Josh Goldman, student, Denison University “Understand how to align individuals’ motivations with the goals of the bigger organization.”

-Tony Luo, student, Cornell University

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WORK IN A TEAM Here are some pragmatic tools you can use to be on top of your game: IF YOU WANT TO… “Scheduling group meetings always flooded my inbox. Doodle solved that problem!”

-Corrie Sutherland, student, University of Virginia

Crowdsource funding for your social venture Make digital highlights of articles, add sticky notes, and compile screenshots of sites

Work in a Team Expand your Network Connect with Faculty Connect with the Community Be a Great Communicator

“I always save new documents on Dropbox first. I know I’ll never lose it because it saves a copy online. Dropbox also makes it much easier to collaborate with others. I’ll never use a flash drive again!”

-Vinh Nguyen, student, University of Southern California

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CHANGEMAKING 101

Startsomegood.org

Diigo.com

Find a good meeting time for those student leaders with “impossible” schedules

Doodle.com

Find a “doodle-like” feature, but just for the date

Congregar.com

Manage your to-do lists all in one place 3.SKILLS

GO TO...

Sync your group’s files to one place – and keep it as a folder on your hard drive Make free professional email templates for newsletters, marketing, and more Do some mind mapping or use other creative brainstorming methods Inspiring videos of charismatic people who talk about “ideas worth spreading” Embed your powerpoint slides into a webpage (no more flash drives!)

Find a handy tool for personal finance Get practical tips on how to use social media to your advantage

Rememberthemilk. com Dropbox.com

Mailchimp.com

Mindmeister.com

TED.com

Slideshare.net Wesabe.com Copyblogger.com

EXPAND YOUR NETWORK With the right people on your side, anything is possible. How do you find them? “Networking” may be synonymous with “schmoozing” to you, but here’s the truth: It’s not! Networking, at its core, is simply building meaningful relationships with others, and finding out how these relationships can be mutually beneficial. Do you need help writing a resume? Want creative advice? Do you need help finding key funding for a project? It’s all about the people you know, and the ability to ask for their advice.

Networking Here are some handy tips adapted from The Schmooze-Hater’s Guide to Networking, by Tom Searcy, founder and CEO of Hunt Big Sales (as seen on bnet.com): It’s not about you. OK, it is – but only halfway. Always be thinking about how you can help the other person. What problem can you help them solve? What skills or knowledge do you have to offer? If you keep the other person in mind, good things will happen for you, too.

Set a goal. If you are at an event with good networking potential, have a number in mind. Go with 1-3 specific people in mind that you’d like to meet. As an alternative, set a goal to meet 5-10 new people, ask them 2 questions, and exchange contact information.

3.SKILLS Work in a Team Expand your Network

Ask good questions. Beyond, “What do you do?”, ask what their biggest challenges are in their work, what problem they are seeking to solve, or what project they are currently passionate about.

Connect with Faculty Connect with the Community

Say goodbye. Especially with more “high-profile” people, don’t dominate their time. Spend a few minutes getting to know them, and then exit gracefully. After introductions and a few questions, offer a handshake and say, “It has been so nice spending a few minutes to get to know you. I hope you have a great evening.”

Be a Great Communicator

Follow up! If someone gives you his or her business card, follow up with them. The next day, send an email. It can be as simple as thanking them for their time and the opportunity to meet them.

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EXPAND YOUR NETWORK Take advantage of the informational interview Informational interviews can be described as “trying on jobs to see if they fit you.” No more than informal conversations with people that work in a field that interests you, the difference between this and a real interview is that YOU get to ask the questions!

What’s in it for you: 1. Learn about a prospective career field in a pressure-free setting.

2. Get insight on “next steps” you can take NOW. 3. Make a lasting connection. People will be impressed by your initiative!

4. You might walk away with a new mentor.

5. You never know whom your interviewee might end up knowing. Even if you find out the field isn’t for you, lots of good can come from asking good questions.

Set it up: 3.SKILLS Work in a Team Expand your Network Connect with Faculty Connect with the Community Be a Great Communicator

Keep it simple. A subject line like “Informational Interview” and a brief paragraph explaining who you are and your interest in their field will do.

Give them time. Contact them at least a week before you hope to meet.

Make it short and sweet. These are busy people – indicate that you’d like to meet for a half hour.

Send a follow-up. After you meet, be sure to thank them for their time! Check out our email tips on page 24 for more guidance.

Sample questions to get you started: What is a typical day on this job really like?

Are there related fields I should explore?

How did you get into this field? education

Is it important to you to “make a difference” in your current role, and how do you do that?

What is your favorite thing about this job?

Is there anyone else you can refer me to in this field?

Least favorite?

Is my resume appropriate for this occupation?

What is your background?

What kind of experience is required?

What is the ideal staff member like (skills, education, etc.)?

How do you stay current in your knowledge of the field?

What’s the culture like in the workplace?

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CHANGEMAKING 101

What other experiences do you recommend?

CONNECT WITH FACULTY If you’re interested in social entrepreneurship, chances are you will have to seek out the “bright spots” that exist on your campus since social entrepreneurship education is still in an early stage of growth. Which faculty members at your college and university already support social entrepreneurship now? Here’s how you can find out: Take classes. Talk to your advisor, registrar, and read the course catalog to see if your school offers courses that incorporate social entrepreneurship.

Ask around. If you already know of a professor that’s involved in the field, there are good chances they know more professors with similar interests.

Find an ally. Look for faculty with subjects or research that already engages the community, and see if social entrepreneurship has a place in their curriculum.

Spread the word. Refer professors to resources like the Social Entrepreneurship Education Resource Handbook, which has lots of tools for social entrepreneurship-based classes, or to Ashoka U’s Teaching Resource Guide, which provides a number of sample syllabi for faculty interested in teaching social entrepreneurship.

Don’t wait – do it yourself! You might have to give your campus a push. Read on to see how two Denison University students did just that.

3.SKILLS Work in a Team

DIY: Starting a course devoted to changemaking

Expand your Network Connect with Faculty

The idea: When Phoebe Myhrum and Zach Goldman wanted more than a student group devoted to social change, they decided to take it to the classroom.

Modeling: Replicating how another department developed a collaborative and informal class, they used the same format and framed it around social change.

Dodging the red tape: Phoebe and Zach recommend that you find a way to maneuver within the university system and locate a faculty ally to help.

Administration was slow to support the idea, so Zack and Phoebe found a professor to start a pass/fail “special topics” course as a compromise.

Connect with the Community Be a Great Communicator

Two Denison University students challenge the system Collaboration: “We team-taught the course alongside the Director of Service-Learning,” says Phoebe. They had a working, open-ended syllabus; all students were invited to weekly class planning sessions.

Launch: Thus began “Be the Change(maker): Exploring and Experiencing Changemaking” at Denison University.

“We challenged ourselves to think about this initiative as the start of something big,” says Phoebe. “It was the best way I’ve ever spent my energy at Denison.”

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CONNECT CONNECT WITH THEWITH COMMUNITY FACULTY Team Up with Community Organizations Connect your social entrepreneurship idea with a citizen sector organization already working in the community. Here are tips for making connections in your college or university’s city: Go to the Public Service, Internship, or Service Learning Office. Does your campus have a volunteer office? Find out what organizations have a good relationship with them and get involved in service learning or other engagement opportunities. Most likely, these organizations will be the most open to deeper collaboration.

Find existing links between your campus and the community. Are there organizations that are already benefitting from student volunteers or the university’s resources?

Use your alumni base. Through the Career Service or Alumni Relations Office, find out if there are local organizations with alumni on staff. Use this as an advantage to reach out.

Tune in. Know what’s going on in your community! Follow local community organizations’ Twitter feeds or Facebook groups, go to their outreach events, and be active in your community! If you know what’s going on in your city, you can find real opportunities for partnership and collaboration that will last.

3.SKILLS Work in a Team Expand your Network Connect with Faculty

Forming meaningful partnerships: Tessa’s advice

Connect with the Community Be a Great Communicator

Brigham Young University’s Students for Social Entrepreneurship (SSE) coordinates for-credit internships with organizations like Carrotmob, Unitus, Ashoka, Dowser.org, and Teach for America. Tessa Farnsworth (2012), SSE internship coordinator, gives some tips for forming meaningful relationships with citizen sector organizations: 1. Be in constant communication. Weekly emails and bi-monthly conference calls are a must-have in our work.

2. Make sure both parties have an understanding about what they want out of the partnership.

Everyone should benefit!

3. Be professional. You are representing your university to a an established organization: make sure your work reflects it.

4. Treat it like a friendship. Your relationship with the organization should be something you want to cultivate for the long haul, and it helps to show that you really are invested.

Plus, it’s more fun that way!

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CHANGEMAKING 101

BE A GREAT COMMUNICATOR A great idea is not enough – you need to be able to communicate it to others!

Harness the Power of the Narrative Humans make sense of the world in two ways: through analysis and through narrative. Despite the clear power of the human response to stories and emotion, we often rely exclusively on data to get our point across. Use storytelling in a compelling way to draw audiences in more deeply than is possible with data alone.

When you are presenting an idea, use a story.

Allow people to imagine a real-life example of what you are proposing, protesting, or explaining.

Don’t be afraid to use descriptive detail within limits: it will allow you to tap into our universal experience.

Be sincere: an excess of flowery words doesn’t move people.

3.SKILLS

Talk about actions and feelings to which your audience can relate.

Work in a Team Expand your Network

Avoid Death by Powerpoint

Connect with Faculty

Half of the PowerPoint presentations that are happening this very moment are boring people to tears. Don’t abuse PowerPoint as a way to remember every word of your presentation! Follow these tips for a memorable presentation.

DO

Use slides to POINTS clear.

DON’T make

BIG

Make a handout if you have a lot of text or data to share.

Use awesome graphics!

Include a last slide with your name and contact information.

Know how to work the A/V equipment ahead of time.

Practice (Seriously!)

Use slides to share all your information. This is not a “data dump!”

Have text or data-heavy slides. Make a handout instead.

Connect with the Community Be a Great Communicator

WORLD RENOWNED ENTREPRENEUR, GUY KAWASAKI, RECOMMENDS THE 10-20-30 RULE OF POWERPOINT. NO MORE THAN 10 SLIDES, NO MORE THAN 20 MINUTES AND NO LESS THAN 30 POINT TEXT SIZE.

Use a lot of colors for text.

It clutters the slides and confuses the reader.

Talk too long. Instead, be succinct and powerful.

CHANGEMAKING 101

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BE A GREAT COMMUNICATOR Use Email Professionally Use email professionally. When so much high-speed work is done through Facebook, Twitter, and mobile phones, one can forget how to write competent, professional emails. It is easy to be misjudged by the tone or style of a single email, so protect yourself by paying attention to detail.

Here are some tips: No drama. Whether you are excited, sad, frantic, or angry, never try to convey emotion in a professional email. There are too many possible ways to misinterpret it at the receiving end.

No shorthand, textspeak, or smileyfaces. Absolutely none. It is usually unclear and always unprofessional.

Keep your exclamation points under control. Never more than one exclamation point in a row, and no more than 1 - 2 exclamation points per email.

Be brief and clear. Get to the point, and group your text into small paragraphs. Long chunks of text look messy and are hard to read! Instead, break up your thoughts into four or five smaller paragraphs.

Use simple, specific subjects. Be precise with few words. Here are some examples: 3.SKILLS

BAD

Work in a Team

GOOD

Expand your Network Connect with Faculty Connect with the Community Be a Great Communicator

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CHANGEMAKING 101

Request

Request: Review TEDx presentation powerpoint

Meeting

Request: Social change Meeting Friday

(no subject)

Follow-up from Friday

Urgent! Read Immediately!

Response Requested by...

BE A GREAT COMMUNICATOR Are you using social media to your advantage?

This is one of the first questions to ask yourself if you are trying to launch any new idea. Social media is an effective way to connect with people, to share ideas, and to expand your own knowledge.

If you want to be the best recruiter, communicator, and leader, you must know how to get people to pay attention to you online. There’s a lot of information out there, so it’s important to know how to get noticed!

“We don’t have a choice about whether we DO social media. The question is how well we do it.”

–Erik Qualman Author, Socialnomics

Basics: Venues for online media marketing Build a website Send email newsletters to members or supporters. Check out mailchip.com.

Start a blog featuring relevant opportunities, resources, and thoughts. Check out wordpress.com.

Get a Twitter account for your venture or club. Check out twitter.com.

Set up a Facebook group.

FIND OUT HOW HEATHER RAISED MONEY FOR HER OWN VENTURE, THE [BLANK] CANVAS... ALL BECAUSE OF A TWEET SHE READ! TURN TO PAGE 38.

3.SKILLS Work in a Team

Broadcast testimonials of members, volunteers, or beneficiaries online.

Expand your Network

Incorporate video of your work – it’s a powerful way to share your story in action! Check out animoto.com.

Connect with Faculty Connect with the Community

Strategies: Tips for presenting your idea through social networks

Be a Great Communicator

Identify your target audience and fine tune your marketing. Consider the following recommendations: Does my message stand out? There are MANY causes out there vying for the same peoples’ attention that you are. What makes your message special? How can you be unique?

What stories can I tell? People may have causes that are similar to yours, but the story about how you got involved is unique. Share it with people – they will respond!

Play to your strengths. Pay attention to what gets people excited, and market those aspects the most. Keep adjusting your plan to capture your audience’s attention and keep them coming back for more.

Be consistent. If you take up a twitter account, blog, or newsletter, stick with it! Once you’ve established a medium for communication, don’t fall off the map or out of the habit.

Set goals. Decide on the number of people you want to reach. Use free tools like Google Analytics or CrowdBooster if you want to pay close attention to these stats, often measured in unique site hits, followers, group members, or fans.

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BE A GREAT COMMUNICATOR JESSAMYN’S TOP 5 TWITTER FEEDS TO FOLLOW: @tactphil: Sean StannardStockton is the CEO of Tactical Philanthropy Advisors.

@fastcompany: Fast Company magazine’s unique blend of innovation, design, practical advice, inspiration.

@goodfeed: 3.SKILLS Work in a Team Expand your Network Connect with Faculty Connect with the Community Be a Great Communicator

GOOD is the global association of individuals, businesses, and nonprofits powering what works.

@guykawasaki: Twitter feed of one of the world’s most interesting entrepreneurs.

Twitter: How to make it work for you.

Want to Tweet? Tricks of the trade: Nobody cares about your breakfast. Twitter, at its best, is for sharing information – not the minute details of your life.

Over-tweeting is a real worry: Even if you have great stuff to say, people will resent you if you’re taking over their feed. Choose wisely and make your tweets count, or else your followers will dwindle.

Engage in the community. Twitter can be a creative, professional way to connect with people. Utilize it! People who only broadcast and don’t respond are less interesting to follow.

Want to follow? More tips: Be choosy: If you really plan on hearing what people have to say, don’t follow more than 150 people.

Mix it up: Jessamyn Lau, Program Leader at the Peery Foundation and Twitter guru, says, “The most exciting ideas for social entrepreneurship are at the periphery.” Lau recommends diversifying by following a mix of social entrepreneurs, funders, designers, marketers, local and global news sources, economists, business entrepreneurs, consultants, and issue experts.

Don’t get sucked in: With a Twitter feed that is constantly spitting out new information, it can be addictive. Pick a couple key times to check, and then stick to them.

Any active TEDx feed. “They regularly

Top Tags in Social Change: adapted from Tristan Pollock’s post on socialearth.org

highlight new ideas and people,” says Lau.

A hash tag is a “trending topic.” People who tweet often about a certain topic will “tag” their tweet accordingly. Looking up a hash tag will show you the entire feed of people conversing about that given topic.

Follow Jessamyn Lau, Program Leader at the Peery Foundation, @jessamynlau

#SocEnt: The ultimate tag for social entrepreneurship. #SocEntChat: A Twitter conversation hosted by Ashoka. #Nonprofit: For those NGO good works. #4Change: Profiles online technology, like social media, used for good. #v4change: Video for Change, simple as that. #m4change: Mobile for Change – highlighting mobile technology innovations. #SocialGood: Created by Mashable and the Summer of Social Good, this tag works for any socially conscious tweets. #Poverty: Use this tag to call awareness to, and monitor, stories of those in need.

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CHANGEMAKING 101

4.KICK IT OFF Get your campus engaged!

It’s time to put it all to use. Apply your knowledge, skills, and communication savvy to harness opportunities to create social change in your campus community. The most common approaches that students take are either to start a student organization about social entrepreneurship or to launch their own venture – in the spirit of learning by doing! Whatever approach you take, the goal is to get your campus community engaged with social entrepreneurship. This section provides inspiration through profiles, tips, and examples.

STUDENT ORGANIZATION PROFILES TUchangemakers at Tulane University TUchangemakers is a student group that acts as a platform for social innovation on campus. It works to help the Tulane community understand social entrepreneurship at all different levels – from introducing the concept of changemaking to supporting full-fledged social ventures. The team consists of graduate and undergraduate leaders that: Explore social innovation on campus and beyond Engage in creating positive social change

4.KICK IT OFF

Empower a network of student entrepreneurs focused on community solutions and sustainability, tulane.edu/socialentrepreneurship/

What does a social entrepreneurship student organization do?

Student Organization Profiles Activities for Student Organizations

Examples from Tulane University’s TUChangemakers program: Run workshops. Topics can include Social Entrepreneurship 101, Idea Generation, Sustainability, and Storytelling.

Start your Own Venture

Bring TEDx to campus. TEDxTU featured Tulane faculty, local social entrepreneurs, and Tulane students with a vision for social change.

Organize a venture development institute. Tulane’s Changemaker Institute, organized and led by students, brings students with social venture ideas together to develop action plans to launch their ventures.

Start a weekly newsletter. Spread innovation opportunities for people at all levels of interest.

Connect with other campus initiatives. The TUChangemakers club created the Green Team to connect to all activities focused on Tulane’s environmental efforts.

Highlight role models in the field. TUChangemakers’ Women in Innovation highlights women’s unique role in social innovation and introduces students to women working in the field.

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STUDENT ORGANIZATION PROFILES Student Center for Social Innovation (SCSI) at the University of Colorado at Boulder SCSI promotes and contributes to the field of social entrepreneurship through research, fieldwork, knowledge sharing, community networks, and start-up assistance for student social ventures. The group seeks to apply multi-disciplinary classroom knowledge to solving real world social problems through creative solutions, compassion and dedication.

Examples of opportunities that SCSI has offered students: Guest speaker series Student venture incubator Research opportunities with social entrepreneurs Resident Academic Program (RAP): live with students committed to social innovation!

4.KICK IT OFF

Special classes focused on social entrepreneurship

Student Organization Profiles

Events to stimulate interest around social entrepreneurship seedscu.weebly.com/about-scsi.html

Activities for Student Organizations Start your Own Venture

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STUDENT ORGANIZATION PROFILES Advice for Student Leaders in Social Entrepreneurship Adapted from Jenny Spencer, student leader of Student Center for Social Innovation at the University of Colorado at Boulder.

Be genuine. Don’t be drawn to social entrepreneurship because of the sexiness of the topic; rather remember the end beneficiaries— the people—you have in mind. Really remember what it is that you want to do or change, and be driven by that.

Find good faculty. Identify faculty allies with experience in the field that will challenge you. You don’t just want a cheerleader, but a mentor and source of constructive feedback.

Be entrepreneurial. Don’t be afraid to fail, and keep trying different ways of doing things. Pay attention to your context; this will help you find better ways to do something on your campus and in your community.

Take your time. Plan. The ideas that endure the test of time and planning are always the ones that work out best. As energetic students, we are willing to jump right in. However, don’t overlook the importance of a good action plan.

4.KICK IT OFF Student Organization Profiles

Be aware of your group’s capacity. Set realistic goals and deadlines, and agree upon tasks for different team members. It is better to start by doing a few things very well than to try to do at once.

Activities for Student Organizations Start your Own Venture

Surround yourself with a great group of colleagues, peers, and faculty. Being around inspiring people will inevitably be a lifechanging experience.

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STUDENT ORGANIZATION PROFILES SILT at Amherst College SILT, or the Social Innovation Leadership Team, is a branch of Amherst’s Center for Community Engagement. It aims to create and sustain a community that fosters innovative ideas that address pressing social and public issues. It does this by providing students with the tools to grow and sustain their innovative action ideas, projects, and organizations.

SILT’s Objectives: Create and sustain a campus that embraces social innovation and entrepreneurship.

Introduce students interested in social entrepreneurship to each other.

Teach students the practical skills they need to launch their own social venture.

Connect students to mentors that can help them develop their ideas into actionable plans.

4.KICK IT OFF Student Organization Profiles

Example Activities from Amherst College’s SILT:

Activities for Student Organizations

Teach an Inter-term Class. Led by an Amherst alum, this class took place over Inter-term, three weeks in January and consisted of optional, non-credit classes.

Start your Own Venture

Organize an Entrepreneurship Program. Targeted at highly committed students, participants take part in a series of workshops spanning the entire year, receive a one-on-one alumni mentor, and have access to other participant-only events such as a dinner with alumni venture capitalists.

Start a Pitch Competition. Co-sponsored by the Amherst College’s student government, this event shows students from all parts of campus that they are capable of coming up with innovative ideas.

