scaling for social impact: exploring strategies for spreading social innovations

Scaling for Social Impact: Scaling for Social Impact: Exploring Strategies for Exploring Strategies for

Spreading Social Spreading Social InnovationsInnovations

J. Gregory DeesBeth Battle Anderson

Center for the Advancement of Social EntrepreneurshipDuke University

The Fuqua School of Business

The Challenge of Scaling OutThe Challenge of Scaling Out

spreading social sector innovations spreading social sector innovations into new geographic locations in into new geographic locations in order to achieve greater impactorder to achieve greater impact

Scaling Out ProcessScaling Out Process

Step 1:

Assess the Opportunity:

Should we consider

scaling out at this time?

Step 2:

Define the Innovation:

Do we have anything

truly worthy of scaling

out?

Step 3:

Identify Promising

Paths:

Can we scale out our

innovation effectively?

Step 4:

Develop an Action Plan:

What steps do we need to

take to pursue our

chosen path?

yes yes yes

Scale Deep

Enhance Readiness

Test and Refine

Find a Partner

Enhance Readiness

no nono

Step 1:Step 1:Assessing the OpportunityAssessing the Opportunity

Four dimensions of opportunityFour dimensions of opportunity ImpactImpact: Do you have anything worth : Do you have anything worth

scaling out?scaling out? NeedNeed: Is there significant unmet or : Is there significant unmet or

poorly met need elsewhere?poorly met need elsewhere? OrganizationOrganization: Do you have sufficient : Do you have sufficient

organizational support and stability?organizational support and stability? TimingTiming: Is this a particularly good time : Is this a particularly good time

for exploring scale seriously?for exploring scale seriously?

Potential TensionPotential Tension

IMPACT

“Scale Out”: Spread impact to new communities

NEED in other communities

NEED in home community

“Scale Deep”: Increase impact in home community

If there is need at home and in other communities, how do we decide where to focus our efforts –

scaling deep or scaling out?

Can we do both well?

Options If You Decide to Scale OutOptions If You Decide to Scale Out

How: Mechanisms for Spreading ImpactHow: Mechanisms for Spreading Impact

DisseminationDissemination AffiliationAffiliation BranchingBranching

Only With TAOnly With TA Loose Moderate Loose Moderate TightTight

OrganizationOrganization

ProgramProgram

PrinciplesPrinciples

Wh

at:

D

efi

nin

g t

he S

ocia

l In

novati

on

Step 2:Step 2:Defining the InnovationDefining the Innovation

A process for determining what you have A process for determining what you have that is worth scaling that is worth scaling

Understand the Understand the different formsdifferent forms Articulate your Articulate your social impact theorysocial impact theory

• Assess its Assess its robustnessrobustness• Identify the Identify the core elementscore elements

DefineDefine the innovation the innovation • Assess its Assess its transferabilitytransferability• ReviseRevise your definition as necessary your definition as necessary

Form and SpecificityForm and Specificity

OrganizationOrganization Structure, Systems, CultureStructure, Systems, Culture

ProgramProgram Integrated Set of ActivitiesIntegrated Set of Activities

PrinciplesPrinciples Guidelines and/or ValuesGuidelines and/or Values

Low High

Degree of Specificity

Form

of

Inn

ovati

on

Defining Form and SpecificityDefining Form and Specificity

Articulate Social Impact

Theory

Identify Core Elements

Assess for Robustness

Assess Transferability

Step 3: Identify a Promising Path

Define Form and Specificity

no

yes

high

low

Defining your innovation will most likely be an iterative process as you test and refine your social impact theory and the transferability of

different forms and degrees of specificity.

Social Impact TheorySocial Impact TheoryA social impact theory describes the path A social impact theory describes the path

from what you do to the ultimate impact from what you do to the ultimate impact you intend to create.you intend to create.

Programs

ActivitiesIntermediate

Outcomes

IntendedImpact

Assumptions Assumptions Assumptions

Environment

Principles

Organization

Articulating a Social Impact TheoryArticulating a Social Impact Theory

• OrganizationOrganization: What are the structures, systems, staffing : What are the structures, systems, staffing policies, financial strategies, and cultural factors that enable policies, financial strategies, and cultural factors that enable you to operate? you to operate?

• PrinciplesPrinciples: What core beliefs drive your approach? What : What core beliefs drive your approach? What values and guidelines are most central to your success?values and guidelines are most central to your success?

• ProgramsPrograms: How are your activities organized into coherent : How are your activities organized into coherent integrated combinations that work to achieve your objectives? integrated combinations that work to achieve your objectives?

• ActivitiesActivities: What do you do to produce results? What are the : What do you do to produce results? What are the specific elements of your programs? How must these be specific elements of your programs? How must these be implemented to be successful?implemented to be successful?

• Intermediate outcomesIntermediate outcomes: What measurable, short-term : What measurable, short-term impact results from your activities? How and why do they lead impact results from your activities? How and why do they lead to long-term impact?to long-term impact?

• Intended impactIntended impact: What is the ultimate goal of your approach?: What is the ultimate goal of your approach?

