MAKING A CASE FOR THE FOUNDATION Lindsay McHone Kim Moody Diane Weaver

LISTEN AND LEARN

13 ENDANGERED LANGUAGES in 30 minutes = 26 ENDANGERED LANGUAGES in 1 year

Description Rosetta Stone Foundation, a nonprofit entity of Rosetta Stone Preserves and revitalizes endangered languages Technology is highly interactive and teaches by immersion …language meaning is not lost

Mission …to promote language fluency in endangered language communities through appropriate and sustainable technologies and…to enable intercultural communication and understanding through innovative and effective language-learning solutions where they are needed most

Sources of Innovation The Unexpected “What basic changes are now appropriate for this organization in the way it defines its business? Its technology?” (Drucker, 1985, p. 42) GO BEYOND teaching the true spoken languages, to unspoken languages. The Incongruity The endangered languages “industry” seems to be focused on recording languages – not teaching & sustaining! This Represents An “incongruity between the efforts of an industry and the values and expectations of the customers” (Drucker, 1985, p58)

Sources of Innovation The Innovation Based on Process Need Technology = “the missing link” Demographics Change in population of active speakers

Strengths, Weaknesses, Opportunities, Strategy and Potential Threats STRENGTH: Unique relationship with software developer OPPORTUNITY: 2 nd Order Innovation: Technology + Research STRATEGY: Collaborative Relationships with other non-profit entities: Endangered Language Fund, University Scholars/Researchers & Others STRENGTH: Soft Advertising & Brand Recognition

Strengths, Weaknesses, Opportunities, Strategy and Potential Threats POTENTIAL THREAT & OPPORTUNITY: Why is this important to investors? STRATEGY: Collaborative Innovation = Reaching across small network line OPPORTUNITY: Pharmaceuticals, Bio-energy OPPORTUNITY: Just as Shakespeare created many words that we use today – these languages hold many words and meanings that are important to future generations.

Competitive/Collaborative Advantage RS already demonstrates competency in language preservation with its ELP Assessing the environment through a competitive lens (Porter’s 5 forces) isn’t enough anymore Every company needs to watch the full stakeholder playing field carefully (Esty & Winston)

Collaborative Innovation Language extinction is happening at an exponential rate Preserving one or two languages at a time will have limited influence on the contextual environment in which RSF operates (Smith) Assess stakeholders for collaborative partnerships Serve as a network agent by connecting stakeholders interdependent on one another as they co-produce social change

Strategic Alliances When two organizations go after the same objective, helping each one to achieve their own goals Work with Endangered Language Organizations and University Researchers/Scholars to Provide the “legwork” for technology creation

Collaboration Possibilities Foundation For Endangered Languages (GB) The Foundation for Endangered Languages exists to support, enable and assist the documentation, protection and promotion of endangered languages. In order to do this, it aims: To raise awareness of endangered languages To support the use of endangered languages To monitor linguistic policies and practices of endangered languages To support the documentation of endangered languages To collect and make available information regarding endangered languages; To disseminate information on all of the above activities as widely as possible.

Collaboration Possibilities The Hans Rausing Endangered Languages Project (London) The Documentation Programme (ELDP) is providing £15 million in research grants to document the world's most endangered languages The Academic Programme (ELAP) Teaches postgraduate courses in language documentation and description, and field linguistics. It also hosts post-doctoral fellows, researchers, visitors, and conducts seminars and training The Archiving Programme (ELAR) is preserving and disseminating endangered language documentation, developing resources, and conducting training in documentation and archiving

National Efforts: Collaborative Possibilities The National Endowment for the Humanities (NEH) and the National Science Foundation (NSF) have joined forces on Documenting Endangered Languages (DEL), a new, multi-year effort to preserve records of key languages before they become extinct. By encouraging use of digital standards and best practices for archiving new documentation and reformatting earlier recordings, DEL is laying the ground for wide use and sharing of language resources and helping to ensure the long-term preservation of the collected data. The Smithsonian Institution's National Museum of Natural History (NMNH) participates in DEL as a research host, a non-funding role.

Collaboration Possibilities “The Kallawaya herbalist healers living in Bolivia: For the past 500 years, they have encrypted their knowledge of thousands of medicinal plants in a secret language handed down in the practitioner families from father to son. “ (Soars, 2007, p.2) What could this mean for the pharmaceutical industry?

Pharmaceutical Implications “In 1990, drug companies made $85 billion in profits on medicines derived from plants first known to indigenous peoples for their healing properties” (Peters, 2009)

Science Implications “Much of what humans know about nature is encoded only in oral languages. Indigenous groups that have interacted closely with the natural world for thousands of years often have profound insights into local lands, plants, animals, and ecosystems—many still undocumented by science” What could this mean for scientists and scholars? Source:

“ Value is created with the experiential learning that comes from examining value chains and developing strategy within a collaborative network of external thought leaders.” Chris Laszlo, 2008

Target Market/Priorities Language Types: Type IAt risk w/ several million speakers Type IISeriously endangered w/ several thousand speakers Type IIINearly extinct w/ less than 100 speakers Where can RSF be most effective?

Target Market/Priorities RSF’s inclination to focus on mid-range communities is wise Trying to be all things to all people is a classic mistake that many businesses make Start on a small niche when entering the market

Target Market/Priorities Each new success will build the brand Collins says, “…persistent efforts will lead to unstoppable momentum where potential supporters not only believe in the mission, but also in the capacity to deliver on the mission.”

