CSI PROFESSIONALS BRIEFING 2014
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Transcript CSI PROFESSIONALS BRIEFING 2014
CSI PROFESSIONALS
BRIEFING 2014
Reana Rossouw
Next Generation Consultants
Session One:
Trends and Forecasts 2014
Our Vision:
Increasing Impact and
Enhancing Value
Our Objective:
We want to know how to
cultivate change more
effectively in a world that
sorely needs it
Our context
Compare practice globally:
US, Europe, Far East
Africa (continental)
South Africa (regional)
Benchmark against findings of
our Impact Investment Index
Tracking for the past ten years
Supported by 45 personal
interviews with industry
practitioners
What we know:
CSI has become more strategic
but may need to become
more than that - CATALYTIC
Too little progress has been
made while the problems we
face continue to grow
We believe that the work of
the next ten years will have to
build on existing efforts to
include an additional focus on
coordination and adaptation
Barriers to change
Independence and control
Insularity and inward focus
Caution and risk aversion
Time and inertia
Competition and credit
The end result:
A system with no natural
mechanism for coordinating
effort, for learning, for sharing
knowledge about what does and
does not work, or for adapting
to shifting changes
Isolated successes that are
seldom replicated, new
innovations that replaced old
ones before they had time to
prove themselves, with the
unfortunate end result that
funders and their beneficiaries
are doomed to repeat the same
mistakes again and again
1. A brave new world
Bigger
Understand the context
Pick the right tools
Align independent action
Activate networks
Leverage other’s resources
Better
Know what works (not)
Keep pace with change
Open up to new inputs/ideas
Share by default
Take smart risks
Evidence: Industry collaboration (National Collaboration Trust on Education);
specific forums for specific focus areas (beyond painting class rooms and the
OVC forum) – Western Cape Donor’s Forum)
2. Flipsides of the coin
Government in crises
Strains on safety nets
Collapsing service delivery
Weakened social support structures
Sharpened eye on non profit
performance
Rising funder/NGO tensions
Continued legislative reforms
Intense media and public scrutiny
Forced collaborations and mergers
Increasing social activism and
violence
Increased expenditure on CSI
Increased public participation
in giving
More innovation in
development approaches
Changing funding models
New localism
Volunteerism rising and
increasing
Increased communication on
giving
Evidence: Increased income disparity vs. increased quality of life
3. Lean and Mean
Impact of the recession:
Effective
Efficient
Strategic
Less is more
Less is less
Outcome of the recession:
Impersonal
Hands-off
Elusive
Exclusive
Abusive
Evidence: Website submissions only – no personal contact – no appointments –
automated responses. More CSI brochures are being printed and distributed than
ever before, sustainability reports on average has 4 pages dedicated to CSI SPENT!
Without a single/person/number/contact/e-mail!
4. War on Ideas
My flagship is
better/bigger/more expensive
than yours
Fewer programs
Bigger programs
Higher profile programs
More strategic programs
More exclusive programs
More internal programs
Evidence: Most flagship programs are single donor interventions – on average lasts for 2 years –
closely linked to brands – with multimedia advertising support – no communication about
impact – fly by night perception! Unilever – ‘saving life’s’ - not selling soap (Lifebuoy)
Capitec – SWOP Mall – conscious consumerism – recycle, upcycle – on trend
5. The next big thing
Capacity and leadership
development
Operating support
Enterprise development
Job creation
Good news: Collaboration is
evident
Bad news: NGO’s are being
measured on HOW they
spend money not the results
they achieve
Focus shift from social to
socio economic development
Evidence: Good News: Sponsoring NGO’s for industry events. Prepared to pay on
average 10% operating support. Bad News: It costs on average R1m to create a
single job or start a new enterprise.
6. Green (BLUE) is the new black
Environmental programs
Impact from operations
Impact of climate change
Risk issues and impact issues
Short term issues
Future issues
Food security
Water scarcity
Income/job disparity –
waste/recycling
Evidence: BHP Billiton offsetting 60 tonnes of carbon through the Wildlands Trust:
Question: Is carbon offsetting a social issue / operational issue / risk mitigating issue? Is
building a clinic the result of negative environmental or health impact on communities
(LTO) – risk mitigating strategy or CSI spend or infrastructure / local economic
development?
