BPD Module 1 PDF

THE CHANGING NATURE OF SOCIAL WORK PROFESSION BUSINESS PLAN DEVELOPMENT FOR THE SOCIAL SECTOR MODULE 1 Outline Introduction Social Entrepreneurship as a Path Ahead Typology of Social Work Organisations involved in Business Practice Essential Social Work Skills Domain The Rationale for Business...

THE CHANGING NATURE OF SOCIAL WORK PROFESSION BUSINESS PLAN DEVELOPMENT FOR THE SOCIAL SECTOR MODULE 1 Outline Introduction Social Entrepreneurship as a Path Ahead Typology of Social Work Organisations involved in Business Practice Essential Social Work Skills Domain The Rationale for Business Planning Social Mission versus the Market Drive Pluses & Pitfalls of the Market Drive Similarities & Differences between For-Profit & Non-Profit Organisations Introduction Today, Social Workers face the following common challenges: Strong focus on program outcomes as opposed to simply outputs. Demands for transparency and accountability. Emphasis on risk management in a constrained resource environment. Expectations for evidence-based practice. Reduced resources from traditional funding sources. The need for diversification of funding streams. Substantial competition from non-profits and for-profits. Ongoing oversight, vigilance and regulation from diverse stakeholders.  Social Entrepreneurship as a path ahead In the above-mentioned context, social workers are required to evolve as more entrepreneurial in nature, focusing on both social value creation and financial sustainability. Social entrepreneurship essentially is a hybrid phenomenon of social work macro principles embedded with business innovation activities. Thus, Social Entrepreneurship is broadly defined as the pragmatic (sensible, realistic, rational and practical) and fiscal innovation associated with realising social change. It comprises innovative ideas for social change executed utilising sound business strategies and skills. Revenue from commercial activity is the most useful to an agency’s mission due to its unrestricted nature. However, this need for change is often faced with resistance… A general uneasiness of discussing money matters prevail… Typology of SW Organisations in Business Practice Type 1: Non-profit Examples: Community behavioural health / Child and family services / Advocacy and grassroots organisation Role of Social Workers: -Maximise efficiency and effectiveness of existing programmes -Launch social enterprise projects as non-profit subsidiaries -Manage for growth Type 2: For-profit Examples: Mental and physical health care / Managed care / Residential programmes / Specialised addiction clinics / Prison healthcare Role of Social Workers: -Leverage resources of company and grow and expand services -Use social work values to enhance organisational culture -Maintain emphasis on social objectives even when profit is paramount Type 3: Hybrid Examples: Social enterprises / Job-training programmes / Micro-lending institutions Role of Social Workers: -Balance profit-making goals with client-oriented outcomes -Understand client point of view and incorporate into planning and operations Type 4: Other Examples: Government entities / Economic development authorities / Policy think tanks / Universities Role of Social Workers: -Develop macro-level policies -Maintain focus on clients amid demanding stakeholder environment -Impart management knowledge through teaching, training, research and publication The Rationale for Business Planning Foundation and individual charitable giving markedly decreased since 2008-2009. The shift from welfare - liberal - neoliberal forms of development practice. Charities declined post-recession. Competition for funding has increased. Governments are cutting back support to traditional human service organisations.  NRLM CSR NULM PPP MGNREGS Skill Development Government Civil Society Corporate Bottom of Organisations the Pyramid Social Not-for-Profit / For Profit / Enterprises NGOs (Not-for-Profit / Hybrid Voluntary) Social Value Creation CBOs (SHGs) Innovation Livelihood Specific Organisations… Social Work / Development Practice Client / Community Impact + Sustainable Livelihoods + Social Value Creation + Organisational Sustainability Business Practice Mission versus the Market Drive The Mission of your social work organisation could be broadly defined as “why you were created, the ends you wish to accomplish, and the values that you hold as important and the major strategies that you will use to get there. Market forces are those forces that are beyond the control of the organisation and reflect the realities of today. It also includes the economy, demographics, social values or science and technology. These forces reflect themselves in what is demanded from the organisation and include changing needs and desires by the society. Starting a profit-making enterprise inside a non-profit organisation is a challenge, specifically to balance conflicting purpose or agendas. Strategic Queries a)What are the costs of being totally mission driven? What are the benefits? Is our mission up to date? b)What are the costs of being totally market driven? What are the benefits? Has the market changed in ways that we need to respond? c)How do you find the right balance between mission and market in your organisation? d)Can you redefine your mission to include market drives? Or do you have to hold the two separate and continually work to reconcile their inconsistencies?  Merits / Demerits of the Market Drive Merits Demerits 1. Mission Related - Resource diversification - Perception that private sector activity - New employment opportunities for low will need for public responsibilities income groups - Perception that profits will replace - Opportunity to rethink and sharpen need for public money mission, products, markets and - Shift agency focus from low-income accountability people to focus on markets with - Introduce a market focused activity higher income designed to solve a problem - Perception that it is inappropriate for - Self-reliance for mission a nonprofit to compete with local accomplishment; not subject to businesses changes in funding 2. Program Related - Credibility - Management time diverted - Discipline of cash flow analysis, - Longer term payoff breakdown analysis, and other profit - Public relations risk, funders may making techniques have problems - Increased funding agency support for strategy 3. Personnel - Stimulate entrepreneurial impulses - Creating a dual class system: - Exciting and dynamic organisational rewards to the entrepreneurs and not culture to service providers - Fresh start, recharge batteries, new - Equity for all agency members; dual fun, inspiration personnel policies - Feeling of being in tune with the times; - Program managers do not have prevent brain drain business management skills…they - Strengthen personal responsibility have program management skills - Profit-making results provides clear feedback on performance For Profit versus Non-profit: Similarities / Differences For-Profit / Business Not-for-Profit CBOs Purpose Profit Social Concerns Organisational Structure Sole proprietorship (single owner) Corporation Partnership (two or more owners) Limited Partnership Corporation Policy Decisions Individual owner(s) Board of Directors/Trustees Agreement between general/limited Government regulations or trust partners conditions Board/shareholders Day-to-day Management Individual(s) Executive Director and Staff General partner(s) Officers of the corporation and management personnel Market Customers (a cross-section of the Clients (distinct or targeted segments general population willing to purchase of the population eligible for receiving certain products) services or in some way benefiting from activities of the organisation) Capital Loans, personal savings, profits, Government funds, traditional and investors, stocks alternative private foundations, trusts, cash contributions and donations of goods and/or services Competition Other businesses (large or small, Other non-profits (large or small, sophisticated or simple) sophisticated or simple) Cash Flow Fluctuates depending on market, Relatively stable once grants/ seasonality, economic factors. Profits contributions are secured. are its only source Fluctuates on political climate Professional advice Usually pays for the advice of Sometimes pays, finds help for free or accountants, lawyers, marketing, and / secures ‘loaned’ help from other or management specialists organisations, Board, staff or community volunteers.