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!

Keep on Keepin' On

Michael Meade is one of my favorite authors and happens to be a Vashon Islander like myself. I was recently listening to a CD of his on mentoring and came across this thought "to not live your dreams causes younger people to lose theirs." It got me thinking - hard. Being an entrepreneur is tough. Being a social entrepreneur is even tougher. There are days when I wonder what I'm doing. I'm a single parent. I try to keep my life simple, but I have a house, 2 young kids and a business to run. Why can't I just go out and get some high-paying corporate gig and quit worrying about cash flow, about trying to scale a methodology, about creating impact in the world? Because I can't. Because I have a dream - one I've been feeding for over 7 years. I deeply believe that applying the rigor of business to the framework of how we address social and environmental issues IS critical to changing the world. I deeply believe that all those intrapreneurs (entrepreneurs working within organizations) in the public and nonprofit sectors and all those entrepreneurs who are starting and running private business that have a social or environmental bottom line are making a difference one transaction at a time. And, I believe that the work I do in the world and the curriculum (Sustayne) I've developed with Bainbridge Graduate Institute is a highly effective tool in helping these ideas to get off the back of a cocktail napkin, get reworked into something feasible and get launched. I believe the work of Social Enterprise Group changes the world by providing an important toolkit for others who are changing the world.

We recently called several of our past Sustayne participants to find out how they're doing. This tool had a lasting impact for every single one of them. That matters. To me, to my company, to every single on of our clients and to all the clients and customers they serve.

So, when I ask myself why I can't just "get a real job"? It's because if I don't live my dream, there might be some fantastic social venture ideas that never quite get off the ground. And, my kids might not have the inspiration they need to live their dreams.

Hiring an Entrepreneurial Leader

I recently had a client ask me for suggestions on what type of questions to ask of their Executive Director candidates that would help them find someone who would be able to effectively lead their social enterprise efforts. I realized many organizations are in similar situations - going through leadership transitions and wanting to find someone that can lead the organization in a way that supports an entrepreneurial culture. Here are a few tips on questions to ask and answers to look for:

1) Ask what their entrepreneurial experience has been - have they started a business? Have they started major initiatives within a larger organization? Find out how these endeavors ended up. Listen for the mistakes they made and what they learned form those. If they try to sugar coat their entrepreneurial experiences, they may not really get that one of the most important aspects of being an entrepreneur is making mistakes, making course corrections and moving on.

2) Ask how they have or plan to integrate entrepreneurial thinking and support into the organization. Look for indications that they'll set up simple processes for allowing people's ideas to be surfaced and quickly vetted to determine if they should receive more organizational resources to study further. Try to get a sense of how they'll provide incentives for people to come up with innovative solutions to everyday problems.

3) Ask what their expectations are for earned income generation in the organization. If they are wildly optimistic and think the organization can be totally self-sufficient in a short period of time, they probably don't have a realistic sense of what it really means to run a social enterprise. On the other hand, if they are so down on earned income they don't want to have anything to do with it, they may have had a negative entrepreneurial experience they still haven't recovered from. In short, they should be looking to determine the most realistic, sustainable revenue mix (e.g. grants, individual donations, earned income) for that particular organization and develop a plan around how to achieve it.

Lastly, I think it's always a good thing to come across someone who knows what they don't know. If they know they have limitations around particular aspects of being an entrepreneur that's great - you're a step ahead in figuring out what gaps need to be filled through training, other staff or consultants. Best wishes on a successful hire! And, for all of you entrepreneurial job searchers out there - just be honest and be yourself. Really.