This presentation was used a guide to a workshop on disruption and innovation delivered at the German Fundraising Congress 2015.

1. Dealing with
Disruptive Change
Workshop: Relationships, Resilience, Experiments
German Fundraising Congress
Berlin, Germany
19 May 2015

2. Colin Habberton
Director: Global Partnerships
GivenGain Foundation

3. Cape Town, South Africa
(Source: USB)

4. Stellenbosch
(Source: Wikipedia)

5. • GivenGain Foundation
Social Fundraising Platform
• Global Reach
Since 2001
1800+CausesWorldwide
50+ Countries
10,000+ Projects
7700+Activists (Peer to Peer)
100,000+ Donors
185 Countries
• OneWorld. Zero Barriers.
Barriers.
Speaker introduction

6. GivenGain’s Network Fundraising Platform

9. Introduction

10.  Disruptive Change is an increasingly relevant and complex
influence in the world directly affecting civil society and
fundraisers tasked with mobilising resources to address the
impact of such change within their organisation and its mission.
 This session will investigate the causes and characteristics of
disruptive change through a series of commercial and nonprofit
case studies
 A ‘relational’ perspective with be applied to explore how
connecting with various stakeholders can effectively manage risk
and create innovative fundraising solutions.
 The workshop will include practical experimentation…
Overview

11. Learning Outcomes:
 Expect to learn about what disruptive change is.
 A set of diagnostic tools for fundraisers and executives to
engage with their internal and external stakeholders.
 To assist with interpreting these changes and how to build
collaborative responses and solutions to these challenges.
 A brief introduction to a method of experimentation incl.
practical exercises applying the Schrage’s 5X5 framework
Overview

12. Session Summary
Part I
Introductions
What is Disruptive Change?
Commercial case studies
Sources of disruption
Prototypes for resilience
Nonprofit case studies

13. Session Summary
Part II
Stakeholder Analysis Toolkit
Additional tools for action
5X5 Experimentation
Summary recommendations
Learning review

14. Concepts & Context

16. What is Disruptive Change?
Scale
+
Speed
+
Surprise
=
Disruption
(Source: ICSC, 2013: Global Perspectives: Riding the Wave)

17. Casualties of War…

18. Some others…

19. The Disruptors

20. Impact & Outcomes
Change Happens
Adapt
or
Suffer
and possibly,
Disappear

21. Sources of Disruption
 Planetary Disruption
– Climate Change
– Resource Shortages
 Political Disruption
– Unpredictable extremism
– Geopolitical tension
 Economic Disruption
– Financial Volatility
– Rampant Inequality
 Systemic Disruption
– Changing Technology
– Information Access
(Source: ICSC, 2013: Global Perspectives: Riding the Wave)

22. The Price of Inequality?
(Adapted: Piketty, 2014: Capital in the 21st Century)

23. The Significance of the 1%
(Adapted: Piketty, 2014: Capital in the 21st Century)

24. Just an Emerging Market issue?
(Adapted: Piketty, 2014: Capital in the 21st Century)

25. Digital Megatrends 2015
(Source: AccentureTechnologyVision 2015 )
1. Internet of Me
– PersonalisedWorld
2. Outcome Economy
– Digital/Physical Blur
3. Intelligent Enterprise
– Smart Decisions & Delivery
4. Workforce Reimagined
– Workforce to Crowdsource
5. Platform (R)evolution
– Harnessing Hyperscale

26. The Hidden Cost of Gangnam Style

27. Nonprofit Disruption
 Disintermediation
– Direct beneficiary contact
– Virtual service delivery
 Competition
– Cause relevance
– Funder focus
 Cost Efficiency
– Technology advantages
– Resource flexibility
 Effective Impact
– Measurability
– Paradigm shift
Threat of New
Causes
Demands
of Donors
Threat of
Substitute
Choices
Pressure of
Partners &
Suppliers
Intensity
of
Cause
Rivalry
Your
Cause
(Adapted: Porter, 1979: Five Forces)

28. Prototypes for ‘resilience’
 Active Disruptor
– Be the change
– Shift culture
– Proactive
 Opportunistic Navigator
– Agility and speed
– Adapt and thrive
– Responsive
 Conservative survivor
– Well established, brand
– Adapt to survive
– Reactive
(Source: ICSC, 2013: Global Perspectives: Riding the Wave)

29. Conservative Disruptor?
Source: http://www.youtube.com/watch?v=eu9kMIeS0wQ

30. Case Study: Habitat for Humanity SA
2010: Realisation
 ‘Building Houses’
 Seasonal events
 Dependent on corporates
 Geographically contained
 Little international funding
 Houses = Funding
 Not building enough houses
 300 Houses per year
 Impacting 300 families per year

31. Case Study: Habitat for Humanity SA
2014: Response
 ‘Building Communities’
 Scalability of Purpose
 Community Resource
 Partnering with Communities
 Alignment with Government
 Re-engineered the operation
 Cross-functional teams
 Collaborative decision-making
 Impacting 3000 families per year

