Thursday, September 8, 2011

Design Thinking Parallels in Arts Organizations

The idea of 'design thinking' and it's use to improve the lives of people all around the planet is inspiring and  thought-provoking.  There are many facets of design thinking, or at least the ones spelled out in the article by Tim Brown and Jocelyn Wyatt, and while many of them are being applied to non-profits focusing on social innovation in emerging economies, they contain huge potential for arts-based non-profits.

Arts organizations, especially those providing a 'classical' art to the public, can benefit from designing not only their product but also their infrastructure on their audience's needs.  In a time of headlines filled with bankruptcy and struggling economies, arts organizations can no longer afford to present their product and then try and figure out how to attract people to it.  Their internal structure but adapt to meet the needs of the external wishes of their audience.  One instance is the hiring of consultants by a symphony to adapt marketing strategies to try and determine what the audience is looking for in their product.  This process is often used after the season is already finalized and the marketing team are trying to find ways to attractively package it to their usual audience base but also to attract new audience members.  As the article mentions, looking at this process in hindsight often shows the obvious issues with this process.

Another example of how arts organizations can benefit from design thinking and positive deviance is by studying other arts initiatives, or any initiatives, that are doing well.  One common mistake is to label many aspects of successful ventures as 'not art' or 'selling out'.  The issue with this line of thinking is that it prohibits many valuable lessons that can be learned from organizations and businesses, like the record industry, the movie industry, and the sports industry.  All of these realms have valuable research, ideas, infrastructure and products that could be used to help the arts gain new audience members.

The design thinking spaces of inspiration, ideation, and implementation lend themselves well to arts non-profits.  Inspiration is easy to find in the arts; it is what all arts are created from.  However, organizations would do well to focus time and energy on ideation and implementation.  Ideation also requires multidisciplinary people, which are fairly hard to come by in a non-profit outside of the board (and effective board use is a whole other issue).  While all groups of people can benefit from multidisciplinary members, arts organizations traditionally tend to attract only people who have experience in one field.  Places like CMU with the MAM degree are helping to change that.  The third space, implementation, is crucial.  An important aspect is the acceptance that the process will need to be tested, iterated, and defined.  Feedback is important, and the attitude of 'always improving' is critical.

While arts organizations traditionally don't fit in the social innovation definition, they also have an important role to play in communities.  In order to also be successful, sustainable, and meaningful to society, they can also benefit from these lessons and ideologies gleaned from other non- and for-profit innovators.

Design Thinking is Needed in the Education Reform Movement

I believe the design thinking approach could make a great impact on the education reform movement. Education reforms have a terrible track record of success. Some of the brightest people create the most advanced, well thought-out plans for improvement that ultimately fall short in implementation. Why? According to educator and author Charles Payne in his book So Much Reform So Little Change; The Persistence of Failure in Urban Schools, most reform programs fail to take social barriers into consideration, i.e. the people. Reformers get entirely too caught-up using the traditional problem-solving model; analyzing test scores alone to identify problems. Design teams would gain great insight from going into the schools to observe and study how they function.

Implementation of this model won't be easy though. The reading spoke about how the prototyping phase exposes unforeseen challenges, but what if those problems require greater reform? Would it be cost effective to continue with the product implementation? In the education system, gangs, teachers unions, ineffective administrations, and low expectations (amongst other things) hinder the success of education reforms. In order to effect lasting change, these issues must be addressed. A private company intending to sell a product and make a profit may abandon the product idea because it is not cost-effective to tackle these problems. The government can’t do that.

Is the education department capable of implementing this model? Considering the government's tendency to lag in adopting new approaches and the increasing pressure to see results of reforms instantly, it will be a formidable task. However, the design-thinking approach is fundamentally optimistic and, at least, deserves attention by education reformers. It is an innovative approach to change and has the potential to lead to a more comprehensive reform plan that addresses the multi-faceted problems of the public education system.

Wednesday, September 7, 2011

Aging issue

As the reading document points out, Japan is now facing with a serious aging issue. According to "Global Trends 2025: A Transformed World" (http://www.dni.gov/nic/PDF_2025/2025_Global_Trends_Final_Report.pdf) , by NATIONAL INTELLIGENCE COUNCIL, there will be one senior for every two working-age in Japan by 2025. GDP growth is projected to drop to near zero, and the cost of trying to maintain pensions and health coverage will squeeze out expenditures on other priorities, such as defense. The major approaches to solve this issue are 1.technology, 2. the role of immigration, 3. public health improvements, and 4. laws encouraging greater female participation in the economy. Since aging issue is also a big problem in EU, and it will definitely be a big problem in China and other nations, the measures to solve this issue in Japan will be good guideline to help all other countries as well. One of the good approach which came up in my mind is that increasing the usage of Robot technology for other than manufacturing industry to improve productivity.

Frugal Engineering: The Wave of the Future

Many years ago when President Kennedy went to deliver his famous Berlin speech he said:
Two thousand years ago -- Two thousand years ago, the proudest boast was "civis Romanus sum."¹ Today, in the world of freedom, the proudest boast is "Ich bin ein Berliner." Fifty years down the line if President Kennedy were to be contributing to the carbon dioxide built up in the world I think he would have said that: Today, in the world, the proudest boast is Frugal engineering'.
The world is changing hands and history is re-balancing. For those who lived in darkness have seen the light. People whom conventional market isolated them are now finding themselves doing well in the emerging markets in Asia, Africa and Latin America. These areas now constitutes the chunk of the people in the world whose purchasing power is increasing and are enjoying or tasting gadgets for the first time.
If any firm wants to see going concern for its businesses then it find an economical ways and means to engineer goods which the teeming people in the emerging market can afford without they having to forgo basic or secondary necessity. That is when frugal engineering is come into play.
British Telecom company called Millicom Ghana was the first mobile phone operator in Ghana. Millicom targeted the elite in the society to the extent the use of mobile phone became the exclusive preserve of the rich. After some years of monopoly then came a new entrant called: Scancom. Scancom decided to target the middle and low class. This became part of their frugal engineering to the extent the latter came to control about 60% of the market just after five years of operation.
In conlcusion, those who will hold the large share of the market will be those who engineer frugally.

