german fundraising congress 2015 - disruptive change workshop

Dealing with Disruptive Change

Workshop: Relationships, Resilience, ExperimentsGerman Fundraising CongressBerlin, Germany19 May 2015

Colin HabbertonDirector: Global PartnershipsGivenGain Foundation

Cape Town, South Africa

(Source: USB)

Stellenbosch

(Source: Wikipedia)

• GivenGain FoundationSocial Fundraising Platform

• Global ReachSince 20011800+ Causes Worldwide50+ Countries10,000+ Projects7700+ Activists (Peer to Peer)100,000+ Donors185 Countries

• One World. Zero Barriers.

Speaker introduction

GivenGain’s Network Fundraising Platform

Introduction

Disruptive Change is an increasingly relevant and

complex influence in the world directly affecting civil

society and fundraisers tasked with mobilising resources

to address the impact of such change within their

organisation and its mission.

This session will investigate the causes and

characteristics of disruptive change through a series of

commercial and nonprofit case studies

A ‘relational’ perspective with be applied to explore how

connecting with various stakeholders can effectively

manage risk and create innovative fundraising solutions.

The workshop will include practical experimentation…Overview

Learning Outcomes:

Expect to learn about what disruptive change is.

A set of diagnostic tools for fundraisers and

executives to engage with their internal and

external stakeholders.

To assist with interpreting these changes and how

to build collaborative responses and solutions to

these challenges.

A brief introduction to a method of experimentation

incl. practical exercises applying the Schrage’s 5X5

framework

Overview

Session Summary

Part IIntroductionsWhat is Disruptive Change?Commercial case studiesSources of disruptionPrototypes for resilienceNonprofit case studies

Session Summary

Part IIStakeholder Analysis ToolkitAdditional tools for action5X5 ExperimentationSummary recommendationsLearning review

Concepts & Context

What is Disruptive Change?

Scale +

Speed +

Surprise=

Disruption(Source: ICSC, 2013: Global Perspectives: Riding the Wave)

Casualties of War…

Some others…

The Disruptors

Impact & Outcomes

Change Happens

Adapt or

Sufferand possibly,

Disappear

Sources of Disruption

Planetary Disruption– Climate Change– Resource Shortages

Political Disruption– Unpredictable extremism – Geopolitical tension

Economic Disruption– Financial Volatility– Rampant Inequality

Systemic Disruption– Changing Technology– Information Access

(Source: ICSC, 2013: Global Perspectives: Riding the Wave)

The Price of Inequality?

(Adapted: Piketty, 2014: Capital in the 21st Century)

The Significance of the 1%

(Adapted: Piketty, 2014: Capital in the 21st Century)

Just an Emerging Market issue?

(Adapted: Piketty, 2014: Capital in the 21st Century)

Digital Megatrends 2015

(Source: Accenture Technology Vision 2015 )

1. Internet of Me– Personalised World

2. Outcome Economy– Digital/Physical Blur

3. Intelligent Enterprise– Smart Decisions &

Delivery

4. Workforce Reimagined– Workforce to Crowdsource

5. Platform (R)evolution– Harnessing Hyperscale

The Hidden Cost of Gangnam Style

Nonprofit Disruption

Disintermediation– Direct beneficiary contact– Virtual service delivery

Competition– Cause relevance– Funder focus

Cost Efficiency– Technology advantages– Resource flexibility

Effective Impact– Measurability– Paradigm shift

Threat of New Causes

Demands of Donors

Threat ofSubstitute

Choices

Pressure ofPartners & Suppliers

Intensity of

CauseRivalry

Your Cause

(Adapted: Porter, 1979: Five Forces)

Prototypes for ‘resilience’

Active Disruptor– Be the change– Shift culture– Proactive

Opportunistic Navigator– Agility and speed– Adapt and thrive– Responsive

Conservative survivor– Well established, brand– Adapt to survive– Reactive

(Source: ICSC, 2013: Global Perspectives: Riding the Wave)

Conservative Disruptor?

Source: http://www.youtube.com/watch?v=eu9kMIeS0wQ

Case Study: Habitat for Humanity SA

2010: Realisation ‘Building Houses’ Seasonal events Dependent on corporates Geographically contained Little international funding Houses = Funding Not building enough houses 300 Houses per year Impacting 300 families per year

Case Study: Habitat for Humanity SA

2014: Response ‘Building Communities’ Scalability of Purpose Community Resource Partnering with Communities Alignment with Government Re-engineered the operation Cross-functional teams Collaborative decision-making Impacting 3000 families per year

Case Study: Habitat for Humanity SA

Innovation?

