Mentor+Training+2010+-+SSI

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Practical Business Solutions for Social ChangeSales for Social Impact (SSI)

Mentor Training 2010August, 2010



Training Outline

� Program Overview

� Mentor roles± Subject Matter Expert

± Guest Lecture± Team Mentor

� Process± What next?



Terms

� Social Venture/Business - Uses businesssolutions to accomplish social goals(environmental, public health, povertyalleviation, etc.

� NGO ± Non-Governmental Organization ± a nonprofit organization.

� Social Impact - Create a positive change in theworld as the result of creating and selling a

particular product or service.� Base of Pyramid (BOP) ± The 1-2 billion people

worldwide who live on a few dollars or less per day.



SSI Objectives and Process

Goal

To create viable sales plans for social ventures.

Inputs

a social business with a product or service I an unmetsocial need I background and curriculum I framework I

mentor network I exposure to industry.

Outcome

the anticipated outcome is a range of sales plans that areready to be brought to ³realization´ by the students on

the teams or by the social venture.



Course Learning Objectives

� To discuss the role of social impact in business

� To recognize the implications of working with andselling to people from different cultures

�T

o utilize primary and secondary research toinform a sales plan and understand the Voice of the Customer

� To analyze the factors leading to a sales plan

� To understand why selling to the Base of the

Pyramid (BOP) is significant� To understand how selling to the BOP differs from

and is similar to selling at other for-profitorganizations



Course Inception

� SSI will give students real-world

experience creating a sales plan and

introduce them to ways business can be a³force for good´

� Development of SSI is a collaborative

effort among

± The Acara Institute

± 3M¶s Frontline Sales Program

± Partner schools

± Compatible Technology International (CTI)



The Acara Institute

� Non-profit 501(c)(3) organization affiliated with theUniversity of Minnesota

� Mission: Create Businesses that lead to SocialChange

� Formed in 2008 with initial programs focused onproduct development and business teams

� 2010 Acara Business Challenge focused onenergy and water business in India

± 14 participating universities± Top 4 business plans selected for refinement and

implementation, pending VC funding

� More info at www.acarainstitute.org



3M¶s Frontline Initiative

� Long-standing partnership with selected

Universities to:

± Develop accredited sales curricula as basis for

student internships and hiring diverse, qualified salesrepresentatives

± Build 3M Brand awareness and reputation with

business schools

� 3M sponsored:± Student Internships

± Faculty Fellowships and Research Grants

± Annual academic conference



Partner Universities

� 7 schools will participate in the pilot this fall± Baylor University (Waco, TX)

± DePaul University (Chicago, IL)

± North Carolina A&T State University (Greensboro, NC)

± Indiana University (Bloomington, IN)

± Southern University (Baton Rouge, LA)

± St. Catherine University (St. Paul, MN)

± University of Houston (Houston, TX)

� Other U.S. schools in the Frontline program willobserve

� Makerere University in Uganda will provide field

research support



Compatible Technology International

Vision: A world in which all people haveadequate nutritious food and cleanwater.

http://www.youtube.com/watch?v=xKQX2KOC9Dc&feature=player_embedded



Your Challenge

With your team, develop a sales plan to sell

in Uganda ONE of two CTI products:Burr Mill Grinder Potato Processor



What is the role of a mentor?

� Why is it important?± This course covers a broad swath of material, it is impossible to

understand all the details and applications

± The mentor helps the teams understand how to apply theprocess in their situation

� This course is not an academic exercise, it¶s real peoplewith real problems. Your experience is critical to theteams to help bridge that understanding.

� Asking the hard questions early on, makes the end resultso much better.

� Give the team confidence to try things� Remember the Cardinal Rule of Mentoring: This is notYOUR competition



Subject Matter Expert (SME)

� Shared resource

� Expertise could be in

- Business (e.g. Sales plan, marketing)

- Cultural (e.g. Uganda)

- Technology (food technology)

- Design

� Will be using LinkedIN Acara Institute group for to initiate questions from students/instructors.

� Continued interaction over email/phone

±



Guest Lecturer

� Provides input on a particular subject via a

class lecture

� Essentially like a SME but could limitthemselves to just the lecture

� Time commitment is 2-4 hours, one time.



Team Mentor

� Team mentors dedicate themselves to a

single university team and guide them

through the entire cycle

± Course

± Challenge

± Perhaps further (post-semester implement

plan)

� 2-3 hours a week (in person or virtually)



Milestones/Course Overview

Week 1: Team Formation

± Establish team relationships and define each member¶s role

± Contact mentor and Ugandan students

Week 2: Primary & Secondary Research

± Conduct secondhand research to gain a basic understanding of

Ugandan culture, history, geography, and food practice.

± Determine field research needed and begin formulating

questions to send to teammates.

Week 3: Sales Channels; CTI and its Products

± Choose a product to sell.

