SOCIAL

INNOVATORS
PROGRAMME
TRAINING
GUIDELINES
A complete training helping
young people develop
social innovation and social
entrepreneurship projects

UK CZ RO
SIP GUIDE UK

INTRODUCTION

The Social Innovators Programme

Training Guidelines (SIP E-Guide) is a handbook to be used by any organization
looking to implement social innovation trainings for young people. It includes the training
materials and the methodology for delivering the theoretical information, as well as
recommendations on how to facilitate the learning experience.

Individuals interested in social innovation can also use the SIP E-Guide and read through
the training materials in order to develop their own social innovation project.

This collection of intellectual outputs – training materials and methodology on social

innovation and social entrepreneurship – was produced as part of the Erasmus+ funded,
strategic partnership project developed between organizations from Scotland (European
Development Innovation Network – EdiNet), the Czech Republic (Ustav socialnich inovaci)
Romania (Rotaract Club Bucharest), aiming to support the development of social innovation
education in Central and Eastern Europe.

The initial training materials created by Edinet (Scotland) have been adapted to the social
and economic context in Romania and the Czech Republic. To gather feedback, Rotaract
Bucharest and Ustav used the training materials during pilot trainings involving 60 young
people in each country. The following pages are the final version of the training materials
and training methodology, ready to be used be other organizations involved in youth work,
education or the public sector.

Piloting the training course has served to produce a training manual that is relevant to the
target audience and easy to use by facilitators, trainers and educators.

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What information does the SIP E-Guide provide?

The SIP E-Guide includes essential information on the fundamental elements of a training course:

Training materials on topics essential to the development of any social innovation project: Social Innovation, Marketing & Branding, Business management
(legal and accounting), Finance, Social Impact, Leadership & Communication, Pitching & Public speaking.

Methodology – the training course design with detailed methods of delivery, using principles of non-formal education, tips for organizing and facilitating the
learning activities

Social innovation projects from Scotland, Romania and the Czech Republic presented in interviews with the founders or key staff members who share their
experience, challenges faced and leasons learned.

The material is structured as a collection of three different training formats, with country specific information and general elements which can be adapted to any
learning context. In the SIP E-Guide you will find one training programme which uses methods of non-formal education, another which includes an on-site 2-day
intensive training session and a third more traditional approach best suited for a formal learning environment. You can create your own version of the training
programme by combining the various elements presented in the SIP E-Guide.
After reading these pages, you will be able to organize a training programme which will be the starting point to understanding social innovation concepts,
generating ideas and planning a social innovation project.

How can I access the SIP E-Guide?

The SIP E-Guide is available for download via the project website www.rotaract-bucuresti.ro/sip.
Connect with the project team via the website.
We are open to answer questions, provide information and offer support so that you or your organization can support social change through education.

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SIP GUIDE UK

CONTRIBUTIONS AND CREDITS

AUTHORS Sabina Manková

European Development Innovation Network Lukáš Trčka
Roger Horam
Roxana Ghita

EDITORS
Asociatia Rotaract Club Bucuresti European Development Innovation Network
Ana-Maria Andronic Ustav socialnich inovaci
Asociatia Rotaract Club Bucuresti
Ustav socialnich inovaci
Roman Málek
Jirí Daneš The Social Innovators Programme team would like to thank
Ivo Škrabal all those who have contributed to the creation of this mate-
Kristina Kodádková rial through their involvement in the Social Innovators Pro-
Petr Beneš gramme project.
Roman Chlopčík
Milena Hakenová
Zdenek Zívala
Petra Harazimová

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SIP GUIDE UK

TABLE OF CONTENTS
CHAPTER 1 10 CHAPTER 3 134
SOCIAL INNOVATION AND YOUTH UNEMPLOYMENT THE SIP TRAINING EXPERIENCE IN
THE CZECH REPUBLIC
Social Innovation Theory 12
NEETS 26 Training piloting summary 136
Agenda 140
Social innovation 142
CHAPTER 2 32 Introduction to Marketing, Branding and Social Media 164
THE SIP TRAINING EXPERIENCE IN SCOTLAND Legal Structure and administration 182
Access to finance 202
Social Innovation 34 Leadership and peer support 228
Ideation and Business Model Canvas 44 Pitching and Public speaking 250
Introduction to Marketing, Branding and Social Media 54 Coaching 266
Legal Structure and administration 64 Mentoring
Access to finance 78 Case studies 278
Impact measurement 88 Amaro Records 278
Leadership and peer support 102 Zelena Dilna 282
Ironing ladies 286
Pitching and Public speaking 116
Rekola 290
Case studies 124
Edinburgh Tool Library 124
Emotion works 126 CHAPTER 4 294
Invisible Edinburgh 128 THE SIP TRAINING EXPERIENCE IN ROMANIA
Remade in Edinburgh 130
Vox Liminis 132
4.1.The SIP Training in Romania 296
Training piloting summary

6
Agenda 304
SIP training course flowchart 310
Methodology 334 Methodology
Icebreakers and Name Games 334 SWOT Analysis 458
Energizers 340 DORI Window 460
Cooperation Games 344 Johari Window 461
The Hero’s Journey 348 Leadership - Blind triangle 462
ORID 350 Relationship Hygiene 466
4.9 Public speaking & Pitching 468
4.2 Social Innovation Theory 354 4.10. Case studies RO
Methodology 364 Mesteshukar Butiq 480
Social Innovation 364 Nod Makerspace 484
Ideation exercise 365 Social Tea House 488
Defining the problem 366 Mama Pan 492
Business Model Canvas 367
Problem Tree 358 CHAPTER 5
4.3 Marketing & Branding 370
THE SIP MOBILITY IN SCOTLAND
Methodology 386
Marketing Mix
Branding and Social Media 388 5.1. Study visit overview 498
4.4 Legal administration 390 5.2. Summary of key learning points 502
4.5 Financial administration 402
4.6 Social Impact 408 SOCIAL INNOVATORS PROGRAMME – our story 504
4.7 Financing your idea 426
4.8 Leadership - Management of people,
teams and organizations 442

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SIP GUIDE UK

FORWORD EN

All over Allthe

over world,
the world,
socialsocial
innovation
innovation
is tackling
is tackling
some some
of the of
most
the pressing
most prob-
lems facing
pressing society
problems todayfacing
- fromsociety
fair trade,
todaydistance
- from fair
learning,
trade, hospices,
distance learn-
urban farming
and waste
ing, hospices,
reduction urban to restorative
farming justice
and waste and zero-carbon
reduction to housing.
restorative Butjustice
most of these
are growing
and zero-carbon
despite, nothousing.
becauseBut of, help
mostfromof these
governments.
are growing despite, not
because of, help from governments.
Social innovation thrives on collaboration; on doing things with others, rather than just
Social
to them or for innovation
them: hence thrives
theon collaboration;
great on doing
interest in new ways ofthings
usingwith
the others,
web to ‘crowd-
source’
rather
ideas, than
or just
the many
to them experiments
or for them: involving
hence theusers
great
in designing
interest in services.
new ways
of using the web to ‘crowdsource’ ideas, or the many experiments involv-
ing users
So is civil society in prepared
designingfor services.
the future? Probably not. Most organizations have to live
hand to mouth, juggling short-term funding and perpetual minor crises. Even the bigger
ones rarely
So is civil
get much
societytime prepared
to stand forback
the future?
and look Probably
at the bigger
not. Most
picture.
organiza-
Many are on a
tionschasing
treadmill have toafter live hand to mouth,
contracts and new juggling short-term funding and perpet-
funding.
ual minor crises. Even the bigger ones rarely get much time to stand back
There and
is a yearning
look at the for people
bigger to picture.
return Many
to elementary
are on a moral
treadmill
virtues,chasing
such asafter
integrity and
commitment.
contractsWe and distrust
new funding.
people who have no centering of values. We greatly respect
businessmen, for example, if they display those virtues, even if we don’t necessarily agree
Geoff Mulgan with the
Therepeople.
is a yearning for people to return to elementary moral virtues, such
Chief Executive of Nesta as integrity and commitment. We distrust people who have no centering
The most
of values.
important We innovators
greatly respect
often businessmen,
don’t need anyfortechnologies
example, if-theyjust imagination
display and
Geoff Mulgan CBE is Chief Executive of acute those
sensitivity
virtues,
to people’s
even if we needs.
don’t necessarily agree with the people.
the National Endowment for Science
Technology and the Arts and Visiting The most important innovators often don’t need any technologies - just
Professor at University College London, imagination and acute sensitivity to people’s needs.
the London School of Economics and
the University of Melbourne

8
FORWORD CZ

Recently social entrepreneurship is widely discussed issue in the Czech Republic.

The reason is indicated by the base characteristics of social economy. The main purpose of
social business is to satisfy a social aim and not to make a profit. This type of business pro-
duces positive externality - social benefit - that cannot be always evaluated by the market. It
is an area of economic activity of individuals or organizations effectively linking economic,
social and often also environmental or other beneficial aspects. The basic principle of social
enterprises´ operation is economic self-sufficiency as well as social responsibility.
Social economy is less developed sector of the Czech economy. It has a potential to create
a lot of new jobs also for long-time unemployed people and other marginalized groups.
Therefore, the Czech government should seek for the ways how to develop this important
branch of economy. At the present, social economy isn´t considered as potential key to
encourage the employment rate. Excluding vulnerable persons from labour market Czech
economy is losing tens of millions of Czech crowns in productivity and in fiscal contribution
to the state budget.
Social innovation is a newish concept in the Czech Republic, while the social enterprise
definition is accepted by a wide range of stakeholders. However, these definitions are not
included in any legal framework, nor is there a specific body responsible for monitoring of
compliance. First law determining social entrepreneurship and social enterprises is under
preparation. The responsible body to prepare the Act on Social Entrepreneurship is the
Agency for Social Inclusion attached to the Office of the Czech Governmental.
Ivo Škrabal
The activities of social enterprises usually require an initial investment which may be the Chairman of Board of Di-
subject of public funding. However subsequent operation of social business must already rectors, Institute of Social
be self-sustaining, based on the building of interpersonal relationships, employee develop- Innovation
ment, regular education with local impacts on the entire society or community. Nowadays
we already know from good practices´ examples that socially and health disadvantaged
are loyal and honest employees who appreciate their job opportunity. Nevertheless, the Ivo Škrabal is counsellor of Ministry of
basis for success is naturally a competitive business plan as in a normal business. Labour and Social Affairs of the Czech
Republic for the social entrepreneurship
and social innovations field

9
SIP GUIDE UK

1
C H A P T E R

SOCIAL INNOVATION
AND YOUTH
UNEMPLOYMENT

10
11
SIP GUIDE UK

SOCIAL INNOVATION THEORY

‘Social Innovation’ is a relatively new term, not widely used or understood in the
public domain, and very infrequently used in the policy domain. In comparison to
scientific or IT based innovation it is given less attention; and it is sometimes con-
fused as being the same thing as “social enterprise” – which it is not. Nor is it exclu-
sively the domain of the Third Sector.

However social innovation is not new. It is central to all flourishing societies and
provides the glue which provides or repairs social cohesion and advancement. It
happens across sectors, bottom up, and top down e.g. the ban in smoking in public
places, and ‘Boris Bikes’. The emphasis of such initiatives is in joined up thinking and
approaches.

Social Innovations are new strategies, concepts, ideas and organisations

that meet social needs of all kinds, that extend and strengthen civil society.
They include the social processes of innovation, and innovations that have
a social purpose.
Wikipedia

12
‘Social Innovation’ as a concept is moving
up National Government policy agenda
following attention given to it by the
European Commission, and the funding
that is coming to Europe during the next
decade to support it in key areas such as
employability and health.
On a national level there are many
opportunities and drivers for social
innovation: Public Sector Reform, the
Community Empowerment Act, an emphasis
on participation in democracy and building
community assets to name a few.
National and regional policy makers now
need to understand how social innovation
fits into and flourishes in their own area
of directorate, establish links across all
directorates, and develop the conditions
which assist social innovation across the
public, private and third sectors. Together we
can tackle the challenges and opportunities
of meeting our National Outcomes and
ensuring the prosperity of our communities
and country.
WHY TALK ABOUT SOCIAL INNOVATION
NOW?
There is increasing attention at the
European Level being given to the concept
and potential of social innovation; see for
example, the European Commission’s Guide
to Social Innovation (http://ec.europa.eu/
DocsRoom/documents/19042).
Innovation is often put forward in the context
of science and technology as an important
source of business and economic growth.
Social innovation is sometimes seenas
synonymous with social enterprise, but
whilst many social enterprises are socially
innovative; we had already seen that
social innovation occurs in other contexts.
Therefore we wanted raise attention to social
innovation across sectors and subjects.
The mission of the partners involved in the
Social Innovators Project funded through
Erasmus + Strategic Partnerships for Youth
has been to stimulate and support social
innovation. We seek to do this through the
provision of dynamic resources for social
change makers and through collaboration
with other socially innovative organisations.
This involved preparation of training
materials and access to established social
innovators through a study visit.
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SIP GUIDE UK
WHAT IS EUROPEAN SOCIAL
INNOVATION?
Across the world, millions of people are
creating better ways to tackle some of the
most challenging social problems of our
times. “This is European Social Innovation
– A call for inspiring stories” proves that
Europe is no exception.
The current financial and economic crisis
makes social innovation more important
than ever – both as a component of
economic strategies to build Europe’s
relative position in growing fields such as
healthcare and environmental services, and
as a vital contribution to achieving greater
value for money in public services. We must
look to social innovation to stimulate a more
dynamic, inclusive and sustainable social
market economy.
Fortunately, there is no shortage of social
innovations in Europe. Many are very well
established – from the Mondragon group
of Cooperatives in the Basque Country in
14
Spain, to France’s Emmaus communities SOCIAL INNOVATION - QUALITIES
which are now established all over Europe AND SKILLS NEEDED:
and Italy’s San Patrignano which is now the
largest drug rehabilitation community in
the world. Some are less well established,
as individuals, communities, organisations • making connections
and companies begin searching for new
ways, and adapting old ones, to address the • disruptions
modern societal challenges. • critical mindset
Despite this activity, the field of social • vision
innovation has yet to mature enough
to tackle the multitude of challenges • persistence
society presents it with. Many innovative • ability to learn
projects and programmes remain small, • reflection
under-funded, and are not sustainable,
• experimentation
therefore having restricted impact. Funding
specifically intended for growing social • take risks
innovations is limited, and often provided • question results
by philanthropists. In order to move from its
• focus but also openness
current state of fragmented good ideas, to a
place where social innovations are making • ability to “sell”
a more consistent, more efficient impact • courage
across all areas of need, successful social
innovations in Europe must be more visible.
THEORIES ON HOW SOCIAL
INNOVATION STARTS:
• in response to a perceived need or
opportunity
• to solve a clear problem OR an evolving
issue
• from a love of social justice
• organically and in several places at
once
• by accident
• from frustration
• from relationships (between different
types of people)
• as a result of disaster
• from visions of how things could be
over different time horizons
WHAT IS SOCIAL INNOVATION?
Social innovation can be defined as the
development and implementation of new
ideas (products, services and models) to
meet social needs and create new social
relationships or collaborations. It represents
new responses to pressing social demands,
which affect the process of social interactions.
It is aimed at improving human well-being.
Social innovations are innovations that are
social in both their ends and their means.
They are innovations that are not only good
for society but also enhance individuals’
capacity to act.
They rely on the inventiveness of citizens, civil
society organisations, local communities,
businesses and public servants and
services. They are an opportunity both for
the public sector and for the markets, so
that the products and services better satisfy
individual but also collective aspirations.
Stimulating innovation, entrepreneurship
and the knowledge-based society is at the
core of the Europe 2020 Strategy.
Social innovation describes the entire process
by which new responses to social needs are
developed in order to deliver better social
outcomes. This process is composed of four
main elements:
• Identification of new/unmet/
inadequately met social needs;
• Development of new solutions in
response to these social needs;
• Evaluation of the effectiveness of new
solutions in meeting social needs;
• Scaling up of effective social
innovations.
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SIP GUIDE UK
The BEPA (Bureau of European Policy
Advisors) definition above comes from a
report1 which outlines the following three
key approaches to social innovation:
• Social demand innovations which
respond to social demands that are
traditionally not addressed by the market
or existing institutions and are directed
towards vulnerable groups in society.
They have developed new approaches
to tackling problems affecting youth,
migrants, the elderly, socially excluded
etc. The European Social Fund and
initiatives like PROGRESS traditionally
link to this.
• The societal challenge perspective focuses
on innovations for society as a whole
through the integration of the social, the
economic and the environmental. Many
of the integrated approaches seen in the
ERDF’s URBAN programmes as well as
the URBACT programme fall into this
societal challenge approach.
• The systemic change focus, the most
16
ambitious of the three and to an extent
encompassing the other two, is achieved
through a process of organisational
development and changes in relations
between institutions and stakeholders.
Many EU approaches that involve
‘stakeholders’ are attempting to move
in this direction such as the EQUAL
programme (driven by the idea of
changing the balance of power between
users and providers4) and LEADER5.
In sum, Social innovation approaches are
notably innovations in the internationally
recognised Oslo Manual sense, but whose
primary goal is to create social change. Just
like not all enterprises are social enterprises,
not all innovations are social innovations.
Compared to mainstream innovations,
‘social innovations’ are critically driven
by an extra motive: a social mission, and
the value they create is necessarily shared
value, at once economic and social.
Many social innovations have to do with
service innovation. This includes innovation
in services and in service products, new
or improved ways of designing and
producing services, and Innovation in
service firms, organisations, and industries
– organisational innovations and the
management of innovation processes,
within service organisations. Social design
is also used as a term to describe particular
approaches to social innovation.
Social design is also meant to empower
people at local level to invent together
solutions to economic and social problems.
It contributes to offer new values to guide
public administrations’ actions through
collaborative working, experimentations
and prototyping.
Social innovation describes the entire process
by which new responses to social needs are
developed in order to deliver better social
outcomes. This process is composed of four
main elements:
• Identification of new/unmet/
inadequately met social needs;
• Development of new solutions in
response to these social needs;
• Evaluation of the effectiveness of new
solutions in meeting social needs;
• Scaling up of effective social
innovations.
The BEPA (Bureau of European Policy
Advisors) definition above comes from a
report1 which outlines the following three
key approaches to social innovation:
• Social demand innovations which
respond to social demands that are
traditionally not addressed by the market
or existing institutions and are directed
towards vulnerable groups in society. They
have developed new approaches to tackling
problems affecting youth, migrants, the
elderly, socially excluded etc. The European
Social Fund and initiatives like PROGRESS
traditionally link to this.
• The societal challenge perspective
focuses on innovations for society as a
whole through the integration of the social,
the economic and the environmental. Many
of the integrated approaches seen in the
ERDF’s URBAN programmes as well as the
URBACT programme fall into this societal
challenge approach.
• The systemic change focus, the most
ambitious of the three and to an extent
encompassing the other two, is achieved
through a process of organisational
development and changes in relations
between institutions and stakeholders. Many
EU approaches that involve ‘stakeholders’
are attempting to move in this direction
such as the EQUAL programme (driven
by the idea of changing the balance of
power between users and providers4) and
LEADER5.
In sum, Social innovation approaches are
notably innovations in the internationally
recognised Oslo Manual sense, but whose
primary goal is to create social change. Just
like not all enterprises are social enterprises,
not all innovations are social innovations.
Compared to mainstream innovations,
‘social innovations’ are critically driven
by an extra motive: a social mission, and
the value they create is necessarily shared
value, at once economic and social.
Many social innovations have to do with
service innovation. This includes innovation
in services and in service products, new
or improved ways of designing and
producing services, and Innovation in
service firms, organisations, and industries
– organisational innovations and the
management of innovation processes,
within service organisations. Social design
is also used as a term to describe particular
approaches to social innovation.
17
SIP GUIDE UK
Social design is also meant to empower
people at local level to invent together
solutions to economic and social problems.
It contributes to offer new values to guide
public administrations’ actions through
collaborative working, experimentations
and prototyping.
While the techniques being developed
vary considerably they rarely resemble
the more traditional forms of service-
planning in the public sector in which either
formal meetings are the dominant form or
where experts arrive at solutions by linear
analysis. Social innovation practices tend
to be looser, involve more people, feature
more animation techniques, are more
interdisciplinary, find new ways of involving
users and citizens and encourage thinking
out of the box. They deploy evidence based
methods and often use techniques like
benchmarking to identify good practices in
the specific fields.
18
In general, social innovation approaches
are:
• Open rather than closed when it comes
to knowledge-sharing and the ownership
of knowledge;
• Multi-disciplinary and more integrated
to problem solving than the single
department or single profession solutions
of the past;
• Participative and empowering of citizens
and users rather than ‘top down’ and
expert-led.
• Demand-led rather than supply-driven;
• Tailored rather than mass-produced, as
most solutions have to be adapted to
local
• circumstances and personalised to
individuals.
AREAS WHERE SOCIAL INNOVATION
MIGHT HAVE GREATEST IMPACT
1. Localisation - local initiatives, co-
production and localisation in response
to demographic trends which It requires a
move from top down to bottom up. Local
solutions are appreciated; they don’t always
need to be transferred.
More decisions made locally or with high-
participation and skill to do so. More
responsibility locally, addressing negative
impacts locally, not outsourcing them.
2. Democracy and civic participation
2.a. Open, enabling leadership who are
resourceful and enable risk taking, with
greater access and more nurturing.
Transparency in how things are run.
2.b. Active citizens - in the future, people are
engaged, and society values long term
gain over the short term. A society that is
 decentralised, pluralistic, inclusive, and
recognises that no one size fits all. People
contribute to developing systems as part
of public “service” and volunteering.
People feel more involved.
2.c. Collaborative and participative
problem solving - Parliament run on a
collaborative, problem-solving basis.
We could “reboot” our operating system
(social innovation is understood as
the operating system). A measured
and inclusive approach to community
decision-making, everyone participates
and is valued.
3. Cross Sector Working
Social innovation includes public, private
and third sectors. There will be collaboration
with the public, private and third sectors seen
as three legs of a stool, on a foundation of
respect, understanding, shared values and
vision.
4. Inclusiveness
Networking and sharing will be a strong
characteristic, diversity will be accepted.
Reduced poverty and feasting centres would
replace food banks. Needs would be met
in caring communities where many people
play. Intergenerational meetings and
celebrations will cross fertilise ideas. No
isolation because of inclusive communities.
5. The environment and infrastructure
Better infrastructure- like more and better
housing, learning and development
opportunities, jobs and fulfillment leading to
sustainable and wealthy communities. Eco-
houses and great, efficient public transport
and cycle lanes everywhere.
Access to quality built environments, homes
for all and more community ownership of
assets. Collective access to rural area and
common land. Clean energy generation
and energy self-sufficiency and communities
wealthy via a wind farm dividend.
Increased environmental responsibility,
leading to greener businesses, green hands
and lifestyles.
Community food production within a
healthier food system and cultural change
around food. Leads to good health for
people and communities
6. Equality
A salary ratio (lowest to highest paid) of 1:7
or 1:5. All neighbourhoods look flourishing;
no sharp distinction between areas. Wealth
being redistributed and jobs and recreation
for all- health in its widest sense. A more
equal pattern of land ownership and
difference being used as an asset. No
discrimination; gender, age or sectarianism
and a society where all are included and
have an opportunity to learn, grow and
contribute.
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SIP GUIDE UK
7. Economy
This new economics includes fair and equal
pay and responsible citizens. People will
be free to take responsibility, for example,
through microfinance. The wealth distribution
will be different, with a revamped banking
system and institutions in support. There
will be income generated by land tax. An
alternative to benefits system- subsistence
wage- this links to the idea of national
minimum income with more balance in our
lives and people earning enough to feed
themselves and their families, and people
will grow their own food. People sell their
activity data to actuaries and supplement
their pensions. There is Less demand for
crisis services through having prevented
need. In other words; there is a shift from
each according to their means to each
according to their needs. Responsible use of
resources- oil, fashion, food, people.
20
8. Business
Business would be required to deliver
positive local & social environmental impact
and not just financial returns. The more-
than-profit ethos will prevail- not profit at all
costs. No business will be too small if their
idea benefits many. In this society the size of
enterprise doesn’t matter: small is beautiful,
large is great, and small and large will share
ideas, enterprise and learning.
9. Education
Emphasis on early year education. Children
are helped to see possibilities and try and
adapt different ways to do things. They are
encouraged at school. Children learn values
in the home, not at school, and that the
adult is valued at work and contributes to
society. Different methods of education will
be used so that all can be educated. Linked
up home schooling. Equal, high quality
education. Universities operate in service of
communities, region and nation. Inclusive
centres of excellence to encourage people
to explore and develop skills
10. Attitudes and values
A positive atmosphere, though some
“dourness” retained. A feeling of “I can
do it” or rather “we can do it”. Find your
niche; achieve your potential by doing what
you’re good at. Child friendly and aware,
society will contribute. Age a real asset
not a problem. Society will be just and
financially fair. Communities will share and
collaborate.
There is an emphasis on being outdoors
and being with friends and family; having
longer term perspective; community &
social confidence and security. Education
and learning will be prized once again. This
is underpinned by community reliance and
empowerment and lots of innovative ideas.
11. Enterprise and employment
Industries that we excel at would prosper
and there would be a vast increase in
social enterprise. This is coupled with an
increase in job opportunities. 100% fulfilling
employment There will be social innovation
zones in every community that transfer local
resources into enterprising activity.
12. Connected systems
Includes interlinking concepts such as
sharing, numeracy and homes for all. It
highlights transport links from mainland to
islands. Improved infrastructure connects
to education, which connects to democracy
which connects to independent Scotland?
Community resilience and cooperative
approach lead to cultural change; people
enabled to support each other.
Strong community networks, improved
models 3rd sector and of local and central
government leading to “systems change”.
Self-actualisation is shown as at the top of a
pyramid, where government supports safety
at the bottom.
13. Scotland’s Place in the world
Globally respected as a neutral country, as
honest broker, and as educational leader.
Scotland will look outwards.
14. Health
A healthy population that will live longer
through prevention not cure. Healthcare will
be social, emotional and physical. Getting
healthier- we will all have new access to
wellbeing services, which leads back to the
heart.
15. Technology
Technology will be used to support process
of social innovation- e.g. data monitoring.
There will be more meet-ups and
“holographic Skype (2nd life)”. “I am living
at home alone cared for by a hologram” An
idea of a UK wide time bank is illustrated
with an example that a grandson will
volunteer in Swansea allowing care to be
bought in Scotland.
21
SIP GUIDE UK

MAINSTREAM NICHE - CONSIDER HOW TO SUPPORT FRINGE - CONSIDER WHETHER TO SUPPORT

Co-production policy
Spend time with friends and family
Spend time outdoors
Co-production practice
Citizens are active and engaged
Public, private and third sectors collaborate Participation in local decision making
Intergenerational collaboration
Learning culture
Community ownership of assets
Difference used as an asset
Need for state intervention is prevented
from developing
“We can do it” attitude
Scotland looks outwards
Technical support for social innovation
More than profit ethos
Small and large businesses share ideas
Wellbeing services (not illness services)
Age is used as an asset
Children helped to see possibilities
Communities meet own needs
Local solutions don’t need to be replicated
Leaders enable risk taking
Pluralistic approaches
People contribute to developing government
systems
Parliament run on a collaborative problem
solving basis
Social innovation understood as the operating
system
Sharing
Play
Financial benefits returned to communities
Pay ratio of 1:7 or 1:5
Social innovation zones
Great transport links, including to the islands.
Linked-up home schooling
Inclusive centres of excellence

22
A STAGE MODEL OF SOCIAL THE SPIRAL MODEL OF SOCIAL INNOVATION SHOWING THE FOUR
INNOVATION STAGES 9

Social innovations typically go through

stages. They start as ideas, which may then
be piloted or prototyped. If successful there
is a process of sustaining the new model in 1. Ideas
the implementation stage – perhaps as a
new venture or as a new policy within an
existing institution. The final stage is to scale
up so that the new approach makes a real
impact and becomes part of the norm.
The challenge for policy makers is to identify
which ideas are the most promising to take
to the pilot stage, and to identify which 2. Prototiping &
pilots are best able to improve on existing piloting 4. Scaling
models of practice. Then selecting from
among those pilots, the projects that should
be implemented to become sustainable
ventures and the ventures that should be
scaled up to achieve systemic changes. It is 3. Implementation
important that regional authorities design
programmes that stimulate a pipeline of
projects at each stage which can then be
promoted to the next.

