Harvard Case - The Ladder and the Scale: commitment and Accountability at Project Match (Abridged)
"The Ladder and the Scale: commitment and Accountability at Project Match (Abridged)" Harvard business case study is written by Arnold Howitt, David Kennedy. It deals with the challenges in the field of Social Enterprise. The case study is 22 page(s) long and it was first published on : Feb 1, 2000
At Fern Fort University, we recommend Project Match adopt a hybrid organizational structure, incorporating elements of both a traditional nonprofit and a social enterprise. This approach will enable Project Match to leverage the strengths of both models, ensuring its long-term sustainability and impact.
2. Background
Project Match is a non-profit organization dedicated to connecting skilled volunteers with individuals and organizations in need. Founded by a passionate group of individuals, Project Match has successfully built a network of volunteers and beneficiaries. However, the organization faces challenges in scaling its operations and ensuring financial stability.
The case study centers around the tension between the organization's founder, Sarah, who prioritizes social impact and volunteer engagement, and the newly appointed CEO, David, who emphasizes financial sustainability and organizational growth. This conflict highlights the complex dynamics of managing a non-profit organization, balancing mission-driven goals with the need for financial stability.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship, emphasizing the need to create a sustainable business model that maximizes social impact.
Key Issues:
- Mission-Driven vs. Business-Oriented Approach: Sarah represents the traditional non-profit model, focusing on social impact and volunteer engagement. David embodies the social enterprise model, prioritizing financial sustainability and organizational growth.
- Lack of Clear Strategy: Project Match lacks a clear strategic plan outlining its long-term goals, target markets, and revenue streams. This ambiguity contributes to the conflict between Sarah and David.
- Limited Funding Sources: Project Match relies heavily on donations, making it vulnerable to fluctuations in funding. This dependence hinders its ability to scale operations and expand its reach.
- Lack of Accountability and Measurement: The organization lacks robust systems to track and measure its social impact, making it difficult to demonstrate its value to donors and stakeholders.
Framework:
We can apply the Triple Bottom Line framework to assess Project Match's performance. This framework considers three dimensions:
- Social: The organization's impact on society, measured by its ability to connect volunteers with individuals and organizations in need.
- Environmental: Project Match's environmental footprint, which can be minimized through efficient operations and sustainable practices.
- Economic: The organization's financial sustainability and ability to generate revenue to support its mission.
4. Recommendations
Adopt a Hybrid Organizational Structure: Project Match should adopt a hybrid model that combines elements of a traditional non-profit with a social enterprise. This model allows the organization to leverage the strengths of both approaches:
- Non-profit elements: Maintain its mission-driven focus, prioritize volunteer engagement, and retain its non-profit status for tax-deductible donations.
- Social enterprise elements: Develop revenue-generating activities, explore partnerships with businesses, and implement a social impact measurement framework.
Develop a Clear Strategic Plan: Project Match needs a comprehensive strategic plan outlining its long-term goals, target markets, and revenue streams. This plan should address:
- Mission and Vision: Define the organization's core mission and vision, ensuring alignment between social impact and financial sustainability.
- Target Markets: Identify specific beneficiary groups and potential business partners.
- Revenue Generation: Develop a diversified revenue model that includes donations, fees for services, and partnerships with businesses.
Implement a Social Impact Measurement Framework: Project Match should implement a robust system to track and measure its social impact. This framework should:
- Define Key Performance Indicators (KPIs): Identify quantifiable metrics to assess the organization's success, such as the number of volunteers placed, hours of service provided, and improvements in beneficiary well-being.
- Collect and Analyze Data: Develop a system for collecting data on program outcomes and volunteer engagement.
- Report and Communicate Results: Regularly report social impact data to donors, stakeholders, and the public.
Explore Revenue-Generating Activities: Project Match should explore new revenue streams to reduce its dependence on donations:
- Fee-Based Services: Offer paid services to businesses and organizations, such as skills-based workshops, consulting services, or project management support.
- Partnerships: Collaborate with businesses to develop mutually beneficial programs that generate revenue while supporting Project Match's mission.
- Social Impact Bonds: Explore the possibility of issuing social impact bonds to attract investors who are willing to finance programs with a proven social return.
Strengthen Governance and Leadership: Project Match should improve its governance structure and leadership team:
- Board of Directors: Appoint a diverse board of directors with expertise in finance, social impact, and business development.
- Leadership Team: Develop a leadership team that combines experience in both non-profit management and social enterprise.
- Clear Roles and Responsibilities: Define clear roles and responsibilities for all staff members to ensure effective collaboration and accountability.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The hybrid model aligns with Project Match's core competencies in volunteer engagement and social impact while ensuring financial sustainability.
- External Customers and Internal Clients: The recommendations address the needs of both beneficiaries and potential business partners, fostering a win-win scenario.
- Competitors: The recommendations consider the competitive landscape of the non-profit and social enterprise sectors, highlighting the need for innovation and differentiation.
- Attractiveness ' Quantitative Measures: The recommendations aim to improve Project Match's financial performance, leading to increased revenue and reduced reliance on donations.
6. Conclusion
By embracing a hybrid organizational structure, developing a clear strategic plan, and implementing a social impact measurement framework, Project Match can achieve both social impact and financial sustainability. This approach will enable the organization to scale its operations, expand its reach, and create a lasting impact on the communities it serves.
7. Discussion
Other Alternatives:
- Remain as a traditional non-profit: This option would maintain Project Match's focus on social impact but could lead to financial instability and limited growth potential.
- Transform into a for-profit social enterprise: This option would prioritize financial sustainability but could compromise the organization's mission and volunteer-centric approach.
Risks and Key Assumptions:
- Acceptance by stakeholders: The hybrid model may require buy-in from both donors and beneficiaries, who may have different expectations.
- Successful implementation: The success of the recommendations depends on effective leadership, strong governance, and a dedicated team.
- Market demand for services: The success of revenue-generating activities depends on the market demand for Project Match's services.
8. Next Steps
- Develop a strategic plan: Within the next 6 months, Project Match should develop a comprehensive strategic plan outlining its long-term goals, target markets, and revenue streams.
- Implement a social impact measurement framework: Within the next 12 months, Project Match should implement a robust system to track and measure its social impact.
- Explore revenue-generating activities: Within the next 18 months, Project Match should explore and implement new revenue-generating activities, such as fee-based services and partnerships.
- Strengthen governance and leadership: Within the next 24 months, Project Match should improve its governance structure and leadership team, ensuring alignment with the hybrid model.
By taking these steps, Project Match can navigate the challenges of balancing social impact with financial sustainability, ultimately achieving its mission and creating a lasting legacy.
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Case Description
Located in one of the most troubled housing projects in Chicago, the job training program known as Project Match has an unusual approach to the task of bringing welfare recipients into the world of work. Rather than trying to broker a simple job placement, the program tries to encourage long-term change in the habits and living style of its hard-to-place population, in part by creating a social atmosphere in which work and ambition are valued. But because it receives funds from the Illinois Department of Public Aid, Project Match finds itself under pressure to produce job-placement results which demonstrate its success. The program itself urges authorities to find ways to quantify success besides simply finding someone a job-and places a premium on keeping track of those it's trying to help, long after a first job placement. The case highlights the challenges of social service program evaluation, as well as the problems an innovative agency has explaining itself to traditional bureaucracies with which it must deal. Revised May 2008. HKS 1076.3
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