Innovation Works: Executive Summary of Strategic Plan (2024-2026)

Strategic Plan

Executive Summary 2024- 2026

STRATEGIC PLAN

Dear Community Members, I am pleased to present the Innovation Works (IW) Strategic Plan for FY 2024-2026, which outlines IW's future direction and incorporates valuable contributions from our strategic planning committee. We engaged in a thorough and collaborative process over the past year to evaluate our progress, gather diverse perspectives, and refine our path.

Before delving into the details, I want to reflect on our journey. IW was launched publicly five years ago as an innovative experiment addressing racial wealth inequality through social entrepreneurship and impact investing. The first five years were a pilot phase where we developed programs to test our theory of change for viability and impact. We are immensely grateful for the support and encouragement from all of you throughout this transformative period.

The strategic planning committee, consisting of dedicated individuals from our team, community partners, and stakeholders, played a crucial role in shaping the future of IW. Their tireless efforts and valuable insights have allowed us to evaluate our progress, identify areas for improvement, and refine our strategic direction. While you may not witness immediate, sweeping changes to our operations, the absence of radical shifts is an important validation of our work. It signifies that our approach has proven effective and aligns with the needs and aspirations of our community.

Now finalized, the real work begins. Accomplishing the goals in this Strategic Plan will require community-wide buy-in and commitment. This strategic planning process is not a one-time event but an ongoing commitment to continuous improvement. We recognize the need for adaptability and flexibility as we navigate the evolving landscape of social entrepreneurship and wealth inequalities. Our strategic plan provides us with a roadmap for the future. However, it is through collective action and community engagement that we will turn these aspirations into reality. We will build upon the successes of the past five years, leveraging our collective expertise, partnerships, and resources to make a lasting and transformative impact.

I extend my deepest gratitude to our strategic planning committee members, whose dedication and commitment have been instrumental in this process. I also want to thank our community for supporting and believing in our mission.

Together, we will shape a future where everyone has equal access to opportunities and where innovation drives positive change.

In the coming months, we will provide updates on the specific initiatives and actions that will emerge from our strategic plan. Please stay connected and continue participating in this incredible journey.

Thank you for being an integral part of IW's story. We are grateful for your ongoing support as we forge ahead toward a brighter, more equitable future.

Sincerely,

A. Jay Nwachu President & CEO Innovation Works & Ignite Capital

STRATEGIC PLAN

OUR VISION A Baltimore without neighborhood or racial wealth divides.

OUR MISSION Empower members of disinvested communities to build, own, and operate successful social enterprises that create sustainable neighborhood economies.

OUR VALUES Accompaniment shapes our culture and drives the application of our values. IW stakeholders walk alongside each other, actively listening with limitless expectations. Stakeholders contribute time, talent, treasure, and lived experiences to support innovative social enterprises in Baltimore. Other indicators of our values include Dignity, Inclusion, Belief in Others and For the Greater Good.

WHO WE SERVE IW serves social entrepreneurs working in or targeting their impact in historically disinvested communities in Baltimore City. By prioritizing local Baltimore leaders, IW ensures that its initiatives are rooted in the experiences and needs of the community, making them more place-centric, mission-aligned, and community-informed.

WHERE WE OPERATE IW is a place-based community and economic development organization operating in Baltimore City, While entrepreneurs served by IW produce goods and provide services that reach far beyond Baltimore City, we prioritize community and economic impact in Baltimore City.

The Process

STRATEGIC PLAN

The strategic planning process began with direction from the Board. Impact Principals, a local consulting firm, was retained, and a volunteer Strategic Planning Committee (SPC) was formed. The assembled SPC was intentionally diverse and inclusive to represent Innovation Works (IW) stakeholders, including mentors, social entrepreneurs, financial supporters, staff, and board members. The committee brought various perspectives, backgrounds, and expertise to the process.

Listening to Spheres of Influence The committee engaged in an extensive data-gathering process that actively sought input and insights from stakeholders who reflect the demographics of the communities IW aims to serve. The committee facilitated meaningful discussions on various topics, including the history and origins of Innovation Works, perspectives from the economic and community spheres, and insights from social entrepreneurs at different stages. Supporting research documents and reports covering citywide economic and community development plans, neighborhood master plans, and ecosystem assessments ensured the committee operated from a firm foundation. This comprehensive approach allowed for a wellrounded understanding of the local context and further enriched the strategic planning process.