Design Thinking has a Place in the Education System


When I was in high school I never had the same class at the same time on two days. I would have Algebra during first period on Mondays, fourth period on Tuesdays, sixth period on Wednesdays, second period on Thursday and fifth period on Friday. It was the same for all of courses. I had a completely different experience than my friends in other schools. It was one form of innovation in the education system. Design Thinking gives schools the opportunity to explore solutions above and beyond the current expected system.

It isn’t only about scheduling and tailoring education to a person’s natural abilities. Professor Laura Lee discusses the introduction of design thinking into the classroom by integrating several courses and outside work to engage students in a new and exciting way.

Universities have the opportunity to integrate Professor Lee’s ideas with surrounding organizations and businesses whether that is through volunteering or consulting. This benefits the students as well as the organization. If the education system can begin to integrate design thinking into classrooms at a younger age, there is no predicting what the generations may discover.

Food for thought

One idea from this week’s readings that deserves reflection is “the productivity imperative”, one of the five crucibles that were discussed in the article “What happens next?”. The authors made a number of suggestions for boosting our productivity, but there is one suggestion that I feel should be added to the conversation – improving the overall health of our population by ensuring that everyone has access to affordable, healthy food and understands how their diet impacts their health.

Hunger and diet-related disease decrease people’s physical and cognitive abilities. Hunger remains a key problem in the US, and one that disproportionately affects poor and minority populations. Just today, the USDA released the results of a 2010 study on household food security. The study found that in 2010, 14.5% of US households were food insecure (http://www.ers.usda.gov/Features/HouseholdFoodSecurity2010). In children, poor nutrition can have long-term impacts on their growth and brain development, affecting their productivity as adults. Poor nutrition also negatively affects the productivity of adults in workforces all around the world, as talked about in a 2005 ILO report (http://www.ilo.org/global/about-the-ilo/press-and-media-centre/news/WCMS_005175/lang--en/index.htm). Diet-related disease has an enormous impact on the productivity of our workforce (no pun intended). According to the CDC, about 34% of adults and 17% of children in the US are obese. Diet-related diseases are among the leading causes of death in our country. There are countless ways that diet and nutrition affect the health of our citizens and their ability to be productive members of society. This issue should be an important part of the “productivity imperative” conversation.

What does value mean for you?

Human- centered design thinking makes sense, as the human (your target population) should be at the center of the social innovation that is being designed for them. "The Importance of Frugal Engineering" and IDEO's "Human Centered Design Toolkit" both point out the need for a deep understanding of how people live and will ultimately use a product for the design- process to be successful. Obviously people living in different parts of the world from different economic and social backgrounds have different routines, preferences, and needs. But as a consumer, don't we all benefit from "frugal engineering"? I certainly want products that were designed to maximize customer value while they minimize nonessential costs. This isn't just the desire of the "bottom of the pyramid", but of all consumers. Why isn't frugal engineering more popular among the middle and top of the pyramid as well? Perhaps the tenets and products of frugal engineering will capture the hearts of consumers in developed economies as well. Or is value perceived in a fundamentally different way between the "developing" and the "developed" consumer? Is a radio (or an IPOD dock rather) worth more to the relatively- affluent consumer than extra storage space, thereby affecting each party's value calculations? Finally, is a company like Tata really engaged in social innovation when it designs the Nano? I think the product is certainly socially innovative and fits our class definition of social innovation, but Tata's main motivation is to create a product that's profitable. Is frugal engineering about social innovation, or is it just a necessary step in doing business in the developing world?

Frugal Engineering: Bottom-Up vs. Top-Down

In my effort to synthesize concepts from all the different readings for this week, one concept that I find especially striking is the idea of "frugal engineering" from the Seghal et. al article. This idea, not limited to literal cost management, but which extends to making things specifically for the purpose of meeting the needs of emerging, presents the challenge of balancing"top-down commitment" with "bottom-up innovation." By design, frugal engineering attempts to tap into "bottom of the pyramid" with needs unique to the developing world, but where does the main responsibility lie? The article does a great job highlighting how often the first solution (especially by private-sector entrepreneurs) in product design for emerging markets is to merely re-introduce mature-market products with limited functionality. It is fairly nonsensical, but it prevails because many from the "top" view this as the most cost-effective solution. However, as Seghal (el al.) points out, those in emerging markets do not always part with their money that easily, and many if not most know when they are not being given the best product at the best price. So does this mean that most top-down commitment to developing emerging markets is off base? Perhaps, since in many cases the heads of organizations or corporations would rather dictate what the market wants rather than let the market do it itself. Does that put more pressure on bottom-up innovation from those within the market to utilize the basic frugal engineering concept of avoid needless costs? I think so, as often an insider's perspective is the solution to greater market penetration. But ideally, there is a balance between a quasi-hegemonic force from above and an almost revolutionary response from below. (Or in less dramatic terms, "outsider" producers work with both "internal producers" and the greater populace of the emerging markets to make the best possible products.) I think that bottom-up innovation is universal: it's definitely not unique to the emerging world. What I think is crucial in emerging BoP markets that the authors of this frugal engineering article drive home is the idea that top-down commitment, with the "right" direction, is absolutely necessary in order to continue to develop the emerging markets. As the Tata Motors example shows, there has to be a willingness to match one's own frugal engineering endeavors specifically to the cost constraints of one's consumers beyond simply removing features from existing mature-market products. In others news, it is incredibly ironic to be finishing this post just minutes after the press conference concerning the Dietrich fund. I suppose I am now an alumnus of the Marianna Brown Dietrich College of Humanities and Social Sciences.

What Role Will Government Intervention Play in the Development of Social Enterprise?

California AB 361 creates the incorporation of "benefit organizations" as an entity within the state that moves away from sole stakeholder responsibility and places more emphasis on stakeholder priorities than exists currently. Several states are considering similar legislation with several successes in Maryland, Hawaii, New Jersey, Vermont, and Virginia.
Can increasing government regulation within the field of social enterprise enable social entrepreneurs in their mission to fulfill the unmet needs of society? This is another example of the unique role social innovators must fill between the public and private markets. This example shows highlights the fact that unlike their for-profit counterparts policy regulations have the potential to help these organizations meet their missions. At any point does government interference inhibit the product/idea development that allows organizations like those mentioned in the article to continue to innovate? I am not sure but I think this an interesting example of the sphere social innovation fulfills our society.

