Breakouts on Human Capital: Building Effective Teams in Venture Philanthropy Organizations

Wednesday 14
th
May
1:45pm

Session reporter: Victor Kuo

Summary of the content of the session:

Social Ventures Hong Kong (Francis Ngai)
SvHK founded in 2007 as a social investing fund and an incubator. We did not have a
professional sector with many deals around. For example, we launched Diamond Cab 3 years
ago. We generate 50,000 wheel chair trips. This was proof that social venture working.
LifeBeat to move families out of sub-divided cubicles to houses. We grew to 13 hours. Also
Green Monday. One day meat free. Mobilize 1,000 restaurants on vegetarian options.
Human capital is something we take serious, and we are mobilizing over 500 professional
volunteers. We are using their expertise to help our work (recent graduates to mid-life crisis).
They came to us. We are working on how to retain people with the same vision. We rotate
peoples roles. We try to get them exposed, have more experiences in the business world, to
provide extra-financial return.

Chen Yet Sen Family Foundation (James Chen)
I started my journey more than 10 years ago to found a family foundation working in China,
Hong Kong, and West Africa. These ideas of blended value investing meant taking risks on
early start-up ventures. I invested in a hospital in Shanghai. Another project was Amado
(Facebook of NGO world). A third project was a pair of glasses with changeable lens power.
Project delays and multiplication costs. Reflecting back on these projects, its all about the
people. When thinking about talent, as a startup or being in Asia, 10 years ago venture
philanthropy was not on the radar, people dont want to take a risk. So, if I cant get all the
pieces, I usually go with the people with a passion. Ultimately, thats what powers through
those times when its looking bad. I look for passion. But you also need a strong vision and
culture for an organization. People may not have the experience or the real talent. In the
Asian culture, you need people to be open and express themselves. In China, people dont
like to speak up. Its about loyalty, the boss. In today, with the things we deal with, its about
speaking up and speaking out. How do you break through loyalty to the leader? It should be
to the vision.

UnLtd (Cliff Prior)

UnLtd is a support organization for early stage startups. About 1,000 people to get started.
We were formed out of our national lottery. You dont spot entrepreneurs by employing
grant officers. Entrepreneurs can spot entrepreneurs who know that experience, that gut
feel. We cut out the entire line management (50 people). We let them make decisions and
then trust their judgment. Well also take deep dives on a learning basis. This has
transformed the organization from good to very good. Problems and challenges-
entrepreneurs dont like being managed.

AVPN (Andrew Muirhead)
How did you go about identifying your first team? [Francis] We did not reach out to people.
Our first CEO was Doris of Diamond Cab. We talked about the idea and found some support.
Her mom had a stroke, so she knew first-hand about the challenge. She quit her job. She had
a vision that before her mother passed away, she could enjoy it. So her story inspired myself
and other entrepreneurs. Im not so much disappointed if they dont deliver but more if
they dont have the tears in their eyes or the sweat on their head. These are things I care
more about. You have to also help people feel fun and caring, to create a climate. Make it
the talk of the town, media, and pictures with celebrities. The momentum in the newspaper.

Compare Europe and Asia for your expansion. [Cliff] We found people as inspired in Asia as
elsewhere. Its universal. People determined to make things happen. So in common to both.
A challenge in Asia, I think the intensity of family pressure in Asia to get a safe professional
job is very intense, it holds back the sector. Second career people are those who safe
enough so now they can do what they want. In China, the one-child policy requires that
child to ensure security. The sector cannot be a sector of low pay. In Asia. If people cant
earn a decent pay, you cannot attract the number. In UK, 100,000 started something social.
You cant get that in China if people cant earn a living. The pace here is extraordinary. In UK,
its pretty fast. In continental Europe, pace is embedded, inert. In Asia, in one year,
organizations are established. One more concern. In Europe, the social investment scene
has been taken over by people from a venture capital world. Here, theres a balance in
Asia. If you dont have the balance, entrepreneurs, to understand what youre investing in.

