Harvard Case - Vivian Lowery Derryck and African Governance
"Vivian Lowery Derryck and African Governance" Harvard business case study is written by Rosabeth Moss Kanter, Kelsi Stine-Rowe. It deals with the challenges in the field of Social Enterprise. The case study is 17 page(s) long and it was first published on : Aug 30, 2016
At Fern Fort University, we recommend Vivian Lowery Derryck adopt a hybrid organizational model that leverages the strengths of both nonprofit and for-profit structures to maximize her impact on African governance. This model will enable her to:
- Scale her social impact by attracting both philanthropic and investment capital.
- Develop sustainable business models that generate revenue and create jobs.
- Build strategic partnerships with governments, businesses, and international organizations.
2. Background
Vivian Lowery Derryck is a passionate advocate for good governance in Africa. She founded the African Governance Initiative (AGI) to promote transparency, accountability, and citizen participation in government. AGI operates primarily as a nonprofit organization, relying on grants and donations to fund its activities. However, Derryck recognizes the limitations of this model in achieving sustainable and scalable impact.
The case study highlights several challenges facing AGI:
- Limited funding: Dependence on grants and donations makes AGI vulnerable to funding fluctuations and limits its ability to expand its reach.
- Lack of market-driven solutions: AGI's focus on advocacy and capacity building doesn't generate revenue, hindering its ability to create self-sustaining programs.
- Difficulty in attracting and retaining talent: The nonprofit sector often struggles to offer competitive salaries and benefits, making it challenging to attract and retain skilled professionals.
3. Analysis of the Case Study
To address these challenges, we can analyze AGI's situation using the Social Enterprise Framework. This framework considers the organization's social mission, business model, and impact measurement.
Social Mission: AGI's mission is to promote good governance in Africa. This mission aligns with the Sustainable Development Goals (SDGs), particularly SDG 16: Peace, Justice, and Strong Institutions.
Business Model: AGI currently operates as a nonprofit business model, relying on donations and grants. However, this model is not sustainable in the long term. To achieve scalability, AGI needs to adopt a hybrid business model that incorporates both social impact and financial sustainability.
Impact Measurement: AGI needs to develop robust impact measurement frameworks to track its progress and demonstrate its value to stakeholders. This can be achieved through Social Return on Investment (SROI) analysis and other impact measurement tools.
4. Recommendations
Establish a Social Enterprise Division: Create a separate division within AGI dedicated to developing and implementing social enterprise initiatives. This division would focus on creating revenue-generating activities that align with AGI's mission.
Develop Sustainable Business Models: Explore various social enterprise business models that can generate revenue while addressing governance challenges in Africa. These models could include:
- Providing consulting services: Offering expertise in governance, transparency, and accountability to governments and businesses.
- Developing technology solutions: Creating software and platforms that promote citizen engagement and transparency.
- Establishing social enterprises: Launching businesses that create jobs and generate revenue while addressing specific social issues.
Seek Impact Investment: Attract impact investors who are interested in generating both financial returns and social impact. This can be achieved by developing a strong impact investment thesis that outlines AGI's social mission, business model, and impact measurement framework.
Build Strategic Partnerships: Forge strategic partnerships with governments, businesses, and international organizations. These partnerships can provide access to resources, expertise, and market opportunities.
Develop a Strong Brand Identity: Build a strong brand identity that resonates with potential investors, partners, and beneficiaries. This will help AGI attract talent, resources, and support.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The proposed hybrid model aligns with AGI's mission to promote good governance in Africa while ensuring long-term sustainability.
- External customers and internal clients: The model caters to both the needs of external stakeholders (governments, businesses, investors) and internal clients (AGI staff, beneficiaries).
- Competitors: The model positions AGI to compete effectively in the growing social enterprise sector.
- Attractiveness ' quantitative measures: The model has the potential to generate significant financial returns while delivering positive social impact, measured through SROI analysis and other impact measurement tools.
6. Conclusion
By adopting a hybrid organizational model and embracing social enterprise principles, AGI can significantly enhance its impact on African governance. This approach will enable AGI to achieve financial sustainability, attract investment capital, and create scalable solutions that address the critical challenges facing the continent.
7. Discussion
Alternatives:
- Remaining solely a nonprofit: This would limit AGI's ability to scale its impact and achieve financial sustainability.
- Becoming a fully for-profit entity: This could compromise AGI's social mission and make it less attractive to donors and impact investors.
Risks:
- Market risk: The social enterprise market is still developing, and there is no guarantee of success for all social enterprises.
- Operational risk: Implementing a hybrid model requires careful planning and execution to ensure both financial and social impact.
- Reputational risk: AGI needs to maintain transparency and accountability to maintain its reputation and attract stakeholders.
Key Assumptions:
- AGI has the capacity to develop and implement effective social enterprise initiatives.
- There is a market for AGI's services and products.
- Impact investors are willing to invest in AGI's social mission.
8. Next Steps
- Develop a detailed business plan: Outline the specific social enterprise initiatives, business models, and impact measurement frameworks.
- Establish the Social Enterprise Division: Recruit skilled professionals with expertise in social enterprise, business development, and impact measurement.
- Seek impact investment: Develop an impact investment thesis and pitch it to potential investors.
- Build strategic partnerships: Engage with governments, businesses, and international organizations to explore collaboration opportunities.
- Implement a robust impact measurement framework: Track the progress of social enterprise initiatives and demonstrate their social and financial impact.
By taking these steps, AGI can successfully transition to a hybrid model, achieving both financial sustainability and significant social impact in its mission to promote good governance in Africa.
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Case Description
As a veteran international development specialist, Vivian Lowery Derryck spent 35 years trying to influence governments in Africa by working with State Department and United States Agency for International Development (USAID) officials, African heads of state, and non-profit leaders across the continent. She believed the right outside pressure and expert collaboration could meaningfully shape U.S. foreign policy toward Africa and improve democracy in African governance. Derryck left her tenure as Senior Vice President and Director of Public-Private Partnerships at the former Academy for Educational Development (AED) and joined the inaugural Advanced Leadership Initiative Fellowship program at Harvard University. She thought it would be an ideal opportunity to build on a long-standing desire to start an institute to build African democracy and strengthen good governance on the continent. She launched the Bridges Institute to promote civil society as a pivotal actor in bringing about more inclusive and effective policy dialogue in Africa. This case follows her journey and raises important questions about how to achieve such large scale change.
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