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STUDENT ORGANIZATION PROFILES Arizona State University’s Changemaker Central Recently launched at Arizona State University (ASU), Changemaker Central (CC) is a student-run centralized resource hub for academic courses and extracurricular activities involving entrepreneurship, civic engagement, service learning and community service that catalyze student-driven change.

The Changemaker Central opened on all four of ASU’s campuses in Fall 2011 and serves as a key gathering space for students. Changemaker Central is student-run and advances ASU’s institutional commitments to being embedded in our local and global communities and valuing entrepreneurship.

4.KICK IT OFF

Change Agent Student Staff and Student Leadership Team

Student Organization Profiles

The role of the student ‘Change Agent’ at ASU’s Changemaker Central is to advance the mission and to assist in meeting the goals of Changemaker Central. As a Change Agent, students educate and empower other students to become involved in community service, service learning, high-impact careers, and entrepreneurship. Change Agents are paid by the hour and ensure that there is always a friendly face in the Changemaker space to greet students and connect them to resources.

Activities for Student Organizations Start your Own Venture

This handy acrostic outlines the roles of the Change “Agent” student staff: Approach students with friendly greeting Gather information about the reason for their visit Educate on ways to get involved Network – connect them to individuals and resources which can meet their needs Thank them for coming and encourage them to come back and check out what’s new!

Changemaker Central Student Leadership Team (SLT) The SLT is a group of 11 students from across the university that includes a director, vice director, and various chair positions for development, marketing, internal and external programming. The SLT works to ensure, and continuously develops, the successful execution of the mission and vision of CC. Find out more about Changemaker Central here: changemaker.asu.edu

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STUDENT ORGANIZATION PROFILES A Possible Student Organizational Structure Depending on the nature of your group, your student organization will need its own unique structure.

Here are some examples of different leadership roles that fill different needs your organization may have. Keep in mind that a single person can fill multiple roles in the early stages of growth.

DO WHAT’S RIGHT FOR YOUR CAMPUS!

4.KICK IT OFF Student Organization Profiles Activities for Student Organizations

“You probably won’t be able to transplant a successful leadership model straight from another campus. You’re going to have to find what’s right for you, with your campus culture, and your student body.”

-Jenny Spencer, University of Colorado at Boulder

PRESIDENT Role: Manage meetings, provide leadership, grow team, set vision Aka: Manager, Director

FINANCIAL OFFICER Role: Coordinate funds, develop fundraising strategy, maintain compliance with campus policies Aka: VP Finance, Treasurer

OUTREACH COORDINATOR Role: Raise awareness about events and initiatives, create buzz on your campus Aka: Marketing Director, VP Publicity, VP Communications

Start your Own Venture

COMMUNITY LIAISON Role: Develop relationships with community stakeholders, identify growth opportunities, make connections across campus Aka: External Relations, Community Outreach Director

COMMUNICATIONS DIRECTOR Role: Organization, streamlining communication, supporting administrative needs of the organization Aka: Secretary

MEMBERSHIP Role: Recruit members, keep active members engaged and excited, provide opportunities for development. This is a wise choice if you have a large organization or if you are trying to scale.

Aka: VP Member Development

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DIRECTOR OF PROGRAMS Role: Oversee the planning process of any events or programs.

If your organization hosts a lot of events, it may be wise to devote a leadership position to this task.

Aka: Event Planning, Events & Outreach, VP of Programs

ACTIVITIES FOR STUDENT ORGANIZATIONS Boost your opportunities for social entrepreneurship on campus through these great ways to excite your members, grow your organization, and expand your reach.

Plan an Ashoka U Social Change DIY Event Launch your own event to get more students excited about social entrepreneurship on your campus! We will provide everything you need to get started. Social Change DIY event templates are available for download at ashokau.org/resources.

What You Get: Customizable poster to market the event Customizable event flyer Powerpoint presentation that introduces the power and promise of social entrepreneurship on your campus 4.KICK IT OFF

Interactive activities that apply the concepts of social entrepreneurship

Student Organization Profiles

Checklist to assist with event planning Recommended communication avenues to promote the event

Activities for Student Organizations

Speaker and attendee invitation templates Sample agenda

Start your Own Venture

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ACTIVITIES FOR STUDENT ORGANIZATIONS Get Involved in a Social Innovation Competition There are a large number of social venture competitions across the country. Participating allows you to receive feedback on your own venture idea, connect with other social entrepreneurs, and compete for seed money! Alternately, by hosting a competition, you can make your campus a hub for changemaking.

For hosting an event, the following tips will help you get started.

Raise money and seek institutional support to run your own social innovation competition.

Ask for reserved funds from an existing business plan competition, if there is one, to give out a social venture award.

Contact knowledgeable host campuses that have held successful competitions and find out how they did it.

4.KICK IT OFF Student Organization Profiles Activities for Student Organizations Start your Own Venture

Spotlight on: Dell Social Innovation Competition “DSIC will fuel an international student movement focused on social entrepreneurship.”

–Suzi Sosa, director

The mission:

To help student entrepreneurs at every stage of ideation advance toward successful careers in social innovation.

The opportunities: Over $100,000 in seed grants, fellowships, and sponsorships to conferences like StartingBloc (see page 15), and mentorship.

“DSIC is really all about creating an enabling environment for social change on a global level. The enormous amount of support that the competition not only gives to the finalists but also to other promising ventures; the passion of the competition organizers; the great interaction with the other finalists and previous winners; all this made me realize that social entrepreneurship is about working together and helping one another.”

-DSIC Winner, Daniel Paffenholz (TakaTaka Solutions)

Want More Competitions? bizplancompetitions.com/competitions has the most extensive list of competitions we’ve seen so far. Check out the Social Entrepreneurship category!

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ACTIVITIES FOR STUDENT ORGANIZATIONS Ashoka’s Changemakers: Bringing competitions to a computer near you! changemakers.com Ashoka’s Changemakers is a global online community that hosts collaborative online competitions to identify and connect the best social innovators and implementers. Participants compete to surface the most promising solutions, and then collaborate to refine, enrich, and implement them.

A Sample Taste of Changemakers: The Competition: Sustainable Urban Housing The sponsors: Changemakers and The Rockefeller Foundation Number of entries: 288 Winners: Three – from Argentina, Brazil, and the United States.

Prize seed money: $10,000 each

Different ways to participate in a Changemakers competition: 4.KICK IT OFF

Vote to help choose the most innovative solutions

Student Organization Profiles

Compete! Submit a proposal to one of the ongoing competitions at changemakers.com Work with faculty to incorporate a Changemakers competition as a class project

Activities for Student Organizations Start your Own Venture

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ACTIVITIES FOR STUDENT ORGANIZATIONS Connect with a Social Entrepreneurship Conference The number of social entrepreneurship conferences is rapidly increasing worldwide. Participating in conferences is a great way to find out about the exciting initiatives that others are organizing and an opportunity to promote your own organization’s activities. The Social Entrepreneurship Education Resource Handbook lists a number of additional conferences, but here are just a few: Clinton Global Initiative U - A meeting where students, national youth organizations, topic experts, and celebrities discuss solutions to pressing global issues. cgiu.org The Feast - The Feast gathers the world’s greatest innovators from across industries and society to empower, inspire and engage each other in creating world-shaking change. alldaybuffet.org Global Engagement Summit - A training conference for students committed to global change. theges.org

4.KICK IT OFF Student Organization Profiles Activities for Student Organizations Start your Own Venture

Feeling ambitious? Make your social entrepreneurship organization into a national leader by hosting a one-day conference or ongoing lecture series. Start by researching the conferences and lecture series of other colleges and universities. You could attract some of the top thought leaders and social entrepreneurs to your campus.

Spotlight on: Ashoka U Exchange A gathering of 400 social entrepreneurship educators, students, practitioners, employers, and investors with one mission: to transform the educational experience into a worldchanging experience.

Attend experiential simulations and discussions about social entrepreneurship education Get connected with like-minded students Learn about leadership and career opportunities Meet outstanding practitioners and educators in the field Contribute your ideas to the movement!

“Of all the conferences I have attended, the AshokaU Exchange was among the very best. A phenomenal TEDx set a standard of excellence that remained throughout the Exchange, and the dynamic panel sessions surpassed my already high expectations.

When you add in the potential to have terrific conversations with hundreds of committed changemakers, the Ashoka Exchange was truly an event that is not to be missed.”

-Bill Babeaux, The Ohio State University, Business Builders Club

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START YOUR OWN VENTURE What big change do you want to make? What is keeping you from starting now? If you have the time and dedication, college is an unequalled opportunity to gain experience running every facet of a venture: identifying a social need, developing a new idea, creating a plan for implementation, performing comparative research, launching the social venture, and responding to challenges.

Developing a Social Business Plan

By Debbi D. Brock, Anderson University Are you interested in designing a nonprofit, a for-profit venture, or a hybrid organization that can address a social need? The first step is to develop a sustainable business plan.

Social Business Plan I. Executive Summary Provide a summary of the key elements in the plan.

II. Theory of Change

NEED INSPIRATION? SEE THE SPOTLIGHT ON PAGE 38 ON HOW TWITTER AND A CROWDSOURCING WEBSITE HELPED ONE STUDENT LAUNCH HER OWN VENTURE!

4.KICK IT OFF Student Organization Profiles

What is the end impact your organization seeks to achieve?

III. Sustainable Social Venture Business Model

Activities for Student Organizations

A sustainable social venture model describes how the social venture solves the social problem and does it in a sustainable way.

A. Social Business Opportunity

Start your Own Venture

Value Proposition: How does our organization create value?

B. Service Beneficiaries Value Creation and Marketing Plan Who are the beneficiaries and how do we plan to reach them?

C. Management Team Infrastructure Who will serve the beneficiaries?

D. The Operations Plan How can you do what you do better?

E. Creating a Sustainable Financial Plan How do you make money/breakeven?

F. Galvanizing Resource Model How do you do more with less?

IV. Social Impact Plan Value Added: How much social value can our organization create?

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START YOUR OWN VENTURE StartSomeGood What it is: An online community that crowdsources money and resources for aspiring social entrepreneurs.

Words from founder Alex Budek: When I tried to launch my first social venture, I realized there was a big gap between my good idea and its implementation: I lacked the necessary resources. Then I thought, “If I’m having this issue, perhaps others are, too.” Thus, StartSomeGood was born. By helping changemakers to overcome initial barriers like funding or organizational structure, we empower them to pursue their visions and, quite literally, to “start some good.”

4.KICK IT OFF Student Organization Profiles Activities for Student Organizations

Alex’s call to action: If you have that idea for how you want to improve the world – you know, the one that you keep thinking of, that you just can’t shake – it might be time to make it a reality. StartSomeGood is a platform for helping social good initiatives raise funds and grow a community of supporters.

We’d love to have you apply to run a campaign! To Start Some Good for yourself, check it out at startsomegood.org and click on “Start Good.”

startsomegood.org

Start your Own Venture

SOCIAL MEDIA MATTERS! “I found out about StartSomeGood through a tweet…it’s been the biggest source of funds for the [blank] canvas so far.”

-Heather Hingston, the [blank] canvas

Student in Action: Heather Hingston, the [blank] canvas The Problem. A lack of spaces in her home state of Delaware that foster creativity and community. The [blank] canvas, a collaborative space for artists, provides a venue for local performers.

The Partnership. “I found out about StartSomeGood through a tweet from Compass Partners, so I checked them out. I found that it really fell in line with social entrepreneurship and it could be a big help to me once I was ready to start my venture. It’s been the biggest source of funds for the [blank] canvas so far, and it has helped us to reach out to people in my community and beyond.”

Heather’s advice for aspiring social entrepreneurs. “Starting your own venture is hard. There will be people that will dismiss your idea, and there will be many opportunities to doubt yourself – but at the end of the day, if it’s worth it, it will all work out. Just remember why you’re doing this: to ‘be the change you wish to see in the world!’”

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START YOUR OWN VENTURE Youth Venture Youth Venture inspires and invests in teams of young people to design and launch their own lasting social ventures, enabling them to have a transformative experience in leading positive social change. Youth Venture helps Venturers by: Providing guidance and mentors in the field Sharing a network of fellow Youth Venturers Seed funding of up to $1,000 Identity as part of movement toward youth-led social change After the team has launched, Youth Venture continually works to stay involved with the team, bringing Venturers into a fellowship of like-minded young people.

genv.net

My venture was called Computer Greenhouse, which worked to repurpose and recycle computers. Through Youth Venture, I learned that through changing your community, you are changing yourself along the way, too.

Many of the lenses I use to view the world are a result of what I learned through Youth Venture.”

-Daniel Casey, student, College of William and Mary

4.KICK IT OFF Student Organization Profiles Activities for Student Organizations Start your Own Venture

Compass Partners compasspartners.org A year-long social entrepreneurship fellowship program for student social entrepreneurs, equipping them with the skills needed to launch ventures and providing a supportive peer group.

Compass grew organically out of previous failures of its founders: “Student entrepreneurs at universities really lack a few critical things: the support of a community of like-minded people, access to professionals and resources, and a practical curriculum tailored to developing entrepreneurs. We educate students across the country about social entrepreneurship, foster world-changing values, and open their minds to the immense possibilities of social business.”

-William Huster, VP Communications

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5.BRANCH OUT! Team up with national and international organizations These national organizations are examples of social entrepreneurship in many different fields.

Find the chapters on your campus – or start one!

ISSUE: MICROFINANCE AND SOCIAL ENTERPRISE Campus Kiva campuskiva.org Campus Kiva gives students the opportunity to play a direct role in changing lives through microfinance. Their mission is to educate students about the potential impact of microfinance and to encourage micro-lending through Kiva’s lending teams. Campus Kiva has grown to over 20 university campuses world-wide. Don’t miss this great TED talk

by Jessica Jackley, co-founder of Kiva! (18:34) www.ted.com/talks/lang/eng/jessica_jackley_poverty_money_and_ love.html

5.BRANCH OUT Issue: Microfinance & Social Enterprise

What You Get:

Infrastructure and resources to establish a permanent Campus Kiva presence at your college or university. Opportunities to participate in a variety of collaborative activities and competitions.

Issue: Health Issue: International Leadership Issue: Hunger Issue: Poverty

“It has opened my eyes to the possibilities of a new business model for the 21st century.”

– Kyra Doolan, Claremont Graduate University

Net Impact netimpact.org Through events at campus chapters, conferences, and more, Net Impact helps students and professionals discover how business careers can be used for good. It provides opportunities for members to create social and environmental change on campus and in the workplace.

What You Get:

An international network of 20,000 students and professionals with over 200 chapters, network-wide programs with centralized support, and a well-respected name and brand to attract speakers and resources.

“Net Impact helps me think more creatively about how business can impact the environmental and social sectors. In my MBA experience, Net Impact has exposed me to the jobs, networks, issues and companies to explore.”

– Natalie Schaffer, graduate student member

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ISSUE: HEALTH FACE AIDS faceaids.org A national non-profit founded by students in 2005, FACE AIDS employs and empowers HIV-affected Zambians and Rwandans through credit, savings, and business training programs. Thousands of students administer leadership skills training, psycho-social support, HIV/AIDS prevention education and peer educator training.

“Young people often bear the brunt of the devastating impact of HIV/AIDS. I applaud FACE AIDS for their leadership in engaging youth from around the world on this pandemic.”

- President Bill Clinton

5.BRANCH OUT Issue: Microfinance & Social Enterprise

ISSUE: INTERNATIONAL LEADERSHIP

Issue: Health Issue: International Leadership

AIESEC aiesec.org The world’s largest student-driven organization, AIESEC (pronounced “eye-sec”) is present in over 107 countries and territories and has over 50,000 members. It focuses on providing a platform for youth leadership development and engages young people with the opportunity to participate in international internships, designed for leadership and learning. If you’re interested in bringing an international component to your work, AIESEC is a great start.

AIESEC works to provide a welcoming environment that facilitates a positive international travel experience. By giving young people international leadership early in their career, they will be well-equipped for a future in international development.

Issue: Hunger Issue: Poverty

– Shirley Ma, University of Michigan

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ISSUE: HUNGER Campus Kitchens Project campuskitchens.org Campus Kitchens teams up with local restaurants and campuses to turn unused food into donated meals. Fight hunger while reducing food waste! Join more than 30 campuses that have started a CKP with their unused food.

Campus Kitchens profile: Axle Brown Axle Brown helped launch the CKP at Johns Hopkins University. CKP helped prepare him for his job as an analyst for the U.S. Department of Energy.

“The great thing about CKP is that you learn first-hand about food insecurity, but you are also given the tools to take that knowledge to the next level, as I did with the Obama administration. You will learn how to be entrepreneurial within a system that already exists, and that is an important skill to have.”

5.BRANCH OUT Issue: Microfinance & Social Enterprise

Axle’s advice to college students:

Issue: Health

“Take an entrepreneurial mindset to your education – it’s YOURS. Don’t have the mentality that it’s going to be given to you. Instead, seek out opportunities for collaboration, leadership, and challenge.”

Issue: International Leadership Issue: Hunger

“Students are busy people. We balance numerous, competing demands on our time, but we all come together through food. You can harness this commonality to achieve social good. By championing change in the dining hall, you can address pressing social and environmental concerns (and possibly save your school money in the process!). Arguing for smaller portions, going tray-less, or donating excess food, small actions can add up to significant social benefit for you, your community, and, indeed, the world.

“-Tommy Tobin, student, Stanford University

Issue: Poverty

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ISSUE: POVERTY Nourish International

2011: NOURISH

nourishinternational.org

Money raised: $63,000

During his work with an Ashoka Fellow in Guatemala, Ryan Richards was blown away by a particular group of volunteers: those from Nourish International. “They were wise, humble, and audacious, all at the same time,” says Richards. After seeing a listing through the StartingBloc community, Richards now serves as the Executive Director.

Hours of labor: 19,000

Nourish was started by college students seeking to have an impact on global poverty. Through Nourish, students raise money by running businesses during the school year. Then, they invest those funds into projects in partnership with community-based development organizations abroad.

Number of projects: 14 Number of countries: 10

“Society’s problems are entrenched and complex,” says Richards.

“Nourish International is equipping the rising millennial generation with the tools it needs to address them.”

5.BRANCH OUT

Nuru International nuruinternational.org As Nuru sees it, you will never have a world without terrorism and insurgency until you have a world without poverty. Nuru aims to eradicate extreme poverty by holistically empowering rural communities.

Host a Be a Hope to Her (BH20+) walk to spread awareness and raise funds for development in Kenya. Participants walk with a bucket of water on their heads to learn the importance of water to citizens of the developing world.

“Whether your passion is community economic development, healthcare, water sanitation, agriculture, research, or leadership training, you can find your niche at Nuru and truly make a measurable, sustainable difference. The Nuru creed is that we can all join the fight against poverty.”

Issue: Microfinance & Social Enterprise Issue: Health Issue: International Leadership Issue: Hunger Issue: Poverty

-Jaime Gusching, Ohio State University

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6.ONWARD Changemaking after college Where do you go from here? What happens after you have your diploma? The citizen sector is rapidly growing, and an increasing number of young people are making careers out of social change. Read more to find out how to make social change part of your job description.

Ask yourself the big questions. Find a way to articulate what you are searching for. Ask yourself: When do I feel most alive and useful in this world?

What issue or change am I most passionate about?

In what moments of my life have I felt like I was doing exactly what I should be doing?

STRATEGIES FOR SUCCESS

5.ONWARD

Tap into your networks! Who knows about the field you want to go into? Consider these groups of people to contact about job opportunities, career advice, tips, and more. An entrepreneurial person takes advantage of resources – the people you know are your bigest allies:

Strategies for Success

Professors and staff on your campus

Career Search Resources

Peers in the workforce

Internship and Volunteer Opportunities Graduate Study Opportunities

Experts in your field of interest Practicing social entrepreneurs Your school’s career center Alumni Your friends who have interned with social change organizations

CAREER SEARCH RESOURCES GOING DEEPER IN YOUR SEARCH? CHECK OUT “WORK ON PURPOSE” BY LARA GALINSKY AND KELLY NUXOLL.

This book includes inspiring stories of how people found their purpose, with guiding questions to help readers combine their passion and skills into a career they will love.

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Commongood Careers cgcareers.org Commongood Careers focuses on recruiting talent for a variety of positions at citizen sector organizations and with leading social innovators.

Haas Center for Public Service Database haas-fmp.stanford.edu An extensive database of fellowships and internships that range from a summer to two years. Sort by deadline date, location, focus area, and more.

CAREER SEARCH RESOURCES Idealist idealist.org Idealist is a well established platform for job and internship postings, intended for people who want to do good in the world. It also serves as a place to collect resources, ideas, and recruit partners for your own projects.

Jobs for Change jobs.change.org Sparking a movement toward careers in the nonprofit, government, and social enterprise sectors.

Net Impact Job Seeker netimpact.org

SEE PAGE 40 FOR A FEATURE ON NET IMPACT.

â&#x20AC;&#x153;Staying abreast of job postings on Idealist. org helps me track growing career fields in the non-profit sector.

It even connected me with the job opening that allowed me to join Ashoka.â&#x20AC;?

-Michele Leaman, Ashoka U 5.ONWARD

Postings for positions working with socially and environmentally responsible organizations, startups, nonprofits, and internship opportunities. A paid membership provides access to the job board.

