Chapter 4 From Opportunity to Action

Opening Discussion Read the case of Berkeley Oakland Support Services (BOSS) and answer the following questions:  What factors led BOSS to consider modifying its services?  What steps did BOSS take to validate the opportunity and then prepare for this change?

Chapter Outline Elaborating the opportunity with social impact theory: value proposition and theory of change Developing the operating model: program logic Venture feasibility and business planning Supporting analysis: risk, market, resources

The Opportunity Development Process Turning an opportunity into a viable program involves the following elements: Social Impact Theory The model of how the venture will achieve its intended social impact.

Social Value Proposition The social value proposition:  Social value created by an organization  Underlies and forms the basis for the operations of an organization For Example: AssureBridge Technology Value Proposition

Centrality of the Value Proposition Describes the social value being created Defines who is being served and how Links the opportunity, people, capital, and context

The Venture’s Theory of Change Explains how desired long-term change is expected to occur Predicts who or what is going to change, over what period of time, and by how much at every step of the process Uses backward mapping process

The Program Logic Model Is linked to the theory of change Describes the sequence of activities thought to bring about change Describes how these activities are linked to the results the program is expected to achieve Planning tool to help put the theory into action

Social Value Chain Used to analyze how to create competitive advantage by creating value for customers Set of value-adding activities that link inputs to outputs purchased by customers Includes both primary and support activities Business oriented value chain. What should be added for a SE measure?

Venture Feasibility Assessment Initially assesses the venture’s practicality Answers the question: “Should we proceed with the venture’s development?” Assesses:  Industry Industry Assessment  Market  Resources needed  Benefits provided  Potential problems and pitfalls

Venture Feasibility Assessment Firm Assessment  Research Primary: Customer surveys, focus groups Secondary: Association/Industry data, UN projections  Prototyping  In-Home trials  Financial Feasibility

Business Model Feasibility

Social Business Model Feasibility

The Venture’s Business Plan Lays out all the details needed to explain and justify the venture’s operation Normally includes descriptions of objectives, details of operations, financial projections, and the larger environment Provides an internal roadmap to guide work activities Is also used to explain the venture to outsiders to raise money, get partners, and attract new leaders We will be talking about the business plan on Thursday!

Risk Assessment Should be aware of risks and attempt to manage them Considers these types of risk: financial, organizational/operational, venture/enterprise, and external environmental Calculates total risk as the sum of:  “Sinking the boat” risk: launching a venture that does not work  “Missing the boat” risk: not launching a venture that would have worked

Market Analysis New ventures will be at the product development and introduction stages of the product life cycle. Use segmentation to identify target audiences. Initial marketing should target early adopters, identified by self-reporting or reports from others (reputations).

Policy Field Analysis When social entrepreneurs deal with social issues, they need to understand how public policy directly or indirectly influences their environments. Analysis will likely involve various levels of government and other private organizations. Policy field includes the organizations involved in a given substantive public policy or program area in a particular place and the relationships among these organizations.

Policy Field Analysis

Resource Analysis Start with an assessment of the capabilities needed to bring about the desired results. Determine the resources needed to acquire these capabilities.

Discussion Consider the model of opportunity development outlined in the previous slides and answer the following questions:  What do you think is the most important part of the process?  How can the value chain be linked to program logic?  What aspect of risk might be the hardest to forecast?