7. Alphabet Soup
BBBEE
LTO
GRI
IIRC
IPIECA
ICMM
ISO26000
KINGIII
UNGC
SLP
SED
PRI
IFC
OECD
Impact of governance and
compliance:
More due diligence:
Indicators to measure change
Impact – anecdotal evidence
Assurance – more paperwork
Reporting – evaluation
requires pictures for reports
New policies, codes of conduct
and strategies
Evidence: More reporting does not mean necessarily mean better reporting –
Practitioners will have to come to grips with the impact of governance, legislation
and reporting requirements AND have their work assured.
8. New Age Stuff
Social and ethics committees
Stakeholder engagement
Community perception
surveys
Human rights implications
Social audits
Baseline studies
Risk and opportunity studies
Impact studies
Beneficiation
New reports - Board committees oversight
New reporting lines - Corporate Affairs
New titles – Community Relations
practitioners, community engagement
practitioners, community liaison officers
New responsibilities – human rights audits in
programs
New strategies – linking to and integrating with
NDP, IDP, SLP
New focus areas – industry commitments
New criteria – ethics policies, vendor
registration processes, sustainability
credentials (water, energy, labour practices,
ethics policies)
Evidence: Signatories to local and international guidelines and codes
(ICMM and IPIECA) – global policies, local execution. Major impact for
companies moving into Africa
9. Hindsight is perfect sight
Spectacular failure
Spectacular success
Glimpses of brilliance
Theory of change
Theory vs. practice
Process vs. systems
Outsurance - Pointsmen
Dial Direct – Pothole Brigade
Healthcare workers Discovery
Mama’s - Clover
Holistic development
Cradle to grave development
Lifecycle development
Lifestage development
Evidence: Previously criticized (low profile) programs have become
‘unmissable’ solutions to social problems – Biggest success stories? Single
focus area and program!
10. Dangerous half truths
What's good for you may be
bad for them
What's bad for them maybe
good for you
Poverty has many dimensions
Poverty alleviation or
eradication
Development is hard work
Development is complex
Development is expensive
Development is systemic and
systematic
Development takes time
Evidence: Most programs have only short term and quantitative impact –
sustainability remains an oxymoron – development requires more than 12
month single cycle/single donor interventions – pass rates is not necessarily
an indication your program worked!
11. 1 to 100 in 10 seconds
The numbers game
Jobs
Pass rates
Books
Classes
Students
Learners
Teachers
Quantitative vs. qualitative
impact
Negative vs. positive impact
Intended vs. unintended
impact
Short term impact vs. long
term impact
Evidence: Sustainability reports only focus on quantitative data – not
aligned to reporting requirements – and no single report speaks about
qualitative impact = actual change. No single integrated report is able to
show the link between community relations and value creation
12. Dichotomies
Urgency for short term results
and stamina for the long term
Holding on to autonomy and
looking for opportunities to
coordinate and collaborate
Insisting on rigor and taking
risks despite uncertainties
Innovation and creativity
Responsiveness and
responsibility
Scalability and focus
Replicability and results
Evidence: Results of CSI reputation surveys indicated that only 10
companies in the whole country is getting it right! No new corporates on
the top 10 list for 10 years running!
13. Keeping up with the Jones’s
Asset-based funding
Seed funding
For profit funding
Social enterprises and social
entrepreneurs
Market-based solutions
Impact investment
Collective funding
Cause related funding
New words:
Resilience
Empowerment
Capacitating
Old words:
Sustainability – sustainable
development = no one knows
what it means or how to do it
or how to prove it
Evidence: Only one in 20 funders will consider new funding approaches
over the next two years. Only one in 30 funders will consider changing
their funding criteria within the next 2 years.
14. Volunteerism is cool
Growth in volunteerism
Everyone is a hero
Everyone can make a
difference
Everyone wants to make a
difference
Employee engagement is the
latest and coolest new tool in
the box
It starts with me
It is all about me
Rewarding volunteerism
Evidence: One in three corporates now have some form of facilitated
employee volunteer program – and one in five have a dedicated
practitioner to volunteerism. One in two corporates reward
volunteerism!
15. Please give that man a fish
Give a man a fish…
Give a man a rod…
Educate a women and you ….
Cash is no longer king
Education is no longer cool
HIV is no longer an issue
Babies are more sustainable
than old people
Cost benefit analysis is the new
thing
Sustainability of fishing
sources
Endangered fish on the red list
Impact of climate change on
fishing industry
Fishing licenses
All the kings horses and all the
kings men could not save
NEMO
Question: What happens after the fish is caught? Give a man a fish and
feed him for a day; teach a man to fish and you feed him for a life time;
show him how to use Google search and he can teach himself how to
fish!
