CHALLENGE:FUTURE FINALS SUBMISSION

180 DEGREES CONSULTING

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Contents

1. OUR IDEA

INTRODUCTION

PROBLEM DEFINITION

OPERATIONAL STRATEGY

ENGAGEMENT PROCESS

QUALITY ASSURANCE

2. INNOVATION AND RELEVANCE

INNOVATION

RELEVANCE

3. ORGANISATIONAL GOALS

GOAL 1: GENERATE A LARGE SOCIAL IMPACT

GOAL 2: MAKE THE EXPERIENCE ENJOYABLE FOR STUDENTS

4. IMPLEMENTATION AND FEASIBILITY

IMPLEMENTATION

FEASIBILITY

A FEW PHOTOS

5. THE FUTURE

OUR GROWTH ASPIRATIONS

INTERNATIONAL GROWTH CHANNELS

EXECUTION AND BRANCH MANAGEMENT CAPABILITIES

OUR FORECAST GROWTH

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Our Idea

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Section 1

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Our idea, which we are well on the way to implementing, is to create a worldwide student-

driven consultancy that generates significant social impact by enabling the most capable

university students to develop sustainable solutions to challenges faced by socially conscious

organizations.

Our team has been working on this idea for the past couple of years, however it has only

taken off in the past few months when we have been working on it as part of the

Challenge:Future competition.

So how does 180 Degrees Consulting operate?

180 Degrees consists of an international executive as well as many branches that are based at

universities around the world. The international executive is the main governing body of the

organization, responsible for overseeing and supporting the work of the individual branches.

There are currently branches situated in Indiana (USA), Ithaca (USA), Copenhagen

(Denmark), Sweden (Stockholm), Mexico (Mexico City), Russia (Vladivostok), and Sydney

(Australia).

At each branch, students are able to apply to become 180 Degrees consultants. After a

rigorous selection process involving written applications and in-person interviews, successful

students are allocated into consulting teams based on their areas of expertise and the degree

they are completing. Teams then work throughout the year with non-profits to identify and

overcome specific challenges they are facing.

A broad range of consulting services are offered, including organisational planning and

development, market research and analysis, and project review and realisation. Importantly,

we track the progress of clients over time, even after the official consultation process has

concluded. By using the records of our international client base to establish best practices, we

make an impact on social outcomes in the long-term.

Students are also given professional consulting training and mentoring by top-tier consulting

firms, so as to increase the quality of work undertaken.

Introduction

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We live in a time when non-profits and social enterprises are able to mobilise and network

internationally, while retaining their local identity and community engagement. At the same

time, governments across the world are enabling non-profits and social enterprises to take

over social services previously delivered by governments. One example of this trend is the

Swedish Government, which in 2008 passed a law to this effect. Social entrepreneurship is

on the rise, and is witnessing a new movement of people and ideas.

There are non-profits and social enterprises, however, which are constrained by a lack of

cost-effective professional services and are unable to employ for-profit consulting companies

to help them. Furthermore, the limited pro bono work undertaken by for-profit

consultancies is done mostly for established entities with public clout. This lack of cost-

effective professional service provision for non-profits and social enterprises constitutes a

market failure, which leaves them – and the communities that rely on their services –

wanting.

But there is another source of creative potential and problem-solving ability, which is largely

untapped. It is in young people, who may have limited money or professional experience,

but who do have the ability to think laterally. They have a boldness and an eagerness to

engage in socially beneficial activities, and are keen to apply their skills in a tangible and

professional manner.

The inability to connect this unmet demand with this untapped supply is attributable to two

sources of market failure:

! Information asymmetries: It is difficult for non-profits and students to connect with

each other efficiently, especially where the problem to be resolved requires expertise in a

specialized field.

! The incentive structures may not be spontaneously aligned: Non-profits require quality

and reliable assistance, and students require enough synergy between their academic

experience and the problem-solving process to merit the effort.

180 Degrees resolves these market failures by engineering a long-term, sustainable

connection between non-profits who seek assistance and students who are willing and able to

provide it.

Problem Definition

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Our operational strategy has a number of elements, such as expanding internationally

through universities, and operating under a decentralized organisational model so as to

achieve scale. However the aspect of our strategy we will focus on in this sub-section is the

type of organizations we plan to work with.

