Harvard Case - PROTECTA - Promoting Civil Society in Serbia
"PROTECTA - Promoting Civil Society in Serbia" Harvard business case study is written by Christine W. Letts, Ian Cornell. It deals with the challenges in the field of Social Enterprise. The case study is 19 page(s) long and it was first published on : May 11, 2010
At Fern Fort University, we recommend that PROTECTA implement a hybrid organizational model incorporating elements of both nonprofit and social enterprise structures. This approach will allow PROTECTA to leverage the benefits of both models, enabling it to achieve its mission of promoting civil society in Serbia while also ensuring its long-term financial sustainability.
2. Background
PROTECTA is a Serbian non-governmental organization (NGO) dedicated to promoting civil society through various initiatives, including training, advocacy, and capacity building. Founded in 2001, PROTECTA has a strong track record of success in fostering democratic values and promoting good governance in Serbia. However, the organization faces challenges in securing consistent funding and scaling its impact.
The main protagonists of the case study are:
- Slobodan Djordjevic: PROTECTA's Executive Director, who is passionate about the organization's mission and committed to finding innovative solutions to ensure its sustainability.
- The PROTECTA Board: The board comprises experienced professionals from various sectors, providing guidance and oversight for the organization.
- The PROTECTA Team: Dedicated staff members who are committed to the organization's mission and strive to make a positive impact on Serbian society.
3. Analysis of the Case Study
PROTECTA's current model relies heavily on grants and donations, which can be unpredictable and unsustainable in the long term. This reliance on external funding limits PROTECTA's ability to scale its operations and reach a wider audience.
To address this challenge, we recommend a hybrid organizational model that combines the strengths of both nonprofit and social enterprise structures. This approach will enable PROTECTA to:
- Generate revenue: By developing social enterprises that offer valuable products or services while aligning with the organization's mission, PROTECTA can create a sustainable revenue stream. This can include offering consulting services, developing educational programs with a fee structure, or establishing a social enterprise focused on environmental sustainability.
- Increase impact: The generated revenue can be reinvested into core programs and initiatives, allowing PROTECTA to expand its reach and impact on Serbian society.
- Enhance flexibility: The hybrid model offers greater flexibility in fundraising and resource allocation, enabling PROTECTA to adapt to changing needs and opportunities.
Key Frameworks:
- Stakeholder Theory: By involving stakeholders in the development and implementation of the hybrid model, PROTECTA can ensure buy-in and support from various groups, including beneficiaries, donors, and partners.
- Social Impact Measurement: Implementing robust social impact measurement frameworks will allow PROTECTA to track the effectiveness of its programs and demonstrate the value of its work to stakeholders.
- Triple Bottom Line: The hybrid model will enable PROTECTA to focus on a triple bottom line approach, considering social, environmental, and economic impacts, ensuring its long-term sustainability and positive impact on Serbian society.
4. Recommendations
- Develop a Social Enterprise Strategy: PROTECTA should conduct a thorough market analysis to identify potential social enterprise opportunities that align with its mission and have a strong market demand. This could include developing training programs for small businesses, offering consulting services to NGOs, or establishing a social enterprise focused on sustainable agriculture.
- Establish a Social Enterprise Unit: Creating a dedicated unit within PROTECTA to manage social enterprise activities will ensure focus and expertise in this area. This unit will be responsible for developing business plans, managing operations, and ensuring financial sustainability.
- Seek External Funding: PROTECTA should explore opportunities for impact investing and venture philanthropy to support the development and scaling of its social enterprises. This can involve partnering with impact investors, foundations, and other organizations interested in supporting social innovation.
- Build Strategic Partnerships: Establishing partnerships with businesses, government agencies, and other NGOs can provide access to resources, expertise, and networks that can support the development and growth of PROTECTA's social enterprises.
- Develop a Social Impact Measurement Framework: Implementing a robust social impact measurement framework will allow PROTECTA to track the social and environmental impact of its social enterprises, providing evidence of its value and ensuring accountability to stakeholders.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The proposed hybrid model aligns with PROTECTA's mission of promoting civil society in Serbia by leveraging its expertise in training, advocacy, and capacity building to develop sustainable social enterprises.
- External Customers and Internal Clients: The social enterprises will cater to the needs of both external customers (e.g., businesses, NGOs, individuals) and internal clients (e.g., beneficiaries of PROTECTA's programs).
- Competitors: The proposed social enterprises will be positioned to compete effectively in the market by offering unique value propositions and leveraging PROTECTA's strong reputation and expertise.
- Attractiveness: The hybrid model offers a sustainable and scalable approach to achieving PROTECTA's mission, with the potential to generate significant social impact and long-term financial stability.
6. Conclusion
By adopting a hybrid organizational model, PROTECTA can leverage the strengths of both nonprofit and social enterprise structures to achieve its mission of promoting civil society in Serbia while ensuring its long-term financial sustainability. This approach will enable PROTECTA to generate revenue, increase its impact, and enhance its flexibility in responding to changing needs and opportunities.
7. Discussion
- Alternative Options: Other alternatives include:
- Focusing solely on grant funding: This approach would require PROTECTA to continue seeking grants and donations, which can be unpredictable and unsustainable in the long term.
- Merging with another organization: This option could provide access to resources and expertise but may compromise PROTECTA's independence and mission.
- Risks: The hybrid model carries risks, including:
- Distraction from core mission: If not carefully managed, the social enterprise activities could distract from PROTECTA's core mission of promoting civil society.
- Financial challenges: Developing and managing social enterprises requires expertise and resources, and there is no guarantee of financial success.
- Key Assumptions: The success of the hybrid model relies on key assumptions, including:
- Market demand for social enterprises: There must be a sufficient market demand for the products or services offered by PROTECTA's social enterprises.
- Access to funding and resources: PROTECTA must be able to secure funding and resources to support the development and scaling of its social enterprises.
8. Next Steps
- Develop a detailed business plan: This plan should outline the proposed social enterprises, their target markets, revenue models, and projected financial performance.
- Establish a dedicated social enterprise unit: This unit will be responsible for managing the social enterprise activities and ensuring their alignment with PROTECTA's mission.
- Seek funding and partnerships: PROTECTA should actively seek funding from impact investors, foundations, and other organizations interested in supporting social innovation.
- Implement a social impact measurement framework: This framework will allow PROTECTA to track the social and environmental impact of its social enterprises and ensure accountability to stakeholders.
By taking these steps, PROTECTA can successfully implement a hybrid organizational model that will enable it to achieve its mission of promoting civil society in Serbia while ensuring its long-term financial sustainability.
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Case Description
In 1997 three students joined a protest against the electoral victory of Slobodan Milosevic's Serbian Socialist Party. Upon the protest's ultimate defeat, and Milosevic's return to power, the students vowed to continue the struggle for civic activism in Serbia. Their efforts manifested in the creation of the Centre for Civil Society Development PROTECTA, an NGO committed to promoting civic engagement throughout Serbia. Twelve years following the protests PROTECTA has a budget of half-a-million Euro, twenty full-time employees, and working relationships with major public and private international donors. The story is more impressive considering that this organizational growth took place during extreme political, economic, and social upheaval. This case offers students an opportunity to recount the rise of the organization under increasingly trying personal, political and professional circumstances, namely war and a repressive state. These circumstances call into question some potential ethical concerns regarding management in a hostile political environment. It also offers an opportunity for students to make a decision and plot strategy for the organization's future in areas such as leadership transition, core competencies, financial sustainability, and staffing. HKS Case Number 1924.0
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