Jim Collins On Leadership In The Social Sector

Good to Great and the Social Sectors

Jim Collins is considered one of the great business gurus of our time and really made a name for himself with Built to Last : Successful Habits of Visionary Companies, which was on the Businessweek Bestseller List forever), and followed up with Good to Great: Why Some Companies Make the Leap… and Others Don’t.  These two books are a must read for anyone interested in learning more about leadership and management in the business world.More recently, Jim Collins has focused on leadership in the social sector and last year, he published his findings in Good to Great and the Social Sectors: A Monograph to Accompany Good to Great.
WSJ article:

For years, Mr. Collins has maintained that top-flight leaders are defined by a combination of humility and fierce resolve. In his most popular management book, “Good to Great,” published in 2001, Mr. Collins asserted that such leaders “will sell the mills or fire their brother, if that’s what it takes to make the company great.”

Now Mr. Collins is reworking his ideas about how to set goals, build teams and achieve lasting growth. The adjustments are based on 2½ years of studying police departments, symphony orchestras and other “social sector” entities — and most are aimed at nonbusiness leaders. But he argues that some principles apply to corporate bosses, too.

I think this is a must read for any social entrepreneur. Amazon offers Good to Great together with the Monograph for a 40% discount off the cover price.

Coalition Against Hunger: Using Google Maps Mashups To Market Local Soup Kitchens

Coalition Against Hunger
Via Techsoup.

The Coalition Against Hunger is using Google Maps to network charitable food organizations, attract volunteers, and share information with other anti-hunger advocacy groups in New York City. You can find the mashup here. The maps are helpful because local soup kitchens generally have not done a good job of marketing themselves to the public.

“Sometimes soup kitchens can be right across the street from each other, and one won’t know the other exists,” said J.C. Dwyer, the Coalition Against Hunger’s Director of Programs and National Service. He also noted that, ideally, the maps will also educate the public about the severity of New York’s hunger problem and help people identify local soup kitchens where they can get involved.

This mashup is a great example of using new technology to help nonprofit organizations. Dwyer also believes that the mashup is great advertisement in and of itself, which I whole-heartedly agree with.

Charity-Based Affinity Search Engines

After my last post about FreePledge I decided that I needed to do a “charity-based affinity search engine” roundup. Two examples of these are Goodsearch, and Microsoft UK’s Click For A Cause experiment. I’ll start with some definitions and dive right in.

What are charity-based affinity search engines?
Internet search companies that share their paid search revenues with charities and/or non-profit organizations. These engines build a userbase simply by announcing that they share revenues with charities. People who want to support charities will opt to use these search engines over others.

Do these affinity search engines build their technology from scratch?
No, they are typically powered by one of the four major search engine companies (Google, Yahoo, Microsoft, and Ask). Essentially these affinity search engines are “virtual” search engines. Everything is pretty much outsourced except for the marketing and branding.

What do Google, Yahoo, et al get out of it?
Incremental traffic and revenues. Search is a very competitive industry and the players are happy to sign distribution partnerships with companies that can drive incremental revenue. A good commercially-oriented partnership example would be Google’s relationship with AOL. Google recently renewed a contract with AOL to power the search functionality across AOL’s properties. This relationship is suggested to be worth over a billion dollars.

How do these affinity engines make money?
When users click on sponsored search results, advertisers pay a percentage to the primary search engine (Google, Yahoo, Microsoft, Ask). They will in turn offer the affinity engine a percentage of this, which will then be shared with the charities.

So let’s use the example of Goodsearch. I use Goodsearch because I like to support charities. I do a search and click on a sponsored listing. That advertiser whose link I clicked will pay Yahoo (which powers Goodsearch), and Yahoo will share a percentage with Goodsearch, which will share a percentage with a charity. To summarize, its an advertising-supported charity model.

What are the challenges?
These “virtual” search engines’ primary challenge is to grow and sustain a sizeable userbase. Other issues such as click fraud could cause more headaches down the road. This is an interesting space and I’m tracking it closely so I’ll report on any new findings I come across.

