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• Where to Serve
– What services to provide
• How to Serve
– A clear strategy for each service area
• Creating Alignment
Social Benefits
Social Value =
Resources Expended
What
What services
services should
should we
we How
How can
can we
we create
create the
the
provide
provide to
to our
our community
community and
and greatest
greatest social
social value
value in
in
to
to other
other needy
needy communities?
communities? delivering
delivering each
each service?
service?
Social Benefits
Social Value =
Resources Expended
External
• What are the most pressing needs of our own community?
Internal
• What capabilities and resources do we have as a
congregation/organization?
Choices
• What limited set of services should we focus on to provide as a
congregation?
– What combination of services would be synergistic?
• Lack of focus
• Pet projects
• Agenda creep
What
What services
services should
should we
we How
How can
can we
we create
create the
the
provide
provide to
to our
our community
community and
and greatest
greatest social
social value
value in
in
to
to other
other needy
needy communities?
communities? delivering
delivering each
each service?
service?
• Strategy as action
– “Our strategy is to build a new building…”
– “… give $100,000 in family support…”
Collection
Collection Visitation
Visitation
Museum
Museum Visitor
Education Visitor
Education Experience
Experience
Research
Research //
Scholarship
Scholarship
E.g., E.g.,
• Comprehensiveness • Number of visits
Collection
Collection Visitation
Visitation
• Rarity • Repeat visits
• Sophistication • Types of visitors
• Popular appeal (sophistication, age, etc.)
• Restoration • Time spent per visit
• Spending per visit
Visitor
Visitor
Education
Education Experience
Experience
E.g., E.g.,
• Whom to educate • Level of interactivity
– Children
• Amount and
– Enthusiasts
sophistication of
– Educators
information
– As many people as
Research provided
possible Research // • Extent of ancillary
• Means of education
– Didactic
Scholarship
Scholarship services
– Experimental
E.g.,
• Original vs. applied
• Scholarly vs. popular
• Conferences vs. publications
20070810 Willow Creek – FINAL.ppt 14 Copyright 2007 © Professor Michael E. Porter
Strategy Principles
2. Choosing a Sustainable Solution Model
Addressing Inner City Poverty
Traditional Model New Model
Need: Need:
Social Services Business Investment
Lead: Lead:
Government Private Sector
20070810 Willow Creek – FINAL.ppt 15 Copyright 2007 © Professor Michael E. Porter
Inner City Newark’s Competitive Advantages
Strategic location
Transportation hub with immediate access to 7 major highways, 14th largest airport in the
world, a rail hub, and a location 20 minutes to midtown Manhattan
Largest port on the East Coast and 3rd largest in the nation
Largest higher education center in the state with formidable research base; over 50,000
students and faculty at 5 higher education institutions colleges populate the college town
Flourishing cultural and arts; NJPAC is the 4th largest performing arts center in the nation
Vibrant neighborhoods; Ironbound District home to the largest Portuguese population in
the nation
One of three state-designated Innovation Zones
Underserved
Underutilized Inner City: local market
workforce Newark Over 6X the income density per
square mile of the region ($115M
Many residents are working but vs $18M)
underemployed Linkage to industrial/ Retail spending potential is 55%
Hispanic population grew by 16% regional clusters greater than the average inner city
42% speak languages other than Growing student and downtown
English Proximity to regional transportation & residential populations is
logistics infrastructure and companies expanding demand for amenities
Over 8,760 job vacancies in 2005
Attractive location for activities linked to Diversity of citizens creates
leading clusters based in Manhattan due to unique niches and business
proximity (e.g., financial services) opportunities
Sources: 2000 U.S. Census; 2002-2004 Bureau of Labor Statistics, ICIC-State of Inner City Economies
20070810 Willow Creek – FINAL.ppt 16 Copyright 2007 © Professor Michael E. Porter
Sustainable Solution Models
Health Care Delivery in Resource-Poor Settings
17
Strategy Principles
3. Understanding the Value Chain
Museum
Firm Infrastructure
(e.g. governance, planning, budgeting, information tech., facilities)
Fundraising
(e.g. earned revenues, proposals, solicitations, events, donor relations)
Human Resource Management
(e.g. recruiting, training, compensation system)
Program and Content Development S
(e.g. scholarship, exhibit design, market research)
u
Educational Programs r
(e.g. local school outreach, adult classes, special tours)
p
Social
Benefits
Assembly and Exhibition Hospitality Marketing Visitor / l
Preservation Services & Sales Constituency u
Services s
(e.g., (e.g., curating, (e.g., shops, (e.g., (e.g., member
acquisition, display, support restaurants, promotion, outreach,
authentication, materials) maintenance) advertising, special events)
cataloguing) catalogs)
Source: 19
Global Health Delivery Project (http://www.isc.hbs.edu/soci-GHD.htm), Framework drawn from M.E. Porter and E.O.
Teisberg, Redefining Health Care
Strategy Principles
4. Combining Operational Effectiveness and Strategy
Operational Strategic
Effectiveness Positioning
What
What Which
Which
Customers?
Customers? Needs?
Needs?
• Should we charge
for our services?
• How should we
recover costs?
Museums
What
What Which
Which
Customers?
Customers? Needs?
Needs?
E.g., E.g.,
• Adults vs. children • Appreciation
• Enthusiasts vs. • Education
Neophytes
• Experience
• Visitors vs. locals What
What Price?
Price? • Participation
• Current vs. future
generations
E.g.,
• Free
• Membership
• Fee per admission
• Natural, fresh, organic, and prepared foods and • Well-lit, inviting supermarket store formats with
health items with excellent service at premium appealing displays and extensive prepared foods
prices sections
• Produce section as “theater”
• Educated, middle class and affluent customers • Each store carries local produce and has the authority
who are passionate about food as a part of a to contract with the local farmers
healthy lifestyle • Information and education provided to shoppers along
with products
• High touch in-store customer service via
knowledgeable, flexible, highly motivated personnel
• Café-style seating areas with wireless internet for
meetings and meals
• Egalitarian compensation structure
• Own seafood procurement and processing facilities to
control quality (and price) from the boat to the counter
• Donates 5% of profits to non-profits
• Each store has “green projects,” directed by
employees to improve environmental performance
How should the value chain be configured to deliver the value proposition?
20070810 Willow Creek – FINAL.ppt 23 Copyright 2007 © Professor Michael E. Porter
Strategy Principles
7. Making Clear Tradeoffs
• Unclear goals that allow any program to fit, and make performance
impossible to measure
• Limited attention to the costs of providing services, and thus the value
Organization,
Organization,
processes,
processes, volunteers,
volunteers,
Strategy
Strategy capabilities
capabilities of
of paid
paid
staff,
staff, success
success
measures,
measures, etc.
etc.
• Delivering value to society will require raising the bar on utilizing your
resources well