Innovation Value Chain Framework
Innovation matters. Not just for new ideas in fundraising- but to persuade existing supporters, staff and even board members that you're committed to really stepping up to the mark. And it also matters if you are to attract good new people- staff and donors- to your cause.
But while almost everyone, from commercial and non-commercial sectors, agrees that innovation is important only a small number of charities, in our experience, are really embracing innovation.
Our work at =mc over the last 3 years has concentrated on helping charities to become more systematically innovative. That work suggests that the two key challenges for charities becoming more innovative is that few have a systematic process to drive and a number have chosen inappropriate models integrate it.
To do this we've introduced a model, based on some original Harvard research, which argues that innovation is a value adding-process chain. This chain has six stages to ensure you move methodically from simply creativity- coming up with ideas- to genuine innovation- implementing the ideas and raising money from them. Each stage is important and involves some key skills and competencies.
At each stage you as an organisation can be strong or weak. The table below asks questions to help you to assess yourself. And you can also- see below- assess yourself and compare yourself to best practice.
|
Stage |
challenges |
|
One: Idea generation |
Do you come up with enough ideas? - you need lots to develop creative momentum. If not you'll always be running to catch up. |
|
Two: Cross pollination |
Are ideas exchanged between branches or departments or HQ and regions? If not you'll be missing out on innovation opportunities. |
|
Three: External sourcing |
Do you consistently scan the environment -commercial and non-commercial- for new fundraising approaches and ideas you can adapt? Do you have access to good advisors/consultants? |
|
Four: Identifying ideas |
Do you have a rigorous process for identifying high potential/high payoff ideas? Otherwise you may be developing ideas but not exploiting them. |
|
Five: Developing ideas |
How are ideas assessed and progressed? What metrics do you use to establish what has real fundraising potential and what isn't going to make it? |
|
Six: Diffusion and returns |
How effectively and quickly are ideas rolled out to donors? What expectations of financial return do you have? And over what period? |
How strong is your Innovation Value Chain? Click here to download a self-assessment questionnaire.
=mc now has a dataset which allows you to benchmark your self or your organisation against UK, US or international charities.
If you would like a complete Innovation Value Chain analysis that will help identify your strengths contact our knowledge management specialist, David Segal (d.segal@managementcentre.co.uk)
If you'd like advice on how your organisation can get better at innovation- in fundraising or in other service areas please, contact Judy Beard Principal Management Consultant. (j.beard@managementcentre.co.uk)
