LEAN IMPACT – SCALEANN MEI CHANG

Executive Director, Lean Impact

@annmei @leanimpact

GREATER SOCIAL IMPACTAT GREATER SCALE

VALUE

IMPACTGROWTH

SOCIAL INNOVATION

Scal

e /

Imp

act

Time

Traditional grant program

Innovation

Exercise:Problem&GoalWhatproblem areyoutryingtosolve(1)?

Whatisyourgoal forsuccess(2)?– Howwilltheworldbedifferentifyousucceed?– Whatisthesizeoftheneed?– Yourgoal:Howmany?Where?Bywhen?– Beambitious!Notpossiblewithbusinessasusual.

EXAMPLE – PROBLEM/GOALOrganization Name

1. Problem – the problem you are trying to solve?

2. Goal – your specific, measurable metric for success?

Cookstoves are Us

Combat climate change by reducing black carbon emissions from open cooking/heating fires in Tanzania.

Convert at least 50% of Tanzanian families currently using open fires to cleaner cookstoves that emit at least 50% less black carbon by 2022.

Exercise:Idea/Solution

Whatisyouridea forsolvingtheproblem(3)?– Thinkoutsidethebox– Whatcouldmovetheneedle,evenifit’srisky?

EXAMPLE – PROBLEM/GOALOrganization Name

1. Problem – the problem you are trying to solve?

2. Goal – your specific, measurable metric for success?

Cookstoves are Us

Combat climate change by reducing black carbon emissions from open cooking/heating fires in Tanzania.

Convert at least 50% of Tanzanian families currently using open fires to cleaner cookstoves that emit at least 50% less black carbon by 2022.

3. Idea – idea for solving the problem

Pay-as-you go cookstoves using mobile money that cost less than fuel savings.

WILL IT SCALE?

MARKET-DRIVENCredit: Off-Grid: Electric

COMMODITIZE PATH

REPLICATIONCredit: Brett Matthews

Code for America

GOVERNMENT SPENDING

Summit Public Schools

GOVERNMENT POLICY

Exercise:GrowthModel(4)• Whatwillaccelerategrowthtoreach

massivescaleifyoursolutionsworks?– Whoisthedoer(s)?– Whoisthepayer(s)?(usuallynotpossible

throughgrants)

EXAMPLE – GROWTH MODELIdea

Pay-as-you go cookstoves using mobile money that cost less than fuel savings.

4. Growth Model (what will drive acceleration of growth at scale?)

Doer (who will implement the solution at massive scale?) Payer (who will fund to achieve massive scale?)

Cookstoves Are Us Customers

Exercise:Assumptions(5)• Startwith“Ibelievethat”statements

– Whatneedstogoright?– Whatcouldgowrong?

EXAMPLE – GROWTH ASSUMPTIONSIdea

Pay-as-you go cookstoves using mobile money that cost less than fuel savings.

4. Growth Model (what will drive acceleration of growth at scale?)Doer (who will implement the solution at massive scale?) Payer (who will fund to achieve massive scale?)Cookstoves Are Us Customers

5. Growth Assumptions (what must be true to drive accelerated growth?)Doer (how will you grow fast and maintain fidelity?) Payer (can/will they pay?)

We have or can attract sufficient leadership talent to operate at national scale.

People are willing to pay $5/month for 1 year to buy a clean cookstove.

We can hire 100 new salespeople a week, including in remote areas.

We can make a > 10% profit margin if we sell cookstoves for $60.

Salespeople will be able to hit sales targets consistently after 1 week training.

GET OUT OF THE BUILDING!SIMPLEST, FASTEST PROTOTYPE TO LEARNBE OBSESSIVE TO UNDERSTAND THE USERTEST BEHAVIOR, NOT HYPOTHETICALS

EXPERIMENTS/MVP

Takeaways(60secs/table)• Whatdidyoulearn?• Whatsurprisedyou?

Resources• TheLeanStartup,byEricRies• IDEODesignToolkit(designkit.org)• +Acumenonlineclasses(plusacumen.org)

VALUE

IMPACTGROWTH

THINK BIGSTART SMALL

QUESTIONS & FEEDBACK

@annmei @leanimpact