4

8

8

26

Months of Listening

Panel Listening Sessions

1:1 Interviews

Research Artifacts

Prioritizing Diverse Voices The participation breakdown of the stakeholders involved in the process showcases the commitment to inclusivity and amplifying underrepresented voices. Of the engaged stakeholders, approximately 52.5% are Black, underscoring the significance of centering the experiences and needs of Baltimore's Black communities.

Analysis Findings and Formulating Priorities The committee documented valuable insights from this data-gathering process, which were analyzed and distilled into broader themes. The planning team identified critical insights from the feedback, forming the foundation for further exploration and developing strategic directives during a day-long retreat.

The FY24-26 Strategic Plan marks Innovation Works’ shift from our five-year pilot phase to our ongoing commitment to amplify impact.

Who We Are Innovation Works is a social enterprise support organization committed to improving the quality of life in Baltimore's Black Butterfly neighborhoods, where the persistent racial wealth divide is perpetuated by historic and ongoing disinvestment.

STRATEGIC PLAN

THE CHALLENGES WE FACE The poverty rate for Black residents in Baltimore (24.5%) is twice as high as the rate for white residents (12%). The median household income for white households in Baltimore was around $83,000, while for Black households, it was roughly $42,000. Additionally, there are twice as many Black households with zero net worth than white households. According to the 2023 Prosperity Now Scorecard, homeownership rate for white households in Baltimore was approximately 58%, while for Black households, it was only 43%. A column in The Baltimore Sun reported that the average unemployment rate for Baltimore City’s African American residents is nearly 10 points higher than for white residents.

WHO WE SERVE Due to the ongoing legacy of harmful policies, Baltimore’s predominantly Black neighborhoods face chronic disinvestment and limited access to resources, perpetuating the racial wealth divide. Dr. Lawrence T. Brown coined the term "Black Butterfly" to illuminate these resilient communities that bear a disproportionate burden.

In a study of capital flows across Baltimore's neighborhoods, the Urban Institute found that neighborhoods with less than 50% Black residents receive 6.6 times more in small business loans than predominantly Black ones. Overall, the study found significantly less investment in predominantly Black neighborhoods than in neighborhoods with fewer than 50% Black residents.

THE POWER OF SOCIAL ENTREPRENEURSHIP Social entrepreneurship has the power to drive transformative change. Through innovative thinking and a deep understanding of local needs, social entrepreneurs create more equitable, sustainable, and just solutions to the challenges their communities face.

What We Do

STRATEGIC PLAN

Core Programs and Offerings Growing Social Enterprises

Rooted in Neigborhoods

Access to Capital

Access to Markets

Comprehensive support system for social entrepreneurs (SEs) who lead social enterprises. Offerings include an idea to scale pipeline, executive mentor network, extensive curriculum, indvidualized support and cohort based programs.

Leveraging IW's core assets, such as its curricula, mentor network, and impact fund, in partnership with local partners, to support community and economic development plans in historically disinvested Baltimore neighborhoods.

Through Ignite Capital, IW's impact investment fund, directly invest in social enterprises in the IW network.

Through Ignite Capital's co-investor network, attracted additional capital to the social enterprises. Champion innovative models for financial social enterprises in the broader ecosystem.

Support social enterprises with knowledge and social capital reosurces to gain access to markets, specifically to drive diverse revenue streams. Develop market based knowledge and insights to guide enterprises to driving revenue with minimal friction.

Key Performance Indicators from 2018 to 2023

400+

social entrepreneurs engaged

15 110+

160+

under active support

executed cohort programs

10,000+

hours in pro volunteers in bono support the executive from executive mentor mentors to social network enterpreneurs

100%

87% OF BLACK

60%

OF FEMALE OR GENDER NON-COFORMING

led enterprises in the IW pipeline

supported enterprises serve or are based in majority Black neighborhoods

through Ignite Capital

21

*

0

$2M+ $1.6M+

enterprises supported through in committed investments

investments

defaults in investments made

$3M+

attracted co-investor capital to portfolio enterprises

*excluding microgrants

105

in deployed capital

** jobs supported

**36% are fulltime jobs

across portfolio enterprises

STRATEGIC PLAN

Strategic Priorities

STRATEGIC PRIORITIES (FY23 through FY26) The following strategic priorities were informed by the several months-long strategic planning process, which took into account insights gathered from many stakeholders. All existing IW focus priorities were examined, and new ideas were explored. The following priorities do not indicate a significant departure from IW's current priorities; however, in many cases, existing priorities were reduced in scope, refined for clarity and focus, or expanded in scope. More importantly, these priorities were assessed for alignment and resource allocation.

IW's strategic directives for FY24-26 are intended to achieve the following.