In broad terms, 180 Degrees works with socially-conscious organizations, which includes

non-profit organizations, social enterprises, and for-profit organizations in relation to their

corporate social responsibility.

So far 180 Degrees has mainly worked with grassroots non-profit organizations and social

enterprises. For example, we have worked with Helping Hands in Sweden on fundraising

strategies, AfriCap in Mauritius on improving social impact assessment, Crossroads in Hong

Kong on effectively connecting unwanted goods to where they are needed around the world,

and A21 in Ukraine on developing new social enterprises to provide employment to women

subjected to sex slavery.

In the medium-term it is our intention to also start doing some consulting for for-profit

organizations in relation to their CSR, and to use the revenue generated from this to cross-

subsidize our other operations. The experience, reputation and market knowledge we gain

from consulting for non-profits and social enterprises would put us in a good position to

make this transition. More specifically, we intend to target businesses that are considering

implementing socially-oriented business strategies and CSR initiatives. For example, we would target

enterprises such as denim manufacturer Nobody. This business donates a percentage of its sales

revenue to charities that supply clean drinking water to impoverished communities in Africa.

This client breakdown provides a good balance between activities that generate revenue for

the firm and activities solely focused on achieving the maximum social impact.

In terms of the geographic location of clients, we try to consult for organisations that have a

physical location close to where 180 Degrees’ branches are located. This is because

consultation is more effective if students can communicate face-to-face with clients.

However this does not mean that social solutions cannot be sourced internationally through

utilizing 180 Degrees’ extensive network and online knowledge sharing platform.

Operational Strategy

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To ensure prosperous development of ideas between the client and consultants, 180 Degrees uses a highly communicative engagement process that takes our initiatives from concept to creation, on a reliable and effective basis.

1. Introduction Meeting: This is an opportunity for our client to meet with their 180 Degrees consultant team. Here, our team will begin to understand the industry the organisation operates in, what it seeks to achieve, and examine the way it currently attempts to attain its goals.

2. Statement of Work and KPI Benchmarks: After our team has assessed the organisation and what it seeks to achieve, a statement of work will be prepared. It will outline the work to be undertaken, the aim of the work and the timeframe in which it will be accomplished. From this, we will establish a baseline outcome which is derived from the organisation’s current performance and that of competitors. This baseline will allow us to gauge the progress of our work, and develop a range of Key Performance Indicators (KPIs). These indicator benchmarks will be used to assess the implementation and effectiveness of our work in the long run.

3. International Collaboration: At this stage, an early report detailing the particular scenario and work to be completed will be filed and shared on our online platform. This will allow us to draw upon the wide base of international talent and experience available to 180 Degrees.

4. Progress Report: An intermediate progress report will be tabled and presented to the organisation at approximately the halfway point in the work. This details the work completed to date, and tracks the progress of the work compared to the baseline KPIs. Any major issues and risks to the work will also be addressed.

5. Final Presentation: This is the culmination of the consultancy process. A formal presentation to relevant stakeholders is made, outlining the key strategies and plans formed over the period of work. A review of the baseline KPIs is made, to ensure that the project outcomes reflect the goals set. A further checkpoint and another set of KPIs is established, which will allow the implementation and effectiveness of our recommendations to be measured.

6. Key Performance Indicator Review: This is the final planned stage in the consulting process, which occurs after implementation of recommendations has been carried out. During this stage, the outcomes of the organisation’s work are measured against the baseline set at the commencement of the consulting process. If the progress is deemed unacceptable, then further recommendations are made and additional KPI checkpoints established.

Engagement Process

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180 Degrees recognizes the need to provide a high standard of consulting services. It is for

this reason that students are required to undergo a rigorous selection process and then

engage in quality training before they are eligible to consult.

The selection of student consultants involves a three-stage process. First, students need to

have a demonstrated strong academic record. Second, candidates have to submit an

application outlining their proof of relevant experience and/or ability. Third, shortlisted

candidates will go through a series of interviews with local and international 180 Degrees

consultants to ensure that their motivations and values are consistent with those of the

organization. This rigorous selection process ensures that the quality of 180 Degrees student

consultants is comparable to the quality of students recruited by established for-profit

consultancies.

In addition to this recruitment process, other methods 180 Degrees employs to ensure

quality of consulting services include:

" Providing student consultants with both general and project-specific training

conducted by the world’s leading consulting companies.

