Harvard Case - Health Leads: Reaching for Impact (Abridged)
"Health Leads: Reaching for Impact (Abridged)" Harvard business case study is written by V. Kasturi Rangan, Sarah Appleby. It deals with the challenges in the field of Social Enterprise. The case study is 8 page(s) long and it was first published on : Sep 21, 2016
At Fern Fort University, we recommend Health Leads to prioritize a growth strategy focused on expanding its social enterprise model through strategic alliances and social franchising. This will enable Health Leads to scale its impact by leveraging the expertise and resources of other organizations while maintaining its core mission of connecting low-income patients with essential resources. We further recommend Health Leads to develop a robust social impact measurement framework to track and demonstrate the effectiveness of its programs, thereby attracting more impact investors and building a sustainable financial model.
2. Background
Health Leads is a nonprofit organization founded in 2005 with a mission to address health disparities by connecting low-income patients with essential resources like food, housing, and transportation. The organization operates through a unique social entrepreneurship model that leverages the resources of corporate social responsibility programs and government services to connect patients with needed resources. Health Leads has demonstrated significant impact in its initial markets, but faces challenges in scaling its operations to reach more patients nationwide.
The case study focuses on the organization's decision to expand its model through strategic alliances and social franchising. This presents a critical juncture where Health Leads must navigate the complexities of growth strategy, organizational structure, and social impact measurement to ensure its long-term sustainability and effectiveness.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship and impact investing. Health Leads operates within a triple bottom line framework, aiming to achieve social, environmental, and financial sustainability. This requires a nuanced understanding of the organization's core competencies, its mission to address health disparities, and its ability to generate positive social value creation.
Key challenges and opportunities:
- Scaling Impact: Health Leads needs to find a way to reach more patients without compromising its quality of service.
- Financial Sustainability: The organization relies on a mix of grants, corporate partnerships, and earned revenue. Expanding its reach requires a robust financial model.
- Impact Measurement: Demonstrating the effectiveness of its programs is crucial for attracting investors and securing funding.
- Organizational Structure: Health Leads needs to adapt its organizational structure to support growth and maintain its core values.
Strategic Frameworks:
- Social Enterprise Model: Health Leads' model leverages the resources of corporations and government agencies to achieve its mission. This requires a deep understanding of stakeholder theory and the ability to build strong cross-sector partnerships.
- Impact Investing: Attracting impact investors requires a clear understanding of the social return on investment (SROI) generated by Health Leads' programs. This involves developing a robust social impact measurement framework.
- Growth Strategy: Health Leads can leverage social franchising to expand its reach while maintaining its core values. This requires careful consideration of organizational structure, franchisee selection, and ongoing support.
4. Recommendations
Prioritize Strategic Alliances and Social Franchising: Health Leads should focus on building strategic alliances with organizations that share its mission and have the capacity to support its expansion. This could include hospitals, health systems, community organizations, and corporations with strong corporate social responsibility programs. Additionally, Health Leads should explore the potential of social franchising to replicate its model in new markets. This would involve granting licenses to qualified organizations to operate Health Leads programs under a defined set of standards and guidelines.
Develop a Robust Social Impact Measurement Framework: Health Leads needs to develop a comprehensive system for measuring the impact of its programs. This should include quantifiable metrics that demonstrate the organization's effectiveness in connecting patients with resources, improving health outcomes, and reducing health disparities. This framework will be crucial for attracting impact investors and demonstrating the organization's value proposition.
Build a Sustainable Financial Model: Health Leads needs to diversify its revenue streams to ensure its long-term financial sustainability. This could include exploring new sources of funding, such as impact bonds, venture philanthropy, and social finance mechanisms. The organization should also consider developing a social enterprise model that generates revenue through its programs, potentially through partnerships with healthcare providers or other organizations.
Adapt Organizational Structure: As Health Leads expands, it needs to adapt its organizational structure to support growth and maintain its core values. This may involve creating new leadership roles, developing clear reporting structures, and investing in staff training and development. The organization should prioritize diversity and inclusion in its hiring practices to ensure that its workforce reflects the communities it serves.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Health Leads' core competencies, its mission, and the external environment.
- Core competencies and consistency with mission: The recommendations align with Health Leads' mission to address health disparities and its core competency in connecting patients with resources.
- External customers and internal clients: The recommendations consider the needs of both patients and partner organizations, ensuring that the organization's expansion benefits all stakeholders.
- Competitors: The recommendations consider the competitive landscape in the social entrepreneurship space and aim to differentiate Health Leads through its unique model and its commitment to social impact measurement.
- Attractiveness ' quantitative measures if applicable: The recommendations are based on the potential for increased impact, improved financial sustainability, and enhanced organizational capacity.
6. Conclusion
Health Leads has a unique opportunity to scale its impact and become a leading force in addressing health disparities. By embracing a growth strategy focused on strategic alliances and social franchising, developing a robust social impact measurement framework, and building a sustainable financial model, Health Leads can ensure its long-term success and reach millions of patients in need.
7. Discussion
Other alternatives not selected include:
- Focusing solely on organic growth: This approach would be slower and may not allow Health Leads to reach its full potential.
- Merging with a larger organization: While this could provide access to resources, it could also compromise Health Leads' independence and its unique model.
Key assumptions:
- The recommendations assume that Health Leads can successfully attract partners and franchisees who share its mission and values.
- The recommendations assume that Health Leads can develop a robust social impact measurement framework that effectively demonstrates the value of its programs.
- The recommendations assume that Health Leads can secure sufficient funding to support its growth and expansion.
8. Next Steps
- Develop a strategic plan: Health Leads should develop a comprehensive strategic plan that outlines its growth strategy, its social impact measurement framework, and its financial model.
- Identify potential partners and franchisees: The organization should identify potential partners and franchisees who align with its mission and values.
- Develop a pilot program: Health Leads should pilot its social franchising model in a new market to test its effectiveness and refine its approach.
- Secure funding: The organization should secure funding to support its growth and expansion, including exploring alternative funding sources such as impact bonds and venture philanthropy.
By taking these steps, Health Leads can position itself for sustainable growth and have a lasting impact on the lives of millions of people.
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Case Description
A nonprofit in the healthcare arena explores strategies to achieve system-level impact. Founded in 1996 with a volunteer-staffed help desk at Boston Medical Center connecting low-income patients with basic resources like heating assistance, job training, and childcare programs, by 2013 the nonprofit had grown to 6 cities and 1,000 volunteers serving over 11,000 patients annually. At the end of a successful "proof plan" period, Health Leads Co-Founder and CEO Rebecca Onie and her team faced the question of how to make meeting patients' social needs a standard part of health care in the U.S.: replicate Health Leads' proven model or instigate a social care movement?
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