Cost Allocations “Take stock of the organizational capacity” (Oster, 2004) Including: – Resources – Staff – Management – Outsourced Resources – Profit vs. Mission – Timeline & Measures of Success

Economic Profitability and Sustainability Little contribution from communities “reframe the mission to reach across small network” (Smith, 2009) Language Learners = Sustainability for both communities and Rosetta Stone Foundation

RSF Team Organization Governance – 2-3 members of RS board, other 5 members newly selected The Inside Team on payroll should be extremely committed to the mission, and the sustainability of its success. Diverse set of backgrounds, lead by someone with non- profit leadership experience

What is the Reward for the Funders? Tax incentives Pride of being part of something extremely different than many other non-profits Possibility of language revitalization trips to work with groups using technology Possibility of high profile events and name recognition (ie. Smithsonian, etc)

Stewardship Principles Balance Board composition Indigenous language w/ need for intercultural communication Interdependence RS & RSF relationship RSF & Donors

Stewardship Principles Regeneration Preservation of language and culture Donors help protect their own livelihood Diversity Multilingualism instead of monoculture Diverse funding base Board composition

Stewardship Principles Succession Young people care about their heritage and pass it on! BIRDS

Sustainable Value Chain Business Context: Broaden spectrum to include intercultural communication technology and programs, in conjunction with language learning software. Brand/Culture: Develop software that is easy to use, and easy to teach with so that it will create a culture of “Learning Leaders” within communities. Build on brand already established by RS to be the best in big and small communities! Market: Look and Listen! Who needs the product the most? Build the protect to suit the needs of the end user. Product: Creating a Product that is good for both Rosetta Stone AND the community members (especially the younger generation). Process: Reducing “process costs” when developing software. Risk: Adhering to IRS rules for allocating costs of services or resources from Rosetta Stone to the Foundation. Adhering to appropriate IRS reporting measures for the non-profit organization.

First Order Innovations First Order Already Completed Growing RS to 800+ employees and offices in 6 areas across the globe: BRAND RECOGNITION AND GROWING SIZE OF COMPANY Launching three endangered language programs from : CREATING RSF & GROWING PROGRAM FROM 0 TO 3 Hiring 3 FTE’s to begin the process of starting the non-profit: INCREASED QUANTITY First Order to Complete Couple with more endangered language communities to create software for other languages: QUANTITIES Add more staff to RSF/ couple with additional RS staff to create products in a more timely fashion: SPEED

Second Order Innovations Second Order Already Completed Launching 2 grant programs in 2007: WORKING WITH ALTERNATIVE SOURCES OF FUNDING / MULTI-DISCIPLINARY Thinking to use the parent software engineering company to create programs (and serve the mission of the non-profit): MERGING THE EFFORTS OF TWO SEPARATE ENTITIES / CROSS FUNCTIONAL Creating a dual mission statement: POSSIBLY CREATING NEW ALLIANCES WITH PEACEBUILDERS ACROSS THE GLOBE.

Second Order Innovations Second Order to Complete Is there new technology that RSF can consider when bringing language teaching technology to those in areas of endangered language?” (Drucker, 1985, p135). Apply for more grants with foundations with similar mission statements (without language software piece). QUANTITIES/SIZE Creating partnerships with communities and/or other organizations to make this cost-neutral for RSF: NEW ALLIANCES

Timeline & Milestones Late August: Cooperatively Agree on Cost Allocation & Budget Details (RS and RSF) and financial requirements for the non-profit start-up. Go/No Go! Late August: Start Small! Establish 1-3 languages to focus on during the upcoming year. Early September: Research the languages and the organizations that are currently recording/have recorded these languages. No need to re-create the wheel! Mid-September: Schedule meetings with potential collaborative research partners to talk about languages and the potential types of information that they hold.

Timeline and Milestones October – December: Start “making the case” to funders. Work with collaborative partners to apply for R&D grants to document the languages. Talk with potential community leaders about their product needs and financial abilities. December – March: Meet consistently with all collaborative partners and funders. Also meet with community members and start to get the attention of the younger generations. April – May: Create the final product. Continue to evaluate budget against agreements (RS and RSF).

Timeline and Milestones May – June: Make distribution of the product a “family affair”. Include collaborative partners, funders and all community members. July – August: Regularly follow-up with community members and collaborative partners. August: Start thinking about the next steps! Re-evaluate budgets, staff and relationship between RSF and the parent company. Ongoing: Never stop communicating with communities! They could become “collaborative partners” for future products!

Questions?

References Bittinger, M. (2009, July 16). Rosetta Stone Foundation, EMU MBA 658. Harrisonburg, VA. Collins, J. (2005). Good to great and the social sectors. Boulder, CO Drucker, P. F. (1985). Innovation and Entrepreneurship. New York, NY: Harper and Row. Esty, D., Winston, A. (2009). Green to Gold: How Smart companies use environmental strategy to innovate, create value, and build competitive advantage. Hoboken: John Wiley. Laszlo, C. (2008). Sustainable Value, how the world’s leading companies are doing well by doing good. Stanford, CA: Stanford University Press. Oster, S. M., Massarsky, C., W., Beinhacker, S. L. (2004). Generating and Sustaining Nonprofit Earned Income. San Francisco, CA: Jossey-Bass. Smith, Anthony E. (2009). Stewardship Design Principals. Harrisonburg: Virginia: Eastern Mennonite University. Smith, Anthony. (2009). Shakespeare and the Spirit of Innovation. EMU MBA 658. Harrisonburg, VA

References Continued Soars, Claire. The languages of extinction: The world's endangered tongues. The Independent: October Peters, Nathaniel. ( 2007). Saving Lost Languages.