Harvard Case - Fundacion Idel: Building Dignity for Argentinians with Disabilities
"Fundacion Idel: Building Dignity for Argentinians with Disabilities" Harvard business case study is written by Moriah Meyskens, Roxanne Miranda, Karolina Rzadkowolska. It deals with the challenges in the field of Entrepreneurship. The case study is 12 page(s) long and it was first published on : May 31, 2017
At Fern Fort University, we recommend that Fundacion Idel pursue a strategic growth plan focused on expanding its reach and impact through a combination of innovative business model development, strategic partnerships, and leveraging technology. This approach will enable Idel to scale its operations, increase its impact on the lives of people with disabilities in Argentina, and potentially expand its reach internationally.
2. Background
Fundacion Idel is a non-profit organization dedicated to improving the lives of people with disabilities in Argentina. Founded in 2003, Idel has established itself as a leader in providing vocational training, employment opportunities, and social inclusion programs. The organization faces challenges in scaling its operations to meet the growing demand for its services.
The case study focuses on Idel?s founder, Maria Elena, and her team?s efforts to navigate the organization?s growth trajectory. They are considering various options, including expanding their service offerings, entering new geographic markets, and exploring new business models.
3. Analysis of the Case Study
To analyze Idel?s situation, we can utilize the Business Model Canvas framework. This framework helps to understand the organization?s current value proposition, customer segments, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure.
Idel?s Current Business Model:
- Value Proposition: Idel provides vocational training, employment opportunities, and social inclusion programs to people with disabilities.
- Customer Segments: Individuals with disabilities, families of individuals with disabilities, businesses seeking to hire diverse talent.
- Channels: Direct outreach, partnerships with government agencies, NGOs, and businesses.
- Customer Relationships: Personalized support, community engagement, and ongoing communication.
- Revenue Streams: Donations, grants, government contracts, service fees (for some programs).
- Key Activities: Training program development and delivery, job placement services, advocacy and awareness campaigns.
- Key Resources: Skilled staff, training facilities, partnerships with businesses, community networks.
- Key Partnerships: Government agencies, NGOs, businesses, educational institutions.
- Cost Structure: Staff salaries, facility costs, program development and delivery costs, fundraising and marketing expenses.
Challenges and Opportunities:
- Scalability: Idel?s current model relies heavily on individual relationships and direct service delivery, making it difficult to scale operations.
- Financial Sustainability: Reliance on donations and grants makes Idel vulnerable to funding fluctuations.
- Market Expansion: Idel?s focus on Argentina limits its potential impact.
- Technology Adoption: Idel can leverage technology to improve efficiency, reach a wider audience, and enhance program delivery.
4. Recommendations
Idel should implement a multi-pronged growth strategy that combines business model innovation, strategic partnerships, and technology adoption.
1. Business Model Innovation:
- Develop a hybrid model: Idel can explore a hybrid model that combines its current non-profit structure with social enterprise elements. This could involve creating revenue-generating programs while maintaining its core mission of serving individuals with disabilities.
- Expand service offerings: Idel can expand its service offerings to include new areas such as assistive technology training, digital skills development, and entrepreneurship programs.
- Focus on impact measurement: Idel should invest in robust impact measurement systems to track the effectiveness of its programs and demonstrate its value to potential donors and partners.
2. Strategic Partnerships:
- Form partnerships with businesses: Idel should actively seek partnerships with businesses to create employment opportunities for individuals with disabilities. This could involve joint training programs, internship opportunities, and inclusive hiring initiatives.
- Collaborate with international organizations: Idel can explore partnerships with international organizations working in disability inclusion to share best practices, access funding, and potentially expand its reach to other countries.
- Engage with government agencies: Idel should strengthen its relationships with government agencies at both the national and local levels to advocate for policy changes, access funding, and leverage government resources.
3. Technology Adoption:
- Develop a robust online platform: Idel should develop a user-friendly website and mobile application to provide information about its programs, facilitate online registration, and offer resources to individuals with disabilities.
- Leverage data analytics: Idel can use data analytics to track program outcomes, identify areas for improvement, and personalize its services.
- Explore virtual training programs: Idel can explore offering virtual training programs to reach a wider audience and reduce geographic barriers.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Idel?s core competencies in providing vocational training, employment opportunities, and social inclusion programs. They also support Idel?s mission of improving the lives of people with disabilities in Argentina.
- External Customers and Internal Clients: The recommendations consider the needs of Idel?s external customers (individuals with disabilities, families, businesses) and internal clients (staff, volunteers).
- Competitors: The recommendations aim to differentiate Idel from other organizations working in the disability sector by focusing on innovation, partnerships, and technology.
- Attractiveness ? Quantitative Measures: While specific financial projections are not possible without further research, the recommendations are expected to increase Idel?s impact, revenue, and sustainability.
- Assumptions: The recommendations assume that Idel has the capacity to build a strong team, secure funding, and adapt to the changing needs of its stakeholders.
6. Conclusion
By implementing these recommendations, Fundacion Idel can significantly increase its impact on the lives of people with disabilities in Argentina and beyond. This strategic growth plan will enable Idel to become a more sustainable and impactful organization, contributing to the creation of a more inclusive society.
7. Discussion
Alternatives Not Selected:
- Focusing solely on fundraising: While fundraising is essential, relying solely on donations and grants would limit Idel?s growth potential and make it vulnerable to funding fluctuations.
- Merging with another organization: While a merger could provide resources and expertise, it could also compromise Idel?s independence and mission.
Risks and Key Assumptions:
- Funding challenges: Securing sufficient funding for implementing the recommendations is a key risk.
- Technology adoption challenges: Idel may face challenges in developing and implementing its technology strategy.
- Competition: Idel may face competition from other organizations working in the disability sector.
8. Next Steps
- Develop a detailed business plan: Idel should develop a detailed business plan outlining its growth strategy, financial projections, and key milestones.
- Secure funding: Idel should actively seek funding from various sources, including foundations, corporations, and government agencies.
- Build a strong team: Idel should invest in hiring and training staff with the skills and experience needed to implement its growth strategy.
- Develop a robust technology strategy: Idel should develop a comprehensive technology strategy, including the development of its online platform, data analytics tools, and virtual training programs.
- Monitor and evaluate progress: Idel should regularly monitor and evaluate the progress of its growth plan, making adjustments as needed.
By taking these steps, Fundacion Idel can position itself for sustained growth and impact, empowering individuals with disabilities in Argentina and beyond.
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Case Description
Fundacion Inclusion y Desarrollo Laboral (IDEL) was a not-for-profit organization in Buenos Aires, Argentina, whose mission was to enhance the dignity of and improve the quality of life for people with intellectual disabilities by promoting their inclusion in the formal labour market. IDEL did this by providing a sheltered work environment, projects, and wages for participants in its programs. In 2016, IDEL was seeking to increase the number of individuals it served by developing its own source of earned income and securing additional stable clients to provide work projects and revenue for these individuals. The organization acquired a machine to produce garbage bags that it planned to sell in the Argentine market, and the organization's executive director was finalizing a plan to develop the manufacturing of garbage bags as a source of earned income. She needed to decide how to grow IDEL sustainably, by scaling its operations to serve a larger community while also addressing the needs of its stakeholders.
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