23
SIP GUIDE UK
WHY OPT FOR SOCIAL INNOVATION?
In the past, societal challenges such as the
ageing of Europe, migration waves, social
exclusion or sustainability were primarily
perceived as problems that constrained the
behaviour of economic actors. Individuals
wishing to tackle them turned to traditional
non-profit models as the vehicle through
which to channel their energies. These
activities have often been highly dependent
on government subsidies or private
donations and faced the difficulty of realising
a long-lasting, sustainable difference.
Today, societal trends are increasingly
perceived as opportunities for innovation.
What’s more, trends in demography,
community and social media, poverty,
the environment, health and well- being,
or ethical goods and services are more
and more understood as growth markets.
Just think of the growing shelf space that
green (organic) and fair trade products
have conquered. In addition, there is a real
24
excitement around new entrepreneurial
answers and solutions to the rapidly
changing challenges that these trends raise.
Moreover, we already see a lot of business
model experimentation – the emergence of
hybrid organisational models, horizontal
business models designed to create at once
economic and social value.
There is also a great need and potential
for social innovation in the public sector.
As social needs are evolving because of
structural trends like demography and
ageing, it is necessary to adapt social
policies and find economic solution in times
of “growthsterity”.
Europe has a head-start. It is ideally placed
to take a lead and capture first-mover
benefits when it comes to implementing
social innovations by pro-actively and
effectively trying to fully (and fairly) realise
both economic and societal benefits. With its
strong legacy in social democracy, solidarity,
civic participation, justice and fairness,
Europe arguably constitutes especially
fertile grounds when it comes to sustainably
enabling and growing social innovation.
Europe 2020, the EU’s leading strategy,
aims at a smart, sustainable and inclusive
economy. It also points to social innovation
as one of the avenues to explore to attain its
targets. In the flagship initiatives “Innovation
Union, “European Platform against
poverty”, “A Digital Agenda for Europe” and
the “Active and healthy ageing” innovation
partnership, social innovation figures
prominently. It does also in the HORIZON
2020 framework programme for research
and in the new Cohesion Policy proposal.
Four years into the crisis, Europe is facing
unprecedented problems that have put in
jeopardy its currency, economy and social
model. Perhaps at no time since the 1940s
has social innovation been so urgently
needed.
In its Europe 2020 Strategy the European
Union has identified targets in five areas:
• Employment: 75% of the 20-64 year-
olds to be employed
• R&D/innovation: 3% of the EU’s GDP
(public and private combined) to be
invested in R&D/innovation
• Climate change / energy: greenhouse
gas emissions 20%(or even30%, if the
conditions are right) lower than 1990;
20% of energy from renewables ; 20%
increase in energy efficiency
• Education: Reducing school drop-out
rates below 10% ; at least 40% of 30-
34–year- olds completing third level
education
• Poverty / social exclusion: at least 20
million fewer people in or at risk of
poverty and social exclusion
Social innovation can be a tool to help
achieve these targets:
• It can provide new, more efficient
answers to meet growing social needs;
• It can provide local answers to
complex social and societal challenges
mobilising local actors;
• It is capable of integrating various
stakeholders to tackle this jointly,
through new ways of working together
and involving users;
• If applied well, it can deliver using
fewer resources, particularly important
at a time of reduced public finances and
shrinking private funds.
25
SIP GUIDE UK

NEETS - YOUNG PEOPLE NOT IN EMPLOYMENT,

EDUCATION OR TRAINING

YOUTH UNEMPLYMENT IN EUROPE WHAT IS A NEET?

NEETs young people not Employment,
Education or training The term NEET is used to describe young
Conventionally people who are not engaged in any form of
Definition Heterogeneity Unemployed
employment, education or training. The term
has come into the policy debate in recent
NEETs are young Heterogeny of the years due to disproportionate impact of the
people aged NEETs population Voluntary recession on young people (under 30 years
Unavailable
between 15 needs to be
NEETs
old (in UK under 24)). The unemployment
and 29 years addresed when NEETs rate for those under thirty is nearly double
who were not designing policies to the average rate.
inemployment, re-engage NEETs
education with
or training. the labour market or Opportunity
Disengaged
Seekers
with education.

14million
young people
aged between
15 & 29

26
 Risk Factors
WHAT IS THE RISK?

Those with low levels of education are three

times more likely to be NEET than those with
third-level education. Education Immigration Disability Divorce
Young people with a Young people with Those dedaring of Young people who
The risk is 70% higher for young people from low level of education immigration backround suffering some kind suffered the divorce of
an immigration background than nationals are 3 times more are 70% more likely to of disability are the parents are 30%
while having a disability likely to become NEET become NEET 40% more likely more likely to become
compared to otherrs compared to nationals. of becoming NEET NEET.
or health issue is also a strong risk factor. comapared to others.

Unemployment Household Income Location

HAving parents who Young people with Living in remote areas
experienced a low household increases probability of
unemployment increases income are more becoming a NEET
the probability of being likely to become up to 1,5 times.
NEET by 17% NEET than others.
Education is no safety either: in the EU, 10% of young people with a tertiary education have become NEET. In Austria,
Denmark, Germany, the Netherlands, Sweden and the UK, this drops to less than 6% of those with a tertiary education.
In Estonia nd Italy, however, 20% of those with a tertiary education end up as NEET- twice the EU average.

27
SIP GUIDE UK

WHAT IS THE RISK?

Those with low levels of education are three times more likely to be NEET than those with third-level education.
The risk is 70% higher for young people from an immigration background than nationals while having a disability or health issue is also a
strong risk factor.

Social Disengagement

Politics Disposition to vote Trust Social

40% òf non-NEETs NEETs are substantially NEETs have a lower Participation
are interested in less engaged in level of institutional Young non-NEETs
politics,compared politics; almost 65% trust compared to have a much higher
to 28.7% of NEETs declared a EETs general social
among NEETs. disposition to vote, participation rate
compared to more than than that of NEETs:
75% for non-NEETs. 46% against 26.7%.

28
 Reintegration

WHAT IS THE RISK?

PATHWAY TO EMPLOYMENT
EU Member States have tried a number of Measures to prevent Measures to reintegrate School-to-work transition Measures to foster employability and measures to
measures to prevent young people from early school-leaving early school-leavers pilicies remove practical and logistical barriers to employment
becoming NEET and to reintegrate those
who are NEETs. The involvement of a range measures that (training)
measures to
of stakeholders in the design and delivery measures that aim to get measures to measures
help groups
of youth employment measures is essential. intervene young people facilitate the that aim to
at a specific
before risk back into transition to enhance
In particular, a strong level of engagement factors occur education or employment young
disadvantage
in the labour
with employers and their representatives is training people’s
market
needed for measures that focus on fostering employability

their beneficiaries’ employability.

recognise that there are seek to provide timely intervene at a slightly are policy interventions that intervene closer to
Successful policies are innovative. They supports that can support for those later stage of the the labour market entry point. The former seek to
introduce new ways of reaching out to be provided within the who have just made pathway as their primary adress gaps in transversal and-job specific skills
school environement, at the decision to drop goal is to ease young and competences (as well as other labour market
their target groups, with outreach activities home or trough holistic out by encouraging people’s transition ‘from abilities and apritudes), while the latter aim to
forming an important part of efforts to support measures that and enabling them to learning to earning’ and address specific barriers faced by young people
can improve student’s continue their previous therefore to ensure that from vulnerable backrounds in particular
engage disfranchised young people, while chances of staying in studies or to find other, public investment in
incentives, ‘branding’ and marketing education or training more suitable training education and training is
alternatives maximised
campaigns can be useful in the context of
more universal youth employment services.
MEASURES

29
SIP GUIDE UK

SCOTTISH NEETS APRIL 2017

ILO UNEMLOYMENT LEVELS BY AGE-GROUP (16-64), SCOTLAND

Not Seasonly Adjusted
300

50-64 35-49 25-34 16-24

The NEET statistics feed into the Scottish 250
Government policy ‘Opportunities for
All’ , which is the Scottish Government’s
commitment to an offer of a place in learning 200
or training for every 16-19 year old (up to
their 20th birthday), with a specific focus on 150 31
young people not in education, employment 28 32
or training. It brings together a range of 16 35 age 50-64, 109%
existing national and local policies and 37 39 34 increase since 2008
100
strategies, including More Choices More 33 33
32 30 age 35-49, 5%
Chances and 16+ Learning Choices, as 22 34 increase since 2008

a single focus to improve young people’s 50 age 25-34, 8%

20
participation in post-16 learning or training. 55 73 61 64 decrease since 2008
age 16-24, 41%
0 32 decrease since 2008
Dec-Feb 2008 Dec-Feb 2014 Dec-Feb 2015 Dec-Feb 2016 Dec-Feb 2017

Source: Labour Force Survey, ONS

30
31
SIP GUIDE UK

2
C H A P T E R

THE SIP TRAINING

EXPERIENCE
IN SCOTLAND

32
33
SIP GUIDE UK

SOCIAL INNOVATION

WELCOME

Aim:
• To introduce/remind people about Social Innovation
• To assist people in determining whether this Social Innovation training course
will be suitable and of benefit
• To help and encourage people to decide to sign up

Today’s facilitators are:

Slide 1.2

34
AGENDA:
0.30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and scene setting
0.15 – 1.00 – Introduction and context
1.00 – 1.10 – Introduction to exercise
1.10 – 2.00 – Exercise - Creating
connections and shared understanding of
social innovation
2.00 – 2.15 – Break
2.15 – 3.00 – Exercise 2 - Exploring
conditions that enable social innovation to
flourish
3.00 – 3.15 – Feedback and next steps
3.15 – 4.00 – lunch/snack and networking
Slide 1.3
WHY?
Nearly all innovation policy is tailored to termediary bodies to match the supply of
the needs of traditional for-profit science new ideas to the demand for them. Fund-
and technology-based innovation. Howev- ing is patchy, and there are insufficient in-
er, meeting the economic and social chal- centives for public service managers to seek
lenges of the coming decades will increas- new and improved solutions.
ingly require fundamental improvements in
public services. Social innovation is critical
to this process.
Currently, the field of social innovation is
poorly understood. There are some great
practical examples from all over Europe to
show how localities can use innovative ap-
proaches to transform public services.
Social innovation is driven by having the
right strategies and organisations to marry
real social needs with new, workable ideas
Slide 1.4
to address them. But there are too few in
35
SIP GUIDE UK
WHY & WHY PERHAPS NOT?
Social innovations in one field can be spread
to other areas of public services provision.
Funding is important, but not the main driver,
and social innovation can occur anywhere
– even in areas without a long tradition of
‘thinking differently’. Most importantly, by
making changes to leadership, incentives
and funding, national governments could
rapidly transform a country’s ability to
innovate socially.
Innovation in public services can reduce
costs and improve performance. Social
innovations can take several forms. These
include public sector innovation within
public services, to improve performance
or save money, and innovation in the
non-profit or for-profit private sectors that
improves public services or provides new
ones. Social innovations from the third
sector (voluntary and community groups,
and social enterprises), may be ‘spun-in’ to
mainstream public services provision.
Slide 1.5
36
WHY PERHAPS NOT? important allies. Broker agencies like the
Young Foundation can cultivate and nurture
Insufficient understanding of the drivers social innovation. Their flexibility creates
of innovation. Social innovation has space for creativity, experimentation and
lacked systematic or strategic support and innovation, but they cannot substitute for
evaluation, unlike advanced technology, or the involvement of organisations with more
other areas of innovation. There is limited power and resources (often governments)
evidence on the drivers of social innovation, when the time comes for full-scale policy
although some have been identified (for development and implementation.
example, charismatic leadership and an
organisational culture that encourages
creativity and experimentation). However, to
date, the field has largely remained on the
‘fashionable margins’ of serious research.
A lack of intermediary bodies to
facilitate the growth and dissemination
of innovation. There are currently too few
intermediary bodies connecting the pull
and push of the social innovation system.
Correctly established, they can facilitate
flows of knowledge, resources and best
practice,5 and support organisational
growth – for example in mobilising
Slide 1.6
WHY PERHAPS NOT?
Fragile markets for the results of social
innovation
Social innovation, particularly in public
services provision, does not offer profit-led
investors the potential returns associated
with other innovative areas like advanced
technology. Until recently, this has meant
a lack of capital to fund growth in social
organisations, underdeveloped capital
markets to provide finance for social
entrepreneurs, and fragile markets for the
results of social innovation. Even the most
successful innovations are not guaranteed
reliable funders and purchasers.
Local social innovation is hidden in
traditional metrics and policy. Much
social innovation starts locally (grassroots,
practitioner, local authority leadership, local
champions). As a result, it can be hidden from
policymakers and researchers. Traditional
innovation metrics, rooted in the Frascati and
Oslo manuals were developed to measure
scientific and technological innovation in hi-
tech fi rms. The many intangible gains from
social innovation make such metrics largely
unsuitable measurement tools. Because
these metrics are so important in setting
and evaluating traditional innovation policy,
social innovation is often excluded from
mainstream policy development.
Slide 1.7
WHY PERHAPS NOT?
Government is often perceived as stifling
innovation. Although hard evidence is limited,
governments are generally perceived to be
risk-averse, and inherently more at ease with
bureaucracy, rules and regulations than an
open culture of experimentation, creativity
and innovation. Central policies can further
inhibit innovation. Specific targets may
provide pressure to innovate but they may
also squeeze out creativity; and risk may be
discouraged in a culture where few people
are promoted for successful risk taking, but
failures are quickly punished. Public sector
practices, such as audit controls, budget
criteria and recruitment policies, are not
designed to foster social innovation. Public
sector commissioners have little incentive to
adopt more innovative procurement models.
Recent steps have improved the social
innovation system. Some organisations
actively encourage social innovation. For
example, the NESTA-Young Foundation
Health Innovation Accelerator (HIA) tests
a new approach to supporting innovative
ventures in the management and funding
of long-term chronic health conditions. The
Innovation Exchange aims to support the
third sector’s capacity for innovation through
online resources that connect innovators
and investors, alongside providing more
traditional guidance and support. ‘Skunk
works’ – small units within or at arm’s
length from bigger agencies – are being
more widely used. Denmark’s MindLab and
the Communities of Practice that support
local government collaboration in the UK
are good examples.
Slide 1.8
37
SIP GUIDE UK
WHAT?
Social innovation seeks to create
transformational change which tackles
social problems and improves life for the
people who experience problems.
Social innovation most often uses what
some people call “combinatorial creativity”
- bringing together thinking, experience
and perspectives from a range of disciplines
to create new inspiration.
Social innovation is not only about
technology - although technology can be
transformational - it is more often about
changing the way that things are done,
particularly in the social sectors. It is also
about ingenuity - the ability to bring about
different, better results with the resources
we have to hand.
Many times community development is
combined with social innovation - bringing
together ‘people skills’ with creativity - to
develop solutions which can be tested and
adapted until they are replicable models.
Slide 1.9
38
WHAT?
Social innovation is about developing new
ideas to tackle social problems or meet
social needs. It may be a new product,
service, initiative, organisational model or
approach to the delivery of public services.
Some social innovations are modest and
incremental; others are systemic and
fundamental, such as the major shifts
required to move to a low carbon society.
Other examples include new services (like
NHS Direct in the UK) and new social
enterprises (like The Big Issue – a magazine
sold by homeless people in the UK).
Social innovation relates to a country’s
biggest problems, in its biggest sectors
Several of a country’s barriers to sustainable
growth, such as climate change or the
challenges of an ageing population, will
only be overcome through innovation.
In 21st century economies, the biggest
sectors are more often services than
traditional manufacturing. Indeed, in most
advanced economies, the biggest sector is
health.
Slide 1.10
UNDERSTANDING
• An inter-sectoral approach
• Are launched by a variety of actors,
including research institutions,
companies or independent
organisations
• Focuses on the process of innovation,
how innovation and change take shape
• Focuses on new work and new forms
of cooperation (business models),
especially those that work towards a
sustainable society.
Slide 1.11
CONDITIONS FOR SI TO FLOURISH
• Encourage
• Foster Connections, creativity and
generation of ideas
• Cultivate local solutions
• Create safe places
• Invest in social innovation
Slide 1.12
CONDITIONS FOR SCALING UP SI
Four conditions for scaling up social
innovation - Four conditions are essential
for non-govermental bodies to develop
sustainable and socially innovative products,
services and models on a large scale:
• Demand for innovation generated by
real social needs – the ‘pull’.
• A supply of workable (and
communicable) ideas – the ‘push’.
• Connecting the two with the right
organisational form.
• Ongoing organisational ability to learn
and adapt to the evolving external
environment.
Slide 1.13
PHASES IN SI LIFECYCLE
Phase 0: The ‘latent’ stage, normally
a period of underperformance before
innovation occurs.
Phase 1: A strategy and process for
innovation is developed in the ‘design and
discovery’ phase, often prompted by a crisis.
Phase 2: A period of ‘mobilisation’,
generating new structures and teams to pilot
innovative ideas and start implementing
innovations.
Phase 3: Innovation then enters the
‘mainstream’, when it becomes routine
as ideas and working practices are
consolidated.
Phase 4: Finally, ‘embedding’ – the value of
the innovation grows; systemic innovation
may occur if the locality can replicate
innovation in other services.
An innovation will not automatically
progress to the next stage – at each point
of transition the process may fail or reverse.
Slide 1.14
39
SIP GUIDE UK
DRIVERS AND ENABLERS
When a public service is failing or in crisis,
recognition of underperformance is
a primary driver of innovation. External
agencies like the Audit Commission or
Ofsted can force this on a locality. Pressure
may also come from the public, media or
business. This then legitimises action by
internal and external stakeholders.
Pressure to change is not a sufficient
condition alone for innovation.
Strong leadership is required to initiate
change and encourage a responsive
organisational culture that supports
risk taking and creativity from senior
management and frontline staff. Networks
collaborate to facilitate innovation. The
capacity to mobilise resources reinforces
change. Reflective learning and public
feedback help maintain momentum.
Visibly creating results for the public builds
legitimacy.
Slide 1.15
40
In each phase, these factors interact
differently and require different emphases
from would-be leaders of social innovation.
SOME EXAMPLES
• Innovation in public services
• Social entrepreneurship
• Open source
• On-line volunteering
• Microfinance
• Socially responsible investing
• Habitat conservation plans
Slide 1.16
EXERCISE 1 - CREATING CONNECTIONS
AND SHARED UNDERSTANDING OF
SOCIAL INNOVATION
• Working in groups
• You’ll be handed cards
• Write down as many examples you can
think of that are social innovation – name,
organisations involved, brief description.
These can be from [own country] or from
other countries
• Note at what stage of the SI process they
are at (from prompt to system change)
• Mark with a tick in the relevant quadrant
to indicate whether the SI is public/
private, open/closed
Slide 1.17
 EXERCISE 1 - CREATING CONNECTIONS
AND SHARED UNDERSTANDING OF
SOCIAL INNOVATION

Name of si Orgns involved

Description

Stage How social

Proposal

In what way is it social?

Prompt
What stage is it at?

Prototype Social
Ends
purpose

Means
System
Sustain Change

Scale Slide 1.18

Closed/expert process

41
SIP GUIDE UK

EXERCISE 2 - EXPLORING CONDITIONS EXERCISE 2 - EXPLORING CONDITIONS

THAT ENABLE SOCIAL INNOVATION TO THAT ENABLE SOCIAL INNOVATION TO
FLOURISH FLOURISH

• Working in different groups Why the example is Social Innovation Why needed?