Wednesday, June 22, 2011

THE FUTURE OF SOCIAL ENTREPRENEURSHIP IN KENYA

"What isn't working today? Why is mainstream development not working?"
For the last 50 years we have had community-based projects being driven by
governments and it hasn't worked particularly well in Kenya. We have had a
lot of problems with corruption, undemocratic governments, political
interference, mismanagement, overbearing bureaucracy. We have a
centralized and top-down approach to pushing development through which is
failing miserably.
There are frequent changes in power which, May good from a democratic
perspective, but from a policy perspective does not always work very well.
We have a very poorly motivated civil service and for all these reasons
social innovation and entrepreneurship has not thrived very well in Kenya
and its future is not that bright at all.

Kenya established the "Kenya Vision 2030" in 2008 which aims to transform
the nation into a newly industrializing middle-income country providing a
high quality life to all its citizens by the year 2030." This is a very
ambitious goal considering the political and economic burdens the country
is facing at the moment.
"The government has lost millions in yet another corruption scandal" has
been a familiar headline in the newspapers over the years. According to
Transparency International, Kenya is one of the most corrupt nations in
the world. Clearly our government has let us down in so many ways.
So what is the alternative vision? I think we have to look at social
enterprise models as a key driver for sustainable development in terms of
poverty reduction in Kenya.
Business entrepreneurs need to realize that "Development in Africa is not
dependent on the quality and drive of its governments. Neither on aid
projects, nor on the work of volunteers from the west. The future and the
well-being of this continent depends largely on the power of its own,
local entrepreneurs", Professor Walter Baets (Director of UCT Graduate
School of business in Cape Town South Africa). Governments try hard, but
sometimes lack the expertise to plan the building of local wealth, to
alleviate unemployment and to face social challenges. Their best bet is to
support the development of small business enterprises SME's that are the
real backbone of economy.

PATNERING WITH NGO's?
Social entrepreneurs bring ideas to the market that may otherwise not have
occurred to mainstream businesses that have very narrow, profit driven
priorities. And in the case of Kenya, as with most of Sub-Saharan Africa
(SSA), social investment can clearly ensure that economic development will
continue to grow over the years.
NGO's play a crucial role in fostering social innovation by working in
partnership with small businesses to help drive and strengthen
development, by sharing their knowledge, skills, processes and resources
that foster social change.
It is crucial that entrepreneurs partner with NGO's to create new market
based systems and financial vehicles that pursue social, environmental
and economic returns.
And of course, entrepreneurs as well as NGO's need the support of our
government to reform and simplify new and existing regulatory laws and
make the business climate more hospitable to formal enterprise. In
addition to this, the government needs to design opportunities to extract
bribes out of the process as well as organize and reform its taxation
system.
The future of social entrepreneurship in Kenya highly depends on its
partnership with NGO's and in some ways support from its government to
accelerate and to create a better environment for doing business.

Posted by Caroline Kiriga.

Assignment 5



--
Bahar Forghani

The value of the Not for Profit Sector in Mexico and its potential for Social Innovation

Long time ago I subscribed to the Centro Mexicano para Filantropia's
newsletter, which is a Mexican NGO that supports other NGO's to upscale
operations, staff and human capital. Two weeks ago I received a very
interesting one that surprised me very much. It was about the results of
the account of Non for Profit Organizations the Mexican government
included for the first time in history into the National Accounting
System.


The results are calculated based upon the 2008 economic census carried
out by the Mexican National Institute for Statistics and Geography. They
provide a very good panorama of the potential for social innovation a
country like Mexico has. Let's get to the facts.


The total number of Not for Profit Organizations in Mexico for 2008 was
40 089 with a gross production value equivalent to 23.9 billion dollars
a year, which represented the 1.96% of the country's GDP and its share
was bigger than what the whole agriculture sector produced during the
same period. From this amount, volunteer labor dollar value was about 2
billion dollars and was offered by close to 560 thousand people.


Among NFPO's 45.1% were dedicated to educational services while only
11.3% were in the health and social assistance sector.


To be honest I did not expect at all this sector could be that important
in a country like Mexico, and it made me wonder whether my impression
was biased or if there was something more about it.


After reflecting a little bit two questions remained to be answered: Is
it that what all this organizations were doing gets done in traditional
ways which oversee opportunities to use resources in more impact
effective ways or it is just that their work and efforts were not being
fairly recognized?

My intuition tells me that no matter what the answers to these questions
are, huge opportunities for social innovators and entrepreneurs are
still waiting to be found.

--
Ruben Fernandez <rfernand@andrew.cmu.edu>

Social enterprise and social innovation: Strategies for the next ten years

I read this paper and wanted to share it with the class. This paper gives a good review about social innovation, where it stands, and how will it shape up in coming years. This paper also focuses on the role of the government in social enterprise sector and how public policy should be formulated for this sector.

It talks about the basis of social enterprises. Their existence signifies the fact that market won't come up with the required innovative solutions. They are established to meet the needs in those areas that government services do not have the capacity to reach. States now prefer to fund those enterprises that can provide public goods and services in a more efficient way. Its also the realization that government finds it difficult to cater to the diverse needs of the population. Social enterprises are aware of these distinct needs and can give a more focused and a personalized solution to the people. Public services provided by the government are independent departments with no integration between these services. Social enterprises provide more integrated services. Services provided by the government, sometimes do not involve the people compared to social enterprises who measure their impact from the level of community involvement in their project.

In mid 1990s, the policy goals were more focused on how to increase the amount of social enterprises and social entrepreneurs. The paper states that as this field becomes more populated and complex, this policy goal is no longer sufficient. In coming years the focus needs to shift on what social enterprises can achieve together, measuring their impact more accurately.
Since policy goals initially placed importance on increasing the supply of social entrepreneurs, they were heavily influenced by the concept of venture capitalism to fund enterprises. In coming years, public policy would seek outcomes such as social impact and sustainability. The important question is that if public policy has the right tools to measure the impact of social enterprises. Governments need to formulate a public policy platform that provides the much needed connection between government enterprises and social enterprises. The focus should be more on increasing interaction between social enterprises and between social enterprises and public institutions that have the assets and networks to apply social innovation at scale.

