Setting up a hybrid social enterprise with a mix of legal forms

An increasing number of social enterprises are choosing to use a hybrid of legal forms. We see businesses wanting to register non-profit organizations, and non-profit organizations wanting to setup businesses. Social enterprises with hybrid models are incredibly fashionable. It can even be argued that they have become the norm.

However, there is a very poor understanding of the legal, tax and other implications of establishing a hybrid social enterprise. Furthermore, the majority of social enterprises seem to be choosing hybrid models when they don’t need to, and in the process are creating complicated bureaucratic and ethical problems for themselves.

This e-book was released in September 2014, and has since been presented to multiple audiences such as the NPO Collaboration Dialogue and Community Chest.

Clearly define the purpose of your enterprise

This article was published in the September 2014 edition of the Small Business Connect newspaper. It is part 2 in a series of 11 articles that unpacks the mind-set of a social enterprise and discusses the principles from Think like a Social Enterprise.

When I started in the social sector in 1996, it was common for organizations to have vision and mission statements. These tended to be extremely abstract and provide no strategic focus. It is unfortunate how many organizations wonder through life without a sense of where they’re going. This article discusses the importance of clarity of purpose and the ability to clearly state one’s purpose without using jargon.

This edition also profiles Karen Moss from Steps, and organization that has healed clubfoot in over 8,200 children in Southern Africa since 2005. This organization has incredible clarity of purpose and this clarity has been a building block in its success.

Rise of the social enterprise

This article was published in the August 2014 edition of the Small Business Connect newspaper. It is part 1 in a series of 11 articles that unpacks the mind-set of a social enterprise and discusses the principles from Think like a Social Enterprise.

I strongly believe that this is the era of the social enterprise. Non-profit organizations and businesses have both started to mix a social or environmental agenda with business principles. This has led to more capable and relevant organizations. This article discusses the concept of a social enterprise and introduces the forthcoming series of 10 articles.

Shona McDonald from Shonaquip is profiled in this edition. This social enterprise provides mobility equipment for people with disabilities. It was started in 1992 and was clearly ahead of its time.

Think like a social enterprise – the ebook

I’ve discovered that social enterprise is both a business model and a paradigm or way of thinking. While the social enterprise business model is only suitable for some organizations, I believe that almost all organizations with a social agenda can benefit from embracing the mind-set of a social enterprise.

This e-book from June 2014 describes each of the 10 principles that underpin the way that social enterprises think. This is relevant to all types of organizations.

Scaling CSI programmes

‘Scaling social impact’ is an increasingly popular concept, but what does it mean and is it achievable in CSI? How can CSI programmes balance tight budgets with achieving audacious outcomes? In this article I discuss when it is appropriate for a CSI department to consider scaling its social impact and provides some suggestions on how to achieve this.

This article was published in the Corporate Social Investment Handbook (2014) by Trialogue Publications.

Social innovation: not a magic pill but a process

Social innovation is not a magic pill, but a process. Making a social innovation work is not simple. But when it does, it might be tempting to believe you can just duplicate the process again and again and it will keep working. But it’s not that simple. Let’s look at the reality of scaling, and some crucial questions you need to ask before trying. In this article I discuss the reality of scaling social innovation.

This article was published in the May 2014 edition of Inside Out – the magazine of the Bertha Centre for Social Innovation and Entrepreneurship.

Strategy Rethink: Find a renewed sense of clarity and purpose

It is time for many organizations to rethink their strategies and learn the new rules for success. Those that are able to will thrive; those that don’t may be required to close their doors.

Kate Clayton and I have developed the Strategic Rethink in August 2013 to enable organizations to re-examine their strategies and discover what they need to focus on. Kate Clayton is a brand and marketing strategist that I’ve worked with over the years.

This Strategic Rethink is a six session programme that covers Business Strategy, Brand Strategy, Marketing Strategy, Marketing Plan and Strategic Debrief.

Read more about the Strategic Rethink and how it can help your organization on its journey.

Effective governance in nonprofit organizations

All non-profit organizations have governance structures. In some organizations these structures are a source of insight, leadership and inspiration. In others they are a source of ineffectiveness, frustration and conflict.

This article from July 2013 presents the three primary roles of these governance structures (e.g. govern strategically, govern responsibly and manage compliance), as well as the key factors that correlate with the effectiveness of these structures. This article challenges the conventional view that boards should focus on compliance, and that this increases social and financial performance.

Has Business Strategy become a Cargo Cult?

Imagine it’s 1946 and World War 2 has just ended. Both Japanese and allied forces have withdrawn from many small Pacific Islands. Military aircraft no longer drop supplies to their soldiers on remote islands, and the flow of goods to natives has ended. Local shamans have inspired their followers to build “pretend” airfields, control towers, and straw soldiers. Some of the more inspired local leaders have dressed their followers in imitation uniforms and now parade the fake soldiers on runways. A cargo cult has been established in an effort to trick airplanes to land and drop supplies. This is ritual mimicry married to a poor understanding of what is really going on.

It is no surprise that most strategic planning processes closely resemble cargo cults and these misunderstood rituals tend to be unsuccessful and provide little value to companies. In this article from June 2012, Dr Roger Stewart and I discuss both the failure of strategy and what organizations can do to improve their strategies.

New life in South Africa’s nonprofit sector: a personal story

The non-profit sector in South Africa has changed beyond recognition over the past decade. This is as I both hoped and feared. It is as I had hoped because young people, new ideas and a fresh energy have entered this sector. It is as I had feared because a number of established organizations with rich histories have failed to adapt in time and have subsequently suffered severely – some have even been fatally wounded. Overall, it feels that springtime may have arisen after a long winter.

Here is my personal story from June 2012 to help illustrate this change in seasons.

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In Pursuit of Strategic Clarity

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