Chapter 4

From Opportunity to Action

Opening Discussion

• Read the case of Berkeley Oakland Support Services (BOSS) and answer the following questions: What factors led BOSS to consider modifying

its services? What steps did BOSS take to validate the

opportunity and then prepare for this change?

Chapter Outline

• Elaborating the opportunity with social impact theory: value proposition and theory of change

• Developing the operating model: program logic

• Venture feasibility and business planning

• Supporting analysis: risk, market, resources

The Opportunity Development Process

• Turning an opportunity into a viable program involves the following elements:

Social Impact TheoryThe model of how the venture will achieve its intended social impact.

Social Value Proposition• The social value proposition:

Social value created by an organization Underlies and forms the basis for the operations of

an organization

For Example:AssureBridge Technology Value Proposition

Centrality of the Value Proposition

• Describes the social value being created

• Defines who is being served and how

• Links the opportunity, people, capital, and context

The Venture’s Theory of Change • Explains how desired long-term change is

expected to occur

• Predicts who or what is going to change, over what period of time, and by how much at every step of the process

• Uses backward

mapping process

The Program Logic Model

• Is linked to the theory of change

• Describes the sequence of activities thought to bring about change

• Describes how these activities are linked to the results the program is expected to achieve

• Planning tool to help put the theory into action

Social Value Chain• Used to analyze how to create competitive

advantage by creating value for customers

• Set of value-adding activities that link inputs to outputs purchased by customers

• Includes both primary and support activities Business oriented value chain. What should be added for a SE measure?

Venture Feasibility Assessment • Initially assesses the venture’s practicality

• Answers the question: “Should we proceed with the venture’s development?”

• Assesses: Industry Industry Assessment Market Resources needed Benefits

provided Potential problems

and pitfalls

Venture Feasibility Assessment • Firm Assessment

Research• Primary: Customer surveys, focus groups

• Secondary: Association/Industry data, UN projections

Prototyping In-Home trials Financial Feasibility

Business Model Feasibility

Social Business Model Feasibility

The Venture’s Business Plan• Lays out all the details needed to explain and

justify the venture’s operation• Normally includes descriptions of objectives,

details of operations, financial projections, and the larger environment

• Provides an internal roadmap to guide work activities

• Is also used to explain the venture to outsiders to raise money, get partners, and attract new leaders

• We will be talking about the business plan on Thursday!

Risk Assessment• Should be aware of risks and attempt to

manage them

• Considers these types of risk: financial, organizational/operational, venture/enterprise, and external environmental

• Calculates total risk as the sum of: “Sinking the boat” risk: launching a venture that

does not work “Missing the boat” risk: not launching a venture

that would have worked

Market Analysis• New ventures will be at the product development

and introduction stages of the product life cycle.

• Use segmentation to identify target audiences.

• Initial marketing should target early adopters, identified by self-reporting or reports from others (reputations).

Policy Field Analysis• When social entrepreneurs deal with social

issues, they need to understand how public policy directly or indirectly influences their environments.

• Analysis will likely involve various levels of government and other private organizations.

• Policy field includes the organizations involved in a given substantive public policy or program area in a particular place and the relationships among these organizations.

Policy Field Analysis

Resource Analysis• Start with an assessment of the capabilities

needed to bring about the desired results.

• Determine the resources needed to acquire these capabilities.

Discussion• Consider the model of opportunity

development outlined in the previous slides and answer the following questions: What do you think is the most important part of

the process? How can the value chain be linked to program

logic? What aspect of risk might be the hardest to

forecast?