Lean Startup Approach To Social Entreprise v1

Building a Social Entreprisevia a Lean Approach

(c) Crowdrunning 2014 | (c) Lean Advantage 2014

Andrea Darabos (Lean Coach, Lean Advantage)

Twitter: @Adarabos

Mail: [email protected]

Daniel Ludwig (Crowdrunning)

Twitter: @bydanielludwig @crowdrunning


LEAN ADVANTAGE Ltd.

From Project Idea to a Social Enterprise:The Story of Crowdrunning

Personal Story

Global problem, local relevance (UK, 80 k young homeless people NEET)

www.crowdrunning.com


A Social Startup: „It’s a startup with a mission to solve a social problem, in search of

a scalable, replicatable business model” - Andrea Darabos

A social startup can live insidean existing organization…

Or being created as a new venture.

Crowdrunning is a Social Startup

• Running for change e.g homelessness, peace, water, etc.

Problem: Using sport/running to solve multiple global issues,

• Stakeholders – unexplored

Problem for Whom

• Unexplored

How will we Measure Impact:

• Rough - Run for change

What Service will we Provide:


Lean Startup Coaching

• Lean Social Startups search for a repeatable business model that delivers solutionsto a social problem and do this in a fast, effective way.

• Coaching helps to apply Lean thinking when building a social startup

• A Lean Coach challenges you to set up small experiments and to validate yourassumptions in the outside world with real stakeholders as early as possible

Lean Coaching Questions

(orange slides)

Assumptions, Validation

(blue slides)@ADarabos,

Lean Coach,

Lean Advantage Director@ByDanielLudwig,

Crowdrunning Founder(c) Crowdrunning 2014 | (c) Lean Advantage 2014

Vision, Mission, Values

• What is the vision of your social startup?

• What is the mission?

Hint: narrow your focus. Focusing on a local problem helpsyou validate your business model faster and learn

• What values does your social entreprise stand for?


Vision, Mission, Values - Crowdrunning

Vision

A world where we combat together global youth

homelessness locally, one run at a time.

Mission

Providing running based personal development program (PDP) for

young homeless and unemployed people with support from caring local runners, charities and businesses for further education and employment

milestones

Values

Determination

Encourage

Inspiration

Equality


Local Impact & Learning

• What local issue are you solving?

• What local impact are you aiming for?

• Iterate via the Build-Measure-Learn cycleto refine a working, sustainablebusiness model

• Then Scale up your Social Entreprise

SERVICE

Based on Eric Ries: The Lean Startup


Social Startup to Social Enterprise

• Found a workingbusiness model

• Local issue, MVP, Run several Build-Measure-LearnExperiments

• Scale up workingmodel and repeatelsewhere

SERVICE


Local Impact - Crowdrunning

• What we decided to focus on…

• Local community helping young people living in their community


Stakeholders, Pain and Gain - Personas

• Who are the stakeholders in the problem domain?

• Create personas for them and describe their attributes• Age, social background, segment

• What is their pain?

• What gain are they aiming for?


Stakeholder Personas - Crowdrunning

Young People

(Aged 16-25)

Charities (small,

medium)

Local Businesses

Runners (all levels)


What is your MVP?i.e. Minimal Viable Product, but if you are designing a service, then call it Minimal Viable Service (MVS)

• What could be the absolute minimal service or product, that we can create to test if we can address eachstakeholder’s pain?


MVP - Crowdrunning

To address EACH stakeholder’s

pain

Running based personal

development program (PDP) in the community


Use the Lean Social Canvas

• In this order, think about:

• Use one copy of the Lean Social Canvas for eachstakeholder group

• Identify their pain

• Your startup’s Unique value propositions to address thesepain points

• A MVP solution as a possible way realizing these valuepropositions

• Metrics how we will measure success of meeting pain withthe solution

Template @ www.socialleancanvas.com


www.socialleancanvas.com

The Social Lean Canvas


Lean Social Canvas – Charities – CrowdrunningPain/Gain

Problems

• FUNDRAISING Lack of visibility and staff for challenge events

• Lack of service prior and after the challenge event for fundraisers (challenge events)

• EMPLOYEES Lack of employee engagement in challenge events ->Professional Management & reputation Problem

Solutions

• Weekly Running events with young people and employees

• Bi weekly Video & Film production with social media integration

• Monthly Milestone Meeting with other local partners (Networking)


Amount of raised money throughCrowdrunning program

Percentage of increased social media KPI ( conversation, amplification and applause rate) through video production

Number of employees and fundraisers participating at runs

Metrics - Output

Lean Social Canvas – Pain/GainBusinesses – Crowdrunning

Problems

• Lack of Employee Health programs with community engagement

• Lack of community involvement and engagement (small / big company)

• Reputation Problem

Solutions

• Weekly Running events with employer involvement as sponsor

• Bi weekly Video & Film production with social media integration as proof for engagement with young people

• Monthly Milestone Meeting with other local partners (Networking)


Metrics - Output

Number of employees participating in running program

Percentage of increased social media KPI ( conversation, amplification and applause rate) through video production

Lean Social Canvas - Pain/GainYoung People (16-25) - Crowdrunning

Pain

• Lack of inspiration & goal settings

• Lack of leadership & communication & teamwork skills

• Lack of education foundation

• Lack of contacts to local employers

• Not in Employment

• No awareness of healthy lifestyle

• Living isolated or with wrong friends

Gain

• Weekly Running events with employer involvement as sponsor

• Bi weekly Video & Film production with social media integration as proof for goal settings and progress