Loyalty. In terms of managing staff, foundations, does that create challenges to being the
best that you can be? [James] When it comes to loyalty, its ingrained. In meetings, no
questions. Im too Westernized. I like to speak up. In my foundation, I would challenge
family members. Thats a big deal. Disagreeing with your mother.so unfilial. I did it to
make a point.

Questions from the audience:


[Francis] You have passionate people, do you pay them at a market rate? And how do you
respond to attracting talent? [Francis] My journey is a passion embracing process and
managing expectation. They came to us. Social entrepreneurship is challenging the existing
system, capitalism. We have to change our values. What do you want? If they think, I am
underpaid. But I have to keep fighting. Thats too hard. We have to change the mindset. I
dont expect they dont have to have a loyalty. But during the time, maximize your impact.
Meet the people you want to meet. Build up your skills. Work with the entrepreneur. All
staff start without a mindset of money. We ask if they can volunteer for one month first.
Then we pay them.

What is the fundamental change needed, for a 16 year old, to choose this sector? To bring
in the next talent pool? To grow the sector? [Cliff] We recruit young people for supporting
young entrepreneurs. 16 year old volunteer being mentored by a 24 year old. Building a
relationship of trust with an entrepreneur is to see its worth your time. Ability to diagnose
the challenge. Our ideal candidate is someone whose been an entrepreneur, gone through
the cycle and exited their business. So at least 30.

[Shell Foundation] Our staff are prime source of capital to our partners. Staff can be
regarded as overhead cost and a tendency to benchmark against other charitable orgs that
have tried to minimize cost. We have staff who are valuable, but how do you track that? To
measure the value of the human capital that you as an organization provide? Rather than
seeing it as a cost? [Cliff] We do this, through happy sheets. Its 50-50 between money and
supports. The happy sheets are happier at end of year, but when you go back 3 years later,
its more the supports.

[Victoria from the Royal Foundation] You need a whole range of skills. People with digital,
technical, web skills. You narrow the field enormously when you consider pay vs. passion. I
worry that we have a dichotomy. But with the need for a diversity of skills, when you
narrow the field, who are first passionate and not thinking broadly (pay) compromises our
effectiveness.

[Dragen Dalberg Global Development] Pay vs. Passion. Management vs. Leadership. One of
our challenges was how to help managers become leaders. In the social world, its the
reverse. Everyone is passionate. But I hear of more people dissatisfied with philanthropic
heads who dont treat their people well. In a corporation, at least if Im not treated well, at
least Im paid. Provocative statement, if youre talking about human talent in this sector,
we need to self-reflect, are we providing space, over-emphasizing passion. The value
proposition is that you get to solve the most challenging problems in the world.


[Francis] I believe food is cheap. To have enough to eat doesnt take a lot. For now, I think, I
cannot overcome all the fear, the salary, losing face, not having enough to support their
families. But we also fear, that employees will leave tomorrow. Thats a disbelief in what we
can create here. Its a process for all of us.

[Andrew] I hope weve had a strong discussion aboutpassion doesnt pay the groceries. But
in this sector youre running on passion, and backing vision. Vision gets many situations a
long way. Autonomy and giving people autonomy as compensation, thats a lot of trust.
Backing people and trusting them, a learning environment, and a purposeful one. The
caliber of people here in Asia is incredibly high, young.

Feedback/Take-Aways for the AVPN:
The main differences between Europe and Asia are: 1) In Asia, the intensity of family
pressure to get a safe professional job is very intense, it holds back the sector. 2) The pace
here in Asia is extraordinary. In UK and continental Europe, the pace is slower. 3) In Europe,
the social investment scene has been taken over by people from a venture capital world.
Here, theres a balance in Asia.
If youre talking about human talent in this sector, we need to self-reflect and reconsider if
were over-emphasizing passion.
The motivation and value for working in this sector must include giving people autonomy as
compensation and thats a lot of trust. Creating social enterprises that back people and trust
them, a give them a learning environment, and that is a purposeful one are all highly valued.
The caliber of people here in Asia is incredibly high and there are many young people.