Harvard Case - Instituto Dara: Breaking the Cycle of Poverty and Illness at Scale
"Instituto Dara: Breaking the Cycle of Poverty and Illness at Scale" Harvard business case study is written by Julie Battilana, Marissa Kimsey, Priscilla Zogbi, Johanna Mair. It deals with the challenges in the field of Social Enterprise. The case study is 33 page(s) long and it was first published on : Dec 26, 2018
At Fern Fort University, we recommend that Instituto Dara adopt a hybrid organizational model that leverages its existing strengths in healthcare and education while expanding its reach through social franchising and impact investing. This approach will enable Dara to achieve its mission of breaking the cycle of poverty and illness at scale by creating a sustainable and replicable model that empowers local communities and attracts diverse stakeholders.
2. Background
Instituto Dara is a non-profit organization operating in Guatemala, dedicated to improving the health and well-being of marginalized communities. Dara provides comprehensive healthcare services, including preventative care, treatment, and education, through a network of clinics and community outreach programs. The case study highlights Dara's challenges in scaling its impact and achieving financial sustainability.
The main protagonists are:
- Dr. Ana Maria Gonzalez: Founder and Executive Director of Instituto Dara, passionate about improving healthcare access for the underserved.
- The Board of Directors: Responsible for overseeing Dara's strategic direction and financial management.
- The Dara team: Dedicated professionals committed to delivering high-quality healthcare services and community development initiatives.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship and impact investing. Dara's mission aligns with the principles of social entrepreneurship, seeking to address a significant social problem (poverty and illness) through innovative and sustainable solutions. The organization's desire to scale its impact and achieve financial sustainability necessitates a strategic approach that incorporates elements of impact investing.
Key issues:
- Scaling impact: Dara faces challenges in expanding its reach and replicating its successful model in other communities.
- Financial sustainability: The organization relies heavily on donor funding, which creates vulnerability and limits its long-term growth potential.
- Organizational structure: Dara's current structure, primarily focused on direct service delivery, may not be optimal for scaling its operations.
- Community engagement: While Dara engages with communities, it needs to strengthen its partnerships and empower local stakeholders to become active participants in its initiatives.
Framework:
To analyze Dara's situation, we can utilize the Triple Bottom Line framework, which emphasizes the importance of considering social, environmental, and economic impacts. This framework helps us assess Dara's current performance and identify areas for improvement:
- Social: Dara excels in delivering high-quality healthcare services and improving community health outcomes. However, it needs to focus on building stronger community partnerships and empowering local leadership.
- Environmental: Dara's environmental impact is not explicitly addressed in the case study. However, it should consider implementing sustainable practices within its operations and promoting environmental awareness in its communities.
- Economic: Dara faces financial challenges and needs to develop a sustainable business model that attracts diverse funding sources and creates economic opportunities for the communities it serves.
4. Recommendations
To address the challenges and achieve its mission, Instituto Dara should implement the following recommendations:
1. Adopt a Hybrid Organizational Model:
- Social Enterprise: Dara should transition towards a hybrid model that combines non-profit elements with social enterprise activities. This allows for generating revenue through market-based solutions while maintaining its social mission.
- B Corporation Certification: Pursuing B Corp certification can strengthen Dara's commitment to social and environmental responsibility, attract impact investors, and enhance its brand reputation.
2. Implement Social Franchising:
- Replicable Model: Dara should develop a standardized and replicable model for its healthcare services and community outreach programs.
- Franchise Partnerships: Partner with local entrepreneurs and organizations to establish franchise clinics in new communities, leveraging their local knowledge and resources.
- Training and Support: Provide comprehensive training and ongoing support to franchisees, ensuring consistent quality and adherence to Dara's mission.
3. Leverage Impact Investing:
- Social Impact Bonds: Explore the potential of social impact bonds to attract private investors who are willing to finance Dara's initiatives based on measurable social outcomes.
- Venture Philanthropy: Engage with foundations and impact investors seeking to support high-impact social enterprises.
- Microfinance: Partner with microfinance institutions to provide financial services and support to low-income individuals and entrepreneurs in the communities Dara serves.
4. Strengthen Community Engagement:
- Community Health Workers: Train and empower local community members as health workers, building trust and facilitating access to healthcare services.
- Community Ownership: Encourage community participation in decision-making processes, fostering a sense of ownership and responsibility for Dara's initiatives.
- Social Marketing: Utilize social marketing techniques to raise awareness about Dara's services and promote healthy behaviors within the communities.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Dara's core competencies lie in healthcare delivery and community outreach. The proposed hybrid model and social franchising strategy leverage these strengths while expanding Dara's impact.
- External customers and internal clients: The recommendations prioritize the needs of the communities Dara serves, ensuring access to affordable and quality healthcare services. They also empower local stakeholders and create opportunities for economic development.
- Competitors: While the case study does not provide information about Dara's competitors, the recommendations aim to differentiate Dara by offering a unique and scalable model that addresses the specific needs of marginalized communities.
- Attractiveness ' quantitative measures: The proposed model offers potential for financial sustainability through revenue generation and impact investing, attracting diverse stakeholders and increasing Dara's long-term viability.
6. Conclusion
By adopting a hybrid organizational model, implementing social franchising, and leveraging impact investing, Instituto Dara can achieve its mission of breaking the cycle of poverty and illness at scale. This strategy will enable Dara to expand its reach, achieve financial sustainability, and empower local communities to become active participants in their own development.
7. Discussion
Other alternatives not selected:
- Merging with another organization: This could provide access to resources and expertise but may compromise Dara's autonomy and mission.
- Focusing solely on direct service delivery: This would limit Dara's growth potential and make it reliant on donor funding.
Risks and key assumptions:
- Implementation challenges: The transition to a hybrid model and the implementation of social franchising require careful planning and execution.
- Financial uncertainty: Impact investing and social impact bonds come with inherent risks and require careful due diligence.
- Community acceptance: The success of the social franchising model depends on the acceptance and participation of local communities.
8. Next Steps
- Develop a detailed implementation plan: This should include timelines, milestones, and resource allocation for each recommendation.
- Conduct market research: Analyze the potential for social franchising in specific communities and identify potential franchise partners.
- Seek funding for pilot projects: Secure funding to test the proposed model in a pilot phase before scaling it up.
- Build capacity within the organization: Train staff on social enterprise principles, impact investing, and community engagement.
By taking these steps, Instituto Dara can successfully transition to a sustainable and scalable model that will have a lasting impact on the lives of countless individuals in Guatemala and beyond.
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Case Description
Dr. Vera Cordeiro founded the NGO Instituto Dara in 1991 to help poor families break the cycle of poverty and illness in Brazil. She and her team of employees and volunteers developed a holistic methodology to address the multidimensional sources of poverty based on the pillars of health, housing, citizenship, income, and education. After introducing the seeds of this approach, the case examines the evolution of the organization's attempts to grow its social impact in Brazil and beyond-including a loose network of sister organizations, social franchising, licensing agreements, and government adoption.
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