Identifying the CoreIdentifying the Core

With a robust social impact theory you can With a robust social impact theory you can identify the identify the core elementscore elements by asking by asking• What makes this approach distinctive?What makes this approach distinctive?• Which elements are essential for achieving Which elements are essential for achieving

the intended impact?the intended impact?• Which elements play crucial supporting roles?Which elements play crucial supporting roles?• Which elements could be changed without Which elements could be changed without

doing much harm to the intended impact?doing much harm to the intended impact?

It is helpful to describe the core elements It is helpful to describe the core elements as generally as possible as generally as possible

First Cut at Form and SpecificityFirst Cut at Form and Specificity

Based on the core elements of your Based on the core elements of your social impact theory, you cansocial impact theory, you can

Select a Select a formform (organization, program, (organization, program, or principles) thator principles) that• Captures all crucial core elementsCaptures all crucial core elements• Includes few non-essentialsIncludes few non-essentials

Choose a degree of Choose a degree of specificityspecificity that that• Enhances the chances of successful Enhances the chances of successful

implementationimplementation

Determining TransferabilityDetermining TransferabilityTwo elements determine the transferability of Two elements determine the transferability of

your innovationyour innovation

““Universal” ApplicabilityUniversal” Applicability• Will your core elements be as effective in different Will your core elements be as effective in different

communities/contexts?communities/contexts?• Will your crucial assumptions and key environmental Will your crucial assumptions and key environmental

conditions hold in different communities/contexts?conditions hold in different communities/contexts?

Ease of AdoptionEase of Adoption by Others by Others• Is the core of your social impact theory easily Is the core of your social impact theory easily

understood by others? understood by others? • Could this core be implemented and appropriately Could this core be implemented and appropriately

adapted by others with minimal training?adapted by others with minimal training?• Is it dependent on unusually qualified individuals or Is it dependent on unusually qualified individuals or

rare skill sets? rare skill sets?

TransferabilityTransferability

PotentiallyPotentially

Transferable with Transferable with Significant EffortSignificant Effort

Highly Highly TransferableTransferable

Very Difficult to Transfer

Transferable Transferable

But Only to Select But Only to Select LocationsLocations

Ease of AdoptionLow High

“Un

ivers

al”

Ap

plic

ab

ility

Low

High

Increasing Transferability?Increasing Transferability?

If your first cut at a form and level of If your first cut at a form and level of specificity is specificity is highly transferablehighly transferable, then , then you can move on to Identifying a you can move on to Identifying a Promising PathPromising Path

If it is If it is not very transferablenot very transferable, you should , you should consider revising the form and consider revising the form and specificity to make it more specificity to make it more transferable while preserving the transferable while preserving the core of your innovation. core of your innovation.

Step 3:Step 3:Identifying Promising PathsIdentifying Promising Paths

How can we scale our impact in the most How can we scale our impact in the most effective and timely manner?effective and timely manner?

Understand the different mechanisms Understand the different mechanisms Assess the available pathsAssess the available paths

• Assess the costs and benefits of central Assess the costs and benefits of central coordinationcoordination

• Evaluate the different distribution channelsEvaluate the different distribution channels Determine your organization’s readiness Determine your organization’s readiness

to pursue your chosen path(s)to pursue your chosen path(s)• Revise your path if necessaryRevise your path if necessary

Range of Options for Scaling an Range of Options for Scaling an InnovationInnovation

Mechanisms for Spreading Impact

Dissemination Affiliation Branching

Only With TA Loose Moderate Tight

New organizations

Existing organizations

Existing networks or multi-site organizations

Local D

istr

ibu

tion

Ch

an

nels

Identifying Promising PathsIdentifying Promising Paths

Assess Costs and Benefits of Coordination

Determine Readiness

Evaluate Channel

Tradeoffs

Five R’s

Receptivity

Readiness

Resources

Risks

Returns

Mechanisms: Costs and Benefits of Mechanisms: Costs and Benefits of CoordinationCoordination

Moving to the right on the matrix creates…

Greater Resource Requirements from the Central Organization

Increasing Organizational Risks

Higher Threshold for Organizational Readiness

Why would you ever move in this direction?


Drivers of Greater Central Drivers of Greater Central CoordinationCoordination

Moving to the right on the matrix is appropriate when…

Low Receptivity Exists Despite Need

High Risks to Society of Incorrect Implementation

Potential for Significant Returns from Coordination


Evaluating ReceptivityEvaluating Receptivity

Capitalize on Capitalize on Demand by Demand by

Transferring with Transferring with Significant Significant

CoordinationCoordination

High Receptivity – High Receptivity – Requires Least Requires Least CoordinationCoordination

Low Receptivity – Low Receptivity – Requires Most Requires Most CoordinationCoordination

Looser Mechanisms Looser Mechanisms Possible with Efforts Possible with Efforts

to Build Demandto Build Demand

Transferability of InnovationLow High

Low

High

Dem

and

in

New

Mark

ets

Evaluating RisksEvaluating Risks

Risks to Society

Risks to your Organization

Is your innovation difficult to implement? What are the risks of incorrect implementation?