Strategies for Success Career Search Resources

SocialEdge

Internship and Volunteer Opportunities

socialedge.org/features/job-listings

Graduate Study Opportunities

SocialEdge, a program of the Skoll Foundation provides an updated listing of social entrepreneurial organizations that are seeking full- and part-time employees, as well as interns.

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INTERNSHIP AND VOLUNTEER OPPORTUNITIES WANT MORE? THE BEST DATABASE OF PROFESSIONAL DEVELOPMENT, CAREER PREPARATION, INTERNSHIPS, AND MORE THAT WEâ&#x20AC;&#x2122;VE FOUND SO FAR: ECHOING GREENâ&#x20AC;&#x2122;S WORK ON PURPOSE RESOURCES

www.echoinggreen.org/ work-on-purpose/resources

Ashoka Internships www.ashoka.org/internships Experience social entrepreneurship at its best by collaborating with fascinating, inspired and dynamic innovators who are at the forefront of social change. Find opportunities with a variety of teams, from searching for new fellows to improving social entrepreneurship education!

Ashoka Fellow Volunteer Opportunities www.ashoka.org/volunteer/fellows As an Ashoka volunteer, you become a vital part of this dynamic and growing movement for systemic change around the world. Experience social entrepreneurship at its best by collaborating with fascinating, inspired and dynamic innovators who are at the forefront of social change. Opportunities are organized by region.

5.ONWARD

Coro Fellowship

Strategies for Success

www.coro.org

Career Search Resources

Coro offers a full-time, nine month, graduate-level experiential leadership training program that prepares committed individuals for effective and ethical leadership in the public affairs arena.

Internship and Volunteer Opportunities Graduate Study Opportunities

New Sector Alliance www.newsector.org The New Sector Alliance Residency in Social Enterprise is a year-long program that provides participants the opportunity to lead substantive capacity-building projects for an organization focused on social or environmental impact.

Social Entrepreneur Corps www.socialentrepreneurcorps.com Founded by an Ashoka Fellow, Social Entrepreneur Corps pairs internships and volunteering opportunities with the perspectives, skills, and knowledge needed to become a social entrepreneur in the future.

Participants work with Community Enterprise Solutions to advance MicroConsignment in Guatemala, Ecuador, Nicaragua, South Africa, and other countries.

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INTERNSHIP AND VOLUNTEER OPPORTUNITIES Spotlight on: ThinkImpact—Teaching the Promise of Social Entrepreneurship In a search for a way to build classrooms in South Africa, Saul Garlick discovered social entrepreneurship. Now, he works to help other college students explore social innovation, too.

Saul Garlick is the founder of ThinkImpact, which helps connect students with opportunities to make a global impact. The signature program of ThinkImpact is the Innovation Institute, a 10week program that sends college students to work with rural villages in developing countries.

Saul’s first venture included a shoebox and a goal to help children in Afghanistan. Later, in rural South Africa, he learned more sustainable ways to help people – and raised $10,000 in the process. Recognizing the need for students to understand practices of social entrepreneurship in real-life contexts, ThinkImpact was born. “We combine our deep appreciation for existing local assets with design thinking for social innovation – and the result is prototypes of products and services that can change the world.” The program is currently offered during the summer.

Want to join in?

5.ONWARD

Saul says: “We love energized, open minded young leaders who are interested in being at the forefront of social change and economic development!”

Strategies for Success Career Search Resources

thinkimpact.org

Internship and Volunteer Opportunities Graduate Study Opportunities

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EXPLORE GRADUATE STUDY OPPORTUNITIES Clark University (US) MBA in Social Change Colorado State University (US) Masters in Global Social and Sustainable Enterprise Copenhagen Business School (DENMARK) Minor in Social Entrepreneurship Duke University (US) Center for Advancement of Social Entrepreneurship Hult International Business School (UK) Masters in Social Entrepreneurship INSEAD (FRANCE) Social Entrepreneurship Initiative Instituto de Estudios Sup. De Administracion (VENEZUELA) MBA in Management & Social Entrepreneurship Liverpool John Moores University (UK) Masters in Social Enterprise Management 5.ONWARD Strategies for Success Career Search Resources Internship and Volunteer Opportunities Graduate Study Opportunities

New York University (US) Program in Social Entrepreneurship, Social Innovation & Impact Specialization Oxford University Saïd Business School (UK) Skoll Center for Social Entrepreneurship Stanford University Graduate School of Business (US) Center for Social Innovation Southeast Asia Interdisciplinary Development Institute (PHILIPPINES) Ph.D. in Organization Development, Social Entrepreneurship

University of Barcelona (SPAIN) Master’s in Social Economy and Management of Non-Profit Organizations University of Cambridge (UK) Master’s in Social Enterprise and Community Development University of Colorado at Boulder (US) Sustainable Venturing Initiative University of the Pacific (US) Social Entrepreneurship Certificate

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ABOUT Algernon Sydney Sullivan Foundation Our Mission Since 1934, the Algernon Sydney Sullivan Foundation has taken as its primary mission the inspiring of young people to lead lives of integrity, characterized by service above self and service to the community. The Foundation has sought to accomplish this goal in two ways: 1) through awarding scholarships to deserving college students and 2) through presenting awards to graduating college seniors who have distinguished themselves in service to others and service to the community.

Algernon Sydney Sullivan and Mary Mildred Sullivan Award Program The Algernon Sydney Sullivan and Mary Mildred Sullivan Awards were created to honor two upstanding citizens, husband and wife, who lived lives of exemplary service in New York City in the late 1800s. The awards are given annually by the Algernon Sydney Sullivan Foundation to recognize individuals whose “nobility of character” and dedication to service sets them apart as examples for others.

The Algernon Sydney Sullivan Foundation facilitates annual awards on 54 college and university campuses, mostly in the Appalachian region of the southeastern U.S. Participating colleges and universities may present the awards to students and to alumni or community members who meet the award criteria. Sullivan awards are highly prized, and over the years have been bestowed on a diversity of people who have proven their ability to live up to the standards set by this honor. Past recipients of the Algernon Sydney Sullivan or Mary Mildred Sullivan Awards range from Eleanor Roosevelt to Fred Rogers, noted star of children’s television.

ABOUT Sullivan Foundation Ashoka

Algernon Sydney Sullivan Scholarship Program For nearly 100 years, the Algernon Sydney Sullivan Foundation has also awarded scholarships to students at 31 small private colleges and universities, mostly in the Appalachian region of the southeastern United States. Currently, the Foundation awards approximately $1 million annually in scholarship funds to participating schools, and has established endowment funds at most schools to help support the scholarship program.

The Algernon Sydney Sullivan Scholarship is awarded to rising juniors and covers at least 50% of their tuition cost for their junior and senior year. Students are awarded the scholarships based on their personal character and integrity, their service to others and to their community, and their ability to inspire others to lives of character, integrity and service. Sullivan Scholarships are not awarded on the basis of financial need, nor for academic or athletic achievement.

Our New Initiative: Social Entrepreneurship Program Recently the Foundation chose to expand its programming and further its mission by actively engaging students and faculty to explore their role in addressing and solving social problems.

The Foundation developed The Sullivan Foundation’s Service & Social Entrepreneurship Scholars Program, in partnership with Ashoka U, to encourage young people to become agents of change in the social sector.

The Foundation is committed to encouraging and supporting colleges in the southeast to become enabling environments for social entrepreneurship and changemaking. Together with Sullivan college partners, the Sullivan Foundation seeks to engage young people to pursue social entrepreneurial opportunities, leverage resources, create social value, and become agents of change in the social sector. The result will be a generation of leading Southern problem-solvers and a stronger, more vibrant and equitable Appalachian region.

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ABOUT About Ashoka What is Ashoka?

Ashoka: Innovators for the Public, is an organization founded in 1980 to support a global network of leading social entrepreneurs. Today, this network includes 2,500 Ashoka Fellows in over 70 countries.

Ashoka envisions an Everyone a Changemakerâ&#x201E;˘ world. A world that responds quickly and effectively to social challenges, and where each individual has the freedom, confidence and societal support to address any social problem and drive change.

About Ashoka U Where universities transform the educational experience into a world changing experience.

What is Ashoka U? ABOUT Sullivan Foundation Ashoka

Ashoka U is a program of Ashoka: Innovators for the Public. The idea for Ashoka U emerged from the realization that 2,500 Ashoka Fellows were not going to be enough. With the rate of global change on exponential rise, we need more social entrepreneurs and changemakers across all of society. Ashoka sees colleges and universities as key strategic partners in reaching an Everyone a Changemaker world.

Why Ashoka U? Launched in 2005, Ashoka U works to strengthen social entrepreneurship in higher education by disseminating key knowledge and resources, recognizing innovation, and facilitating collaboration between institutions of higher education, and with social entrepreneur practitioners.

To date, Ashoka U has connected with nearly 600 colleges and universities globally to spark a dialogue about how higher education can better prepare the next generation to solve the global challenges of our time. In this work, administrators, professors, staff, and students have emerged as the key partners to make our vision a reality.

We want your feedback!

We encourage you to send comments to the Sullivan Foundation and Ashoka U at admin@sullivanfdn.org and ashokau@ashoka.org.

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CHANGEMAKING 101

Changemaking as an attitude: Remember that, above everything, social entrepreneurship is not just a fancy term or an emerging field. It is a way of approaching problems, and insisting that change can happen. Says Josh Goldman of Denison University: “Social entrepreneurship is not something that you learn and then use only for a career. It is about developing a complete set of skills—foremost among them critical thinking—that is rooted in a sense of ethics. Those skills will inform my perspective, my relationships, and my work on projects big and small throughout my life.”

TOOLKIT 2ND EDITION

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WATER Storage anD transportation, india

INCREASING FARMER INCOMES, CAMBODIA

encouraging technology adoption, kenya

TABLE OF Contents Introduction Why Do Human-Centered Design?

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The Three Lenses of Human-Centered Design

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The HCD Process 8 How to Use this Toolkit

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BEST PRACTICES FOR Innovation

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Scenarios of Use 14

Hear The Hear section will guide you through the process of preparing for research with constituents using HCD methodology.

Step 1:

Identify a Design Challenge 34

Step 2: Recognize Existing Knowledge

39

Step 3: Identify People to Speak With

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Step 4:

Choose Research Methods 42

Method: Individual Interview 42 Method: Group Interview 44 Method: In-Context Immersion 46 Method: Self-Documentation 50 Method: Community-Driven Discovery 53 Method: Expert Interviews 55 Method: Seek Inspiration in New Places 57

Step 5:

Develop an Interview Approach

Method: Interview Guide 58 Method: Sacrificial Concepts 60 Method: Interview Techniques 64

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Step 6: Develop Your Mindset 66

Mindset: Beginnerâ&#x20AC;&#x2122;s Mind 66 Mindset: Observe vs. Interpret 68

Create The Create section will help you translate what you learned in the field into concrete solutions.

Step 1: Develop the Approach 84

Method: Participatory Co-Design 84 Method: Empathic Design 89

Share Stories 92 Step 2: Step 3:

Identify Patterns 94

Method: Extract Key Insights 94 Method: Find Themes 98 Method: Create Frameworks 100

Step 4:

Create Opportunity Areas

102

Step 5:

Brainstorm New Solutions

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Make Ideas Real 106 Step 6: Step 7: Gather Feedback 108

Deliver The Deliver section will give you the tools to go from ideas and prototypes to solutions and plans that can be implemented. It will also help you create a learning plan to measure and continue iterating on your designs.

Step 1:

Develop a Sustainable Revenue Model

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Step 2:

Identify Capabilities for Delivering Solutions

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Step 3: Plan a Pipeline of Solutions

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Create an Implementation Timeline

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Step 5: Plan Mini-Pilots and Iteration

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Step 6:

Create a Learning Plan

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Method: Track Indicators 146 Method: Evaluate Outcomes 148

Step 4:

FIELD GUIDE 154 The Field Guide contains worksheets that will help you to prepare for and conduct field research. The Field Guide and the Aspirations Cards, are all you will need to take to the field with you.

AN INTRO DUCTI ON AN INTRO

H Introduction Human Centered Design

Are you looking to...

Bring innovation to the base of the pyramid? Enter a new region?

Adapt a technology to your region?

Understand the needs of constituents better? Find new methods for monitoring and evaluation?

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H Introduction Human Centered Design

This toolkit was made for you.

It contains the elements to Human-Centered Design, a process used for decades to create new solutions for multi-national corporations. This process has created ideas such as the HeartStart defibrillator, CleanWell natural antibacterial products, and the Blood Donor System for the Red Crossâ&#x20AC;&#x201D;innovations that have enhanced the lives of millions of people.

Now Human-Centered Design can help you enhance the lives of people living on less than $2/day.

This process has been specially-adapted for organizations like yours that work with communities in need in Africa, Asia, and Latin America.

Human-Centered Design (HCD) will help you hear the needs of constituents in new ways, create innovative solutions to meet these needs, and deliver solutions with financial sustainability in mind.

Letâ&#x20AC;&#x2122;s get started.

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D Introduction Human Why DoCentered HCD? Design

Why do Human Centered Design?

Because it can help your organization connect better with the people you serve. It can transform data into actionable ideas. It can help you to see new opportunities. It can help to increase the speed and effectiveness of creating new solutions.

H Introduction Why Do HCD?

We are excited about our ability to continue replicating the Human-Centered Design process to create and bring to scale new approaches to provide eye care in the developing world.

—VISIONSPRING, INDIA HCD surprised us because even people who didn’t know a lot about the topic were able to create so many solutions.

—IDE Vietnam

Why a toolkit?

Because the people are the experts.

They are the ones who know best what the right solutions are.

This kit doesn’t offer solutions. Instead, it offers techniques, methods, tips, and worksheets to guide you through a process that gives voice to communities and allows their desires to guide the creation and implementation of solutions.

Because only you know how to best use it.

Human-Centered Design is a process broken into a set of tools.

This is so that you can pick and choose which techniques work best for your context and your situation. Use it alone or along with PRISM, value chain analysis, PRA, triangulation or other methods you use in your organization to imagine and implement new ideas.

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D Introduction The Three Lenses of Human Centered Design

THE THREE LENSES OF HUMAN-CENTERED DESIGN Human-Centered Design (HCD) is a process and a set of techniques used to create new solutions for the world. Solutions include products, services, environments, organizations, and modes of interaction.

The reason this process is called â&#x20AC;&#x153;human-centeredâ&#x20AC;? is because it starts with the people we are designing for. The HCD process begins by examining the needs, dreams, and behaviors of the people we want to affect with our solutions.

We seek to listen to and understand what they want. We call this the Desirability lens. We view the world through this lens throughout the design process.

Once we have identified a range of what is Desirable, we begin to view our solutions through the lenses of Feasibility and Viability. We carefully bring in these lenses during the later phases of the process.

D esira b ilit y

FEASIBILIT Y

Via b ilit y

What do people desire?

What is technically and organizationally feasible?

What can be financially viable?

H Introduction The Three Lenses of Human Centered Design

Start Here

D esira b ilit y

FEASIBILIT Y

Via b ilit y

The solutions that emerge at the end of the Human-Centered Design should hit the overlap of these three lenses; they need to be Desirable, Feasible, and Viable.

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D Introduction The HCD Process

THE HCD PROCESS The process of Human-Centered Design starts with a specific Design Challenge and goes through three main phases: Hear, Create, and Deliver. The process will move your team from concrete observations about people, to abstract thinking as you uncover insights and themes, then back to the concrete with tangible solutions.

HEAR

During the Hear phase, your Design Team will collect stories and inspiration from people. You will prepare for and conduct field research.

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Introduction The HCD Process

C R E AT E

In the Create phase, you will work together in a workshop format to translate what you heard from people into frameworks, opportunities, solutions, and prototypes. During this phase you will move together from concrete to more abstract thinking in identifying themes and opportunities, and then back to the concrete with solutions and prototypes.

DELIVER

The Deliver phase will begin to realize your solutions through rapid revenue and cost modeling, capability assessment, and implementation planning. This will help you launch new solutions into the world.

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Abstract

Concrete

To recall these phases, simply remember H-C-D.

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D Introduction How to Use this Toolkit

HOW TO USE THIS TOOLKIT This toolkit will guide you through an innovation process based on HCD methodology.

H Introduction How to Use this Toolkit

A FLEXIBLE TOOLKIT Using this toolkit on its own will yield great solutions.

However, HCD is also very flexible and can complement or be supplemented by various other approaches.

Methods such as Participatory Rural Appraisal (PRA), Subsector/Value Chain Analysis and Triangulation can all be incorporated into the HCD methodology provided here. For example, your Design Challenge may necessitate knowing about the mapping of village resources. If a team member is familiar with a PRA method effective for gathering this kind of information, it should absolutely be incorporated into the process.

So be creative and rigorous in choosing and mixing your methods – the best outcomes might come from the most unexpected combinations!

TIP

WATCH OUT

There is the “facilitator” version of the Toolkit. If you are the facilitator, use the notes provided to you in the margins as rough instructions of how to move your team forward through the innovation process. Please add any additional instructions, methods, or techniques you feel would be relevant to your design challenge.

The facilitator must user his/her power wisely.

The facilitator is a role to lead the team through the process; this person can certainly contribute to the content of the ideas, but should not use his/her power to sway decisions.

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D Introduction Best Practices for Innovation

BEST PRACTICES FOR Innovation By completing thousands of innovation and design challenges, IDEO has learned a few rules for creating an environment to facilitate innovation.

See if any of these can be applied to your organization.

H Introduction Best Practices for Innovation

Multi-Disciplinary TeaMS The challenges you face are very complex and are likely to have been explored by predecessors. You will have a higher likelihood of success at solving such complex, difficult, and already-examined problems by intentionally assembling the right team of people. This team will work best if it consists of a core group of 3-8 individuals, one of whom is the facilitator.

By mixing different disciplinary and educational backgrounds, you will have a better chance of coming up with unexpected solutions when these people approach problems from different points of view.

Dedicated Spaces Having a separate project space allows the team to be constantly inspired by imagery from the field, immersed in their post-it notes, and able to track the progress of the project. If possible, find a dedicated space for your design team to focus on the challenge.

Finite Timeframes Many people notice that they work best with deadlines and concrete timelines. Likewise, an innovation project with a beginning, middle, and end is more likely to keep the team motivated and focused on moving forward.

To ensure that there is a balanced gender perspective, involve female staff in all phases of this process.

TIP

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SCENARIOS OF USE The following Scenarios of Use help to outline four possible ways to use this toolkit for innovation. The first two scenarios utilize the principle of finite timeframes to frame the entire challenge, while the latter two demonstrate how small sections of the toolkit can be used to provide motivation, concrete goals, and a path to getting unstuck in longer-term programs.

H Introduction Scenarios of Use

Scenario 1: The Week-Long Deep Dive This mode of engagement forces the design team to work quickly to gather and analyze data, then moves rapidly to solutions, prototypes and plans. The one-week timeframe is a familiar timeline that is long enough to gain good understanding, yet short enough to allow a stressed organization to put limited resources against a challenge.

This format is good for early-phase learning and for spurring new thinking.

Use When You: » Need to learn about a new area or challenge quickly. » Need to kick-start thinking about a long-standing intractable problem. » Want to refresh the thinking of the staff.

Pull Out and Use: » All sections of the Toolkit in sequence.

TIP

Know the limitations of your data and your early prototypes when doing a Week-Long Deep Dive.

If validity is necessary without much time for research, use secondary data to triangulate your findings. Build a plan for iterating early prototypes for future refinement.

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Scenario 2: The several-month Deep Dive A longer Deep Dive can last several weeks to several months. This mode of use enables a deeper, more nuanced understanding and theorization of a complex challenge or problem. With a longer time frame, more locations can be examined and more stakeholders in the value chain can become participants in the process.

Use When You: » Need to design robust solutions because the funds for implementation are available. » Have the resources to allocate on thinking through a multi-faceted challenge. » Need to engage many actors in the process, such as partners, value chain stakeholders, funders, etc.

Pull Out and Use: » All sections of the Toolkit, allowing the nature of the Challenge to dictate the appropriate timeframes for each Phase.

TIP

When you have more time for a Deep Dive, it may be tempting to spend the vast majority of time doing more research. Pay attention and notice when you are hitting decreasing returns and stop the research when you are learning little new information. Remember— in the early stages, you are doing research to understand the problem and inspire the team. There will be time to validate later.

H Introduction Scenarios of Use

Scenario 3: activating already-existing knowledge Often organizations have a great deal of research and already-existing information but are unable to translate all that information into actionable solutions. In this case, the processes outlined in Create and Deliver can help your team transform what you know into things you can start doing.

Use When You: » Have a lot of data and you don’t quite know what to do with it. » Have been hearing interesting stories from the field staff and want to see if those stories can yield new opportunities or solutions. » Have a robust research methodology that you like better than the one in this toolkit.

Pull Out and Use: » Create » Deliver

TIP

Even if you have the information captured in a different form (in Word documents, for example), take the time to translate that information through the Story Sharing methods outlined in the first part of the Create booklet.

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Scenario 4: complementing EXISTING long-term activities Many HCD methods are applicable at different times to the challenges your organization will face in Technology Adaptation, Monitoring & Evaluation, etc. We hope that you will find some of the techniques useful in infusing the spirit of innovation in your day-to-day activities, even when there is no explicit Design Challenge at hand. Pick and choose your methods as you wish to help complement your daily work.

