Overlooking the beautiful blue bay and the Golden Gate Bridge, I spent three days learning from, talking to and being inspired by social entrepreneurs, impact investors, funders of all kinds, technical experts in a number of different issue areas, NGOs, and so many others who came together to think through tough questions and begin developing collaborative solutions to some of the worlds biggest challenges.




I was a first timer, among hundreds of others who had heard about the powerhouses that attend this conference each year, knowing not what to expect. Truthfully I thought the conference may be attended mostly by braggadocious investor types simply looking to make a buck off of budding entrepreneurs who claim to be doing “good” at the same time.

Wow was I wrong!

The reality of SOCAP was completely the opposite of any preconceived notions that this was simply a boondoggle for venture capitalists. I can’t recall a conference more full of intellectuals, idea generators, creative provocateurs or problem solvers. I prepared for SOCAP with many questions. I left with some answers, and many examples of amazing work that independently could be world changing, and yet collectively, with all other ideas permeating through the conference, could be paradigm shifting.

What questions did I have to begin with?

• What is impact Investing and why is every socially conscious organization seemingly engaged in a version of it in some way or another?
• What metrics are impact investors using to measure social or environmental impact? Is there a single method or does it vary?
• What is the causality between impact and financial returns for impact investors?
• Do recipients of funding see impact investing as a viable solution to changing the world?

 
What did I learn?

• Impact investing is indeed broadly defined, and there seems to be no one way to determine the most effective approach for achieving success. Ultimately impact investors are measuring financial return based on their share of a market-based investment while also evaluating some element of ‘giving back’ at the same time.

• The investors and initiators attending SOCAP are passionate, and we are in good hands if these are the leaders ensuring we are investing in innovation and technology to change the world through market development.

• Entrepreneurs and impact investment recipients want authenticity and transparency from funders. It’s more helpful to know what investors are looking for, and what criteria they are using to ensure success. At the same time, recipients may be closer to the reality, so building relationships and trust is critical to ensuring no one is wasting time or resources.
• Recipients often get mixed messages — do funders want to help? Or are they simply looking for a profit?  Establishing that trust goes both ways.

• Funders see more creative ideas out there than there is funding or capital. I’m not sure where that leaves all of the entrepreneurs with unfunded concepts, but funders have tried to add value by providing other services, resources and extending networks to aid in business development and help advance social impact. 

• Funders are looking to learn and be challenged. Just because a company or initiative doesn’t get funding doesn’t mean the idea is a bad one. New ideas help develop new initiatives that have staying power.

 
I could have attended every session offered at SOCAP and still not have taken advantage of all the knowledge and creativity that was clearly abundant among the 3000+ attendees. I barely made it to the sessions I had planned to attend, and even then, spent much of the sessions among the standing room only crowds trying to absorb what they could. Some sessions were high level and barely scratched the surface of what organizations are doing, and others had more granular approaches. Examples of the dynamic ideas I heard about included:

• Innovative payment mechanisms and investment strategies for agriculture (outside of equity and debt) including payments that go to farmers at each point along the value chain and with every interaction.
• Drying techniques for use in tropical rural, agricultural communities. One includes a drying card that small farmers can use to evaluate how dry their ground nuts, dried chilies or maize (or any commodities that must dry fully to avoid disease) are to ensure the best prices for sale.
• New methods for addressing basic necessities in refugee camps including cooking stoves by Inyenyeri, (watch their tea time video) and evaluating service delivery (the promise that Kuja Kuja brings to refugee communities looking to rebuild, and to ensuring the future of humanitarian aid is truly about development).
• Blended finance (mixtures of grant, debt and equity) seems to be the new norm in sustainability and social impact, and NGOs like The Nature Conservancy (NatureVest) and Mercy Corps (Mercy Corps Ventures) are playing along.
• A new transparency and mobile payments platform that combines GiveDirectly’s model of cash transfers with Celo’s data platform looking to revolutionize humanitarian aid into a more market-driven business model.
• Impact measurement can be streamlined as evidenced by IRIS, a collaborative measurement platform.

 
There were also several big funding announcements including:

• $90 Million Fund to Address Global Climate Change through Catalytic Capital via  MacArthur + Packard Foundations
• $35 Million for Food + Water Access via USAID
• European Investment Bank and Swiss Investment Fund for Emerging Markets joining the DFC 2X Initiative
• Rockefeller Foundation's new Future of Food 2050 visioning initiative aimed to adjust how we showcase and design for the next generations’s food system.

I have no doubt that world changing action is ahead.

Joanne Sonenshine Is Founder + CEO of Connective Impact, a partnership advisory firm providing structure and methods to mission-driven, socially and environmentally-conscious companies to aid in effective collaboration for lasting impact.

*want to follow these initiatives as they develop? Be part of our funding + partnerships opportunities community.

 
 

By Stefanie Kruglik
​

After working with public-private partnerships for over a decade, I’ve noticed one essential ingredient in those that do well: a framework. A framework creates holistic solutions, builds trust among the partners, and makes implementation easy to navigate – ultimately making the partnership more effective.