• You’ll be handed the cards back

• Read the cards and look at the Social

Innovation listed and description

• On the reverse of the cards note why it

is social innovation and why it is needed
Opportunity to adopt?
• Mark whether you think the SI has the Opportunity to adapt?
opportunity to be adopted (if from a Opportunity to scale up?
different country or sector), adapted
(changed to work with a different issue Yes No Maybe
or target group) or scaled up

Slide 1.20 Slide 1.21

42
FEEDBACK AND WRAP UP PLEASE
• Please feed back on examples of Social
Innovation presented
• Are there any of these that could work
for you?
• Do you think that there are still gaps
and how could these be overcome?
• Can you think of other Social Innovations
you could develop?
Slide 1.22
FURTHER INFORMATION AND NEXT
STEPS
If you’d like to find out more about the Social
Innovation programme and be considered
to be a delegate please speak to your
facilitators or contact:
Slide 1.23
43
SIP GUIDE UK

IDEATION & BUSINESS MODEL CANVAS

WELCOME

Aim:
• To help people develop on hone business ideas
• To assist people to be able to move to the next stage

Today’s facilitators are:

Slide 1.2

44
AGENDA:
0.30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and scene setting
0.15 – 0.30 – Introduction and context
0.30 – 0.35 – Introduction to exercise 1
0.35 – 1.15 – Exercise 1 – Brain writing/
Brain walking
1.15 – 1.20 – Introduction to Exercise 2
1.20 – 2.00 – Exercise 2 - Problem Re-
Definition
2.00 – 2.15 – Break
2.15 – 3.00 – Introduction to Business
Model Canvas
3.00 – 3.15 – Feedback and next steps
Slide 1.3
WHAT IS BUSINESS IDEATION?
DEFINITION of ‘Ideation’ –
The process of forming and relating ideas.
Ideation means to conceive or generate an
idea and implement it. Ideas are the result
of mental activity that can be based on past
or present knowledge, thoughts, opinions,
convictions or principles.
BREAKING DOWN ‘Ideation’ –
Ideation means to conceptualiSe an idea.
It is the thought processes involved in ap-
prehending and expressing a new concept,
often in a graphical format.
45
SIP GUIDE UK
EXERCISE 1 – BRAIN WRITING/ BRAIN
WALKING
• As its name implies, Brainwriting uses
writing as its creative modus operandi,
where it differs is we want people on
their feet
• Each participant writes down an idea
(or ideas) they would like the group to
consider on a piece of flip chart paper
posted on the wall
• People walk round the room and add
comments to the initial idea to
a) trigger a build-on the original idea or
b) trigger an entirely new idea.
• Ideas end up being posted around the
room for everyone to see and read. It’s
reinforcing for participants to see so
many ideas generated in such a short
time. Also, participants can continue to
read and add throughout the session
(during breaks) and building on these
ideas
• mainstream public services provision.
Slide 1.5
46
FEEDBACK FROM EXERCISE 1
• What additional thoughts have been
generated by the other participants?
• Who is willing to support the person
where the idea originated to develop
this further?
Slide 1.3
EXERCISE 2 – PROBLEM REDEFINITION
What Is It?
• The Problem Re-Definition Technique
helps you invent new ways of looking
at a problem -- and ultimately come up
with other, even better answers -- by
first, re-defining that problem.
Rationale:
• Words carry with them their own creative
limitations. How a problem is defined
will often determine the kind and quality
of ideas that will be generated to solve
it. The problem re- definition technique
allow individuals to create 100’s of
different ways to define a problem... and
therefore helps you generate potentially
100’s of different ideas to solve that
problem.
Slide 1.7
EXERCISE 2 – PROBLEM REDEFINITION
Step 1: Working in groups, start with an
opportunity/problem statement, or creative
challenge. You can take one of the ones
from exercise 1 and (if not already done)
develop this into a “How do we.................”
statement.
Step 2: Write this creative challenge on a
flip chart in the group.
Step 3: Brainstorm alternatives words and
actions
Step 4: Next, pick three of the more
interesting words in the sentence and
generate creative alternatives (8 to 10) for
each choice.
Step 5: Re-define the opportunity by
randomly combining words to give us an
entirely new opportunity statement.
the Communities of Practice that support
local government collaboration in the UK
are good examples.
Slide 1.8
FEEDBACK FROM EXERCISE 2
• What additional thoughts have been
generated by the other participants?
• Are there creative alternatives for the
original ideas/statements?
Slide 1.9
THE BUSINESS MODEL CANVAS
• The Business Model Canvas, is a strategic
management and entrepreneurial tool. It
allows you to describe, design, challenge,
invent, and pivot your business model.
• The Business Model Canvas is a lean
startup template for developing new or
documenting existing business models. It
is a visual chart with elements describing
a firm’s or product’s value proposition,
infrastructure, customers, and finances.
It assists firms in aligning their activities
by illustrating potential trade-offs.
• It is your business model – on one page
• The Business Model Canvas can be
printed out on a large surface so groups
of people can jointly start sketching and
discussing business model elements with
post-it note notes or board markers. It is a
hands-on tool that fosters understanding,
discussion, creativity, and analysis.
• The Business Model Canvas is also
available in web-based software format.
Slide 1.10
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SIP GUIDE UK

IDEATION & BUSINESS MODEL CANVAS

DESIGNED FOR: DESIGNED BY: DATE: VERSION:

KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS

KEY RESOURCES CHANNELS

COST STRUCTURE REVENUE STREAMS

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48
THE BUSINESS MODEL CANVAS
Infrastructure
Key Activities: The most important activities
in executing a company’s value proposition.
An example would be creating an efficient
supply chain to drive down costs.
Key Resources: The resources that are
necessary to create value for the customer.
They are considered an asset to a company,
which are needed in order to sustain and
support the business. These resources
could be human, financial, physical and
intellectual.
Partner Network: In order to optimize
operations and reduce risks of a business
model, organization usually cultivate buyer-
supplier relationships so they can focus on
their core activity. Complementary business
alliances also can be considered through
joint ventures, strategic alliances between
competitors or non-competitors.
Slide 1.13
Offering
Value Propositions: The collection of products
and services a business offers to meet the
needs of its customers. A company’s value
proposition is what distinguishes itself from its
competitors. The value proposition provides
value through various elements such as
newness, performance, customization,
“getting the job done”, design, brand/
status, price, cost reduction, risk reduction,
accessibility, and convenience/usability.
The value propositions may be:
• Quantitative- price and efficiency
• Qualitative- overall customer experience
and outcome
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SIP GUIDE UK
THE BUSINESS MODEL CANVAS
Customers
Customer Segments: To build an effective
business model, a company must identify
which customers it tries to serve. Various
sets of customers can be segmented based
on the different needs to ensure appropriate
implementation of corporate strategy meets
the characteristics of selected group of
clients, including:
Mass Market: There is no specific
segmentation for a company that follows the
Mass Market element as the organization
displays a wide view of potential clients.
Niche Market: Customer segmentation
based on specialized needs and
characteristics of its clients.
Segmented: A company applies additional
segmentation within existing customer
segment. In the segmented situation, the
business may further distinguish its clients
based on gender, age, and/or income.
Diversify: A business serves multiple
Slide 1.15
50
customer segments with different needs and
characteristics.
Multi-Sided Platform / Market: For a
smooth day-to-day business operation,
some companies will serve mutually
dependent customer segment. A credit
card company will provide services to credit
card holders while simultaneously assisting
merchants who accept those credit cards.
Channels: A company can deliver its value
proposition to its targeted customers through
different channels. Effective channels will
distribute a company’s value proposition in
ways that are fast, efficient and cost effective.
An organisation can reach its clients either
through its own channels (store front),
partner channels (major distributors), or a
combination of both.
Customer Relationships: To ensure the
survival and success of any businesses,
companies must identify the type of
relationship they want to create with their
customer segments. Various forms of
customer relationships include:
Personal Assistance: Assistance in a form
of employee-customer interaction - during
sales, after sales, and/or both.
Dedicated Personal Assistance: e.g. where
a sales representative is assigned to handle
all the needs and questions of clients.
Self Service: The type of relationship that
translates from the indirect interaction
between the company and the clients. Here,
Slide 1.16
an organisation provides the tools needed
for the customers to serve themselves easily
and effectively.
Automated Services: A system similar to
self-service but more personalised as it has
the ability to identify individual customers
and his/her preferences. E,g. Amazon.com
making book suggestion based on previous
books purchased.
Communities: Creating a community allows
for a direct interaction among different
clients and the company. The community
platform produces a scenario where
knowledge can be shared and problems are
solved between different clients.
Co-creation: A personal relationship is
created through the customer’s direct input
in the final outcome of the company’s
products/services.
Finances Economies of Scope - Costs go down due to
Cost Structure: This describes the most incorporating other businesses which have
important monetary consequences while a direct relation to the original product.
operating under different business models.
Classes of Business Structures:
• Cost-Driven - This business model
focuses on minimizing all costs and
having no frills.
• Value-Driven - Less concerned with cost,
this business model focuses on creating
value for their products /services.
Characteristics of Cost Structures:
• Fixed Costs - Costs are unchanged across
different applications. e.g. salary, rent
• Variable Costs - These costs vary
depending on the amount of production
of goods or services. e.g. music festivals
• Economies of Scale - Costs go down
as the amount of good are ordered or
produced.
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SIP GUIDE UK

THE BUSINESS MODEL CANVAS FEEDBACK AND WRAP UP

Revenue Streams: The way a company There are many ideation tools. We have
makes income from each customer segment. used 2. Please feel free to try these with
Several ways to generate a revenue stream: friends and colleagues
Asset Sale - (the most common type) The business model canvas is used by many
Selling ownership rights to a physical good. business support agencies as it shows the
e.g. Wal-Mart prescient factors concerning a business.
Usage Fee - Money generated from the Please take away a copy and work on this
use of a particular service e.g. UPS
Subscription Fees - Revenue generated by
selling a continuous service. e.g. Netflix
Lending/Leasing/Renting - Giving
exclusive right to an asset for a particular
period of time. e.g. Leasing a Car
Licensing - Revenue generated from
charging for the use of a protected
intellectual property.
Brokerage Fees - Revenue generated from
an intermediate service between 2 parties.
e.g. Broker selling a house for commission
Advertising - Revenue generated from
charging fees for product advertising.
a direct relation to the original product.

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52
53
SIP GUIDE UK

INTRODUCTION TO MARKETING, BRANDING AND

SOCIAL MEDIA

WELCOME

Aim:
• To introduce attendees to the concepts of marketing, banding and social media
• To equip attendees with knowledge and tools to develop their own social brand,
marketing campaign and social media strategy

Today’s facilitators are:

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54
AGENDA:
0.30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and scene setting
0.15 – 1.00 – Modules 1: Introduction to
non-profit Marketing
1.00 – 1.30 – Exercise 1: a working
example
1.30 – 1.45 – Break
1.45 – 2.30 – Module 2: Introduction to
Branding
2.30 – 2.50 – Exercise 2: Case study
Amnesty International
2.50 – 3.00 – Break
3.00 – 3.45 – Module 3: Introduction to
Social Media
3.45 – 4.00 – Feedback and next steps
INTRODUCTION TO NON-PROFIT Generally, the “customer” gives his
MARKETING money to the organisation in exchange
for the opportunity to contribute towards
• Definition: ‘The use of marketing tactics its philanthropic work. In some cases,
to further the goals and objectives of non-profit organisation sell products or
non-profit organisations’. services in order to support their social
work.
• A practical definition of marketing which
suits non-profits is: ‘meeting customer
needs within the objectives of the organ-
isation’.
• Non-profit marketing includes adver-
tising, promotion, public relations, and
customer relationship management.
• The purpose of marketing is to build
awareness of an issue and to gain finan-
cial support from the public for its cause.

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55
SIP GUIDE UK

MARKETING PLANNING FOR NON

PROFITS

Marketing strategies are quite beneficial for

an organisation to effectively market itself.
Things to consider:
• Target market - develop a picture of the
person most likely
• to support you in your cause and create
promotion and advertising around that
target.
• Branding – we’ll talk about branding in
the next module.
• Offline practices - typical marketing
practices by a non-profit organisation
include large and small-scale events,
print materials, alliances and networking.
• Online practices – such as websites,
e-mail communications, social media.
• Public relations - non-profits are
beneficial for individual groups of people,
but they also benefit the community.

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56
HOW TO CREATE A MARKETING PLAN? DESIGNING THE MARKETING MIX

• Here is a step by step guide to writing a Marketing mix - Putting the right product
marketing plan for your organisation in the right place, at the
Product
right price, at the right time.
• The executive summary The 4 (7)Ps that are essential to the
marketing mix:
• The challenge
• Product
• Situation analysis Marketing
Price Place
• Price Mix
• Market segmentation
• Promotion
• Alternative marketing strategies
• Place
• Selected marketing strategy
Promotions
• People
• Short and long-term projections
• Physical evidence
• Conclusions
• Processes

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SIP GUIDE UK

EXERCISE 1: A WORKING EXAMPLE empowerment of the residents or care MODULE 2: INTRODUCTION TO

for the residents. BRANDING
A practical example of the marketing mix in Duration: 30 minutes.
action might be as applied to a residential
home for older people. To be effective you
need to decide the following details:
• what service you are delivering, for
example whether or not you welcome
people with dementia
• the price you are going to charge Branding is the expression of the
• how you are going to advertise and essential truth or value of an
promote the home organisation, product, or service. It is
• where you are going to build it or buy it communication of characteristics,
• how you are going to recruit and train values, and attributes that clarify what
your people i.e. the staff this particular brand is and is not.
• what features (physical evidence of
quality) the home is going to have, for
example en-suite with bath and shower
• what processes you will set up to make
it easy for people to try out your home,
claim state benefits to help with payment,
make the payments etc.
• the philosophy you will be adopting,
for example is it primarily one of

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58
WHY SHOULD SOCIAL INNOVATORS WHAT MAKES A BRAND SUCCESSFUL?
INVEST IN CREATING A BRAND?

• Differentiation – what distinguishes your

• To drive impact non-profit from other organisations
doing similar work?
• To guide behaviour
• Credibility - before someone makes that
• Can be a fundraising tool online donation or steps up to volunteer
Differentiation Credilility
their time, they have to believe that your
• To tighten organizational cohesion organisation has the ability to deliver on
its promise.
• To provide social credentials
Authenticity
• • Authenticity – get people to identify and
care about your cause.

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59
SIP GUIDE UK

WHAT ARE THE BENEFITS OF GOOD WHAT ARE SOME GREAT NON-PROFIT
BRANDING? BRANDS?

• Connectivity - a good brand connects What makes them great?

an organisation’s staff, board members
and core thinkers to their donors and the • Clear sense of who they are
community.
• Are disciplined and focused
• Donors - a good brand showcases
exactly what an organisation does better • Tell good stories
than its peers.
• Internally and externally aligned
• Pride - a good brand creates unity and a
sense of pride, which drives your powerful • Stakeholders have tools, room to deliver
thinkers and doers to brainstorm harder
and work stronger. • Consistently meet or exceed expectations

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60
CREATING YOUR BRAND EXERCISE 2: CASE STUDY AMNESTY HOW TO DEVELOP A SOCIAL MEDIA
INTERNATIONAL STRATEGY

• Carry out market analysis
• Identify your target audience
• Analyse current provision
• Identify unique attribute about your
brand
• Develop brand concept
• Visualise your brand concept
• Positioning
• Genesis of brand
• Choose a name
• Design logo
Read and discuss the Amnesty International
case study Branding an Organization That’s
Also a Movement.
In teams of 5 deliberate on what their brand
means to you, what you think of their logo,
colours, etc.
Duration: 20 minutes.
• Define social’s role in your
communications strategy
• Determine what you want to accomplish
• Identify your target audience
• Choose the right networks
• Create a content strategy
• What to Share
• Types of content
• Posting frequency
• Build engagement
• Track & measure your results

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61
SIP GUIDE UK

FEEDBACK AND WRAP UP FURTHER INFORMATION AND NEXT

STEPS

• Please feed back on the theory and If you’d like to find out more about the Social
examples/exercises presented Innovation programme and be considered
• Is there anything else that you would to be a delegate please speak to your
have liked us to cover facilitators or contact:

Slide 1.19 Slide 1.21

62
63
SIP GUIDE UK

LEGAL STRUCTURE & ADMINISTRATION

WELCOME

Aim:
• To help people decide on the right legal structure based on what the
organisation will do
• To consider the adminstrative processes necessary

Today’s facilitators are:

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64
AGENDA:

0.30 – 0.00 – Arrivals and refreshments

0.00 – 0.15 – Welcome and scene setting
0.15 – 1.45 – Legal Structures
1.45 – 2.00 – Break
2.00 – 3.00 – Introduction to
administration
3.00 – 3.15 – Feedback and next steps

WHAT IS BUSINESS IDEATION?

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65
SIP GUIDE UK
LEGAL STRUCTURES - OVERVIEW
You must choose a structure for your
business. This structure will define your
legal responsibilities, like:
• which authorities you have to notify that
your business exists
• the tax and National Insurance that you
pay
• the records and accounts that you have
to keep
• your financial liability if the business runs
into trouble
• the ways your business can raise money
• the way management decisions are
made about the business
You can change your business structure after
you’ve started up if you find a new structure
suits you better.
Slide 1.4
66
LEGAL STRUCTURES - CHARITY
A charity is a voluntary organisation which has been set up only for
charitable purposes and to provide a public benefit.
Only around half of Scotland’s voluntary organisations are charities. If you are
thinking of registering as a charity, you should consider whether this is right for
you and look at the advantages and disadvantages associated with charitable
status. Look carefully at the particular circumstances of your organisation and
decide whether it is the right option for you.
Advantages Disadvantages
• Tax relief on surpluses and • Restrictions on spending
donations • Cannot engage in party political
• Access to funding only available activities
to charities • Must adhere to legislation
• Rates relief for premises • Trustees have specific duties
• Special VAT concessions under legislation
• All charities must submit an
annual return and accounts to
OSCR every year and seek their
permission to make certain
changes.
Slide 1.5
LEGAL STRUCTURES – CHARITY (2)
To be a registered charity in Scotland, an
organisation must register with the Office of
the Scottish Charity Regulator (OSCR) having
met the charity test. To meet the charity test,
an organisation must have only charitable
purposes and must provide public benefit in
Scotland or elsewhere. In addition it must:
• not allow its property to be used for non-
charitable purposes
• must not allow Ministers to direct or
otherwise control its activities
• must not be a political party, and not
have as its purposes the advancement of
a political party
Slide 1.6
LEGAL STRUCTURES – CHARITY (3)
Once you have decided on charitable
status you will also have to choose a legal
structure. The following are the main legal
forms that Scottish charities can take:
• Scottish Charitable Incorporated
Organisation (SCIO)
• Voluntary or Unincorporated association
• Company limited by guarantee
• Trust
Other forms include statutory and royal
charter corporations, industrial and provident
societies and educational endowments.
Slide 1.7
LEGAL STRUCTURES – SCIO
A Scottish Charitable Incorporated
Organisation is a legal structure which
has been purpose built for the charity
sector in Scotland. It provides limited
liability and a separate legal identity
to organisations that want to become
charities but do not want or need the
complex structure of company law.
This means that even the smallest
charity can access the benefits of
incorporation – including limited
liability and legal capacity.
It is only available to charities with a
principal office in Scotland and is regulated
by OSCR and subject to the Charities and
Trustee Investment Act (Scotland) 2005.
There are two structures available for the
SCIO, two tier and single tier.
The two tier structure is similar to that of a
voluntary association and a company limited
by guarantee where it is the membership of
the organisation that appoint trustees and
have decision making powers.
The single tier structure is similar to a trust
in that the trustees appoint new trustees
and don’t have to answer to a wider body.
Both structures require at least two members
(in the single tier SCIO the members and
the Trustees are the same people) and must
have at least three trustees.
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67
SIP GUIDE UK
LEGAL STRUCTURES – SCIO (2)
There is no standard format for a SCIO
constitution, but some basic elements are
required:
a SCIO should have two or more members
and three trustees (in the case of a single tier
SCIO the members can also be the trustees)
it should have the name, purposes, a
registered office in Scotland, and include
any restrictions on powers
it should list meeting procedures (convening,
recording, quorum, voting, resolution)
it should list membership rules (eligibility,
appointment, withdrawal) and trustee rules
(appointment, withdrawal, remuneration
restrictions, conflict of interest).
it should list the purposes for which surplus
assets may be used on dissolution
Charitable status?
A SCIO can only be a charity. OSCR is the
regulator of a SCIO’s legal form, not just its
charitable status. Removal from the Register
equals dissolution.
Slide 1.9
68
Advantages
• Provides the key benefits of becoming a
company, such as a defined legal entity and
limited liability whilst removing some of the
associated burdens.
• Can hold property, enter into leases and
other contracts, employ people, etc, in its own
name. • Members are subject to some of the same
• Less administration – no requirement to
notify any regulator about appointments or
resignations of board members
• Unlike company law, where the volume of
legislation and case law can be overwhelming,
the law relating to SCIOs is self-contained and
very manageable.
• It provides creditor protection and reassurance
for those entering into contracts.
• Only needs to be registered with OSCR, unlike
a charitable company, which also needs to
register with Companies House. • Cannot convert or amalgamate with non-
• Is subject to the same accounting thresholds as
unincorporated charities, so may not have to
produce fully accrued accounts.
• Generally regarded by funding bodies and
public agencies as a more ‘stable’ structure
than a voluntary association.
Disadvantages
• Existence is dependent upon charitable
status. Loss of charitable status would mean
that the SCIO would cease to exist.
• Some changes must be notified to OSCR,
and some require prior consent, eg change
of name or charitable purposes.
duties as charity trustees, specifically, they
must act in the interests of the SCIO, and
seek, in good faith, to ensure the SCIO
acts in a manner which is consistent with its
charitable purposes.
• There is a duty to keep and supply a
register of charity trustees and members (if
an organisation has a lot of fluidity in its
membership eg a Student Union, a SCIO
may not be the most appropriate legal
form).
SCIO, though assets can be transferred to a
non-SCIO charitable organisation.
Slide 1.10
LEGAL STRUCTURES – INCORPORATED
ORGANISATION
A company is a membership
organisation formed and registered
under the provisions of the Companies
Acts. It is incorporated and benefits
from limited liability for its members.
Charitable Incorporated Organisation? This
is a corporate body which provides limited
liability for its members and is suitable for
organisations that want to become charities,
but do not want or need the complex
structure of company law.

It’s a structure that can be chosen by

voluntary organisations that employ staff,
regularly enter into contracts, manage
investments, and/or own property and
other assets, because limited liability helps
to minimise the threat of personal liability
for the directors.
It is regulated by Companies House and
subject to the Companies Acts and other
legislation. If a company is charitable then it
will be subject to charity law and regulated
by OSCR as well.
If you are considering this structure and
are planning to apply for charitable status,
why not consider setting up as a Scottish

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SIP GUIDE UK

LEGAL STRUCTURES – INCORPORATED ORGANISATION

Advantages Disadvantages

• It’s a private limited company that has guarantors rather than • There are formal registration procedures to be followed in relation
shareholders, so it’s suitable for voluntary organisations. The members to creating a company, in addition to the process of applying to be
agree to pay a fixed amount  known as a guarantee (usually £1) recognised as a charity, unlike with a SCIO which needs only to be
towards the company’s debts if it goes into liquidation. registered with OSCR.

• The company is a clear legal entity, separate from the persons involved in • There is an ongoing requirement to notify a change in directors, a
it – and can hold property, enter into leases and other contracts, employ change in the company secretary, or a change in the registered office
people, etc, in its own name. It doesn’t matter if the directors change to Companies House. Similarly, annual accounts and annual returns
because it is the company and not the directors that hold title to land, have to be filed. If a charitable, a company must also file an annual
enter into contracts, etc, but changes must be notified to Companies return with OSCR, and notify or seek prior consent from OSCR before
House. making certain changes.

• A company is generally regarded by funding bodies and public • There are various statutory requirements which have to be followed in
agencies as a more ‘stable’ structure than a voluntary association relation to members’ meetings etc.

• A company structure may be more intimidating for those considering

whether to join as members or put themselves forward for election to
the board of directors.

• Set up costs can be higher than for a voluntary association or trust; and
annual costs are higher, particularly if there is an external company
secretary and/or if a formal audit is required.

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70
LEGAL STRUCTURES – TRUST
A trust is usually set up where assets
(eg property, investments) are given by
one person (the Donor) to another (the
Trustees) with the intention that is should
be applied for the benefit of a third party
or the public (the Beneficiary). Once this
occurs, the trustees own the asset, but
can only apply it in accordance with the
trust for the benefit of the beneficiaries.
A trust is not regulated by an external
regulator (unless it is a charity), but is subject
to various legislation, eg Trusts (Scotland)
Acts 1921 and 1961 If it is charitable it will
be subject to charity law and regulated by
OSCR.
If you are considering setting up as a Trust
and are planning to apply for charitable
status, why not consider setting up as a
single-tier Scottish Charitable Incorporated
Organisation? This is a corporate body which
provides limited liability for its trustees and
Slide 1.13
is suitable for organisations that want to Disadvantages
become charities, but do not want or need
the complex structure of company law. • Although the law gives greater recognition to the
trust (as compared with a voluntary association)
as having some form of identity , it is still not
Advantages a full legal “entity” in the way that a SCIO or
company limited by guarantee is.
• Little or no set up costs. • Leases/formal contracts have to be entered into
• Less administration than a voluntary association, in names of trustees. Each time one of these
SCIO, company limited by guarantee or IPS, since individuals leaves, the assets must be legally
there is no register of members to maintain, no transferred to another. The same goes for any
collection of subscriptions, etc. legal arrangements the trust has entered into in
• No formal registration requirements unless this way.
a charity, which will be accountable to • Legal proceedings cannot be taken by the trust
OSCR. but only by individuals representing it. Similarly,
• No detailed statutory procedures to be followed legal proceedings would be taken out against
in relation to members’ meetings, etc. individuals rather than the organisation.
• Useful if you want to retain control • Trustees could be personally liable for debts if
amongst  a small body of people with no the organisation were unable to meet its debts
external membership. and liabilities out of its own resources.
• No requirement to notify changes in trustees to • There is no concept of accountability to a wider
any public register nor any  requirement to file membership or to partner bodies/agencies.
accounts unless a charity.   In particular a trust could not hold meaningful
• Likely to be less intimidating than a AGMs since no one other than the trustees
company  limited by guarantee or IPS for themselves would have voting rights.
those considering whether to participate in • Could be seen as “less professional” in the eyes
decision making. of potential funders.
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SIP GUIDE UK

LEGAL STRUCTURES – COMMUNITY
INTEREST COMPANY
A CIC cannot be a registered charity.
Community Interest Companies (CICs) are
limited companies, with special additional
features, created for the use of people who
want to conduct a business or other activity
for community benefit, and not purely for
private advantage.
Slide 1.15
enterprises. They define a co-operative as:
A group of people acting together to meet
the common needs and aspirations of its
members, sharing ownership and making
decisions democratically.
If a co-operative’s membership is closed or
restricted, and profits are divided amongst
the members, then it cannot be a charity.
Slide 1.17
LEGAL STRUCTURES – INDUSTRIAL AND
PROVIDENT SOCIETIES
community. Only those set up for the benefit
of the community, and not members, will be
eligible for charitable status.
The IPS offers the benefit of limited liability,
but the incorporation procedure can be
expensive and time-consuming, and few
professional advisers will be familiar with
the regime for such societies.
Industrial and provident societies are
registered with the Financial Services
Authority and are regulated by the FSA
under a regime which is similar to that for
registered companies.