Use When You: » Want a new technique to add to your work routines. » See a method in this toolkit that you find applicable to the daily challenges you face. » Can’t set aside the resources for an HCD project, but want to infuse the spirit of Human-Centered Design in your everyday work.

Pull Out and Use: » Any pieces of your choosing.

TIP

For example, if you’re working on adapting an existing technology and have already-existing information about the context you want to adapt to, use Steps 3, 4, 5, and 6 in the Create book to guide you through several iterations of opportunity identification, brainstorming, prototyping, and user feedback.

On the other hand, if you are looking for help in gathering data for M&E reporting, use the exercises in the Field Guide to supplement your current activities.

SCENA RIOS OF USE H

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IMPROVING ACCESS TO ECONOMIC RESOURCES, MONGOLIA

ENGAGING COMMUNITIES IN DESIGN, RWANDA

WATER STORAGE AND TRANSPORTATION, INDIA

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hear: GOALS Designing meaningful and innovative solutions that serve your constituents begins with understanding their needs, hopes and aspirations for the future.

The Hear booklet will equip the team with methodologies and tips for engaging people in their own contexts in order to understand the issues at a deep level.

Goals of this book are to guide:

» Who to talk to » How to gain empathy » How to capture stories

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Great technique for getting farmers to tell stories.

â&#x20AC;&#x201D;IDE zambia

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hear: OUTPUTS At the end of the Hear section, prepare to go to the field by completing these worksheets from the Field Guide: Recruiting Plan Research Schedule Identity, Power & Politics Group Interview Guide Individual Interview Guide

Outputs of the Hear Phase are:

» Peoples’ stories » Observations of Constituents’ reality » Deeper understanding of needs, barriers, & constraints

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Qualitative research methods enable the design team to develop deep empathy for people they are designing for, to question assumptions, and to inspire new solutions. At the early stages of the process, research is generative â&#x20AC;&#x201D; used to inspire imagination and inform intuition about new opportunities and ideas. In later phases, these methods can be evaluativeâ&#x20AC;&#x201D;used to learn quickly about peopleâ&#x20AC;&#x2122;s response to ideas and proposed solutions.

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hear: theory What will qualitative research methods do?

What will qualitative research methods not do?

Qualitative methods can uncover deeplyheld needs, desires, and aspirations. It is particularly useful in early-stage research to test assumptions about the world, and when we cannot assume that the researchers already know the entire universe of possible answers, beliefs, and ideas of the participants.

Qualitative methods will not determine “average” behaviors/attitudes or answer questions such as: “Are people in X region more likely to do this than in Y region?” This is because qualitative methods do not cover a sample large enough to be statistically significant.

Qualitative methods can help unveil people’s social, political, economic, and cultural opportunities and barriers in their own words.

Qualitative research can also be powerful for analyzing and mapping the relational dynamics between people, places, objects, and institutions. This is possible because phenomena in the social world tend to be internally related (that is, they are mutuallydependent and co-constituted).

By examining the extreme ends of a set of phenomena in depth, the entire universe of relationships can be illuminated since other instances will fall somewhere on the map of relations and links. Once a set of relationships are identified, they can be interrogated using interpretive methods or further refined for quantitative testing.

Deep understanding, not broad coverage, is the strength of qualitative research.

In later phases of the design process, quantitative research becomes a good complement to understand, for example, the potential adoption of a new solution or to understand how the effect of solutions will vary from region to region.

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D Hear Identify A Design Challenge

Facilitator Notes

Time:

Difficulty:

1-1.5 Hours

Step 1: Work with leadership to identify a list of criteria for the challenge. (i.e. Does it need to fit into a certain timeframe?

Does it need to have a geographical or topical focus? Does it need to fit into an existing initiative?

Does it need to explore new opportunities?)

Step 2: With leadership, the design team, and/or constituents, make a list of the challenges you are facing.

identify a design challenge The foundation of HCD is a concise Design Challenge. This challenge will guide the questions you will ask in the field research and the opportunities and solutions you will develop later in the process. A Design Challenge is phrased in a human-centered way with a sense of possibility. For example: “Create savings and investment products that are appropriate for people living in rural areas.”

TIP #1

Step 3: Re-frame those challenges from the constituent’s point of view and broader context.

Step 4: Vote or select the top two or three challenges based on your criteria.

Step 5: Narrow to one challenge with input from key stakeholders.

Step 6: Write a succinct, one sentence Design Challenge to guide the design team.

The Design Challenge can be decided by organizational leadership or can be developed through a team-based approach. In either case, begin by identifying challenges people are facing or springboard off opportunities the organization is interested in exploring. Narrow this list down to one specific design challenge.

A good Design Challenge should be:

TIP #2

» Framed in human terms (rather than technology, product, or service functionality) » Broad enough to allow you to discover the areas of unexpected value » Narrow enough to make the topic manageable

de sign chall enge H

WATCH OUT

TRY

The challenge you choose may be related to adoption of new technologies, behaviors, medicines, products, or services. This might lead to framing a design challenge that is organization-focused, such as “How can we get people in villages to adopt savings accounts?” Instead, to act as a springboard for innovation, the challenge should be re-framed in a more human-centered way, such as “How can we create a financial safety net for people in villages?”

Start the design challenge with an action verb such as “Create”, “Define”, “Adapt”, etc. Or phrase the challenge as a question starting with: “How can...?”

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Case study Team-based design challenge definition In Ethiopia, IDE defined the design challenge through a series of different steps. First a small core team – the country director and IDE corporate staff — determined a set of criteria and short list of important challenges.

Armed with this information, the country director and design team developed a set of criteria for the design challenge. This criteria was: » Limited enough to complete the challenge in 3-4 days » Focused on farmer needs » Broad enough to discover what is desirable to farmers Next, the team listed all the challenges they wanted to pursue.

The country director then gave the team some information about the conversation among the core team which helped to focus the choices.

Referring back to the criteria the team developed, the challenges were narrowed through a democratic vote. The top three were: » What can we offer farmers who don’t have enough rainwater access? » What are the best ways to communicate IDE offerings to farmers? » What makes farmers say yes?

The team discussed the possibilities and decided that the second and third were actually closely related. So the team re-phrased the Design Challenge to become: “Define the appropriate approach for reaching a larger number of smallholder farmers with IDE offerings.”

After more discussion and a final vote, this challenge was selected.

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Hear Recognize Existing Knowledge

Recognize Existing Knowledge Chances are good that you already have some knowledge about the topic.

Conducting a “What Do We Know?” session helps call forth existing knowledge related to the Design Challenge. Once documented, you can freely focus on discovering what you don’t yet know.

First, on Post-Its, write down what you already know about the Design Challenge, including: TRY

» What people need or want » What technologies can help in this challenge » What solutions or ideas are being tried in other areas » Any early hypotheses about how to solve the Design Challenge Are there any contradictions or tensions that emerge?

Where is the team’s knowledge the strongest: on the needs of people, on the technological possibilities, or in how to implement ideas?

Next, write down what you don’t know but need to learn about the area of investigation, such as: » What constituents do, think, or feel » How people value offerings » What constituents’ future needs may be » Challenges to implementation of ideas Where are the biggest needs for research?

How should the recruiting strategy be tailored?

Which categories might structure the discussion guide?

Facilitator Notes

Time:

Difficulty:

30-60 mins.

Step 1: Post the design challenge so that the team can see it.

Step 2: Hand out post-it notes to the design team, and ask them to write what they already know about the topic.

Have one piece of information per post-it note.

Step 3: Ask each person to read their notes, and post them under the design challenge. Ask others to disagree or challenge any of the assumptions that come out.

Step 4: Ask the team to write down on post-it notes what they don’t know about the challenge and read their notes.

Post these notes in a different area.

Step 5: Group the post-it notes into themes to help the team develop research methods, a recruiting plan, and the interview guide.

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Facilitator Notes

Time:

Difficulty:

30-60 mins.

Step 1: Develop the spectrum along which to recruit.

Generate several options (i.e. High income to low income, early adopter to risk averse, large landholder to landless). Individually or collectively narrow to one or two relevant spectrums to make sure “extremes” are covered in the research.

Step 2: Identify the relevant locations to recruit participants.

Ask stakeholders to list good areas for this research. Pick 2-5 field sites that vary from one another (i.e. a dry and a wet site or a site in a central district and one more remote).

Step 3: Select appropriate community contacts to help arrange community meetings and individual interviews. Make sure community contacts include men & women.

identify people to speak with Recruiting appropriate and inspirational participants is critical. Attention to gender, ethnicity, and class balance is crucial for research.

For research meant to inspire new opportunities, it is useful to find people who represent “extremes.” Extreme participants help to unearth unarticulated behaviors, desires, and needs of the rest of the population, but are easier to observe and identify because they feel the effects more powerfully than others. By including both ends of your spectrum as well as some people in the middle, the full range of behaviors, beliefs, and perspectives will be heard even with a small number of participants. Including this full range will be important in the later phases, especially in constructing good frameworks and providing inspiration for brainstorming.

GENDER

WATCH OUT

Some communities may be resistant to male NGO staff interviewing women. Make sure female staff help recruit & interview women.

Group sessions are a great springboard to identify participants for the individual interviews. However, communities often want to showcase only the most successful constituents or male community members to NGOs.

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TIP #1

One-third of participants might be “ideal constituents”: those who are successful, adopt new technologies quickly, and/or exhibit desirable behaviors.

One-third of participants should be on the opposite extreme: those who are very poor, resistant to new technologies, and/or exhibit problematic behaviors.

One-third of participants should be somewhere in between: those who the researchers believe represent more “average” people.

To satisfy the economic spectrum from the more well off to the very poor, you might ask: TIP #2

» “Can you introduce me to a family who cannot afford to send their children to school?” » “Who has not been able to afford maintenance or repairs to their home?” » “Who has experienced a recent setback (medical problems, bad harvest, etc)?”

Refer to the Field Guide to help guide your recruiting.

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D Hear Choose Research Methods Method: Individual Interview

choose research methods Design research is useful to not only understand individuals but also frame individual behaviors in the context and community that surrounds them. Therefore, it will be important to employ many methods of research.

In addition to the methods described in this book, secondary sources and quantitative data can be supplemented to understand income or asset variances across different regions. Five methods described here are: » Individual Interview » Group Interview » In Context Immersion » Self-Documentation » Community-Driven Discovery » Expert Interviews » Seeking Inspiration in New Places

method: individual interview

Facilitator Notes

Time:

Difficulty:

Individual interviews are critical to most design research, since they enable a deep and rich view into the behaviors, reasoning, and lives of people. If possible, arrange to meet the participant at his/her home or workplace, so you can see them in context. In-context interviews give the participant greater ease and allow you to see the objects, spaces, and people that they talk about during the interview.

60-90 mins.

Step 1: After your team has written the Interview Guide (see Field Guide), practice the individual interview by partnering in teams of two. One person plays the role of the interviewer and the other the interviewee. Ask the teams to go through a “practice interview” with their partner.

Step 2: Ask the team what they learned through this exercise.

Are there any topics or questions that are missing?

WATCH OUT

If there are many people on the research team, no more than three people should attend any single interview so as to not overwhelm the participant and/or create difficulty in accommodating a large group inside the participant’s home.

Refer to Step 5: Develop an Interview Approach to create a set of questions for your individual interviews.

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TIP #1

The interview should be conducted without an audience, since the presence of neighbors, friends, or others can sway what the person says or what they are able to reveal. Privacy can often be difficult to create, however.

One tactic to accomplish privacy is to have one person on the research team pull the audience aside and engage them in a parallel conversation in a place where the primary interview cannot be heard.

Assign the following roles so that each person has a clear purpose visible to the participant: TIP #2

Âť one person to lead the interview Âť a note taker Âť a photographer

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D Hear Choose Research Methods Method: Group Interview

method: group interview Group-based interviews can be a valuable way to learn about a community quickly. Group interviews can be good for learning about community life and dynamics, understanding general community issues, and giving everyone in a community the chance to voice their views.

Group interviews are not good for gaining a deep understanding of individual income streams, uncovering what people really think, or understanding how to change commonly-held beliefs or behaviors.

Guidelines for group meetings: Size: 7-10 people from diverse economic backgrounds Facilitator Notes

Time:

Difficulty:

TIP #1

1.5-2 Hours

Step 1: After the team develops a Group Interview Guide (see Step 4), have the team partner in groups of two for a practice interview. Ask the interviewers to develop an approach for including women and quieter members of the group. Ask them also to develop strategies for asking people who may be dominating the conversation to allow other people to answer.

Step 2: Have the team share â&#x20AC;&#x153;best practicesâ&#x20AC;? for including quieter members of the group and redirecting the conversation away from people who are dominating the conversation.

Place: Meet on neutral ground in a shared community space that all people have access to (regardless of age, gender, status, race).

Gender: Mixed or same-sex groups depending on the customs in that community (if men and women should meet separately, two facilitators can run the groups in parallel).

Age: Mixed groups of parents and teens/children, depending on the topic and local context.

WATCH OUT

Are the viewpoints of men and women equally valued in this community? If not, it may make sense to have two meetings, one with women only and one with men only.

Are political heavyweights (such as chiefs, local administrators, etc) present? If so, their opinions may hamper the ability of others to speak freely.

Does the community view you as a source of funds, gifts, or charity? If so, their interactions may be influenced by the desire to access potential benefits; it may be helpful to prepare an introduction that makes the purpose of the interview clear and state that nothing will be given away.

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TIP #2

NGOs can sometimes unintentionally send a message of separateness by wearing branded NGO clothing and creating spatial distance between themselves and the participants. It’s important to lessen these barriers and to disrupt common hierarchical perceptions of benefactor/researcher and recipient/participant.

Here are some tips: » Sit at the same height level as the participants » If there is more than one researcher, don’t sit together; stagger yourselves throughout the group » Try not to wear organization-branded clothing that signifies your status as benefactor or researcher » Emulate the same status of clothing as participants (note: this does not mean wearing the “traditional dress” of the constituent community if this is not your own heritage)

Refer to Step 5 : Develop an Interview Approach to identify questions for the group.

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D Hear Choose Research Methods Method: In-context Immersion

method: in context immersion Meeting people where they live, work, and socialize and immersing yourself in their context reveals new insights and unexpected opportunities.

Facilitator Notes

Time:

Difficulty:

2-4 Days

Step 1: To plan a homestay, identify people willing to host a researcher for one-to-three nights in their home.

Depending on local customs, level of safety, and language barriers, team members can stay in homes individually or partner up in groups of two to three people.

Step 2: Make sure the team understands that the goal of this exercise is to see how participants live day-to-day. Advise your team not to bring elaborate gifts, food, or alcohol to the homestay.

However, a small gift of ordinary household supplies or help with normal family expenses is perfectly fine.

Step 3: Tell team members to participate with the family in their normal routines.

Ask the team to spend time with and talk to the men, women, and children in the household. Itâ&#x20AC;&#x2122;s important to see how the household works from all these different perspectives.

Human-Centered Design works best when the designers understand the people they are designing for not just on an intellectual level, but also on an experiential level. Try to do what your constituents do and talk to them about their experience of life in the moment.

GENDER

TRY #1

TRY #2

On a project in rural India, people said that cultural tradition prevented women from touching men who are not immediate family members. However, by spending several days in a village, the team observed that there were many instances in which trained or uniformed women doing specific jobs were able to touch men without any serious problems. These gaps between what people say and what they do are not bad.

In fact, seeing these differences may highlight new opportunities; for example, designing a new medical service that could be provided by uniformed women.

Work Alongside Spend a few hours to a few days working with someone.

By experiencing the business and activity firsthand, you may gain better understanding of their needs, barriers, and constraints.

Family Homestay Ask a family to host 1-2 team members for a few nights in their home. Staying for a few nights allows the family to gain comfort and act naturally. After the second night, very few people can maintain a â&#x20AC;&#x153;showâ&#x20AC;? for guests, and the understanding and empathy the team will gain will increase the longer you stay in one place.

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TIP #1

TIP #2

TIP #3

What people say (and think) they do and what they actually do are not always the same thing.

With no intent to mislead you, people often have strong beliefs about what they do on a daily basis that differs from what they actually do. The goal is not to correct or point out the misperception, but rather to understand the difference.

Putting yourself in someoneâ&#x20AC;&#x2122;s shoes enables you to get beyond what people say to what they think and feel.

Being in-context means gaining true empathy through being with people in their real settings and doing the things they normally do. This kind of deep immersion gives us Informed Intuition that we take back with us to design solutions. We begin to take on the perspective of the interview participant which enables us to make design decisions with their perspective in mind.

Of course, we always go back into the field and get feedback from the source to see if our Informed Intuition led us to the right choices, and how we can improve them.

Deep immersion shows commitment and staying power.

For example, working with a person for a day in his or her field, living with a family for a few days or helping them bring their products to market are ways of showing your deep interest in the day-to-day lives of your participants.

Trust is built over time and people feel at ease sharing their plans and hopes for the future. Many NGOs gain this depth of connection over many months of relationship building. Some techniques like the overnight stay described in the case study on the next page can accelerate this trust building.

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Case study overnight stay in the field On a project to increase small holder farmer income for IDE Ethiopia, the design team stayed overnight in Arsi Negelle, Ethiopia, where they plowed the family’s fields the next morning.

The overnight enabled the team to get beyond the common stories people tell to NGOs and learn about one farmer’s most intimate plans for the future.

They visited a farmer named Roba the first evening and once again the next day.

When they first met Roba, he portrayed an overall sense of hopelessness. He described things that happened TO him, in particular the government’s recent land redistribution. Some farmers received land in the irrigated area near the lake.

Some did not. He was in the latter group.

The next day, he was shocked to discover that the team was still there. His demeanor had changed completely. He knew the team was committed. This time, he shared that in fact he did have a plan for pulling his family out of poverty. If he could secure a $200 USD loan, he would first buy an ox so he wouldn’t have to trade two days of his own labor to borrow a neighbor’s.

Then he’d rent a piece of land in the irrigated territory and purchase improved seed. He no longer viewed the team as a wealthy NGO who was there to provide a free gift, but rather a partner in how he could take command of his own future.

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D Hear Choose Research Methods Method: Self-documentation

method: Self-Documentation Self-Documentation is a powerful method for observing processes over a long period of time, or for understanding the nuances of community life when the researcher canâ&#x20AC;&#x2122;t be there. Records of experiences, such as journal entries, allow the team to see how participants see their life, community, and relationships.

TRY

Facilitator Notes

Time:

Difficulty:

Recruit several people and give them cameras, video cameras, voice recorders or journals, with instructions.

Ask them to document their experiences over a few days or weeks. Give participants instructions designed to guide them on how to easily record activities that will yield relevant information to the research project.

The easier it is to self-document, the more likely it is that participants will complete the exercise.

2-30 Days

Step 1: Decide what you would like people to document -- their feelings, activities, family life, income, or behaviors. Based on this, decide what the best mode for collection of the information might be: photographs, diaries, voice recordings, etc.

Step 2: Give participants the tools and instructions to document themselves for several days.

Step 3: When you return to the participants, review the materials together.

Remember to ask them not just what the things are that they documented, but also why they chose these details and how they felt about the items.

TIP #1

TIP #2

GENDER

Often teenagers and young people are good participants in self-documentary exercises. Young people tend to want to express themselves in new ways, and can find the process of documenting their lives and the community less intimidating than older adults.

You may find that your participants need a little help practicing the techniques for self-documentation. If this is the case, show some examples of how other people have done self-documentation, or spend a few hours with the participant to show them how to capture information.

Be sensitive to who has access to what in a community.

It is important to recruit both men and women in this exercise to have a balance of perspectives. Also be sensitive to class, age, and other factors that will affect the information people are able to collect and record.

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method: Community-Driven Discovery In most cases, the real experts on a certain topic and those with the most insight for the Design Challenge are the people in the community or end customers. Consider recruiting members of the community to be the primary researchers, translators, designers and/or key informants for the project.

Community members with strong relationships, respected leaders, or people with a reputation for intelligence and fairness are often good people to identify as research partners. By asking people in the community to lead the research, the other participants may be able to express their concerns more openly and honestly. In addition, through their intimate knowledge of the community, these research partners can help interpret the hidden meaning and motivations behind the statements of other participants.

WATCH OUT

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Community politics can sometimes transform a research project into a community battle for access to the resources of the researcher and/or NGO. Even when these resources are not real, the perception of favoritism can be damaging.

Before starting a project utilizing community-driven discovery, it is important to understand the relevant dynamics and power relationships.

Find people in the community who are particularly innovative or who have been doing things out of the ordinary in order to achieve success. How might you partner with these individuals to inspire new solutions?

What can be learned by leveraging their innovations and knowledge?

Facilitator Notes

Time:

Difficulty:

2-4 Days

Step 1: Identify a few people in the community that will be good members to have on the design team.

Try to ensure that these individuals are trusted and respected members of the community, that they are fair and unbiased, and have no personal stake in the results of the design solutions.

Step 2: Decide how you will compensate these individuals.

Sometimes it will be appropriate to pay them a salary based on what other members of the design team are getting paid, while in other situations, nonmonetary gifts are more appropriate.

If you are uncertain, seek advice.

Step 3: Integrate these design team members at every point in the project, valuing their knowledge of the community dynamics and needs.

