Lessons from Sustayne: Idea Vetting

So, you’ve got a great idea for a social venture. Or, you’re the leader of an organization and your staff and board keep coming to you with ideas. What do you do with them? On one hand, it’s great to foster a culture where ideas are vetted and dreams are dreamed. On the other hand, you’ve got WORK to do and paying attention to every little idea can be time consuming. One of the first things we focus on in Sustayne is to ask a few key questions to determine if an idea is worth assigning any more resources to.

First, develop a brief set (3-5) or organizational goals pertaining to social enterprise. Is your primary goal to develop a job training program or is it to generate revenue? Or, something else?

Identify the key goals of your social venture:
1.
2.
3.

Next, for each social venture idea, rate the extent to which the idea aligns with each of the following organizational factors. Once you’ve rated a venture, take a look at where it scored high and low and consider:

1. Are the areas where the venture scored low problems that can be remedied either through modifying the business model or via the organization? Are any of these areas “show stoppers”?

2. What is the organization’s willingness to change or work on specific organizational factors?

Scores
1 = not at all, 2 = not much, 3= moderately, 4 = well aligned, 5 = great fit

Rate each idea yourself, then have others in your organization rate it. Score separately, then compare.

To what extent does the business idea align with the organization’s mission?


To what extent does the business idea align with the organization’s core values?


To what extent does the business idea leverage organizational assets? (i.e. relationships, brand recognition, reputation, facilities, financial, knowledge)


To what extent does the business idea directly address the primary goals of the social venture?


Consider the minimum level of profit required to make the business idea worthwhile. To what extent is it possible that the business idea has a market demand and profit margin that can meet the organization’s profit needs?


Consider the minimum level of social impact the organization needs to achieve in order to make the business idea worthwhile. To what extent does the business idea realistically have the potential to make this level of social impact?


To what extent does the organization’s history of risk taking align with the risk level of the venture?


Consider the capital requirements of the business. To what extent can the organization realistically raise or find other sources of funding to cover these costs?


Consider cultural impact and reputation. To what extent does the venture’s level of impact align with the organization’s threshold for cultural impact and effect on reputation?


Total Score:
(copyright Social Enterprise Group 2005)

I've found this tool to come in handy to quickly eliminate or further consider various ideas. I hope this works for you - feel free to comment on how you used this tool. This is one of many I'll be sharing as part of our "Lessons From Sustayne". Want to know more about Sustayne? Go to www.socialenterprisegroup.com for more info. on workshops and licensing opportunities. Good luck!