H E S S E L B E I N & C O M P A N Y

Leadership of the mole: The Emerging Power

of Social Entrxpreneurship L L

Jed Emerson

ne has only to look at suc- 0 cessful high-tech businesses to see that great entrepreneurs launch movements, not just compa- nies. Steven Jobs at Apple, Bill Gates at Microsofi, and Scott McNealy at Sun Microsystems offer a world- view, a passion for a cause that tran- scends the specific attributes of their product. On the other hand, many social sector leaders see that their organi- zations already repre- sent a movement-for healthy communities, effective schools, phys- ical or spiritual well- being-but lack the resources of our most dynamic businesses. The challenge for all innovators is to understand how leaders can build a movement, rather than simply an organization, that may advance their mission.

One of the most sqdicant move- ments of recent years is social en- trepreneurship. Its potential to transform makes it an important

asset for communities and a pow- e h l laboratory for leaders of all sectors. Gregory Dees of Stanford University and the KautKnan Cen- ter for Entrepreneurial Leadership offers a usehl definition of this embryonic movement:

Social entrepreneurs play the role of change agents in the social sec-

tor by:

Adopting a mission to create and sustain social value (not just private value)

Recognizing and relentlessly pursuing new opportunities to serve that mission

Engaging in a process of contin- uous innovation, adaptation, and learning

Acting boldly without being limited by resources currently in hand

Exhibiting a heightened sense of accountability to the constit-

uencies served and for the out- comes created

These capabilities can benefit pri- vate, public, or social sector institu- tions-and guide new enterprises that blend elements of each sector. For example, the Roberts Founda- tion podolio of social purpose ven- t u d a k e r i e s and cafes, janitorial and landscaping, retail and business services-were all launched by nonprofit organizations in the San Francisco Bay Area to train and employ people in need, and ulti- mately sustain these ventures in the marketplace.

In hrthering their mission in new ways, social enaepreneurs are pio- neering a form of leadership less centered on the actions of individ- uals advancing a national agenda than on a process of “leadership of the whole” in which practition- ers themselves (as opposed to those commonly viewed as “national leaders”) build a movement for broad social benefit.

Historically, leaders of a movement were recognized as leaders largely by their individual vision and abil- ity to work across regions and borders-connecting people to become a part of a newly evolving whole. The same has been true of social entrepreneurship. While the movement draws from a wide variety of disciplines (social and

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12 Leader (0 Leader

community work, business, philan- thropy, public policy), its national leaders have been those who could connect players previously unable to find one another. As they trav- eled the nation “spreading the gospel,” these leaders have been supported by their own organiza- tions, through which they could develop a greater understanding of the emerging movement.

itself, there are five forces con- tributing to the evolution of its nm, networked model of leadership.

Learnin2 purtnerships. Because there is no single model for understand- ing a new practice, social entrepre- neurs must learn b m others and work with those who share simi- lar visions and experiences. These partnerships are primarily centered

rn

National leadership of movements is fading.

However, it appears that this kind of national leadership of move- ments is fading. In its place we see a new form of leadership reflected less in the activities of individuals talking about their personal vision and experience than in the collec- tive force of practitioners and their stakeholders acting on a common agenda. Organizations are repre- senting their own best interests, connecting directly with each other. As this shifi occurs, it is use- ful to step back, assess the forces that make traditional national lead- ership less relevant, and understand the implications for others.

Forces for “Leadership of the Whole”

While many forces are driving the mation of social entrepreneurship

on the work of practitioners but also involve funders, academics, businesspeople, and customers. This learning occurs through forums, conferences, Internet mailing lists, and, most important, the day-to- day work of a project.

Interlocking networks and strategic d i - unces. Learning partnerships have often operated in isolation &om each other. Fortunately, an emerg- ing set of networks, drawing on many fields of thought, is breaking that isolation. Today’s community leaders find themselves working with established social service agencies, advocates of earned in- come strategies, managers of social purpose business ventures, and st i l l others practicing cause-related marketing. Each network informs its own practice by connecting

with others doing distinct but re- lated work.

