Innovation in tough times by Network London

Innovating at a local level Innovating at a local level part one: methods Geoff Mulgan, Young Foundation Geoff Mulgan Young Foundation Steve Johnson, Capital Ambition Daniel Oppenheimer, NESTA 29 June 2009

Social and Public Innovation – Social and Public Innovation methods and tools Geoff Mulgan Geoff Mulgan

Background – the Young Foundation The field of public and social innovation – what’s happening Methods and tools – what’s useable Why systematic thinking and practice of innovation matters to London’s public services The example of health – The example of health implications for other implications for other parts of the public sector

Michael Young… Young Thinker and writer (the Rise of the Meritocracy, Family and Kinship in East London) Creator of over 60 organisations Seen b S by many as th the world’s ld’ most successful social entrepreneur

History of turning ideas into reality tackling most acute reality, needs

Young Foundation approach ... ‐ beginning with observation, ethnography, engagement ‐ design of new models with partners ‐ fast testing, learning by doing, then l launch as new organisations, whether h h h NGOs, public or private sector ‐ change through example and action change through example and action

• Local projects bringing together groups of local councils national government local councils, national government ...

Examples: health & well being well‐being • Health incentives company in Birmingham • Emotional resilience – 4000 pupils age 11‐12 pupils age 11 12 Tyneside, Tyneside Herts, Manchester • Living life to the full – with volunteer counsellors in l t ll i Manchester • Active Community Living in Brent •Neuroresponse in London

Examples: education • Studio schools – new small schools integrating work and learning for 14‐ 19 year olds; seven in first phase • Fastlaners for unemployed graduates • Uprising for 18‐25 year old young f 18 25 ld leaders • Faking it – g based on successful TV series aimed at young unemployed

• Web‐based projects ...

School of everything ‐ where everybody can teach and everybody can learn y y

•II

How do they happen? H How do they grow? d th ? What makes them tick?

……

EU – Barroso commitments, EIB etc Obama – Office of social innovation, education innovation funds education innovation funds Pioneering work in Korea, Denmark, Pioneering work in Korea Denmark Finland, Brazil

Mondragon/MIK (Spain) Innovation Networks for Communities (US) Communities (US) CCCPE (China) Mindlab (Denmark) Heategu (Estonia) Lien Foundation (Singapore) SITRA and STAKES SITRA and STAKES (Finland) MIK/Mondragon (Spain) Fuping Development Development Institute (China) Mandag Morgan (Denmark) Cisco Philips Design Macquarie Bank Sciences‐Po (France) Kellogg Foundation (US)

TESE (Portugal) Hope Institute (S.Korea) MaRS (Canada) ( d ) Sitawi (Brazil) SEKN (L. America) Shuttleworth Foundation (S. Africa) ASIX A t li C t f S i l Australian Centre for Social Innovation Monitor Institute (US) Sustainable Everyday Project Sustainable Everyday Project (Italy) Euclid (Europe) Young Foundation (UK) Young Foundation (UK) Innovation Unit (UK) NESTA (UK) DIUS (UK) DIUS (UK)

Center for Social Innovation (Canada) Doors of Perception (Int.) Tallberg Forum (Sweden) Kennisland (Netherlands) Social Innovation Generator (Canada) OECD Civicus (Int.) BEPA/European Commission World Health Organisation

• A series of research studies – – – – – –

social innovation l public sector innovation patterns of growth what makes localities innovative the role of business and venture capital next steps on social enterprise policy next steps on social enterprise policy

1.Innovation comes from connecting bees (small groups, individuals , social entrepreneurs with insight and ideas) and trees ith i i ht d id ) d t (big organisations ‐ governments, companies foundations with power companies, foundations with power and money). As in science and medicine intermediaries are key – but often l ki lacking.

2. Growth depends on effective supply and effective demand , and the right organisational forms (loose diffusion, franchising, licensing, organisational growth)

3. Many social innovations cross sectoral boundaries as they grow ‐ yg no analytic methods or policy tools which are y p y single sector will be fully effective

4. The field is rich in ideas and methods (from crowd sourcing to user‐led service design, social incubators to RCTs) but largely unaware of them

1 Prompts

2 Proposals 2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

UK health system 2009 • Attempting a comprehensive innovation system in public service with 1.2m employees • Recognition of need for fundamental change – to roles of hospitals, primary care, chronic disease • Improving supply of innovation through: a I i l fi ti th h series of funds – for public sector workers, social entrepreneurs (grants, loans, g guarantees, equity), prizes, festivals, , q y), p , , investment in spin outs alongside classic R&D, some targeted to strategic priorities (eg obesity) some open • Support for incubators, pilots, zones, Support for incubators pilots zones venturing, Randomised Control Trials, collaboratives, service design • Formal management and accountability for Formal management and accountability for pipelines, with open innovation model

Improving demand (diffusion, adoption &c)... • Reshaping commissioning, purchasing to be pro‐ p g g p g p innovation, with commissioners performance managed according to support and demand • SHA ‘duty to promote innovation’ • Annual Innovation Reports • Work on metrics &c to capture social value and ‘Invest to save’ options (eg Social Impact Bonds)

Health – regional innovation funds Supporting SHA strategic priorities on Quality, Innovation and Productivity Strategic focus

Attracting, selecting and investing in a portfolio of innovative initiatives to drive dramatic improvement in quality and productivity* and productivity*

Building an B ildi organisation and broader ecosystem with the capabilities and capacity to support innovation

Pre‐ investment activities

Organisation structure & capabilities & capabilities

* Initiatives may include new services, for profit or social businesses, 30 new community services or partnerships

Post‐ investment activities

Maximising impact of investments through support and evaluation

Governance, performance management & lesson l learning i

Performance managing the funds appropriately

1 Attract ideas

Ideas may be at every stage of Darzi evolution: ▪ Birth** ▪ Growth ▪ Diffusion

2 Select ideas

Evaluation “stage gates”, leading to either more support or exit if: ▪ investment objectives are achieved, and investment is sustainable without RIF support, or ▪ additional support additional support will not provide value for money

* Described as the “Identification” stage in NSR

3 Invest

Evaluate investments

Support i investments t t

Manage investments

Exit

Where next? Where next? • Spread of new units within governments – p g offices of social innovation in the White House, Cabinet Office • Spread of incubators, investment programmes (Barroso and EU) and intermediaries d EU) d i t di i • Spread of departmental innovation capacities (Denmark) • National recovery plans adding innovation elements (eg National recovery plans adding innovation elements (eg US $700m education innovation fund) • A 1% norm for public budgets? p g • A field becoming more self‐aware, more systematic and more effective at innovating in critical fields from ageing t li t h to climate change

“It is common sense to take a method and try it. If it fails, admit it frankly and and try it. If it fails, admit it frankly and try another. But above all, try something.” thi ” Franklin D. Roosevelt F kli D R lt

Questions for discussion • What What methods are used – methods are used – and should be used? and should be used? Eg for more efficient models of eldercare; more effective job creation for 18‐24 effective job creation for 18 24 year olds? year olds? – To generate a wider pool of ideas? T t id l f id ? – To prototype and test? – To embed and then scale?