" Engaging university professors as mentors for student consultant teams.

" Matching students with specialized knowledge with clients needs.

" Encouraging students to consult for 180 Degrees over an extended period of time so

that experience is acquired.

" Enabling students to use the 180 Degrees online platform to access an international

pool of knowledge and expertise.

Quality Assurance

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Innovation and Relevance

Section 2

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180 Degrees Consulting is an innovative idea for a number of reasons:

" It goes against the general view of what it means for students to volunteer.

Volunteering by way of consulting is quite a novel concept.

" It ‘hits multiple birds with one stone’, enabling students to simultaneously get work

experience and make a difference (rather than students having to do these activities

separately)

" It strikes the right balance between how scalable and how tangible an activity is. If

students run their own social ventures then the impact is very tangible but it not

very scalable because it is very time-consuming. On the other hand, if students just

think up innovative ideas to change the world, the ideas have the potential to have

an impact on a large-scale but it is unlikely those ideas will be implemented (that is,

the impact is not tangible in most cases). By solving real-life problems faced by

real-organisations, 180 Degrees makes a tangible difference in a scalable way.

" Unlike most other initiatives that involve starting up a new charitable organization,

180 Degrees works to try to improve the effectiveness of existing charities.

" It is a true ‘win-win’ situation. This process is mutually beneficial. Non-profits are

assisted in the development of innovative, sustainable and practical solutions. At

the same time, students are able to contribute to their communities, apply their

university studies in a practical environment, and develop valuable life skills.

" There is also a ‘win-win’ outcome involving student consultants and the top-tier

consulting firms that provide training and mentoring. Top-tier firms are able to

interact with very capable students who are interested in consulting (which is very

useful for recruitment purposes), and students receive quality training.

" No other student-based consultancy in the world involves regular collaboration

between students from many corners of the globe. Having a variety of perspectives

on problems leads to better ideas being developed.

" Unlike most other student organizations, we operate in a professional manner and

the process of joining is quite selective. This is necessary to ensure a high quality of

services.

Innovation

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The consulting work undertaken by 180 Degrees is incredibly relevant because it is helping

socially conscious organizations to overcome systemic challenges they are facing. It is

important to realize that the effectiveness of a charity should not be determined based on the

percentage of donations that go to administration costs, but by the quality of its programs

and the social impact that charity creates. We try to address the underlying causes of

problems and to change the way things are done, rather than simply seeing money as the

solution to every problem.

Relevance

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Organizational Goals

Section 3

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Goal 1: Generate a Large Social Impact

As has already been mentioned, many non-profit organisations work ineffectively to achieve

their aims. Unless assistance is provided, they will continue to work ineffectively, trapped by

a mentality of doing things the way they’ve always been done.

Our main goal is to provide innovative and custom solutions to organisations who are trying

to make the world a better place. We harness their existing infrastructure, experience and

expertise and help to focus it on where they can make the biggest difference, in the most

effective way.

Below is a snapshot of the breakdown of the clients of the Sydney University branch at the

moment. As can be seen, we are working with a large variety of non-profits and social

enterprises.

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We believe that 180 Degrees generates a greater social return than other charitable

organisations, for three reasons:

1. 180 Degrees meets an unmet demand

There are many organisations that focus on solving social problems through either

fundraising or raising awareness. However many social problems cannot be solved using the

same thinking that created them. What is needed is not just money and awareness, but social

innovation – which is what 180 Degrees provides.

2. 180 Degrees facilitates a mutually beneficial arrangement

Social returns don’t just flow one way – both students and clients benefit. Clients benefit

through getting tailored solutions to systemic problems, whilst students benefit through

simultaneously gaining work experience, making a meaningful contribution to their

communities, and developing valuable life skills. This two-way arrangement makes the

organization sustainable, enabling social returns to increase over time.

3. There is a multipled social impact

Because 180 Degrees track the progress of clients over time, even after the official

consultation process, the organisation makes an impact on social outcomes in the long-term.

Records of clients are used to establish best-practices, with solutions applied in one location

transferable to others.

In a quantitative sense, it is forecast that across all branches 180 Degrees will be able to

consult for more than 700 organizations by 2015, which equates to over 160,000 labour

hours - a significant social impact.