These networks further the mt ion of strategic alliances. For example, ServiceMaster partners with local nonprofits providing supported employment to homeless and dis- abled individual. Similar “nationally gra.ssmts” alliances have connected social innovators with academic institutions, faith-based organiza- tions, and other regional groups of social entrepreneurs.

A n understanding ofuppnpiute smle. Attainkg sigdicant scale has been a challenge for organizations that traditionally wondered, “How do

“How do we expand on our de- monstrated success?” However, the notion of achieving appzopriate scale helps organizations become more viable and effective, not just larger.

we take our program national?” or,

Those seeking appropriate scale are less concerned with how to go national than with how to “go deep” within a community, an area of practice, or an individual organi- zation. Appropriate scale means do- ing more with regional resources, developing greater capacity to

engage wider segments of a core market or community, and strength- ening key relationships. National impact comes through the example set by one’s work and the develop- ment of strategic alliances with

Summer 1999 13

others advancing the field in other parts of the nation and world.

‘The speed ofchangt. In times of cri- sis- when hnding priorities in Washington began to change- some leaders look to others to devise solutions. These putative leaders believed they could simply “implement the model” created elsewhere to achieve a degree of program and funding success.

In recent years, however, it has be- come clear that the utility of “the model” is now dead. There are few universal models of strategy, or anything else. What works in one setting is often outdated in weeks and months, as opposed to years. The erne- role of leaders in all sectors is not to replicate structures and strategies but to adapt a con- ceptual framework, idea, or set of practices and apply it effectively to suit local needs.

Adwncing technologies. Practitioners now have access to the kinds of brokering and communication tools that historically have been the province of the “national leader.” Just a few years ago, an agency di- rector in South Dakota would have to await her association’s quarterly newsletter or annual conference for word of what others were doing. With he advent of the Internet, she can surf the Web and learn about related efforts from around the

world. She can engage in debate through an eleamnic m a h g list, a chat room, or an on-line, long- distance teleconference call. She has immediate, real-time access to the latest in strategy development. In- creasingly, technology acts as a de- mocratizing force to allow ideas to be considered on their merits.

The power of advancing tech- nologies to expand the horizon of a local practitioner becomes the glue that connects her to the larger world. She is a leader, connected directly to other community lead- ers. Together they act to change the face of societies-they lead as a body of the whole.

The New Role of Leaders

T h e forces supporting the emer- gence of a “leadership of the whole” greatly reduce the tradi- tional role for a “national leader” as gatekeeper of information. Indeed, “national leaden” will increasingly play a supporting role to local prac- titioners. In the words of executive recruiter and nonprofit execu- tive Dan Sherman, they will be- come “learning facilitators,” guiding others toward new resources and encouraging the fke flow of ideas.

In a globalized society, in business and in social movements, regional voices wdl set the national agenda. That agenda will emerge h m an

array of networks operating in chaotic concert. The new leaders’ value will be found in the spirit of their words, their ability to inspire others to join the parade, and their ability to bring cool water-in the form of new resources-to those who march. I t is a new role for those used to competing for a sin- gle spotlight. In the end, however, the power of community, the po- tential to capture the fd impact of our social and economic invest- ments, and the passion of those who advance our nation’s social agenda may finally come to fmi- tion. The question is not whether the new “Leadership of the Whole” will be allowed to move to the fore, but rather how those presently engaged in shaping a field of practice may most effec- tively act to assure its success.

Jcd Emerson is exccutive director of The Roberts

Enterprise Development Fund, an investor in 10

notrprqfit business ventures. He lras directed several

social sewicc organizations and is editor qf “New

Social Entrepreneurs: The Success, Challenge, and hssons of Non-Profit Entcrprise Creation. ”

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