Russell L. Ackoff and the F-Laws of business

Posted on January 18, 2010 by sse

Since I recommended Peter Day's World of Business in my top 10 podcasts for social entrepreneurs, it's only become more relevant. In the past few weeks, the programme has covered the Salvation Army (once described by Peter Drucker as the most effective organisation in the world, in any sector), Project Alcatraz (or how a Venezuelan businessman became a social entrepreneur) and, most interestingly of all for me, the thoughts and learnings of the late Russell Ackoff, a management and business thinker.

Ackoff speaks much sense about a whole range of topics related to business and management, but I was particularly interested (given our work here at SSE) in his emphasis on learning. He's strong on the difference between teaching and learning (something which we still struggle at times to get across). He emphasises that an ability and willingness to learn are the keys to a successful organisation, and that one can only learn from doing something wrong (or making a mistake). Further, the best opportunities for learning come in the face of adversity or difficult times: perhaps we should reframe 2010 as "a great year of learning for the third sector". More seriously, this chimes exactly with our belief in learning-by-doing.

I particularly like his distinction between errors of commission and errors of omission. The former consist of doing something that should not have been done; the latter consist of not doing something that should have been done. Ackoff contends that errors of omission are much more serious, because they cannot be corrected or retrieved…they are lost opportunities; and that organisations fail more often because of what they do not do, rather than what they do. But this is not often reflected in practice, because it is only errors of commission (i.e. what has been done wrongly) that are recorded and noted, which tends to make people averse to risk and less prone to challenging the status quo. Which makes an entrepreneurial ethic all the more important in establishing, leading and working within an organisation.

I've added three Russell Ackoff books to the SSE bookshop:

Management f-Laws: how organisations really work

Turning Learning Right Side Up

A Little Book of f-Laws

You can also download a pdf of the latter for free from www.f-laws.com

Highly recommended.

How do interns fit into the social enterprise movement?

Posted on August 6, 2009 by sse

In the welfare-state utopia that is Scandinavia, there is a saying that goes, "give the youngsters a computer before football gets to them," alluding to the ever-dominant role the sport plays in Scandinavian society. In the world of social enterprise, perhaps it is time we adopt a similar approach: "give young people a purposeful career before the corporates get to them." Step one? Adopt an intern.

As a twenty-year old college student I was lost in what to do with my life. Like many of my peers I was young, idealistic beyond belief and equipped with a hard work-ethic. However, what I lacked were hard skills, proper levels of pragmatism, and a realistic view on how to 'change the world'. Then I got the opportunity to intern for a month with a social entrepreneurship organisation, which took me in, nurtured my confidence and taught me about how social enterprise practitioners apply idealism. A year and a half later this experience has put me on track for a career that mixes purpose with professionalism, work with an outside life, and idealism with pragmatism. While there are many similar stories out there, there is still a large gap between the many young interns who stand ready to join small social enterprises, and those who actually gain the opportunity to work. Why? Here are a few hypothetical claims…

– Small social enterprises or NGOs often lack the funding to bring in an intern, even for part-time. As far as I know, outside funding alternatives specifically aimed at bringing in interns are few and far between.

– Prospective interns often have no idea where to begin their job search. Finding a small social enterprise is hard enough, finding one that can afford them and is willing to go through the process of hiring an intern is virtually impossible.

– Small social enterprises are not proactive enough in searching for interns. Many organisations want trained employees, and fail to see value of fresh perspectives and the hard work-ethic interns often bring to the table.

– Prospective interns prefer big organisations or well-known employers. In looking an internship with a name-brand business, they often do not see that with a small NGO they will receive greater responsibility, more advanced tasks, and ultimately, greater skills.

– Students are often limited for time in that they can only do internships that last for one to four months. A lot of organisations prefer longer contracts to make it a more useful learning experience for intern, but also because it gives the intern a greater opportunity to make a positive impact on the NGO.

Surely other factors play a role as well, but these stand out to me as particularly limiting.

Why is it important to defy these factors and make a conscious effort to recruit more interns? As is widely accepted, not everyone could, or should, be a social entrepreneur. However, there are plenty of young men and women who still want to partake in social enterprise, and who want to make a positive impact on their society. In this sense, second-tier organisations might be a perfect fit. NGOs often prioritize the day-to-day tasks over long-term projects that involve research, updating of databases, technological innovation – they just fall by the waste side. Ironically these features are essential in moving the sector forward, through strong networks, new initiatives, a deeper understanding of complex issues, and organisational growth.

If you work for a small social enterprise and you are looking for an intern, what do you do? SSE was lucky enough to be approached by an American college, looking to set up a sustainable internship relationship. This coming January, SSE will welcome its third intern from St. Olaf College. Looking for such a partner might be a good first step – loads of schools are filled with competent young men and women, ready to enter the sector and contribute to its growth and development. While it might be time-consuming and not directly beneficial for your organisation to adopt an intern, it might be essential for the social enterprise movement. Youth is an essential ingredient to a successful sector in the future.

There’s no poor people in Denmark (and other learning)

Posted on March 5, 2009 by sse

It's been a gallivanting around kind of time of late, and much to reflect on, not least meeting up with Peter "Sunlight" Holbrook and Jonathan "The Hub" Robinson in the last week or so, two very different but passionate social entrepreneurs. I felt like I learned a great deal from both….will blog on this soon.