These goals will allow IW to continue building its comprehensive social entrepreneurship support platform while incrementally growing its direct outputs.

1

Deepen our ability to serve our primary client: Social Entrepreneurs (SEs) Key Objectives 1.1 Manage for Pipeline Growth and Connectivity through authentic relationship-building grounded in our values of accompaniment, dignity, inclusion, and belief in others 1.1(a) Launch new pipeline management CRM to foster a more connected learning and support communities for SEs and Mentors.

1.1(b) Establish framework and pilot peer advisory SE groups to minimize silos and increase opportunities for social and knowledge capital connections 1.1(c) Formalize a Social Enterprise Advisory Group within the IW network 1.1(d) Strengthen Mentor Network and ensure mentors are effectively organized and supported to meet SE needs (Curriculum Development, Mentor Growth, Diversity, etc) 1.2 Expand IW’s Support for Social Entrepreneurs Learning, Effectiveness and Wellbeing (Human Capital Focus) 1.2(a) Hire curriculum consultant to comprehensively review all IW curriculum assets (modularize, feedback loop, learning pathways, etc) / Revamp IW curriculum (re)map learning pathway, modularize content for just in time SE support and improve feedback loops of curriculum effectiveness. Integrated into the CRM platform.

1.2(b) Expand IW’s consideration and support of the ‘Whole Person’, ensuring social enterprise leaders are able to meet their basic needs while serving others. Collaborate with resource providers and the broader corporate community to identify and broker cost effective offerings to the IW network.

1.2(c) Support SEs with resources to help them capture and communicate their impact on Baltimore's communities 1.3 Pursue Impact Multiplier Opportunities (Financial Capital Focus) 1.3(a) Explore new strategic initiatives designed to accelerate revenue growth for SEs in specific markets such healthcare, food and beverage wholesale distribution and local government.

1.3(b) Collaborate with Ignite Capital to grow the field of impact investing in Baltimore / Grow Ignite Capital’s offerings to SEs, Grow Fund Size, Grow Ignite Capital’s stature as a leader in Impact investing.

What Success Will Look Like ▪ IW support resources and systems are in place and adequately staffed to support SE Development and pipeline growth ▪ SEs regard IW’s integrated offerings, including curriculum, mentor network, whole person care and other resources, as meaningful and effective in supporting their growth

2

Focus place-based engagement in a few key neighborhoods Key Objectives 2.1 Build community trust and advance holistic economic development in anchor neighborhoods through an assets-based approach, trauma-informed practices, physical presence, and long-term investment.

2.1(a) Move IW headquarters (and team) into Southwest Baltimore office, maintain East Baltimore presence 2.1(b) Strengthen relationships with SW and West Baltimore neighborhoods and establish a framework for IW’s anchor neighborhood partnership models.

2.1(c) Develop engagement plans for 1-3 specific anchor neighborhoods 2.2 Unwaveringly maintain focus on optimizing social innovation as a pathway for reversing the effects of chronic disinvestments in Baltimore Black Butterfly communities by centering IW offerings around core strengths and assets (social enterprise development, access to capital/capital attraction, network development, etc.).

2.2(a) Integrate IW’s offerings fully in select anchor neighborhoods (SW and West Baltimore) 2.2(b) Develop and deploy project-based neighborhood offerings for non-anchor neighborhoods 2.3 Maximize outcomes through partnerships and social capital 2.3(a) Explore new fundraising opportunities to support neighborhood strategy and attract capital to neighborhoods 2.4 Grow/Refine staffing capacity to effectively execute neighborhood strategy

What Success Will Look Like ▪ IW is regarded by Baltimore stakeholders as an effective partner in executing economic development strategies for neighborhood economies ▪ Hyper local community and economic impact can be measured and attributed to IW’s efforts

3

Develop clear ways to measure, evaluate and communicate the impact of our work Key Objectives 3.1 Refine IW’s long-term goals to ensure they are attributable to IW’s offerings and aligned with the long-term vision and mission.

