Unravelling the business models of Think Tanks

Unravelling the business models of think tanks RĂ­o de Janeiro, 17 September 2015

Objectives

• Describe think tanks business models

• Understand how business models relate to context • Research questions: • What are frequent business model decisions that think tanks make?

• How do these decisions relates to context?

• Provide think tanks with insights that will allow their leaders to shape their organisations’ business models

Research methods • Literature review on think tanks’ business models • Definition of dimensions within the business models concept • Selection of case studies: accessibility and diversity of think tanks (pilot project: does the approach provide us with useful insights into think tanks’ business models?)

• Interviews with think tanks and desk research • Synthesis paper

Dimensions Value proposition

When producing and selling their bundles of products and services, what value do think tanks offer to their users?

Core business activities

What are the activities that think tanks carry out in order to create value propositions, and consequently, generate revenue for their organisation?

Leadership

What are the characteristics of leadership that support effective business models?

Governance

How does the organisation set up its governance in order to make decisions regarding its business model?

Funding structure

What are the organization’s main sources of funding? How does the organisation organize and manage the different function regarding funding?

Staffing

How do think tanks identify, attract and motivate their staff members?

Financial management

How does the organization deal with revenues and costs to ensure its sustainability?

Communications

How do think tanks define their key audiences and what strategies and channels do they develop to reach them?

Preliminary Findings Dimension Value proposition Core business activities

Governance

Common questions •

Some answers

• What are the features that the think • tank claim to differentiate from other • peers?

•

•

What are the activities through which • the think tank deliver its value proposition to its stakeholders?

•

What is the purpose on the governance arrangement?

Who should we the members of the Board?

•

• • • •

• • Funding structure

•

What are the think tank’s main funding sources in a given context?

How will the think tank generate additional incomes?

How does the think tank organize the fund raising function?

• • • • • •

Claim robust research Thematic expertise / General expertise Pure research / Advocacy Audiences: policy makers / civil society Portfolio of activities, not only research

Goal: sustainability (strategic direction) / political / managerial / fund raising Internal / external boards Levels of governance: light / heavy Strong international cooperation dependence Scarce government support Difficulties in engaging private sector Core funding + project-based modality Alternative sources: own publishing company Being part of a private organization Centralization / Decentralization of FR function (incentives)

Preliminary Findings Dimension

Leadership

Common questions • • • • •

Staffing

• •

Financial management

Communicati ons

• • • • •

What should be the skills of the director?

What is the role of the founders?

How does the leader relate to other members of the think tank How does the think tanks organize transitions in leadership?

Some answers • • • • •

Different skills The role of the founder Level of decentralization Horizontal / Hierarchical Transition: in house / external

• • •

Research + Communication Flexibility Own team / Network of researchers

How does the think organize its financial management capacity?

How do the think tank create savings?

• •

In house team / External team Accounting / Finances

What are the think tank main audiences?

What are the channels and products to reach them?

How does the think tank organize the communication function?

• • •

Different audiences (evolution) Toolkit of products Centralization/Decentralization

Where does the think tank seek for staff members?

How does the think tank attract, retain and motivate staff?

What are the typical contractual arrangements with the staff?

On the business models’ approach • Comprehensive approach • X-ray of the think tank: reflexive process • Think tanks do not understand the same by ‘business model’ • Some dimensions deserved more attention than others: funding structure

On collaboration • Being two was an advantage, but a third or external view was very helpful • Time zones was a challenge, commitment of the team to face it • Regular meetings were needed

Next Steps • Share findings with KSI grantees in Jakarta • Proposal to continue working on these issues: new regions, new cases studies, new researchers, quantitative tools

Leandro Echt

Ashari Cahyo Edi

Centro de Análisis y Difusión de la Economía Paraguaya

Institute for Research and Empowerment