• Monthly Milestone Meeting with local partners and employees (Networking)


Metrics - Output

Number of Milestone 1, 2, 3 passed so far

Number of Members obtaining training / education and employment

Retainment ratio: started vs finished within last 6month

Lean Social Canvas – Pain/GainRunners - Crowdrunning

Pain• Lack of employer health services

• Lack of Business/Life balance

• Lack of active community involvement

• Lack of charity support prior and after the challenge event

• No fundraising during the Marathon event preparation via training/running

• No direct access to charity and services (young people)

Gain• Weekly Running events with employer

involvement as sponsor

• Bi weekly Video & Film production with social media integration for fundraising awareness

• Monthly Milestone Meeting with local partners and employees (Networking)


Number of employees and local citizens participating in running program

Length of participations (Months)

Amount of raised money through Crowdrunning program

Metrics - Output

Differentiate Social Output and Outcome, Impact


Source: the foundation of social return on investment

(SROI)

Inp

uts Resources

invested in your activity

Act

ivit

ies MVS / MVP

Your Minimum Viable Service orProduct

Ou

tpu

ts The direct and tangible products from the activity, i.e., people trained, trees planted, products sold

Ou

tco

mes

(Sh

ort

-ter

m) Changes to

people resulting from the activity, i.e., a new job, increased income, improved stability in life

Ou

tco

mes

(Lo

ng-

term

) Impact = Outcomes less an estimate of what would have happened anyway

Vulnerable Youth Social Output and Outcome Model

Source: The Young Foundation 2012 (c) Crowdrunning 2014 | (c) Lean Advantage 2014

Output Outcomes

Now, Go out of the Building!

• Ideas on the Lean Canvas are only your assumptions

• Go and validate the real pain of your stakeholders, and build a valueproposition that serves their real need!

• How to?

• Qualitative interviews, focus groups, storytelling, demo of prototype idea, with real people!• What is the “real” problem? • How are customers solving this problem currently? • Why, why, why, why, why? Keep digging to understand the customer’s context.• Get permission to discuss more later, after you’ve figured out a solution, and ask for introductions

to new people you can interview

A good source on Customer Interviews - Ash Maurya: Running Lean


Crowdrunning Outputs and Outcomes

How we use our activities

to address outputs

and outcomes

• Communication (Explaining, presenting, listening)

• Confidence and Agency (self-reliance, self-esteem, ability to shape your own life and world around you)

Monthly

Milestone

Meeting

• Communication (Explaining, presenting, listening)

• Creativity (Imaging alternative ways of doing things, innovation, visualize future job or career)

Bi weekly Video & Film production

• Relationship and Leadership (motivating others, valuating and contributing to team work, establishing positive relationships

• Resilience and Determination (self motivation, having sense of purpose, persistent)

• Confidence and Agency

Weekly Running Meetups


Crowdrunning Logic ModelYoung People


Inp

uts - Confidential -

Act

ivit

ies Weekly Running

Meetups

Bi weekly Video & Film production

Monthly Milestone Meeting (first Tuesday evening each months)

Ou

tpu

ts Stakeholders specific metrics:

Percentage of Participation

Number of Members obtaining training / education and employment

Mileage and lengths of video production participation with employers and charities

Ou

tco

mes

(Sh

ort

-ter

m) Improve Health,

Social and Emotional Capabilities:

• Communication

• Confidence and Agency

• Creativity

• Resilience and Determination

• Relationships and Leadership

- YP gain ownership and confidence over self learning pathway

- YP gain access to local education and training programs (Inspiration)

Ou

tco

mes

(Lo

ng-

term

) - YP can fulfill their aspirations with local employment perspectives

- YP can leave shelter /hostel earlier

Crowdrunning - Measurement and Evaluation

(Young People)

Mea

sure

men

t to

ols - questionnaires

completed by the young people (Beginning)

- Film /Video Production (3 Months)

- one-to-one talks and group sessions with the young people after during/runs

- feedback from Milestone Partners (Charities, Runners & Businesses)

Init

ial E

valu

atio

n (

Pilo

t)

TBC

Res

ult

Eva

luat

ion

(3

Mo

nth

s)

TBC


Build – Measure - Learn Cycle

• In what timeframe will you to build and execute theMVP?

• What metrics will you to validate you have solved pain?(Define Metrics per stakeholder group)

• When and how will you collect these metrics?


Build-Measure-Learn - First iterationCrowdrunning

Timeplani.e. Build:

August 2014

•meet stakeholder groups, validate pain, refine MVP

October -December

•run the MVP program, evaluate metrics, feedback from all stakeholders

Measure:

Collect metrics and

feedback every month

Learn:

Jan 2015

• evaluate final metrics, feedback

•Start new Bulid Measure Learncycle


Lean Startup Workshop forSocial Entrepreneurs and Intrapreneurs

• We run regular face-to-face workshops for socialentrepreneur teams, involving lots of pitching and iteration. Bring your idea and leave with a ready-to-validateproposition and your first MVP, MVS!

• Email us for more info @ LeanAdvantage.co.uk!


Contact us withany questions!

Andrea Darabos (Lean Coach, Lean Advantage)

Twitter: @Adarabos


Daniel Ludwig (Crowdrunning)

Twitter: @bydanielludwig @crowdrunning


LEAN ADVANTAGE Ltd.