• Performance-improving innovations– Replace the old with new, better

models– Substitutive e.g. Camry to Prius

• Efficiency innovations– Same products & customers,

cheaper prices– Improve productivity, resource

allocation– e.g. Supermarkets, Downsizing

• Market-creating innovations– Transforms products, create new

customers– Changes needs, resource/skill/access

dependent– e.g. computers, internet, nonprofits

The 3 kinds of Innovation

(Source: Christensen & van Bever. 2014. The Capitalists Dilemma. Harvard Business Review)

Case Study: Metro Trains, Melbourne, Australia

• Launched November 2012 – Song top 10 on iTunes

• Close to 100 million views – 4.8 million shares, – most shared ad of all time– various spin-offs

• Dumb Ways to Die 2 game– the top app in 83 countries, – four billion mini-game plays in

just three months

• Most awarded campaign in the history of Cannes– 28 Lions, incl 5 Grand Prix.

• 127 million people said they would be safer around trains because of the campaign.

(Source: mccann.com.au)

And then of course this - #IceBucketChallenge…

It began as a grassroots effort by Pete Frates, a 29 year-old Massachusetts man and

athlete who has lived with ALS since 2012 and Jeanette Senerchia of upstate New York,

whose husband, Anthony Senerchia, has had the disease for over a decade.

Inspired by Jeanette, Pat Quinn challenged 50 friends…

• 8000 to 430 000 Wikipedia views/day

• 2.2 million mentions on Twitter

• 1.2 mentions on Facebook

• $100 million (ALS US)

• $2.5 million in 2013

• £6m (Motor Neuron Disease, UK)

• €1m (ALS Netherlands)

• And more!

Cast Study: #IceBucketChallenge

• ALS (Amyotrophic lateral sclerosis) Association

• Strong, coordinated effort underlying success:

• user-friendly website

• strong storytelling, and

• a solid donor management system.

• The ALS Association was prepared…

• Big, selfless, simple idea

• The audience effect

• Personal nominations by friends

• Sense of urgency

IceBucketChallenge success factors

Club Recife – Immortal Fans

Tools & Methods

An authorised financial services provider – FSP 43441

Source: https://www.youtube.com/watch?v=ts_4vOUDImE

Good or bad memories?

Team

Organisation/Cause

Partner/Supplier

Beneficiary

Cost E

ffici

enci

es &

Innova

tion

Impac

t

Inte

lligen

ce

Superior

Service

Feedback

Fulfilment

Response

Training & Incentives

Compensation &

Opportunities

Superior

Productivity

Dia

log

ue

&

Pro

file

Effective

So

lutio

ns

Co

nte

nt

&In

sig

ht

Efficien

tIm

pact

Quality Assurance

Funder/Donor

Competitor Cause

returns/reinvestment

marketing/mindshare

CommunityResponsibilities

EnvironmentalConcerns

Market & IndustryConditions

Legal & EthicalRegulations

(Adapted from: Habberton, 2005)

Stakeholder Analysis Toolkit

Research for Development

Social Networks– Opportunity Pipelines

Mobile Devices– Personal Access

Using Big Data– Navigating the Ocean

Harnessing the Cloud– Breaking Barriers

Aware of the Internet of Things– Integrated Connection

(Adapted: Thomas: 2014, Memeburn)

5x5 Experiments

The value proposition for experimentation

Safer– Internal and contained

Simpler– Cheap, team-based

Smarter– Quick and creative

Successful– Commercial evidence

Innovation– Ready for scale

(Adapted: Schrage: 2014,The Innovators Hypothesis)

5 x 5?

5 People– Cross-functional

5 Experiments– Variety

5 Days– Focus

<EUR 5000– Don’t ask for money

5 Weeks– “Ideas are the enemy”

(Source: Schrage: 2014,The Innovators Hypothesis)

Tips for Success

Simple, compelling Hypotheses– If this, then that + evidence– Action Output– Metrics & Results

Creative Destruction– Test great arguments– Executive buy-in

Core Competencies– Think inside the box– Look for value: “Buffetism”

(Adapted: Schrage: 2014,The Innovators Hypothesis)

Great Problems

Great Visions

Great Arguments

“Instant, Social,

Recommended,Automated, Pervasive”

Concluding remarks

(Source: Schrage: 2014,The Innovators Hypothesis)

• Innovation Mindset– Shared understanding

• Relational approach– Collaborative partnerships

• Competency analysis– Right Tools & Team

• Risk scanning– Pre-empting change

• Innovators Hypothesis– Experimentation (5x5x5)

Recommendations for resilience

Summary Recommendations

Innovate– Through collaboration– Through partnerships

Invest– In your people– In your systems– In your community

Implement– 5X5 Experiments– Train for change

Learning Outcomes:

Expect to learn about what disruptive change is.

A set of diagnostic tools for fundraisers and

executives to engage with their internal and

external stakeholders.

To assist with interpreting these changes and how

to build collaborative responses and solutions to

these challenges.

A brief introduction to a method of experimentation

incl. practical exercises applying the Schraghe’s

5X5 framework

Final Review

Acknowledgement & Appreciation

Q & A

“Whoever discovered water, it

wasn’t a fish”

Marshall McLuhan

Danke!

@GivenGain @relatomics

www.facebook.com/givengain

www.givengain.com colin@givengain.com +27714012434