The paper states the following ingredients for a social enterprise policy
  1. Expanding the Giving Economy. This means facilitating and spreading the culture of giving and volunteerism among the populace. People should not only donate their money. They should also donate their time to the causes of social enterprises.
  2. Strengthen Social Enterprise: By building large scale solutions that can inspire others to do the same.
  3. Social Enterprise State: maintain social sector as the major supplier of services and use social enterprises strategically to bring innovation in public services.
  4. Socially Responsible Business : The biggest impact of social innovation would be the change in how businesses and markets operate in the future.It will show how social responsibility can be a new source of competitive advantage and innovation for companies.

  • Government funding in social enterprises that are considered too risky may set new standards in business practices.
  • Government can also promote creation of new metrics for social value creation or damage which existing shareholders or investors can use to pressure companies to improve their social performance.
  • Government can expand and improve the scope of social investment funds such as social impact bonds in UK.
Its a very good paper. I hope everyone spares their time to read it.
Here is the link

Public Policy to Encourage Social Innovation

In this blog, I'm going to write based on what I have learned from the class about how public policy can be created to foster social innovations. There are several factors that I think they are important for social innovations. First, the government need to clearly define the term "social innovation" for funding and tax purposes. According to our class definition, social ventures need to be relieved of tax burdens so that they can focus more on delivering social solutions. Therefore, the first goal of public policy should be directed at this tax issue in a way that does not create loopholes for exploitations.

Second, social innovations rely upon creative ideas and a trial-error basis. This is financially adventurous and risky in the business sense. Not many private investors would be comfortable with this level of risk tolerance that is embodied in the nature of social ventures. Therefore, the government can play a role in creating public agencies or foundations that focus on funding these kinds of adventurous innovations. Of course, clear criteria and standards have to be setup to avoid unnecessary waste of public funds. However, these funding filters cannot be too stringent and have to be relaxed enough to accomodate the trail-and-error nature of social innvoations.

Third, social innovators can benefit from the "public goods" of open-source type technology/idea sharing. Public policy can help in creating a framework for this kind of open-source innovations. Past failures can be learnt from. Parts that didn't work can be thrown out, and parts that could work can be recycled. Different teams can work together across time and space on resolving a specific issues. Best practices can be shared. This open-source problem might look simple, but it can be quite complicated, especially when it comes to patenting issue. Public policy should be engineered to address that early on.

Last but not least, the government can help in financing more research into the field of social innvoations. This is not funding ventures, but funding social researchers on the subject matter as a whole science. Questions can be what public policy/government interventions can foster social innovations from the grassroots level; what skills are needed as a pre-requisite for innovations; what types of incentive structures can promote the field and so on.

The field of social innovations deserve more attention from our governments (I'm speaking from the Cambodia context). Social innovators need more advocacy groups to lobby this to the decision-makers at the national level. To be successful, every stakeholder must be engaged, and the efforts must be coordinated.

Reaching the Real Bottom of the Pyramid.

An article from the Stanford social Innovation Review discusses the concerns of market based solutions that focus on targeting consumers at the bottom part of the social pyramid. Such ideas had been advocated in Prahalad’s book and writings on serving the poor profitably. Concern related to the potential success of such strategies is based on new thinking in the field of the endogenous growth models of new economic growth theories.

A research working paper article written by Jean-Louis Warnholz, investigates the validity behind the initial assumptions made about the amount of purchasing power commanded by the so-called dormant market of societies at the bottom of the pyramid. The finding of the article was that the assumptions of large amounts of monies commanded by BoP communities, was in fact based on flawed surveys on the distribution of income within less developed countries. Thus, attempts to penetrate these markets have not been successful.

An emerging alternative for reaching those at the BoP more meaningfully was covered in article published in the Economist on August 12 2010. The article discusses the hope by British and American Governments that partnerships with social entrepreneurs can help societies at the bottom of the bottom of the pyramid out of underdevelopment traps. The partnerships envisage crucial collaboration between civic society, the public sector and the private sector. A recent development has been based on providing social venture capital for improving education opportunities in less developed countries.

This raises the question, how can venture capital begin to develop a sustainable demand through creating employment for those at the bottom of the Pyramid?

Tuesday, June 21, 2011

Social Innovation development

This week's readings lead me to further reflections on developing and sustaining social innovations. It seems to me that the field is facing a number of challenges to growth: Firstly - Innovation development How to ensure a steady stream of social innovations? Currently it seems to be the lot of governments to do the heavy lifting of backing nascent developments. Secondly - how to grow innovations Or, perhaps, whether they should grow at all: the strength of some innovations is that they are local solutions to local problems. How does anyone know how to back winners? Thirdly - overcoming bureaucratic inertia The reality is that government activity is essential to grow innovations currently. Yet governments can be highly risk averse organisations If these are the challenges, the big picture context is one of governments looking to limit their exposure to social challenges, of the limit of resources. For example, it is a commonplace of policy discussions that health costs of most Australian states are expected to exceed their ability to pay the bills over the next few decades. These challenges have called forth some innovative administrative responses. For example, Mayor Bloomberg decided to bypass city administration entirely when he created the Centre for Economic Opportunity (which seemed to serve as the model for the Administration's Social Innovation Fund). It seems to me that the policy objective is to create an environment that can attract private capital to solve social problems, such as the highly innovative social impact bonds currently being trialled in the UK and Australia. However, the biggest challenge of all is surely going to be: how does one measure social change accurately enough to permit private capital enough information to measure it's return? Social Impact Bonds guarantee a return of 7 - 13% (approx). Whilst it is easy to identify a 0% return - i.e. no social change at all (for example, the UK example is a reduced recidivism trial. Where there is no reduction, the government will return 0% on the SIB), how would a capitalist know where their return sits. At 7%, or at 13%. Such information is highly likely to influence investment decisions. I presume the answer to such problems lies in skilled data analysis techniques such as linear programming and in empirical methods

