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1 KPPI #450-LEADING MISSION DRIVEN ENTERPRISES WINTER QT-2017 EVANSTON CAMPUS Monday nights 6:30-9:30 p.m. lst class is MANDATORY for Friday, January 6 th make-up for 1/2/17 Professor Don Haider (4236 Jacobs) Professor Liz Howard (4237 Jacobs) d-haider@kellogg.northwestern.edu (1-8701) ; liz-howard@kellogg.northwestern.edu (1-4505) LEADING MISSION DRIVEN ENTERPRISES (LMDE) is a 10 week course that combines 5 weeks of classroom instruction and preparation followed by 5 weeks of field-based, learning projects. This is an experiential learning course for students interested in leading organizations driven by social missions which operate largely, but not exclusively, in the nonprofit sphere in the United States and in the nongovernmental space (neither government nor business) internationally. Because nonprofit status in the U.S. is a tax designation (not a business model, mission driven enterprises span a spectrum of organizational forms ranging from purely charitable nonprofits to mixed social enterprises (L3C/B-Corp) to shared value businesses that span boundaries between sectors (public, private and nonprofit). As such, leaders of these enterprises face fundamental decisions in starting, growing and scaling their operations which will be the focus of our initial classes, cases and invited practitioner speakers. Classes focus on the following: Choice of Enterprise Models and Structures (Why be a nonprofit enterprise, and option mix); Choice of Financial Models Sustainable options from charitable to social capital markets; Choice of Growth Strategies Scale, restructure (partner to merge), federate, branch or network Choice of Performance Metrics How measure outcomes and sell/position impacts; Leadership Perspectives on Making these critical Enterprise Decisions In the second part of the course, students function as 3-5 member teams engaged in group projects. You will be challenged to apply tools, concepts and ideas generated in earlier classes to specific projects. These can be develop by your team on its own or projects provided by Experiential Learning Lab which have been screened for this class by your instructors. Prior year projects included: How a Chicago high school became more competitive in attracting/retaining students; How a suburban-based summer film festival grew its arts audience base; How an established inter-faith youth organization decided to scale its campus chapters; How a nonprofit restaurant providing mainstream employment opportunities for ex-offenders could become financially sustainable; How to sell a subsidized construction site for a new college prep high school to the public; How to make a traditional religious fundraising campaign relevant to a changing demographic base.
2 Class Schedule: Class, date, topic and invited speaker 1. 1/6 Friday -lst week Make-Up class ( MANDTORY) class overview; projects and introductions Discussion of mission driven enterprise choices (opportunities/constraints of designated organizational forms) and how think about and to approach such choices. Students are introduced to group projects for possible selection and are asked to form 3-5 member project groups around these projects (or develop projects on their own). 2. 1/9 Monday Enterprise Financing Models and Strategy Speaker: Illinois Facilities Fund-Community Development Banking and introduction to Chicago s Social Impact Bonds 3. Week of January 16 (MLK Class Make-up) Meet with Professor on Group Projects. Teams are asked to schedule meeting times to select and scope final projects. 4. 1/23 Enterprise Growth and Scaling Speakers: John Finnegan, Coordinator Financing for Development, U.S. AID, Wash D.C. or One Acre Fund, Chair 5. 1/30 Performance Metrics Measuring Success Speakers: Brooks Wiseman, Blessings in A Backpack or Pranav Kothari, Metrics Consultant 6. 2/ 6 Mission Driven Enterprise Leaders Panel Discussion on Critical Decisions Speakers: Christine Poorman, ED of College Possible (formerly head of Network for Teaching Entrepreneurship) Art Mollenhauer, President, Big Brother/Big Sisters of Metro Chicago; John Martin, Management Consultant, former Board Chair, Boundless Reader Classes #7-9, February 7- March 1 will involve field based project research where students groups are expected to meet with your professor on weekly updates and progress reports 10. 3/6 Monday Final Class Summary and project presentations. Student groups are encouraged to ask project participants (agency heads, CEO s or board members) to attend final presentations. Week #1 January 6 th (Make up class Friday) Enterprise Choices
