If Giving Money Directly To Poor People Works Best, Then What Are Non-Profits to Do?

impact on nonprofits of giving cash to poor people

People in poverty lack money. It seems obvious that the best way to end their poverty is to give them money. Increasingly, studies support this obvious approach to reducing poverty. Yet the vast majority of poverty-reduction organizations and agencies offer goods and services, not cash. What is the impact on nonprofits of giving cash to poor people?

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Free Photo Editing without PhotoShop

free photo editing without PhotoShop

As a public or social sector marketer, you often need photo editing done but have no budget for professional designers or design tools. Adobe PhotoShop is the gold standard of photo editing, but it’s expensive and complex. Don’t fear. You can accomplish free photo editing without PhotoShop.

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Increase Your Public and Social Sector Impact Through Lean Methodologies

Lean production principles can transform public and social sector
We love picking on the DMV, don’t we?

In the US, public debts keep mounting, taxpayers keep insisting on lower taxes, and vital services and infrastructure keep declining. We need to find a new way of designing and paying for government. Cost cutting isn’t enough. We need transformation. Lean production principles can transform public and social sector work.

Government is interested in lean, as witnessed by this McKinsey article. Another McKinsey study shows that government can be a leader in digital goods and services. Lean methods show the way.

Lean Focuses on the Process

In Lean Thinking, authors Womack and James describe the lean approach as focusing on

all the specific actions required to bring a specific product (whether a good, a service, or increasingly, a combination of the two) through the three critical management tasks of any business: the problem-solving task running from concept through detailed design and engineering to product launch, the information management task running from order-taking through detailed scheduling to delivery, and the physical transformation task proceeding from raw materials to a finished product in the hands of the customer.

Don’t be put off by the business-oriented language if you work in the public and social sectors. Your organization performs these same activities to serve your clients. You just call them different things.

Why focus on the end-to-end process like this? Because you can uncover, and then eliminate, wasteful practices. Eliminating waste saves you money, allowing you to meet the needs of your clients without exceeding your financial resources.

Here’s one example. A UK social services agency found they spent 85 percent of their time managing and maintaining their bureaucracy, instead of serving their clients. By redesigning their end-to-end process, they switch to spending 80 percent of time actually helping clients.

How can you understand your process from end to end? Pretend you’re a client. Staple yourself to a request for service or payment and observe the process as the request moves through your organization.

Public and Social Sector Obstacles to Lean Approaches

Lean is not easy, nor quick, although you can see some improvements from the very start. Taiichi Ohno developed the Toyota Production System, which is now known as Lean . After 50 years of following Lean, Ohno felt the company was maybe halfway done.

Lean is a mindset, a culture. Changing mindsets and cultures is difficult. Implementing lean methods in public and social sectors have additional challenges identified in the McKinsey article:

  • Disconnect between buyer and user: Buyers may be government agencies, foundations, or individual donors. User or end-customers may be individuals or groups receiving goods or services. This disconnect often forces public and social organizations to focus on improving two different processes.
  • Lack of clear process ownership: A public sector organization rarely invents and controls the processes it must follow. Regulations and policies govern much of what is done. Organizations may start their lean journey focusing on what they do control, and later move towards influencing regulation and policy.
  • Lack of customer or process mindset: Public and social organizations may be more focused on policy and regulation than on delivering value to customers. Lean forces focus onto delivering value while also maintaining compliance. This additional focus can feel like an additional burden instead of a benefit.

Key Concepts in Lean Methodology

Lean is a large field. You can earn a master’s degree in lean management. I’ll try to do justice to some key concepts in a few bullet points:

  • Waste: Ohno identified several types of waste to eliminate: delay, overproduction, defects, excess inventory, and activity and transportation than doesn’t add value.
  • Kaizen: This means continuous improvement through waste reduction. It often takes the form of kaizen events, where process owners and workers make improvements to their workspaces and activities.
  • Flow: Instead of performing batches of similar work, perform a process from start to finish as a continuous flow.
  • Pull: Once you’ve established flow, only initiate the flow when you have demand from a customer.
  • Just-in-Time: When you have flow and pull, you can add to inventory and perform tasks as items and work are needed.
  • Kanban: Use visual cues to indicate pull, items in flow, and problems preventing flow such as need for additional inventory.
  • Cells: Instead of organizing departments according to job type or function, create multi-function cells that can carry out a flow from end to end.

Lean production principles can transform public and social sector work. You can continually eliminate waste, improve effectiveness and raise efficiency. In the public and social sectors, this means free up resources to meet both client needs and budget constraints.

One great thing about lean methodology is that you can start with one concept, one change, and measure your improvement. So, which lean concept would help your organization today?

Lean Thinking and other books mentioned in this blog are available in the bookstore.

(Image courtesy of Flickr)

Free download! Door hanger design template for Microsoft PowerPoint

Public and social sector marketing and activism relies on many types of feet-on-the-street promotion including public information campaigns, get-out-the-vote efforts, community meeting attendance and volunteer recruitment. One method of promoting a cause or viewpoint is going door-to-door. What if no one’s home? My free door hanger design template for PowerPoint helps you create your own door hangers so that you can leave information with the household or business.

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Impact Investing: Return on Investment From Marketing Social Goods

Impact Investing Return on Investment From Marketing Social Goods

Can you do well while doing good? This is the ultimate question for a marketer in the public and social sector. Doing well in the public and social sector means more than just money. Earning money leads to sustainability and scale, two qualities that communities desperately need and funders desperately seek.

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How to Take Back The Night from Light Pollution and Enjoy The Stars Again

reduce light pollution

Light pollution at night is a growing urban problem. Most of us city dwellers can no longer see the stars at night, and this will only become worse as we become more urban. Dark skies at night is a common pooled resource that we can reclaim when we reduce light pollution though proper governance of the commons.

What, you may be asking, are dark skies good for?

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Designing and Promoting Organizational Change: Three Marketing Methods To Move The Elephant

Marketing, especially in the public and social sectors, often targets changing the behavior of individuals and groups. We all know that changing behaviors is hard. If change was easy, we’d all lose weight, save more money for retirement and get enough sleep at night. As a marketer, how do you design and promote organizational change?

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Free download! Seven Visual Storytelling Methods and When to Use Them

visual storytelling methods
Graphic produced by Cel Culture Lab and Race Forward

Stories impact and motivate us, and a picture is worth a thousand words. Knowing how to use visual storytelling methods to tell your story–sometimes that’s difficult for public and social sector marketers who aren’t trained designers or have access to design help.

Use this story format wheel from Culture Lab to explore your options for visual storytelling and choose the method that best fits your goals.

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Design Thinking: Asking the Right Questions to Address the Five Villains of the Social Good

Design Thinking Questions Address Villains Social Good

The American Marketing Association definition of marketing centers on the concept of offerings: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” A prime design question for this blog then becomes what should public and social sector organizations offer that has value for both clients and society at large?

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