Trends in developing social innovation in Australia

It transipres that there is quite a lot of development work going on in Australia, just a google search away. On the one hand, there are a number of NGO think tanks (or rather do tanks, with a focus on action): TACSI here in Adelaide, the Australian Social Innovator Exchange in Melbourne and the Centre for Social Impact at the UniversityofNSW. Hurrah! This means that there is quite a lot of debate and experimenation going on addressing issues of social innovation establishment and maintenance. As well as the NGO sector, federal and state goverments have various investments in this space, in the guise of grants and departments. The Australian Senate has referred the question of financing the not-for-profit (NFP) sector to a Senate Committee, which itself refers to a Productivity Commission report, focussing heavily on social impact bonds. WA and NSW in particular seem to be following the SA lead. The NSW government has made AU$25m available for a pilot scheme of social impact bonds. All of this, it seems to me, makes Australia an exciting laboratory for social innovation at the moment: I think we can expect some big learnings to emerge from all this activity. The starting point seems to involve picking up on UK ideas of social impact bonds (SIBs). The UNSW Centre for Social Impact believes that economic conditions are right in NSW to pilot SIBs:
  • Incorporated not-for-profits have the legal structure to issue bonds to local markets, and the ability to 'wear' the risk of a venture.
  • NFPs get to set their own outcome criteria, free of government contractual obligations.
  • Government gets to divorce itself from service delivery.
  • Government get to reward success through payment of a return, called a social return on investment.
There are myriad challenges to the success of these watershed initiatives. Perhaps the most basic is how to measure social return, how to measure success? In this context, the Young Foundation has some brilliant contributions to make, particularly with its Wellbeing and Resilience Measurement tool, which seeks to measure a community's innate strengths. An additional issue is how to find the right balance regarding risk? The Young Foundation points to a historic mismatch, where the agencies tasked with delivering a particular service, don't get to own the social outcome they deliver. It seems to me SIBs redress that particular imbalance. However, issues of financial risk remain, and the task facing the NSW trial at the moment is to find the right balance of risk between government, not-for-profit bond issuers and social innovators. It will be fascinating watching these experiments unfold over time.

New Times Demand New Ways of Learning

New Times Demand New Ways of Learning





Recent research builds a powerful case against what used to be accepted "truths" about learning and technology. First, there is strong evidence that traditional models of learning, traditional definitions of technology effectiveness, and traditional models of the cost effectiveness of technology don't work. In place of these old assumptions, researchers are positing new ways of looking at learning that promote:

  • engaged, meaningful learning and collaboration involving challenging and real-life tasks; and
  • technology as a tool for learning, communication, and collaboration.
This section details the indicators that educators and policymakers can use to measure the effectiveness of technology in learning.


The traditional learning model is not relevant to real student needs



Today's workplaces and communities - and tomorrow's - have tougher requirements than ever before. They need citizens who can think critically and strategically to solve problems. These individuals must learn in a rapidly changing environment, and build knowledge taken from numerous sources and different perspectives. They must understand systems in diverse contexts, and collaborate locally and around the globe.

These attributes contrast sharply with the discrete, low-level skills, content, and assessment methods that traditional ways of learning favor. The new workplace requirements for learning are incompatible with instruction that assumes the teacher is the information giver and the student a passive recipient. The new requirements are at odds with testing programs that assess skills that are useful only in school.


The traditional mechanisms for evaluating the effectiveness of technology programs don't work


Traditionally, we have determined the effectiveness of a technology program vis-a-vis a "regular" program by comparing student outcomes on standardized tests. Numerous researchers, however, question the utility of this method. When the North Central Regional Education Laboratory (NCREL) surveyed experts about traditional models of technology effectiveness, respondents said:

  • "Effectiveness is not a function of the technology, but rather of the learning environment and the capability to do things one could not do otherwise."
  • "Technology in support of outmoded educational systems is counterproductive."
  • "[The reliance on] standardized tests is ludicrous... Technology works in a school not because test scores increase, but because technology empowers new solutions."
Similarly, the typical way to determine a technology's cost effectiveness is to compare the costs of the technology-enhanced program against the costs of the traditional program. Some researchers decry this approach, pointing out that such cost analyses assume that we should continue teaching the same things, rather than change with changing times. Additionally, cost-effectiveness data could constrain development of innovative applications of technology.




Why Keep Asking the Same Questions When They Are Not the Right Questions?



There are no definitive answers to questions about the effectiveness of technology in boosting student learning, student readiness for workforce skills, teacher productivity, and cost effectiveness. True, some examples of technology have shown strong and consistent positive results. But even powerful programs might show no effects due to myriad methodological flaws. It would be most unfortunate to reject these because standardized tests showed no significant differences. Instead, measures should evaluate individual technologies against specific learning, collaboration, and communication goals.




Where do we go from here?



What we have learned from these reactions to traditional ways of learning and evaluating technology is that we must change the questions and the processes. Specifically, we must establish a clear vision of learning and goals for a school, district, or other unit. Without this vision, there can be no criteria for evaluating technology effectiveness or costs.


What is effective learning and how can it be measured?



Our framework builds upon a framework developed by Barbara Means of SRI International. Means identified seven variables that, when present in the classroom, indicate that effective teaching and learning are occurring.

These classroom variables are:

  • children are engaged in authentic and multidisciplinary tasks
  • assessments are based on students' performance of real tasks
  • students participate in interactive modes of instruction
  • students work collaboratively
  • students are grouped heterogeneously
  • the teacher is a facilitator in learning
  • students learn through exploration
We took these variables and reorganized them into a set of eight categories of learning and instruction: vision of learning, tasks, assessment, instruction, learning context, grouping, teacher roles, and student roles. We then expanded the definitions of Means' variables with information from recent research on learning and instruction and added many new variables. In all, there are 26 variables or 26 indicators of engaged learning. ... (Article cited from http://www.netc.org/cdrom/plug_in/html/newtimes.htm).

---------------------------------------------

What's interesting about this article is the new shift from standardized assessments to a more collaborative focus of learning and the role of technology in helping students learn better. The question for further consideration is: Learning-aid technology is quite expensive, and cutting-edge techno-rich schools (like the CMU) are usually very unaffordable to the poor. Can we model cheaper tech with similiar functions and make them available to the poor?