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Hear Choose Research Methods Method: Expert Interviews

method: Expert Interviews Experts can be called upon to provide in-depth and technical information. Reaching out to experts is particularly useful in cases where the team needs to learn a large amount of information in a short period of time, and/or where others have already done a lot of research on a topic.

Some examples of good times to call upon expert interviews are: » To learn about the history of a particular community or topic » To understand the regulations that might affect design and implementation of solutions » To gather information about new technologies that have been recently invented or that are on the horizon

WATCH OUT

TIP #1

TIP #2

Expert interviews are not a substitute for primary research with participants and communities. Often experts overstate their expertise or develop their own assumptions and biases that can stifle innovation.

If possible, interview experts with different points of view on a topic in order to balance out biases.

Remember that the real experts are the people you’re designing for. Don’t ask experts for solutions or take their ideas as the final solution.

Facilitator Notes

Time:

Difficulty:

1.5-3 hours

Step 1: Identify the areas or topics that you would like to talk to experts about.

Step 2: Find and recruit these experts by telling them about your project and the intended length of time you will speak with them. Try to speak with people who have different opinions on the topics to challenge the team to think in new ways.

Step 3: Return to some of these experts during the Feedback portion of the project -- experts can be even more helpful when there is something tangible for them to respond to.

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Hear Choose Research Methods Method: Seek Inspiration in New Places

Facilitator Notes

MeTHOD: Seek Inspiration in New Places One of the best ways to inspire new ideas is to look at similar experiences in other contexts, instead of focusing too narrowly on the research topic. The simple act of looking at different contexts can bring to mind new insights.

For example a surgeon can get insights about organizing their medical supplies by visiting a hardware store, an airline employer might get ideas about check-in by observing a hotel front desk or a water-jug creator could observe other ways individuals transport heavy objects or liquids.

TRY #1

TRY #2

To identify inspirational settings, list all the distinct activities or emotions that make up the experience you are researching. For example, a doctor’s visit might include the following activities and feelings: getting sick, discussing a doctor visit with family, travel, paying, and following doctor instructions such as taking medication or changing behavior. Find other situations that include some or all of these activities and then go and observe them.

This method is most useful when you have already done some research, and need to refresh your thinking.

Time:

Difficulty:

20-60 mins.

Step 1: Think about all the activities, feelings, and behaviors that make up the experience of your challenge. Ask the team to list these together.

Step 2: Next to each activity, feeling, or behavior, write down a few other areas or situations where this exists. For example, if the activity is “use a device at the same time every day”, other situations might be how people use alarm clocks, wells, or mobile phones.

Step 3: Have the team vote on the situations that they would like to observe for inspiration and arrange for an observation.

Step 4: During the observation, have the team take pictures and notes of the experience. Together, debrief on what this experience was like and what they can apply to the design challenge.

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D Hear Develop an Interview Approach Method: Interview Guide

Develop an interview approach Interviewing is an art that balances the dual needs of getting relevant information from the customer and engaging with them as a curious and empathetic friend. Intentionally developing your strategy for interviewing is key to managing this balance. Here we include three interview methods that may help you to develop the interview approach right for you: » Interview Guide » Sacrificial Concepts » Interview Techniques

method: interview guide

Facilitator Notes

Time:

Difficulty:

1-2 Hours

The semi-structured interview is a key method of enabling dialogue and deep engagement with participants while retaining focus on a particular topic. Thoughtful structuring of the interview questions will take the participant on a mental journey from the specific to the aspirational to the tangible.

Step 1: Generate a list of topics related to your design challenge to cover in field research.

Step 2: Sort the topics based on what are the main categories and sub-categories.

Step 3: Identify if any topics are specific to male or female activities.

Step 4: Break into groups of two. Take each main category and assign a group to generate a list of questions to ask in the field based on the topics listed in the main category.

Step 5: Have each group present their questions to the larger team and add any additional questions that may be missing.

OPEN SPECIFIC

TIP #1

Warm up the participant with questions they are comfortable with.

1. Household demographics 2. Who does what in the household?

3. Stories of recent past G O B R OA D

Prompt bigger, even aspirational, thinking that they may not be accustomed to on a daily basis.

4. Aspirations for the future 5. System-based questions PROBE DEEP

Dig deeper on the challenge at hand & prompt with ‘what if’ scenarios.

6. Income sources 7. Questions specific to innovation challenge 8. Sacrificial Concepts

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Begin by brainstorming the topical areas you’d like to cover during the interviews, like TRY #1

» sources of livelihood » sources of information » financing models

TRY #2

Use post-its to capture questions that respond to these topics. For ‘sources of information,’ one might ask: » When you have a setback in your life, who do you go to for advice? » Have you heard about new ways of doing things in the past year? How have you heard about them?

TRY #3

Move the post-its around to sort the questions into a logical flow based on the sequencing of START SPECIFIC, GO BROAD then PROBE DEEP.

Create your own in your Interview Guide at the back of your Field Guide based on the example on the opposite page.

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D Hear Develop an Interview Approach Method: Sacrificial Concepts

method: sacrificial concepts Scenario-based questions or Sacrificial Concepts can help make hypothetical or abstract questions more accessible.

A sacrificial concept is an idea or solution created to help understand the issue further. It is a concept that doesn’t have to be feasible, viable, or possible since its only purpose is deeper understanding. A good sacrificial concept sparks a conversation, prompts a participant to be more specific in their stories, and helps check and challenge your assumptions.

Facilitator Notes

Time:

Difficulty:

Abstract concepts difficult to answer for many people include:

30-60 mins.

TIP

» Questions about trade-offs

Step 1: Based on your Design Challenge, identify an abstract question you would like to know the answer to. Pose the abstract question to your partner, and note the response.

Step 2: Now turn the abstract question into a concrete scenario with two options.

Pose your scenariobased question to your partner.

Step 3: Now change a few of the variables in your scenario and pose the question again.

What kinds of information did you learn from the different ways of questioning?

» Questions about risk, insurance, and guarantees

» Questions about return on investment » Questions about future behavior

Make a question less abstract by creating a Sacrificial Concept: TRY #1

Instead of asking: “How much would you pay to reduce the risk of purchasing new technology?”

Describe two scenarios for the participant to choose from: “If you had a choice between two new technologies that could improve your farm output.

The first technology costs 1,000 and comes with no guarantee. The second costs 1,500 and comes with a guarantee that by the second harvest, your farm output will double or else we will come back, take the technology away, and give you back your 1,500.

Which option would you prefer?” Discuss why.

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TRY #2

TRY #3

TRY #4

Ask a person to compare your concept to the way they currently do things. You might also create two concepts that contrast with each other or are opposites. People have an easier time reacting to concepts if they have something to compare it to.

A sacrificial concept might be a scenario told verbally or shown in pictures or drawings. It might be an object that the person can handle. It might be an experience that a participant can try.

Look at your design challenge and your big questions. What topics do you want to explore deeply? Create a sacrificial concept to help you prompt the right conversation.

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Case study Mock Shops in Rural Ghana For a project on developing consumer goods franchises in Ghana, the IDEO team set up a Mock Shop in villages in order to understand how people make purchase decisions. The mock shop featured personal-care products from local and international brands at a range of price points.

In the shop, the team was able to observe people’s decision-making processes in action. They saw how long a person stayed, observed the browsing process, heard common questions, and saw customers’ processes for accessing the money needed to make a purchase.

After a participant looked through the shop and decided what to buy (or not to buy anything), the team asked follow-up questions about their decision. Why had they chosen to buy an item or not when looking at a product? What were they considering when looking at product X or Y? What was the key to deciding it was the right product? Who were they buying it for? What questions did they have about familiar products or brands compared to unfamiliar ones?

Having a real shop taught the team how people felt, thought and acted when making purchase decisions. It also helped the constituents explain something abstract — purchase decisions — using a concrete, recent example ­­­­— shopping at the Mock Shop.

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Facilitator Notes

Time:

Difficulty:

method: interview techniques

20-40 mins.

Through telling stories, human beings reveal important issues and opportunities in their daily experiences. Often, what people say they do and what they actually do are not the same thing. So it’s important not just to rely on asking straight forward questions in an interview. Here are a few techniques for collecting rich stories in an interview.

Step 1: Have the team practice by partnering in groups of two. At least one person (Person A) in each team should have a mobile phone with them.

Step 2: Ask Person A to simply explain to their partner (Person B) how they enter a new contact into the phone.

Step 3: Have Person B use the Show Me technique with Person A.

TRY

Step 4: Have Person B use the Five Whys technique with Person A. Step 5: Ask the team to come back together and ask, “What kind of information did you get from using Five Whys?”

Then ask, “What kind of information did you get from using Show Me?”

DISCUSS

Begin with a simple example, like how someone uses a mobile phone. Partner up and ask your partner to begin with a SHOW ME of how they entered the last contact into their address book. Next move on to the FIVE WHYS technique with your partner. Ask them to tell you about the last contact they entered into their address book and then five consecutive Why? questions.

Compare and contrast the type of information you get from the different techniques. Let this inform your questioning techniques in the field.

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show me

If you are in the interviewee’s environment, ask him/her to show you the things they interact with (objects, spaces, tools, etc). Capture pictures and notes to jog your memory later. Or have them walk you through the process.

draw it

Ask participants to visualize their experience through drawings and diagrams. This can be a good way to debunk assumptions and reveal how people conceive of and order their activities.

5 why’s

Ask “Why?” questions in response to five consecutive answers. This forces people to examine and express the underlying reasons for their behavior and attitudes.

think aloud

As they perform a process or execute a specific task, ask participants to describe aloud what they are thinking. This helps uncover users’ motivations, concerns, perceptions, and reasoning.

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D Hear Develop Your Mindset

Facilitator Notes

Time:

Difficulty:

6

20-40 mins.

Step 1: Ask the design team to look at the photo and identify what stands out to them. Note when people explain behaviors based on personal assumptions (i.e. “The man in the white lab coat seems to be the manager”).

develop your mindset The exercises listed under this step are valuable to put you in the right frame of mind for research. It is often difficult, but very important, for experts and professionals to put aside what they know when they conduct research.

Keeping an open mind takes practice. The three exercises here can provide you with this practice before you go into the field: » Beginner’s Mind » Observe vs. Interpret

mindset: beginner’s mind

Step 2: Ask what past experience led to this explanation.

Beginner’s Mind is critical when entering a familiar environment without carrying assumptions with you that are based on prior experience. This is often very hard to do since we interpret the world based on our experience and what we think we know. This lens of personal experience can influence what we focus on and can make us unable to see important issues.

Step 3: Use ‘opposite logic’ to question the assumption the person has made (i.e. “Wouldn’t those wearing lab coats need to be most sterile and therefore working closest with the machinery, not supervising?)

Step 4: Ask how the interpretation would change if a new piece of information were introduced (i.e. “What if I were to tell you that in this place white is the color that servants wear? How would

WATCH OUT

you view this scene differently?”).

Step 5: Ask the design team what they have learned from this exercise.

Step 6: Stress the importance of going into research with a “Beginner’s Mind” and asking questions that you think you might already know the answers to, because you may be surprised by the answers.

TRY

Remind yourself frequently of the need to approach your Design Challenge with Beginner’s Mind, especially when you are in the field conducting research.

Here is one exercise to learn how to see the world through the eyes of a Beginner. Look at the photo on the opposite page and answer the following questions: » What stands out to you? What is happening? » What personal experience did you draw on when you looked at the picture? » How could you look at the photo as a Beginner, without making assumptions about what is happening? » What questions would you ask if you knew nothing about the context or activity of the people in the photo?

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Building empathy for the people you serve means understanding their behavior and what motivates them.

Understanding behavior enables us to identify physical, cognitive, social and/or cultural needs that we can meet through the products, services and experiences we create.

This exercise helps us differentiate between observation and interpretation of what we see, revealing our biases and lenses through which we view the world.

Facilitator Notes

Time:

Difficulty:

20-40 mins.

Step 1: Ask the team “What do you see happening in this image?” Listen for responses that have built-in interpretations and remind people to describe only what they see at this point.

Step 2: Ask “What might be the reason for this behavior?” and have the team generate at least five different interpretations about why this might be happening.

If people are stuck, throw out an idea like : “This person is displaying her clothes to her neighbors as a sign of wealth by hanging them in a public space.”

Step 3: Ask “What questions would you ask to find out the real answer?” and make a list of the questions that would help your team discover the right interpretation for an observation.

mindset: observe vs. interpret

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Use the photo on the opposite page to practice making the distinction between observations and interpretations.

What do you see ha p p ening in this image ?

Describe only what you see, don’t interpret yet.

What is the reason for this b ehav ior ?

List five different possible interpretations that might explain this person’s behavior.

H ow would you find out the real ans w er ?

List five questions you could ask her to determine which interpretation is correct.

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H Introduction Human Centered Design

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increasing farmer income, cambodia

appropriate hearing aid protocols, india

WATER STORAGE AND TRANSPORTATION, INDIA

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CREATE: GOALS To move from research to real-world solutions, you will go through a process of synthesis and interpretation.

This requires a mode of narrowing and culling information and translating insights about the reality of today into a set of opportunities for the future. This is the most abstract part of the process, when the concrete needs of individuals are transformed into high-level insights about the larger population and system frameworks that the team creates.

With defined opportunities, the team will shift into a generative mindset to brainstorm hundreds of solutions and rapidly make a few of them tangible through prototyping. During this phase, solutions are created with only the customer Desirability filter in mind.

Goals of the Create Phase are:

» Making sense of data » Identifying patterns » Defining opportunities » Creating solutions

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A new way to go beyond analysis, a way to create new solutions based on the voice of the customer.

â&#x20AC;&#x201D;IDE vietnam

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CREATE: OUTPUTS Using both left-brain (logical) thinking and right-brain (creative) thinking, this phase will translate your research into a set of strategic directions and tangible solutions.

At the end of the Create phase, the team will have generated the following:

» Opportunities » Solutions » Prototypes

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There are four key activities in the Create phase: synthesis, brainstorming, prototyping, and feedback.

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CREATE: THEORY Synthesis is the act of making sense of what weâ&#x20AC;&#x2122;ve seen and heard during the observations.

Synthesis takes us from inspiration to ideas, from stories to strategic directions.

By aggregating, editing and condensing what weâ&#x20AC;&#x2122;ve learned, synthesis enables us to establish a new perspective and identify opportunities for innovation.

Brainstorming with rules like Defer Judgment and Build on the Ideas of Others is a proven method for coming up with unexpected innovations.

Brainstorming makes us think expansively and without constraints.

The practice of generating truly impractical solutions often sparks ideas that are relevant and reasonable.

It may require generating 100 ideas (many of which are mediocre) in order to come up with three truly inspirational solutions.

Prototyping is a methodology for making solutions tangible in a rapid and low-investment way.

Itâ&#x20AC;&#x2122;s a proven technique for quickly learning how to design an offering right and for accelerating the process of rolling out solutions to the world.

Prototyping is about building to think, acknowledging that the process of making ideas real and tangible helps us to refine and iterate the ideas very quickly.

Creating many different prototypes that highlight different aspects of your product or service not only enables people to give honest feedback, but also prevents the team from getting attached to an idea prematurely.

Feedback is critical to the design process. It brings the constituents directly back into the design process.

Feedback inspires further iterations to make solutions more compelling for constituents.

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Develop the Approach

Facilitator Notes Time: Days-Weeks.

Creation is about developing deeper understanding and translating that understanding into new innovations. There are many ways to do this, but the two most common are participatory approaches and empathic approaches. Use one or both of these approaches, develop your own, or draw upon different techniques when appropriate.

method: Participatory Co-Design

Difficulty:

Step 1. Identify constituents who would be good design team members. The criteria will vary from place to place and from challenge to challenge. For example, do you need people who are successful, respected, and/or politically powerful? Or would it be more valuable to have people who are typical community members? Or perhaps a mix of the two.

Having the team co-design solutions with people from the community and local value chain actors can be a great way to leverage local knowledge. It can also lead to innovations that may be better adapted to the context and be more likely to be adopted, since local people have invested resources in their creation.

Step 2. Schedule a co-design session or series of sessions that works for everyone, and explain the process and goals of the session in advance.

Facilitate a co-design workshop. Bring 8-20 people from the community together to design solutions to a challenge. Introduce the challenge by telling a few stories of problems that led to the design challenge.

Then generalize those stories to How Might We? statements. Ask people to add their own stories or How Might We? questions. Brainstorm solutions with the participants and make sure you have the appropriate materials on hand to prototype.

Step 3. Conduct co-design sessions with attentions to the needs, goals, and priorities of the community.

Consider using participatory co-design when: » you need a lot of local expertise and knowledge » solutions from the “outside” will not be easily adopted » the politics of a community require it

TRY #1

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TRY #3

GENDER

Co-design over a longer period of time through an in-context immersion. By living with a family over a few days or weeks, you will have the opportunity to ask people to informally identify problems and work together with them in their home, farm, or community.

This approach is also very good for spotting new problems and developing solutions to those problems in the moment they happen.

Find local experts and best practices. Ask different community members about the people who are considered to be successful. Schedule time with these people and leverage their knowledge to develop solutions together with them.

Make sure to include women in the design team and female community members in the co-design. If living with a family, spend time equally with the husband, wife, extended family, and even the children. When hosting a co-design session, think about whether to have mixed-gender groups, or to have separate groups of men and women. When looking for local experts and best practices, ask who is considered an expert of both men and women, as well as less powerful groups.

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Case study Engaging Local Artisans as Co-Designers An NGO and designer Kara Pecknold partnered with local weavers to help them market their woven products more widely and increase their economic power. Because the local artisans are the experts, this designer engaged these weavers as co-designers. The designer asked the weavers to draw a picture of what makes their weaving process or products unique as a way to understand how to differentiate their work.

Some drawings featured the plant that provides these weavers with their raw materials. They use the leaves from an invasive plant that is harming the environment of the Great Lakes Region of Africa. These weavers are turning an environmental problem into an economic opportunity. Based on these drawings and discussions, they identified the material they used as a key differentiator, and designed a logo for the weavers based on drawings of the plant.

Asking people to participate in the design process is helpful as a way to leverage local expertise. But it also can empower constituents to participate in their own destiny and helps balance the sometimes uneven power dynamic between the participant and the NGO team.

In addition, engaging with participants in a visual way helped diminish problems created by language barriers.

covaga logo design process

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Create Develop the Approach Method: Empathetic Design

method: Empathic Design Creating solutions through empathy is a way for the design team to blend their expertise with the on-the-ground needs of people. Empathy means deep understanding of the problems and realities of the people you are designing for. It is important to do research across many different groups of people and to “walk in their shoes’’ before the Create phase if employing empathic design methods. By understanding people deeply, empathic design can lead to both appropriate and more breakthrough solutions. But this method challenges the design team to not just understand the problem mentally, but also to start creating solutions from a connection to deep thoughts and feelings.

Consider using empathic design when: » the design team has specific skills required to develop solutions

Facilitator Notes Time: Days-Weeks Difficulty:

» the solutions you are seeking are “new to the world” » community politics make it difficult to select a few individuals to work with

Include men and women in the design team to ensure a balance of perspectives.

GENDER

When possible, recruit members of the community with the skills needed to be members of the design team.

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WATCH OUT

Empathic design is not a method in which preconceived ideas and assumptions are substituted for grounded research and connection with end users. Although solutions are generated by the design team, the goal is to always have the people you are designing for in mind.

Step 1. Encourage the team to connect at both the rational and emotional levels with constituents.

Step 2. If team members start to judge or exoticize the behaviors or decisions of constituents, remind them that their task is to understand and empathize with people, not to judge them.

Step 3. Make sure the team has spoken with enough people in the Hear phase to develop empathy. If the design team still doesn’t understand and feel the reasons for the behavior of constituents, go back to the field and conduct more research.

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Case study Bringing Eyecare to Children in Indian Villages VisionSpring embarked on a project to shift its offer from selling reading glasses to adults in the developing world to providing comprehensive eye care to children.

In an initial brainstorm with the VisionSpring team after conducting field research, ideas centered around the notion that kids liked experiences designed for kids. The VisionSpring team met with experts, including pediatric eye doctors, and saw that the norm was to decorate spaces with stuffed animals and toys as a way to make kids feel comfortable.

During the prototyping process, the design team developed a number of prototypes for the eye screening process for kids. They went to the field armed with a number of prototypes to try and iterate on. Using the traditional eye chart, the Vision Entrepreneur and then the teacher administered the eye test. This was very intimidating to the kids and several burst into tears. To make it more approachable and less intimidating, the team also tried using a sillier eye-chart that had toys and animals on it. But it became too much like play, and chaos ensued.

The team took a step back and thought about what would be serious enough to keep the diagnostic session from becoming a raucous play session, but not so serious as to inspire tears.

Sitting in the schoolyard, the team reflected back on their own experiences as kids, recalled playing “house” and “doctor”, where they would dress up with their friends and simulate adult behavior. Inspired by this role reversal/role play, the team thought: why not put the child in the position of authority? The team tried a protocol where the child would screen the eyes of the teacher, and then where they would screen each other. They had fun emulating adult behavior, and weren’t intimidated by their peers.

Empathic design means thinking from the perspective of your users, and doing everything you can to feel and understand what they are experiencing. The team got in touch with what is fun and what is scary to kids in order to create an eye care experience that works for kids.

