Jason Saul on Selling Your Impact - From Cutting Edge Collaboration, Jan 25th and 26th, 2012

Selling Your Impact

Central Appalachia Region
Cross-Sector Partnership Workshop
January 26, 2012

Why So Expensive?

Cost Per $100 Raised
$25

$20

$15

$10

$
$5

$0
Obama McCain Corporations Nonprofits
Central Appalachia Cross-Sector Partnership Workshop
2
© 2012 Mission Measurement, LLC.

We Have No Leverage

3

Charity is Declining

For the second year in a row,
philanthropy has seen the
deepest decline ever
recorded.

Contributions to foundations
fell 8% in 2009, following an
almost 20% drop the year
before.

4

Where We Are Today

5

Business Model for Charity in Jeopardy

September 23, 2011

“Obama Bill Scrambles Charities”

6

Jobs is the New Philanthropy

October 28, 2011

“Are Companies Responsible for Creating Jobs? “

7

CSR Has Only One Bottom Line

June 14, 2011

“To Be Good Citizens, Report Says, Companies Should
Just Focus on Bottom Line”

8
http://www.nytimes.com/2011/06/15/business/15charity.html

Social Innovation Can Take Many Forms

October 21, 2011

“For
“F some of th world’s poor hope comes via design”
f the ld’ h i d i ”

9
http://www.nytimes.com/2011/10/23/arts/design/for-some-of-the-worlds-poor-hope-comes-via-design.html?ref=todayspaper

New Models at the Intersection

October 12, 2011

“New Companies Combine Profit and Charity”

10

A New Generation of CSR

CSR 3.0

CSR 2.0
Social
Innovation
CSR 1.0 Strategic
Philanthropy

Charity

Accountability Business Value

11

Today, It’s All About Impact and Value

Headache Medicine Low Prices Website
A Pain Reliever A Better Life “The power to make the
world more open and
connected”

12

Social Innovation Examples

13

14

New Sources of Funding

The Independent Sector The Social Capital Market

$200 Billion $6 Trillion

$100 Billion
carve-out for
churches

15

A new set of stakeholders

Independent Sector: Social Capital Market:
Philanthropists Impact Buyers

Corporate
Beneficiaries Partners

Upstream Beneficiaries
Foundations Board “Consumers” that can pay

Social
S i l Shared
Benefit Value

Service Social
Government Providers Investors
Donors

16

Impact buyers: what’s in it for them?

Sees social and
business value

Corporate
Partners
Relies on outcomes
to create economic Values the personal
value return on investment

“Consumers” that can pay
High Value
Benefit

Service Social
Providers Investors

Sees an opportunity Allocates resources
to improve services to “buy” certain
offerings outcomes.

17

Impact buyers

Buyer Description Examples

An outcomes-driven funder who has allocated a
Social
Investors specified amount of funding specifically to
"purchase " a specific set of results.

An individual or organization who consumes your
Beneficiaries
that
th t can pay products or services and is able to pay for benefits
received.

An organization that relies on your outcomes to
Service
Providers enhance its service offering or achieve its own
g
business objectives.

An individual or organization that relies on social
Upstream
“Consumers”
Consumers outcomes produced earlier in the value chain to
generate desired outcomes or income.

Companies that require certain social change in
Corporate
Partners order to create direct economic value for the
business.
b i

18

New realities

1. Social outcomes now have economic value

2. It's okay to expect an economic return from doing good

3. Not all outcomes are created equal

19

High-value outcomes

High
Strategic Philanthropy High-Value Outcomes

Affinity-based appeal to Evidence-based appeal to
individuals & foundations impact buyers
alue
Social Va

Charity Business Income

Emotional appeal to Unrelated corporate
individuals (
(cause) marketing
) g
Low
w

Economic Value
Low
L Economic Value High
Hi h

20

Change the conversation

OUR NEED TO SELL THEIR NEED TO BUY
Case for Support Business Case

• Our approach, p g
pp , program • Their need or pain
p
and services
• The value you can offer
• Our impact them
• O accomplishments
Our li h t • E id
Evidence th t you can
that
meet their need

It’s not about telling our story, it’s about showing our value

21

The Formula

Capture Your Market Sell
Impact Your Impact Your Impact

Engage Identify the
stakeholders “impact
Build the
to develop buyers” who
business case
your inventory value your
for current and
of outcomes, outcomes,
new investors
assets and assets and
capabilities capabilities

22

Key Questions

• What does this new market mean for us?
• What outcomes can we “sell”?
sell ?
• Where can we create the most leverage?