Monday, June 20, 2011

Public Policy in Action: Sindh Devolved Social Services Program

Public Policy is becoming increasingly important to support Social Entrepreneurial Initiatives and providing critical funding for their growth. Many social organizations, who are achieving concrete results and impact, simply do not get the right environment and supplementary support from the public sector in order to grow and tackle social problems at a large scale. Recognizing this need the Government of Pakistan has established the Sindh Devolved Social Service Program (SDSSP) as an effort to create a favourable environment for the social sector growth.

Sindh is one of the poorest and least developed provinces of Pakistan. The low social indicators of the province are having a serious negative impact on the regional economy and political stability. In response, the provincial Government of Sindh has put a policy framework in the shape of the Sindh Devolved Social Services Program. The program, which is administered by the Provincial Department of Finance, supports greater involvement of community-based organizations (CBOs), nongovernment organizations (NGOs), and the private sector. The objectives of the program are:

1. Further administrative devolution of social services

2. Improve social sector financing and flow of funds

3. Promote participation, linkages, and public accountability

4. Rationalize services and set minimum standards

5. Encourage public-private partnership

For further information about the scope of work, reform process and ongoing activities please visit the following website:

http://www.sdssp.gov.pk/index.htm

The Sindh Devolved Social Services Program made me think about the following questions:

1. Provided the widespread corruption and lack of transparency in the government departments in Pakistan, will this program deliver?

2. What are the accountability and evaluation measures, if any?

3. Will other Provincial Governments follow suit? Especially in Baluchistan and Khyber Pakhtunkhwa, where social conditions are in dire straits.

4. Should the Federal Government recognize the need and establish a central policy framework to achieve the same objectives, as the SDSSP, at the countrywide level?

Wednesday, June 15, 2011

Micro Finance



Micro Finance





I found this video link interesting which
is about Micro Finance.



According to capitalizing  social ventures and providing fund to invest
in social activities one approach is micro finance which will provide a way for
cooperation between business, public and non profit organization. Its goal is helping
to get sustainable social change.



Social finance is a market based
approach which reduces the cost of capital for NGO's and increasing social factors.
It also provides access to capital, loans and credit which helps to gain basic
needs. This way benefits both parts by providing competitive rate of interest
to investors and helping social communities to access cheaper capital to help society.



 


Link: http://socialfinance.ca/what-is-social-finance



--
Bahar Forghani

Subjective Well Being and the Measurement of Social Value

On the article "Measuring Social Value" I found the next paragraph
"...most metrics assume that value is objective, and therefore
discoverable through analysis. Yet as most modern economists now agree,
value is not an objective fact."

It made think that the author was being quite harsh and unfair to social
entrepreneurs. Since the subjectivity approach is far from being widely
accepted among economists and in fact some of them are still being
"marginalized" by the mainstream economics school of thought.

In fact this approach is so new that economists haven't developed highly
sophisticated and articulated theoretical frameworks to address
subjectivity yet.

Nonetheless, some efforts have been done in recent years with very
interesting results that could be useful to measure the social value
derived from social investments.

Subjective Well Being is the name of an economic school of thought which
actually instead of making all kinds of theoretical and "scientific"
assumptions tries to deal directly with people's subjective perceptions
of value or as one review to the field states it:

"Subjective Well Being is able to capture's people actual experience in
a direct manner, while economic, social and environmental indicators do
so only indirectly"

However, what does SWB exactly means? well, the same review proposes the
next definition:

"SWB is a broad category of phenomena that includes people's emotional
responses, domain satisfactions, and global judgments of life
satisfaction"

How doest it relates to supply, demand, indicators and willingness to
pay?

Well the position of this school of thought is that consumers would know
better how their willingness to pay looks like than a bunch of math
savvy geeks with a bunch of equations, and the only way they can assess
it is by evaluating their own overall position with respect to their
aspirations and effective possibilities.

Of course this statements should be subjected to further analysis, but
maybe SWB economists and social entrepreneurs and activists could gain a
lot of insight by partnering in trying to find better ways to measure
social value.

If you want to learn more about SWB click an the link below:

http://internal.psychology.illinois.edu/~ediener/


--
Ruben Fernandez <rfernand@andrew.cmu.edu>

Tracking Social Return on Investment

The ability of entrepreneurs operating at the Bottom of the Pyramid to be leap from their current operating environment, which is weighed-down by the impact of the equilibrium of underdevelopment, requires the civic organizations that advocate the economic participation of these communities to be able to quantify and track the social return of investment achievable by potential funders. This necessitates the development of a social value metrics that is transparent and thus able to justify the sustainability of capital outlays to stakeholders of development funding. Thus, the social value metrics should guide the assessment of service innovations and investment decisions made by social venture capital market institutions (Mulgan: 2010).

Social impact tools are misaligned with standard market models for assessing value, as social benefits are public goods in their nature. Therefore, the non-rivalry component of public goods makes standard financial and economic accountability methods inappropriate for social value measurement. However, (Mulgan: 2010) suggests that “social value should be thought of as the product of the dynamic interaction between demand and supply in the evolution of markets for social value”. In light of what has been said about the effect of the concept of non-rivalry, Mulgan’s suggestion may be a challenging exploit without complete information on the impact of social actions.

In all fairness though, Mulgan does suggests that there should be cross sectoral collaboration in assessing and measuring the outcomes of resource allocations made in the interest of social benefit. Thus civic organizations should collaborate with government in terms of accessing important data depositories.

The Heritage Foundation (http://www.heritage.org) has developed an economic freedom index.

The index is constructed based on the conceptualization of what economic freedom is. The foundation defines economic freedom as “The fundamental right of every human to control his or her own labor and property... in an economically free society.” One of the indicators to their composite measures business freedom; “the ability to start, operate, and close a business that represents the overall burden of regulation as well as the efficiency of government in the regulatory process”. I should think, before discussing the how conflating the impact of the roles of accountability are for the performance reporting activity of civic organization, the priority should be measuring the access to economic participation. This should better inform whether, everyone is given the opportunity to be social entrepreneurs (Muhammad Yunus).

Dreams are Free: Students let’s make it happen!

