Faculty
Professor John H. Vogel Jr
Objectives
There has been a worldwide explosion of entrepreneurial activities by organizations whose primary focus is on improving the health, education and well being of individuals and communities. Most of this activity in what we are calling the ‘social sector’ has been undertaken by nongovernmental organizations (NGOs) or nonprofit organizations. Nonprofit organizations in the United States generate revenues greater than the gross domestic product of Brazil, Russia or Australia. In recent years, for profit corporations have gotten more involved in the social sector either directly or in partnership with non profit organizations. This course will look at these different approaches to solving social problems as well as how business people can make a meaningful contribution, especially as board members and consultants.
For both for profit and nonprofit organizations working in the social sector, financial pressures have increased. Costs for providing goods and services have grown and social problems have increased in intensity and complexity. At the same time, government subsidies have decreased and private donations and grants have not made up the difference. Consequently, most social enterprises are searching for new ways to control costs, improve effectiveness, and increase revenues.
This course will focus on the tools and skills required to launch and grow an organization in the social sector. In particular, we will discuss the challenges of taking an organization and an effective program to scale. Because of the nature of the funding, all but the largest organizations rely on an entrepreneurial style of management. During this course you will meet some outstanding social entrepreneurs who are struggling to meet important societal challenges.
Requirements
1. Course Requirements for Part I:
Regular attendance and participation in class discussion, write up and presentation of the New Profit Inc. case, and a final exam. The final exam will be a take-home exam which will be distributed the last day of class and due approximately one week later. The grading weights are as follows:
A. Class Participation 40%
B. New Profit Inc. Presentation and Write-up* 10%
C. Final Exam 50%
D. Extra Credit Case Write Up**
* See study questions for assignment details.
** For those students who feel that they have not been as effective as they would like in their class participation or want to improve their class grade, you have the option to write up one of the following cases: Patrimonio Hoy, The Lee Pesky Center for Learning, or The Original NBA. The write up should be in the 3-5 page range. It should begin by answering the broad questions raised in the case about what the protagonist should do. The write up should also answer the "Study Questions" included at the back of the syllabus. This write up must be handed in before class. It should be done individually and marked extra credit assignment. You will not receive “extra credit” if you do not attend class that day.
Materials
Supplementary Reading: Four copies of the book listed below by Sharon Oster are on reserve at Feldberg Library. It is a useful reference. Chapters in this book about fundraising and strategic issues are useful in supplementing course materials. Listed below are four other books you will also find useful and are on reserve:
Sharon M. Oster, Strategic Management for Non-Profit Organizations, Oxford University Press, 1995.
David Bornstein, How to Change the World, Social Entrepreneurs and the Power of New Ideas, Oxford University Press, 2004.
Jim Collins, Good to Great and the Social Sector: A Monograph to Accompany Good to Great, 2005.
James E. Austin, The Collaboration Challenge, Jossey-Bass Publishers, 2000.
4. Web sites with excellent materials and links:
The Independent Sector (www.independentsector.org)
Board Source (www.boardsource.org)
Net Impact (www.net-impact.org)
Bridgespan (www.bridgespan.org)
Council on Foundations (www.cof.org)
Additional websites are listed in the course folder.
Class Attendance and Non-Emergency Absences
Attendance and participation in class are very important. Please bring with you, and display your name card prominently. If an emergency arises, please notify the professor as soon as possible.
It is Tuck School policy that missing a class for an interview is NOT an excused absence. It is your responsibility to work with recruiters and career services to minimize these kinds of disruptions. However, we recognize the importance of your job search and understand that in some cases, such conflicts are unavoidable. If you must miss a class session for an interview or other non-emergency, it is your responsibility to: (a) notify the Professor by e-mail in advance of class indicating the reason for the absence, and (b) submit within one week of the class a one or two page memo with answers the study questions that are assigned for the class you will miss. Failure to do either of these will result in a substantial penalty for your class participation grade.
Daily Class Participation
As you prepare for class, you may work in groups and exchange ideas and recommendations. However, each student is expected to prepare each case fully and to contribute to the group discussion.