3.1(a) Review 10 Year Goals, align them with organizational priorities and consider any adjustments and refinements 3.2 Create systems and practices to measure, evaluate, and communicate progress toward goals on a consistent basis 3.2(a) In partnership with IW’s Mission Identity and Impact Committee, establish a framework for impact measurement, identify the most effective set of tools for measurement, and resource impact measurement organizationally 3.3 Develop shared language across IW’s theory of change, logic model and operating principles, accessible to all stakeholders

What Success Will Look Like ▪ IW’s Staff and Board have a clear understanding of what the organization’s goals are and how their participation contributes toward them ▪ IW is able to communicate clearly and timely performance against its goals and impact on Baltimore ▪ Core stakeholders, social entrepreneurs and neighborhoods, consider IW’s impact reporting as reflective of their relationship with the organization

4

Build out organizational capacity with a cohesive and committed team Key Objectives 4.1 Conduct full analysis of strategic plan focus areas, assess staffing alignment necessary to balance capacity against priorities 4.1(a) Conduct an in-depth analysis of business models of similar organizations from organizational capacity & financial sustainability perspectives 4.1(b) Develop a 2-3 year staffing plan for IW (FY24 and FY25) 4.2 Establish and cultivate a dynamic leadership team, including the hiring of new director(s), to support the CEO in executing the vision 4.3 Develop a succession plan for the organization

What Success Will Look Like ▪ There is an organizational growth chart that aligns with the strategic plan and supported with a financial plan ▪ Staff wellbeing is prioritized and values-centered

5

Enhance the field of social innovation in Baltimore and beyond Key Objectives 5.1 Position IW as a thought leader, innovator and best in class practitioner in Baltimore’s social innovation ecosystem 5.1(a) Continue to partner with other ecosystem leaders, such as The BASE Network and Social Enterprise Alliance to advance a more integrated and collaborative ecosystem 5.1(b) Conduct and monitor in-depth review of Baltimore entrepreneurial support ecosystem & national best practices to remain informed and current 5.1(c) Convene stakeholders to advance thought leadership within the scope of IW’s mission 5.2 Through partnership with social enterprises in the IW network and ecosystem partner, provide thought leadership and advocacy around the potential for Black and brown entrepreneurs to transform historically disadvantaged neighborhoods 5.3 Strengthen partnerships in and outside of Baltimore, where appropriate, to advance IW’s mission 5.4 Collaborate with Ignite Capital leadership to lead the field of impact investing directly into social enterprises and historically disinvested communities

What Success Will Look Like ▪ The field of social enterprise is more broadly accepted and embraced in Baltimore ▪ IW is respected and well-regarded by its ecosystem peers and other stakeholders ▪ IW’s brand and image is in alignment with its stated mission and purpose

Establish a roadmap for achieving financial sustainability

6

Key Objectives 6.1 Deepen local relationships and efforts to solidify local multisector support of IW's mission.

6.1(a)Continue to gain the trust of local families, philanthropic partners, and corporations.

6.1(b) Explore strategic opportunities with the public sector 6.2 Grow national support to attract resources to Baltimore for both IW and its supported enterprises 6.2(a) Pursue support from non-Baltimore public and private foundations.

6.2(b) Continue partnership with Weaving Impact, IW's national replication partner.

6.3 Explore earned revenue opportunities, leveraging IW's core assets and offerings.

6.4 Maintain a practice of financial transparency and impact outcomes reporting to all stakeholders.

What Success Will Look Like ▪ Philanthropic partners understand and are attracted to IW’s case for investment ▪ Shift IW’s financial sources to avoid overconcentration in the local market

STRATEGIC PLAN

Measurable Goals

MEASURABLE GOALS (FY23 through FY26) The foundation for success in this plan lies in setting clear and measurable goals. These goals serve as the guiding stars that steer IW toward its desired future. This section will delve into the specific, quantifiable goals critical to our strategic plan. These goals are not merely aspirational statements but quantifiable milestones against which we will assess our progress and measure our achievements. Establishing measurable objectives ensures that our strategic efforts remain focused, accountable, and aligned with our overall mission and vision.

01

Grow its number of Actively Supported social

02

Ensure that 25% of pipeline enterprises are scalable beyond the Baltimore market.

03

Grow Mentor Network to 130 active mentors. Grow diversity in the mentor network to 40% Women and 50% POC,

04

Maintain relationships in SW and West Baltimore. Consider expanding to one additional community, as appropriate.

05

Facilitate $8M of revenue to SEs through Access to Capital initiatives.

06

Directly invest $ 1 million per year via Ignite Capital.

07

Through the co-investor network, facilitate additional investments into enterprises at a 2:1 ratio

enterprises from 160 to 200.

Grow With Us! "I’m really excited about the trajectory in front of us and early successes and what I really think it means for Baltimore..."

- Jay Nwachu President and CEO of Innovation Works & Ignite Capital @iwbmore labore

Contact Us:

1400 Greenmount Avenue Suite B01 Baltimore, Maryland 21202 (410) 921-1035 info@iwbmore.org