Harvard Case - United Way
"United Way" Harvard business case study is written by Allen S. Grossman, Catherine Ross. It deals with the challenges in the field of Social Enterprise. The case study is 29 page(s) long and it was first published on : Sep 4, 2009
At Fern Fort University, we recommend that United Way (UW) embark on a strategic transformation focused on social innovation and impact investing. This involves embracing a triple bottom line approach, prioritizing social impact measurement and sustainable business models, and actively engaging in cross-sector partnerships to amplify its impact. This transformation should be guided by a clear mission statement focused on social value creation and community development, while leveraging technology to enhance efficiency and reach.
2. Background
The case study focuses on United Way, a major non-profit organization facing challenges in maintaining relevance and impact in a changing social landscape. UW's traditional model of fundraising and grant-making is being questioned, as donors seek more direct and tangible evidence of impact. The organization is grappling with declining donations, increasing competition from other non-profits, and the need to adapt to evolving social needs.
The main protagonists are Brian Gallagher, the CEO of UW, and his team who are tasked with developing a new strategy to address these challenges. They are exploring various options, including expanding into new areas like social entrepreneurship and impact investing, while considering the organization's core values and legacy.
3. Analysis of the Case Study
To analyze UW's situation, we can utilize the Stakeholder Theory framework. This framework helps us understand the various stakeholders involved and their interests, which are crucial for developing a successful strategy.
Key Stakeholders and Interests:
- Donors: Seeking greater transparency, accountability, and demonstrable impact from their contributions.
- Beneficiaries: Demanding more effective and impactful solutions to address their needs.
- Staff: Seeking opportunities for professional development, innovation, and a sense of purpose.
- Community Partners: Looking for collaboration and resource sharing to maximize impact.
- Government: Seeking effective solutions to social problems and efficient use of public resources.
Challenges and Opportunities:
- Declining Donations: UW needs to find new ways to attract and retain donors by demonstrating its value proposition and impact.
- Competition: UW faces competition from other non-profits and social enterprises, necessitating a clear differentiation strategy.
- Evolving Social Needs: UW must adapt to changing social needs and explore new solutions, such as social innovation and impact investing.
- Technological Advancements: Leveraging technology to improve efficiency, reach, and impact measurement is crucial.
4. Recommendations
To address these challenges and capitalize on opportunities, UW should adopt the following recommendations:
- Embrace Social Innovation: UW should actively invest in and support social entrepreneurship by establishing an impact investing arm. This could involve providing seed funding, mentorship, and resources to social enterprises addressing key social challenges.
- Develop Sustainable Business Models: UW should explore hybrid organizational structures that combine traditional fundraising with social enterprise activities. This could involve creating social enterprises that generate revenue while addressing social needs, thereby increasing financial sustainability and impact.
- Prioritize Impact Measurement: UW should implement robust social impact measurement frameworks to track and evaluate the effectiveness of its programs and investments. This data can be used to demonstrate value to donors, attract new funding, and inform future strategy.
- Foster Cross-Sector Partnerships: UW should actively seek strategic alliances with corporations, government agencies, and other non-profits to leverage resources, expertise, and reach. This could involve co-creating programs, sharing data, and collaborating on joint initiatives.
- Leverage Technology: UW should leverage technology to improve efficiency, reach, and impact measurement. This could involve implementing online platforms for fundraising, impact reporting, and connecting donors with beneficiaries.
- Develop a Clear Mission Statement: UW should articulate a clear and compelling mission statement focused on social value creation and community development. This will provide a guiding framework for all activities and attract stakeholders who align with its values.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The recommendations align with UW's core competencies in community engagement, resource mobilization, and program development. They also strengthen the organization's mission by focusing on social innovation and impact investing, which are critical for addressing evolving social needs.
- External Customers and Internal Clients: The recommendations address the needs of donors, beneficiaries, staff, and community partners by providing greater transparency, accountability, and impact. They also empower staff by creating opportunities for innovation and leadership.
- Competitors: By embracing social entrepreneurship and impact investing, UW can differentiate itself from traditional non-profits and position itself as a leader in the evolving social sector.
- Attractiveness: The recommendations are attractive to donors and investors seeking to invest in organizations with a strong track record of impact and a clear vision for the future.
6. Conclusion
By embracing social innovation, impact investing, and sustainable business models, United Way can transform itself into a more relevant and impactful organization. This transformation will require a commitment to social impact measurement, cross-sector partnerships, and technology, while remaining true to its core values and mission.
7. Discussion
Other alternatives not selected include:
- Maintaining the status quo: This option carries significant risks, as it would likely result in continued decline in donations and relevance.
- Focusing solely on traditional fundraising: This option would limit UW's ability to address evolving social needs and compete with other organizations.
The key assumptions of our recommendations include:
- A willingness of UW leadership to embrace change and innovation.
- The availability of resources and expertise to implement the recommendations.
- A positive response from donors and investors to UW's new approach.
8. Next Steps
To implement these recommendations, UW should:
- Form a task force: Assemble a team of internal and external experts to develop a detailed implementation plan.
- Conduct a feasibility study: Assess the financial, operational, and strategic implications of the recommendations.
- Pilot test new initiatives: Launch pilot programs to test the effectiveness of social entrepreneurship and impact investing models.
- Develop a communication strategy: Communicate the transformation to stakeholders, highlighting the benefits and impact.
- Monitor and evaluate progress: Regularly track progress towards achieving the desired outcomes and make adjustments as needed.
By taking these steps, United Way can successfully navigate the changing social landscape and continue to make a meaningful impact on communities around the world.
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Case Description
After United Way CEO Brian Gallagher began shifting the organization's focus from old-school fundraising to community impact, Gallagher and local leaders like Elise Buik, CEO of the United Way of Greater Los Angeles, faced a series of challenges regarding how to best use United Way's resources to address the root causes of social problems.
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