Examination
For this course there will be a takehome exam, which will be placed in your mailbox on the last day of class. The exam will be a case and you will be asked to answer a series of general questions similar to those in the course syllabus. You will have exactly 3 hours from when you unclasp the envelope to complete the exam and it must be turned in approximately five days from the date that it is distributed. The exam will be open book meaning you can use your notes, books, cases and other materials. You will also be able to use calculators, computers and software. The exam is to be done individually. More detailed instructions will be provided in mid-April.
Laptop Policy
If you use your laptop during class, it is only to be used for class activities such as taking notes or referring to a spreadsheet. You are not to connect the laptop to the network and should not be doing any non-class activities during class time. The Tuck Laptop Policy applies in all respects in this course.
Grading
Class Participation 40%
New Profit Inc. Presentation and Write-up 10%
Due Wednesday, April 15: In groups of 3-4 people, fill out the one-page Evaluation Form (Appendix A - which is also a word doc in the course folder). Please hand in this evaluation form and hard copy fo your PowerPoint slides at the beginning of class. (You may write more than one page.) As described in the case, you should practice your presentation because there will be a strict five minute limit.
Final Exam 50%
For this course there will be a takehome exam, which will be placed in your mailbox on the last day of class. The exam will be a case and you will be asked to answer a series of general questions similar to those in the course syllabus. You will have exactly 3 hours from when you unclasp the envelope to complete the exam and it must be turned in approximately five days from the date it is distributed. The exam will be open book meaning you can use your notes, books, cases and other materials. You will also be able to use calculators, computers and software. The exam is to be done individually. More detailed instructions will be provided in mid-April.
Extra Credit Case Write Up
For those students who feel that they have not been as effective as they would like in their class participation or want to improve their class grade, you have the option to write up one of the following cases: Patrimonio Hoy, The Lee Pesky Center for Learning, or The Original NBA. The write up should be in the 3-5 page range. It should begin by answering the broad questions raised in the case about what the protagonist should do. The write up should also answer the Study Questions included at the back of the syllabus. This write up must be handed in before class. It should be done individually and marked extra credit assignment. You will not receive “extra credit” if you do not attend class that day.
Schedule
03/26/2009
Steve Mariotti and NFTE
Case: Steve Mariotti and NFTE
Read: Excerpt of Remarks As Delivered by Dr. Jim Yong Kim, March 2, 2009
Study Questions:
1. What are the Marriotti's strengths as an entrepreneur?
2. What is your assessment of NFTE's launch and performance to date?
3. What are NFTE's strengths, weaknesses, opportunities and threats? Is a SWOT analysis useful in helping this organization figure out what to do?
4. What should NFTE do?
03/27/2009
Patrimonio Hoy
Case: Patrimonio Hoy
Study Questions:
1. By how much would a low income family benefit financially from building a 100 square foot room using the Patrimonio Hoy program instead of building one on its own?
2. What is the value to CEMEX of a family building a room under PH vs "going it alone"? Assume for this analysis that the M$15/week program fee and 7% distributor fee together cover the marginal cost of administering and servicing the program.
3. Should Francisco Garza recommend that CEMEX continue with PH? Should they make any changes to the program?
4. How would the program be different if it were run by an NGO rather than CEMEX? What are the advantages and disadvantages of having a for-profit company involved in building low income housing?
03/27/2009
ESS 2: Optional Meeting at 12:15 p.m. in GM Classroom
ESS 2: Optional meeting at 12:15 p.m. in General Motors Classroom for those people interested in learning more about Part II of this course.
04/01/2009
Walk the Walk, Zeroing in on Impact
Case: Walk the Walk
Read: Zeroing in on Impact in course packet
Class Preparation:
The Bridgespan Group has developed a tool called “Intended Impact and Theory of Change” to help nonprofit organizations refine their strategy. This tool will be one of the primary ways that we analyze cases during this course, and we believe it will be useful if you serve on nonprofit boards. The reading “Zeroing in on Impact” is intended to provide an introduction to this concept. Bob Searle T’96, a partner at the Bridgespan group, will begin the class by presenting further information about this approach. Then we will have a case discussion which will give you an opportunity to apply these concepts.