LEGAL STRUCTURES – COOPERATIVE The industrial and provident society

A co-operative is an association or
corporation established for the purpose of
providing services on a nonprofit basis to
its shareholders or members who own and
control it.
Co-operatives UK is a national trade body
that campaigns for co-operation and works
to promote, develop and unite co-operative
represents a halfway house between a
registered company and an unincorporated
association. It has rules of association in
much the same way as an unincorporated
association, yet it is an incorporated body
with the benefit of limited liability. To qualify
for registration as an IPS a body must either
be a co-operative society for the mutual
benefit of members, or for the benefit of the

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72
FINANCIAL AND BUSINESS
ADMINISTRATION
Financial & business management
• information on financial responsibilities
for charities and business planning
• Legislation & regulation
• the legal procedures and licences you
need to be aware of
• Good Governance
• information for the people in management
and control of your organisation
• Managing staff & volunteers
• resources to help you with HR issues
Slide 1.19
FINANCIAL AND BUSINESS • Organisational development -
MANAGEMENT Organisational development is the name
given to interventions that aim to help an
Detailed information on a range of finance organisation to grow and change, such
and business topics, including financial as quality or performance improvement.
responsibilities for charities and how to get • Trading - Trading is an important source
the most out of your business planning. of funding for the third sector, but it can
expose your organisation to risk. So
• Bank accounts – many things to consider before you decide to trade, you need to
with choosing a bank account carefully consider a number of questions
• Charity accounts & financial reporting - and take advice.
Discover the best approach to financial
record keeping and reporting, when an
auditor is required and much more.
• Tax & VAT - Relevant headline information
on VAT, Corporation Tax, Capital Gains
Tax, Council Tax, business rates and
more. We’ll also point you to other
relevant sources of information.
• Business planning - Make business
planning a core activity for your
management committee or trustees and
your organisation will feel the benefit of
clear planning and goal setting.
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SIP GUIDE UK
LEGISLATION AND REGULATION
What legal procedures and licences do you
need to be aware of when running a social
innovation organisation?
• Fire safety -The Fire Safety Act places
responsibility for assessing risk to those
with control of any premises
• Music & film licensing - If you or people
using your facilities use music for the
benefit of customers, visitors or staff,
you need permission from the relevant
copyright owners
• Premises licensing - If you want to serve
alcohol, food, or provide entertainment
you will need to contact your local
authority to apply for a premises licence
• Food hygiene & catering - How to provide
food in a village hall or other community
setting
• Health & safety - It is the responsibility of
the voluntary management committee
to ensure the health and safety of
employees, volunteers and visitors
74
• Freedom of Information Act - Freedom
of Information is a valuable resource for
the voluntary sector
• Data protection - If you hold and
process information about your clients,
employees or suppliers, you are legally
obliged to protect that information
• Protection of Vulnerable Groups
(PVG) Scheme - The PVG Scheme is
a registration system for anyone who
carries out work (paid or unpaid) with
vulnerable groups in Scotland.
Slide 1.21
GOOD GOVERNANCE
Your trustees have a significant part to
play in your organisation. They are there
to oversee and take responsibility for
everything your organisation does. Being a
trustee is an important role and should not
to be taken on without an understanding of
what’s involved.
• Roles and responsibilities - Information
on who can be a trustee and what’s
involved. Find out about collective
responsibility, personal liability and the
difference between governance and
management.
• Recruitment & induction - Make sure
you’re clear about what’s involved in
recruiting trustees, as this will have an
impact across your whole organisation.
Once you’ve got them, make sure
they get a good introduction and a
comprehensive induction.
• Meetings - Running effective and efficient
meetings will help your organisation
Slide 1.22
 achieve its objectives. Find out how to
set an agenda and take minutes, and
ensure your trustees follow a Code of
Conduct.
• Developing your board - Your trustees
need to continually evolve and adapt.
In order to develop a problem solving
approach and ensure a long-term
future, you need to invest in training and
development for your trustees.
• Jargon buster - Clear descriptions of
common governance words and phrases.
• Third Sector Mediation - Don’t let things
get out of hand, get help to nip conflict
in the bud
Slide 1.23
MANAGING STAFF AND VOLUNTEERS
People are the central resource for any
third sector organisation whether they are
employees, volunteers or service providers.
With the huge range of employment
law, health and safety requirements and
confidentiality requirements, it can often
be a complex field for organisations to deal
with.
For more information see:
Gov.ukA government website with a
wide variety of advice notes on aspects
of employment law including contracts;
dismissal; health and safety; pensions;
recruitment and benefits. There is no tailored
individual advice line.AdviceguideScottish
specific advice on employee’s rights at work.
This is generally written for employees rather
than employers but is a useful resource.
Advisory, Conciliation and Arbitration
Service (ACAS)ACAS provides online advice
for many areas of employment law as well as
a conciliation service. They also provide an
automated advice service which can provide
more tailored advice for your enquiry.
Chartered Institute of Personnel and
Development (CIPD)The Chartered Institute
of Personnel and Development (CIPD)
is the world’s largest Chartered HR and
development professional body. While
membership based, they provide good
online HR resources including a number of
standard HR policies.
Health and Safety Executive in Scotland The
Health and Safety Executive in Scotland
and the related HSE UK website provide
a number of advice notes on good, legal
practice in ensuring employees’ health and
safety. They provide style risk assessments
for a variety of work places.
Equality and Human Rights Commission
in ScotlandThe Equality and Human Rights
Commission in Scotland provides legal
updates, advice and the standard Codes
of Practice for equal pay, employment and
services, as well as technical guidance on
how they are applied.
Information Commissioner - The Information
Commissioner provides good information
and style codes for businesses and how they
protect their employees’ privacy.
Slide 1.20
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SIP GUIDE UK

FEEDBACK AND WRAP UP

• Getting the right business model is not

always obvious – checks the advantages
and disadvantages of each
• No one said it would be easy running
an organisation – but there is plenty of
support

Slide 1.24

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SIP GUIDE UK

ACCESS TO FINANCE

WELCOME

Aim:
• To help people recognise how to fund the business
• To assist people with the tools to be investor ready

Today’s facilitators are:

Slide 1.2

78
AGENDA:

0.30 – 0.00 – Arrivals and refreshments

0.00 – 0.15 – Welcome and scene setting
0.15 – 1.15 – Introduction to funding and
investment
1.15 – 1.30 – Break
2.00 – 3.00 – Feedback and next steps

Slide 1.3

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ACCESS TO FINANCE
Your plans will need to be realistic and
achievable and your financial projections
will need to show that you can afford to
make repayments.
Most businesses that grow successfully, do so
by working out what they do well and doing
more of that. Performing a SWOT analysis
(strengths, weaknesses, opportunities,
threats) can help identify your strengths and
what opportunities are available. Identifying
threats can also avoid you growing the
business at the wrong time.
Before you attempt to raise finance from
external sources, you should carry out a
review of your cashflow management.
Most businesses can create efficiencies by
chasing up late payments, cutting costs or
renegotiating terms with suppliers.
If you still require funding after reviewing
your cashflow and performing a SWOT
analysis, you have a number of options:
Grants….................... bank
80
loan…...................personal funds or
investment from friends
equity finance…............asset based
finance…............crowd funding
A large variety of grants and support services
are available for companies with ambition
for growth.
ACCESS TO FINANCE (2)
Whether you’re starting up or growing your
business, before you approach anyone for
funding you should make sure that your
business is ready for financing.
You should consider:
• how much finance you need and for how
long
• which funding options are right for your
business needs
• how to make your business attractive to
investors
• how much of your own money you can
contribute to your start-up
Slide 1.5
• whether you can release money from
your business to fund growth
KEY POINTS TO CONSIDER
Is your business plan up to date? Most
investors and lenders will want to see your
business plan, to understand your vision
and explain how you’re going to spend the
invested or borrowed money.
Why do you need funding? For example,
do you need money to start your business,
acquire an asset, manage your cashflow or
grow your business?
How much funding do you need and
for how long? Some finance options,
such as overdrafts, are useful for day-to-
day expenses and improving cashflow for a
short period of time, while loans are more
suitable for long-term funding.
Can you afford the repayments?
Remember to consider the cost of interest,
fees and other charges associated with
Slide 1.6
loans.
Can you provide any necessary security?
Security can be any business or personal
asset, such as business premises, large
items of machinery or stock.
Are you prepared to give up a share of
your business to an investor? Consider
getting equity finance from business angels,
venture capitalists or friends and family.
MAKE YOUR BUSINESS ATTRACTIVE TO
FUNDERS:
Whatever type of funding you’re seeking,
you’ll be expected to have a business plan.
It should be one of the most useful tools for
helping you to manage your business.
You should also consider:
sales, profit and loss, and cashflow
forecasting
identifying potential risks and how you
might overcome them
a SWOT analysis to identify strengths,
weaknesses, opportunities and threats
Slide 1.7
When approaching investors, grant providers
or lenders you should have a well-rehearsed
presentation about your business, where
you are clear about your plans and goals,
as well as explaining what you need funding
for. You should be prepared to answer
detailed questions about your business.
MAKE YOUR BUSINESS ATTRACTIVE TO
FUNDERS (2)
In general, potential lenders and investors
will be looking for:
• ambitious but credible financial
information
• a strong management team
• good market knowledge
• a clearly-defined exit route
• evidence you can meet your repayments
in respect of any borrowing
Grant providers will also want to ensure
your business is a worthwhile investment,
that you meet their criteria and can achieve
your goals.
PREPARING FOR OUTSIDE INVESTMENT
Investors will want to ensure they’ll be
able to recover their investment and take
any profits. They’ll want to know what
your long-term plans are. They may place
greater emphasis on your business’ level of
ambition.
• Investors are likely to ask about:
• the type of products or services that your
business provides
• what distinguishes your business from
others in the same market
• any existing customers
Use the checklist on the next slide to help
you prepare for and find the right kind of
outside investment to help your business.
Use the headings on the subsequent slides
to help you prepare for and find the right
kind of outside investment to help your
business ???
Slide 1.10
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SIP GUIDE UK
PREPARING FOR OUTSIDE INVESTMENT
(2)
Your business:
• Research and decide whether your
business idea needs protected before
approaching an outside investor, eg
intellectual property protection.
• Identify what your business needs
investment for, how much you need and
for how long.
• Examine your existing finances. Are you
making the most out of resources you
already have? Have you considered
other sources of finance, like a bank
loan or personal savings?
• Identify why your business is a good
investment, and the growth potential of
your market.
• Identify your ‘value proposition’. What
value does your business add for
customers and investors to make them
buy or invest?
• Identify the skills and experience within
82
your business. How will you and any
employees work with an investor to
make the business grow?
PREPARING FOR OUTSIDE INVESTMENT
(3)
• Decide how much equity (shares) you’re
willing to offer, and how much control
you’re willing to give up.
• Get independent advice from a
professional (such as an accountant,
lawyer or business adviser) on the
benefits and risks of equity finance.
• Check your business plan states what
the benefits will be for the investor and
how your business will benefit from
equity finance. What will the investment
be used for? What will it achieve? Also
include details of the level of involvement
you expect from the investor and when
you would like them to exit from the
investment.
Finding and approaching investors
Slide 1.12
• Research the different types of equity
finance available, eg business angels,
venture capitalists and government-
backed sources.
• Identify the skills and experience your
business needs from an investor, eg their
marketing experience or access to their
business contacts.
PREPARING FOR OUTSIDE INVESTMENT
(4)
• Select investors who are a good match.
Consider what stage your business is at,
your market sector, how much you need
and the location of your business.
• Contact suitable investors by completing
an investor’s official application form or
forwarding the executive summary of
your business plan.
• Negotiations
• Calculate how much your business is
worth – or will be worth – including future
valuations to cover potential growth. You
Slide 1.13
 may need independent advice from an
accountant.
• Prepare a business presentation or ‘pitch’
for face-to-face meetings and investors.
• If asked, send your business plan to the
investor. Consider asking the investor
to sign a non-disclosure agreement to
protect your business idea.
• Prepare for final negotiations. These will
settle the terms and conditions of the
investment.
FUNDING FOR START UPS
To start a new business, you’ll need enough
money to cover both the start-up and early
stages, at least until your business starts
providing an income. You should prepare:
• a detailed business plan, identifying how
much money you need and when
• a realistic profit and loss forecast
covering a range of scenarios – many
new businesses forecast over-optimistic
sales
Slide 1.14
• a personal budget taking account of
personal living expenses that you’ll need
to fund from your business
FUNDING FOR START UPS (2)
XXXXXXX gives advice on working out your
profits and financial needs at the early
stages of your business.
Most people who start a new business will
have to use some of their own money, as
well as any funding secured from elsewhere.
There are benefits to self-funding your
business, including:
• having more control over your personal
and business finances
• not having to repay money
• making your business more attractive to
potential investors, by showing your own
commitment to making the business
succeed
FUNDING FOR GROWTH
If you need extra funds to finance business
growth, you should first review your
current performance and prepare detailed
business plans and cashflow forecasts. Any
potential funder will be looking for you to
demonstrate that your plans are realistic
and achievable, and that you have realistic
financial projections.
You may be able to self-finance your growth
objectives by releasing money from your
business. Improving your cashflow could be
one way of achieving this.
Slide 1.10
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SIP GUIDE UK

FUNDING CHECKLIST

QUESTION ANSWER

The problem you are trying to solve is clearly defined with a compelling business case

Do you have a fully written business plan for your project?

Have you clearly identified all known business constraints, including organisation capacity,
selected market limitations, technology, or other known (business) constraints?

Have you completed a feasibility study for your project?

Do you have a clear description of long-term objectives (beyond 5 years), why they are
needed, timeframe to achieve is provided?

Roadmap, project plan, phases developed to manage the project to reach objectives and
sustainability

Do you have finances in place to fully fund your project objectives?

84
FUNDING CHECKLIST (2)

QUESTION ANSWER

If not fully funded, do you have a plan in place to target creditors or investors for financing
capital?
If appropriate, have you completed a pricing analysis for your product or services?

Key metric or set of measures are identified to determine success of the project (may be the
same as measurement of success of the social impact)

Known issues that may impede the project have been identified; frequency, severity, and
probability factors have been determined (or estimated)

If appropriate, have you documented a manufacturing plan, including sourcing of materials?

Roadmap, project plan, phases developed to manage the project to reach objectives and
sustainability

If needed, do you have a distribution strategy clearly documented?

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SIP GUIDE UK

FUNDING CHECKLIST (3)

QUESTION ANSWER

Have you identified any partners or suppliers needed for you project?

Do you have an overall marketing strategy for your project?

Have you clearly identified all known business constraints, including organisation capacity,
selected market limitations, technology, or other known (business) constraints?

Do you have a public relations plan for your project?

Breadth and depth of experience for founders / advisors provided; previous project success
noted for all or most key team members

Are the required team members identified, on board, and fully integrated into your project?

Do you have the right experience for your target industry and/or target region?

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FEEDBACK AND WRAP UP

• There are various forms of funding available, some of which involve giving up a stake in your organisation
• Use the checklist to make sure you have the right things in place

87
SIP GUIDE UK

IMPACT MEASUREMENT

WELCOME

Aim:
• Look at why you need to measure impact (especially social impact) and look at
sme of the tools available

Today’s facilitators are:

Slide 1.2

88
AGENDA: IMPACT MEASUREMENT as divergent thought and disagreement.
• Are there common threads to measure-
0.30 – 0.00 – Arrivals and refreshments Measurement of Social Impact matters. So- ment, and if so what are they, and
0.00 – 0.15 – Welcome and scene setting cial organisations need, more than ever, • What are the differences, and when and
0.15 – 1.00 – Social impact measurement to evidence it as the funding and commis- why do they arise ?
1.00 – 1.30 – SROI and Social Accounting sioning landscape evolves and grows ever
1.30 – 1.45 – Feedback and next steps more competitive. However this is not sim-
ply a funder or commissioner-driven need.
A range of drivers include burgeoning social
need, cash constraints in public funding,
legislative change, changing delivery and
funder landscapes, growth of a measure-
ment culture in policy-making and public
life, and evolving thinking in measurement
itself.
Against this backdrop it seems all too easy
INTRODUCTION TO NON-PROFIT to see the plethora of measurement tools
MARKETING and approaches, and the refreshing debate
as the social sector strives for improvement

Slide 1.3 Slide 1.4

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SIP GUIDE UK
IMPACT MEASUREMENT (2)
Social Impact measurement is much talked-
about. For over twenty years different
methodologies have been developing,
spanning different viewpoints, different
service delivery arenas, different jurisdictions,
and the needs of different interest groups.
Various commentators have argued that
there are common threads, but some
fundamental differences to these points of
view While attempts have been to made to
draw out this shared thinking in academic,
professional research, provider, funder and
commissioner environments, too often they
have ended in largely theoretical debates
about the definitions of the terminology
used rather than the subject matter itself.
On the other hand, practitioners and
providers themselves have provided
more examples - concrete examples - of
the challenges and feasibility of impact
measurement. Whilst some are admittedly
90
better than others, the best of them take
our knowledge of the methodologies, and
how to solve their practical shortcomings,
forward in leaps and bounds. As use grows,
so does confidence.
Slide 1.5
IMPACT MEASUREMENT – THE NEED
The need for social impact measurement
is growingly increasingly critical. Social
organisations are clearly feeling more
pressure to evidence their social value, as
the funding and commissioning landscape
evolves and grows more competitive.
A few factors that drive this need stand out
in particular:
Social Need
There is considerable recognition, in all
quarters, of the social needs in our society.
With recession biting globally, these needs
seem to be on the increase, at the same time
as that recognition appears to be growing.
Cash constraints in public funding
Public funding cut-backs are rife across the
world, and the UK is no exception. As need,
or recognition of it, rises, and funding falls
the focus must be on effective and efficient
delivery of services, concentrating resources
on what works best in delivering impact.
Slide 1.22
KEY INFLUENCERS ON SOCIAL IMPACT
MEASUREMENT
The tightening purse within central and
local government requiring more for less in
service delivery.
Unprecedented re-organisation of the
public sector driving greater devolvement of
service delivery from State control, including
Open Public Services Act 2012, the Localism
Act 2011 and Health and Social Care Act
2012. Such legislative change brings
significant competition within the market
place, with Social Sector Service
Providers looking to differentiate themselves
from for-profit providers by their social
impact credentials.
Emerging social investment market bringing
to attract and direct capital to deliver both
social as well as financial returns, including
the co-commissioning and co-financing of
services alongside the State.
Slide 1.23
The Public Services (Social Value) Act • Deadweight or what would have
2012 requiring the public sector contracts happened anyway to a beneficiary or
to consider the social value created (or group regardless of interventions by the
destroyed) with the procurement. Social Sector Service Provider.
• The requirement and value of
performance and financial proxies placed
against outcomes and the comparability
of these.
• The assessment of risk against social
impact outcomes.
• The assessment of negative outcomes
or unintended consequences of services
provided.
• The differing value of immeasurable
outcomes to the respective participant
groups.
• The use of randomised control groups
within emerging social investment
FACTORS THAT INFLUENCE IMPACT instruments such as Social Impact Bond
MEASUREMENT and the complexities around validity,
• Attribution or what percentage of ethics and choice.
outcomes could have been caused by
other interventions by organisations or
people.
Slide 1.20
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SIP GUIDE UK

• Bottom up
• Flexilility in approach
• Both qualitative and quantitative

OUTCOME THEORY OF BENEFICIARY EVIDENCING TRACKING SOCIAL

FOCUS CHANGE PERSPECTIVE OUTCOMES PERFORMANCE

IMPACT
MEASUREMENT

92
DEFINITIONS OF KEY TERMS
We define:
• an output as a measurable unit of
a product or a defined episode of
service delivery directly produced by an
investee’s activities.
• an outcome as an observable, and
measurable, change for an individual
or organisation. We should define the
outcomes we would like our investments
to achieve across the target groups and
areas of activity
• Impact as the effect on outcomes
attributable to the output, which may be
positive or negative, and will be identified
through high quality evaluation.
• Impact risk is a concept to give an
indication of the certainty that an output
will lead to the stated impact.
Slide 1.14
PUBLIC BENEFIT & TARGET all segments of the target population
POPULATIONS and intends that the pricing and sales
channels used do not create barriers to
Three investment criteria to define the target access.
population and ensure public benefit, which
is important to funders.
• investing in inclusive innovations: the
product/service innovation has the
potential to address one or more of the
target outcomes, for all those in the
population for whom the outcome is
relevant (the target population);
• accessibility: the business plan for the
venture contains a credible long–term
strategy to distribute the product/service
to all segments of the target population
and does not exclude any segment
from the opportunity to benefit from the
product/service;
• affordability: the business plan contains
a credible long–term pricing and sales
strategy that demonstrates how the
product/service could be afforded by
Slide 1.15
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SIP GUIDE UK

STANDARDS OF EVIDENCE

LEVEL EXPECTATION HOW THE EVIDENCE CAN BE GENERATED

You can give an account of impact. E.g.

providing a logical reason, or set of You should be able to do this yourself, and draw
reasons, for why your products/service upon existing data and research from other
At level 1
could have impact on one of your funders sources.
outcomes, and why that would be an
improvement on the current situation

At this stage, data can begin to show effect but

You are gathering data that shows some
At level 2
change amongst those using your product/
service
You can demonstrate that your product/
service is causing the impact, by showing
At level 3
less impact amongst those who don’t
receive the product/service.
it will not evidence direct causality. You could
consider such methods as: pre and post survey
evaluation; cohort/panel study, regular interval
surveying.
Consider robust methods using a control group
(or another well justified method) that begin
to isolate the impact of the product/ service.
random selection of participants strengthens
your evidence at this level; you need to have
a sufficiently large sample at hand (scale is
important in this case)

Slide 1.16

94
 LEVEL EXPECTATION HOW THE EVIDENCE CAN BE GENERATED

Funders are looking for a robust independent

You are able to explain why and how
evaluation that investigates and validates
your product/service is having the impact
the nature of the impact. this might include
you have observed and evidenced so far.
endorsement via commercial standards,
an independent evaluation validates the
At level 4 industry kitemarks etc. You will need
impact you observe/generate. the product/
documented standardisation of delivery and
service delivers impact at a reasonable
processes. You will need data on costs of
cost, suggesting that it could be replicated
production and acceptable price point for your
and purchased in multiple locations
customers.

You can show that your product/ service

could be operated up by someone else,
At level 5 somewhere else and scaled–up, whilst
continuing to have positive and direct
impact on the outcome and remaining a
financially viable proposition.
Funders expect to see use of methods like
multiple replication evaluations; future scenario
analysis; delity evaluation.