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D Create Share Stories

Facilitator Notes Time: 4 Hours-Days Difficulty:

Step 1. Gather the design team together in a room with plenty of wall space.

Optimally, the team should be sitting in a circle.

Step 2. Distribute postit notes and markers.

Have a flip chart or large sheets of paper nearby, as well as tape to attach these sheets to the wall.

share stories Telling stories is about transforming the stories we heard during research into data and information that we can use to inspire opportunities, ideas and solutions. Stories are framed around real people and their lives, not summaries of information.

Stories are useful because they are accounts of specific events, not general statements. They provide us with concrete details that help us imagine solutions to particular problems.

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Step 3. Tell the team to capture their notes, observations, and thoughts on the post-its as they speak.

Everything that is said during story sharing should be captured in a note: life history, household details, income, aspirations, barriers, quotes, observations, etc.

It’s best to share stories soon after research so that details are not lost. One team member should tell the story of the person(s) they met, while the rest of the team takes notes on post-its. Notes should be small pieces of information (no longer than a sentence) that will be easy to remember later. As a group you should be thinking, “What does this new information mean for the project?”

Some tips on storytelling are below.

Be Specific Talk about what actually happened. It helps to begin stories with “One time…” or “After such and such happened…”

Be Descriptive Use your physical senses to give texture to your description.

Step 4. Ask each team member to share the story of the person(s) they met. Go through

Follow Reporting Rules Cover the following topics: who, what, when, where, why, and how.

the stories one by one.

Step 5. Affix all the post-it notes to the flip chart or large pieces of paper on the wall.

Use one large sheet per story. When the story is finished, hang it on the wall and move on to the next story.

At the end of Story Sharing, you will have many sheets lined up on the wall with hundreds of post-it notes.

Try to avoid: » Generalizing WATCH OUT

» Prescribing (they should, would, could…) » Hypothesizing » Judging » Evaluating or Assuming

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Story sharing turns the information that lives in a team member’s head into shared knowledge that can be translated into opportunities and solutions.

Some techniques for effective sharing include: » Gather your notes, photos, and artifacts prior to story sharing. If possible, print the photos and display them on the wall to refer to. » Tell stories person by person, one at a time.

Group meetings can be told as the story of a particular community. » Split information into small pieces to make it memorable. Make each piece no longer than this sentence. » Use vivid details and descriptions. This is not the time to generalize.

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D Create Identify Patterns

Identify patterns Making sense of your research is accomplished by seeing the patterns, themes, and larger relationships between the information. This process can be messy and difficult at times, but ultimately very rewarding. Seeing the patterns and connections between the data will lead you quickly toward real-world solutions. There are several steps listed here to take you through the process for you use selectively based on the subject matter. » Extract Key Insights » Find Themes » Create Frameworks

Facilitator Notes Time: 45-60 mins.

Difficulty:

method: extract key insights Uncovering insights is about bringing visibility and clarity to previously hidden meaning.

W H AT I S A N I N S I G H T ?

Step 1. Ask the team to go to the wall with all the stories and choose 5 key postits (stories, quotes, observations) that are most surprising, interesting, or provocative.

Step 2. Group these into related thoughts.

Step 3. Write a succinct Insight statement on a new post-it for each grouping that summarizes the big takeaway.

Step 4. Post these Insight post-its where all can see.

» Insights are revelations – the unexpected things that make you sit up and pay attention. » Insights extrapolate individual stories into overarching truths. » Insights allow us to see our design challenge in a new light.

For example, a combination of an observation and quote from an interview yielded the following sample insight: Observation: Farmers rely on farming information from their friends and neighbors, though they know this knowledge is limited.

Quote: “If the Privatized Extension Agent lived outside my area, I would want to visit his farm so I could see his production.”

Insight: Trust-building and knowledge sharing happens through ‘seeing is believing.’

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Select key information Look across the information in the stories. Edit out the details that are not important â&#x20AC;&#x201C; this is the time to let go of some of the detail. Choose the information that you find surprising, interesting, or worth pursuing.

Aggregate big thoughts Are some of the thoughts linked? If so, aggregate them. Take several related pieces of information and re-write them as one big Insight.

Work at the same level Check that the insights sit at the same level â&#x20AC;&#x201D; that they are all big thoughts. If you find you have some lower level insights, consider whether they might be reframed at a higher level. If they need to be dropped a level, they may be best talked about as customer needs that inform and support the Insight.

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Case study FINDING INSIGHTS FOR EFFECTIVE MARKETING TO FARMERS In Ethiopia, the IDE team looked over the information from the Story Sharing exercise and extracted over 20 key insights.

About half of these came directly from the post-its that were written in Story Sharing, and the other half were written based on the information the team heard during Story Sharing.

Some of the insights the team identified were: » School is a key channel for distributing information » There is a strong need for an alternative to borrowing oxen » Buying on credit is the default » Mass media sells water pumps

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D Create Identity Patterns Method: Find Themes

Facilitator Notes

method: find themes

Time: 30-60 mins.

Difficulty:

Finding themes is about exploring the commonalities, differences, and relationships between the information.

Step 1. Have the team go to the wall or board where they have placed their key story and insight post-its and select the 5 most interesting quotes, observations and/or insights.

Some ways to do this include: Look for categories and buckets Sort your findings into categories or buckets. Which ideas are related? Cluster together the findings that belong together into themes.

Consider the relationship between categories Look for patterns and tensions in the way your themes relate to each other. Are they on the same level? Or are they talking about different kinds of things?

Step 2. On a new board, sort these into themes.

Step 3. Check to make sure the themes are at the same level. If a theme is too specific, prompt the team to find the bigger idea.

If a theme is too broad or has too many different ideas under it, ask them to break it down into several buckets.

Step 4. When finished sorting, give each theme a title on a new post-it. Make sure there is enough space between or below the different theme categories to facilitate the next step of opportunity identification.

Group and re-group Slice and dice the data in different ways to find meaning.

Try moving the post-its around to form new groups.

Get input from the team Explain the early buckets and themes to a broader group.

Learn from their input and try alternative groupings.

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Try the P.O.I.N.T. technique Translate the Problems and Needs identified in storytelling into Insights (see previous Method) and Themes.

P = Problems O = Obstacles I = Insights N = Needs T = Themes

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Creating themes can be an engaging and rewarding experience, as you start to group and transform the data before your eyes. Some good techniques for doing this are: Âť Work together as a team to decide how to create buckets and themes. Âť Arrange and re-arrange the post-its on the wall until the team is satisfied with the groupings. Âť If there is a theme that contains almost all the postits, break it out into several smaller themes. Try to see not only the connections, but also the relevant differences between the information.

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D Create Identify Patterns Method: Create Frameworks

method: create frameworks Frameworks allow you to begin putting the specific information from stories into a larger system context.

Facilitator Notes Time: 1-2 Hours

What is a framework?

A framework is a visual representation of a system.

It shows the different elements or actors at play and highlights the relationships between them.

Difficulty:

Not all design challenges will yield or require frameworks.

If the team does not feel that this step is required for your challenge, skip it.

Using your framework A good framework will help you see the issues and relationships in a clearer and more holistic way. Discuss what the framework implies for constituents, for other actors in the community, and for your organization.

Use the framework to develop or build upon key insights.

Capture those insights and add them to your growing list.

Step 1. Listen for moments in story sharing when the topic fits into a larger system or is linked to another piece of information.

Step 2. When team members start to suggest larger systemic structures or relationships between things, ask them if they can draw what they are saying.

Consider the example framework types described here.

Step 3. Allow some time for your team to play with re-drawing their framework several times until they feel it represents what they want to say in a robust way.

GENDER

In many cases, it will make sense to create two different frameworks: one from the perspective of women in the community and one from the male perspective. To understand whether you need to dedicate attention to the different needs of women and men, ask yourself these questions: » How do women’s stories differ from those of men? » Is gender itself a theme? » Do women’s stories tell a different story about household activities, income opportunities and barriers, and market relations than the stories obtained from men?

If you answered yes to these questions, think about creating two different frameworks that will yield different sets of opportunity areas for women and men.

H Create Identify Patterns Method: Create Frameworks

If you are having trouble visualizing your own frameworks, here are some common types of frameworks that recur again and again.

TIP

Venn Diagram

Process Map

Relational Map

Two-by-Two Matrix

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D Create Create Opportunity Areas

Facilitator Notes Time: 40 mins.-2 Hours Difficulty:

Step 1: Prepare your team to begin defining opportunity areas by telling them that this is where they will start to shift from analysis of information to creating new ideas.

Step 2: Distribute postit notes and markers to everyone in the team.

Ask the team to start their opportunities with the words “How Might We…?”

Step 3: Spend at least 15 minutes on each theme generating Opportunity Statements for that theme. Place the post-its next to the theme area.

Step 4: If the team gets stuck, read the insights from each theme area as a way to jolt the creativity of the team. For example, for each insight posted, ask the team to come up with at least one “How Might We…” statement.

create opportunity areas Once you have pulled out the themes and patterns from what you heard, you can start creating opportunity areas. The process of translating insights into opportunities is about moving from the current state to envisioning future possibilities. Opportunities are the springboard for ideas and solutions.

What is an o p p ortunit y area?

» An opportunity area is a stepping stone to idea generation. » An opportunity is a rearticulation of problems or needs in a generative, future facing way. » An opportunity area is not a solution. Rather, it suggests more than one solution. It allows the team to create many solutions.

F raming o p p ortunit y areas

Opportunities start with the phrase “HOW MIGHT WE...?” to suggest a mindset of possibility.

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Start each statement with “HOW MIGHT WE...?” and abbreviate on post-its to “HMW.”

Use different color post-its for your opportunity statements than you used for insights. This will help to visually separate insights from opportunities for the next step.

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WATCH OUT

Watch out for opportunity areas that are already solutions. A key part of creating innovative solutions is preventing yourself and your team from jumping to conclusions.

Go for quantity, not quality at this point.

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When narrowing down the opportunity statements to 3-5 HMW statements to use in brainstorming, select some that are intentionally outside of your current projects or capabilities. At this point, filter based on Desirability to customers, not Feasibility to the organization.

If your opportunity sounds like a specific solution, back it up by asking yourself, “Why would we want to offer this solution?” or “What user needs are answered by this solution?” Here is an example: Insight Trust building and knowledge sharing happens through ‘seeing is believing.’

Solution A training course offered by community members to teach their friends and neighbors about a technology or behavior that has worked for them. This is a solution.

Ask yourself: What needs are answered by this solution?

Answer: The need to expand the knowledge of community members through local information aggregators.

Opportunity How might we better educate and inform local knowledge aggregators? Or how might we support new technology experimentation by local knowledge aggregators?

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D Create Brainstorm New Solutions

Facilitator Notes Time: 45-60 mins.

Difficulty:

Step 1. Prepare 3-5 “How Might We...?” opportunity statements from those generated previously.

Place each statement on a separate wall or board. Give each person post-it notes and a marker.

Step 2. Remind people of the rules of brainstorming.

Tell them to be very specific about the ideas they are proposing. Use big markers (not pens) so everyone can see what the idea is. Write only one idea per post-it.

Step 3. Begin by asking the group to generate a list of barriers related to the opportunity statement.

Step 4. Protect all participants by enforcing the Rules of Brainstorming.

If ideas slow down, prompt the group to think about one of the barriers listed during the warm-up.

Or share a story from the research to spark thinking (i.e. “So what ideas would encourage Shashu to adhere to her medication?”)

Step 5. When the ideas really slow down, switch to a new opportunity area.

This might be 15-30 minutes per HMW.

brainstorm new solutions Brainstorming gives permission to think expansively and without any organizational, operational, or technological constraints.

Some people think of brainstorms as undisciplined conversation. But conducting a fruitful brainstorm involves a lot of discipline and a bit of preparation.

The practice of generating truly impractical solutions often sparks ideas that are relevant and reasonable. It may require generating 100 ideas (many of which are silly or impossible) in order to come up with those three truly inspirational solutions.

S e v en b rainstorming R U L E S

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» Defer judgment There are no bad ideas at this point. There will be plenty of time to judge ideas later. » Encourage wild ideas It’s the wild ideas that often create real innovation.

It is always easy to bring ideas down to earth later! » Build on the ideas of others Think in terms of ‘and’ instead of ‘but.’ If you dislike someone’s idea, challenge yourself to build on it and make it better. » Stay focused on topic You will get better output if everyone is disciplined. » Be visual Try to engage the logical and the creative sides of the brain. » One conversation at a time Allow ideas to be heard and built upon. » Go for quantity Set a big goal for number of ideas and surpass it!

Remember there is no need to make a lengthy case for your idea since no one is judging. Ideas should flow quickly.

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Brainstorming warm-up Use this activity to get the team in an open-minded and energetic mindset for brainstorming.

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Pair up with a partner. Person A will come up with lots of ideas about a potential businesses he or she wants to start. (Alternatively, one could plan an event such as a family vacation and pose ideas of places to go.)

Round 1: Person A comes up with one idea after another.

Person B must say NO to each idea and give a reason why it wouldnâ&#x20AC;&#x2122;t work. Do this for 2-3 minutes.

Round 2: Now Person B comes up with business or event ideas, one after another. Person A must say YES to each idea and build on it to make it bigger.

Do this for 2-3 minutes.

As a group, discuss how these two different experiences felt. The Round 2 experience is the environment the team will want to create for a successful brainstorm.

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D Create Make Ideas Real

Facilitator Notes Time: 45-60 mins.

Difficulty:

Step 1. Ask teams to partner in teams of 2-4. Small teams help everyone to have a role.

Step 2. Ask teams to pick one solution from the brainstorming boards. You may choose to offer a range of criteria: two teams working on solutions they’re “most passionate about,” one group on “most feasible ” and one on “furthest out” or “long term”.

Step 3. Prompt teams to spend no more than 30-45 minutes making their chosen solution tangible, using one of the prototyping forms described here or creating new ones.

Step 4. Give each team 5 minutes to share their idea back with the larger group to get initial feedback.

Encourage teams to include an enactment of the experience of use, even if they have a paper-based prototype. Prompt groups to identify what customer needs their prototype addresses and what key questions they still have.

make ideas REAL Prototyping is about building to think. This means creating the solution so that it can be communicated to others and making the idea better. Prototyping allows you to quickly and cheaply make ideas tangible so they can be tested and evaluated by others - before you’ve had time to fall in love with them.

What is prototyping? » BUILD TO THINK: Prototypes are disposable tools used throughout the concept development process, both to validate ideas and to help generate more ideas. Prototypes are a powerful form of communication and force us to think in realistic terms about how someone would interact with the concept. » ROUGH, RAPID, RIGHT: Prototypes are not precious.

They should be built as quickly and cheaply as possible. » ANSWERING QUESTIONS: It is essential to know what question a prototype is being used to answer, for example about desirability, usefulness, usability, viability, or feasibility.

Why prototype? » To develop a deeper understanding of what an idea means and to reveal questions the team needs to answer. » To create an internal dialogue about how the concept works and external communication about the concept.

Imagine the Value Proposition TRY

For each prototype, answer these questions to start building the value of the idea: » Who will benefit from this idea? What is the value to the end customers? » Why and how is this idea better than alternative options? » How much is this benefit worth to them? » How much would they be willing to pay for this benefit” » How might this payment be collected?

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common p rotot y p e forms

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Models: A physical model of a product, shown above, makes a 2-dimensional idea come alive in 3 dimensions. Using rough materials allows you to quickly mock up low-fidelity prototypes.

Storyboards: Imagining the complete user experience through a series of images or sketches.

Role-play: The emotional experience with a product or service is sometimes best expressed by acting it out with team members taking on the role of the constituent or customer.

Diagrams: Mapping is a great way to express a space, process, or structure. Consider how ideas relate to each other, and how the experience changes over time.

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D Create Gather Feedback

Facilitator Notes Time: 1-1.5 Hours Difficulty:

Step 1. Ask team members to prepare how to present their solutions to participants. It’s not necessary to give behind-the-scenes organizational information to them.

Step 2. Have teams practice presenting solutions to the rest of the group— enactment is especially effective.

Invite others to help simplify and clarify the presentation and identify focus questions to be answered in research.

Step 3. Ask teams to standardize a script about the solution so it is delivered consistently at each feedback session.

Write down key questions to ask in follow-up.

Step 4. When introducing the feedback session to the customer group, explain you want honest feedback— even if negative—and that the team has spent minimal time prototyping.

gather feedback After solutions have been generated, it’s time to take them back out to participants to gather feedback.

WATCH OUT

Don’t invest too much time perfecting the ideas before feedback – the point of re-engaging customers is to change the solutions, not to prove that they are perfect. The best feedback is that which makes you rethink and redesign.

How to solicit feedback A great way to get honest feedback is to take several executions out to people.

When there is only one concept available, people may be reluctant to criticize.

However, when allowed to compare and contrast, people tend to speak more honestly.

Whose feedback to solicit Speaking to new participants in a different region from where you did your research is a way to explore the generalizability of a solution. You may choose to speak to a mix of both new people and to those you have spoken with before.

Try to include all stakeholders who would touch the concept; in addition to the end user, include manufacturers, installers, service providers, distributors, retailers, etc.

What questions to pursue For each prototype, identify 3-4 questions you’d like answer about desirability or use case during the feedback session.

Keep careful notes of the feedback, both positive and negative, and the new questions the team needs to answer about the solution.

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The goal is to solicit honest feedback, even if it is negative. It’s better to know early on before much investment has been made that a solution is not desirable. Here are a few tips in presenting yourselves and your solutions to participants: Don’t try to sell the idea.

Present solutions with a neutral tone, highlighting both pros and cons of a solution.

Vary group size.

Begin with a large group (10-15) to present the solution, then break into smaller groups, one per solution for a more intimate conversation.

Adapt on the fly.

If it becomes clear that there is one aspect of the solution that is distracting people from the core idea, feel free to eliminate this piece or change it.

Ask participants to build on the ideas.

If a participant asks a question like, “Can this service be purchase by the community or just an individual?”

Ask the question back to them: “ Should the service be purchased by the community or individual?” Another valuable question is, “How could this be better for you?” It invites the participant to help improve the idea or give additional critique.

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Case study TESTING Hearing Aid Protocols for Rural India The design challenge for this IDEO project was to make hearing aids more accessible in rural India. One key hurdle was creating a diagnostic process that could be effectively administered outside a medical setting by minimally-trained local technicians.

During the initial research, the team learned about the constraints associated with fitting a hearing aid. They developed a process prototype that included a fitting protocol, a technician kit with tools for fitting a hearing aid, and technician training materials. The team started by training two local people as technicians in less than a day, and then went to villages to watch the newly trained technicians try the protocol with people who have trouble hearing.

While watching the technicians on the first day in a village, the team quickly saw that the protocol was too complex. It took too long to explain to potential customers how to complete the tests. The team immediately set to simplifying the protocol, and then trained a new pair of technicians on the newly simplified protocol. To the teamâ&#x20AC;&#x2122;s surprise, while the next village visit went more smoothly, there were still some challenges due to complexity. The team conducted a third round of simplification, and final testing confirmed that the protocol was finally simple enough and effective enough to work.

Gathering feedback early allows you to focus on how to improve your design and helps you identify problems in your designs that you may not notice in an artificial setting. As in this example, it is often possible to make changes and improvements to the design between feedback sessions, so that the team continues to learn and improve the solution.

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DELIVER

EYECARE FOR CHILDREN, INDIA

water STORAGE AND TRANSPORTATION, INDIA

INCREASING SMALLHOLDERS FARMER INCOME, ethiopia

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DELIVER: GOALS Once the design team has created many desirable solutions, it is time to consider how to make these feasible and viable. The Deliver phase will move your top ideas toward implementation.

The activities offered here are meant to complement your organization’s existing implementation processes and may prompt adaptations to the way solutions are typically rolled out.

In the Deliver Phase, your team will:

» Identify required capabilities » Create a model for financial sustainability » DEVELOP an innovation pipeline » plan pilots & Measure Impact

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Tools to catapult solutions to the next steps of implementation.

â&#x20AC;&#x201D;IDE cambodia

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DELIVER: OUTPUTS This phase will challenge the team to create the elements necessary to make the solution successful, and to track the impact of the solution.

In the Deliver phase, you will produce:

» Feasibility assessment » Viability assessment » Innovation pipeline » Implementation plan » LEARNING PLAN

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Delivering solutions to your consituents means you will need to build the capabilities and financial models that will ensure that the solutions are implemented well and can be sustained over the long term. You will also need to create a plan for on-going learning and iteration.

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DELIVER: THEORY Delivering solutions that are new to the world involves creating lowinvestment, low-cost ways of trying out your ideas in a real-world context.

The team can design a handful of mini-pilots that precede and inform the full pilot program. Mini-pilots might engage actors who are different from the group of stakeholders for the final implementation. For example, in a minipilot, the NGO or social enterprise might play certain roles that will ultimately be held by partners in order to gain a deeper understanding of how the system should work and to be more informed when soliciting and training partners.

Implementation is an iterative process that will likely require many prototypes, mini-pilots and pilots to perfect the solution and support system.

Piloting an idea before it goes to market not only allows you to understand the solution better, but also helps you identify what it will take for your organization to deliver that idea to the community.

Every organization is optimized to achieve what it currently does. If you want to achieve different outcomes, you often need to do things differently than you know and do right nowâ&#x20AC;&#x201D;whether it is about finding new talent, developing new skills, building new external partnerships, or creating new processes.