Related articles:

CNN Article on Goodsearch: Give to charity just by searching the Web

BBC Article on MS UK’s Click For A Cause: Charity gets cash for web clicks

FreePledge Lets You Donate To Non-Profits While Shopping At Your Favorite Online Retailer

FreePledge
FreePledge is a social venture started by Stanford alumni, students, and affiliates. FreePledge aims to strengthen non-profits by helping them tap into the power of Internet and Technology. The primary offering is an e-commerce platform that leverages marketing programs set up by retailers and turns commissions into donations: each time consumers use FreePledge for their online shopping, a percentage of their purchases is directed as a donation to a chosen charity.

Since its launch in September 2005, FreePledge has attracted more than 40 non-profit organizations, including Palo Alto American Red Cross and California Academy of Sciences. FreePledge was also a semi-finalist at the Stanford Social Entrepreneurship Challenge, a business plan Competition among socially-conscious business concepts.

I had the privilege of interviewing FreePledge founder Jonathan Xu, below is the transcript:

What motivated you to start FreePledge?
I have always strived to build things that would make a big impact. And I have found a great fit in starting a company to help the non-profits last year. It started out with brainstorming ideas on advertising and affiliate marketing. A couple of good ideas came out but we thought it was too small or not innovative. Then the bulb goes on; why not bring affiliate marketing and other innovations to the non-profit sector, where people need them.

What is your biggest challenge?
Our biggest challenge is to focus and deliver something new, innovative, and simply works. Some companies in this space have tried and did mediocre jobs. We believe in delivering truly innovative ideas that can make an impact. Online charity malls have been done before and we took a look at what are out there and decided we can do better. We also plan to offer other new services that have not been tried before and will bring new revenue streams to the non-profits.

How much help did it help to incubate this at Stanford GSB?
Stanford is absolutely the best place to start a technology company, and it is also the best place for social entrepreneurship. We are really lucky to be here and have access to the resources available for our vision that brings technology and non-profit together.

How did you discover affiliate marketing and what were your thoughts leading up to using it as a model for fundraising?
I was quite interested in online e-commerce, affiliate marketing, advertising in general and a couple friends and I were doing a few projects in those areas. We looked at companies like Ebates but we thought most people would not bother with it, as extra $20 rebate isn’t worth the effort of changing our everyday shopping behavior. We thought the impact would be much greater if the affiliate fees can be aggregated towards a bigger goal. At that time Michelle was involved with fundraising for Junior League and she talked to us about how ineffective fundraising events can be. And we thought, hey, fundraising is a bigger thing a lot of people would care about, and people wouldn’t mind 2 or 3 extra clicks to donate $5.

Professor Jim Phills has noted that “Without timely, cost effective, and broad distribution, the remarkable innovations [social entrepreneurs] had engendered would fall short of their potential.” How will you solve the problem of gaining broad distribution for your innovation?

That is a great question. The social sector is incredible diverse and segmented. Distribution builds on trust. We started with just friends and families to reach non-profits and that has been working wonderfully. And we help non-profits to reach their constituents. There are a lot of things in research and we will continuously test them out and see what works.

Are there other social ventures that are doing what you’re doing? If so, what sets you apart?

There were many ventures that offer similar affiliate marketing fundraising service. Many of them went bust. Among a few that survived, there are iGive and GreaterGood. IGive has lost its “social” touch, as they keeps most of the affiliate fees instead of giving them to non-profits; both iGive and GreaterGood have not done anything innovative since they started. A couple of things we do differently include: 50-100% higher donation rates, no account registration required to make the experience super easy, we work with non-profits side by side to promote this new way of giving. And a key differentiator is that we will continue to innovate and bring out new services.

Have you heard of Goodsearch? (Also started by Stanford alum). If so, do you have any thoughts about them?

GoodSearch is a novel idea. We started watching them last year. The idea is incredibly simple. I think their challenge is to scale. Their donation to non-profits is $0.01 per click; they need to get massive number of clicks to make a big impact. A similar challenge that we have is to get people to use our site repeatedly. Going through GoodSearch every time is not that intuitive but they have made great progress with their new search bar.

Any advice for aspiring social entrepreneurs?

Have passion – just do it. Bootstrap if you can, it does not take a big budget to start a big idea.

Using Technology To Enable Social Entrepreneurs

When I started this site, my intention was to promote and support social entrepreneurship the best way I knew how. Given my experience in the internet startup space, bringing my tech/internet expertise to the table was the clearest and most effective path for me to take.

I started with a few ideas, mainly pro bono technology services for local social entrepreneurs. When blogging gained momentum, I let it take its unfettered course.