Students are arguably in the best position to start a social venture. They
have incredible support from professors, access to unbelievable resources,
and can take on risk that others can't. Think about it... I for example in
the social innovations and enterprise class should take advantage of the
course. (I believe that is why I took this class).Learning the
fundamentals of starting a social innovation venture, how to position our
innovations and pitch our ideas to investors present an opportunity to
change our community and the world at large. And we need to make it
happen. How do we do that??Think big, dream big.
Coming from a third world country, I am deeply saddened by the situations
the masses are facing in their daily lives and I am sure majority of the
people would like to see change. I realize I cannot change the whole world
in a day but our ideas can steer the wheels in motion for a better
tomorrow. Many people are put off by social innovative ideas because they
are afraid of disappointment, but we are students need to trust
ourselves....we know more than we think we do. Besides, It's kind of fun
to do the impossible. Students need to change their mentality and allow
their minds to swim in pleasurable thoughts of reaching their dreams by
visualizing of them coming true. But it does not stop there either. These
dreams and ideas must spur us to take action. Ideas must work through the
brains and arms of good and brave men (and women) or they are no better
that just dreams.
SIFE students are changing the world by making a difference in their local
communities. They invent new futures for themselves and for others through
entrepreneurial educational outreach projects. SIFE challenges students to
take what they learn and apply their knowledge in real situations for the
benefit of all concerned. Better still, when it comes to planning for a
career after college these students are better prepared and qualified and
stand high chance of accessing the country's most successful executives
and entrepreneurs. And not to forget the satisfaction that comes with it;
the feel that you have made a positive difference in your community by
helping others to be or become more empowered citizens is just priceless.
Will dreaming big always make your wishes come true? No, maybe not
exactly, but I can pretty much guarantee that you'll get a lot closer
than if you squash thoughts of your dreams every time they surface. So, if
you are currently a student, I encourage you to make the most of your time
at your University trying to start a social venture. If your school
doesn't have any courses on social entrepreneurship, talk to your
professors and ask them why not.
"Only as high as I reach can I grow, only as far as I seek can I go, only
as deep as I look can I see, and only as much as I dream can I be."
Blog by Caroline Kiriga.

Crowd Funding- Meeting Capitalization Needs of the "Last Mile"

Social ventures face problems when it comes to raising enough capital to finance their viability or in most cases their sustainability over a long period of time. International donors and the government increasingly find it difficult to provide assistance to the far off rural communities, hence the "Last Mile" Problem. It has been a practice since the birth of civilization that people have mobilized as a community to fix problems in their surroundings by pooling their meagre resources.

Crowd Funding as a concept means collective cooperation by the community to pool resources to support a cause or an organization. In recent times it has been mostly through the Internet or social networks. One prime example being the political campaign of President Obama in 2008. He got $137 million in small donations for his election campaign.The same model is also being used to meet the capital needs of social enterprises. The main driver behind crowd funding is the common interest shared between people that motivates them to pay a monetary sum for its development.

Crowd funding has been the main idea behind formation of cooperatives in rural areas to solve the problems of the community. Around 1990s the state of Kerala in rural India was facing a acute water shortage. The villagers decided to take the matters in their own hands and started collecting funds for their own mini piped water dreams. There were only three water supply schemes run by the government . The villagers started their own private water supply scheme using private resources and funds. A cooperative was formed and members were charged a nominal membership fee. The more poor segments paid their membership fee in installments. The scheme was a huge success and was able to meet the water requirements of that village. This is a great example of what community intervention and cooperation can do where governments fail.

The main idea is to empower people to create that "first mile" capability in their communities through a crowd funding approach, instead of waiting for the government to bridge that "Last Mile" gap.

Some question that comes to mind are

  1. How can crowd funding approach be used in rural communities to create microfinance and micro insurance cooperatives?
  2. What role can technology play in promoting these crowd funding approaches in the rural areas, similar to what social networks support in more urban areas. Connectivity limitations in rural areas is one of the main challenges.
Links

Tuesday, June 14, 2011

financing social innovations in developed country contexts

I experience a little unease when I consider this issue of financing social innovations. Innovations, of course, are geared to a double bottom line of social and economic return (and in some instances, a triple bottom line including environmental too). Obviously they lend themselves to market based solutions, hence the role of private capital at start up. It is possible to see massive market biases in concepts such as impact investment. In fact, many impact investors presume a particular kind of market: underdeveloped ones where it is possible to extract profit from a mass market shifting huge volumes of product at low cost, often in a developing country context. Whilst I respect any effort to improve social conditions for impoverished populations, I do not wish for social innovation to be defined solely in terms of bottom of pyramid economics. The pyramid that often dominates my thinking is Maslow's: http://www.businessballs.com/images/maslow_hierarchy_sm.gif. The outcomes that I want social innovation to strive for concern top of the pyramid problems like self actualisation and esteem. In my opinion, such concerns are the proper preserve of social innovators in developed country contexts, for decades of welfare state intervention has not improved these indicators (see other posts in this blog about disability and happiness), and they obviously don't lend themselves to base of the pyramid economics. Many argue that this problem represents government and market failure, hence my earlier discomfort. I suspect that this failure is extremely expensive. Yet how do social innovators in developed country contexts attract funding, given the inevitably smaller returns relative to the opportunities presented to investors in developing country contexts? The notion of social impact bonds is quite brilliant in this context (http://www.socialfinance.org.uk/). Whilst private investors bear the investment risk, if the innovation works (e.g. reducing recidivism rates in the UK), government guarantees a return on investment. The pay off for them is that previously intractable social problems are mitigated. I think it is possible that this model might offer my idea a funding source. Like recidivism, I am focussed on an intractable social problem. Across the anglophone world governments are worried about growing populations of people (especially working age men) moving onto disability support pensions, and then never moving off. In a context of increasing health and disability costs connected to an ageing society, this is a huge problem. In addition, I am concerned with some of the most extreme markers of disadvantage in Australia today, i.e. the presence of severe and profound disability. The Australian Bureau of Statistics measures the presence of severe and profound disability in the index of relative socio economic disadvantage, a census based product it publishes every 5 years (with the next edition due in 2013, I think). One of the major measures of severe and profound disability is difficulty accessing community, something my innovation hopes to improve by making it more rewarding.
  • People who are more connected to community are having their top of the pyramid needs met.
  • People whose sense of agency and self worth is satisfied make fewer demands on the government $.
  • Governments can experience improvement in previously intractable social problems (like recidivism), and may experience savings where previously there has only been cost increases.
The Social Finance/Social Investment Bank phenomenon in the UK is quite brilliant in this area of innovation. Lacking an equivalent framework in Aus and the US, where do social innovators go to find institutional and private backers?