32. Case Study: Habitat for Humanity SA

33. Innovation?

35. • Performance-improving innovations
– Replace the old with new, better models
models
– Substitutive e.g. Camry to Prius
• Efficiency innovations
– Same products & customers, cheaper
cheaper prices
– Improve productivity, resource allocation
allocation
– e.g. Supermarkets, Downsizing
• Market-creating innovations
– Transforms products, create new
customers
– Changes needs, resource/skill/access
resource/skill/access dependent
– e.g. computers, internet, nonprofits
nonprofits
The 3 kinds of Innovation
(Source: Christensen & van Bever. 2014.The Capitalists Dilemma. Harvard Business Review)

37. Case Study: Metro Trains, Melbourne, Australia
• Launched November 2012
– Song top 10 on iTunes
• Close to 100 million views
– 4.8 million shares,
– most shared ad of all time
– various spin-offs
• DumbWays to Die 2 game
– the top app in 83 countries,
– four billion mini-game plays in just
just three months
• Most awarded campaign in the
history of Cannes
– 28 Lions, incl 5 Grand Prix.
• 127 million people said they would
be safer around trains because of
the campaign.
(Source: mccann.com.au)

38. And then of course this - #IceBucketChallenge…

39. It began as a grassroots effort by Pete Frates,
a 29 year-old Massachusetts man and
athlete who has lived with ALS since 2012 and
Jeanette Senerchia of upstate New York,
whose husband, Anthony Senerchia,
has had the disease for over a decade.
Inspired by Jeanette, Pat Quinn challenged 50 friends…

40. • 8000 to 430 000 Wikipedia views/day
• 2.2 million mentions on Twitter
• 1.2 mentions on Facebook
• $100 million (ALS US)
• $2.5 million in 2013
• £6m (Motor Neuron Disease, UK)
• €1m (ALS Netherlands)
• And more!
Cast Study: #IceBucketChallenge

41. • ALS (Amyotrophic lateral sclerosis) Association
• Strong, coordinated effort underlying success:
• user-friendly website
• strong storytelling, and
• a solid donor management system.
• The ALS Association was prepared…
• Big, selfless, simple idea
• The audience effect
• Personal nominations by friends
• Sense of urgency
IceBucketChallenge success factors

42. Club Recife – Immortal Fans

43. Tools & Methods

44. An authorised financial services provider – FSP 43441
Source:https://www.youtube.com/watch?v=ts_4vOUDImE

45. Good or bad memories?

46. Team
Organisation/Cause
Partner/
Supplier
Beneficiary
Training
& Incentives
Effective
Solutions
Content&
Insight
Efficient
Impact
Quality
Assurance
Funder/Donor
Competitor Cause
returns/reinvestment
marketing/mindshare
Community
Responsibilities
Environmental
Concerns
Market & Industry
Conditions
Legal & Ethical
Regulations
(Adapted from: Habberton, 2005)
Stakeholder Analysis Toolkit

47. Research for Development
 Social Networks
– Opportunity Pipelines
 Mobile Devices
– Personal Access
 Using Big Data
– Navigating the Ocean
 Harnessing the Cloud
– Breaking Barriers
 Aware of the Internet of Things
– Integrated Connection
(Adapted: Thomas: 2014, Memeburn)

48. 5x5 Experiments

49. The value proposition for experimentation
 Safer
– Internal and contained
 Simpler
– Cheap, team-based
 Smarter
– Quick and creative
 Successful
– Commercial evidence
 Innovation
– Ready for scale
(Adapted: Schrage: 2014,The Innovators Hypothesis)

50. 5 x 5?
 5 People
– Cross-functional
 5 Experiments
– Variety
 5 Days
– Focus
 <EUR 5000
– Don’t ask for money
 5 Weeks
– “Ideas are the enemy”
(Source: Schrage: 2014,The Innovators Hypothesis)

51. Tips for Success
 Simple, compelling Hypotheses
– If this, then that + evidence
– Action  Output
– Metrics & Results
 Creative Destruction
– Test great arguments
– Executive buy-in
 Core Competencies
– Think inside the box
– Look for value: “Buffetism”
(Adapted: Schrage: 2014,The Innovators Hypothesis)
Great
Problems
Great
Visions
Great
Arguments

52. “Instant,
Social,
Recommended,
Automated,
Pervasive”
Concluding remarks
(Source: Schrage: 2014,The Innovators Hypothesis)

53. • Innovation Mindset
– Shared understanding
• Relational approach
– Collaborative partnerships
• Competency analysis
– RightTools &Team
• Risk scanning
– Pre-empting change
• Innovators Hypothesis
– Experimentation (5x5x5)
Recommendations for resilience

54. Summary Recommendations
 Innovate
– Through collaboration
– Through partnerships
 Invest
– In your people
– In your systems
– In your community
 Implement
– 5X5 Experiments
– Train for change

55. Learning Outcomes:
 Expect to learn about what disruptive change is.
 A set of diagnostic tools for fundraisers and executives to
engage with their internal and external stakeholders.
 To assist with interpreting these changes and how to build
collaborative responses and solutions to these challenges.
 A brief introduction to a method of experimentation incl.
practical exercises applying the Schraghe’s 5X5
framework
Final Review

56. Acknowledgement & Appreciation

57. Q & A
“Whoever discovered
water, it wasn’t a fish”
Marshall McLuhan

58. Danke!
@GivenGain @relatomics
www.facebook.com/givengain
www.givengain.com colin@givengain.com +27714012434