3 Course Overview, Project Discussion and Class Schedule What is a Nonprofit (501-c-3)? Tax exemption opportunities/constraints vs NGO (non U.S. Nonprofit sector growth, milestone and issues Rise of social enterprises & mission driven organizations: options and choices Exercises: How think about solving big societal problems who does what? Readings: J. Austin et al, Capitalizing on Convergence, Stanford Social Innovation Review, Winter, 2007, j. Fruchterman, For Love or Lucre, Stanford Social Innovation Review, Spring, 2011, R. McCambridge, Hybrids, Hybridity and Hype, The Nonprofit Quarterly, Spring, 2014, Battilana, Lee, Walker and Dorsey, In Search of the Hybrid Ideal, Stanford Social Innovation Review, Summer, 2012, R. Cohen, Big Society Capital Markets Paradigm Shift, Stanford Social Innovation Review, Summer, 2012, Week #2 January 9 Enterprise Financing Giving USA 2015: Giving/Recipients How are Nonprofit/Charitable Enterprises Financed Efficient Markets and Financing Social Enterprises Social Entrepreneurs Expanding Social Capital Markets: New donors/investors/arrangements/social media Funding Models Discussion Readings: V> Rangan and L. Chase, The Big Payoff of Pay-for-Success, Stanford Social Innovation Review, Fall, 2015, Kim, Perreault and Foster, Finding Your Funding Model, Stanford Social Innovation Review, Fall, 2011, R. Calia and L. Msall, The Chicago Experience: A 3P List, Government Finance Review, June, 2011, Foster, Kim and Christiansen, Ten Nonprofit Funding Models, Stanford Social Innovation Review, Spring, 2009, Week #3 (Jan 16-20) Meetings with Professor Haider/Howard on Group Projects
4 Week #4 Jan 23 Enterprise Growth and Scaling How do Social Enterprises grow (vs traditional business)? EXERCISE: Boys and Girls $1.1 billion? Going to Scale-Bradach Readings Replication of social innovations Growth Models: Federations, branches, networks, and restructurings Readings J. Bradach, Replicating Social Programs, Stanford Social Innovation Review, Spring 2003, j. Bradach, Scaling Impact Stanford Social Innovation Review, Summer, 2010, D. LaPiana, Merging Wisely, Stanford Social Innovation Review, Spring 2010, Waddell, McLachlan, and Detoni, Learning and Transformative networks, The Nonprofit Quarterly, Fall/Winter, 2013, Increasing Effectiveness in Global NGO Networks Profile of a a successful scaled organization Community in Schools--See center/resourcedetail.aspx?id=426&resource=articles Week #4 January 30 Performance Metrics-Measuring Success What do mission driven organizations produce? What is success? Why Measure? What and How? Theory of Change to Success Equations Exercise: We do good things, But. Readings: Meehan and Jonker, The Rise of Social Capital Market Intermediaries, Stanford Social Innovation Review, Winter, 2012, Roundtable on Impact t Investing, Stanford Social Innovation Review, Summer, 2012, P. Brest, A Decade of Outcome-Oriented Philanthropy, Stanford Social Innovation Review, Spring, 2012, J. Kania and M. Kramer, Collective Impact, Stanford Social Innovation Review, Winter, 2012, P. Kothari, Fulfilling Mission Through Evaluation and Performance Measurement Kothari notes.
5 Week #6 February 6 Mission Driven Enterprise Leaders Panel Discussion and Cases Three Mission Driven Enterprise leaders discuss their organizations and the critical decisions they made. Readings D. Haider, Case: Big Brothers Big Sisters of Metro Chicago D. Haider Case: Merger of Boundless Reader and Working In Schools Weeks of February 13, 20 and 27 given to field projects. Weekly conference sessions of groups with Professors Haider/Howard Week of March 6 Monday 6:30-9:30 Final Project Presentations and Course Summary
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