Download pdf - Jason Saul on Selling Your Impact - From Cutting Edge Collaboration, Jan 25th and 26th, 2012

Selling Your Impact

Central Appalachia Region Cross-Sector Partnership WorkshopJanuary 26, 2012

Why So Expensive?

Cost Per $100 Raised$25

$20

$25

$15

$5

$10

$0

$

Obama McCain Corporations Nonprofits

2Central Appalachia Cross-Sector Partnership Workshop© 2012 Mission Measurement, LLC.

Obama McCain Corporations Nonprofits

We Have No Leverage


Charity is Declining

For the second year in a row, philanthropy has seen thephilanthropy has seen the deepest decline ever recorded.

Contributions to foundations fell 8% in 2009, following anfell 8% in 2009, following an almost 20% drop the year before.


Where We Are Today


Business Model for Charity in Jeopardy

“Obama Bill Scrambles Charities” September 23, 2011


Jobs is the New Philanthropy

“Are Companies Responsible for Creating Jobs? “October 28, 2011


CSR Has Only One Bottom Line

June 14, 2011

“To Be Good Citizens, Report Says, Companies Should Just Focus on Bottom Line”


http://www.nytimes.com/2011/06/15/business/15charity.html

Social Innovation Can Take Many Forms

“F f th ld’ h i d i ”October 21, 2011

“For some of the world’s poor hope comes via design”


http://www.nytimes.com/2011/10/23/arts/design/for-some-of-the-worlds-poor-hope-comes-via-design.html?ref=todayspaper

New Models at the Intersection

October 12, 2011

“New Companies Combine Profit and Charity”


A New Generation of CSR

CSR 3.0

CSR 2.0

Strategic

Social Innovation

CSR 1.0

Charity

Strategic Philanthropy

Accountability Business Value


Today, It’s All About Impact and Value

Headache MedicineA Pain Reliever

Website“The power to make the

Low PricesA Better Life

world more open and connected”


Social Innovation Examples



New Sources of Funding

The Independent Sector The Social Capital Market

$200 Billion $6 Trillion

$100 Billion carve-out for

churches


A new set of stakeholders

Independent Sector:Philanthropists

Social Capital Market: Impact Buyers

BeneficiariesCorporate Partners

BoardFoundationsBeneficiaries that can pay

Upstream “Consumers”

S i l SharedSocialBenefit

Shared Value

DonorsGovernmentSocial

InvestorsService

Providers


Impact buyers: what’s in it for them?

Sees social and business value

Corporate Partners

Values the personal return on investment

Relies on outcomes to create economic

valueBeneficiaries that can pay


High Value Benefit

Social Service InvestorsProviders

Allocates resources to “buy” certain

outcomes.

Sees an opportunity to improve services

offerings


offerings

Impact buyers

Buyer Description Examples

An outcomes-driven funder who has allocated a specified amount of funding specifically toSocial specified amount of funding specifically to

"purchase " a specific set of results.

An individual or organization who consumes your products or services and is able to pay for benefits

Investors

Beneficiaries th t products or services and is able to pay for benefits

received.

An organization that relies on your outcomes to enhance its service offering or achieve its own

that can pay

Service Providers g

business objectives.

An individual or organization that relies on social outcomes produced earlier in the value chain to

Providers


generate desired outcomes or income.

Companies that require certain social change in order to create direct economic value for the

b i

Corporate Partners

Consumers


business.

New realities

1. Social outcomes now have economic value

2. It's okay to expect an economic return from doing good

3. Not all outcomes are created equal


High-value outcomes

Strategic Philanthropy High-Value OutcomesHig

h

Affinity-based appeal to individuals & foundations

Evidence-based appeal to impact buyers

alue

Charity Business IncomeSoci

al V

a

Charity

Emotional appeal to individuals

Business Income

Unrelated corporate (cause) marketing

w

Economic Value

( ) g

Low

L Hi hEconomic Value


Low HighEconomic Value

Change the conversation

OUR NEED TO SELL THEIR NEED TO BUYCase for Support

• Our approach, program

Business Case

• Their need or painpp , p gand services

• Our impact

O li h t

p

• The value you can offer them

E id th t• Our accomplishments • Evidence that you can meet their need

It’s not about telling our story, it’s about showing our value


The Formula

Capture Your Market SellCapture Your Impact

Market Your Impact

Sell Your Impact

Engage stakeholders to develop

your inventory

Identify the “impact

buyers” who value your

Build the business case your inventory

of outcomes, assets and capabilities

value your outcomes, assets and capabilities

for current and new investors


Key Questions

• What does this new market mean for us?

• What outcomes can we “sell”?• What outcomes can we sell ?

• Where can we create the most leverage?


