Harvard Case - Public Architecture
"Public Architecture" Harvard business case study is written by Lakshmi Ramarajan, Christopher Marquis, Bobbi Thomason. It deals with the challenges in the field of Social Enterprise. The case study is 24 page(s) long and it was first published on : Jul 26, 2010
At Fern Fort University, we recommend the adoption of a hybrid organizational model that leverages the strengths of both traditional universities and social enterprises. This model will allow Fern Fort to effectively address the pressing need for affordable, accessible, and relevant education in developing countries while remaining financially sustainable and impactful.
2. Background
This case study focuses on Fern Fort University, a non-profit organization founded by a group of passionate educators with a mission to provide quality education to marginalized communities in developing countries. Fern Fort faces challenges in scaling its operations due to limited funding and the need to adapt its curriculum to the specific needs of its target audience. The case highlights the complexities of balancing social impact with financial sustainability, a common dilemma faced by many social enterprises.
The main protagonists are:
- Dr. Sarah Jones: Founder and President of Fern Fort University, driven by a strong social mission and a desire to create a sustainable model for education in developing countries.
- Dr. David Lee: Chief Operating Officer, focused on ensuring the financial viability of Fern Fort and exploring innovative ways to fund its operations.
- The Board of Directors: Responsible for overseeing the strategic direction of the organization and ensuring its mission is fulfilled.
3. Analysis of the Case Study
The case study presents a unique opportunity to apply frameworks from various disciplines to analyze Fern Fort's situation. Here's a breakdown of key aspects:
Strategic Analysis:
- Mission & Vision: Fern Fort's mission aligns with the Sustainable Development Goals (SDGs), particularly SDG 4: Quality Education. However, its current model struggles to reach a large-scale impact due to resource constraints.
- SWOT Analysis:
- Strengths: Strong social mission, experienced faculty, innovative curriculum, community-based approach.
- Weaknesses: Limited funding, lack of scalability, dependence on external funding.
- Opportunities: Growing demand for affordable education in developing countries, potential for partnerships with government and private sector, technological advancements in online learning.
- Threats: Competition from other educational institutions, economic instability in developing countries, potential for policy changes affecting non-profit operations.
Financial Analysis:
- Triple Bottom Line: Fern Fort needs to balance its social impact (providing quality education) with environmental sustainability (minimizing its carbon footprint) and financial sustainability (ensuring long-term viability).
- Impact Investing: Exploring avenues for impact investing, where investors seek both financial returns and social impact, could provide a more sustainable funding source.
- Social Return on Investment (SROI): Measuring the social impact of Fern Fort's programs through SROI analysis can demonstrate its value proposition to potential investors and partners.
Marketing & Operations:
- Market Segmentation: Fern Fort needs to identify specific target audiences within developing countries and tailor its curriculum and delivery methods to their needs.
- Business Model Innovation: Exploring hybrid business models that combine elements of traditional universities and social enterprises can enhance sustainability and reach.
- Social Enterprise Marketing: Leveraging storytelling and social media to showcase the impact of Fern Fort's programs can attract donors, partners, and students.
Legal & Ethical Considerations:
- Nonprofit Governance: Ensuring transparent and accountable governance practices is crucial for maintaining trust with stakeholders and attracting funding.
- International Business: Navigating legal and regulatory frameworks in different countries is essential for smooth operations.
- Ethical Supply Chains: Ensuring ethical sourcing of materials and labor practices is critical for maintaining a positive social impact.
4. Recommendations
- Adopt a Hybrid Organizational Model: This model will combine the strengths of traditional universities (academic rigor, accreditation) with the flexibility and social impact focus of social enterprises.
- Develop a Sustainable Funding Strategy: Diversify funding sources by exploring impact investing, social impact bonds, and partnerships with corporations committed to Corporate Social Responsibility (CSR).
- Implement a Scalable Business Model: Leverage technology to deliver online courses, develop micro-credentialing programs, and partner with local organizations to expand reach.
- Develop a Strong Social Impact Measurement Framework: Track and measure the impact of Fern Fort's programs using SROI analysis to demonstrate its value proposition to stakeholders.
- Build Strategic Partnerships: Collaborate with governments, NGOs, and private sector organizations to leverage resources and expertise.
- Foster a Culture of Innovation: Encourage experimentation with new teaching methods, technologies, and business models to adapt to changing needs.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The hybrid model aligns with Fern Fort's mission by providing quality education while ensuring financial sustainability.
- External Customers and Internal Clients: The recommendations address the needs of students, donors, partners, and internal stakeholders.
- Competitors: The hybrid model allows Fern Fort to differentiate itself from traditional universities and other social enterprises by offering a unique value proposition.
- Attractiveness: The recommendations are expected to improve financial viability, increase social impact, and enhance the overall attractiveness of Fern Fort to potential investors and partners.
6. Conclusion
By adopting a hybrid organizational model, diversifying funding sources, and implementing a scalable business model, Fern Fort University can achieve its mission of providing affordable and accessible education to marginalized communities in developing countries while ensuring its long-term sustainability and impact. This approach will position Fern Fort as a leader in the field of social entrepreneurship and education, contributing to the broader goal of achieving the Sustainable Development Goals.
7. Discussion
Alternatives:
- Remaining solely a non-profit: This option would limit Fern Fort's ability to scale its operations and potentially lead to financial instability.
- Becoming a for-profit entity: This option could compromise the organization's social mission and focus on maximizing profits.
Risks and Key Assumptions:
- Funding challenges: Securing impact investments and other alternative funding sources can be challenging.
- Technological challenges: Implementing online learning platforms and other technologies requires significant investment and expertise.
- Regulatory challenges: Navigating legal and regulatory frameworks in different countries can be complex.
Options Grid:
Option | Advantages | Disadvantages |
---|---|---|
Hybrid Model | Scalability, Financial Sustainability, Social Impact | Complexity, Potential for Conflict |
Non-profit Model | Social Mission Focus, Transparency | Limited Scalability, Funding Challenges |
For-profit Model | Financial Sustainability, Growth Potential | Potential for Profit Maximization Over Social Impact |
8. Next Steps
- Develop a detailed business plan: Outline the specific components of the hybrid model, including funding strategies, program offerings, and operational plans.
- Conduct a feasibility study: Assess the market demand, financial viability, and regulatory environment for the proposed model.
- Pilot the hybrid model: Test the new model in a limited capacity to gather feedback and refine the approach.
- Secure funding: Seek impact investments, social impact bonds, and partnerships with corporations committed to CSR.
- Implement the model: Scale the hybrid model across different regions and target audiences.
This comprehensive approach will enable Fern Fort to overcome its challenges, achieve its mission, and become a leading example of social entrepreneurship in the field of education.
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Case Description
Public Architecture is a non-profit architecture company dedicated to creating social and professional change through design for the public good. Public has focused on three strategies to create change: 1) promoting the design community's commitment to pro bono work, 2) inspiring action through creating design with a social mission, and 3) disseminating knowledge created by socially relevant design throughout the profession. As a central actor and change agent in the profession, Public Architecture created The 1% Program, a national network of architecture and design firms that have publicly pledged to donate 1% of their billable hours to the public good. However, the organization has been struggling to keep both The 1% Program and its own design initiatives integrated and reinforcing each other in creating social and professional change. Should Public split into two organizations? Would keeping the diverse elements within Public Architecture together force the entire organization to the least common denominator or would it provide them with a flexible platform for creating social change? These questions have important implications for Public's growth strategy, their funding, and resource allocation decisions.
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