delivery strategy: moving into a hybrid model

Towards a hybrid delivery model:

Maximazing social impact and

financial return

April 2015

Author: Windy Natriavi, Faelasufa, Shofi Awanis, Ghufron Mustaqim

Proprietary of Forum for Indonesia. All rights reserved. No part of this document may be

reproduced in any format without specific writing permission from Forum for Indonesia

Forum for Indonesia 2

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Windy Natriavi Biography

Selected organizational experience :

• Head of Young Leaders for Indonesia Alumni 2011 - 2012

– Co-led youth unemployment initiative to help ~50 underprivileged youths through

interview trainings and development of a job-matching application software

– Developed partnerships with Balai Latihan Kerja (Training Development Center) led

by the Government to enrollment rate into the Center

Selected project experience

• Endeavour Indonesia, Breakthrough Leadership Project

– Diagnosed market opportunities and proposed entrepreneur matching for Endeavour to

expand its scale-up investment funding

• Yayasan Indonesia Setara, Breakthrough Leadership Team Member

– Led a 5-person team working with Sandiaga Uno to create a video branding campaign

for Yayasan Indonesia Sejahtera – in which result of survey was used by a leading

American university

Selected work experience:

• McKinsey & Company, Business Analyst

– Led development of financial stability strategy and roadmap for Indonesia 2025

– Developed an Asian supranational digital banking strategy and financial

assessment for a $90 bn private financial institution

– Design 2024 Human Resource strategy and implementation plan for an Indonesian

Ministry

– Conduct market analysis and expansion opportunities for a leading Asia wholesale

retailer

• PT. Principia, Private equity analyst

– Manage stakeholders and partners in securing a deal for the Entertainment industry

[highly confidential]

Education :

• Bachelor of Finance – Management from Universitas Indonesia (2008 – 2012)

Windy is a proud Indonesian

who believes in building

Indonesia through targeted

investments and a

collaborative effort across all

parties and sector

As a consultant, her main field

of work has been in the

financial sector (both public

and private)

She loves travelling and

reading mind / neuro-science

related books.


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Faelasufa Biography


• Forum for Indonesia, Director of Secretariat (2011 – 2012)

– Help to establish a ‘family’ atmosphere in internal team, MoM development

• Jogja Berpijar, Founder (2012)

– Established an on-line portal, develop stories based on one-on-one interviews with

inspiring figures in Jogjakarta


• DAAD Joint Research Project, Student Researcher

– Involved as a researcher in DAAD joint research project between Universitas Gadjah

Mada and the University of Freiburg for two consecutive years

• Mapres (Mahasiswa Berprestasi) UGM

– Help to improve the Mapres selection process in UGM


• Edelman, Account Executive

– Provides communication advisory and facilitation services to the governments, private

business, international organizations, NGOs and media group

– Served various clients from different background

• Gramedia Pustaka Utama, Frelance Writer

– Wrote a published novel in 2011

Education :

• Candidate for the Master of Public Policy – Graduate School of Public Policy, The University of

Tokyo (2014-2016)

• Bachelor of Social and Political Science – International Relations, Universitas Gadjah Mada

(2009-2014)

Before taking her master

degree at The University of

Tokyo, Faela worked at a

global communication

consultancy firm based in

Jakarta as PR practitioner.

Her passion in youth

empowerment makes her

involved in several forum and

organizations during her

undergrad year.

She has a dream to relish a

remarkable ride in social,

personal and professional life.


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Shofi Awanis Biography


• Forum for Indonesia, Vice-Chairman (2012-2013), Executive Board of Media (2011-2012)

– Managing the executive boards of FFI central, focused on internal restructuration. Coordinating

with local representatives for FFI chapters, 1 new regional chapter established.

• Gadjah Mada Chamber Orchestra, Vice-President

– Coordinating internal relation within management-team and player-team, maintaining external

relation with sponsor and university rectorate.


