7 Steps to create a Collective Impact partnership to deliver Shared Value
Mark Griffin MBE
Using purpose to unlock people's potential - taking them from success to significance. Master Facilitator / Coach / Speaker / Moderator.
I’m in the process of designing a potential partnership that I hope could change the face and future of Rugby in America. It should establish 50,000 players and nearly 4,000 coaches prior to the 2024 Olympics (maybe more). It’s based upon the most scaleable part of Play Rugby USA’s Social Impact program and importantly the philosophy and methodology is designed to provide young people with the skills they need to thrive in life.
If we were a large corporation we could potentially design an affordable service to deliver to educational districts and organizations across the country, that empowered educators and benefited students (socially, emotionally, cognitively & physically) while generating a profit. By doing good andwell, the profit would fuel more impact. Impact could include improved health, improved behavior, reduced conflict, increased educational attainment and, ultimately, graduation and employability. As such, this would be a shared value initiative, defined my Michael Porter as:
generating economic value in a way that also produces value for society
Win-win indeed!
At a conference hosted by Bank of America today, the CEO of MasterCard clearly articulated how they had driven financial inclusion to 360 million families over the last few years and aspire to beat 500 million by 2020. I’m sure they are doing so profitably - as they should be. More financial inclusion means increased social & economic opportunity and contribution, improved per capita productivity, entrepreneurship and purchasing power to name a few. All these features can help reduce poverty. That’s shared value.
However, in the non-profit / NGO or even NGB (National Governing Body) space, we often don’t have the resources (financial, technological, human, informational) to design, invest in and promote our programs at scale and for profit, regardless of how impactful they might be. For us, the only way to deliver this kind of shared value in a scaleable & sustainable way is through a Collective Impact model. This kind of partnership model is driven by collaboration towards a common “shared value” objectives.
Even if I represented a huge corporation, I would still strongly encourage a collective impact approach. I believe it would be more impactful, scaleable and sustainable for every dollar invested and thus more profitable and valuable to the company, long term. I’m sure MasterCard employs a similar approach, encouraging other financial sector companies to add value throughout the supply chain, perhaps engaging local governments in subsidizing access to products and services.
Why collective impact?
Because many services required to solve societal problems are complex. The problems exist due to multiple factors and broad system of inputs and inaction across multiple players. Therefore the solutions need to embrace the key players in a purposeful, redesigned system.
For example, the largest two long-term issues we focus on preventing in our sports-for-good space, are obesity and high school drop outs, which collectively cost society $300bn per year. Players on our field include schools, youth organizations, educational districts, teachers, parents, families, parks departments, youth organizations, NGOs, healthcare & medical companies, academic support and college preparation providers, sport, wellness and nutrition companies, etc, etc. Most of these players exist, play, or compete independently - kind of like a team of soccer players each playing 1 v 1 but with 22 of them on the field all trying to play keep away & score goals. In other words- a chaotic, inefficient and ineffective system where no-one is incentivized to work together.
Thus, our partnership needs to simplify and redesign this system, and invest in the components (players) that can drive shared value.
So, as my first June post in my thinking, feeling, saying, doing series, I hope the framework I have outlined below, demonstrates how I’m thinking about-
7 steps to create a Collective Impact partnership to drive Shared Value:
- Simplify the system: what are the most critical elements of the system, and how do they connect to achieve the system’s purpose? What are bottlenecks that need to be overcome, how do the components interact and what leverage points exist that can drive more from less? (For more on systems thinking see my March article)
- Define success, design solutions: assuming you have defined the purpose of the partnership, what are the desired outcomes and how would you measure success? What are the ideal ways to deliver this success? How can we grow, accelerate and sustain this success?
- Identify & secure resources: i) what resources do you need to deliver these solutions- financial, technological, informational, human? For each of these areas and based upon the success & solutions criteria from #2 above: what’s the best resource mix & how do they balance over time as the partnership development cycle evolves? What specific contribution would each resource provide throughout the cycle? How do they compliment and support each other? ii) What are the potential sources for each of these resources? What’s the lowest hanging fruit? What are the minimum resources we need of each to get started that provide enough of a runway to prove concept?
- Measure & communicate impact: in any shared value and collective impact partnership you need to measure & communicate impact across multiple stakeholders. Ultimately, what specific returns (whether social, environmental, economic) are being generated by the resources and investment that have been applied? What systems and training do you need to provide in order for this impact to be measured as a core component to the partnership delivery? How often do you measure various impact components? How should this impact data be used to inform: ongoing improvement of the services and partnership; reinforcing a culture of measuring impact; and in securing additional resources?
- Drive & Share Value: if shared value simplified means doing good and doing well, that value needs to be distributed among key stakeholders and may mean different things for different groups. What returns do investors receive, what cost savings may a public entity accrue, how many jobs might be created for an excluded population? The value of course is dependent upon the project and partnership but ultimately the key is three fold: i) that value is distributed to all; and ii) that value distributed is greater than it would be from each entity operating independently with the same (or equivalent) resources and contribution; iii) that a person or entity exists at the core, to coordinate and drive forward the partnership and thus, associated value.
- Lever, refine & reinvest in what works: steps 1-5 enable you to prove (or otherwise) the shared value of a collective impact model. Assuming it is working, the beauty of the collective impact model is leverage. Essentially each resource contributed is, in some way, matched by others, thus increasing its efficiency and returns over what would be possible independently. Improving the resource mix and tweaking certain elements and feedback loops within the system can enable us to increase returns with no additional resource. Then, depending upon the purpose, scope and capacity within the partnership system, adding more resources - specifically those required to fuel shared value returns, can further accelerate and or increase impact.
- Replicate and / or scale: lastly, depending again on the purpose, scope and capacity within the partnership, once the partnership is operating at optimal efficiency it may be desirable to replicate the model and / or scale it. Replication is recreating the essence of the model for a different location, market, or set of stakeholders, whereas scale is investing additional resources within the partnership to expand the model's reach directly.
This framework is complimented by my basic model of collaboration, which can provides a blueprint for designing and operating any kind of collaborative project. The summary of the model is here and the last of 4 blog posts breaking down each component part can be found here. There are also some well documented collective impact models available online. The above is just how I'm approaching it.
In short: Shared Value is the most effective way corporations can independently impact society. It has evolved from philanthropy and through corporate social responsibility. Collective Impact combined with Shared Value, I believe, is the ultimate way to positively impact society and benefit all involved, long-term. It’s not easy to do but hopefully the above framework combined with other sighted resources, helps simplify the process. If you’re exploring a partnership with multiple entities, please test it out and let me know how you get on and what may be missing. I can assure you, I’ll be doing the same!
For 2018 I’m writing about things I’m thinking, feeling, saying and doing - and why - whether in the present or from the past. This makes my writing real and relevant (to me at least) as a way to refine and process my thoughts. I hope also it’s an easy, engaging & meaningful resource for you that could even save you some time & energy if you’re in a similar situation. Professionally, I'm working towards achieving long-term sustainable impact through Play Rugby USA & Vita Sports Partners. Personally to be free to be me - my best self. The motivation for all my endeavors is to inspire people to live life with vitality & purpose. Please reach out to learn more or to get involved.
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