Poverty is not a disability

Shukla Bose is giving a TED talk on teaching slum children one-child at a time. It's amazing how much children can learn. A lot of people would just laugh and say these children can't learn. In my personal experience, I have been told to my face by a Barang (a foreign white guy) that Cambodian children, most of them poor, can't learn because they didn't have proper pre-natal care. There might be some truth in it, but I take it as a projection of his lack of competence to teach well. Through out my teaching experience, I have learned that they CAN learn. You just need to know how they learn things and adopt your teaching style accordingly.

This video is worth watching: http://www.ted.com/talks/shukla_bose_teaching_one_child_at_a_time.html

I agree with her. Quality comes first, and scale (quantity) can come later. However, I don't like her not-for-profit way of deliverying the service. I think it's too dependent on donors' funding and not self-sustaining. The question is: how can we make this a social venture model instead?

Monday, June 13, 2011

Innovation funding Innovation: The Social-Impact Bonds

There is no doubt about the funding gap that exists for social entrepreneurs. These entrepreneurs aim to develop a business that in addition of supporting a social mission also generates a financial return. Social enterprises at the early stages of their inception critically need financial backing to survive and grow. We can only see the full impact of these innovative businesses once they have passed their initial development phase and are in good financial health.

To face this challenge we need to think of creative financial tools to fill this funding gap. One such interesting innovation was the British social-impact bonds. This is a derivative tool tied to the performance of a social enterprise in a defined population. Private investors investing in this bond, channel money to a selected social organization. On the part of the social organization, this tool gives them long term capital to scale up their innovative model. On the part of the investors, financial returns are made by the public sector on the basis of improved social outcomes. If outcomes do not improve, then investors do not recover their investment. This can be measured by a suitable social performance metric.

A diagrammatical view of the Social Impact Bond working can be seen below.

This innovative financial instrument has many advantages, including:

1. Provision of long term capital for promising social innovative ideas.

2. Transfer of risk to private capital markets.

3. The use of public tax money only if the enterprise provides promised social benefits.

For more information please go to the link below:

Source:

http://www.socialfinance.org.uk/work/sibs

http://www.economist.com/node/16789766?story_id=16789766&CFID=145242723&CFTOKEN=80436283

To think about this innovation more objectively, let me propose the following questions:

1. There are many stakeholders involved in impacting a social problem. How can we identify a single entity or group of social businesses for the purpose of funding through this bond?

2. Will this innovative social bond attract enough profit seeking private investor’s money?

3. Can philanthropists be attracted to make a potentially profitable investment such as this?

4. What defines a good social metric? To what extent will we be able to measure the social impact?

Wednesday, June 8, 2011

blog week 4

Waste Management: A rising issue in Africa


Challenges

Waste management is a major challenge in developing countries such as
Kenya. This is a particular problem in rapidly growing urban centres like
Nairobi, the capital of Kenya which produces around 1'900 tonnes of waste
per day. Only 33% of this waste is collected for disposal at Nairobi's
only official dumpsite, Dandora. The rest is littered on hundreds of
illegal dumpsites, next to houses or burned eventually resulting in severe
health and environmental problems.
Watch: http://www.youtube.com/watch?v=dbzBz2XMSbY

Poor waste management practices, in particular, widespread dumping of
waste in water bodies and uncontrolled dumpsites, aggravates the problems
of generally low sanitation levels across Africa. Urbanization is on the
rise in Africa, and this trend is expected to continue in the future. The
inability of waste management to cope with urban growth in Africa (the
highest in the world) at 3.5 per cent annually is of great concern. This
is particularly urgent in slum areas, which constitute a big part of many
of the cities and towns in Africa.


Current approaches by the various stakeholders in waste management are
unsuccessful. The public sector cannot cope with the problem due to poor
planning and lack of finances. The private sector's existing approaches to
waste management are not able to treat waste as a valuable good. The
potential income from recycling and composting is lost. Consequently,
waste collection and disposal becomes unnecessarily expensive, which only
33% of Nairobi's citizens can afford. The Informal sector is unable to
take advantage of the value of waste. Waste pickers on dumpsites are only
able to recover a small fraction of recyclable waste. This is because
waste on dumpsites is mixed waste, i.e. organic waste not separated from
inorganic waste. Consequently, separated recyclable waste is contaminated
and has little economic value.


Innovation: TakaTaka Solutions.

"TakaTaka" is a Swahili word for Waste.
TakaTaka Solutions is a social enterprise that collects and recycles
waste. It aims to bring about social and environmental change through a
commercially viable business approach, in particular:
• Affordable waste collection services to all income areas
• Recycling and composting of up to 85% of collected waste
• Job creation in the informal sector
• A cleaner and healthier environment
TakaTaka solutions will achieve this by reusing as much waste as possible
using state of the art technology, while minimizing transport costs. It
will collect separated waste from its clients, i.e. organic waste
separated from inorganic waste. It will compost the organic waste to
organic fertilizers, which it will sell to Kenyan farmers. TakaTaka
Solutions will recover the recyclable waste (paper, plastic, glass and
metal) from the inorganic waste. The recyclable waste will be sold to
recycling industries. This will leave only 15% of residual waste for final
disposal.
TakaTaka Solutions will use two adapted business models, one for higher
income areas and one for lower income areas. In higher income areas,
TakaTaka Solutions will collect waste from clients and compost the organic
waste at its Composting Facility, while it recovers recyclable waste at
its Recyclable Waste Separation Facility.
In lower income areas, TakaTaka Solutions will partner with youth groups
who will collect waste who will sell the organic waste and the recovered
recyclable waste to TakaTaka Solutions. For this purpose, TakaTaka
Solutions will own and operate decentralized waste processing facilities,
called "TakaTaka Points". As the TakaTaka Points will be situated within
lower income areas, youth groups incur low transport costs. This enables
them to offer affordable waste collection services to the local community
at USD 1/household/month.

Taka Taka Solutions Won 2011 Dell Social Innovation Competition
Caroline Kiriga: blog submission (2) week: 4