Study Questions:
1. What is Walk the Walk's intended impact and theory of change?
2. Which of the three options should Walk the Walk emphasize during the next three to five years? Why?
3. Based on the financial information in the exhibits, how is Walk the Walk doing financially? What is your biggest area of concern?
4. How should Father Costello spend his time? What can the Board do to keep him from getting burned out?
04/02/2009
Bonnie CLAC
Case: Bonnie CLAC
Study Questions:
1. As an advisor to Bonnie CLAC, what would you recommend that they do in the upcoming year?
2. Assuming that each consultant placed an equal number of clients in new cars, did this part of his or her job cover their base salary?
3. In order to become less dependent on foundations, what should Bonnie CLAC do? How would you recommend that they increase their revenues or cut their expenses?
4. If Bonnie CLAC wants to develop a deeper relationship with Chittenden Bank what should it ask for?
5. Would you recommend that Bonnie CLAC work with more, higher income clients? Can they do it and still satisfy their mission?
04/08/2009
Grassroot Soccer
Case: Grassroot Soccer
Study Questions:
1. How can GRS tap into the US youth soccer market as a piece of the strategy for creating a sustainable fundraising program?
2. How can the organization find the best partners and create mutually beneficial relationships?
3. GRS seems to have access to celebrities. Is this something it should pursue and how could GRS best utilize them?
04/09/2009
The Original NBA
Case: The Original NBA
Read: The New Work of the Board
Study Questions:
1. As Cindy Dougherty, if your goal is to double service and maintain or improve quality, what do you see as your greatest obstacles to success?
2. What concrete actions should Cindy take during her first six months on the job?
3. Which of the seven items suggested by the consultant should Cindy tackle first?
4. As the economy softens in 2001, what strategy should Ms. Dougherty adapt? Was there any way to predict the financial problems that beset this organization in 2004 (after the case was written)?
04/15/2009
New Profit, Inc.: Investing in Innovation
In groups of 3-4 people, fill out the one-page Evaluation Form (Appendix A--which is also a word document in the course folder). Please hand in this evaluation form and hard copy of your PowerPoint slides at the beginning of class. (You may write more than one page.) As described in the case, you should practice your presentation because there will be a strict five minute limit.
As a staff member for New Profit you have been asked to evaluate these three proposals and select one for further due diligence and potential investment. The case and the one hour video that shows the three presentations (which can be accessed through the course folder) provide lots of information about the selection criteria that New Profit uses to evaluate organizations. In addition to this formal criteria, New Profit relies heavily on the judgment of the staff. Every group should watch the video and then prepare a five-minute, powerpoint presentation. We will go through as many presentations as we can at the beginning of class.
Detailed instructions are contained in the case.
04/16/2009
The Lee Pesky Center for Learning
Case: The Lee Pesky Center for Learning
Read: Lee Pesky Learning Center B
Read: Note on Starting a Non-Profit Venture
Study Questions:
1. In starting a non-profit, what has the Center done well? What has it done poorly? What are the advantages and disadvantages of having a business person with limited non-profit management experience as the founder?
2. Do you think the services are priced appropriately?
3. How would you deal with the issue of succession? (10 years later Alan is still struggling witht he question of what will happen when he retires from this board. He is looking for advice.)
4. As a member of the board, what kind of benchmarks would you use to measure the progress of the Center over the short term and long term?
5. After reading the B case, what was it during the start up period that was so critical in enabling the Center to be successful?
04/22/2009
City Year National Expansion Strategy (A)
City Year is a success story. Part of the reason is because Mike Brown and Alan Khazei are great social entrepreneurs. As you read the case, and especially as you think about City Year in 1987 and 1988, what about these individuals and their plan enabled them to be successful and a model for nonprofit organizations in the twenty first century?
Case: City Year National Expansion Strategy (A)
Development Ideas, Tips and Strategies at Work at City Year
Read: Getting on Board
Study Questions:
1. Should City Year expand in 1993? Which city or cities should they choose?
2. What kind of model should they follow in their expansion?
3. What are the key factors that explain City Year’s success thus far? What can other social entrepreneurs learn from them?