The risk of incorrect implementation should decline as you move towards greater central coordination, but the

organizational risks increase.

Evaluating ReturnsEvaluating Returns

ManagingQuality

FosteringLearning

CapturingEconomies

BuildingBrand

GREATERIMPACT?

Transferring Intangibles

Capturing Economies

Fostering Learning

Managing Quality

Building Brand

GREATER IMPACT?

How could a strong brand be valuable? Could it facilitate faster adoption? Attract resources? Provide clarity to potential clients?

How critical to your social impact theory are intangible elements such as culture, tacit knowledge?

What economies of scale or size might you be able to capture?

How important is ongoing learning and innovation in your model? Are you still testing and refining? How can you assure learning is shared across locations?

How great is the need for quality control? How complex is your innovation? How high are the risks of implementation mistakes? How costly could they be?

Will coordination on any of the following dimensions produce greater impact?

Coordination: SummaryCoordination: Summary Dissemination or looser forms of affiliation Dissemination or looser forms of affiliation

may be preferable when may be preferable when • Receptivity is highReceptivity is high• Risks of incorrect implementation are low Risks of incorrect implementation are low • Potential returns from brand, quality control, Potential returns from brand, quality control,

learning, scale economies, and transferring learning, scale economies, and transferring intangibles are lowintangibles are low

• Local “ownership” is desired and valuableLocal “ownership” is desired and valuable In other instances, tighter affiliation or In other instances, tighter affiliation or

branching may dominatebranching may dominate

Potential Trade-OffsPotential Trade-Offs

Tight affiliation offers the benefits of Tight affiliation offers the benefits of greater coordination, but it has a few greater coordination, but it has a few disadvantages:disadvantages:

• Potentially slower expansion Potentially slower expansion

• Greater costs for the central officeGreater costs for the central office

• Increased liability for the central officeIncreased liability for the central office

Channels: New vs. Existing SitesChannels: New vs. Existing SitesBenefits Challenges

New Local Organizations

• Fosters entrepreneurship• Exclusive focus• Easier for an organizational model or radical innovation

• Demand must be sufficient to attract resources• Potentially slower pace of expansion

Existing Local Organizations

• Potentially faster pace• Reduces resource needs – lower start-up costs due to existing infrastructure, financial/ human resources relationships, clients • Track record of success

• May not be host organization’s top priority• May be difficult to integrate cultures and operating procedures• Potential resistance from board and staff• Host organization may dilute program and brand

Existing Network or Multi-Site Organizations

Same as above plus •Potentially even faster pace• Capitalize on experience managing across locations• Lower monitoring and overhead costs• Potentially established brand

Same as above plus • May be required to give up even more control• May be difficult to identify networks/ multi-site organizations with complementary services

New vs. Existing Sites: SummaryNew vs. Existing Sites: Summary

Balance Trade-Offs between speed, Balance Trade-Offs between speed, resource requirements, and benefits of resource requirements, and benefits of coordinationcoordination

New Organizations

Existing Organizations

Existing Networks/Multi-

Site Organizations

Faster Expansion

Lower Start-Up Costs

Track Record

Greater Control

Fosters Innovation

More Focus

Revisiting the 5 R’sRevisiting the 5 R’s High ReceptivityHigh Receptivity makes dissemination or loose makes dissemination or loose

affiliation through either new or existing organizations affiliation through either new or existing organizations more feasiblemore feasible

High RisksHigh Risks to society drive towards the slower to society drive towards the slower approaches of tight affiliation or branching through new approaches of tight affiliation or branching through new organizationsorganizations

High ReturnsHigh Returns from coordination can best be captured from coordination can best be captured by tight affiliation or branching through new by tight affiliation or branching through new organizationsorganizations

High Resource AvailabilityHigh Resource Availability makes tighter makes tighter coordination and development of new sites possiblecoordination and development of new sites possible

What about What about ReadinessReadiness??

Identifying Promising Paths: ReadinessIdentifying Promising Paths: Readiness

Assess each promising path’s fit with:Assess each promising path’s fit with: Your organization’s missionYour organization’s mission Your organizational leadership’s willYour organizational leadership’s will Your organization’s desire for control Your organization’s desire for control Your organization’s ability to mobilize the Your organization’s ability to mobilize the

necessary skills and resourcesnecessary skills and resources

ANDAND The stage of your innovation (need and The stage of your innovation (need and

ability to test and refine)ability to test and refine)

Not Ready? Not Ready?

What if you are not ready to pursue the What if you are not ready to pursue the most promising paths?most promising paths?

You can:You can:

• Get ready by taking steps to position your Get ready by taking steps to position your organization for a promising scaling path organization for a promising scaling path

• Find a scaling partner who is ready or who Find a scaling partner who is ready or who compensates for your gaps compensates for your gaps

• Spin-off an organization specifically to explore Spin-off an organization specifically to explore scaling, with a mission, staff, and board scaling, with a mission, staff, and board recruited for that purposerecruited for that purpose