• CubeWeb Indonesia, Account Executive

– Managing various clients for website developing and social media integration

• CESASS UGM’s SEA Gate Program in collaboration with NUS, Tutor

– Being responsible for 4 NUS exchange students in UGM for language study program and field

research on Southeast Asia topics.

• PT Kadence International, Simultanous Translator

– Provide real-time English translation on focus group discussion for Danone marketing research

purposes.


• Yayasan Gerakan Indonesia Mengajar, Partner Engagement Officer

– Engaging corporate, institution, and public to be actively involved in sponsorship schemes to

secure funds for Indonesia Mengajar's sustainability plan.

• Bentang Pustaka, Publicist

– Perform public relation and marketing function through social media, website, and offline events.

Managing communication flow between consumers, writers, distributors, media, and company.

Education :

• Bachelor of Social and Political Science - Communication, Universitas Gadjah Mada (2009-2014)

Shofi is a young professional

specializing on strategic

communication for corporate

and non-profits organization

She is driven to contribute to

the development field that

would shape a sustainable

social change


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Muhammad Ghufron Mustaqim Biography


• Forum for Indonesia, Co-Founder, Co-Chair, and CEO

‒ Develop five year transformation blueprint, design operating model and delivery strategy,

and lead the development of intersector collaboration and social innovation knowledge

‒ Oversee program development and implementation in organzation’s regional chapters

• Rotaract Club in Yogyakarta, Charter Member and President

– Led the implementation of community service, mentored volunteers, and maintaned

professional network with other clubs from inside or outside Indonesia


• FFI’s Obrolan Sabtu, Founder and Advisor

– Initiate sharing platform that connects students with inspiring professionals or young

leaders to discuss about social innovation. After two years, Obrolan Sabtu has been

delivered 25+ times in 6 different cities—inviting 35+ speakers and attended by 800+

audiences

• Rotaract’s community service in Elementary School in Yogyakarta, Project Manager

– Support school’s facility and conducted trauma healing for students in local elementary

school impacted by Mount Merapi eruption. This project was delivered in cooperation with

United World College of Italy & Netherland.


• McKinsey & Company, Consulting Analyst

– Drived gas mega infrastructure project worth USD 100 million in capex to be completed

on schedule. Analaysed the hydrocarbon maturation of client’s oil and gas field in South

China Sea and forecasted its 10 year production profile

Education :

• Bachelor of Arts – International relations, Universitas Gadjah Mada (2009-2013)

Ghufron is a young leader

committed to improving the

state of Indonesia

His core interests are on using

data to inform public policy

and social intervention, and

creating resposive city

governance

He extensively reads books on

public philosophy and

economic development


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Executive Summary

This part is omitted


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Contents

• The new era: Moving into a hybrid structure

• Successful social innovators understand

hybrid models and adapt accordingly

• Potential key solutions in tackling challenges


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This section is omitted


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Contents






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Light integration

A model striving for

social means using for-

profit ways

Medium integration

Strives for both social

and profit through

separate mechanisms

High integration

Strives for both social &

profit through one

mechanism

There are largely three different type of hybrid models entrepreneurs

can adopt with their respective strengths and weaknesses

1 2 3

Degree of integration between social and profit logic and mechanisms

Goals

Elements

• Social goals • Both for profit and social

goals

• Both for profit and social

goals

Entity structure

Beneficiaries

• One entity • Typically has 2 separate

entities (one social and one

profit)

• One entity

• One end set of

customers

• May have 2 separate

entities (not always the

same)

• One end set of

customers

Funding

mechanism

• Typically, high-margin

products will subsidize

social activities

• Typically, profit is re-

invested in social arm

• One for-profit sources to

cater both social and profit-

oriented goals

Source: Stanford Social Innovation Review; Team Analysis


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Successful case example: Visionspring enhances and

leverages community in reaching out to customers

LOW INTEGRATION

• Visionspring is a social

innovation company that

strives to provide quality

eyewear at a low cost to

bottom-of-pyramid

customers

• Currently present in India

and El Salvador

• Uses cross-subsidization of

higher-priced eyeglasses to

compensate for bottom-of-

pyramid customers

Company profile and operating metrics

Vision and

mission

Operating

model

Impact

• Affordable access to eyewear, everywhere

• Cultivates micro-entrepreneurs to sell

eyewear to their communities

• Hub-and-Spoke model : 2 entrepreneurs (one

who educates the community, and one who

runs the shop operations (hub)