Slide 1.17

95
SIP GUIDE UK
THE RIGHT IMPACT MEASUREMENT
TOOL
According to the NCVO, there are more
than 160,000 charities in Britain. Of these,
nearly 80% believe that measuring impact
makes their organisation more efficient.
More than 70% have increased their efforts
in measuring results over the past five
years. But there are several hundred tools
for measurement available. So in order to
choose between measurement tools,you
need to think about why your organisation
wants, or needs, to measure its impact.
Voluntary organisations may want to
measure their impact because of bottom-
up factors, such as a desire to improve
services, or a wish to see what difference
the organisation makes to society. Equally,
organisations may need to measure their
impact as a result of top-down factors, such
as funder or trustee requirements. This
could be true for organisations more reliant
on grant applications.
96
When you know the reason for measurement,
you can work out which method or tool is
most suitable.
Slide 1.18
SOCIAL RETURN ON INVESTMENT
(SROI)
(SROI) is a principles-based method for
measuring extra-financial value (i.e.,
environmental and social value not
currently reflected in conventional financial
accounts) relative to resources invested. It
can be used by any entity to evaluate impact
on stakeholders, identify ways to improve
performance, and enhance the performance
of investments.
Over 700 globally are members of this
network called Social Value UK (formerly
the SROI Network).
The SROI method as it has been standardised
by the Social Value UK provides a consistent
quantitative approach to understanding and
managing the impacts of a project, business,
organisation, fund or policy. It accounts for
stakeholders’ views of impact, and puts
financial ‘proxy’ values on all those impacts
identified by stakeholders which do not
typically have market values. The aim is to
include the values of people that are often
excluded from markets in the same terms as
used in markets, that is money, in order to
give people a voice in resource allocation
decisions.
Some SROI users employ a version of the
method that does not require that all impacts
be assigned a financial proxy. Instead
the “numerator” includes monetized,
quantitative but not monetised, qualitative,
and narrative types of information about
value.
Slide 1.19
SOCIAL RETURN ON INVESTMENT
(SROI) (2)
Seven identified principles:
• Involve stakeholders. (i.e. everyone who
has a ‘stake’ or an interest in the subject
of the SROI) Inform what gets measured
and how this is measured and valued in
an account of social value by involving
stakeholders
• Understand what changes. (for those
stakeholders) Articulate how change
is created and evaluate this through
evidence gathered, recognising positive
and negative changes as well as those
that are intended and unintended
• Value the things that matter. (also known
as the ‘monetisation principle’) Making
decisions about allocating resources
between different options needs to
recognise the values of stakeholders.
Value refers to the relative importance
of different outcomes. It is informed by
stakeholders’ preferences
• Only include what is material. Determine
what information and evidence must be
included in the accounts to give a true
and fair picture, such that stakeholders
can draw reasonable conclusions about
impact
Slide 1.20
SOCIAL RETURN ON INVESTMENT
(SROI) (3)
Seven identified principles (continued):
• Do not over-claim. Only claim the value
that activities are responsible for creating
• Be transparent. Demonstrate the basis
on which the analysis may be considered
accurate and honest, and show that it
will be reported to and discussed with
stakeholders
• Verify the result. Ensure appropriate
independent assurance
‘Value the things that matter’ includes the
use of financial proxies and monetisation of
value and is unique to the SROI approach.
Slide 1.21
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SIP GUIDE UK
THE MONETISATION PRINCIPLE
The translation of extra-financial value into
monetary terms is considered an important
part of SROI analysis by some practitioners,
and problematic when it is made a universal
requirement by others.
Essentially, the monestisation principle
assumes that price is a proxy for value.
While prices represent exchange value – the
market price at which demand equals supply
– they do not completely represent all the
value to either the seller or the consumer. In
other words, they do not capture economic
surplus (consumer or producer surplus).
They also do not include the positive or
negative value (i.e., externalities) for others
who may be affected by an exchange.
Moreover, prices will depend in part on the
distribution of income and wealth: different
distributions result in different prices which
result in different proxies for value.
Hence market prices do not always
accurately reflect what people value.
Slide 1.22
98
SOCIAL ACCOUNTING
Social accounting (also known as social
accounting and auditing, social and
environmental accounting, corporate social
reporting, corporate social responsibility
reporting, non-financial reporting or
accounting) is the process of communicating
the social and environmental effects
of organizations’ economic actions to
particular interest groups within society and
to society at large.
Social accounting is commonly used in
the context of business, or corporate
social responsibility (CSR), although any
organisation, including NGOs, charities, and
government agencies may engage in social
accounting. Social Accounting can also be
used in conjunction with Community-Based
Monitoring (CBM).
Social accounting emphasises the notion of
corporate accountability - “an approach to
reporting a firm’s activities which stresses the
need for the identification of socially relevant
behaviour, the determination of those to
whom the company is accountable for its
social performance and the development
of appropriate measures and reporting
techniques.”
It is an important step in helping companies
independently develop CSR programs which
are shown to be much more effective than
government mandated CSR
SOCIAL ACCOUNTING (2)
Social accounting challenges conventional
accounting, in particular financial
accounting, for giving a narrow image
of the interaction between society and
organisations, and thus artificially
constraining the subject of accounting.
• Social accounting seeks to broaden the
scope of accounting in the sense that it
should:
• concern itself with more than only
economic events;
• not be exclusively expressed in financial
 terms;
• be accountable to a broader group of
stakeholders;
• broaden its purpose beyond reporting
financial success.
It points to the fact that companies
influence their external environment
(positively and/or negatively) through
their actions and should therefore account
for these effects as part of their standard
accounting practices. Social accounting
has the “potential to expose the tension
between pursuing economic profit and
the pursuit of social and environmental
objectives”
Slide 1.24
SOCIAL ACCOUNTING -
ACCOUNTABILITY
Social accounting for accountability
purposes is designed to support and
facilitate the pursuit of society’s objectives.
These objectives can be manifold but
can typically be described in terms of
social and environmental desirability and
sustainability.
In order to make informed choices on
these objectives, the flow of information
in society in general, and in accounting in
particular, needs to cater for democratic
decision-making. In democratic systems,
there must then be flows of information
in which those controlling the resources
provide accounts to society of their use
of those resources: a system of corporate
accountability. Society is seen to profit from
implementing a social and environmental
approach to accounting in a number of
ways, e.g.:
• Honoring stakeholders’ rights of
information;
• Balancing corporate power with
corporate responsibility;
• Increasing transparency of corporate
activity;
Slide 1.25
• Identifying social and environmental
costs of economic success.
SOCIAL ACCOUNTING – MANAGEMENT
CONTROL
Social accounting for the purpose of
management control is designed to support
and facilitate the achievement of an
organisation’s own objectives.
Social accounting is concerned with
substantial self-reporting on a systemic
level. Individual reports are referred to as
social audits. The internal model for social
accounting and audit is designed for social
enterprises to help plan and measure
their social, environmental and financial
progress towards achieving their planned
objectives.
Organisations are seen to benefit from
implementing social accounting practices
in a number of ways, e.g.
• Increased information for decision-
making;
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• More accurate product or service
costing;
• Enhanced image management and
Public Relations;
• Identification of social responsibilities;
• Identification of market development
opportunities;
• Maintaining legitimacy.
ENVIRONMENTAL ACCOUNTING
Environmental accounting, which is a
subset of social accounting, focuses on
the cost structure and environmental
performance of a company. It principally
describes the preparation, presentation,
and communication of information
related to an organisation’s interaction
with the natural environment. Although
environmental accounting is most
commonly undertaken as voluntary self-
reporting by companies, third-party reports
by government agencies, NGOs and other
bodies posit to pressure for environmental
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accountability.
Accounting for impacts on the environment
may occur within a company’s financial
statements, relating to liabilities,
commitments and contingencies for the
remediation of contaminated lands or
other financial concerns arising from
pollution. Such reporting essentially
expresses financial issues arising from
environmental legislation. More typically,
environmental accounting describes the
reporting of quantitative and detailed
environmental data within the non-
financial sections of the annual report or in
separate (including online) environmental
reports. Such reports may account for
pollution emissions, resources used, or
wildlife habitat damaged or re-established.
In their reports, large companies commonly
place primary emphasis on eco-efficiency,
referring to the reduction of resource and
energy use and waste production per unit
of product or service. Whilst companies
can often demonstrate great success in
eco-efficiency, their ecological footprint,
that is an estimate of total environmental
impact, may move independently following
changes in output.
Slide 1.27
FEEDBACK AND WRAP UP
• There are different tools for measuring
impact. They will help you measure
what you deliver and will help with
attracting finance, but involve work to
set up and implement
• Prioritise what you measure, choose
your level of evidence and select your
sources and tools
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LEADERSHIP AND PEER SUPPORT

WELCOME

Aim:
• Leadership Training for Managers benefits anyone who interacts with internal
or external customers, project team leaders, employees who serve on teams, or
managers who want to enhance their leadership skills development in order to
achieve outstanding results.
• This management leadership training course will teach you how to stop
managing and start leading; and, as a result, make you a vital part to your
organisation’s future.

Today’s facilitators are:

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102
AGENDA:
-30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and overview
0.15 – 1.00 – Self Awareness
1.00 – 1.30 – Communication
1.30 – 1.45 – Break
1.45 – 2.30 – Leadership / Teambuilding
2.30 – 3.00 – Planning / Goal Setting
3.00 – 3.15 – Feedback and next steps
Slide 1.3
LEADERSHIP
The main objective of this session of the
course is to provide you with the necessary
skills to become an effective leader. This
session will introduce you to basic leader-
ship theories as you pursue leadership roles
in your business and the community. This
module offers theory in developing skills
in the areas of self- awareness, communi-
cation, planning / goal setting, and lead-
ership / teambuilding to help you develop
the skills and knowledge to support you in
leadership.
We’ll start by watching a video:
https://www.youtube.com/watch?v=-
jU4oA3kkAWU&feature=youtu.be
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SELF AWARENESS
Self awareness is about understanding
yourself in a way that allows you to
understand who you really are and why
you do things in the way that you do. By
developing your self awareness you can gain
control over yourself in certain situations.
Learning outcomes covered in this section:
• Appreciate what is understood by self
awareness and personal development
• Understand that personal development
is an ongoing requirement
• Recognise your current personal
development needs
• Developing your own mission and vision
statements
Being self aware requires reflection and
reflection requires you to think about
yourself with regard to your actions, feelings,
interactions and thoughts. Reflection can be
undertaken by yourself or with other people
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104
There is a lot to learn about oneself in good SELF AWARENESS - EXERCISE
and bad times through reflection, which can
allow an individual to:
• Gain more control and make better STRENGTHS WEAKNESSES
decisions
• Be more flexible and confident in our
approach
• Help ourselves deal with challenges in a
more positive and less anxious way
• Interact better, communicate more
effectively and understand our
relationships with others more fully
• Reduce our stress levels and get more
out of life OPPORTUNITIES THREATS
Self awareness, therefore, can lead to
personal development as an individual
has identified their strengths, weaknesses,
opportunities and threats through reflection
and analysis
SELF AWARENESS - EXERCISE
• Strengths – list the particular skills and
qualities you have as an individual, as
well as the people and resources you
have available to you
• Weaknesses – also include skills you
wish to acquire and qualities you wish
to develop, as well things you don’t have
access to but may need in the future
• Opportunities will include resources
available to you and will strongly link to
your strengths – basically any potential
situations which could positively
affect your personal and professional
development
• Threats are the factors that have the
potential to hinder your progress
Slide 1.8
PERSONAL DEVELOPMENT others around you; organised and
structured training programmes;
Personal development is about developing perfomance reviews/appraisals; formal
and improving aspects of an individual education; personal reading and
which can include areas such as education. research
Motivation, feelings, health, skills, abilities
and more.
As life is constantly changing, it is necessary
to continue developing as a person in order
to improve as individuals and to be able to
adapt to changing situations.
Personal development requires an individual
to set goals or benchmarks that define a
point which can be achieved through goal
setting and planning
This allows progress and assessment
to occur which allows an individual to
receive feedback regarding change and
development.
Personal learning and development activities
can come about by different channels which
include
• Hands on work; learning by observing
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PERSONAL DEVELOPMENT - EXERCISE CURRENT PERSONAL DEVELOPMENT PERSONAL DEVELOPMENT NEEDS -

NEEDS EXERCISE
Currently I am... In 2 years I want...
There are 3 aspects you need to consider:
KNOWLEDGE
• Your knowledge base
Think of this as a personal reflective audit. What? How?
What knowledge do you need to gain to
achieve your goals? What is your baseline?

• Yours skills
Knowledge is a prerequisite for skill SKILLS
development. A person needs to know
what to do and when to do it (knowledge). What? How?
However a gap separates knowing things
from actually being able to do them
In 10 years I want… In 5 years I want…
• Your attitude
Attitude can set you aside from other ATTITUDES
people and give you a real advantage in the
workplace. Attitude is a mental set, a way of What? How?
thinking and behaving that makes a person
respond in a particular way to a particular
stimulus

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106
PERSONAL MISSION STATEMENT
Keep your statement simple and brief – 3 –
5 sentences
Write your statement so that it focuses
on who you want to become and keep it
direct with regard to the areas you want to
develop/change
Keep your mission statement positive
Develop a mission statement that you can
use n your everyday decisions and actions
Consider how your mission statement will
impact on other areas of your life
Keep your mission statement personal and
it will inspire you into achievement
Always remember that your mission
statement is not inflexible
MISSION - EXERCISE
If you never had to work another day in
your life, how would you spend your time
instead of working? (discuss with the person
next to you)
Slide 1.14
COMMUNICATION
Everyone uses interpersonal communication
skills. We use them at home with our
families, in the workplace with our bosses
and coworkers, on our computers when we
answer email, and on the telephone when
we order pizza. This manual is intended
to help you improve your interpersonal
communication skills and develop new skills
to become a more effective communicator.
Interpersonal communication applies to all
of our relationships, personal and business.
Others respect or reject us based on our
interpersonal communication skills. People
send us messages in every interpersonal
communication encounter. Those messages
can be explicit (verbal comments) or implicit
(nonverbal facial expressions, other body
language, and physical space).
The first step in communication is using the
appropriate method. There are a variety of
tools available and you will need to decide
whether a situation calls for an email, a
Slide 1.15
phone call or a face to face conversation.
Communication should never be a one-
way process. When we talk about ‘actively
listening’, it means ensuring you are
engaged with others in order to understand
what they are saying. Asking questions
and summarising the main points of the
conversation is a good way of checking your
understanding of what has been discussed
and demonstrates that you have been
listening to what the other person has been
saying.
Competency in written and verbal
communication skills means you are able
to:
• Select appropriate and effective
communication methods.
• Ascertain the appropriate tone and level
of language in specific situations.
• Present information via a verbal or written
medium that is easily comprehensible to
others.
• Actively listen and pay attention to
people, asking questions if necessary.
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COMMUNICATION (3)
It takes just a quick glance, maybe three
seconds, for someone to evaluate you when
you meet for the first time. In this short
time, the other person forms an opinion
about you based on your appearance,
your body language, your demeanor, your
mannerisms, and how you are dressed. So
whether they are in your career or social
life, it’s important to know how to create a
good rst impression. Tool 5 will help us to
work on first impressions, providing some
useful tips.
The difference between the words people
speak and our understanding of what
they are saying comes from non-verbal
communication, otherwise known as “body
language”. By developing your awareness
of the signs and signals of body language,
you can more easily understand other
people, and more effectively communicate
with them.
Communication is made up of more than
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108
just the words we use. Our tone of voice,
facial expression and body language all
play a major role in how we’re understood.
And if we’re communicating in a situation
where we can’t use all of these elements to
enhance our messages, we need to be very
careful.
Are you comfortable talking with people
you don’t know? Do you dread saying no?
Do you allow strangers to cut you o in the
cafeteria line? Do you regret stepping on
others to achieve your goals? Do you feel
you get your needs across to others?
Your words and behavior tell people who you
are. Human communication and behavior
fall into three basic categories:
1. Passiveness.
2. Aggressiveness.
3. Assertiveness.
Assertiveness is an alternative to the
extremes of passiveness and aggressiveness.
SELF-PERCEIVED COMMUNICATION -
EXERCISE
Please indicate how competent you
believe you are to communicate
in each of the situations described
below. Indicate in the space provided
beside each item your estimate of your
competence.
Presume 0 = completely incompetent and
100 = competent.
1. Present a talk to a group of
strangers_____
2. Talk with an acquaintance____
3. Talk in a large meeting of friends____
4. Talk in a small group of strangers____
5. Talk with a friend____
6. Talk in a large meeting of
acquaintances.____
7. Talk with a stranger____
8. Present a talk to a group of friends____
9. Talk in a small group of
acquaintances____
10. Talk in a large meeting of
Slide 1.19
strangers____
11. Talk in a small group of friends____
12. Present a talk to a group of
acquaintances____
COMMUNICATIONS PLANNING
Getting the right messages across in
the right way
Whether you need to communicate general
day-to- day information or “big news”
about major changes in your organization,
the best communications start with some
good planning.
The first step is to put yourself in the shoes
of your audience. What do they need to
know, and want to hear? What’s their
preferred way of receiving information?
What will stop them listening to what you
have to say? And how will you know that
they have got the message?
So there’s quite a bit more to good
communications than preparing a good
memo or presentation! Work through the
preparation steps to help you create an
audience-focused communication plan
that’s sure to get your message heard:
• Understand your objectives
Be clear about your overall communication
objectives. What do you want to achieve,
when and why? Record your overall
objectives in your plan.
• Understand your Audiences
Identify and list your different audiences.
Try to identify who to communicate with
and why.
Now drill down into your communication
objectives and clarify specific objectives for
each audience. A good way to do this is to
think about the audience’s needs – what
do they need and want to know from you?
List all the objectives (there may be several)
for each audience in your plan.
Slide 1.21
• Plan Communications Messages
And Channels
Once you have clarified your objectives
and got a full understanding of the
different audiences you need to
communicate with, it’s time to plan the
communications – that means working
out the messages needed to meet your
objectives and when and how these will be
delivered.
Before starting on the detail of your
plan, first jot down all the possible
communications channels you could
use. Think broadly and creatively! You
probably already use lots of great ways to
communicate in your company, and some
new ones may help get your message
across. Here is a list to get you started:
• Email; • Newsletter; • Teleconference; •
Notice boards; posters; podcast….............
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• Remember to use existing channels • Monitor Effectiveness

To plan out the message for each audience, It’s good to get feedback on the
start by thinking about the broadest audience communications you have planned and
groups first. The broadest audience might implemented. Ask people from different
be “All people working in the London Office” audiences how you are doing. Check they
and “All people working in the Sumperk understand the messages you need them
Office ”. to hear. By getting timely feedback, you can
As you consider each audience in turn, ask tune any future communications that you
the following questions: have planned to better meet people’s needs
• What does the audience need and want or fill any gaps so far.
to know?
• When do we need to communicate?
• What is the regular or preferred channel
for reaching this audience?
• For this specific audience and message,
what is the most effective way to get your
message across?
Several messages over time may be required
to meet the objectives of each audience.
Make sure the messages you plan “add up”
to meet the audience’s objectives.

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110
THE COMMUNICATION CYCLE THE 7 CS OF COMMUNICATION LEADERSHIP

The Communication Cycle provides a Communication needs to be: There are many definitions of leadership.
checklist that helps you communicate Many lines have been written attempting to
effectively with your audience. • Clear capture the essence of leadership in just a
few words.
• Concise The Oxford English Dictionary definition of
leadership is simply:
2. Compose/ • Concrete “The action of leading a group of people or
Encode
an organisation, or the ability to do this.”
• Correct We need now to define ‘lead’ in this context,
1. Aim 3. Transmit/ which is more helpful to appreciating the
Deliver
• Coherent breadth and depth of the word leadership.
Here are the most relevant points from the
• Complete dictionary:
Be in charge or command of
• Courteous Organise and direct
6.Change 4. Received Set a process in motion
Improve feedback Be a reason or motive for (others to act,
change, etc.)
5. Analyse/
Decode/
Learn

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Leadership is centrally concerned with
people. Of course leadership involves
decisions and actions relating to all sorts
of other things, but leadership is special
compared to any other role because of
its unique responsibility for people - i.e.,
the followers of the leader - in whatever
context leadership is seen to operate.
Leadership and management are commonly
seen as the same thing, which they are
not. Leadership is also misunderstood to
mean directing and instructing people and
making important decisions on behalf of an
organization. Effective leadership is much
more than these.
Good leaders are followed chiefly because
people trust and respect them, rather than
the skills they possess. Leadership is about
behaviour first, skills second.
This is a simple way to see how leadership is
different to management:
• Management is mostly about processes.
• Leadership is mostly about behaviour.
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112
Management relies heavily on tangible
measurable capabilities such as effective
planning; the use of organisational systems;
and the use of appropriate communications
methods.
Leadership involves many management
skills, but generally as a secondary or
background function of true leadership.
Leadership instead relies most strongly on
less tangible and less measurable things
like trust, inspiration, attitude, decision-
making, and personal character. These are
not processes or skills or even necessarily
the result of experience. They are facets of
humanity, and are enabled mainly by the
leader’s character and especially his/her
emotional reserves.
Another way to see leadership compared
with management, is that leadership
does not crucially depend on the type of
management methods and processes a
leaders uses; leadership instead primarily
depends on the ways in which the leader
uses management methods and processes.
Good leadership depends on attitudinal
qualities, not management processes.
Humanity is a way to describe these
qualities, because this reflects the leader’s
vital relationship with people.
Qualities critical for a leader’s relationship
with his/her people are quite different to
conventional skills and processes.
LEADERSHIP QUALITIES
Examples of highly significant leadership
qualities
• Integrity; honesty; humility;
• courage; commitment; sincerity;
• passion; confidence; positivity;
• wisdom; determination; compassion;
• sensitivity
People with these sort of behaviours and
attitudes tend to attract followers. Followers
are naturally drawn to people who exhibit
strength and can inspire belief in others.
These qualities tend to produce a charismatic
effect. Charisma tends to result from
Slide 1.30
effective leadership and the qualities which
enable effective leadership. Charisma is by
itself no guarantee of effective leadership.
LEADERSHIP TIPS (JACK WELCH)
• There is only one way - the straight way.
It sets the tone of the organisation.
• Be open to the best of what everyone,
everywhere, has to offer; transfer
learning across your organisation.
• Get the right people in the right jobs -
it is more important than developing a
strategy.
• An informal atmosphere is a competitive
advantage.
• Make sure everybody counts and
everybody knows they count.
• Legitimate self-confidence is a winner
- the true test of self-confidence is the
courage to be open.
• Business has to be fun - celebrations
energise and organisation.
• Never underestimate the other guy.
Slide 1.31
• Understand where real value is added
and put your best people there.
• Know when to meddle and when to let
go - this is pure instinct.
LEADERSHIP PRIORITIES
As a leader, your main priority is to get the
job done, whatever the job is. Leaders make
things happen by:
• knowing your objectives and having a
plan how to achieve them
• building a team committed to achieving
the objectives
• helping each team member to give their
best efforts
As a leader you must know yourself. Know
your own strengths and weaknesses, so that
you can build the best team around you.
Slide 1.32
EFFECTIVE GOAL SETTING
Setting goals and objectives should be your
number 1 priority if you want to take charge
of both your professional and personal life,
take control the wheel  and get out of the
backseat.
Setting goals and objectives will not just
enhance your career or quality of life, lets
face it you can’t get what you want if you
don’t know what you’re going for. 
In addition to the fact that goals have an
extraordinary power over the direction of
your life and business and also don’t forget
that accomplishing a goal that you worked
really hard for is one of the more satisfying
pleasures a person can experience. 
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SIP GUIDE UK
• Set goals that are linked to business
priorities
Objectives must be regularly reviewed and
updated as circumstances change.
• Linked to results, not activities
This means that we are concerned with
output not activities - the ends and not the
means.
• Measurable and specific
Objectives must state what exactly is to
be measured, and within that, define
acceptable levels of performance.
• Challenging but attainable
Ideally, your people should set their own
objectives. Often these will be tougher
than if set by the manager. They should be
stretching, challenging and developmental.
Weed out unattainable objectives as these
can be de-motivating.
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114
• Matching experience and capability
Objectives should take account of the
individual’s ability, experience, knowledge
and any development plan in place.
• Updated
Certain things may occur which affect the
objective being measured but which are out
of the control of the jobholder. As a result,
objectives must be regularly updated, taking
account of the business environment.
• Number of objectives
Don’t set too many objectives. It is better to
focus on a few quality areas rather than a
long list which is impossible to achieve.
Compatible upwards/downwards/sideways
Objectives should not clash with other
people’s activities, so they need to be
compatible upwards, downwards and
sideways..
HARD V SOFT OBJECTIVES
Hard objectives can be measured clearly
in terms of outputs such as turnover, profit,
percentage increases, etc.
Soft objectives define the difference between
‘acceptable’ and ‘excellent’ performance.
Soft objectives cover areas where the
way the job is done is as important as the
quantitative results.
Often soft objectives are measured through:
Customer feedback Surveys, complaints,
mystery shopping.
It is important to break down soft objectives
into desirable behaviours, for example a
positive attitude for a customer service role
tells you little until it is broken down into:
• Politeness
• Smiling and good eye contact with the
customer at all times
• Appearance
• Calm and practical approach
• Good knowledge of the organisation’s
services and systems
Slide 1.30
GOAL CASCADING
Cascading goals means breaking down the
corporate goals into a set of smaller goals
that are relevant to each department. A
simple way to think about this process is to
think about goals spilling over a cliff like a
waterfall.
Goals must spread throughout an entire
organization in order to be executed.
The department goals describe what each
unit needs to achieve. These goals are
then broken down further until individuals
in the unit have their own performance
goals. In this way, progress throughout the
organization is measurable.
Cascading goals isn’t an easy or fast process.
Be prepared to meet resistance in getting
people to get on board. Some may need
specific training because they don’t know
how to develop goals and others may need
coaching to enhance their performance.
Slide 1.37
GOAL CASCADING OBJECTIVE SETTING
Objectives need to be set at all levels of the
CORPORATE or STRATEGIC PLANS business. This ensures commitment at the
higher levels of management and clear goals
and objectives at lower levels. This is often
achieved through cascading the corporate
BUSSINESS PLANS or strategic objectives into individual jobs.
FEEDBACK AND WRAP UP
TEAM GOALS • Phew – we covered a vast amount
• No one said it would be easy running
an organisation – but there is plenty of
support and spending time doing some
INDIVIDUAL OBJECTIVES internal and external examination makes
a difference
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SIP GUIDE UK

PITCHING & PUBLIC SPEAKING

WELCOME

Aim:
• To help people develop their elevator pitch
• To assist people to be able to present in public

Today’s facilitators are:

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AGENDA:
-30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and scene setting
0.15 – 0.45 – Introduction to pitching
0.45 – 1.45 – Exercise 1 – prepare your
pitch
1.45 – 2.00 – Break
2.00 – 3.00 – Test your pitch
3.00 – 3.15 – Feedback and next steps
Slide 1.3
PITCHING develop and try out pitches on your fellow
learners.
There are likely to be many occasions when
you will need to win over people’s interest
in your business idea - particularly when
you are seeking finance.
Whether you are trying to raise money for
your business or just want to perfect your
business strategy, a solid elevator pitch is an
essential tool for achieving your goals. An
elevator pitch can be delivered either ver-
bally, ideally in 60 seconds or less, or as a
one-page overview of your business. Think
of the elevator pitch as an executive sum-
mary that provides a quick overview of your
business and details why you are going to
be successful.
We’ll give you some of the concepts, what to
include and what to avoid and allow you to
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SIP GUIDE UK
PITCHING – WHAT TO INCLUDE
1. Problem
The most important thing is to identify
a problem that is worth solving. If your
product or service doesn’t solve a problem
that potential customers have, you don’t
have a viable business. Simple as that.
Now, you don’t have to be solving a massive
problem where the solution will change
the world. That’s great if you are tackling
such a problem, but for most businesses,
that’s not the reality. Problems can be
simple—and that’s OK. As long as you, as
an entrepreneur, are solving a problem that
customers have, you can build a business.  solve multiple potential problems.
Try and distill your customer’s problem down
to its simplest form. Ideally you should be
able to describe the problem you are solving
in one or two sentences, or potentially a few
bullet points. In the long run, your company
may solve multiple customer problems, but
initially you will be more successful if you
just focus on one core problem.
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2. Solution
Too many entrepreneurs start with a
solution: a product or service that they think
the market needs without first identifying
the problem they are solving. As a smart
entrepreneur, you can avoid this mistake
by first making sure that you are solving a
real problem that customers actually have
before you define your solution (see point
one).
Once you have clearly defined the problem
you are solving, you need to explain your
solution. A clear problem statement will
help you focus your solution on solving that
one problem, and not stretch the solution to
Again, try and distill your solution description
down to as few words as possible. You
should be able to describe your solution at
a high level in just a few sentences or bullet
points.
3. Target market
As you define the problem you are solving,
you should naturally be thinking about the
potential customers who have this problem.
In the Target Market section of your pitch,
you will define exactly who has the problem
you are solving and figure out how many
potential customers you will be trying to sell
to.
You should try and divide your target market
into segments—smaller groups of people
whom you expect to market to.
Once you have created a good list of target
market segments, you’ll need to do a little
research and estimation to figure out how
many people are in each segment. Next,
try and estimate what an average person
in each group currently spends each year
on their current solution to the problem you
are solving. Now, just multiply the number
of people by how much they currently spend
and you will have a realistic “market size”
number or your target market.
In your pitch, you will want to talk about the
market segments you are targeting, how
many people are in each segment, and the
Slide 1.7
total amount they currently spend. These
numbers are critical and must be part of any
good pitch presentation.
4. Competition
Every business has competition. Even if no
one has come up with a solution similar to
what you have come up with, your potential
customers are solving the problem they
have with some alternative.
For example, the competitors to the first cars
weren’t other cars but horses and walking. As
you think about your competition and existing
alternatives, think about what advantages
your solution offers over the competition.
Are you faster, cheaper, better? Why would
a potential customer choose your solution
over someone else’s? Describing your key
differentiators from your competition is
a great exercise and ensures that you are
building a unique solution that customers
will hopefully choose over other alternatives.
These differentiators will also help you focus
your marketing on the key value proposition
Slide 1.8
that you offer that your competitors don’t.
Bear in mind that social innovators are
competing with all sectors
5. Team
As great as your idea is, only the right team
will be able to effectively execute and build
a great company.
In the “team” portion of your pitch, you
should talk about why you and your
business partners are the right team to
execute on your vision and why your team’s
skill set is precisely what is needed to lead
your company to success.  People often
say that a company’s leadership team is
more important than the idea—and this is
often true. No matter how great or unique
your solution is, if you don’t have the right
people on board, you won’t be able to see
it to fruition.
It’s also OK to not have an entire team in
place. It’s more important to understand
that you have gaps in your management
team and that you need to hire the right
Slide 1.9
people. Knowing what your team is missing
and recognizing that you need to find the
right talent to fill the gaps is an important
trait in any social entrepreneur.
6. Financial summary
For a great pitch, you don’t necessarily have
to show a detailed five-year forecast. What’s
more important is that you understand your
business model.
“Business model” may sound like something
complex, but fortunately it’s not. All you
need to know is who pays your bills and
what kinds of expenses you will have. For
example, if you are starting an online news
site, the customers that pay the bills are
your advertisers. Your costs will be writers,
graphic designers and web hosting. As you
learn more about your industry, it is certainly
helpful to put together a sales forecast and
expense budget. You will want to ensure that
you can build a profitable company based
on your assumptions. But, for your pitch, a
detailed forecast isn’t necessarily required.
Slide 1.10
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SIP GUIDE UK
7. Milestones
The final key element of your elevator pitch
is conveying your business milestones, or
your schedule.
Here you will want to talk about your
upcoming goals and when you plan
to achieve them. If you have already
accomplished notable milestones, you
should mention those. For example, if
you have invented a new medical device,
potential investors will want to know where
you are in the clinical trial process. What
steps have been accomplished and what’s
the projected schedule for final approvals? If
you are opening a restaurant, investors will
want to know about plans to sign a lease,
design the interior, and open for business.
Talking about upcoming milestones in your
pitch makes your business a reality. This
section of the pitch illustrates how well you
have thought through the detailed steps it’s
going to take to open your business and
start making money.
Slide 1.11
120
PITCHING – HARD EARNED LESSONS
Less is always more.
An elevator pitch is vital. Verbose
presentations and lengthy explanations will
not impress investors, and most likely will
turn them off. Present your business in a
manner that’s short, sweet and to the point.
Investors need to be confident that your
business will attract and retain customers.
If they don’t grasp your concept in a short
time span, they may presume that customers
won’t understand it either.
Never hypothesize. Execute, execute,
execute.
Inspire confidence with facts, not fiction.
Most investors seek out low-risk businesses
with proven managers that are as close to
guarantees as possible. A company with
cash flow, a track record and real-world
experience has a better chance of getting
investors than a business plan forecasting
large returns. Find ways to test your
business’s viability on a shoestring budget,
and turn your idea into a functional business
before you seek investment.
Leave the hockey sticks on the ice.
Excite investors about your big picture, but be
reasonable and responsible. Avoid hockey
stick projections. Respectable investors will
not take you seriously if you present them
with nonsensical financial graphs that claim
your company’s revenues will grow from
£100,000 to £50 million in three years. Show
investors that you have a grasp on reality
with three versions of financial projections:
best case, moderate case and worst case.
Base each of these models on facts, past
and present performance data, industry and
competitor analyses and a series of well-
thought-out, defendable assumptions.
Learn to love discount stores.
Being cheap is chic. In an age where
spending is out of control, you’ll need to
prove that you are a fiscally responsible
Slide 1.7
manager who knows how to get the most
out of a buck. Give yourself wiggle room in
your operations and marketing budgets, but
avoid being excessive. Never ask for a large
salary or big-budget perks. Investors want
you to be in a position where everything is
on the line.
Rome wasn’t built in a day. Your business
won’t be either.
Investors are wary of funding over-eager
businesses that seem destined to bite off
more than they can chew. Before asking
for millions of dollars to fund 50 divisions
and hundreds of product lines, prove how
well you can create, manage and fulfill
demand for a single product. Demonstrate
that your business can crawl before you
say it can walk. Perfect your marketing
tactics, sales strategies and operational
procedures. Investors appreciate companies
with sustainable step-and-repeat business
models that are poised for exponential
growth. Remember, even Google’s success
is based on a single product.
Choose not to be the smartest person in
the room.
Know what you know, know what you don’t
know and find the people who know what
you don’t know. Build a team of credible
experts. The smartest leaders in the world
are those who surround themselves with
smarter people. Investors are funding a
management team as much as they are
investing in a great business concept.
PITCHING – DO’S
• Keep your pitch short, concise and
factual - around 5 -15 minutes long. Get
to the point.
• Provide visuals, either a tangible product
or visual images of your concept.
• Demonstrate the opportunity. Specifically
tell the panel you are pitching to exactly
how there is going to be a return on the
investment that’s made and demonstrate
Slide 1.21
why.
• Show your commitment. Explain clearly
and concisely what you have done and
what you intend to do next. Reveal
what you have given up, what you are
prepared to do and how determined you
are. Show how you will be sharing the
risk. Passion and commitment are vital
ingredients of a winning pitch. In the
entrepreneurial dictionary, action comes
straight after decision. Committing to
getting things done is an invaluable ally
on your road to success.
• Be confident. An inner self belief is like
a foundation stone under the tallest
building. You need to convince potential
investors that you have the courage of
your convictions and why.
Slide 1.26
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SIP GUIDE UK
• Practice your pitch in front of a mirror
until you know it by heart and it is word
perfect. Practice in front of anyone you
can rely on to give you honest feedback.
Some business angel networks provide
dummy investor panels and workshops
to help entrepreneurs practice their
pitches.
• Persist. Dealing with rejection is all
about passion and conviction and never
giving up. When Thomas Eddison, who
invented the light bulb, was asked what
it was like to have failed 1000 times in
trying to invent it, he replied that he didn’t
fail, he just found 1000 different ways
not to invent the light bulb. That sort of
analogy is what it’s about, that’s the way
we should view life. Successful social
entrepreneurs have two undeniable
qualities, determination and persistence.
Develop a ‘’keep on keeping on’’ ability.
• Protect your idea before entering a pitch
situation.
• Keep calm. Take five seconds to breathe
Slide 1.16
122
and let your pounding heart to slow
down. Look down if necessary. Compose
yourself. Silence is fine. Then, spring into
life.
PITCHING – DON’TS
• Exaggerate! Know your figures inside
out and off by heart. Be realistic about
the risks your business faces and turn
yourself into an expert on how to deal
with them.
• Come unstuck. Know exactly what
you’ll be spending the invested money
on and provide realistic valuations and
projections.
• Stop using your imagination. Once
your business is up and running your
imagination will act as a catalyst for other
people’s imaginations. As long as your
imaginative visions and ideas remain
deliverable and realistic. An imaginative
leader is encouraging to those around
them.
• Look un-inspirational. Make me like the
look of you. Don’t look like you’re utterly
desperate for money or that you’ve
just been dragged through a hedge
backwards because you’re wearing
ripped jeans and a t-shirt. Wear a suit.
• Be condescending. Have confidence in
your idea but do not patronise those you
are seeking investment from.
• Argue. Do debate. There is a fine balance
between debating and arguing with
somebody. The minute you start arguing
with a potential investor, you’re now in
a state of conflict and it’s going to go
wrong for you very quickly.
Slide 1.18
PITCHING – THE 12 SECOND PITCH
Let’s say you’re at a dinner party and one
of the guests asks you, “So, what do you
do?” Can you answer in one sentence so
that they understand your company?
Being able to distill your company into one
simple sentence is incredibly valuable. It
helps you, as an entrepreneur, focus on
exactly what you do and who you’re doing
it for. It also helps you clearly market your
business. A simple headline at the top of
your website or brochures will communicate
the core essence of your company and
generate interest in learning more about
what you do.
EXERCISE – WRITING YOUR PITCH
12-second speech
Summarise in one simple sentence what
your company does or provides.
Describe the benefits that your product or
service provides. List the features that set
your product or service apart from your
competitors’ products or services.
30-second speech
Summarise in a few simple sentences what
your company does or provides.
Describe the benefits that your product or
service provides. List the features that set
your product or service apart from your
competitors’ products or services.
Briefly state your company’s qualifications.
Describe your company’s goals or objectives,
or both.
3-minute speech
Summarise in one simple sentence what
your company does or provides.
Describe the benefits that your product or
service provides. List the features that set
your product or service apart from your
competitors’ products or services.
Briefly state your company’s qualifications.
Identify your company’s mission in one
sentence.
Slide 1.21
Describe your company’s goals or objectives,
or both.
Give an example of a successful outcome
from the sale of your product.
THE PROOF OF THE PUDDING…........
A chance to present the pitches to the fellow
learners and feed back
FEEDBACK AND WRAP UP
Putting your business concept into simple,
understandable terminology helps potential
investors, partners, policy makers, or other
stakeholders to grasp what you are trying to
deliver
Standing up in front of people is a necessary
part of business life
Slide 1.24
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SIP GUIDE UK

CASE STUDIES

EDINBURGH TOOL LIBRARY

The story of the Edinburgh Tool Library began in the summer of 2013, when Chris
Hellawell was visited by a friend from Toronto. While chatting about social enter-
prise, she told him about a her home town’s new tool library, which lent out equip-
ment to it’s members. Chris thought this was a great idea and made so much sense,
so he started looking into it. Emails were exchanged with the Toronto Tool Library
and arrangements were made for a return visit to Toronto the following October.

Convinced that a tool library could work in the UK, Chris set out establishing a board
of trustees, and applying for charitable status with the Office of the Scottish Charity
Regulator (OSCR). This took longer than he had hoped, but after a long, drawn out
battle, he managed to argue ETL’s case successfully, and on October the 14th 2014,
they were given charitable status.

Going through The Melting Pot’s Social Innovation Incubation Award programme
helped to develop the business, learn new skills, gather around likeminded people
and become ready for the next step.

124
3 months after opening have about a doz-
en volunteers, over 500 tools, 80 members,
and have lent out over 150 tools, but aren’t
done yet!
Edinburgh Tool Library is the UK’s first tool
library, promoting sharing as a way of re-
ducing our environmental impact.
We lend our members tools for DIY, garden-
ing, decorating and machine repair, so that
they don’t need to own them. Not only does
this collaborative approach make sense en-
vironmentally, it also helps our members fi-
nancially.
• The average power drill is used a to-
tal of 13 minutes in it’s lifetime – we don’t
all need to own one
• The average UK household spends
£110 a year on tools (Office of National
Statistics, 2014) – annual membership to
the tool library costs £20 (or less if you’re
skint!)
• Being a member of ETL gives you ac-
cess to over 500 tools without the need to
store them, maintain them, or buy them in
the first place
We are in the Leith Walk Police Box on Croall
Place, every Saturday, from 9am -1pm.
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SIP GUIDE UK

EMOTION WORKS

Emotion Works is an inclusive and interdisciplinary approach to emotional learning,

communication and wellbeing.

Created by teacher, curriculum designer and educational consultant Claire Murray,

the Emotion Works Approach is the result of an 8 year development process orig-
inating in Claire’s own classroom practice and drawing on her strong academic
background in Psychology and Education. The approach is theoretically principled,
academically endorsed and has now been widely piloted and practitioner approved
in a variety of educational and related settings.

At the heart of the Emotion Works Approach is a simple and versatile visual resource
called ‘The Component Model of Emotion’. This colour-coded model identifies sev-
en aspects of emotional knowledge and competence that work together to show
how ’emotion works’. The model can be used as a reference tool by adults to help
guide observation, assessment, planning and reflection relating to real life emotion-
al events and planned learning activities.

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The Component Model can also be used
as a learning tool for children and young
people across all ages and stages of de-
velopment. Six levels of engagement are
identified for communication and learning,
and our practice examples demonstrate
how Emotion Works can be used to support
meaningful consultation and a wide variety
of curriculum activities to promote emotion-
al wellbeing.
Emotion Works is a non-profit making social
enterprise. The business model is geared
towards providing high quality products and
services that offer excellent value for money
in the field of emotional education. By gen-
erating income from the sale of our prod-
ucts and services we are aiming to grow
Emotion Works into a sustainable organisa-
tion to help us continue our important work.
As a registered ‘Community Interest Com-
pany’ (CIC) our finances and activities are
monitored annually by a regulatory body
to ensure that we are working to address
the needs of our community of interest. Our
community interest statement is as follows…
Emotion Works is committed to achieving
positive outcomes in learning and well-be-
ing for all children and young people, and
we have a particular interest in working on
projects that help improve outcomes for
those who face additional challenges due
to disability or disadvantage.
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SIP GUIDE UK

INVISIBLE EDINBURGH

Invisible Edinburgh offer friendly walking tours of Edinburgh that showcase the city’s
historical landmarks and explore the social projects that make the city what it is!
Experienced tour guides, all of whom have been affected by homelessness, simply
live and breathe the city, and offer their own personal insight into Edinburgh’s past,
present and future.
With help, support and high quality training we ensure that every guide has the op-
portunity to showcase their Edinburgh for your enjoyment!
Invisible Edinburgh is a social enterprise. We don’t believe in labels or stereotypes.
We want to show that everyone has great potential, a fact reflected in our tour
guides.
We partner with national homeless charity CRISIS to deliver training around the
history of the beautiful city of Edinburgh, build self confidence and a proficiency in
public speaking.
Each of our talented tour guides have experience of homelessness or social disad-
vantage. They have seen Edinburgh from many more angles than the average tour
guide can offer, be it the famous landmarks or the social enterprises that make this
great city what it is. All of our guides have experienced homelessness before and we
believe:

128
• Homelessness is not always what
people think.

• People don’t need to sleep rough

to be considered homeless. They can be
staying with friends, in B&Bs or in hos-
tels.

• Homelessness can and does hap-

pen to everyone for all sorts of reasons
such as loss of a job, health issues,
family breakdown etc.

At Invisible Edinburgh we know this and

want to share our view that at the end of
the day, people are people. We want to cre-
ate a dialogue between the public and our
guides.

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SIP GUIDE UK

REMADE IN EDINBURGH

Remade in Edinburgh teaches repair and reuse skills, and sells recycled and upcycled
IT equipment and furniture.
In the words of Sophie Unwin, Chief Executive of Remade “……….. the story of cre-
ating Remade in Edinburgh, which is a social enterprise to teach computer, furniture
and repair skills and campaign for zero waste, is for me part of that alternative vi-
sion: one that creates green jobs, and fosters inclusion and community at its heart.
For me the inspiration of starting Remade came from the experience of living for a
year in rural Nepal. In this year as part of a household of six people we created less
than a dustbin of rubbish in a year. We reused all our containers, bought vegetables
unpacked from the market and if our precious stove ever broke down, we would go
and get it fixed.
It struck me that people with useful fixing skills, like the elderly man who fixed bikes
in his front garden, should be more valued for the work they did.
Coming back to Brixton, in London, I got reverse culture shock when I went into a su-
permarket and saw 20 different types of coffee. It struck me that people with useful
fixing skills, like the elderly man who fixed bikes in his front garden, should be more
valued for the work they did. And this seeded the idea for creating a reuse and repair
centre, with a business model of repair education.

130
In Edinburgh we started in 2011 with £60
and a group of volunteers. Now in 2016 we
have 10 employees, 20 volunteers and over
10 freelance tutors. Two of our employees
are from other European countries. Sotiris,
from Greece, and Mario from Italy have
helped build up our computer business and
allow us to provide jobs for the rest of us
who come from Scotland and England. Im-
migrants don’t take our jobs, they create
our jobs.
In the last year we taught over 1,000 peo-
ple repair skills from upholstery to computer
repair. We charge on a sliding scale: offer-
ing a free weekly repair surgery at our new
base, the Edinburgh Remakery in Leith, and
charging companies and other organisa-
tions to go to them to deliver repair train-
ing. In the last year alone we’ve tripled our where people can learn to fix computers,
diversion of waste from 70 tonnes to 250. furniture and clothes, rent workspace, and
This is partly thanks to a partnership with lo- buy affordable, ethical computers and furni-
cal charity CHAI, and in return for them pro- ture. And they’ve had some able assistance
viding us with furniture we’ve helped them towards the project by none other than re-
retain two jobs and continue to provide free cent Incubation graduates Edinburgh Tool
furniture to vulnerable people across Edin- Library and Upcycled World!
burgh.
We had funding to open the new centre
from Zero Waste Scotland and Edinburgh
Council, which has been invaluable, but we
receive over 50 per cent of our income from
business activities, and are on track to in-
crease this to 80 per cent by 2018.”
Here’s a lovely example of collaboration in
action: Remade in Edinburgh have recently
opened the Edinburgh Remakery: a centre
131
SIP GUIDE UK

VOX LIMINIS

Vox is exploring the potential of the creative arts to spark the imaginations of all
those involved in rehabilitation and reintegration in criminal justice. When working
with individuals in the penal system, Vox’s activities help them to find ways to en-
gage, developing their skills and motivation and abilities to work with others. When
working with prisoners and their families together, Vox Liminis strengthens and re-
news the family relationships critical to children, parents and carers alike, helping to
reducing reoffending. Vox also seeks to engage the wider community in playing its
part in supporting ex-offender reintegration.

Vox Liminis is playing a significant role in the rehabilitation of the criminal justice
system in Scotland, by creating spaces where differently situated people communi-
cate and connect in new ways through the arts, and can imagine a more positive and
human future together.

132
• Distant Voices involves songwriting
with prisoners, former prisoners, criminal
justice practitioners (prison officers and so-
cial workers) and academics in workshops
called The Vox Sessions – the songs are then
shared widely
• KIN is a project designed in partner-
ship with Families Outside, working initially
with 10 young people affected by parent or
sibling imprisonment to share their experi-
ences by creating work with artists
• In Tune supports family relations
while a parent is in prison through creative
arts. In Tune (again with Families Outside) is
a project that brings the imprisoned parent,
their children and primary carer together for
whole-family music making in prison
• Unbound is our weekly meal and cre-
ative making gathering for all involved in
Vox Liminis, building community with differ- reintegration is a complex and multi‑direc-
ently situated people in the criminal justice tional process, not solely the responsibility
system of the ex/offender, but also the work of the
family, community and society to which peo-
All of this is based on a belief that rehabili- ple return. We believe that to work towards
tation and reintegration of offenders is only a more just society through the arts, all of
possible by working together with people these very different people, cultures and in-
with convictions, their families, artists, crim- stitutions need to be involved in the process.
inal justice practitioners and other partners
– building community and collaboration
with perhaps unlikely collaborators.
All of this work is rooted in working together
with people with convictions, their families,
artists, criminal justice practitioners and oth-
er partners, building community and collab-
oration with perhaps unlikely collaborators.
We recognise that successful re‑entry and
133
SIP GUIDE CZ

3
C H A P T E R

THE SIP TRAINING

EXPERIENCE
IN THE
CZECH REPUBLIC

134
135
SIP GUIDE CZ

TRAINING PILOTING SUMMARY

CONTENTS COURSE SCHEDULE business. One of the purposes is to use the

Course schedule
Delivery method
Schedule of the training sessions
Individual & group counseling
The Social Innovators Programme pilot
training course in the Czech Republic has
been designed for 10 training sessions,
each lesson lasting 6 hours. There were 3
training courses series in 3 different Czech
(respectively Moravian) regions – Ostrava,
Šumperk and Lipník nad Bečvou. First two
courses in Šumperk and Ostrava were or-
ganized during summer and autumn in year
2016, third course took place after study visit
to Edinburgh completion (and after meeting
social innovators from UK) in spring 2017 at
Lipník nad Bečvou.
The main aim of the courses was to teach
participants how to process their social in-
novation / business plan and what steps
are necessary to properly start their social
knowledge and skills of local people as well
as use the ideas of the youth or unemployed
who want to change their own situation and
the successive steps - achieve positive ef-
fects - improving or solving their needs in
the labour market.
The target groups were addressed through
several tools and information channels:
• Special section / bookmark on exist-
ing web pages,
• Leaflet,
• Regional offices and contact points of
the labour offices,
• Partners’ information channels and
key stakeholders in a given region (web-
sites, emails, etc.)
• Stakeholder’s information channels

136
(Universities, non-profit organizations).
• Introductory information meeting.
DELIVERY METHOD
The SIP training course consisted of 10
sessions – 8 were theoretical sessions and
last 2 sessions were organized as practical
field-exit sessions.
The course delivery method combines 3 dif-
ferent approaches:
1. Facilitation by the trainer,
an expert in non-formal education
The trainer used non-formal education and
experiential learning methods to facilitate
the process of identification of a social in-
novation idea and its passing through each
stage afferent to its development, from ide-
ation to building an implementation plan.
2. Theoretical session with speak-
ers that are experts in the fields ap-
proached every day
Each lecturer was given the initial materials
in order to relate to the content thereof. The
training materials were based on the funda-
mental materials prepared by the UK proj-
ect partner which were supplemented by
the trainers with the Czech situation state of
the art in the relevant field - especially leg-
islation and accounting, business plan “step
by step”, as well as issues of social innova-
tion and social entrepreneurship marketing,
grant resources, personal development, etc.
After every course module, the participants
were given the used materials in order to
assimilate the information received during
the course and the speaker sessions.
3. Outbound training
Last 2 sessions were organized as field-ex-
it sessions when the course´s participants
were invited to stay overnight for 2 days to
better know each other (teambuilding) as
well as their business plans. The content of
this 2-day session was following:
• Own business plan creation / final-
ization,
• Fulfillment of assigned homework
and workouts,
• Continuous consultations of com-
piled business plans.
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SIP GUIDE CZ

During the field-exit sessions the participants have finalized their social business plans and were invited to present them in front of the lecturers
and other participants who had opportunity to listen the ideas of others & discuss them publicly. It has provided a secure environment with the
support of a group of people who are confronted with the same problems and want to combine their enthusiasm and experience. Within the
framework of a mutually supportive environment, the participants´ business activities may develop.

PHASES OF SUPPORT FOR SOCIAL BUSINESS START UP

Education:
• Business fundamental principles,
• Theoretical preparation with practical market research – from
EDUCATION
business idea to business plan,
• Individual and in group counselling.

„Coaching & testing“:

• experimenting with a business plan in a real market
environment,
• providing law, accountancy and other supplementary services,
• coaching and mentoring during whole emerging phase.
“

Business - „self-employment “:
S E LF USI
G“

• Development of self-employment - by establishing a company

G

EM N
B
IN
IN

PL ESS

or organization,
ST
O &
CH

O
E
A

YM
T

• applying to the labour market if the participant decides not to

“C

EN

continue to implement an innovative plan.

