How does social enterprise measure up? Presented by: The Collaborative for Innovative

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How does social enterprise measure up? Presented by: The Collaborative for Innovative Social Enterprise Development (CISED). Introduce the concept of social costs & social outcomes Start to identify ways to measure social impact Start to identify the social costs for your SE - PowerPoint PPT Presentation

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PowerPoint Presentation

How does social enterprise measure up?

Presented by:The Collaborative for Innovative Social Enterprise Development (CISED)

Introduce the concept of social costs & social outcomes

Start to identify ways to measure social impactStart to identify the social costs for your SE

Develop an understanding of the challenge of balancing social and economic objectives

Krackers Katering Case

Social Objectives Why are you doing this?

Social Impact Measurement

Asset Building/Accommodation Strategies

Balancing your bottom lines

Social Costs

Attached is an excerpt of the CS marketing plan which I feel is ready for implementation. The attached includes the objectives, strategies, and related workplans which are based on the audit that was done in late summer. If you would like to see the full plan or audit findings, pls let me know.Any feedback is welcome thx.

Case StudyTo create meaningful paid employment and training for individuals with mental illness and other barriers to employment, while offering a high quality catering service that sustains the environment and supports the local community.

Began in 1999 as AESB employing mental health consumers & survivors

+$200K funding from various sources

Objective to provide vocational training to enable clients to meet their goal of seeking meaningful employment outside of Krackers

Revenues of $7369 in year 12oo4:88% of revenues from nfp organizations & health sector10% from private sectorAverage order was $174

20042009ModelOne year training program; new employees each year25% of employees move on to employment, education, or otherStaffing 1 manager1 manager & 2 kitchen supervisorsRevenues$81,841$158,000Client-employees2541Employment hours55884800Employees moving on to outside employment or education27Measure of SuccessSocial outcomesBalancing both social & business objectives

Why are you doing this?

Parallel strategies offer fulfilling long-term work opportunities for people who are able to work, but requires a supported work environmentLinking strategies work with people who face barriers to employment, and can with training & support, fit into mainstream work environmentsLinking Strategy: Krackers has a goal of 25% to mainstream employment

How will you know youve made an impact?

Demonstrate the value created by the organizationShow the impact of grants, social investorsAssess the organizations ability to align with its missionMake the case for further investment in the organizationCheck the effectiveness of management

What is the mission of our organization ?

What barriers that our clients face are we looking to improve ?

What are our goals for measuring performance ?

How many resources can we reasonably invest for performance measurement ?

How it will improve the effectiveness of our organization ?

What do our funders expect?

Krackers Katering & other Causeway SEsIdentify the impact of working in a social enterprise on clientsSurvey given to clients based on the Sustainable Livelihoods Asset AreasPreliminary analysis show a higher personal asset increase than expected and lower financial assets increase than expectedGuiding further management decisions -> i.e. financial literacy training

Section of Causeway Social Impact Measurement Survey given to client-employees

How are you going to achieve your social objectives?

Accommodation Strategy:Strategies & practices that SEs use to support their target population to participate in the business, and engage in the broader communityTwo processes:Change work environment to remove barriers to participationPromote behavior change that supports people to be more employable

Clarity about the rules & expectations of the workplaceSupportive cultureTiming of workSupervisors & Assistants who support task completionOrganization of tasksTool design & ergonomics

More structured work environment that demonstrates clear expectations of behaviorPut positive routines in placeFormal training & and informal personal supportOn-going assessment and counseling support to help people adapt & retain employment

Job related training (ie serving & event planning, food prep, safe food handling, H&S, customer service, inventory mgmt)

Generic work skills training (ie time mgmt, personal hygiene, problem solving, conflict resolution, team work)

Personal development (ie employment planning, crisis intervention, performance U employment evaluations)

Job coaching & support:Extensive & onsite

Flexibility: leave, sickness, mental health issuesscheduling & hours

Regulatory accommodations:ODSP & OW

Accommodating policies:Progressive discipline policyOpen door policy & support to discuss personal issues (ie mental health, housing, addictions, housing, etc.)