• Productivity increase by 35% amongst

beneficiaries due to clearer vision, increasing

monthly income of beneficiaries by 20%

• Has created $280 mn in economic impact

Toti and Omprakash managed to

increase their crops’ harvest due

to new-found ability in seeing the

pests and insects that were

ravaging their crops

Pros

Hybrid model evaluation

Cons

Use if…

• High leverage of talent and surrounding

community

• Medium-low scalability due to high

dependency on the talent and community

awareness

• Your social innovation has a stronger

social mission that motivates people to help

• You have strong community management

skills

Source: Stanford Social Innovation Review; Vision Spring; Team Analysis


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Successful case example: Mobile School operates two distinct

organisations to ensure fulfillment of social goals

MEDIUM INTEGRATION

• Mobile school is a Belgian non-

profit that provides educational

materials and empowers children

living on the street; as well as

help street workers with their

employment problems

• The initial business model was

unsustainable as Mobile School’s

main beneficiaries were poor

children Hence, founder Arnoud

Raskin launched a consulting

business, Streetwize, to generate

revenue which will sustain the

non-profit’s operations (currently

75% of funding sources)


Vision and

mission

Operating

model

Impact

• Increases sustainable development of people,

organisations, and society by the strengths of the

street kids

• Empowers kids and street workers self-esteem

through Mobile School

• Document and “sell” key learnings of dealing with

street-kids through trainings and consulting

sessions and uses funds from StreetwiZe to fund

operations of Mobile School (currently comprises as

source for 75% of budget)

• 36 mobile schools in 22 countries

• Serves ~200 well-known companies in 20141 through

600 boost sessions, 4000 action workshops; 11,640

people;

• 82% of street children reported significant increase

in happiness and ~60% reported increase in talents

Pros


Cons

Use if…

• Minimizes tension through clear focus and

separation of profit and social organisation

• Requires much more effort and resources than the

other models due to separation of teams, separation

of focus, etc

• Your social innovation, as it stands by itself, will

not make economic value to sustain operations

• You are able to devote significant time in both

organisations

Children learning on the streets in

one of Mobile School sessions

1 Companies such as ING Direct, Rabobank, Deloitte, Cocacola, etc

Source: Stanford Social Innovation Review; Mobile School; Team Analysis


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Successful case example: Learnvest ensures fulfillment of its social

goals through its non-profit business

HIGH INTEGRATION

• Learnvest is a financial

management company aiming

to help individuals manage their

money

• Established in 2009 by Alexa

von Tobel, an ex-HBS drop-out

and Wall-street investment

banker

• Key value proposition of

providing quality financial

advice at a much cheaper cost

– ensuring accessibility to

everyone


Vision and

mission

Operating

model

Impact

• Our mission is to make financial planning

affordable, accessible, and even delightful

• Customer fill online profile and discuss with a

Financial planner to set plan

• ~70% lower cost at ~$300 for one-time set-up

fee + $19/ per month (compared to traditional fee

of $1,900) • Gained $41 mn capital of seed funding

• Within first two years of operations, grow 200%

of subscribers

• Employs around ~80 – 95 FTE

Easy on-going consultation with

your private planner


Pros

Cons

Use if…

• Highest sustainability amongst all the other

models

• Highest risk of “drifting away” to profit-

oriented goals

• Potential tension between two different type of

employees (profit-oriented versus social)

• Your social innovation has a stronger “for-

profit” angle that can lure investors

• You can adhere yourself to social metrics, in

addition to for-profit metrics

Source: Stanford Social Innovation Review; Learnvest; Team Analysis


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delivery strategy: moving into a hybrid model

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