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Goal 2: Make the Experience Enjoyable for Students

We have always strived to make 180 Degrees an organization that is fun to be a part of.

Indeed, many students tell us it is the most enjoyable activity they do each week. Some

ways we create fun are as follows.

" We have regular social events. For example, we recently held a Gala Ball for all

Australian students involved in 180 Degrees Consulting. It was an amazing night

enjoyed by all. Other social events include ‘potluck’ dinners, social drinks, and

cocktail receptions.

" We focus on working in teams. Students enjoy working with others and forming

new friendships.

" Our student consultants get a lot of enjoyment out of helping others and seeing

the work they are doing make a big difference to the lives of other people.

" We encourage global collaboration in a number of ways. In addition to

encouraging sharing on our online knowledge sharing platform, we also run

‘international projects’ where we select students from all over the world and send

them to a developing country to work together and help a charity there. This

cross-cultural exchange is very rewarding and enjoyable for many people.

Furthermore, the very fact that we enable people to travel the world to

undertake consulting makes it fun!

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Section 4

Implementation and Feasibility

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Implementation

Since being selected for this round of the Challenge:Future competition all members of our

team have been working hard to bring our idea for a worldwide student consultancy to the

next level. Ben Coles has focused on operations, Shane Treeves on marketing, and Edward

Miller on the financial side of things. We have made substantial progress. Some of our key

achievements in the past 3 months are:

" Doubling the number of existing 180 Degrees branches and lining up many

more branches to commence operations in 2012 (see map below).

" Securing substantial sponsorship from a leading for-profit consulting company

" Setting up support systems to enable the growth of the organization

" Increasing awareness of the 180 Degrees brand amongst students and non-profit

organizations

" Establishing an international executive team of 25 people to help out all the

different 180 Degrees branches around the world

" Ensuring each 180 Degrees branch is incorporated in the jurisdiction where it

operates

" Sending teams of consultants to developing countries to undertake projects. For

example, we recently sent teams to Uganda and Bangladesh, and in February a

consulting team will be based in Cambodia.

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Feasibility

We have proved to ourselves as well as others that our idea is feasibly, both financially and

in terms of how it operates. Some testimonials to illustrate this are as follows:

“180 Degrees i s one o f the f ew organizat ions that i s l eg i t imate ly thought ful and nove l . I t i s a great opportunity for s tudents to ge t pract i ca l exper ience that i s manageable a longs ide fu l l - t ime s tudy.” – Alex Lewis (member of a 180 Degrees Consulting Team)

“We are incredibly grate ful for the he lp o f the 180 Degrees Consult ing team, made up o f immense ly inte l l i gent and creat ive indiv iduals . Upon implementing the ir recommendations we have seen a 60% increase in the number o f KPIs we meet . Thank you.” – CEO of Sydney-Based Non-Profit Organization

"180 Degrees Consult ing i s a fantast i c ini t iat ive ." - Kevin Rudd (former Prime Minister of Australia)

"180 Degrees i s such a worthwhi le act iv i ty for s tudents to ge t involved in" - Marie

Bashir (Governor of New South Wales, Australia)

In terms of finances, one of the great things about 180 Degrees Consulting is that we

operate on a very low budget. At most of our university branches, the university provides

180 Degrees Consulting with in-kind support (such as free room-hire), as well as some

pecuniary support. We also receive some financial support from a top-tier consulting

company, which covers the costs of the international executive and enables us to provide

start-up grants to new branches. To further improve the financial position of 180 Degrees,

we intend to commence consulting for for-profits organizations in relation to their CSR in

the medium-term (in addition to continuing to consult for non-profits and social

enterprises). The revenue generated from this will be reinvested into the organization.

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A Few Photos

Above: One of the consulting training events we recently held.

Below: Some of the international executive at a planning lunch.

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A Few Photos

Above: Two students who recently went to Uganda for a consulting project. They are clearly enjoying themselves!

Below: Recruiting new student consultants.

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A Few Photos

From top to bottom: The 180 Degrees branch leadership teams in Denmark, Russia and Mexico.