Sell Your ImpactRonald McDonald House Charities Example

Owner/Operators RMHC Chapters

Children & Families

McDonald’s Corporation

Suppliers

HospitalsGrantees


Hospitals

Donors

Sell Your ImpactExample: Value Propositions

Non Profit Outcome or Value

Shared Value Need/Pain Impact

Buyer

Increase bed turnover i

Enable family centered

Improved patient results

d h t improves revenue

care and shorter hospital stays

Drive salesImprove

brand trustIncrease customer Drive sales brand trust customer

revisit intent


Sell Your ImpactFree the Children Example

Schools & School

Youth Participants

Corporate Funders

Schools & School Boards

Funders

Overseas Communities

Teachers


Parents

Sell Your ImpactExample: Value Propositions

Non Profit Outcome or Value


Buyer

Character education curriculum

Improve student engagement and d li h t

Improve student engagement and success

mandates & student

engagement

deliver character education

and success through social

action Free the Children

Employee Activate youth

and their

Increase employee

&p y

engagement and access to new markets

and their families

through social action

engagement & connection with youth

market


Break


Exercise: Overview

Capture Your Market SellCapture Your Impact

Market Your Impact

Sell Your Impact

Engage stakeholders to develop

your inventory

Identify the “impact

buyers” who value your

Build the business case your inventory

of outcomes, assets and capabilities

value your outcomes, assets and capabilities

for current and new investors


Round 1: Capture Your Impact Discussion: What Outcomes Do We Produce? 30 mins

1. What is unique and different about the region? About each of our organizations?

2. What valuable resources or capabilities do we bring to bear?

3. What social outcomes do we strive to achieve?

4. Which of these outcomes are most important and valuable to business?

Change in Status ROI Systemic Changeg

Behavior

Attitude

ROI

Improvement

Adoption

y g

Action

Visibility

Knowledge

Awareness

Touch points

Efforts

Engagement

Outreach


Round 1: Capture Your Impact Notes: Success Equation Exercise 30 mins

ImpactWhat are we ultimately trying to accomplish?

High Value OutcomesWhat changes in status, behavior or condition most directly influence “D”?

A B C D A B C D A + B + C = D A + B + C = D Performance

MMeasuresHow do we

measure progress toward our outcomes?

Key StrategiesWhich programs or activities will drive

results?


results?

SUCCESS EQUATION: EXAMPLE

ImpactPriority Outcomes

A B C D A B C D

Build capacity tomanage personal

finances

Improve job readiness and

retention

Increase Savings & Assets

Improve Family Financial Stability

A + B + C = D A + B + C = D # clients who achieve # of clients who # of clients who

Performance Measures

# clients who achieve financial literacy

# clients who become financially low-risk

become job-ready

# of clients placed in jobs

become banked

Client savings rateMeasures

# of clients who retain jobs for 90 days or

more


Round 2: Market Your Impact Discussion: Who Values Our Outcomes? 30 mins

1. Who directly benefits from the outcomes we produce?

Corporate 2. What if our organization(s) or

efforts did not exist? Who would care?

pPartners

BeneficiariesUpstream3. Who is willing to pay for our

outcomes?

4 Who is in pain because they’re

Beneficiaries that can pay


Shared Value

4. Who is in pain because they re not getting what we produce?

5. Who has a financial incentive to h l ?

Social Investors

Service Providers

help us?


Stakeholder Engagement

• What are the key business objectives of your company? (Potential categories to prompt if needed: Growth, Innovation, Products, Employees etc )Employees, etc.)

• What are the key challenges you face as you work to meet your business goals and objectives? g j

• What changes or outcomes will help you address these challenges?

• How can we help you produce these outcomes?


What is our Shared Value?

Your Asset / Capability

High Value Outcomes


Buyer


Round 3: Sell Your ImpactWhat is Your Business Case?

Impact Buyer: Need to BuyNeed to BuyWhat is their pain point or need?

Value PropositionHow can we solve their pain point or need?p

Track RecordWh t i id fWhat is our evidence of success?


The 7 Immutable Laws of Selling Your Impact

1. Go through the front door, not the back door.

2. Always use value pricing, not cost-plus

3. Know your customer (and speak their language).y ( p g g )

4. Sell painkillers, not vitamins.

5. Sell outcomes, not programs.

6. Don’t oversell.

7. Don’t waste time on idiosyncratic funders.


Where We Go From Here

• Articulate your value

• Test with impact buyers

• Develop business case

• Innovate (as needed)• Innovate (as needed)

• Leverage the engine, not the ffumes


Extra Slides


Mission Measurement Overview

MM increases social impact by helping our clients use measurement to improve performance, demonstrate

Our Mission Thought Capital

p presults, and attract resources.

Corporate Nonprofit Public Sector

• Asset building• College access• Corporate social responsibility• Early childhood education

• International development• Nutrition and physical fitness• Policy change• Scientific research

expe

rtise

• Emerging markets• Environmental strategy • Health care access/ delivery• HIV/AIDS prevention

• School reform/ transformation• Sustainability Initiatives • Workers' rights• Youth development

Areas of e


/ p p

Mission Measurement Overview: Our Clients