Progressive movement:into further employment or education

How will you balance your triple bottom line?

Financial health vs client healthbig orders vs small orders

Training and retaining employees

Accommodation planning for the unplanned

The cost of moving to a triple bottom line

Focus:Understanding niche market, use of referral network

Partnerships & Capacity:Effective & collaborativeBack-up support system

Human resources:Right blend of staff & autonomy

Tracking :Both social & business costs

Long term vision:Constant small steps

Priorities:Business model has to be right for social outcomes to happen

How much do your social goals cost?

Its a social cost if its incurred to accomplish a social mission;

Its a business cost if its incurred by a similar for-profit business in the same industry;

If all social costs are taken out, the remaining cost structure should be comparable to a for-profit business in the same industry

Employment based:Krackers Katering - ongoing training means extra training, supervision, job development & coaching costs

Mission based:Mothercraft Doula Service: wider market means higher marketing costsEnvironmental Biz: higher product costs (local & green suppliers)

Revenue based:Habitat for Humanity re-Store: high volunteer involvement increased time to recruit, train, manage volunteers

Business CostsCost of goods soldLabour Repairs & maintenanceUtilitiesRentProf & biz feesAdvertising & promoInsurance

Social CostsCost of goods soldFood wastageLabour (training & production)SupervisionOperating expensesEquipment purchases & repairsInsurance costs

Planning what will it take to run the business (financial, expertise, time)? Logical partners?

Decision making does it make sense to expand or contract? How efficient is the business?

Goal setting what is realistically achievable? Willl the outcomes justify the costs?

Budgeting how much cash, fundraising, funding is needed?

No exact method:Part observation, part use of industry informationTrack over time to validateBalance between level of accuracy/detail & time neededConsider the value & use of information

Can start with industry information: What does a comparable for-profit business look like?What are the social costs up and above? (business & organization)

Whole industry

(% of revenues)Bottom QuartileLower MiddleUpper MiddleTop Quartile% of bizs reportingTotal revenue100100100100100Cost of sales- wages1.12.85.512.428.7- purchases31.841.542.141.089.3Operating expenses- Labour 6.46.913.116.855.1Rent7.36.17.06.656.3- Adv & promo1.31.11.11.764.5Total expenses85.889.294.8100.499.9Net profit/loss14.210.85.2-0.499.9

Profitable vs Non-profitable businesses (thousands of dollars)Bottom QuartileLower MiddleUpper MiddleTop QuartileProfitable69.6% of all bizsTotal revenue43.288.6187.4906.8Total expenses30.669.7158.3853.7Net Profit12.618.929.153.0Non-profitable31.4% of all bizsTotal revenue44.587.1198.41028.6Total expenses54.8108.5225.91131Net Profit-10.4-21.4-27.5-102.4

Tracking Time in the CSMTotal of ~$47,000 in annual social costs in staff timeChallenges implementing tracking system in other businessesHave yet to track other social costs such as food waste

Return to the Business Model Canvas & Napkin Financials

Add (or start a new canvas) Accommodation Strategies, Conflicts, Balancing Strategies, & Social Cost items

Put $ amount on the social costs on the Napkin Financials

Where can I find out more?

http://www.cised.ca/workshops/training-materials

MaRS White Paper on Social Metrics Business of Inclusion Add your own resources through the comments!

4Good ConsultingMarket Research, Logo & Print Design, Video or Photo Essay more next week

Prosperity Centre

Carleton University & CausewayLooking for three SEs to analyze social impact

Coaching

Phew!

Business Model Canvas

Market Research Worksheet

Who should write your business plan & how it should be approached

Social Objective & Social Impact Measurement

Asset Building & Accommodation Strategies

Balancing Strategies

Social Costs

Questions

Evaluation

Workshop next week Feb.25th, 9:30-4:30pm, same location