Social entrepreneurs are like their kin in the nonprofit world: passionate, dedicated and, as founders, wearers of many hats. It is very hard to let go, whether you are a social entrepreneur or a http://ventureneer.com/vblog/take-break-leaders-benefit-sabbaticals [nonprofit leader] but it is an absolute necessity to do so. No one can do everything well; as businesses and nonprofits grow, an ever wider ranger of skill is needed. Besides, as we are all finding out, collaboration yields many unexpected benefits.
It is true that social entrepreneurs will need all the passion and dedication to pursue their goal. But also it is very important that a social entrepreneur must have the necessary business skills in order to ensure the financial success of the social enterprise. These business skills can be learned in the business school but then such skills must be continually honed and refined through practice. And this of course will take time. As a result, a social entrepreneur must endure many mistakes and must rise up from every failure ever more wise and stronger from the previous failures.
The Suzanne Morris experience shocked me, but perhaps not for the reasons intended. In the wake of the global financial crisis, many talented bankers are looking to support social entrepreneurship and investment but finding ways to take advantage of current skill sets and build new ones is a challenge. What struck me here was that Ms. Morris only learned after starting work that there had been four COOs in a year and a half. Shouldn’t this have emerged in pre-employment due diligence? Was the problem that enthusiasm took the place of thorough due diligence or did the non-profit fall short on transparency? The opportunity to do good does not supercede the fiduciary responsibilities of a C-level officer (or potential officer). Bankers looking to have social impact need to apply the same type of skills and diligence as they did in the banking sector—and non-profits hoping to expand their human capital base should be aware that an understanding of the importance of social entrepreneurship is not the same as an understanding of managing a multiple bottom line. Regardless of whether we are entrepreneurs, investors or other types of change agents, successful new ventures require strong teams—each of us needs to be aware of our strengths and weaknesses in order to build on the former and overcome the latter.
Think social entrepreneurs think differently than the for-profits. They don’t think that they can scale it up because they so passionate about their ideas that afraid that other people won’t be able to see through their passion. Your point of view helps me think through the kind of leadership team we want to have. Thanks for the write-up.
Chantal and Kimberly: Thanks for a very useful framing. One quibble: I wouldn’t dismiss out of hand the possibility of some of the five positions being outsourced. In fact, during the small-to-medium sized phase, outsourcing the Realist/CFO function may produce the best results. It would take some creativity but I can even imagine outsourcing the Connector or the Scaling Partner roles. The crucial thing, I think, would be that they be outsourced to someone with the right skills who sees herself as committed to and accountable for the full role you describe and who can develop the right relationships. She can’t just be someone who contracts to perform tasks. If we get that right whether she gets a W-2 or a 1099 isn’t that big a deal. Thanks, again, for a thoughtful and useful piece.
At the EH Foundation, we believe a strong core team drives the success of a social enterprise. As a tip for social entrepreneurs out there, assemble your key team members before proving your concept if possible and certainly before raising growth capital. You will then be better positioned to integrate changes, take on strategic partners/suppliers and raise awareness of your work.
COMMENTS
BY Geri Stengel
ON September 8, 2010 07:36 AM
Social entrepreneurs are like their kin in the nonprofit world: passionate, dedicated and, as founders, wearers of many hats. It is very hard to let go, whether you are a social entrepreneur or a http://ventureneer.com/vblog/take-break-leaders-benefit-sabbaticals [nonprofit leader] but it is an absolute necessity to do so. No one can do everything well; as businesses and nonprofits grow, an ever wider ranger of skill is needed. Besides, as we are all finding out, collaboration yields many unexpected benefits.
BY Francis Osorio
ON September 20, 2010 06:33 AM
It is true that social entrepreneurs will need all the passion and dedication to pursue their goal. But also it is very important that a social entrepreneur must have the necessary business skills in order to ensure the financial success of the social enterprise. These business skills can be learned in the business school but then such skills must be continually honed and refined through practice. And this of course will take time. As a result, a social entrepreneur must endure many mistakes and must rise up from every failure ever more wise and stronger from the previous failures.
BY Glen Macdonald
ON September 23, 2010 08:19 PM
Many of today’s coporations where founded by yesteryears’ social entreprneurs. Tom Edison and GE and the founder of Northwestern Mutual.
BY Lauren Burnhill
ON September 24, 2010 01:01 PM
The Suzanne Morris experience shocked me, but perhaps not for the reasons intended. In the wake of the global financial crisis, many talented bankers are looking to support social entrepreneurship and investment but finding ways to take advantage of current skill sets and build new ones is a challenge. What struck me here was that Ms. Morris only learned after starting work that there had been four COOs in a year and a half. Shouldn’t this have emerged in pre-employment due diligence? Was the problem that enthusiasm took the place of thorough due diligence or did the non-profit fall short on transparency? The opportunity to do good does not supercede the fiduciary responsibilities of a C-level officer (or potential officer). Bankers looking to have social impact need to apply the same type of skills and diligence as they did in the banking sector—and non-profits hoping to expand their human capital base should be aware that an understanding of the importance of social entrepreneurship is not the same as an understanding of managing a multiple bottom line. Regardless of whether we are entrepreneurs, investors or other types of change agents, successful new ventures require strong teams—each of us needs to be aware of our strengths and weaknesses in order to build on the former and overcome the latter.
BY Dewita Soeharjono
ON September 27, 2010 10:18 AM
Think social entrepreneurs think differently than the for-profits. They don’t think that they can scale it up because they so passionate about their ideas that afraid that other people won’t be able to see through their passion. Your point of view helps me think through the kind of leadership team we want to have. Thanks for the write-up.
BY Pat Nichols
ON September 28, 2010 01:17 PM
Chantal and Kimberly: Thanks for a very useful framing. One quibble: I wouldn’t dismiss out of hand the possibility of some of the five positions being outsourced. In fact, during the small-to-medium sized phase, outsourcing the Realist/CFO function may produce the best results. It would take some creativity but I can even imagine outsourcing the Connector or the Scaling Partner roles. The crucial thing, I think, would be that they be outsourced to someone with the right skills who sees herself as committed to and accountable for the full role you describe and who can develop the right relationships. She can’t just be someone who contracts to perform tasks. If we get that right whether she gets a W-2 or a 1099 isn’t that big a deal. Thanks, again, for a thoughtful and useful piece.
BY Eva Yazhari
ON November 10, 2010 05:21 AM
At the EH Foundation, we believe a strong core team drives the success of a social enterprise. As a tip for social entrepreneurs out there, assemble your key team members before proving your concept if possible and certainly before raising growth capital. You will then be better positioned to integrate changes, take on strategic partners/suppliers and raise awareness of your work.