± Send research questions to Ugandan teammates (it is advised to

review the questions with a mentor or instructor before sending

them).




Week 4: Understanding the BOP Market

± Complete assigned readings to gain a clear understanding of the

BOP market and the concept of social ventures.

Week 5: Measuring Social Impact; Microfinance

Week 6: Market Segmentation

Week 7: Mid-term Evaluation/Check-In

± Check in with mentors and 3M team leaders

± Consolidate and organize all information from Ugandan

Research Partners and begin analysis

Week 8: Market Trends, Sales Objectives

Week 9: Sales Model, Budget, Sales Forecast

Week 10: Sales Organization Structure, Timeline, Sales Action Plan,

Key Success Factors




Week 11: Test Plan, Market Information from Marketing Dept. vs. What

You Find In Practice

Week 12: Risks & Assumptions; Competitors

Week 13: Wrap-Up; Feedback on Sales Plan

± Get feedback on Sales Plan from instructors, mentors and/or other resources.

Week 14: Final Presentations

± Deliver finished Sales Plan and present it to Acara judges via web or in

person.



Team Mentor Guidelines

� Remember the Cardinal Rule of Mentoring: This is not YOURcompetition± Let the students do the work, thinking and determine the direction of THEIR project.

± Guide and offer input but don¶t do the thinking for them.

� Students are smart, talented, and passionate!± Cross disciplinary, undergrads, graduate students.

± Very creative, hard working, concerned and thoughtful.

± Depending on the team makeup, they may be weak in the areas of finance, logistics, presentation skills and methods to drive creativethinking. These are areas where you can help them.

� Help with Ideation: brainstorming, down-select, cannot solve theentire problem, focus on a issue where there is an urgent need

� Emphasize ³VOC :́ Voice of the Customer. They are developing aplan for a community based in a different country or that they maynot be familiar with, it¶s important to understand the µreal¶ needs or the concept will fail.



Team Mentor Guidelines

� Help the team with basic program management and organizationskills, such as

± Help plan a timeline and clear deliverables

± Schedule face to face meetings (university, their dorm, coffeeshop), or weekly (?) conference calls to track progress

± Help them to ask the right questions± Presentation preparation: attend dry runs, make notes, attend

their dry runs outside class, work together to perfect the pitch incontent and delivery style, help prepare for Q&A.

� Review Sales Plan, cash flow, profitability.

± Developing a Sales Plan is their key task. Continue to ask the

team to clarify the value proposition, who will buy theproduct/service, who will sell it, what are the alternatives, whatare the risks to their idea, etc.



Potential Problems

� My team doesn¶t contact me± Teams are instructed to take the initiative but many don¶t. Working with a mentor

outside the classroom isn¶t a typical situation for them and they may be reluctantto take the initiative. If you don¶t hear, contact the instructor or program manager and ask for the student contact info and contact them.

� My team is pursuing an idea I KNOW won¶t work

± Look at this carefully. Sometimes not knowing better can lead to a creativesolution. But if the team is doing something that clearly has serious issues, bringup things they should consider. Don¶t¶ say ³This won¶t work´ but say, ³Make sureyou consider x, y and z´. That¶s your role as mentor, to bring in experience.

� My team doesn¶t listen to me± See above answer. But if they don¶t pay any attention at all, then talk to the

professor and contact Acara for suggestions.

� There are team d y namic issues, how do I help?± This can be the most difficult problem. Try to help mediate a discussion to see if

it is a role issue (Who is doing what), a disagreement on approach (use somestructured decision making tools to help) or general personality conflict. Talk tothe professor, get their advice, they are likely aware of the problem as well.



Potential Problems

� The other half of the team in the other countr y doesn¶t communicateor isn¶t cooperative

± Use the team role discussion to help both sides understand their roles. Help theteam understand if it is a logistical issue (time zones, bad internet connections,schedule conflicts) or actual disagreement on approach. Emphasize theimportance of communication styles that may vary from country to country,

phone vs. email, proactive vs passive, make sure their counterpart global teamfeels important, value the feedback from the other team.

� The professor gives contradictor y advice to mine (or I don¶t agreewith what he/she is teaching)

± Don¶t try to change it, it will confuse the students. If it is a minor issue over tactical things, then don¶t worry about it. If there is a major conflict you may needto talk to the professor to understand better why there is a difference. Remember that these are social businesses, which may cause some difference of opinion as

that term covers a broad area and many people interpret it differently.� I realize after I committed, I don¶t have time to do this.

± Let Acara and the program manager know as soon as possible. We understand,it¶s a volunteer commitment and work and family priorities can change rapidlysometimes.

� We have hard time finding a time to meet.± Yes, this can be hard. No easy answer to this.



Sample Questions to Ask

� Is this enterprise¶s product or service one poor

customers will pay for? Do low-income people say they

want it, or has someone decided they need it? Does the

enterprise need to ³push´ the product? If yes, how, and

how can the channel absorb the cost of the push?� What substitutes exist for the product? How else do poor

customers satisfy the demand the product or service

offers?