The Human-Centered Design process doesnâ&#x20AC;&#x2122;t limit the solution by the current constraints of the organization.

This process invites you to work in the belief that new things are possible, and that you can evolve both the solutions that you deliver and the way your organization is designed, simultaneously.

In addition, Human-Centered Design integrates design and measurement methods in a continuous learning cycle.

By encouraging on-going measurement, evaluation, and iteration, the solutions developed stay grounded in real-world impact and continue to evolve.

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D Deliver Develop a Sustainable Revenue Model

Facilitator Notes

Time:

Difficulty:

30-45 mins.

Focus on one solution at a time and take the team through the following exercise. Alternatively, the larger team can be split into smaller teams of two or three, with each smaller team focusing on one solution.

develop a sustainable revenue model The long-term success of solutions depends upon the intentional design of a revenue stream that can sustain the offering over time. Let the value provided to the end customer be your entry point as you design the support systems around the solution. For this Viability Assessment, answer the following questions for each solution.

Step 1: On a board or flip chart, write “Customer Value.”

Ask the team to identify how each solution will provide value to the end customer. Write everything down.

Ask the team to answer the question: “How much is this worth to the end customer?” Write down the figure on the chart.

Step 2: On a separate board or flip chart, write “Revenue Sources.” Ask the team to identify who will pay for the product or service. How much will each actor pay?

How will the payments be received? Use the example fee models in the “Try” text box to help.

Continues next page.

TIP

1. Customer Value Proposition » What is the value proposition for the end customer?

Refer back to prototypes and customer feedback, highlighting the aspects customers found most important. » How much is this worth to the end customer?

2. Revenue Sources » Is the solution a product, a service or both? » How much do customers pay? » How do customers pay: in cash, in kind, in labor, in other?

3. Stakeholder Incentives » How does this solution deliver value to each stakeholder involved? » What are the stakeholders’ incentives to participate?

What are challenges or disincentives? How might we adapt the solution to avoid these disincentives?

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Consider the following fee models to inspire your thinking. One exercise is for the design team to go down the list of models and ask:

“What would our solution look like if it were offered by: …?” » Membership/Subscription » Gift it, share the income produced » Give the product, sell the refill » Subsidize » Give the product, sell the service » Service only » Pay-per-use

Step 3: On another board or flip chart, write “Stakeholder Incentives.” Ask the team to identify all stakeholders or players in the value chain who will be affected by the solution. Go through each actor and ask: “What is this group’s incentives to participate in or help this solution?” If there is a group that has a disincentive to participate in the solution, ask: “How might we adapt the solution to encourage their participation?”

Step 4: If the team has split into smaller teams, have the group come back together to share.

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Case study MODELING REVENUE FOR NEW SERVICES For the Today’s Market Prices solution, the IDE Cambodia team identified the desirability of payment-in-kind options through customer feedback: Customer Value Proposition » Connection to Privatized Extension Agent with real-time market pricing to inform where to sell large-quantity crops. » Connection to traders who collect from farms and sell crops at selected markets.

Revenue Sources » Payment in kind per use (price deducted from sales of crop at each collection) » Mobile phone provided a no cost (through phone donation program) » Free calls to designated number of Privatized Extension Agent Stakeholder Incentives » Privatized Extension Agent receives fee per information request » Crop Collector expands his farmer clientele and receives a % from crops sold » Mobile provider is paid for calls made to PEA numbers; expands potential customer base for calls/SMS sent outside the free number

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H Deliver Identify Capabilities Required for Delivering Solutions

Identify capabilities required for delivering solutions The capabilities of your organization and partners will help inform the feasibility of solutions. Begin by thinking about the experience of the end customer—where and how the community members or end-user will purchase or experience this solution.

Then identify the range of capabilities required for making this real. A challenge for the design team is to identify many possible models for delivery that leverage different partners and channels.

To identify the capabilities required to make each solution feasible, answer the following questions for each solution: TIP

1. Distribution » Where, when, how, and why might the customer experience this solution? » Which actors and channels will touch the solution? » What other channels could be used to reach customers? » What is the range of possible ways this solution could be delivered?

2. Capabilities Required » What human, manufacturing, financial, and technological capabilities are required for creating and delivering this solution? » Which of these capabilities do we have in our country location? Which do we have in our international location? And which capabilities will need to be found in partners? » Would we need to grow any capabilities on this list?

3. Potential Partners What organizations or individuals have capabilities that we do not? What is our relationship with them currently?

How might we reach out to them and show the value of engaging with our organization on this solution?

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Facilitator Notes

Time:

Difficulty:

30-45 mins.

Focus on one solution at a time and take the team through the following exercise.

Alternatively, the larger team can be split into smaller teams of two or three, with each smaller team focusing on one solution.

Step 1: Write “Distribution” on a board or flip chart.

Have the team identify all the possible actors who could deliver this solution. Write each actor on a post-it note.

Ask the team to list the pros and cons of each of the different delivery possibilities.

Step 2: Write “Capabilities” on a separate board or flip chart. List the human, manufacturing, financial, and technical capabilities that will be required for each solution. Indicate if the capability exists in your local organization, if it exists somewhere else in your network, or whether you will have to partner.

Step 3: For the solutions that you will need to partner, create a list of potential partners. Narrow to a smaller set of partners.

Ask the team to list the first step they would take to pursue the top partners identified.

Step 4: If you have split into smaller groups, ask the teams to come together to share their thoughts.

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Case study DELIVERING TODAy’s Market Prices In Cambodia, the IDE design team created a solution called “Today’s Market Prices,” real-time market crop price information to farmers.

The team identified one model to deliver this to customers involving two key partners: Privatized Extension Agents and Crop Collectors.

Distribution » Centralized information gathering & distribution » Information distributed by Privatized Extension Agents (PEAs) upon request of the farmer » Farmer requests info by mobile phone provided with free calls to PEA » Crops & fee collected by Crop Collector Capabilities Required » Market price information collection daily (or multiple times a day) » Market price information aggregation & distribution to Privatized Extension Agents » Communication channels between farmers & PEAs via mobile phone » Crop collection & sales » Fee collection Potential Partners » Government market information sources » Privatized Extension Agent » Mobile phone donor program » Mobile service provider » Crop Collector

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Plan a pipeline of solutions To understand how new solutions will move and grow your organization, map each solution to the matrix provided. As you are mapping solutions, ask whether each solution is targeted at your current customer group or whether it expands the group of customers you serve.

WATCH OUT

Facilitator Notes Time: 30-45 mins.

Existing users refers to the category of customers, such as people earning $1-2 per day vs. people earning greater than $2 a day, not those earning $1-2 per day who are current customers of your organization vs. people earning $1-2 per day who are not yet customers.

Determine whether the solutions extend or adapt an existing offer, or create a new offer. Analyze this information from the context of your investment strategy, mission, priorities and appetite for risk. Also identify which solutions fit naturally into programs already underway within your organization.

Difficulty:

Step 1: Draw the matrix on a large sheet of flip-chart paper.

Step 2: Write each solution on a post-it note and place in the appropriate position on the matrix.

TIP #1

Step 3. Analyze if the team is happy with the distribution of solutions from Incremental to Revolutionary.

Step 4. If the team wants to add solutions to one of the quadrants, develop a HMW...? statement and brainstorm new solutions.

TIP #2

Many organizations say they are only looking for Revolutionary ideas, but their capabilities are limited to Incremental or Evolutionary ideas. Furthermore, funders can steer grantees toward more incremental ideas or ones that have been proven to be best practices. Make sure you are honest with how far your organization can stretch its capabilities and how willing your funders are to take risks.

Mapping a pipeline of solutions that includes Incremental, Evolutionary, and Revolutionary ideas helps ensure that your design effort will pay off.

Remember, sometimes the ideas with the highest impact are the simple Incremental ideas.

H Deliver Plan a Pipeline of Solutions

New Users

R E volutionary

I ncremental

E VO LU T I O N A RY

New Offerings

Existing Offerings

E volutionary

Existing Users

The lower left quadrant represents Incremental innovation as these solutions build on existing offerings with familiar users. Evolutionary innovation is about extending into either new offerings or new users while holding the other constant.

Revolutionary innovation means tackling both new users and new offerings.

TIP #3

Look at the spread of solutions to reveal the gaps in your pipeline of solutions. Are parts of the matrix blank and others full? If so, determine if it is desirable for your organization to go back to Brainstorming in order to develop solutions that will intentionally fill that gap.

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Case study CREATING A SOLUTIONS PIPELINE In Cambodia, the IDE design team noticed that most of the solutions fell on the “existing user” side of the matrix since the organization has a highly defined target group. Yet the solutions spanned the range from those that fit within current projects and programs to new areas of offerings. The team also identified solutions that would start in the lower left corner with adaptations to existing solutions with existing customers, but over time would help the organization migrate into the other quadrants. While many organizations are initially attracted to the idea of “Revolutionary” innovations, in reality an innovation pipeline that focuses on existing capabilities or targets existing customers can be the strongest strategy for the near term.

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D Deliver Create an Implementation Timeline

create an implementation timeline Map solutions to a timeline of implementation, with those in the Incremental innovation category early in the timeline and Revolutionary innovations further out.

Facilitator Notes Time:

Look at relationships of solutions to see whether initiating one solution will build the relationships and partners needed for another solution. You may also need to take into account which solutions can be explored within the scope of currently funded programs and which solutions suggest the proposal of new grants.

15-30 mins.

Difficulty:

Step 1: Create post-it notes for a timeline (such as 2 weeks, 1 months, 3 months, 6 months, 1 year) and post them along a large blank wall in your office.

Step 2: Post the Feasibility Assessments or post-it notes for each solution along the timeline.

Step 3. Assign champions to pursue the next steps.

TIP

TRY

Assigning an individual within your organization as a champion for each solution will help maintain momentum and increase the likelihood of implementation.

Divide each solution into a series of steps that build toward implementing the final solution. Challenge the team to do something toward implementing each solution in the next two weeks. For some solutions, a pilot can be launched in two weeks. For others, two weeks might be the amount of time required for further study or for the first steps to connecting with partners.

H Deliver Create an Implementation Timeline

2 w eeks 1 month

3 M onths

6 M onths

1 Year

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Plan mini-pilots & iteration For each solution in your pipeline, it is important to identify simple, low-investment next steps to keep the ideas alive. One way to keep iterating and learning is to plan mini-pilots before large-scale pilots or full-scale implementation.

For each mini-pilot, ask three questions: » What resources will I need to test out this idea? » What key questions does this mini-pilot need to answer? » How will we measure the success of this mini-pilot?

Facilitator Notes Time: 45-60 mins.

Difficulty:

Step 1: Get into small groups per solutions and fill out the worksheet on the next page.

GENDER

When planning mini-pilots, pilots, and implementation plans, it often makes sense to understand how these may differ by gender. By understanding these differences early on, the solution can be iterated or transformed to make sure that the roles and needs of both men and women are being appropriately addressed. For example, in planning the mini-pilot, consider how women’s roles in implementation might differ from men’s. For each solution, ask how women could play a role as:

Step 2: Cross-share mini-pilot plans with the team and give each other feedback.

» client » resource » beneficiary » partner

Step 3. Identify who will enact the most immediate next steps and establish the first check-in date.

Do any of the answers differ in the ways women would play these roles versus men? If so, iterate your solution to incorporate this finding.

mini pilots &itera tions H

Use the Mini-pilot worksheet to plan next steps for each solution.

TRY

After each mini-pilot, it is important to reconvene the design team to understand what went well and where there was customer dissatisfaction or system obstacles.

Use the worksheet provided to continuously iterate the mini-pilots, trials, and success measures.

See the full-size worksheet on the next page.

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D Deliver Plan Mini-Pilot & Iterations

mini-pilot planning worksheet solution name :

team mem b ers :

» context ( w ho , w here , w hen ) & time

What’s a low-cost, low-investment way to try out this solution? What can you do in 2 weeks?

» resources :

What resources (people, funds, permissions) would you need to try this out?

» questions to ans w er :

What key questions do you have about this concept and its desirability for your customer?

» how to measure success :

How will you know if your solution was successful? Successful for whom?

H Deliver Plan Mini-Pilot & Iterations

C heck- in date

C heck- in date

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» K e y learnings :

» K e y learnings :

» K e y learnings :

» N E W resources :

» N E W resources :

» N E W resources :

» NEW QUESTIONS:

» NEW QUESTIONS:

» NEW QUESTIONS:

» N e w M easures :

» N e w M easures :

» N e w M easures :

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D Deliver Create a Learning Plan

Facilitator Notes Time: 45-60 mins.

Difficulty:

Step 1: Revisit the stories you gathered in the Hear phase as a baseline. Answer the questions: What was the situation of the people in our initial research? What should we expect to see happen in the lives of these people if our ideas are successful?

Step 2: Develop an approach to collect more stories of before, during, and after implementation. If possible, identify a demographically similar group that will not be affected by your ideas and collect their information as well for a robust study.

Step 3. Create a strategy for integrating qualitative and quantitative methods for learning.

Step 4: Encourage the team to embrace measurement as a process to enable on-going learning and inspire new solutions and pose new design challenges.

CREATE A LEARNING PLAN Throughout the design and implementation of new solutions, it is important to keep learning. With Human-Centered Design, design and evaluation are one seamless process, since both require attention to the effects of solutions on the lives of people.

Early in the design process, you collected stories that helped develop the understanding to get you to new ideas. After the first ideas were prototyped, you gathered feedback to make those ideas better.

As implementation begins, it is important to keep learning about how the solutions are working in order to keep making the designs better, and to select how to spend valuable resources on the solutions that are making the most impact. Instead of thinking that implementation is when design ends and monitoring and evaluation activities begins, try to marry design and evaluation.

When ideas are implemented, the team should continue to collect stories and gather feedback from users. Stories collected from people in the Hear phase will help the team create a baseline to track how solutions are affecting individuals’ lives. Collecting on-going feedback will help the team iterate on the ideas in order to make them more effective, more appropriate, and more cost-effective.

In addition to stories and feedback, begin to track indicators and outcomes.

This is possible after the solutions are implemented and are important to measuring the impact as well as the return on investment of solutions.

Refer to ‘Impact Planning and Learning Approaches’ from Keystone at keystoneaccountability.org.

Refer to ‘The Evaluation Toolkit’ published by FSG at fsg-impact.org/ideas.

H Deliver Create a Learning Plan

STORIES • Assess Needs • Understand Context • Develop Baseline • Gain Inspiration

OUTCOMES

FEEDBACK

• Assess Impact

• Evaluate Ideas

• Evaluate ROI

• Prioritize Solutions

• Create New Baselines

• Iterate Ideas

• Identify Next Challenges

• Develop Implementation Plan

INDICATORS • Track Progress • Choose Ideas • Iterate Solutions • Identify Unintended Consequences

THE LEARNING LOOP Stories, feedback, indicators, and outcomes are all ways of gathering empirical data in order to learn. A project in India for clean water storage and transportation utilized all of these methods to measure the impact potential and outcomes of solutions.

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D Deliver Create a Learning Plan Method: Track Indicators

method: Track Indicators Indicators help you measure the effects of your solutions. These effects can be positive or negative.

They can also be intended or unintended.

Facilitator Notes

Time:

Difficulty:

2-3 Hours

Step 1. Ask the team to refer back to the Theory of Change and to your holistic impact assessment stakeholder map.

Step 2. Focus on each stakeholder and/or step and for each one, list the information you would like to learn.

For example, if the solution is focused on increasing womenâ&#x20AC;&#x2122;s income opportunities and the men in the community are a stakeholder, you might want to know how the solution is affecting the incomes and time allocations of both men and women.

Step 3. For each stakeholder and/or step, ask: Are there leading indicators we should be tracking?

Are there analogous indicators we can track? How can we measure awareness and engagement?

How will we track and understand the dynamics of transformation that are occurring?

Step 4. If possible, include constituents and other stakeholders directly in this process.

TYPES OF INDICATORS Leading The impact of solutions can often take some time to become evident, such as months or years. In these cases, it makes sense to track leading indicators. For example, if your goal is to reduce the number of unwanted pregnancies (an effect that will take at least nine months to see), a leading indicator would be adherence to birth control. If your goal is to increase farmer income, a leading indicator would be the number of farmers growing high-value crops this season.

Analogous Sometimes it is difficult to see direct impacts. This is especially true when your design challenge is about trust or prevention.

In these cases, try to find an indicator that would logically lead you to conclude whether your goal is being met. For example, on a project to increase trust of healthcare providers, the team tracked the number of questions people asked doctors and nurses. Since trust is hard to measure, the team decided to use the posing of questions as an analogous indicator of trust.

Awareness When the goal involves people engaging or adopting something new, the first step is to know whether they are aware of the solution or design. Measuring awareness is a good early indicator to help understand how big the impact of the solution may be.

Engagement Like awareness, measuring the number of people who are engaged in a new program is often very meaningful.

For example, if the goal is to increase womenâ&#x20AC;&#x2122;s incomes through a program to export local art, the number of women actively seeking out and participating in the program is a meaningful indication of how much impact the program may have on local incomes.

Dynamic Changes When a new solution is introduced, it is important to track the changes over time that occur within the community, within households, and to the environment. These shifts can be completely unexpected, and are sometimes positive and sometimes negative. Its crucial to lookout out for these changes and unintended consequences early on in implementation.

TRACK INDICA TORS TRACK H

WATCH OUT

TIP #1

TIP #2

Often teams look for only the positive and intended consequences. To get a full view of impact, it is critical to challenge yourself to look for the negative and unintended consequences of solutions.

Ask yourself what you would expect to see happening if the solutions were improving the lives of people.

For example, if your goal was to increase household income, would women starting more businesses be an early indicator? If your goal was to increase childhood vaccinations, would the number of casual conversations about vaccines be a possible indicator?

It is critical to track the effects of solutions on men and women, young and old, empowered and disempowered â&#x20AC;&#x201C; even if your ideas are focused on other groups. Often the group that is not the intended audience for the solutions is a key player in the implementation and use of solutions.

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D Deliver Create a Learning Plan Method: Evaluate Outcomes

Facilitator Notes

Time:

1-2 Hours

Difficulty:

Step 1. Evaluation has many stakeholders, including constituents, community leaders, government officers, funders, and others.

When developing a plan to evaluate outcomes and impact, engage as many of these stakeholders as possible in the creation of your evaluation and learning plan. What will success look like from these multiple perspectives?

Step 2. Have the team discuss various qualitative and quantitative measurement methods. Refer to methods that have been tried as best practices, and brainstorm new methods that might be necessary to achieve your specific goals.

Which of these are appropriate for the challenge? Which of these methods speak to the interests and goals of the different stakeholders?

Step 3. Develop a plan that includes the right mix of qualitative and quantitative methods that will help the team keep learning about how to improve upon solutions and how to deliver those solutions more effectively.

method: Evaluate Outcomes Measuring outcomes is critical to the learning cycle. Without a good assessment of the impact a solution has made, there is often not enough information about the direction or goals for the next round of designs.

Assessing outcomes is important for everyone â&#x20AC;&#x201C; the implementer, the funder, the design team, and the community. Outcome measurement helps people understand where to best invest their resources. It is an opportunity to assess and plan for the future.

WATCH OUT

TIP

TRY #1

Outcome evaluation should not be a hurdle to the implementers, grantees, or design team. By viewing this phase as a continuation of design and opportunity for learning, outcome measurement can be a rewarding experience for everyone.

The measurement process is iterative â&#x20AC;&#x201C; return to stories and feedback based on learnings from quantitative measurements, and use stories and feedback to discover which variables to include in quantitative studies.

Use evaluation results as an opportunity for reflection and creation of new design challenges.

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Deliver Create a Learning Plan Method: Evaluate Outcomes

Water Siblings Pesticides

Environment Children

Facilitator Notes

NGO

Suppliers

TRY #2

Improved nutrition

Funders

Parents

Time:

Difficulty:

1-2 Hours

Employers

HOLISTIC IMPACT ASSESSMENT To assess the impact of a solution, program, or intervention, it is important to take a systemic and holistic view. Try the following exercise, or develop a method of your own.

1. Map or list all the stakeholders that your solution might touch â&#x20AC;&#x201C; in positive, negative, or neutral ways.

Try to create a complete list with many actors. A mind map format works well for this exercise. Remember to include stakeholders that your team may not be focused on, such as: funders, people in the same community or adjacent communities who are not receiving direct benefits, and non-human stakeholders such as animals, the environment, and natural resources. Put this map or list in a place where you can refer to it often.

2. As you see and track the effects of a solution, write the effects on the list or map. Color code the actors that receive benefits from the solution and those that experience negative effects. If possible, quantify the value of the effects with a standardized measurement system.

3. Using this learning, continue to iterate on the solutions to find ways to increase the positive effects and lessen negative effects.

4. Examine the solutionâ&#x20AC;&#x2122;s net value Use this exercise as a way to continue learning and challenge the team to improve on solutions in order to make the outcomes more and more positive.

Step 1. List the different stakeholders in the system or develop a map.

To develop a mind map, first write the name of the solution on a large poster or board.

Step 2. Draw a line from the solution to the primary stakeholders who will be affected by the solution.

Step 3. From each primary stakeholder, draw a line and list the secondary stakeholders that will be affected by the solution.