T”

138
SCHEDULE OF THE TRAINING SESSIONS:
Day 1: Introduction to the Social Innovation
issues
Day 2: Leadership & Peer Support
Day 3: Legal structure & administration of
Social Enterprises &Social Innovations
Day 4: Ideation in Social Enterprises &
Business Model Canvas
Day 5: Access to finance for Social Enterprises
& Social Innovations
Day 6: Introduction to Marketing, Branding
& Social media
Day 7: Pitching of Social Enterprises
Day 8: Impact measurement of Social
Enterprises & Social Innovations
Day 9: Preparation & Finalization of Business
Plans
Day 10: Retaining of Business Plans
INDIVIDUAL & GROUP COUNSELING
The themes of the consultations were
based on the specific needs of the project
participants who decided to implement their
business plan:
• The business start-up area (marketing,
law, accounting, etc.)
• Feedback from the expert team of the
Institute of Social Innovation and Lecturers,
Basic principles of providing advice:
• All project participants who have
chosen to implement their planned
innovation plan are eligible for the
consultancy.
• Regular consultation hours (1/ month)
were listed for participants.
• Consultation will take the form of
individual and group consultations.
• It was partly within the educational
part but also in the follow up stages.
More information about facilitating counseling
sessions is available in the section dedicated to
Coaching and Mentoring.
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AGENDA OF THE TRAINING COURSE
10 DAY TRAINING COURSE AS PILOT-
ED DURING THE SOCIAL INNOVATORS
PROGRAMME IN THE CZECH REPUBLIC
DAY 1: Introduction to the Social
Innovations issues
Introduction and context of Social
Entrepreneurship and Social Innovations
Introduction to exercise
Exercise - Creating connections and shared
understanding of social innovation
SI case study – educational and creative
programs for children
Exercise 2 - Exploring conditions that enable
social innovation to flourish
DAY 2: Leadership and Peer Support
Welcome and overview
140
Self-Awareness
Communication
Leadership / Teambuilding
Planning / Goal Setting
Exercise – Ideas for personal development
plan
Positive and negative synergy in the team
Conflict and its solution
DAY 3: Legal structure, management
and administration of Social Enterprises
and Social Innovations projects
Legal Structures
Commercial Code
Appropriate Legal Structures for Social
Enterprise in the Czech Republic
Introduction to organization´s administration
DAY 4: Ideation in Social Enterprises
and Business Model Canvas
Introduction and context
Exercise 1 – Brain writing/Brain walking
Introduction to Exercise 2
Exercise 2 - Problem Re-Definition
Introduction to Business Model Canvas
Business Model Canvas preparation for
selected product or service
DAY 5: Access to Finance for Social
Enterprises and Social Innovations
Introduction to funding and investment
Project and project cycle
Exercise – public grants, subsidies
Project applications for funding
Exercise 2: Project Logframe
DAY 6: Introduction to Marketing,
Branding and Social Media
Marketing Theory
Module 1: Introduction to non-profit
Marketing
Exercise 1: a working example
Module 2: Introduction to Branding
Exercise 2: Case study Amnesty International
Module 3: Introduction to Social Media
DAY 7: Pitching and Public Speaking
Motivation and communication
Use of acquired skills into practice
Exercise – Estimate your strength in
communication
Introduction to pitching
Exercise – preparation of the pitch
Testing of prepared pitches
DAY 8: Impact Measurement of Social
Enterprises and Social Innovations
Introduction and overview of Social
Enterprises and Social Innovations impact
measurement
Social impact measurement
SROI and Social Accounting
Final two days-lasting field-exit session:
DAY 9: Preparation and Finalization of
Business Plans
DAY 10: Retaining of Individual Business
Plans
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SOCIAL INNOVATION

WELCOME

Aim:
• To introduce/remind people about Social Innovation
• To assist people in determining whether this Social Innovation training course
will be suitable and of benefit
• To help and encourage people to decide to sign up

Today’s facilitators are:

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142
AGENDA:
0.30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and scene setting
0.15 – 2.30 – Introduction and context
2.30 – 2.45 – Introduction to exercise
2.45 – 3.30 – Exercise - Creating
connections and shared understanding of
social innovation
3.30 – 3.45 – Break
3.45 – 4.30 – SI case study – educational
and creative programs for children
4.30 – 5.10 – Exercise 2 - Exploring
conditions that enable social innovation to
flourish
5.10 – 5.30 – Feedback and next steps
5.30 – 6.00 – dinner/snack and
networking
Slide 1.3
SOCIAL ECONOMY - THEORY of entrepreneurship spirit and respect to
public interest.
• SE´s task is to search and create oppor- • It is necessary to stimulate SE from pub-
tunities for the individuals in the risk of lic sources – state administration and
social exclusion. It is mainly about labour self-government.
market stimulation.
• SE generates economic activities for tar-
get groups when applying advantageous
conditions.
• SE interests in creating profit but its max-
imization or turnover are not priorities.
Created profit is preferentially re-invest-
ed for the profit of SE target groups.
• SE is based on social values – solidarity,
cohesion and responsibility.
• SE is promoted through democratic
management, citizens participation on
entrepreneurship and decision making;
Slide 1.4
and autonomy based on a combination
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SOCIAL ECONOMY - DEFINITION

PHASES OF THE APPLICATION OF SOCIAL ECONOMY PRINCIPLES SOCIAL ECONOMY DEFINITION:

• Assistance to individuals threatened on labour market to find

suitable forms of their (self)employment and creation of conditions
Education, for a sale of their products and services.
coaching and • SE creates social enterprises which offer social, health,
mentoring consultancy, educational and other services, or provide sales of
their own products thanks to which are employed target groups
threatened on labour market.

1 2
• Target groups Social
• searching and etrepreneurship
• identification
3

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SOCIAL ECONOMY VS. SOCIAL ENTREPRENEURSHIP

BASIC ELEMENTS OF SOCIAL ECONOMY

Sustainable
Equal Democratic Sustainable
Use of Natural
Opportunities Management Developement
resources

Support to Specific
Use of Local Public
Local Products or
Sources support
Development Services

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DEFINITION OF INNOVATION -
THEORY
• Innovation is a purposed change designed
by man which is related to products
(launch of new products or significantly
improved into manufacturing or market),
manufacturing procedures (processes),
method of working or producing (new
solutions of working structure) and
management methods used for the first
time at least on the institution level.
(www.inovace.cz).
• Innovation is a successful use of new
ideas.
• „Innovation is a modernization or
widening range of products or services
and its connected markets, creation
of new production methods, supplies
and distribution, introduction of
management change, working methods,
working conditions and labour force
qualification” Definition of innovation
according to the EC document COM
Slide 1.7
146
(2003) 112, the same definition is used
also in the National innovation strategy
of the Czech Republic, Prague 2004.
TYPES OF INNOVATIONS
A/ Technical nature
• Based mainly on the research
• B/ Non-technical nature
• In the field of organization and
management (new methods of the work
organization, quality management,
process management, strategic planning,
etc.)
• Market innovation (recyclable products,
sustainable development)
• Business model innovation (IT use, social
networks)
• Presentation innovation (complex term
for innovations in the field of design and
marketing)
Slide 1.8
DEFINITION OF SOCIAL INNOVATION-
THEORY
• Objective is a utilization of knowledge
and skills of local community.
• Thus it is about new ideas, institutions
and working methods which brings
positive impacts, improve or solve needs
of local community or whole society.
• Transferability – It is not always about
completely new ideas but also about
implementation of successful innovation
which has been applied elsewhere.
• Social Innovations are applied in the
fields like education, health, social
services, public policy, decision making
processes, management, etc.
• Innovation does not have to have
necessarily character of new product or
service.
Slide 1.9
SOCIAL INNOVATION IMPORTANCE
• Innovation is deliberate and
advantageous change of state/
approach.
• Result of implemented changes must
be technical, economic or social
benefit (improvement in comparison to
previous situation).
• Innovations are based on new ideas,
approaches, and methods.
• Innovations are based on knowledge
and skills of people.
FOR
WHOM
HOW
WHAT
WHY WHO
Slide 1.10
SOCIAL INNOVATION EFFECTS
• Higher effectivity of local sources usage
(human, natural, cultural, financial).
• Space and platform for new ideas/
projects implementation.
• Savings: financial (costs) and non-
financial (savings in human resources -
higher labour productivity).
• Innovation – change of working
process.
• Higher sales of products, services,
program outputs, projects – networks
and cooperation).
• Strengthening of social capital in
region (thickening of personal relations,
cooperation, etc.).
• New markets´ creation (local
dimension – regional interconnection).
Slide 1.11
SOCIAL INNOVATION BARRIERS
• Insufficient creativity – ideas
• Insufficient resources for SI introduction
– too high innovation costs
• Excessive economic or other risks
• Lack of qualified workforce
• Low interest of users/customers in new
products and services
• Non-flexibility / rigidity of institutional
structure
! Innovation does not mean that
recently used effective methods should
be abandoned !
Slide 1.10
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SIP GUIDE CZ
WHY?
Nearly all innovation policy is tailored to the
needs of traditional for-profit science and
technology-based innovation. However,
meeting the economic and social challenges
of the coming decades will increasingly
require fundamental improvements in
public services. Social innovation is critical
to this process.
Currently, the field of social innovation is
poorly understood. There are some great
practical examples from all over Europe
to show how localities can use innovative
approaches to transform public services.
Social innovation is driven by having the
right strategies and organisations to marry
real social needs with new, workable ideas
to address them. But there are too few
intermediary bodies to match the supply
of new ideas to the demand for them.
Funding is patchy, and there are insufficient
incentives for public service managers to
seek new and improved solutions.
Slide 1.13
148
WHY & WHY PERHAPS NOT?
Social innovations in one field can be spread
to other areas of public services provision.
Funding is important, but not the main driver,
and social innovation can occur anywhere
– even in areas without a long tradition of
‘thinking differently’. Most importantly, by
making changes to leadership, incentives
and funding, national governments could
rapidly transform a country’s ability to
innovate socially.
Innovation in public services can reduce
costs and improve performance. Social
innovations can take several forms. These
include public sector innovation within
public services, to improve performance
or save money, and innovation in the
non-profit or for-profit private sectors that
improves public services or provides new
ones. Social innovations from the third
sector (voluntary and community groups,
and social enterprises), may be ‘spun-in’ to
mainstream public services provision.
Slide 1.14
WHY PERHAPS NOT?
Insufficient understanding of the drivers
of innovation. Social innovation has
lacked systematic or strategic support and
evaluation, unlike advanced technology, or
other areas of innovation. There is limited
evidence on the drivers of social innovation,
although some have been identified (for
example, charismatic leadership and an
organisational culture that encourages
creativity and experimentation). However, to
date, the field has largely remained on the
‘fashionable margins’ of serious research.
A lack of intermediary bodies to
facilitate the growth and dissemination
of innovation. There are currently too few
intermediary bodies connecting the pull
and push of the social innovation system.
Correctly established, they can facilitate
flows of knowledge, resources and best
practice,5 and support organisational
growth – for example in mobilising
Slide 1.15
important allies. Broker agencies like the
Young Foundation can cultivate and nurture
social innovation. Their flexibility creates
space for creativity, experimentation and
innovation, but they cannot substitute for
the involvement of organisations with more
power and resources (often governments)
when the time comes for full-scale policy
development and implementation.
Fragile markets for the results of social
innovation. Social innovation, particularly
in public services provision, does not offer
profit-led investors the potential returns
associated with other innovative areas like
advanced technology. Until recently, this
has meant a lack of capital to fund growth
in social organisations, underdeveloped
capital markets to provide finance for social
entrepreneurs, and fragile markets for the
results of social innovation. Even the most
successful innovations are not guaranteed
reliable funders and purchasers.
Slide 1.17
Local social innovation is hidden in
traditional metrics and policy. Much
social innovation starts locally (grassroots,
practitioner, local authority leadership, local
champions). As a result, it can be hidden from
policymakers and researchers. Traditional
innovation metrics, rooted in the Frascati and
Oslo manuals were developed to measure
scientific and technological innovation in hi-
tech fi rms. The many intangible gains from
social innovation make such metrics largely
unsuitable measurement tools. Because
these metrics are so important in setting
and evaluating traditional innovation policy,
social innovation is often excluded from
mainstream policy development.
WHAT?
Social innovation seeks to create
transformational change which tackles
social problems and improves life for the
people who experience problems.
Social innovation most often uses what
some people call “combinatorial creativity”
- bringing together thinking, experience
and perspectives from a range of disciplines
to create new inspiration.
Social innovation is not only about
technology - although technology can be
transformational - it is more often about
changing the way that things are done,
particularly in the social sectors. It is also
about ingenuity - the ability to bring about
different, better results with the resources
we have to hand.
Many times community development is
combined with social innovation - bringing
together ‘people skills’ with creativity - to
develop solutions which can be tested and
adapted until they are replicable models.
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WHAT? advanced economies, the biggest sector is

health.
Social innovation is about developing new
ideas to tackle social problems or meet UNDERSTANDING
social needs. It may be a new product,
service, initiative, organisational model or • An inter-sectoral approach
approach to the delivery of public services. • Are launched by a variety of actors,
Some social innovations are modest and including research institutions,
incremental; others are systemic and companies or independent organisations
fundamental, such as the major shifts • Focuses on the process of innovation,
required to move to a low carbon society. how innovation and change take shape
Other examples include new services (like • Focuses on new work and new forms
NHS Direct in the UK) and new social of cooperation (business models),
enterprises (like The Big Issue – a magazine especially those that work towards a
sold by homeless people in the UK). sustainable society.
Social innovation relates to a country’s
biggest problems, in its biggest sectors
Several of a country’s barriers to sustainable
growth, such as climate change or the
challenges of an ageing population, will
only be overcome through innovation.
In 21st century economies, the biggest
sectors are more often services than
traditional manufacturing. Indeed, in most

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150
SI FORMULA

SOCIAL
CREATIVITY CONNECTIONS VALUE
IMPACT

CONDITIONS FOR SI TO FLOURISH

• Encourage
• Foster connections, creativity and generation of ideas
• Cultivate local solutions
• Create safe places
• Invest in social innovation

Slide 1.22

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EXAMPLES OF SI SOLUTION CONDITIONS FOR SCALING UP SI PHASES IN SI LIFECYCLE

EFFICIENCY Four conditions for scaling up social
innovation - Four conditions are essential
• Less material for non-governmental bodies to develop
• Lower weight sustainable and socially innovative products,
• Lower costs services and models on a large scale:
• Demand for innovation generated by
EFFECTIVENESS real social needs – the ‘pull’.
• A supply of workable (and communicable)
• Better grip ideas – the ‘push’.
• Easier opening • Connecting the two with the right
organisational form.
• Ongoing organisational ability to learn
and adapt to the evolving external
environment.
Phase 0: The ‘latent’ stage, normally
a period of underperformance before
innovation occurs.
Phase 1: A strategy and process for
innovation is developed in the ‘design and
discovery’ phase, often prompted by a
crisis.
Phase 2: A period of ‘mobilisation’,
generating new structures and teams
to pilot innovative ideas and start
implementing innovations.
Phase 3: Innovation then enters the
‘mainstream’, when it becomes routine
as ideas and working practices are
consolidated.
Phase 4: Finally, ‘embedding’ – the
value of the innovation grows; systemic
innovation may occur if the locality can
replicate innovation in other services.
An innovation will not automatically
progress to the next stage – at each point
of transition the process may fail or reverse

Slide 1.23 Slide 1.24 Slide 1.25

152
DRIVERS AND ENABLERS differently and require different emphases
from would-be leaders of social innovation.
When a public service is failing or in crisis,
recognition of underperformance is SOME EXAMPLES
a primary driver of innovation. External
agencies like the Audit Commission or
Ofsted can force this on a locality. Pressure • Innovation in public services
may also come from the public, media or
business. This then legitimises action by • Social entrepreneurship
internal and external stakeholders.
Pressure to change is not a sufficient • Open source
condition alone for innovation.
Strong leadership is required to initiate • On-line volunteering
change and encourage a responsive
organisational culture that supports • Microfinance
risk taking and creativity from senior
management and frontline staff. Networks • Socially responsible investing
collaborate to facilitate innovation. The
capacity to mobilise resources reinforces • Habitat conservation plans
change. Reflective learning and public
feedback help maintain momentum.
Visibly creating results for the public builds
legitimacy.
In each phase, these factors interact

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SOME EXAMPLES EXERCISE 1 - CREATING CONNECTIONS

AND SHARED UNDERSTANDING OF
SOCIAL INNOVATION

• Working in groups

• You’ll be handed cards

• Write down as many examples you can

think of that are social innovation – name,
organisations involved, brief description.
These can be from [own country] or from
other countries

• Note at what stage of the SI process they

are at (from prompt to system change)

• Mark with a tick in the relevant quadrant

to indicate whether the SI is public/
private, open/closed

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 EXERCISE 1 - CREATING CONNECTIONS
AND SHARED UNDERSTANDING OF
SOCIAL INNOVATION

Name of si Orgns involved

Description

Stage How social

Proposal

In what way is it social?

Prompt
What stage is it at?

Prototype Social
Ends
purpose

Means
System
Sustain Change

Scale Slide 1.30

Closed/expert process

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CASE STUDY OF SIMPLE SI SI CASE STUDY (2) SI CASE STUDY (3)

AIM: entertaining educational

programs for children focused on
positive perception of books and
children reading, imagination and
creativity

ENTERTAINING EDUCATIONAL
PROGRAMS for children from
kindergartens and primary schools
• One time programs
• Author´s reading (Rainbow-like
Vandílek, Christmas Vandílek)
• How a book is created
• Suburban camp – Course of creative
Vandílek: writing for children „We write
Entertaining educational with Vandílek“
and creativity • Biannual club - Club of creative writing
for children
programs
for children SALE

• Sale of books and gift items

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SI CASE STUDY: SWOT ANALYSIS SI CASE STUDY: BUSINESS TERRITORY SI CASE STUDY: CUSTOMER ANALYSIS

Strengths Weaknesses ENTERTAINING EDUCATIONAL ENTERTAINING EDUCATIONAL

  PROGRAMS PROGRAMS
- Uniqueness and - It is not fundamental • All three educational activities will be • One time programs
human need
attractiveness offered (at least at the beginning) in the • Children in the age from 3 to 10
- Moral value and - Irreplaceability of
key persons involved City of Brno. years – final consumers (City of Brno:
meaningfulness
- Accessibility (author and illustrator) PRIMARY SCHOOLS 33.754 children)
- Contacts´ network and reliance on them KINDERGARTENS • Parents and caretakers – the payers
- Copyrights ownership • Further consideration: (number equals to number of children)
• Brno surroundings • Primary schools and kindergartens
• Prague – ordering service (237 institutions in
• Mahen´s library (main library in the the city of Brno)
Opportunities Threats
   
Southern Moravia region) and its
branches Suburban camp – Course of creative
- Demographic - Poor economic • Festivals and traditional pilgrimages writing for children „We write
evolution (huge target situation • Summer camps for children with Vandílek“
group thanks to the - High number of • Children in the age from 8-12 years
population growth in programs targeting
last years)
SALE – final consumers (City of Brno: 18.359
children
- Trend of non- children)
traditional education • Connected to the educational • Primary schools and kindergartens
programs – thus business territory – ordering and paying service
corresponds to programs. (number equals to number of children)
• E-SHOP.

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Biannual club - Club of creative writing SI CASE STUDY: SUPPLIERS ANALYSIS

for children
• Children in the age from 8-12 years –
final consumers (City of Brno: 18.359 Exclusive suppliers:
children)
• Primary schools and kindergartens • Author of the books for children
– ordering and paying service • Illustrator
(number equals to number of children) • Publishing company Metoda Ltd.
• Creation and administration of web
SALE pages
• Customers are mentioned above and
as a surplus other individuals visiting
kindergartens, primary schools or web
pages

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ENTERTAINING EDUCATIONAL PROGRAMS FOR CHILDREN FROM KINDERGARTENS AND PRIMARY SCHOOLS

• One-time programs
• Author´s reading (Rainbow-like Vandílek, Christmas Vandílek)
• How to create a book
• Suburban camp – Course of creative writing for children „We write with Vandílek“
• Biannual club - Club of creative writing for children

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SI CASE STUDY: SALE

Books and gift item with the theme of

Vandílek Angel:

• Book

• Pairs cards

• T-shirt

• Figurine

• Notebook

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160

SI CASE STUDY: MARKET PLAN
The mode of addressing customer and
sale:
• E – mail (covering letter)
• Leaflets
• Contacts´ network
• Facebook, web pages
• Positive references, rumours
• Goods exhibition
• Engagement into the campaign “Whole
Czechia reads to children
Slide 1.41
SI CASE STUDY: PRICE
ENTERTAINING EDUCATIONAL
PROGRAMS
One-time programs 1.500,- CZK /per
group (25 children) surcharge
50,- CZK/ per additional child (maximum
30)
Suburban camp 2.500,- CZK /
per group of 10 children
Biannual club 1.400,- CZK /
per group of 10 children
SALE
Book 179,- CZK/pc. 3 in 1
Notebook 30,- CZK/pc. package 3 programs/half-year
Figurine 300,- CZK/pc. Price 3.900,- CZK/group
Pairs card 30,- CZK/pc.
T-Shirt 200,- CZK/pc.
Slide 1.42
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SI CASE STUDY: MARKET LAUNCH AND EXERCISE 2 - EXPLORING CONDITIONS

NECESSARY INVESTMENTS THAT ENABLE SOCIAL INNOVATION TO
FLOURISH
Market Launch
• Working in different groups
• mobile telephone, PC, printer, financial • You’ll be handed the cards back
input 20.000,- CZK • Read the cards and look at the Social
Innovation listed and description
Necessary Investments • On the reverse of the cards note why it
is social innovation and why it is needed
• Fee for trade license (eventually other • Mark whether you think the SI has the
administration fees) opportunity to be adopted (if from a
• Purchase of work aids and office supplies different country or sector), adapted
• Promotion costs (changed to work with a different issue
• Liability Insurance or target group) or scaled up
• Purchase of books and gift items

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EXERCISE 2 - EXPLORING CONDITIONS
THAT ENABLE SOCIAL INNOVATION TO
FLOURISH
Why the example is Social Innovation
FEEDBACK AND WRAP UP
• Please feed back on examples of Social
Innovation presented
Why needed?
• Are there any of these that could work
for you?
• Do you think that there are still gaps and
how could these be overcome?
• Can you think of other Social Innovations
you could develop?

FURTHER INFORMATION AND NEXT

Opportunity to adopt? STEPS
Opportunity to adapt?
Opportunity to scale up? If you’d like to find out more about the Social
Innovation programme and be considered
Yes No Maybe to be a delegate please speak to your
facilitators or contact:

Slide 1.45 Slide 1.47

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INTRODUCTION TO MARKETING, BRANDING AND

SOCIAL MEDIA

WELCOME

Aim:
• To introduce attendees to the concepts of marketing, banding and social media
• To equip attendees with knowledge and tools to develop their own social brand,
marketing campaign and social media strategy

Today’s facilitators are:

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164
AGENDA: MARKETING STRATEGY - THEORY

0.30 – 0.00 – Arrivals and refreshments Marketing of a social enterprise or organi-

0.00 – 0.15 – Welcome and energisers zation becomes an element which funda-
0.15 – 2.00 – Marketing Theory mentally influences its success on the com-
2.00 – 2.15 – Break petitive market. Its position on the market
2.15 – 3.00 – Modules 1: Introduction to may be demonstrated by the following illus-
non-profit Marketing tration.
3.00 – 3.30 – Exercise 1: a working
example
3.30 – 3.45 – Break
3.45 – 4.30 – Module 2: Introduction to
Branding
4.30 – 4.50 – Exercise 2: Case study
Amnesty International
4.50 – 5.00 – Break
5.00 – 5.45 – Module 3: Introduction to
Social Media
5.45 – 6.00 – Feedback and next steps

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MARKETING STRATEGY - THEORY (3)
Value for customers:
Key aspect when composing marketing
strategy is customer´s identification and
creation of the value for the customer
(„VfC“) by formula
it is clear that the efforts to maximize the
value by the customer have the limits:
Not-required, i.e. too high or, on the
contrary, too low amount of customers´
required benefit.
Customers´ buying power.
MARKETING STRATEGY – THEORY (5)

Ʃ expected value for customer On the path to maximize the value for the
VfC = customer product´s value cannot exceed
any of required limits. We have to choose
Ʃcustomer´s costs following approach:
1. Optimization (not maximization) of
MARKETING STRATEGY – THEORY (4)
benefit that the product or service offer.
2. Optimization of costs with the inclination
Value is not an absolute quantity but
to minimize them.
comparative. Needs and financial situation
The value for customer grows in the following
are changing with different customers. Keys
5 cases:
for the differences are based on diversity
of customers´ motivations on preferences
and rate of customer´s needs satisfaction.
Natural economic behavior of each customer
is to achieve maximum satisfaction of his/
her needs within his/her budget. However

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166
MARKETING STRATEGY – THEORY (6)
Possibilities of the customer´s value
growth:
1. Faster growth of the benefits (customer´s
satisfaction) with slower growth of costs.
2. Growth of the benefits (customer´s
satisfaction) with the same costs.
3. Growth of the benefits (customer´s
satisfaction) with the costs decrease.
4. The same benefits (customer´s
satisfaction) with the costs decrease.
5. Slower decrease of the benefits (customer´s
satisfaction) with faster decrease of costs.
Slide 1.9
MARKETING STRATEGY – THEORY (7)
Five above mentioned approaches to
the growth of the value for customer can
be described even more precisely by the
strategic approaches of the organization to
the market:
1. Strategic approach „More for (even)
More“.
2. Strategic approach „More for the Same“
. quality. Products & services falling into
3. Strategic approach „the Same for Less“.
4. Strategic approach „Less for (even) Less“.
5. Strategic approach „More for Less“
MARKETING STRATEGY – THEORY (8)
1. Strategic approach „More for (even)
More“.
More for More – it is a strategy of such
organizations that have in their portfolio
unique product or service and ask high price
to cover the production costs. Such products
usually falls into the category of luxurious
goods, they are supposed to be better in the
performance characteristics, better quality,
design, style, durability etc. The price very
often significantly exceeds truly declared
this category are often vulnerable – they
attract imitators offering similar products
for lower price. The luxurious goods are
also jeopardized in the periods of economic
crisis.
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SIP GUIDE CZ
MARKETING STRATEGY – THEORY (9)
2. Strategic approach „More for the Same“.
More for the Same – Some organizations
succeed to attack the label of the strategic
approach „More for More“ in the way that
they introduce to the market a product with
higher quality and performance for the
same price. Afterwards it is up to customer
to compare it he/she really gains higher
benefits purchasing this new product.
MARKETING STRATEGY – THEORY (10)
3. Strategic approach „the Same for Less“.
The Same for Less – one of the most
common strategies used by the startups. It
is based on the idea that customer will be
pleased to get the product or service of the
same quality for lower price. The enterprises
are trying with this approach to convince
customers that they are able to offer the
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products or services of the same quality and
help them to save the money in the same
time.
MARKETING STRATEGY – THEORY (11)
4. Strategic approach „Less for (even) Less“.
Less for Less – second most common
strategy used by the startups. The concept
complies with the customers complaining
that they get from some producers more
benefits in the products they ask for and are
obliged to pay higher price.
MARKETING STRATEGY – THEORY (12)
5. Strategic approach „More for Less“.
More for Less – it is clear that the best value
proposition would be to offer customers
„More for Less“. The success of the stores
with so called “commodity killers” is based on
this strategy. Such store is operated by some
wholesalers purchasing from the producers
huge quantities of products to gain very
competitive prices and subsequently they
are able to sell with very low commercial
surcharges or fees.
MARKETING STRATEGY – THEORY (13)
Portfolio of products / services
Portfolio´s evaluation is carried out on
strategic business units. It is evaluated
which strategic business units are going to
be built, kept and liquidated.
Several models have been created to
evaluate strategic business units. A matrix
of Boston Consulting Group (BCG) is well-
known globally. The matrix displays strategic
business units comparing rate of market
growth & relative market share (ratio of our
sales to the sales of our biggest competitor).
Slide 1.16
MARKETING STRATEGY – THEORY (14)
The BCG matrix is divided into 4
quadrants:
MARKETING STRATEGY – THEORY (15) rates. The dogs produce low profits
or even losses. It is possible to sustain
• Quadrant QUESTION MARKS are dogs in the business if you expect
such products which are realized on positive changes in their market share.
the fast growing markets but they Otherwise you should get rid of them.
have relatively low market shares. The
enterprise would have to invest into
this business. It is questionable how the
business will develop in the future. This
is why question marks.
• Quadrant STARS are such products
that pass to this quadrant usually from
question marks´ quadrant. The starts
are the most often profitable however
requires investments to prevent
competitors´ attacks.
• Quadrant CASH COWS produces
positive cash flow for the organization.
Cash cows does not require investments
as the pace of the market growth has
decreased.
• Quadrant DOGS represents such
businesses that have low market
shares on the markets with low growth

