Harvard Case - Human Rights Watch: The $100 Million Decision (Part A)
"Human Rights Watch: The $100 Million Decision (Part A)" Harvard business case study is written by Tanya Giannelia, Yves Plourde. It deals with the challenges in the field of Strategy. The case study is 13 page(s) long and it was first published on : Jan 17, 2021
At Fern Fort University, we recommend that Human Rights Watch (HRW) adopt a multi-pronged strategy to address the $100 million funding gap. This strategy should focus on diversifying revenue streams, optimizing existing operations, and leveraging technology and innovation to enhance impact and reach new audiences.
2. Background
This case study explores the financial challenges faced by Human Rights Watch, a renowned non-profit organization dedicated to promoting human rights globally. HRW relies heavily on individual donations, but faces a growing funding gap due to increased competition for donor dollars and evolving philanthropic trends. The organization must navigate a complex landscape of competing priorities, donor expectations, and the need to maintain its independence and credibility.
The main protagonists are Kenneth Roth, the Executive Director of HRW, and the organization's leadership team, who are tasked with developing a sustainable funding strategy to secure the future of HRW and its mission.
3. Analysis of the Case Study
To analyze the situation, we can utilize several frameworks:
a) SWOT Analysis:
- Strengths: Strong brand reputation, global reach, experienced staff, impactful research and advocacy, independent and credible.
- Weaknesses: Reliance on individual donations, limited diversified revenue streams, potential for donor fatigue, resource constraints, evolving donor preferences.
- Opportunities: Growing awareness of human rights issues, increasing demand for transparency and accountability, technological advancements for communication and engagement, potential for partnerships with corporations and foundations.
- Threats: Competition from other NGOs, economic downturn, political instability, donor skepticism, changing media landscape.
b) Porter's Five Forces:
- Threat of New Entrants: High, due to the relatively low barriers to entry for NGOs, but potential for differentiation based on expertise and impact.
- Bargaining Power of Buyers (Donors): High, as donors have numerous options and can influence organizational priorities.
- Bargaining Power of Suppliers: Low, as HRW relies on a diverse range of suppliers for its operations.
- Threat of Substitute Products: Moderate, as other organizations may address similar issues through different approaches.
- Competitive Rivalry: High, due to the increasing number of NGOs competing for resources and attention.
c) Value Chain Analysis:
HRW's value chain consists of research, advocacy, communication, fundraising, and administration. Each stage contributes to the organization's overall impact and value proposition. The case highlights the need to optimize the efficiency and effectiveness of each stage, particularly fundraising, to address the funding gap.
d) Business Model Innovation:
HRW's current business model relies heavily on individual donations. To address the funding gap, the organization needs to explore business model innovation, such as:
- Developing new revenue streams: Corporate partnerships, foundation grants, social impact bonds, membership programs, online fundraising platforms, and merchandise sales.
- Expanding its reach: Targeting new donor segments, including millennials and high-net-worth individuals, and leveraging social media and digital platforms for outreach.
- Creating innovative content: Engaging storytelling, multimedia content, and interactive experiences to connect with audiences and increase engagement.
4. Recommendations
HRW should implement a multi-faceted strategy to address the funding gap:
a) Diversify Revenue Streams:
- Develop a comprehensive fundraising strategy: Target a wider range of donors, including foundations, corporations, and high-net-worth individuals.
- Explore innovative funding mechanisms: Social impact bonds, crowdfunding platforms, and impact investing.
- Leverage corporate partnerships: Partner with companies committed to social responsibility and human rights, creating mutually beneficial collaborations.
- Develop membership programs: Offer exclusive benefits and engagement opportunities to attract and retain loyal supporters.
b) Optimize Existing Operations:
- Streamline fundraising processes: Implement efficient systems for donor management, communication, and engagement.
- Enhance resource allocation: Conduct a thorough review of operational costs and identify areas for optimization.
- Develop a data-driven approach: Utilize analytics and technology to understand donor behavior and personalize communication.
- Invest in staff development: Build capacity and expertise in fundraising, communication, and technology.
c) Leverage Technology and Innovation:
- Develop a digital fundraising strategy: Utilize social media, email marketing, and online platforms to reach new audiences and engage existing supporters.
- Explore emerging technologies: Artificial intelligence (AI) and machine learning can be used to personalize donor communication and optimize fundraising efforts.
- Create innovative content: Develop interactive experiences, multimedia storytelling, and engaging campaigns to connect with audiences.
- Invest in data analytics: Track key performance indicators (KPIs) to measure the effectiveness of fundraising efforts and identify areas for improvement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with HRW's core competencies in research, advocacy, and communication, while ensuring the organization remains true to its mission of promoting human rights.
- External customers and internal clients: The recommendations address the needs of diverse stakeholders, including donors, staff, and the communities HRW serves.
- Competitors: The recommendations take into account the competitive landscape and aim to differentiate HRW through innovation, impact, and engagement.
- Attractiveness ' quantitative measures: While specific financial projections are not available in this case study, the recommendations aim to increase revenue, optimize costs, and enhance impact, ultimately contributing to a sustainable financial future for HRW.
6. Conclusion
By adopting a multi-pronged strategy that diversifies revenue streams, optimizes existing operations, and leverages technology and innovation, Human Rights Watch can overcome the $100 million funding gap and secure its future. This approach will enable the organization to continue its vital work of promoting human rights globally and achieving lasting impact.
7. Discussion
Alternatives:
- Focusing solely on individual donations: This approach may be unsustainable in the long term, as donor fatigue and competition for resources increase.
- Merging with another organization: This option could lead to loss of independence and potential conflicts of interest.
- Reducing operational costs: This may compromise the quality of HRW's work and impact.
Risks:
- Donor backlash: Changes in fundraising strategy may lead to dissatisfaction among existing donors.
- Technological challenges: Implementing new technologies may require significant investment and expertise.
- Competition from other NGOs: The evolving landscape of NGOs may present challenges in attracting donors and resources.
Assumptions:
- Donor willingness to contribute: The recommendations assume that donors are willing to support HRW through diverse channels and innovative approaches.
- Technological advancements: The recommendations rely on the continued development and accessibility of technologies for fundraising and communication.
- Political and economic stability: The recommendations assume a stable global environment conducive to human rights advocacy.
8. Next Steps
- Develop a comprehensive strategic plan: Outline the specific goals, objectives, and actions for implementing the recommendations.
- Establish a dedicated team: Assemble a cross-functional team to lead the implementation process.
- Pilot test new initiatives: Conduct pilot programs to test the effectiveness of new fundraising strategies and technologies.
- Monitor and evaluate progress: Track key performance indicators (KPIs) to measure the impact of the implemented strategies and make adjustments as needed.
By taking these steps, HRW can navigate the challenges of the $100 million funding gap and continue its vital work of promoting human rights around the world.
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Case Description
In 2010, multibillionaire George Soros offered to donate $100 million to Human Rights Watch (HRW) - this would be both the largest donation ever received by HRW and the largest ever made by Soros. Soros, a long-time supporter of the organization, had set several stringent conditions to the offer extended via his Open Society Foundations. HRW had to commit to (1) increasing its international presence, (2) increasing the proportion of donations coming from outside the U.S. to fifty percent of total contributions within five years, (3) diversifying the geographic origin of board members, and (4) raising additional funds to match Soros's donation. While Part A of the case focuses on the original offer, Part B is set in 2020 and summarizes what happened at HRW after it accepted the donation.
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