Yet when I speak about frameworks, I often see dread in my counterparts’ eyes. “Don’t worry,” I tell them – developing a framework doesn’t have to be a huge burden, and it will save you time down the road. A robust framework also helps you develop your key performance indicators (KPIs); more on that later.

Think about a long drive with a new friend. What are you trying to achieve – do you just want to get there ASAP? See the fall foliage? Sample the local cuisine? Discussing these questions in advance will inform your route selection, pace, and choice of diners (it isn’t a real road trip without a diner stop!)

Just like on your road trip, when you establish a framework with accompanying KPIs, and review them regularly, you will be able to avoid roadblocks and stay on track to reach your goals.

It’s easy to get started. Answer these key questions that too many partnerships skip, and your framework will begin to take shape:  
​

1. Have you defined your key terms? Effective partners speak the same language. That means defining your key impact terms (and perhaps even the term “impact”). For instance, “sustainability” is often included in partnership goals. But “sustainability” means something different to every organization and there are many ways to measure it—you want to make sure your partners are aligned. Clearly defining your terms and goals at the beginning of a partnership helps avoid awkward conversations down the road. 
2. What are your spoilers? Each organization has deal-breakers that will sink a partnership, from disagreements on spending to conflicting procedures. Identifying these spoilers at the beginning and noting a few indicators of an approaching spoiler can be the difference between an ongoing partnership and one that collapses at the first sign of trouble. 
3. How? Seems obvious, but when setting up a partnership, “How?” is often the hardest question to answer. How you create impact may be different for each partner. Identifying everyone’s “hows” at the beginning will ensure that each partner compliments the others and is set up for success.Only after answering these questions should you start developing your KPIs. These metrics will prove the ultimate success (we hope!) of your partnership. Reviewing them regularly will provide natural check-in points along the way, allowing you to spot challenges early and get back on track. If you’re new to KPIs, that’s okay, and I promise they can be fun! I will delve into how you develop them in a future post.

Stefanie Kruglik Is Senior Director for Impact + Strategy at Connective Impact. Learn more about our partnership evaluation tool and see how your partnerships shape up!

You know that partnerships matter for your business, and to address critical challenges that can help you deliver on impact. Yet how do you find potential partners, determine which types of partnerships are best for your business, which are best to advance your high-impact goals, and how to position your company for growth? 

Why Partnerships?
Partners help us address gaps that may exist, and ensure our businesses are working within our strengths. Partnerships that are designed right, built around the concept of comparative advantage, and that offer mutual benefit, will keep resources at a minimum and help ensure greater efficiency in your efforts. The concept of partnership building can seem overwhelming when there are so many potential partners out there. Where does one start? How do you know which are the best partners for your organization? Which partnerships will advance your impact and propel the success of your efforts?

Let's examine the three most important partnership types.
 
1. Service Delivery
Once you have determined what your organizational priorities are, and what impact you want to make as a business or nonprofit, identifying the most effective service delivery partners is crucial. These types of partners can range from customers to suppliers, employers to in-country project leads. Partner organizations or individuals that keep your programs moving, budgets in line, follow programmatic timelines and help deliver on prioritized goals or program objectives are service delivery partners. These partners should have a mutual benefit in helping you stay accountable, as their own organization or individual goals will be improved in doing so (at least in an ideal partnership). If you are an international nonprofit, your service delivery partners are often local nonprofits that help liaise with local governments or communities. If you are a company, service delivery partners are often suppliers, factory managers or those who you rely upon for following your company plans. 
 
2. Marketing/Communications/Story-Telling
Your organization has a story. Your partners do too. Joining together to capture insights and ensure others understand the impact you are making helps ensure your story is cohesive and targeted to those who need to hear it. Being held accountable to the facts, being transparent and honest about the work you are doing is truthfully one of the most important elements in delivering true impact, so partners that encourage that honesty are among the most critical. 

3. Fundraising
In order to advance your business aim, as well as your high impact goals, you will need the resources. For example, if your goal is to donate $10,000 a year to a local hospital, and you don't have the funds to do so, you will need to tap into your network or be creative working with suppliers or customers to raise that money. Finding ways to dedicate resources to causes that you and your colleagues care about can seem intensive.  You don't want to go down a rabbit hole trying to achieve your high-impact goals, because that's just too expensive. Finding the right types of funding partners can save you time and ensure you have the resources you need to acheive your goals. 

What Next?
Brainstorm all of the partners that you have engaged with in the past, and that you can potentially engage with in the future. Think about which partners can benefit your potential impact from a service delivery, marketing/story-telling or fundraising perspective before narrowing in on which are the most suitable for your organization.  Discuss with colleagues and determine which types of partnerships ignite excitement. Those are the types of partnerships to pursue. Ask prospective partners to share ideas, examples and existing project cases, but be prepared to do the same. Go one step further and share some ideas you may have for your impact goal. Be willing to give a little and offer up some creative Intel or information that will encourage the partner to engage with you and share resources, ideas, networks, and most valuably, their time. Don't forget that this is your chance to work on identifying your comparative advantage in order to engage partners for the benefit of your impact goal, the growth of your business, and to ensure mutual benefit for them too.

Wondering where to begin with your partnership journey? Reach out to discuss.