Background. Seeing the world from the top down in governments. Seeing the world from the bottom up in NGOs, community projects, enterprises

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2 Background Seeing the world from the top down in governments Seeing the world from the bottom up in NGOs, community projects, enterprises

3 A world that s focused on economic growth with policies, institutions, metrics but poor at social growth

4 How to innovate more effective ways to meet social needs, to raise social growth? What skills, methods, policies, programmes?

5 Background

6 Michael Young ( ) Michael Young Policy maker shaped UK welfare state Sociologist and writer - coined term meritocracy, pioneer of thinking about ageing, family &c Social entrepreneur initiator of over 60 organisations and probably the world s most successful entrepreneur of social enterprises Daniel Bell

7 Seeing people as competent interpreters of their own lives and involving citizens and beneficiaries in design and implementation Just do it! Move fast into action and practice No as a question not an answer: be persistent

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10 65+ staff ventures (charity, private and public)...projects in 35 local areas around the UK... Staff in New York, Paris, Lisbon and partners in many countries 10

11 What can be done to reduce isolation in old age? What kind of school would have teenagers fighting to get in, not to keep out? How can a city think? What makes people happy? What if everyone became a teacher and a learner?... and translate into practical impact through ventures, projects

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15 Social innovations are innovations that are social both in their ends and in their means. Specifically, we define social innovations as new ideas (products, services and models) that simultaneously meet social needs (more effectively than alternatives) and create new social relationships or collaborations. In other words they are innovations that are both good for society and enhance society s capacity to act.

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18 The public sector Innovation Funds Tekes/SITRA, RIFs, US Education Innovation Fund, EU Equal programme Innovation Universities Aalto University, Finland, Bilbao Social Innovation Park Innovation teams public services innovation lab, Office of Social Innovation in the White House Innovation policies Personal budgets for care, feed-in tariffs for energy Participation Seoul Metropolitan Government s Imagination Bank, South Korea Police Act Wiki, New Zealand Regulation and legislation New legal forms, Community Interest Companies, non-incorporated companies in Vermont

19 October 2009: EU Business Panel on Future Innovation policy "We propose to base EU action around compelling social challenges, to finance venture and social innovation funds, to incentivise large scale community level innovations, to transform the public sector and to engage the young and old in new types of partnerships "

20 The private sector Businesses developing social innovations M-Pesa, Kenya & UK Collaborations Grameen-Danone, France & Bangladesh Corporate reorientation Air New Zealand Microfinance Kiva, USA Social finance institutions Triodos, Netherlands

21 Companies now realize that global challenges such as climate change, the supply of clean water, epidemics and social needs constitute a huge new market. By creating new and more responsible and sustainable solutions, companies can cultivate new business opportunities. Corporate social innovation may be an important new business area for private companies and a core driver of innovation. The New Nature of Innovation, FORA et al a report for the OECD

22 The third sector Tackling social exclusion Barka Foundation, Poland Tackling addictions Félúton Alapítvány, Hungary Supporting young people The Generation Project, Portugal Using technology to solve social needs Code for America USA, Changemakers Training and skills The School for Social Entrepreneurs, UK, Echoing Green USA Venture philanthropy The One Foundation, Ireland, Omiyar Network

23 The household Commanding attention Complaints Choirs, Finland Networks for mutual support Netmums, UK Mutual support Alojamiento por Compañia, Spain Extending household care San Patrignano, Italy Valorising the householdtimebanking, worldwide Changing behaviour EcoMap, Amsterdam and San Francisco

24 Slide 24 The Young Foundation 2010

25 Lacks the institutions, funding, roles devoted to innovation in science, business, medicine Lacks agreed concepts, methods, tools Lacks clarity on boundaries with related concepts eg social enterprise, social entrepreneurship, social policy

26 Different fields contributing insights... Service design companies Professions Politicians Design advocates User groups/ngos Social entrepreneurs Public sector managers Policy makers IT/egovernment Consultancies

27 1 Prompts 2 Proposals 6 Systemic 3 Prototypes change 4 Sustaining 5 Scaling

28 Value and volume of different types of innovation (private sector) Source: Doblin (2005) Types of innovation

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31 I Social Entrepreneur in Residence (SEiR) in Birmingham and London s health service

32 Illustration of social impact bonds applied to criminal justice Finance for crime prevention raised by local authority and/or foundation(s) Funder - raising a sum for prevention investment Deliverer - programme of investment Consortium of private and third sector work on crime prevention in local area Ministry of Justice makes payments to funders on achieving outcomes relative to benchmark Payer - a commitment to repay on results

33 12,000 10,000 Saving per person 8,000 6,000 4,000 2, % 5% 10% 15% 20% 25% % reduction in prison time / community sentence