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Section 5

The Future

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!Our Growth Aspirations

We want to grow 180 Degrees Consulting from what it is today to over 50 branches and over

4000 consultants by the beginning of 2015. With 13 new or growing branches in the pipeline

at the moment, we believe this to be a realistic expectation. The branch growth strategy is to

maximize the inflow of branches into our pipeline by leveraging our three major growth

channels and to maintain the high conversion rate. We plan to support that high conversion

rate by assisting branches over the four hurdles identified in branch filter diagram below.

The remainder of this section will:

" Further examine the channels of growth utilized by 180 Degrees.

" Explain the capabilities of 180 Degrees in executing and managing this growth.

" Provide an annual forecast for 180 Degrees branch growth

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International Growth Channels

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A number of 180 Degrees consultants are exchange students from

foreign universities. 180 Degrees runs workshops for those students

who are interested in establishing a branch at their home university.

This method has already proven successful with the Indiana and

Copenhagen Branches setting up recently. This method is preferred

because branches are established by individuals who understand

how 180 Degrees operates and therefore are more likely to

successfully establish branches. Further, this growth method should

support short-term exponential growth. To maximize this

opportunity the Branch Management Office ensures that branches

hold start-up sessions and focus on recruiting international students.

Many consultants go to youth leadership conferences, business plan

competitions and debating tournaments. These conferences are

melting pots of young ambitious people where the 180 story gains

significant traction. It is expected that through formal events and

informal relationships a number of branches will be established

following the example set by the Mexican, Swedish and Russian

branches. Our strategy to develop this channel is to train all 180

Degrees members on how to identify and take advantage these

opportunities, where they can get support, and the process of setting

up a new branch. It is hoped that with increased funds, we could

allow executives who identify new branches, which are successfully

established to go on a subsidized secondment to these to help their

contact establish the branch. This would incentivize members to

develop new branches at international student conferences.

As the 180 Degrees Consulting brand name penetrates national

markets students from other universities have approached 180

Degrees consulting to establish a branch at their university. We have

already received four such applications within Australia. It is

expected that this channel will provide a significant source of

medium term growth opportunities as the current generation of

branches mature. To maximize this growth channel we are

developing media kits for all branches to increase the brand’s

penetration into their markets. Further we have clear pathways for

students looking to establish branches to reach-out to.

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Execution and Branch Management Capabilities

Over the past few months 180 Degrees has had an enviable record of converting leads into

branches. This is expected to continue as the international body will continue to provide

support to new branches. This support is channeled through Branch Management Office,

which provides best practice procedures including step-by-step guides on recruitment,

accountability systems to track branches and resources to reduce the workloads on branch

executives. Specifically, our “branch master pack” provides templates for many of the

standard forms and documents needed to establish a branch and takes prospective branch

heads through a series of easy to implement steps. This reduces the risks faced by fledgling

branches and the work needed to set one up.

Over the past 2 months we have established support systems to help branches execute day-

to-day activities and set-up. The systems in place include:

1. Electronic tracking of branches: This system reduces the variable work load

associated with new branches.

2. Start-up branch management team: Each branch is given very personal support

from a member of our growth team. This team is easily scalable as each person

manages a portfolio of branches. As the growth rate, in aggregate, does not increase

significantly from period to period it is relatively manageable. Further, we currently

have the capacity to manage this growth through to semester 1 2013.

3. Established branch management team: This team involves a number of people

who manage a portfolio of established branches. This is relatively low level of work

per branch and therefore allows significant flexibility with how many branches are

allocated to individual team members, which streamlines the process of adding

capacity to the team.

The prize money from the Challenge:Future competition would help to further establish

these support systems, thereby enabling the continued growth of 180 Degrees Consulting.

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Our Forecast Growth

The table below shows the forecasts of the number of branches per semester.

Time Semester 2,

2011

Semester 1,

2012

Semester 2,

2012

Semester 1,

2013

Semester 2,

2013

Semester 1,

2014

Semester 2,

2014

Total 7 14 18 25 41 53 78

We expect our growth rate to increase at an increasing rate. The chart below illustrates our growth sources. In the short term, our existing pipeline is the major source of growth. This pipeline has low risk levels – a number of the branches are already close to set-up, with enthusiastic and committed executives who have lined up both clients and consultants. It should be noted that the pipeline is also de-risked as existing branches which are yet to scale up to five or more projects a semester are included. In the future, it is expected that growth will largely be driven by international exchange students returning to their home universities to establish branches.

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