Ka boom! presentation

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  • 1. How to shape a Performance Management System for a Social Enterprise? The KaBOOM! Case Study Fundamentals of Sustainable Accounting & Finance (Cristiana Parisi) Presented by Christian Emigholz 16th July.2009
  • 2. Agenda Short introduction to KaBOOM! What they do How they work Introducing a Performance Management System (PMS) Objectives of a PMS for a Social Enterprise Difculties on the road Dening return & measuring performance: The KaBOOM! Formula Summary & Discussion
  • 3. KaBOOM! - What they do: Social Enterprise founded 1995 by a Civic Engineer in response to a tragic accident Vision (2002): Develop a country in which all children have within their communities fun and health play opportunities, with the participation and support of their families and peers Playgrounds and skate parks in order to Tackle obesity-related health problems Foster learning and social skills through playing and interacting Let children grow up with a safe place to play (CEO Hammond)
  • 4. KaBOOM! - What they do: Social Enterprise founded 1995 by a Civic Engineer in response to a tragic accident Vision (2002): Develop a country in which all Social Enterprise: children have within their communities funsocial and Social enterprises are distinctive because their health environmental purpose is central toparticipation and or play opportunities, with the what they do. support of their families and peers their main Rather than maximising shareholder value aim is to generate prot to further their social and Playgrounds andgoals. (www.socialenterprise.org.uk) to environmental skate parks in order Tackle obesity-related health problems Foster learning and social skills through playing and interacting Let children grow up with a safe place to play (CEO Hammond)
  • 5. KaBOOM! - How they work: Mission (2002): Every child through the participation of their communities should have healthy play opportunities Building a playground by 1. Partnering with corporate partners to generate funds (e.g. Nike, Crysler Foundation, FannieMae) 2. Bringing corporate partners and communities together 3. Children designing their dream playground 4. Organising volunteers from corporations and communities to build the playground
  • 6. KaBOOM! - Strategy: Lead Seed RallyExample-building Provide support, Individual partnersplaygrounds and planing tools and (Playboard) whoorganisation through encouragement to foster & organiseKaBOOM! interested community playground buildingVery time intensive groups Incentive to be Shift of work load recognised as playful and responsibilty city Intensive PR Program
  • 7. Agenda Short introduction to KaBOOM! What they do How they work Introducing a Performance Management System (PMS) Objectives of a PMS for a Social Enterprise Difculties on the road Dening return & measuring performance: The KaBOOM! Formula Summary & Discussion
  • 8. Why introducing a PMS? Initial Problem 2002: The Board was overwhelmed with information, thus unable to truly asses KaBOOM!s performance Prove to funding corporations the ablility to set and reach goals Objectives consolidated timely, accurate and usefull information most important KPIs / consistent data points year over year benchmarks Goal help to set strategic goals and to possibly reshape the strategy (feedback loop)
  • 9. Why introducing a PMS? Initial Problem 2002: The Board was overwhelmed with information, thus unable to truly asses KaBOOM!s performanceImplementing ato funding Score Card the ablility to set and reach goals Prove Balanced corporationsDene strategy ObjectivesDene measures of strategy (incl. cause-effect raltionships [causal maps] across 4 most important KPIs / consistent data pointsdimensions) year over year benchmarks (Anthony, consolidated (1998), Management Controland usefull information R.N. and Govindarajan,V. timely, accurate Systems, New York, IrwinMcGraw-Hill, pp. 459-475.) Goal help to set strategic goals and to possibly reshape the strategy (feedback loop)
  • 10. Problems on the road How can the performance of a social enterprise be measured? Impact vs. Output-Measures? Reviewing Vision and Mission to clarify KaBOOM!s goal Main mission related output measure is therefore playgrounds built Social impact shown by social change model Which measures to focus on? Relevant & reliable Financial measures are denately important; reecting the implications of other measures Scientic theories shouldnt be proofed with a PMS
  • 11. Problems on the road How can the performance of a social enterprise be measured? Impact vs. Output-Measures? Reviewing Vision and Mission to clarify KaBOOM!s goal Main mission related output measure is thereforeVision playgrounds builtis a great place to play within (new):"Our visionwalking Social impact shown byin America" model distance of every child social change Mission (new):Our mission is tofocus on? Which measures to create greatplayspaces through reliable Relevant & the participation and leadership ofcommunities measures are denately important; reecting the Financial implications of other measures Scientic theories shouldnt be proofed with a PMS
  • 12. Agenda Short introduction to KaBOOM! What they do How they work Introducing a Performance Management System (PMS) Objectives of a PMS for a Social Enterprise Difculties on the road Dening return & measuring performance: The KaBOOM! Formula Summary & Discussion
  • 13. The DuPont Formula DuPont formula (for prot business) Net Prot Margin Prot (net income / sales) x Total asset turnover Efciency (sales/total assets) x Debt nancing used to improve prots Leverage (total assets / common stock) =Return to shareholders Return on Equity (ROE)
  • 14. The KaBOOM! Formula DuPont formula Social Enterprise measures (for prot business)Prot/Mission related Net Prot Margin Created value for # playspaces built output (net income / sales) society # LEAD builds in low income areas # Playmakers x x Build efciency (input vs output $) Efciency Total asset turnover How efcient were Program efency (% expense pro