SSE was also invited to lecture on Roskilde University's MA at its Centre for Social Entrepreneurship, so I headed out to Copenhagen this weekend (Roskilde is just outside the city). It was an amazingly huge campus: reminded me a bit of Warwick University with its vast swathe of concrete buildings (the taxi driver and I had some fun finding "pavillion 10"; he was also responsible for the "there's no poor people in Denmark" comment, btw) but it was also completely empty (it being a Saturday), so all a bit freaky at first. Thankfully, I found the group I was speaking to (along with Roger Spear from the Open University, who was a welcome and friendly face: we had an interesting chat about different pieces of research) and ventured forth.

Always a bit strange as a practitioner 'lecturing' on a course which is primarily academic and theoretical in its approach. I got the feeling that they probably knew considerably more than me, but hopefully my thoughts (on where new entrants to social entrepreneurship come from + how to engage them; and, separately, on future trends) were useful. It was useful for me to crystallise and build on some thinking we have been doing recently around this, and to draw together some work from OTS (their COI research report on Social Enterprise at the Crossroads segments where new entrants/actors might come from), some recession-focused tools for Fellows, some thinking on future trends and other policy work. It's a little hodgepodge, maybe, but here's the slideset that went with the words / workshops etc:

SSE Roskilde University Slideset

View more presentations from SSE. (tags: socialentrepreneur socialenterprise)

It was great, also, to chat to, debate with and meet some of the Danish social entrepreneurs (because there are genuine social entrepreneurs on the programme as well), not least a guy called Thomas who set up the Danish version of the Big Issue and has been hugely involved in the Homeless World Cup and Homeless Football League in Denmark. Inspiring guy: and good restaurant recommendations as well ;0)

Leadership development in Los Angeles (and Bethnal Green)

Posted on March 3, 2009 by sse

[Guest post from SSE's Development Director Ian Baker….]

As you may have seen, SSE was one of only two British organisations to have been recently awarded the Bank of America Neighbourhood Excellence Initiative 2008 Neighbourhood Builder Award. The other organisation was Trees for Cities. As well as £110,000 of unrestricted funding, this award comes with leadership training for two employees (the executive director and an emerging leader) in the US. As SSE's Development Director I was lucky enough to have been chosen as the emerging leader to attend this US training. I've recently come back from the first of three weeks in the US, for leadership training run by the Development Training Institute.

Before going to LA I'd been advised by people, as one of only two Brits, how to survive a room full of 90 Americans (from US non-profits who have all been awarded $200,000, making a total commitment from Bank of America in 2008 of around $20million). I think my colleagues thought I wouldn't be robust enough, loud enough or extroverted enough. So I went there with some expectations of cultural difference. But the most striking thing I'm taking away is just how similar we are, especially those of us working in the non-profit sector. Our motivations are the same, the issues are the same and the problems/challenges we face in our organisations/sector are uncannily similar. The diversity of organisations is probably narrower than the range of student projects we see at SSE, though. There were many more housing focused organisations, providing both physical housing and support services for different groups, ranging from the homeless, through low income families to people on moderate incomes. There were also a lot of counseling and advice services for people facing foreclosure (repossession).

We visited one project in LA's Skid Row – a large area of downtown where the city's 50,000 homeless population are centered. LA is the US's homeless capital and the number of homeless people on the streets was shocking; made more stark by the close proximity of downtown's financial district. I was surprised that a whole area was actively called Skid Row. I wondered how much this in itself provided barriers to the aspirations of people in the area. We visited Skid Row Housing Trust, which is doing excellent work at providing modern, well designed homes for some of the city's homeless population. Their biggest challenge was how to sustainably fund the healthcare and support services they provide to their tenants, especially now that their income from development activity has been cut by the financial crisis. In groups we offered solutions to this sustainable funding challenge, many of which relied on in-kind support and various kinds of fundraising activity, especially capitalising on the city's celebrity dollars. A few social enterprise solutions were offered but my impression was that philanthropy was a much bigger part of non-profit income in the States than here in the UK. I sensed that social enterprise and entrepreneurship may be higher profile in the UK, which surprised me, but perhaps I am just seeing this from a skewed perspective as I am so embedded in the sector here? Another difference that I noticed was the worrying number of US non-profits in the room who were having to make redundancies due to the financial crisis.

So there are some differences when you start to delve into the detail of the sector. But my main impressions are still of the similarities. And yes my American peers were generally louder, more extroverted and more positive than me. But on reflection I think some of my British peers can sometimes be too negative and reluctant to celebrate their successes. Perhaps somewhere in between is a healthy compromise.

As for the leadership training itself, I think the proof will be in the pudding of any changes in my own practice. The part I found most useful was 360 feedback from my colleagues about my leadership practices, or lack of them! Using the Kouzes Posner Leadership Practices Inventory, my colleagues rated my leadership practices under five broad headings: modelling the way, inspiring a shared vision, challenging the process, enabling others to act and encouraging the heart. Many people, myself included, seemed weaker in inspiring and encouraging. I'm coming away with a shifted attitude towards leadership and work; realising even more that investing time in building relationships and effective communications is key to effective leadership, and it is still work! Also, it isn't just the responsibility of the CEO to model the way, inspire, challenge, enable and encourage; this can (and should?) be done by anyone/everyone in the organisation.

Roll on Philadelphia in May…

Category Archives: Learning

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