Step 4. Keep going by mapping more and more stakeholders, including human and non-human stakeholders. When you are finished, have the team assess which of the stakeholders might be better off as a result of the solution, and which might be negatively affected.

Step 5. Develop methods and techniques to measure the impact on the stakeholders who might be both positively and negatively affected.

Step 6. Hang the map in a place where people can refer to it often. Capture thoughts and learnings in a section of the map so that it becomes a living document for helping the team learn and engage in discussion.

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Case study Interventions to Reduce Unplanned Pregnancy A project in the United States by IDEO to reduce the number of unplanned pregnancies utilized a wide portfolio of measurement and evaluation tools throughout the process. The design team started by gathering statistics and reading reports on unwanted pregnancies. Next, they went into the field to learn first-hand why young women have so many unplanned pregnancies, and what tools they had available to them to design interventions. The team discovered that rational arguments rarely work to prevent unplanned pregnancies. They also learned that a primary means of communication for young women was SMS text messaging.

The understanding led to a number of solutions to help young women gain access to birth control pills and an SMS service that would remind women to take their birth control as directed. They got feedback on a number of different executions on the idea, which helped the team discover what worked and what didnâ&#x20AC;&#x2122;t. For example, a simple SMS service that spoke in conversational language was much more effective than a message written in a clinical, authoritative tone. From this, they found a partner that agreed to launch a minipilot to try out the SMS ideas. This method allowed for further learning and iteration.

For the next phase, several partners will launch the SMS solutions with a functional website among a large number of young women. During this larger pilot, the team will track indicators such as click-based behaviors on the web. In addition, the team will interview clinic workers for anecdotal evidence of behavior change and assess the success of the program in a participatory way. After the pilot is completed and the program is scaled up, the team will also begin tracking outcomes, eventually including statistical evidence such as the rate of decline in abortions and unplanned pregnancies.

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FIELD GUIDE 2ND EDITION

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intro :

FIELD CHECKLIST This Field Guide brings together the tools you’ll need to lead successful group meetings and individual interviews.

» C om p lete the follow ing :

Worksheet: Recruiting Plan Worksheet: Research Schedule

Included in the Guide are exercises to complete before going into the field, tips for successful interviews, and a place to capture highlights from the interviews while they are still fresh in your mind.

Worksheet: Identity, Power & Politics

» FA M I L I A R I Z E YO U R S E L F W I T H :

Tips: Observation Tips: Conversation Tips: Discussion Guide Tips: Documentation Exercise: Community Characters Exercise: Resource Flow Exercise: Factors & Forces Exercise: Journey Of An Offering Exercise: Aspirations

» B R I N G W I T H YO U :

Camera Video Camera (optional) Pens & Markers Gifts for participants (optional)

» T O D E B R I E F, F I L L O U T:

Highlights

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WO rksheet:

RECRUITING PLAN Recruiting the right participants is critical to success. Remember to recruit extremes and balance ethnic, class, and gender considerations.

Keeping track of the people you speak with can also be challenging. Use the worksheets to help keep a list of who you have spoken with and who you plan to speak with next.

Âť GROUP MEETING LOCATIONS Example Group Meeting Location: Village 1: Ansoung Commune of Kg Trabek District Unique Characteristic: Seasonal Flooding

Village 1: Unique Characteristic:

Village 2: Unique Characteristic:

Village 3: Unique Characteristic:

GENDER

For female participants, interviewers may need permission from male family members or community leaders.

Âť I N D I V I D UA L PA R T I C I PA N T T YP E S : Example Participant Types: Successful Villager Person struggling to survive Large family with relatives in the city Female headed household

Participant types:

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RESEARCH SCHEDULE » D etails

2 Teams: Asha & Anand

2 groups of 10 participants / mixed gender

» AC T I V I T Y

» Date

Village 1 Group Meeting

Example: 7 June / 8:00 - 10:00 (including setup)

5

» TEAM LEADS

There are many things to juggle when you’re out in the field. The more you plan ahead of time, the more smoothly the process will go. However, be prepared to adjust quickly; for example, you might need to increase the number of facilitators if you show up and the group is twice as large as expected.

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Worksheet:

IDENTITY, POWER & POLITICS » R ace & E thnicit y

» GENDER

» C lass & I ncome

Are ethnic, racial, and/or tribal distinctions important in this community?

Do women and men have unequal status in this context?

Are communities divided along class or income lines?

How might these issues affect the research and design challenge?

What activities within and outside the household do men and women do differently?

How will you deal with these issues in research?

How might income and class divisions affect the research and design challenge?

How will you deal with these issues in research?

How might gender inequality affect the research and design challenge?

How will you deal with these issues in research?

» THE ELITE

» T H E disem p ow ered

Who are the political or economic elites in this context?

Are any groups of people disempowered in this community (i.e. landless, children, disabled, etc)?

How might their influence affect the research or design challenge?

How might the research take into account the perspectives of the disempowered?

6

How will you mitigate the influence of elites in research?

How might the perspectives of these groups affect the research and design challenge?

Research with communities and individuals often involves issues of identity, power, and politics. To help think through these issues, answer the questions above.

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observation The things people say and what they actually do are often not the same thing. In-context observations are often useful for getting beyond what people say to understand what people do and feel.

In-context means being with people in their real settings, doing the things they normally do.

The stories that emerge from these encounters in the field show us new opportunities and inspire new solutions.

It is often very powerful to experience a process first-hand. Whenever possible, put yourself in the shoes of a customer and experience their activities directly.

For example: » Work with a farmer for a day in his or her field. » Live with a family for a few days. » Go with a sick person to seek medical care.

tip

During observations, look for: » Things that prompt shifts in behavior » Work-arounds and adaptations » Body language » Things people care about » Anything that surprises you »A nything that questions your assumptions about how the world works » Anything that you find “irrational”

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conversation The in-context interview is a lengthy conversation (often 1.5+ hours) that explores the values, desires, frustrations, and aspirations of your interviewee. The conversation should: Be long enough to make your interviewee feel like they are really being heard, and that allows them to go past their rehearsed “script” Be focused enough so that you feel you are getting useful information to address your design challenge Be general enough so that it feels like an open-ended conversation that can lead to unexpected insights Generate a true back-and-forth so that it feels like a conversation and puts the interviewee at ease Make the interviewee feel that the conversation is about them, not about the product, service, or organization you are representing

tip

»A sk open-ended questions, or questions that require a longer explanation than one word. »L isten and be attentive, even if taking notes at the same time »H ave a dynamic conversation, don’t interview from a script » Allow long pauses »A sk naïve questions (even if you’re the expert) to hear the explanation in their words »D on’t correct people; understand their perceptions and why they may perceive things differently than you » Remember: the participant is the expert!

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DISCUSSION GUIDE FOR FARMING » OPEN SPECIFIC Start the conversation with simple and specific questions your participants will feel comfortable answering. You may want to begin with a compliment and short introduction and then move on to questions about the participant’s current life. This is your chance to build rapport with the person you are interviewing and to ask basic questions that will help you understand their overall life situation, the make-up of their household, and their farming activities. » GO BROAD Prompt bigger more general topics that ask the participant to think about life, business, and the future. Ask about their hopes and dreams for the future, as well as the barriers to achieving their goals. This is the chance to understand how they want to change their lives, what is standing in their way, and what they perceive the real paths to a better future might be. » PROBE DEEP Ask deeper questions about the design challenge at hand & prompt with ‘what if’ scenarios. The last half of the interview is the time to ask questions that are focused on your design challenge. Make sure to ask concrete questions of the participant that will help you define what is and is not desirable to this person.

E xam p le inter v ie w guide

» OPEN SPECIFIC 1. Farm demographics How many people live on your farm?

Can you give me a tour of your farm?

2. Stories of recent past How did this year’s harvest compare to last year’s?

Do you expect next year to be better or worse?

3. What do different members of the household do?

What activities do women & men do differently? » GO BROAD 4. A spirations for the future - use Aspiration Cards Choose 3 cards that represent what you hope for your future.

What did you choose and why?

5. S ystem-based questions - use Factors & Forces worksheet The innermost circle represents your household.

The middle circle your community.

The outermost circle the nation and the world.

What factors in each of these circles affect your prosperity?

6. Household (or Community) Resource Flow — use the worksheets to illustrate or write household revenues and expenditures.

7. W ho do you turn to for information on farming and marketing your products? In your community? Outside the community?

Who do you trust the most? Who gives you the best information? » PROBE DEEP 8. Q uestions specific to innovation challenge (i.e Perceptions of Credit and Risk) Under what circumstances do people in your community take credit or loans? Have you ever taken credit?

What for or why not?

What was a recent, significant purchase? - Journey of an Offering Worksheet If you were offered a loan of $500, what would you do? acrificial Concepts 9. S Create 1 possible future product, service or agreement options for them to react to. It’s good to be provocative.

163 TIPS:

DISCUSSION GUIDE FOR HEALTH » OPEN SPECIFIC Start the conversation with simple and specific questions your participants will feel comfortable answering. You may want to begin with a compliment and short introduction and then move on to questions about the participant’s current life. This is your chance to build rapport with the person you are interviewing and to ask basic questions that will help you understand their overall life situation, the make-up of their household, and their farming activities. » GO BROAD Prompt bigger more general topics that ask the participant to think about life, business, and the future. Ask about their hopes and dreams for the future, as well as the barriers to achieving their goals. This is the chance to understand how they want to change their lives, what is standing in their way, and what they perceive the real paths to a better future might be. » PROBE DEEP Ask deeper questions about the design challenge at hand & prompt with ‘what if’ scenarios. The last half of the interview is the time to ask questions that are focused on your design challenge. Make sure to ask concrete questions of the participant that will help you define what is and is not desirable to this person.

E xam p le inter v ie w guide

» OPEN SPECIFIC 1. Home Setup How many people live in your home?

What do different members of your household do?

2. Home activities What is a day like in your home?

What kind of things do adults and children do differently?

Women and men?

3. Context, values How is life for you/your family/your community the same or different than it was last year? » G O B R OA D 4. Aspirations for the future – use Aspiration cards Choose 3 cards that represent what you hope for your future.

What did you choose and why?

5. Inividual (or Household) Health Flow – use the worksheet Use the worksheet to illustrate or write what contributes to or takes away from that person’s health.

6. System-based questions – use Factors and Forces worksheet The innermost circle represents your household.

The middle circle your community.

The outer circle, the nation and the world.

What factors in each of these circles affect your health?

7. Who is the healthiest person/household in your community?

Why? Who is the least healthy? What can/should be done for them to be more healthy? When you have questions about health, how do you find the answer? Where do you find the best information? » PROBE DEEP 8. Q uestions specific to the innovation challenge, e.g. perceptions of vaccines, choices around cost/value of doctor visits for different ailments.

Has anyone in your household needed to see a doctor recently?

9. Sacrificial concepts Create possible future product, service, or agreement options for them to react to. Use your assumptions and questions to generate sacrificial ideas. Keep it simple; the more it’s just about one idea the better.

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ti p s :

documentation Capture everything you see, hear, smell, feel, and taste during the observation. It’s important to capture the experience to bring back with you to the office and to share with team members who were not present.

Document the conversation with notes, photos, and/or recordings.

In addition to your Field Guide, bring a digital camera and, if possible, a video camera or voice recorder.

Write down first interpretations of what’s going on at the moment it happened; this critical information is often lost and difficult to remember later.

Immediately after the interview (or within 24 hours), jot down immediate big picture takeaways from the conversation using the Highlights page. The longer you wait, the more details and specifics may be lost.

It’s often helpful to work with a partner—one person responsible for leading the interview while the other is capturing and documenting.

Compare the experiences, perceptions, and interpretations of the two people, and feel free to switch roles every day or so.

tip

When documenting capture: » Personal details (family size, acreage, crops, diet, location) »D irect, unfiltered quotes (and your immediate interpretations) »T he expressions and feelings of the person, not just their words » Ways they interacted with others and things in the environment » Things they care about most »M oments or things that elicited emotional responses, positive or negative

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EXERCISE:

COMMUNITY CHARACTErs This exercise is good for: » Group interviews E y es

» Warming up the participants » Identifying individuals you want to follow up with after the session (often the eyes, ears or mouth of the community)

BRAIN

MOUTH

EARS

HEART

H ands

» S te p 1 :

Begin by saying you’d like to get to know the community better by understanding the different roles people in the community play.

FEET

» S te p 2 :

Ask the group to identify a specific person who represents the eyes & ears of the community.

You might need to qualify this with a definition (i.e. someone who is always looking outward beyond the community for new ideas to bring into the community). People may be reluctant to call out individuals, so remind them that there are many who play this role and you are simply looking for one example.

» S te p 3 :

Ask the group to explain why this person is the eyes & ears. If possible, ask for a specific story that happened in the last month when the person played that role. Take notes in the appropriate box.

» S te p 4 :

Repeat for mouth, brain, heart or whichever feel most relevant.

Community Characters Worksheet

This activity works differently with mixed-gender, men-only or a women-only group.

GENDER

If men are dominating in a mixed group, you may want to ask only the women to identify someone for a given role.

This can sometimes be a highly political activity, especially if there are community or government leaders present.

TIP

It’s fine to abandon the exercise if the political environment is making this activity difficult.

BRAIN E y es

EARS

MOUTH

H ands

HEART

FEET

» EXERCISE

NO.

1

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EXERCISE:

RESOURCE FLOW This exercise is good for: » Group interviews » Individual interviews » F or indi v idual inter v ie w s : Use Worksheet No. 2A

» F OR GROUP INTERVIEWS: Use Worksheet No. 2B

» S te p 1 :

» S te p 1 :

Ask if your participant or one of their children likes to draw. If not, it’s fine for the participant or the interview leader to write.

Ask if anyone in the group likes to draw (often a teenager will volunteer). If no one volunteers, the interviewer can make notes based on what people say.

» S te p 2 :

» S te p 2 :

Ask the participant to list everything that brings money INTO the household on the left side of the page. (This might include various crops, livestock, labor, etc)

If someone voluteered to draw, ask that person to work with the group to draw representations of everything that bring money INTO the community on the left side of the page. (These means of income might include various crops, livestock, labor, etc)

» S te p 3 :

Ask the participant to list everything that takes money OUT of the household on the right side of the page. (This might include seed, technology, education, medical expenses, etc) » S te p 4 :

Ask the participant to circle the item on the page that provides the largest income and the largest cost. Alternatively, you can ask them to rank order all the items listed.

» S te p 3 :

Next, ask them to draw or say everything that takes money OUT of the community on the right side of the page. (These expenditures might include seed inputs, water technology, education, medical expenses, etc) » S te p 4 :

Ask them to circle the items on the page that provide the largest income and the largest cost.

» S te p 5 :

Ask which items listed are controlled by the women and which are controlled by the men. Note this information down on the worksheet.

GENDER

» S te p 5 :

If desired, ask them to rank all the items from most money to least money.

Different cultures will often determine whether the man or the woman is in charge of decisionmaking and finances in the home. If one person is dominating the conversation, invite the input of the other. Sometimes it is helpful for the design team to split up into two groups—one to interview the husband and one to interview the wife. This enables you to cross-check and compare stories after the interview.

2A

2B

Resource Flow Worksheets

» EXERCISE

NO.

2

» EXERCISE

NO.

2

» EXERCISE

NO.

3

171

EXERCISE:

Factors & Forces This exercise is good for: » Group Interviews GENDER

» Individual Interviews In mixed-gender group sessions, the women will stay quiet in some cultures thoughwill they have determine many ideas to Different cultures often share. When askingthe for man responses these questions, whether or thetowoman is in you might say “I’d like five people to respond to this charge of decision-making and finances question” and point to five people who represent a mix in the home. If one person is dominating of genders.

the conversation, invite the input of the

is what helpful for the end of Sometimes the exercise, it ask brings Near the other. prosperity to the team women the up community design toof split into twoorgroups— household.

Note if these factors are different. one to interview the husband and one to interview the wife. This enables you to cross-check and compare stories after the interview.

» F OR GROUP INTERVIEWS:

» Broadening the conversation beyond one’s immediate individual needs and circumstances » Inviting conflicting opinions from different members of community for rich dialogue

» F or indi v idual inter v ie w s :

» S te p 1 :

» S te p 1 :

Tell the group that you want to understand all the factors and forces that affect their prosperity.

Tell your participant that you want to understand all the factors and forces that affect their prosperity.

Describe the diagram: » The innermost circle is the community » The second circle is the nation » The third circle is the world

Describe the diagram: »T he innermost circle is the person and his/her family » The second circle is their community »T he third circle is their country and the world

» S te p 2 :

Ask what factors in the community, in the nation and in the world BRING prosperity to the community (i.e. health, work ethic, children in school, etc). Start with the community level and build outwards to the world. Take notes in the appropriate circles. » S te p 3 :

Ask what factors in the world, in the nation and in the community take prosperity AWAY from the community (i.e. violence, cost of fuel, legal status, property ownership, climate change, globalization, etc). Take notes in the appropriate circles.

» S te p 2 :

Ask what factors in the family, in the community and in the nation BRING prosperity to their family. Start with the household level and build outwards to the nation. Take notes in the appropriate circles. » S te p 3 :

Ask what factors in the nation, in the community and in the household take prosperity AWAY from their family.

Take notes in the appropriate circles.

Factors & Forces Worksheet

173

EXERCISE:

journey of an offering This exercise is good for: » Individual interviews » Understanding what a person considers when purchasing a new product or servicefor the first time

» S te p 1 :

Tell the participant that you want to know what they think about when deciding to make a purchase.

» S te p 2 :

Ask the participant to think of the last time they bought a new thing or service.

» S te p 3 :

Journey of an Offering Worksheet

Show the participant the cards: talk, look, compare, try, money. Ask them to tell you how they did these things when making their purchase.

Talk: Did you talk to people about the product or service? Who and why?

What were your questions? Did you talk to anyone about it after you made the purchase?

GENDER

Different cultures will often determine whether the man or the woman is in charge of decision-making and finances in the home. If the man is the dominant voice in the conversation, listen to his explanation first, then ask for the woman to describe the journey from her perspective.

Sometimes it is helpful for the design team to split up into two groups— one to interview the husband and one to interview the wife. This enables you to cross-check and compare stories after the interview.

Look: Where did you see this product or service? What did you think at the time?

Compare: What other options did you consider? What else did you compare this to?

This exercise can also be used to discuss a potential product or service.

TIP

TRY

COMPARE

SAVE

LOOK AT MARKET

GET CREDIT

TALK

177

EXERCISE:

ASPIRATIONS EXERCISE This exercise is good for: » Engaging participants in group and individual interviews » Getting people to talk about what they desire for the future » Making people feel comfortable talking about broader issues

» S te p 1 :

Start by saying that you want to know what the participants hope for and desire for the future.

» S te p 2 :

Tell the participants that you have a set of cards with various pictures on them.

Journey of an Offering Worksheet

» S te p 3 :

Ask the participants to look through the cards and choose the three pictures that represent what they hope for in the future.

» S te p 4 :

TIP

If a participant asks, “what is this?” to a picture, tell them that it is anything they think it is, or if the picture doesn’t make sense to them, skip it and move on.

TIP

Have the participants explain what the picture is in their own words, do not interpret the pictures for them. Often people will choose something that represents one thing to them, but may represent something different to the researcher.

If appropriate, you can ask people to choose the three pictures that represent what they fear in the future after they are finished with the first exercise.

» S te p 5 :

After the participants have chosen their pictures, ask “Tell me what you chose” and have them describe the picture. Then ask: “Why did you choose this?” Document both the pictures and explanations.

TRY

You may find that you need different pictures for your design challenge or the community you are working with. With the help of the internet, find some pictures and print them out to add to this group of pictures.

42

43

44

45

46

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worksheet:

HIGHLIGHTS » T y p e of Acti v it y: » Date :

» N ame :

» L O c AT I O N :

T hings the partici pant( s ) said or did that sur p rised you or most memora b le quotes :

M ain themes or learnings that stood out from this inter v ie w :

Group Interview

Individual Interview

In-Context Immersion Other

T hings that matter most to the partici pant( s ) :

N e w to p ics or questions to ex p lore in future inter v ie w s :

188

Acknowledgements This Toolkit is the result of a project funded by the Bill & Melinda Gates Foundation. The BMGF brought together four organizations—IDEO, IDE, Heifer International, and ICRW—to partner in the creation of a method for guiding innovation and design for people living under $2/day.

As one of the key developers of the Human-Centered Design process, an IDEO team led the creation of this Toolkit. While IDEO takes responsibility for its shortcomings, we cannot take responsibility for any of its successes. These successes are the outcome of an extraordinary collaboration of partnerships on many continents— and the individuals that went above and beyond to prototype and field test these methods. Working on-site with IDE teams in Ethiopia, Zambia, Cambodia, Vietnam, and the US, as well as with Heifer International in Kenya, the HCD process was adapted for use with constituents in developing contexts.

IDEO revised and re-released the second edition of the Toolkit drawing on other social impact projects and on inspiration from outside users of the Toolkit.

Thanks to Kara Pecknold for sharing her use of the Human-Centered Design Toolkit in Rwanda as case study. Thanks also to Fidel Calderon and Indhira Rojas for the visual design of this edition. To add your own experiences or give feedback for the next edition of this Toolkit, email info@ideo.org This is a working prototype.

Let’s keep learning, adapting, and iterating together.