Why am I reminding you of this?
Well, I want to hark back to my roots for a minute so the next several posts will be technology oriented.
Just giving you guys a heads up. :)

Join the Net Impact / Ethos Walk for Water Challenge 2006

Net Impact Walk for Water Challenge 2006
Join the Net Impact / Ethos
Walk for Water Challenge 2006
www.worldwaterday2006.org

For all of our members in Atlanta, Boston, Detroit, Hartford, Los Angeles, New York City, Philadelphia, San Diego, San Francisco, Seattle, and Washington, DC:

As some of you may know, in 1992, the UN General Assembly designated March 22 as “World Water Day” to draw international attention to the critical lack of clean, safe drinking water worldwide. It is a time when we are encouraged to pause and consider the largest public health issue of our time – the global scarcity of clean water.

Continue reading at www.worldwaterday2006.org

Related posts on Social ROI Blog:
Social ROI » Inefficiencies– The Bottled Water Industry

Related news articles:
Critics rail against ‘stealth’ privatization as World Water Forum opens

Ashoka’s Changemakers Invites Social Entrepreneurs To Tell Their Stories

Ashoka Changemakers
Karin Hillhouse of Ashoka recently left a comment on a previous post that deserves some attention. She introduces us to Ashoka’s new feature on Changemakers– Are You a Changemaker?– which:

…invites changemakers of every stripe anywhere in the world to submit their stories…their projects…for global consideration, impact, policy change, funders’ investment, media attention…on the site.

Each month, a panel of judges selects entries from the “Are You a Changemaker” submissions to be included in a Changemakers Directory of Social Entreprenuers. Visitors to the Web site vote for three of these entries and the top vote-winners become the “Changemakers of the Month.” http://www.changemakers.net/

If you are a social entrepreneur and you want to share your story, head over to Changemakers and fill out this form!

Another Blogroll That Deserves A Shout Out: 4Nonprofits

4Nonprofits is a blog run out of the Wilson Center for Social Entrepreneurship at Pace University here in New York City.

The blog features news and commentary presented by Rob Johnston, (a fellow Yalie, woot!)

I’m adding 4nonprofits to the “blogs I read” section (over on the right —>) and also adding a direct link to the blogroll they’ve put together over there, which lists lots of interesting and relevant blogs.

Check it out if you haven’t yet.

The Economist Surveys Wealth, Philanthropy, and The Rise of the Social Entrepreneur

The Economist magazine has a section in the Feb 25th issue that is a survey on wealth and philantropy (Subscription is required to view the webpage). There is an article included within that survey titled, “The rise of the social entrepreneur” that offers a nice lay of the land of social entrepreneurship. Here is the abstract:

UBS, a Swiss private bank that counts many of the world’s richest people among its clients, is conducting an interesting experiment in Brazil, Mexico and Argentina. It has formed an alliance with Ashoka, a global organisation that identifies and invests in leading social entrepreneurs. The alliance is offering a new prize for social entrepreneurship, which UBS’s Martin Liechti admits is an excuse to bring together two groups of people who might otherwise never meet.…

Social entrepreneurship is a young movement so its hard to get a holistic view of everything that’s going on, but the article does its best.

It mentions Ashoka, Omidyar, Skoll, Schwab Foundation. It gives an overview of what is happening within the various US-based business schools. It also has a list of “Leading Entrepreneurs,” which I can’t figure out how they arrived at.

David Bornstein is well quoted in the article– he wrote a book charting the rise of social entrepreneurship called “How to Change the World: Social Entrepreneurs and the Power of New Ideas.”

Jim Collins is also well quoted. Jim recently wrote “Good to Great and the Social Sectors: A Monograph to Accompany Good to Great

Try and check out the full length article at the Economist. If you are serious about leadership in the social sector, I would also highly recommend reading the Jim Collins monograph, along with his best selling work, Good to Great, to get some background.

Nifty Collection Of Social Entpreneurship Links at The World Bank’s Private Sector Development Blog

The World Bank’s Private Sector Development Blog put together a blogroll (which is basically a list of blogs and their URLs) of various sites that focus on issues in development.  Categories include Aid Effectiveness, Corporate Governance, and Social Entrepreneurship.

There’s a nice collection social entrepreneurship blogs in that blogroll so definitely check it out.

Thanks to Pablo Halkyard and company for adding Social ROI to the PSD blogroll!