What do YOU see?
I'm now going to post my shortest entry ever...
because i'm curious to hear what you all see as the "best new thing" you have heard about in the last two months...
I'm working on a new paper with Josh Spitzer on blended value investing and we are gathering examples of a number of funds and investment instruments that are being developed/rolled out around the world...these capital tools offer some level of financial return and performance together with strategic social impact and/or environmental value. The paper will be presented at Davos 2006 (I'll post it after the session), but working on it got me thinking about how many incredible things are currently taking place around the world not only in the capital arena, but in terms of
new types of organizations that are being created (for-profits with strong social mission, nonprofits seeking to leverage economic value),
new leaders who are drawing upon business acumen in order to create/lead new corporations to maximize their full, blended value potential,
new frameworks for tracking performance of both capital and organizations,
and the implications of all this activity in terms of public policy, the role of government, tax and regulatory structures and so forth...
The "trick" is that ALL the above are in transition, being modified and re-tooled in order to ensure they create and maximize the total value people seek to advance through their work and lives...
Over coming weeks, I will begin reporting in on current conversations I'm having and things I'm seeing in my various travels that hold what I think to be real promise in terms of this work and all our efforts, but I also wanted to tee this question up to those of you who are coming to and beginning to use this site:
What do YOU see as the most promising ideas, efforts or initiatives?
I don't care if they are your own or ones you've simply heard about, but what are some of the cooler things you've encountered in your journey?
Look forward to hearing from you!
Jed
7 responses. (Add yours.)
Josh Spitzer — Nov 25 2005 05:15 AM
In the course of researching the paper that Jed mentioned above, we have come across quite a few great individuals and organizations that are doing incredible, innovative work that does not quite fit the focus of this paper. In due course, I’ll try to share some of them in this format. First, though, I’ll introduce one that did make it into the paper.
MicroCredit Enterprises (MCE, http://microcreditenterprises.org) has developed a strategy that allows individuals and institutions to pledge their existing assets as collateral for loans to microfinance institutions (MFIs) all over the world. The MFIs then use that capital to make microloans to their poor clients. The guarantors continue to manage their assets as per usual, realizing the gains and losses in those accounts. Their capital is only touched if the MFIs default on the loans that are being guaranteed by MCE’s guarantors. MCE has developed strong relationships with the banks and foundations that provide the loan capital (the funds that are passed on to MFIs). It also works very closely with various MFI networks that help administer and monitor the loans to the MFIs. The program is targeting the poorest microcredit customers, and its founder, Jonathan Lewis, estimates that one $1 million guarantee translates into 20,000 microloans in the first year alone.
MCE is doing all of this great work with an open-source model. It has waived the copyright on all of its materials so others can use them to build their own similar programs. Lewis figures that the open model keeps people innovating in real time, keeps MCE honest, and gives them the power of all the minds that examine their work.
MCE’s openness is exceptional. I found that so much of the most innovative work in this space is kept under wraps until it has been completed or is simply old news to the experts in the field. So, there’s a real lag between the development of these innovations and the discourse around them. There are a lot of really good reasons for the secrecy—securities regulations, for one. Nevertheless, the secrecy creates an elite group of people with privileged access to the innovation; then, the rest of us have to keep a keen eye out for stuff on the horizon and hope that we hoover up the most important of those innovations once they hit the press releases.
I’m not sure that we can break down all of the barriers to openly sharing information (and, as I said, there are some very good reasons for keeping some innovative work under wraps until it has been completed). Nevertheless, MCE’s approach is refreshing. Is anyone else aware of similar “open-source” approaches to innovation in this realm?
By the way, MCE’s website has a great library of resources on microfinance.
Kevin Jones — Nov 30 2005 05:11 AM
A transformed investor paradigm is the big story. More deals are happening, more easily and more quickly. That's why we are working on mapping the space and starting a business focused on funnelling more money into microfinance, fair trade, social enterprise, low income housing, independent media and other areas.
Cynthia Owens — Feb 23 2006 09:48 AM
Jed,
I see this all the time as companies try to figure out how to evolve in a world that is changing fast, faster than most companies can cope. What I like about the Blended idea, is that it captures more simply what companies are struggling to figure out.
I work in Asia and different companies and different countries are at very different stages. For me, it's been surprising to see the Blending happening in some of the least developed countries.
I ran across a UK company called Carbon Neutral which appears to help companies and individuals find some solutions. I don't know much about the business per se, but it is an interesting idea.
I hope you are having a great winter Jed! co
Evan Paul — Jun 16 2006 05:02 PM
Jed,
A project to put on your radar screen is Corporation 2020. It's a collaborative effort of folks from a variety of sectors to look at redesigning corporations from the ground up to integrate social, economic, and environmental values. Anna Fleder coordinates their efforts.
Evan
Lance Parker — Oct 5 2006 07:42 PM
A private social equity project (debt is also available) to build more energy efficient houses and strong communities in San Pedro Sula, Honduras is underway. Mixed-use development and community empowerment are the themes. This is a for-profit venture with strong social underpinnings.
$4million has been raised for the residential project, $2m of $4m raised for the commercial project so far. Investors need not be accredited; $25k minimum investment makes it accessible to smaller investors.
DAL — Dec 5 2006 03:19 PM
Foundation Strategy Group has done some great work on the potential profits associated with socially responsible investing:
http://www.fsg-impact.org/app/content/ideas/item/287
Simon — Jan 4 2007 03:27 PM
Hi,
I just heard your podcast on Stanford Social Entrepreneurs.
Really nice, how you got all this current ideas into one concept. a concept for a paradigm shift.
I writing my thesis about the "Fortune at the Bottom of the Pyramide" approach form C.K. Prahalad. I will focus on developing a framework for the co-creation of BoP products between NPO and priavte companies.
I think this iniative is a very initial, but crucial step for the blended value proposition.
I am conducting the thesis in India right now.
I would also like to hear opinions from others to my research project.
Regards,
Simon