23

Sell Your Impact
Ronald McDonald House Charities Example

Children & Families

RMHC Chapters
Owner/Operators

Suppliers
McDonald’s
Corporation

Grantees
Hospitals

Donors
24

Sell Your Impact
Example: Value Propositions

Outcome or Shared Impact
Non Profit Need/Pain
Value Value Buyer

Enable family Improved Increase bed
centered patient results turnover
care and shorter
d h t improves
i
hospital stays revenue

Improve Increase
brand trust customer Drive sales
revisit intent

25

Sell Your Impact
Free the Children Example

Youth Participants

Schools & School
Boards

Corporate Funders

Funders

Overseas
Communities
Teachers

Parents

26

Sell Your Impact
Example: Value Propositions

Outcome or Shared Impact
Non Profit Need/Pain
Value Value Buyer

Improve student Character
Improve student
engagement education
engagement and
and success curriculum
deliver character
d li h t
through social mandates &
education
Free the action student
engagement
Children

Increase
Activate youth
employee Employee
p y
and their
engagement & engagement
families
connection and access to
through social
with youth new markets
action
market

27

Break

28

Exercise: Overview

Capture Your Market Sell
Impact Your Impact Your Impact

Engage Identify the
stakeholders “impact
Build the
to develop buyers” who
business case
your inventory value your
for current and
of outcomes, outcomes,
new investors
assets and assets and
capabilities capabilities

29

Round 1: Capture Your Impact
Discussion: What Outcomes Do We Produce? 30 mins

1. What is unique and different about the region? About each of our
organizations?

2. What valuable resources or capabilities do we bring to bear?

3. What social outcomes do we strive to achieve?

4. Which of these outcomes are most important and valuable to business?

Change in Status
g ROI Systemic Change
y g

Behavior Improvement Action

Attitude Adoption Visibility

Knowledge Touch points Engagement

Awareness Efforts Outreach

30

Round 1: Capture Your Impact
Notes: Success Equation Exercise 30 mins

High Value Outcomes Impact
What changes in status, behavior or condition most directly influence “D”? What are we ultimately
trying to accomplish?

A + B + C = D
Performance
Measures
How do we
measure progress
toward our
outcomes?

Key Strategies
Which programs or
activities will drive
results?

31

SUCCESS EQUATION: EXAMPLE

Priority Outcomes Impact

Build capacity to Improve job Improve Family
Increase Savings
manage personal readiness and Financial
& Assets
finances retention Stability

A + B + C = D
# clients who achieve # of clients who # of clients who
financial literacy become job-ready become banked

# clients who become # of clients placed in
Client savings rate Performance
financially low-risk jobs
Measures
# of clients who retain
jobs for 90 days or
more

32

Round 2: Market Your Impact
Discussion: Who Values Our Outcomes? 30 mins

1. Who directly benefits from the
outcomes we produce?
Corporate
p
2. What if our organization(s) or Partners

efforts did not exist? Who would
care?
3. Who is willing to pay for our “Consumers” that can pay
Shared
outcomes?
Value
4.
4 Who is in pain because they’re
they re
not getting what we produce?
Service Social
5. Who has a financial incentive to Providers Investors

help ?
h l us?

33

Stakeholder Engagement

• What are the key business objectives of your company? (Potential
categories to prompt if needed: Growth, Innovation, Products,
Employees, etc.)
Employees etc )

• What are the key challenges you face as you work to meet your
business goals and objectives?
g j

• What changes or outcomes will help you address these challenges?

• How can we help you produce these outcomes?

34

What is our Shared Value?

Your Asset / High Value Shared Impact
Need/Pain
Capability Outcomes Value Buyer

35

Round 3: Sell Your Impact
What is Your Business Case?

Impact Buyer:
Need to Buy
What is their pain point or
need?

Value Proposition
How can we solve their pain
p
point or need?

Track Record
What i
Wh t is our evidence of
id f
success?

36

The 7 Immutable Laws of Selling Your Impact

1. Go through the front door, not the back door.

2. Always use value pricing, not cost-plus

3. Know your customer (
y (and speak their language).
p g g )

4. Sell painkillers, not vitamins.

5. Sell outcomes, not programs.

6. Don’t oversell.

7. Don’t waste time on idiosyncratic funders.

37

Where We Go From Here

• Articulate your value

• Test with impact buyers

• Develop business case

• Innovate (as needed)

• Leverage the engine, not the
fumes

38

Extra Slides

39

Mission Measurement Overview
Our Mission Thought Capital
MM increases social impact by helping our clients use
measurement to improve performance, demonstrate
p p
results, and attract resources.

Corporate Nonprofit Public Sector

• Asset building • International development
• College access • Nutrition and physical fitness
expertise

• Corporate social responsibility • Policy change
• Early childhood education • Scientific research
Areas of e

• Emerging markets • School reform/ transformation
• Environmental strategy • Sustainability Initiatives
• Health care access/ delivery • Workers' rights
• HIV/AIDS prevention
/ p • p
Youth development

40

Mission Measurement Overview: Our Clients

41

Jason Saul on Selling Your Impact - From Cutting Edge Collaboration, Jan 25th and 26th, 2012

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