34 Study Year Age Mean Effect Size No. of Studies Change in recidivism Custody days Garrett 1985 Juveniles % -23 Whitehead & Lab 1989 Juveniles % -55 Andrews et al 1990 Petrosino 1997 Juveniles & Adults % -46 Juveniles % - 46 Juveniles & Adults % -51 Juveniles & Adults % -32 Juveniles & Adults % -46 Juveniles % -55 Cleland et al 1997 Juveniles & Adults % -37 Juveniles % -37 Lipsey & Wilson 1998 Juveniles % -60 Juveniles % -32 Illecas 2001 Juveniles & Adults % -78 Juveniles % -87 Latimer et al 2003 Juveniles % -41 Average % -48

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37 Banks Banca Prossima Public investment funds SITRA/Tekes Public innovation funds US Education Fund Public social enterprise investment Social Enterprise Investment Fund in the UK GIIN Rockefeller backed Global Impact Investing Network

38 Regional Innovation Funds Supporting innovation Fund Modules Removing barriers to innovation Stimulating longterm innovation Stage-gated investment Health impact partnerships/social Impact Bonds User-centred design experiments Challenge prizes Adapt and adopt Mediated user voice Strategic Initiatives Innovation brokerage Supported self-provision Frontline innovations Small business research initiative New insight: Positive health experiments Advance commitment commissioning Slide 38 The Young Foundation 2009 Payment by outcomes

39 Indicative impact on productivity based on equal levels of resoucing for each module Innovation brokerage Challenge prizes Advance commit. commission. SBRI Adopt and adapt Health impact partnerships Stage gated investment Large grants Small grants 2009/ / /

40 Start with the user Make problems visible and tangible Rapid prototyping Examples IDEO SPARC Lab, Mayo Clinic Think Public, Engine, Participle Issues: high process costs; better on creativity than implementation EMUDE Sustainable Everyday Project

41 Hundreds of tools in use Cost benefit analysis, SROI, public value, blended value Global push to achieve useable common architectures for understanding social value

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43 Towards a global academy linking practitioners, business schools, governments, social entrepreneurs

44 Slide 44 The Young Foundation 2010

45 Slide 45 The Young Foundation % as a target?

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47 A definition of leadership: the ability to use the smallest crisis to the maximum effect

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49 1 Prompts 2 Proposals 6 Systemic 3 Prototypes change 4 Sustaining 5 Scaling

50 user feedback rights to time political mandates failure demand for ideas new technology data and evidence crisis surveys and sousveys needs mapping diagnosis ethnography 1. prompts and triggers critical walking cost escalation new paradigms reviewing extremes, positive deviance petitions, campaigns visits complaints choirs

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52 Examples Analysis of failure demand in hospitals Ethnographic research on service experience Kafka Brigades, Complaints Choirs

53 competitions Ideas banks hybridisation creative meeting methods collaborative networks SI Camps incubation inspiration Idea marketplaces 2. proposals and ideas Design tools User led design Living Labs crowdsourcing Skunkworks Artists in residence Creativity methods A teams reflection brainstorms Staged prizes

54 Examples IDEO SPARC Lab, Mayo Clinic MindLab, Denmark The 27 e Region, France Seoul City s Imagination Bank

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56 Idea, insight

57 proof of concept pilots pathfinders rapid prototyping simulations trials beta testing 3. prototypes and tests Randomised control trials test marketing experimental zones trailblazers open testing

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59 Social Entrepreneur in Residence (SEiR) in Birmingham s health service

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61 Incremental improvement formal validation grants for growth policy commitment programme funding loans, equity, quasi-equity Refining business models embedding 4. sustaining Organisational forms (CICs etc) Public share issues Crowd-funding Commissioner commitment Professional development formation

62 Attraction, inspiration Economics, effective supply and demand Idea, insight Relational capital Risk manage, mitigate

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64 federations franchises licensing policy and programme funding investment for growth loans, equity, quasi-equity diffusion 5. scaling and growth Brands commissioning Strategies for diffusion and adoption consumer advocacy growth through people professional networks National policy directives takeover

65 Growth patterns

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67 regulation changed scripts law coalitions for change changed power relationships whole system demonstrators new mentalities 6. systemic change recalibrated markets new metrics technical diffusion through supply chains fast colleges finance for outcomes

68 Masdar City Slide 68 The Young Foundation 2009

69 regulation changed scripts law coalitions for change changed power relationships whole system demonstrators new mentalities 6. systemic change recalibrated markets new metrics technical diffusion through supply chains fast colleges finance for outcomes

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72 Services for older people to stay longer at home Drivers: cost, wellbeing, numbers Elements: personal advisers, social networks, reablement

73 1 Prompts 2 Proposals 6 Systemic 3 Prototypes change 4 Sustaining 5 Scaling

74 Banksy