stop competing start innovating with chuck wall

STOP competing.

START innovating. Steps

Session Hashtag: txnsinnovate

The business of non-profits is the business of innovation.

(Whatever your mission.)

Session Hashtag: txnsinnovate

EVERYBODY’S TALKINGABOUTINNOVATION.

Goals for todayDiscover a better way to innovate

Share a few NPO innovations

Excite you about possibilities

Give you specific takeaways

Session Hashtag: txnsinnovate

It’s not inventing something new.

It is improving something that

already is.

It’s like regeneration.

Why does innovation seem so difficult?

Customers Competition

Culture

Market structures and boundaries exist only in our minds.

It’s a Mind Game.

There are well marked, specific boundaries.

Are you willing to use your common sense?Are you willing to listen to your customers?Are you willing to follow a proven process?

ORIGIN NEED

EDUCATION + EXPERIENCE

Word of mouthResearchSalesperson

Direct experienceIndirect experience

ORIGIN

NEED

I need to eat.I still need to eat.

VALUENEED

PSYCHNEED

PERFNEED

ESTEEM

BELONG

But now I also need

Low cost.

More energy.

FILTERS

NeedThe awareness of a deficiency

My family will think I’m smart.

One of those healthy people.

What If Hybrid: Sweet Beginnings

Launched in 2000 in Chicago

Most-Important-Customers: Ex-offenders.

Unmet need: Providing transitional employment upon release from prison.

Innovation: Create a community based business as a pathway back.

57% of the residents of North Lawndale neighborhood of west Chicago have done prison time. Employees do all the work involved in operations, manufacturing, website maintenance, sales.Most stay 90 days as a way back with work experience and a resume entry.

Results: Fewer than 4% have gone back to prison compared to 65% national average.

Identifies each entity involved in a transaction between the originalprovider and the end user.

What’s a Value Chain?

Board

Management

Employees

Donors

Volunteers

Partners

Recipients of services

LOC

AL

NO

N-P

RO

FIT O

RG

AN

IZATIO

N

Many Choices

Alums Families

GovernmentFoundations

Corporate sponsors Local media

OrganizationsIndividuals

Existing Future

Who’s The Most Important Customer?

For NPO’s, there are almost always two MIC’s:the recipient of services and the donor.

What’s a Value Curve?A one page visual mapping tool to clearly understand what is most important to your Most Important Customers.

Commercial Paint Manufacturer

PriceEase of useDistributorsColor Selection

Mixing ToolsGrade qualitySupplements

Containers

PriceEase of useDistributorsColor Selection

Mixing ToolsGrade qualitySupplements

Containers

What They Assumed

Contextual interviewing is the single most

important thing you can do in

innovation.

PillarPillar

RopeRopeThick branchThick branch

Hand fanHuge wallPipePipe

Understanding them: think, see, feel, hear, say + do

THINK + FEEL?

HEAR? SEE?

PAIN GAIN

What do they What do they

What do they

What do they

What do they

THINK + FEEL?

SAY + DO?

Good Careers AcademyLaunched in 2009 in San Antonio

Most-Important-Customers: South Texas employers and future workers.

Unmet need: How to provide a personalized career path and certification for a fraction of the cost as a for-profit training school.

Innovation: Creating a new kind of community partnership.

Careers:Pharmacy technicianComputer Support SpecialistCertified Nurse’s AssistantLicensed Commercial DriversCustomer ServiceSupply Chain Technician (including Internal warehousing, Internal logistics and transportation) Results: Lifetime earning potential increased by more than $500,000. 1,000 annual graduates each year, resulting in a 90% graduation rate (vs. a 38% rate at for-profit schools).

Before interviews After interviews

Insight!

Price

Job site ease of use

DistributorsColor Selection

Mixing ToolsGrade quality

SupplementsContainers

To Be

Disposability / reusability

Case Study: 826 National

Launched in 2002

Most-Important-Customers: Low income students and local donors.

Unmet need: Helping students get the individual attention they need to develop ideas and writing skills due to overcrowded classrooms.

Innovation: Create project-based learning tutoring centers within wacky branded kid magnets like pirate and super-hero retail shops.

To raise funds, inspire creativity, and advertise programs to the local community, most of centers include a street-front retail store filled with unusual products, entertaining signage and books for sale.

8 Chapters: San Francisco, Seattle, Los Angeles, New York, Ann Arbor, Boston, Chicago, Washington DC

Price

Job site ease of use

DistributorsColor Selection

Mixing ToolsGrade quality

SupplementsContainers

To Be

Disposability / reusability

Prototype

Case Study: Water of Life

Most-Important-Customers: Poor families in Africa and supporters.

Unmet need: Providing life sustaining clean water.

Innovation: Create low cost system using existing technology.

Results: Nearly 100,000 systems provided in the first nine months of operation with over 20,000 new supporters inspired to help.

Without action, the world would still be an idea.Georges F. Doriot

MARKETPOWER

chuck.wall@marketpowergroup.com

twitter @wallnotes

marketpowergroup.com