16. I know what you did last summer
Unlikely bedfellows
NUMSA, EFF, AMCU
Righttoknow
Solidarity
Benchmarks and Lonmin
Community activism is on the
up
Community activism may
affect you negatively
Community activism may
destroy your legacy
Burning down of schools and
libraries, clinics
Evidence: Funding of political parties, funding of political leaders, funding of
trade unions, funding of advocacy groups – what you report, where you
report, do you read your own company’s sustainability/integrated reports,
when last did you scan the media for information about your company?
17. Local is lekker – Joe & Jane Soap
Urban vs. rural funding
The new donor/philanthropist
= Joe Soap
Local Hero’s (volunteers)
(Not) In my back yard
Giving without boarders
(Zimbabwe and diaspora)
Crowdsourcing
Local food gardens / markets /
produce
Local recycling
Local products
Request from ordinary citizens
(not a formal NGO) who are
the new facilitators and
fundraisers
Evidence: Communities are organizing themselves: But no-one
remembers who gave them the hand up! Khayalitsha cookies, Mielies,
Men at the Side of the Road, Shanduka, Changemakers, Santa’s boxes,
Kylie Mycroft, Claire Reed
18. Status Quo is not an option
Investment = Return
Responsive = Proactive
Needs focused = Outcomes
focused
Transaction based =
Relationship based
Organisational funding = Issue
funding
Cash giving = Value chain
integration
Management = Leadership
Most companies have some
form of M&E
Only one in ten companies
conduct some form of impact
study
Less than half of companies
record the number of
beneficiaries
Less than 20% of companies
do baseline studies
Evidence: Becoming more strategic does not necessarily mean you have
increased impact. Poorest regions still gets the least funding, national
programs does not mean national impact. Companies moving into
Africa (30% of all corporates) – uses the same strategy, focus areas,
process, methodology as in South Africa.
19. A horse, a horse, my kingdom for a
horse
Shared value & shared risk
Risk vs. impact
Ethics, morals, values
The elusive sustainability
point
Disaster relief vs.
infrastructure
Minority vs. majority funding
Gender based funding
Old vs. young
Jobs vs. food
Books vs. labs
Urban vs. rural
Crime vs. rehabilitation
Art vs. houses
Evidence: Strategies have not become diversified – but focus areas
have. Strategic CSI needs to re-invent itself – it is not about MORE of
the SAME. Neither is it about doing MORE with LESS. Look out for the
new word – not STRATEGIC CSI – But CATALYTIC CSI
20. Two hills ahead
The pressure to measure
What you know
What you don’t know
What you don’t know you
don’t know
Are you sure you want to
know?
Doing what matters
Doing what is right
Doing it the right way
Accountability
Flexibility
Authenticity
Engaged
Engage widely
Research deeply
Compare extensively
Collaborate creatively
Communicate honestly
Innovate flexibly
Question: Towards Best Practice – what will it take? WHO is getting it right – Nedbank
Foundation, FirstRand Group (FNB, RMB, Wesbank & Firstrand Foundation)
Evidence: Homegrown best practice: Global Awards – Transnet Phelophepa and BHP
Billiton Treepreneur Project
Advice for the Future
Trap Number 1: Once we have
figured out the business model
and strategy, we don’t need to
worry about it anymore!
Trap Number 2: Grow, baby,
grow!
Trap Number 3: If it worked for
them, it will work for us!
Align for Success - In figuring out
the right roles and resource
priorities, the biggest challenge for
many community foundations is
aligning values, strategic priorities,
business model choices, and
organizational culture.
Adapt to Thrive - Community
practitioners will always be
challenged to adapt to serve an
ever-changing set of community
and donor priorities, focusing on
impact today and permanence as
an enduring community resource.
Questions and Discussion
What did we miss?
Examples of your own
practice?
What will it take?
What do we need to do?
Contact
Reana Rossouw
Next Generation Consultants - Specialists in Development
E-mail: [email protected]
Web: www.nextgeneration.co.za
PLEASE NOTE: THIS PRESENTATION IS PART OF A LARGER BODY OF
RESEARCH! THIS INFORMATION IS COPYWRITED AND THE
INTELLECTUAL PROPERTY OF NEXT GENERATION CONSULTANTS.