Harvard Case - Not for Profit / Private Sector Partnerships in Sport and Physical Activity: ParticipACTION as Champion
"Not for Profit / Private Sector Partnerships in Sport and Physical Activity: ParticipACTION as Champion" Harvard business case study is written by Norm O'Reilly, George Foster. It deals with the challenges in the field of Social Enterprise. The case study is 20 page(s) long and it was first published on : May 27, 2010
At Fern Fort University, we recommend ParticipACTION adopt a multi-pronged strategy to strengthen its impact and sustainability. This involves leveraging its existing strengths in social entrepreneurship, corporate social responsibility (CSR), and strategic partnerships to create a hybrid organization that combines the best of both the non-profit and private sectors. This approach will allow ParticipACTION to achieve its mission of increasing physical activity levels in Canada while ensuring long-term financial stability and scalability.
2. Background
This case study focuses on ParticipACTION, a Canadian non-profit organization dedicated to promoting physical activity. Faced with declining physical activity levels and rising health care costs, ParticipACTION seeks to increase its impact by exploring new avenues for funding and partnerships. The case highlights the challenges of relying solely on government funding and the potential benefits of engaging the private sector.
The main protagonists are:
- ParticipACTION: A non-profit organization with a strong mission but limited resources.
- Private Sector: Companies seeking opportunities for corporate social responsibility (CSR) and shared value creation.
- Canadian Government: The primary funder of ParticipACTION, facing budgetary constraints.
3. Analysis of the Case Study
Strategic Framework: We will analyze ParticipACTION's situation using the Triple Bottom Line framework, which considers the social, environmental, and economic impacts of its actions.
Social Impact: ParticipACTION's mission is inherently social, aiming to improve public health and well-being by encouraging physical activity. This aligns with the Sustainable Development Goals (SDGs), particularly SDG 3 (Good Health and Well-being) and SDG 11 (Sustainable Cities and Communities).
Environmental Impact: Physical activity promotes environmental sustainability by reducing reliance on cars and encouraging active transportation. ParticipACTION can further integrate environmental sustainability into its programs by promoting outdoor activities and sustainable practices.
Economic Impact: By reducing healthcare costs and increasing productivity, ParticipACTION's initiatives have a positive economic impact. Partnerships with the private sector can unlock new revenue streams and create shared value creation opportunities.
Challenges:
- Funding Dependency: ParticipACTION's reliance on government funding makes it vulnerable to budget cuts.
- Limited Reach: The organization's resources are insufficient to reach all Canadians effectively.
- Lack of Private Sector Engagement: ParticipACTION has not fully leveraged the potential of private sector partnerships.
Opportunities:
- Social Entrepreneurship: ParticipACTION can explore social enterprise models to generate revenue and expand its reach.
- Corporate Social Responsibility (CSR): Companies are increasingly seeking opportunities to align their CSR initiatives with societal needs.
- Impact Investing: ParticipACTION can attract impact investors who seek both financial returns and social impact.
4. Recommendations
- Hybrid Organization Model: ParticipACTION should transition towards a hybrid organization model that combines the strengths of both the non-profit and private sectors. This involves creating a for-profit subsidiary that generates revenue through social enterprise initiatives, while the non-profit arm continues to focus on advocacy and program development.
- Strategic Partnerships: ParticipACTION should develop strategic partnerships with companies that align with its mission. These partnerships can involve co-branding, joint marketing campaigns, and impact investing.
- Social Innovation: ParticipACTION should invest in social innovation to develop new and innovative programs that address the unique needs of different communities. This can include technology-enabled solutions and community-based programs.
- Social Impact Measurement: ParticipACTION should adopt robust social impact measurement frameworks to demonstrate the effectiveness of its programs and attract investors. This will involve collecting data on participation rates, health outcomes, and economic benefits.
- Diversification of Funding Sources: ParticipACTION should diversify its funding sources beyond government grants. This can include corporate donations, impact investing, and social finance mechanisms.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission Consistency: The hybrid model and strategic partnerships align with ParticipACTION's core competencies in program development and advocacy.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (Canadians) and internal clients (staff and partners).
- Competitors: By embracing social innovation and impact investing, ParticipACTION can differentiate itself from other non-profits in the health and wellness space.
- Attractiveness: The recommendations offer a clear path to achieving financial sustainability and expanding reach, making ParticipACTION more attractive to investors and partners.
6. Conclusion
By embracing social entrepreneurship, corporate social responsibility (CSR), and strategic partnerships, ParticipACTION can become a more sustainable and impactful organization. This approach will allow it to achieve its mission of increasing physical activity levels in Canada while ensuring long-term financial stability and scalability.
7. Discussion
Other alternatives include:
- Merging with another non-profit: This could provide access to resources and expertise, but could also lead to loss of identity and control.
- Focusing solely on government funding: This is a risky strategy, as government funding is unpredictable and subject to budget cuts.
Key assumptions:
- The private sector is willing to engage in shared value creation with ParticipACTION.
- ParticipACTION can successfully develop and implement social enterprise initiatives.
- Social impact measurement frameworks can effectively demonstrate the value of ParticipACTION's programs.
8. Next Steps
- Develop a hybrid organization model: This involves creating a for-profit subsidiary and defining the roles and responsibilities of each entity.
- Identify potential partners: ParticipACTION should research companies that align with its mission and develop a strategy for engaging them.
- Develop social innovation programs: This involves investing in research and development to create new and innovative programs.
- Implement social impact measurement frameworks: ParticipACTION should collect data on program outcomes and develop a system for reporting on its impact.
- Diversify funding sources: This involves exploring opportunities for corporate donations, impact investing, and social finance.
By taking these steps, ParticipACTION can position itself for long-term success and become a leading champion for physical activity in Canada.
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Case Description
In 2009, ParticipACTION was a Toronto-based not-for-profit organization that had a storied history of inspiring and supporting active and healthy living for Canadians. Led by CEO Kelly Murumets, ParticipACTION was to lead a steering committee of representatives of the not-for-profit sector and the private sector, as well as academics, towards developing a set of 'how-to' guidelines for not-for-profit sport and physical activity organizations on forming effective partnerships with the private sector. Due to decreasing government support, the need to secure alternate resources and funding, and the proliferation of competition, sports and health organizations were extremely interested in such partnerships. Recent successes made ParticipACTION realize that it and other sports advocate organizations around the globe, needed to become more strategic and innovative in engaging private companies. Coming off of a successful internal restructuring and partnership with Coca Cola, ParticipACTION received an opportunity to be involved with the upcoming 3rd International Congress on Physical Activity and Public Health Conference (ICPAPH ). ICPAPH would attract over 1000 leaders from dozens of countries and would be an ideal forum for sharing guidelines for responsible partnerships. This case surveys sports and healthy living advocacy and explores how ParticipACTION went about leading the process to develop guidelines for private sector partnerships.
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