� What is the price, and how does it match up to irregular and unpredictable cash flows?

� What is the revenue model? The distribution model?

How strong are the market linkages to end buyers and

their preferences?Source: Monitor Group ³Emerging Markets, Emerging Models´, March, 2009



Selling at the BOP

� What¶s different?

� Selling is still selling. It¶s an emotional decision,

people aspire to similar things, and buy what

they want not what they need .

� For example, consumers don¶t buy drip irrigation

because it uses less water, or even increases

yields. They buy it to get more money for their

family, for things like education, entertainment,

etc.

References: Ramkishen, Y. ³New Perspectives on Rural Marketing, Jaico Publishing House; Rirchandani, Rahul,

³Evolving a New Marketing Mix for Selling to Rural Indians,: Concept Paper, Sept, 2005; ³Marketing to Ruralconsumers ± Understanding and tapping the Rural Market Potential, ³ IIMK Rept., April, 2008.



Selling at the BOP

� Product

± Take into account availability of services (poor

or no electricity) and auxiliary products

(batteries for ex.)

� Pricing

± Price sensitivity is very high

± Pricing should be for affordable valueofferings. Doesn¶t necessarily mean ³cheap´.

± Pay attention to the consumers seasonal cash

flow



Selling at the BOP

� Promotion and Advertising

± Consumers like to touch and feel a product

before making a decision

± Many of the consumers may be illiterate.

± Intermediaries are often the foundations of

rural distribution. These trusted members of

the community, represent your product. Workwith them closely. This is similar to distribution

models in the US like Avon or Tupperware.



Business Models for BOP

� The Monitor Group in Mumbai did an

extensive survey of the Base of the

Pyramid market (BOP) in India and

identified 7 basic business models in use.

� Reference: Emerging Markets, Emerging

Models´, March, 2009.

� These models are summarized in the next

slides.



Pay-Per-Use

� A Pay-Per-Use approach in which

consumers pay lower costs for each use of

a group-owned facility, product, or service.

This limits the impact on their cash Àow

while the sheer numbers of consumers

makes the proposition suf¿ciently

attractive for third-party providers.



No Frills

� A pared-down, No Frills service that

meets the basic needs of the poor at ultra-

low prices and still generates positive cash

Àow and pro¿ts through high volume, high

asset utilization, and service

specialization.



Paraskilling

� Paraskilling, which combines No Frills

services with a reengineering of complex

services and processes into a set of

disaggregated simple standardized tasks

that can be undertaken by workers without

specialized quali¿cation.



Shared Channels

� Distribution networks that reach into

remote markets via Shared Channels,

piggybacking products and services

through existing customer supply chains,

thus enabling poor people to afford and

gain access to socially bene¿cial goods

such as solar lanterns or ef¿cientkerosene burners.



Contract Production

� A system of Contract Production that directly

involves small-scale farmers or producers in

rural supply chains. The contractor organizes

the supply chain from the top, provides criticalinputs, speci¿cations, training, and credit to its

suppliers, and the supplier provides assured

quantities of specialty produce at fair and

guaranteed prices.� This model, along with the next two, engage low-

income suppliers or producers.



Deep Procurement

� A variety of Deep Procurement setups

that bypass traditional middlemen and

reach into the base of the economic

pyramid, enabling direct purchases from

large networks of low-income producers

and farmers in rural markets and often

providing training for quality and other speci¿cations.



Demand-Led Training

� Demand-Led Training that applies a

formal-sector ³temp agency´ model to

down-market opportunities, with

enterprises paying a third-party to identify,

train, and place employees for job

openings at the edges of the formal and

informal sectors.



What next?

� Roles of Acara University Program Manager, Professor and Acara± University PM

± Professor

± Acara

± Mentor

� Assignment Process± Getting connected

± Meeting with Professor

� Use of LinkedIn and Basecamp± LinkedIN Acara Institute group ± place for students, mentors and professors to

ask questions to the broader Acara community.

± Basecamp. For team mentors, information distribution only (TBD if we do this)



University Program Manager

PMs are students (teaching assistants or similar)

Tasks:

Before challenge ±1. Recruit mentors (alum groups, local social networks, personal professional network)

2. Work with faculty to review applications (optional)3. Send mentors Challenge details, links to training videos

During the Semester ±1. Prepare list of mentors for your site and hand out to students to make selections

2. Update your mentor list with their teams

3. Send introduction email to mentor and respective team

4. Provide mentors with class schedule, key dates (midterm, business plan submission, final

pitch)5. Work with faculty to make AV arrangements throughout semester

6. Work with college newsletter for class coverage

7. Collect feedback on mentors from students

Time Commitment: Approximately 8hrs a week

Biweekly status calls, Acara updates, group emails

Mentor+Training+2010+-+SSI

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