Monday, November 8, 2010

Leading Socially before Business

I am fascinated by Christopher Columbus (aka Cristobal Colon).  After reading about La Fageda, I became more interested in the 3rd business model of Social Business Ventures. This model appears the most complex & challenging but also the most sustainable.  Although, La Fageda ranks 3rd compared to Danone and Nestle, it certainly stands out on its own due to its social impact and positive leadership. 

Colon expressed how "La Fageda demonstrates that a company that starts with people, putting people before profits, can grow to be a strong organization.  That strength and that culture act as levers in addressing the multiple and seemingly insurmountable challenges that come along."

I really admire how Colon was not intimidated by Nestle and Danone, the leading dairies in the industry.  He firmly believed in his passion to help the mentally ill and kept that at the forefront of the venture. 

I was curious to learn about the insurmountable challenges Colon references.  I found an analysis of Colon's work by the IESE Business School out of the University of Navarra.  It explained how due to the nature of the company, Colon had to be conscious of how they marketed the brand and abide by labor arrangements established for companies working with people with special needs. 
www.ieseinsight.com/doc.aspx?id=984&ar=3&idioma=2


As a business, Colon differentiated La Fageda by focusing on a segment of the population that were willing to pay for a higher quality product including "farm-style yogurt" made from milk produced from their own cows.  Their comprehensive quality control allowed them to produce a less acidic and creamier product.  
Colon was not afraid to recognize shortcomings and turn them into positives; one of the many traits of a strong leader. He stated, "The big multinationals have everything-except they don't have a single cow. And it just so happens that cows are one of the few things La Fageda has."  


Elkington and Hartigan indicate that "The founding entrepreneur (of a Social Business Venture) must exercise a strong leadership role, which may make succession more challenging..." 
Leadership to me means honesty, commitment to your mission, integrity and social responsibility. I would guess that the employees at La Fageda would feel the same way about Colon and be very proud to be a part of his company. If every venture (for profit or not) focused on people first and throughout, imagine the outcomes? 


All of the innovators we've read about thus far have proved to be successful leaders of change in some form. 
What other leadership qualities do you see as necessary to be a successful social innovator? 

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