ENTR4800 Class 6 (Part 1): Operations and HR Considerations for Social Enterprise

ENTR 4800: Social Entrepreneurship

Class 6 (Part 1): Operational and HR Considerations

Monday, October 25, 2010

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Instructors: Norm Tasevski ([email protected])

Karim Harji ([email protected])


Agenda

•  Greyston Bakery •  What did we learn – Last Week? •  “Live Case” - Christine Ho (Well of Change) •  HR Considerations •  Operational Considerations •  Part 2 – Legal Considerations (other slide deck)

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Last Week – What did we learn?

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Well of Change – Christine Ho

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HR Considerations…

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Where does HR Fit?

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A Caveat…

Think of your HR from the perspective of “running a business”, not “running a charity”

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A Second Caveat…

Your HR Strategy must align with your business model and align with organizational values

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What if you were a…

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Product-based, for-profit Social Business…!

“Purpose-built”, non-profit Social Enterprise…!

“Fee-for-service” Social Business…!

“Virtual” Platform…!


What If you were a…. Product-based social business!

•  Types of Employees?

•  Volunteers?

•  HR/volunteer management?

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What If you were a…. Purpose-built social enterprise?!

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•  Volunteers?



What If you were a…. Fee-for-service Social Business? !

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•  Volunteers?



What If you were a…. Virtual platform? !

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•  Volunteers?



Other HR Considerations…

•  Who/what do you need?

•  How do you find the right people?

•  How do you define what they do?

•  How (and from where) do you pay them?

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Exercise: What HR Strategy makes sense for…!


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Exercise: What HR Strategy makes sense for…!

Your venture???!


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Balancing Financial and Social Tensions

•  “Social cost”

•  Business acumen

•  Two missions – may lead to confusion/conflict

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Governance and Decision Making

Board of Directors •  Defining structure, roles, desired competencies •  Governance principles; identifying accountabilities •  Recruitment of members (tied to skill sets required) •  Relationship between management and Board •  Relationship with investors or funders •  Relationship with other stakeholders •  Managing tension between financial and social

objectives and activities

Management •  Responsibilities and accountability for each position •  Skills gaps and how will they be addressed •  Will staffing needs change as the enterprise grows?

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Summary: Key Questions

•  Who will manage the business? •  How do you plan to staff the venture? •  Will staff require special training or accreditation? •  Will the non-profit’s clients be hired? If so, are there any special

accommodations that will require additional staff or other resources? •  Will staff work on contract, for honoraria, or on a permanent basis? •  Do you have a person with business experience and/or training on

staff and how will that person be utilized? •  Does the staffing plan match your operational needs and revenue

growth projections? •  How will the staffing needs change as the enterprise grows? •  Are any of the positions transitional by design? If so, how will the high

turnover rates be accounted for in the enterprise? •  How easy will it be to attract qualified staff with anticipated working

conditions and salaries? •  What is the organizational chart? What is the accountability of each

staff member? Source: http://www.enterprisingnonprofits.ca/sites/www.enterprisingnonprofits.ca/files/uploads/SEGUIDE_Web_Chapter_Five.pdf 21

Operational Considerations…

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How do you… Operationalize your Value Proposition?!

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Your venture???!

???!


How do you… Operationalize your “Customer” function?!

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Your venture???!

???!


How do you… Operationalize your Channels?!

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Your venture???!

???!


How do you… Operationalize your “Relationships” function?!

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Your venture???!

???!


How do you… Operationalize your Key Resources?!

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Your venture???!

???!


How do you… Operationalize your Key Activities?!

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Your venture???!

???!


How do you… Operationalize your Partner Development?!

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Your venture???!

???!


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Balancing Financial and Social Tensions

•  “Social cost”

•  Business acumen

•  Two missions – may lead to confusion/conflict

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Summary: Key Questions

•  How will you operationalize each segment of the business model?

•  How will you ensure that you adequately understand and capture your considerations and assumptions?

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Appendix: MaRS workbooks

1. Building an A-Team •  What values do you seek in new hires? •  As the company grows, what new hires will you need and when? •  What skills do successful employees at your company require? •  What qualities do your employees need to make them excellent? •  How should you screen and interview to find the best candidates? •  How do you make an official offer of employment?

2. Compensation •  What forms of compensation are most effective for a start-up? •  How do I structure my employee stock option plan? •  What benefits am I legally required to provide and how much will they cost? •  How do I build a realistic and comprehensive HR budget?

3. HR at Work •  How do I effectively bring new people on board? •  How do I establish and conduct performance reviews? •  What are the essential HR policies and procedures I need to have in place? •  How do I create an effective employee handbook?

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Break

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ENTR4800 Class 6 (Part 1): Operations and HR Considerations for Social Enterprise

Business

Transcript of ENTR4800 Class 6 (Part 1): Operations and HR Considerations for Social Enterprise