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MARKETING STRATEGY – THEORY (16)
Before elaborating BCG matrix it is necessary
to analyze also external environment of
the enterprise (market share, competitors´
behaviors, market´s potential etc.). SWOT
analysis is a common tool to analyze
internal & external environment of the
enterprise. Based on the outcomes of the
SWOT analysis the company can formulate
its growth potential and strategic objectives.
In practice we can notice that very few
organizations are following only one
objective. Most of the organizations
follow combination of objectives including
profitability, sales´ growth, market
share´s growth, number of implemented
innovations, enterprise´s image,
environmental protection, social aims etc.
To achieve the objectives by the target
management it is necessary to structure
them hierarchically. The objectives have to
be quantified and transformed to real tasks
(necessary to design process models). They
170
have also to be harmonized as many of of addressing whole market. All efforts
them are substitutes (if we want to achieve are concentrated on selected market
one objective we have to repress the other segment and to achieve a leadership in
one, for example high market share vs. high this segment.
profitability).
MARKETING STRATEGY – THEORY (17)
In the last development basically three
approaches were formulating in strategy
preparation:
• Costs priority – in this case the enterprise
aims to achieve the lowest possible costs
of the production and distribution and
in this way offer to the customers lower
price than its competitors.
• Differentiation – in this case the enterprise
focuses on optimal performance to the
value for customers. It might be in the
sphere of service, technical level, quality
of production, social value etc.
• Concentration focus – in this strategy
the company orients on one or more
narrow segments of the market instead
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MARKETING STRATEGY – THEORY (18)
Management of customer´s relationship
The part about the quality of customer´s
relationship management is possible to
start by quoting prof. Kotler, word famous
marketing guru:
„Today´s marketing becomes a battle in
which the ownership of the information more
than other resources is playing a leading
role. The competitors may copy one from
another equipment, products and processes
but they are not capable to copy enterprise´s
information and intellectual capital. The
content of enterprise´s information may
pose the main competition advantage“.
Thus it is essential to implement the tools
for customer´s relationship management.
The database softwares of the CRM type
(Customer Relationship Management) are
used in practice. Some SWs are freewares
accessible online (CRM Sugar, CRM Vtiger)
Slide 1.21
and can be sufficient for the startups, other
CRM softwares require to purchase the
license.
MARKETING STRATEGY – THEORY (19)
CRM systems back up all communication with
the customers, enable to store attachments
(i.e. contracts, calls recording, minutes from
the meetings, videoconference calls etc.).
Thus the organization gains central file of
all activities which might be share by several
employees. The benefits of this approach
are apparent also when the employee
leaves the organization as the know-how
will remain. CRM also directly influences
the behavior of new customers.
Decision-making process of a customer is
well-known and targeting of the marketing
activities in this process is timed carefully.
It is important to target especially the last
stage, i.e. behavior after purchase which
can positively motivate other customers and
create so called reference market.
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MARKETING STRATEGY – THEORY (20) structure and classify these activities.

Professor McCarthy proposed at the

Marketing mix beginning of 60´s marketing mix consisting
of 4Ps:
To identified customer´s needs or their
segments we subsequently construct
marketing mix of an enterprise. • PRODUCT MARKETING STRATEGY – THEORY (21)

• PRICE
Professor Borden from Harvard Business
School identified many enterprise´s activities • PLACE
to influence customers’ decision-making.
Borden indicated that all these activities • PROMOTION
represents „marketing mix“ and to achieve
maximum marketing effect such activities
have to be planned in complexity. The
enterprises should determine effectiveness
of specific tools from the view of costs
and compose marketing mix in the way to
maximize profits.
Even if marketing mix is composed from
many different activities researchers are
trying to find a classification which allows to

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MARKETING STRATEGY – THEORY (22)

Product´s life cycle

It is quite often that marketing strategy
and thus also marketing mix changes
several times during product´s life cycle.
The changes of economic changes and
competitors´ attacks are one of the reasons.
But the changes in the interests and
requirements of customers are the main
issue. This is why the organization has to
prepare different strategies for all stages of
product´s life cycle:

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MARKETING STRATEGY – THEORY (23)
Product´s life cycle is characterized by
different stages of product´s sales history.
Different opportunities and problems
influencing marketing strategy and profit
potential occur in different stages of
product´s life cycle. If the product has life
cycle it signifies:
The products have limited lifetime. The
product goes through different stages which
poses different challenges for retailers.
Profits vary in different stages.
A product requires in different stages of its
life cycle different marketing strategies.
MARKETING STRATEGY – THEORY (24)
For specific stages of product´s life cycle is
typical:
• Introduction – slow sales increase,
usually without any profit because an
introduction to the market is connected
with high costs.
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174
• Growth – the stage of fast product´s
adaptation on the market and significant
growth of the profit.
• Maturity – sales decrease connected
to product´s acceptance by majority of
potential customer, the profit is stable or
decline, marketing costs are growing.
• Decline – sales and profits declines
significantly.
MARKETING STRATEGY – THEORY (25)
Introduction stage
Introduction stage begins at the moment
of launching new product to the market.
Its sale increase slowly and sometimes the
stage may last for several years. In this stage
the profit is none or negative. The costs for
promotion, new distribution channels as well
as new customers are high. There are only
few competitors in this stage. Marketing is
aimed on the groups with higher income. In
pursuit of eliminate high costs the trend is to
keep high zone pricing.
Slide 1.28
MARKETING STRATEGY – THEORY (26)
Growth stage
Growth stage is characterized by steep
sales´ increase. First customers are satisfied
with the product and many of ordinary
customers starts to buy it as well. New
competitors access the market. They create
new attributes to the product which leads
to further market extension. The price level
stands or lightly decreases. The promotion
costs increases as well as the profits. The
growth pace starts to slow down in some
time. It is a turning point for changing the
strategy.
MARKETING STRATEGY – THEORY (27)
In certain point the sales´ increase stops
and the product enters the maturity stage.
This stage is usually longer than previous
one and thus poses a challenge for the
marketing to exploit it. Some producers
even leave the market and orient on new
Slide 1.29
products. Retailers as well as producers
should consider strategies to modify market,
modify product and modify marketing mix.
Marketing strategies in the maturity stage
are usually three:
• Market´s modification means extension
of market for your brand.
• Product modification.
• Marketing mix modification:
• Price change – not only reduction but
even possible raise connected with
the product modification.
• Distribution change – product´s
introduction into the new distribution
channel.
• Promotion changes.
• Increase of the service´s quality.
• Direct marketing.
Slide 1.30
MARKETING STRATEGY – THEORY (28)
Decline stage
Most products have limited market lifespan
and their sales fall off to minimum.
Technological progress, customers´ priorities
change or increases of competition are
the reasons. All these effects lead towards
continuous price and profit decrease.
Marketing strategies in the decline stage
have to start identifying weak products
and step by step substitute such products.
The changes of market´s environment are
simultaneous with the product´s life cycle.
COMMUNICATION TOOLS
On the basis of the theoretical approaches
and practice we can include into the most
effective communication tools:
Promotion (advertisement): Any paid
form of non-personal presentation and
product´s support by specific investor, using
mass-media, internet, posters, banners
etc. The objective is to inform wide range
of potential consumers with the aim to
influence their purchasing behavior. The
main characteristic of the advertisement is
that it addresses the general public with
fundamental information. It serves for
attracting attention and interest. This stage
cannot be underestimated.
Sale support: Short-term stimulation to
encourage purchases or sales of the product
/ service. Sale support is focused on specific
segments of distribution channels or final
consumer. It is actually a combination of
promotion and pricing policy. It tries to force
a purchaser to proceed from its interest TO
action - purchase.
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COMMUNICATION TOOLS (2)
• Public relations: Projects created to
improve, sustain or protect an image of
the enterprise or its product. It is aimed
to raise positive public attitudes.
• Sale staff (personal sale): An oral
presentation during conversation with
one or more potential customers to
support or execute product´s sale. An
advantage of the personal sale is that
the conversation is adjusted to specific
customer or situation. The customer
receives information directly from
an employee and thus strengthens
customer´s relation and loyalty to the
enterprise / product.
• Direct marketing: Direct, specifically
addressed communication between
retailer and customer performed
through post, telephone, internet, radio,
newspapers and magazines.
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INTRODUCTION TO NON-PROFIT
MARKETING
• Definition: ‘The use of marketing tactics
to further the goals and objectives of
non-profit organisations’.
• A practical definition of marketing which
suits non-profits is: ‘meeting customer
needs within the objectives of the
organisation’.
• Non-profit marketing includes
advertising, promotion, public relations,
and customer relationship management.
• The purpose of marketing is to build
awareness of an issue and to gain
financial support from the public for its
cause. Generally, the “customer” gives his
money to the organisation in exchange
for the opportunity to contribute towards
its philanthropic work. In some cases,
non-profit organisation sell products or
services in order to support their social
work.
•
Slide 1.35
MARKETING PLANNING FOR NON
PROFITS
Marketing strategies are quite beneficial for
an organisation
to effectively market itself. Things to
consider:
• Target market - develop a picture of the
person most likely
• to support you in your cause and create
promotion and advertising around that
target.
• Branding – we’ll talk about branding in
the next module.
• Offline practices - typical marketing
practices by a non-profit organisation
include large and small-scale events,
print materials, alliances and networking.
• Online practices – such as websites,
e-mail communications, social media.
• Public relations - non-profits are
beneficial for individual groups of people,
but they also benefit the community.
Slide 1.36
HOW TO CREATE A MARKETING PLAN? DESIGNING THE MARKETING MIX

Here is a step by step guide to writing a Marketing mix - Putting the right product
marketing plan for your organisation. in the right place, at the right price, at the
right time.
Product
• The executive summary
• The challenge The 4 (7)Ps that are essential to the marketing
• Situation analysis mix:
• Market segmentation
• Alternative marketing strategies • Product
• Selected marketing strategy • Price Marketing
Price Place
• Short and long-term projections • Promotion Mix
• Conclusions • Place
• People
• Physical evidence
• Processes
Promotions

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EXERCISE 1: A WORKING EXAMPLE empowerment of the residents or care MODULE 2: INTRODUCTION TO

for the residents. BRANDING
A practical example of the marketing mix in Duration: 30 minutes.
action might be as applied to a residential
home for older people. To be effective you Branding is the expression of the
need to decide the following details: essential truth or value of an
• what service you are delivering, for organisation, product, or service.
example whether or not you welcome It is communication of characteristics,
people with dementia values, and attributes that clarify what
• the price you are going to charge this particular brand is and is not.
• how you are going to advertise and
promote the home
• where you are going to build it or buy it
• how you are going to recruit and train
your people i.e. the staff
• what features (physical evidence of
quality) the home is going to have, for
example en-suite with bath and shower
• what processes you will set up to make
it easy for people to try out your home,
claim state benefits to help with payment,
make the payments etc. WHY SHOULD SOCIAL INNOVATORS
• the philosophy you will be adopting, INVEST IN CREATING A BRAND?
for example is it primarily one of

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178
• To drive impact
• To guide behaviour
• Can be a fundraising tool
• To tighten organizational cohesion
• To provide social credentials
WHAT MAKES A BRAND SUCCESSFUL?
• Differentiation – what distinguishes your
non-profit from other organisations
• doing similar work?
• Credibility - before someone makes
that online donation or steps up to
• volunteer their time, they have to
believe that your organisation has the
• ability to deliver on its promise.
• Authenticity – get people to identify and
care about your cause.
WHAT ARE THE BENEFITS OF GOOD
BRANDING?
• Connectivity - a good brand connects
an organisation’s staff, board members
and core thinkers to their donors and
Slide 1.43
the community.
• Donors - a good brand showcases
exactly what an organisation does
better than its peers.
• Pride - a good brand creates unity
and a sense of pride, which drives
your powerful thinkers and doers to
brainstorm harder and work stronger.
WHAT ARE SOME GREAT NON-PROFIT
BRANDS?
• What makes them great?
• Clear sense of who they are
• Are disciplined and focused
• Tell good stories
• Internally and externally aligned
• Stakeholders have tools, room to deliver
• Consistently meet or exceed
expectations
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CREATING YOUR BRAND EXERCISE 2: CASE STUDY AMNESTY MODULE 3: INTRODUCTION TO SOCIAL
INTERNATIONAL MEDIA
Here is a step by step guide to creating your
social brand: Read and discuss the Amnesty International
case study Branding an Organization That’s • Dictionary definition: “websites and
• Carry out market analysis Also a Movement. applications that enable users to create
• Identify your target audience In teams of 5 deliberate on what their brand and share content or to participate in
• Analyse current provision means to you, what you think of their logo, social networking”.
colours, etc. • Michelle Chmielewski, Synthesio: “social
• Identify unique attribute about your Duration: 20 minutes. media is not about what each one of us
brand does or says, but about what we do and
say together, worldwide, to communicate
• Develop brand concept in all directions at any time, by any
• Visualise your brand concept possible (digital) means”.
• Positioning
Social media is an opportunity to tell your
• Genesis of brand story, engage with supporters and get
• Choose a name results—which means there’s no time like
• Design logo the present to create or refresh your social
media strategy!

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HOW TO DEVELOP A SOCIAL MEDIA FURTHER INFORMATION AND NEXT
STRATEGY STEPS

• Define social’s role in your If you’d like to find out more about the Social
communications strategy Innovation programme and be considered
• Determine what you want to accomplish to be a delegate please speak to your
• Identify your target audience facilitators or contact:
• Choose the right networks
• Create a content strategy
• What to Share
• Types of content
• Posting frequency
• Build engagement
• Track & measure your results

FEEDBACK AND WRAP UP

• Please feed back on the theory and

examples/exercises presented
• Is there anything else that you would
have liked us to cover

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LEGAL STRUCTURE & ADMINISTRATION

WELCOME

Aim:
• To help people decide on the right legal structure based on what the
organisation will do
• To consider the adminstrative processes necessary

Today’s facilitators are:

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182
AGENDA:

0.30 – 0.00 – Arrivals and refreshments

0.00 – 0.15 – Welcome and scene setting
0.15 – 1.45 – Legal Structures
1.45 – 2.00 – Break
2.00 – 3.30 – (Czech) Commercial Code
3.30 – 4.00 – Appropriate Legal Structures
for Social Enterprise in the Czech Republic
4.00 – 4.15 – Break
4.15 – 5.30 – Introduction to
administration
5.30 – 6.00 – Feedback and next steps

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LEGAL STRUCTURES - OVERVIEW
You must choose a structure for your
business. This structure will define your
legal responsibilities, like:
• which authorities you have to notify that
your business exists
• the tax and National Insurance that you
pay
• the records and accounts that you have
to keep
• your financial liability if the business runs
into trouble
• the ways your business can raise money
• the way management decisions are
made about the business
• You can change your business structure
after you’ve started up if you find a new
structure suits you better.
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184
SOCIAL ENTREPRENEURSHIP – THEORY
• Different legal forms (in the Czech
Republic some commercial companies,
public benefit organizations, social
cooperatives, institutes, and partially
also cooperatives).
• Established independently on public
sector & based on democratic principles.
• Commercial orientation, fulfilling
economic objectives (manufacturing and
sales of products and/or services) & also
social objectives.
• Social enterprises are of great importance
in local conditions – create jobs for
vulnerable persons disadvantaged on
open labour market.
Slide 1.5
LEGAL STRUCTURES - CHARITY
A charity is a voluntary organisation
which has been set up only for
charitable purposes and to provide a
public benefit.
Only around half of Scotland’s voluntary
organisations are charities. If you are
thinking of registering as a charity, you should
consider whether this is right for you and
look at the advantages and disadvantages
associated with charitable status. Look
carefully at the particular circumstances of
your organisation and decide whether it is
the right option for you.
Advantages
Tax relief on surpluses and donations
Access to funding only available to charities
Rates relief for premises
Special VAT concessions
Slide 1.6
Disadvantages
Restrictions on spending
Cannot engage in party political activities
Must adhere to legislation has been purpose built for the charity
Trustees have specific duties under legislation
All charities must submit an annual return
and accounts to OSCR every year and seek
their permission to make certain changes.
LEGAL STRUCTURES – CHARITY (2)
To be a registered charity in Scotland, an
organisation must register with the Office of
the Scottish Charity Regulator (OSCR) having
met the charity test. To meet the charity test,
an organisation must have only charitable
purposes and must provide public benefit in
Scotland or elsewhere. In addition it must:
• not allow its property to be used for non-
charitable purposes
• must not allow Ministers to direct or
Slide 1.7
otherwise control its activities
• must not be a political party, and not
have as its purposes the advancement of
a political party
LEGAL STRUCTURES – CHARITY (3)
Once you have decided on charitable
status you will also have to choose a legal
structure. The following are the main legal
forms that Scottish charities can take:
• Scottish Charitable Incorporated
Organisation (SCIO)
• Voluntary or Unincorporated association
• Company limited by guarantee
• Trust
Other forms include statutory and royal
charter corporations, industrial and provident
societies and educational endowments.
Slide 1.8
LEGAL STRUCTURES – SCIO
A Scottish Charitable Incorporated
Organisation is a legal structure which
sector in Scotland. It provides limited
liability and a separate legal identity
to organisations that want to become
charities but do not want or need the
complex structure of company law. This
means that even the smallest charity
can access the benefits of incorporation
– including limited liability and legal
capacity.
It is only available to charities with a
principal office in Scotland and is regulated
by OSCR and subject to the Charities and
Trustee Investment Act (Scotland) 2005.
There are two structures available for the
SCIO, two tier and single tier.
The two tier structure is similar to that of a
voluntary association and a company limited
by guarantee where it is the membership of
the organisation that appoint trustees and
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have decision making powers.
The single tier structure is similar to a trust
in that the trustees appoint new trustees
and don’t have to answer to a wider body.
Both structures require at least two members
(in the single tier SCIO the members and
the Trustees are the same people) and must
have at least three trustees.
LEGAL STRUCTURES – SCIO (2)
There is no standard format for a SCIO
constitution, but some basic elements are
required:
a SCIO should have two or more members
and three trustees (in the case of a single tier
SCIO the members can also be the trustees)
it should have the name, purposes, a
registered office in Scotland, and include
any restrictions on powers
it should list meeting procedures (convening,
recording, quorum, voting, resolution)
it should list membership rules (eligibility,
appointment, withdrawal) and trustee rules
Slide 1.10
186
(appointment, withdrawal, remuneration
restrictions, conflict of interest).
it should list the purposes for which surplus
assets may be used on dissolution
Charitable status?
A SCIO can only be a charity. OSCR is the
regulator of a SCIO’s legal form, not just its
charitable status. Removal from the Register
equals dissolution.
LEGAL STRUCTURES – SCIO (3)
Advantages
• Provides the key benefits of becoming a
company, such as a defined legal entity
and limited liability whilst removing
some of the associated burdens. structure than a voluntary association.
• Can hold property, enter into leases and
other contracts, employ people, etc, in
its own name.
• Less administration – no requirement to
notify any regulator about appointments
or resignations of board members
• Unlike company law, where the volume
of legislation and case law can be
overwhelming, the law relating to SCIOs
is self-contained and very manageable.
• It provides creditor protection and
reassurance for those entering into
contracts.
• Only needs to be registered with OSCR,
unlike a charitable company, which
also needs to register with Companies
House.
• Is subject to the same accounting
thresholds as unincorporated charities,
so may not have to produce fully accrued
accounts.
• Generally regarded by funding bodies
and public agencies as a more ‘stable’
Disadvantages
• Existence is dependent upon charitable
status. Loss of charitable status would
 mean that the SCIO would cease to LEGAL STRUCTURES – INCORPORATED Charitable Incorporated Organisation? This
exist. ORGANISATION is a corporate body which provides limited
• Some changes must be notified to liability for its members and is suitable for
OSCR, and some require prior consent, A company is a membership organisations that want to become charities,
eg change of name or charitable organisation formed and registered but do not want or need the complex
purposes. under the provisions of the Companies structure of company law.
• Members are subject to some of the same Acts. It is incorporated and benefits
duties as charity trustees, specifically, they from limited liability for its members.
must act in the interests of the SCIO, and
seek, in good faith, to ensure the SCIO It’s a structure that can be chosen by
acts in a manner which is consistent with voluntary organisations that employ staff,
its charitable purposes. regularly enter into contracts, manage
• There is a duty to keep and supply a investments, and/or own property and
register of charity trustees and members other assets, because limited liability helps
(if an organisation has a lot of fluidity in to minimise the threat of personal liability
its membership eg a Student Union, a for the directors.
SCIO may not be the most appropriate It is regulated by Companies House and
legal form). subject to the Companies Acts and other
• Cannot convert or amalgamate with non- legislation. If a company is charitable then it
SCIO, though assets can be transferred will be subject to charity law and regulated
to a non-SCIO charitable organisation. by OSCR as well.
If you are considering this structure and
are planning to apply for charitable status,
why not consider setting up as a Scottish

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LEGAL STRUCTURES – INCORPORATED
ORGANISATION
Advantages
• It’s a private limited company that
has guarantors rather than shareholders,
so it’s suitable for voluntary organisations.
The  members agree to pay a fixed
amount known as a guarantee (usually
£1) towards  the company’s debts if it
goes into liquidation. • There is an ongoing requirement to
• The company is a clear legal entity,
separate from the persons involved in it –
and can hold property, enter into leases
and other contracts, employ people,
etc, in its own name. It doesn’t matter
if the directors change because it is the
company and not the directors that hold
title to land, enter into contracts, etc, but
changes must be notified to Companies
House. • There are various statutory requirements
• A company is generally regarded by
funding bodies and public agencies as a
188
more ‘stable’ structure than a voluntary • A company structure may be more
association intimidating for those considering
whether to join as members or put
Disadvantages themselves forward for election to the
board of directors.
• There are formal registration procedures • Set up costs can be higher than for
to be followed in relation to creating a a voluntary association or trust; and
company, in addition to the process of annual costs are higher, particularly if
applying to be recognised as a charity, there is an external company secretary
unlike with a SCIO which needs only to and/or if a formal audit is required.
be registered with OSCR.
LEGAL STRUCTURES – TRUST
notify a change in directors, a change
in the company secretary, or a change A trust is usually set up where assets
in the registered office to Companies (eg property, investments) are given by
House. Similarly, annual accounts and one person (the Donor) to another (the
annual returns have to be filed. If a Trustees) with the intention that is should
charitable, a company must also file an be applied for the benefit of a third party
annual return with OSCR, and notify or or the public (the Beneficiary). Once this
seek prior consent from OSCR before occurs, the trustees own the asset, but
making certain changes. can only apply it in accordance with the
trust for the benefit of the beneficiaries.
which have to be followed in relation to A trust is not regulated by an external
members’ meetings etc. regulator (unless it is a charity), but is subject
Slide 1.13 Slide 1.14
to various legislation, eg Trusts (Scotland) unless a charity, which will be accountable • Leases/formal contracts have to be
Acts 1921 and 1961 If it is charitable it will to OSCR. entered into in names of trustees. Each
be subject to charity law and regulated by • No detailed statutory procedures to time one of these individuals leaves,
OSCR. be  followed in relation to members’ the assets must be legally transferred
If you are considering setting up as a Trust meetings, etc. to another. The same goes for any legal
and are planning to apply for charitable • Useful if you want to retain control arrangements the trust has entered into
status, why not consider setting up as a amongst a small body of people with no in this way.
single-tier Scottish Charitable Incorporated external membership. • Legal proceedings cannot be taken by the
Organisation? This is a corporate body which • No requirement to notify changes trust but only by individuals representing
provides limited liability for its trustees and in trustees to any public register nor it. Similarly, legal proceedings would be
is suitable for organisations that want to any  requirement to file accounts unless taken out against individuals rather than
become charities, but do not want or need a charity.   the organisation.
the complex structure of company law. • Likely to be less intimidating than a • Trustees could be personally liable for
company limited by guarantee or IPS for debts if the organisation were unable
LEGAL STRUCTURES – TRUST those considering whether to participate to meet its debts and liabilities out of its
in decision making. own resources.
Advantages • There is no concept of accountability to a
Little or no set up costs. Disadvantages wider membership or to partner bodies/
• Less administration than a • Although the law gives greater agencies. In particular a trust could not
voluntary association, SCIO, company recognition to the trust (as compared hold meaningful AGMs since no one
limited by guarantee or IPS, since there with a voluntary association) as having other than the trustees themselves would
is no register  of members to maintain, some form of identity , it is still not a full have voting rights.
no collection of subscriptions, etc. legal “entity” in the way that a SCIO or • Could be seen as “less professional” in
• No formal registration requirements company limited by guarantee is. the eyes of potential funders.

Slide 1.14 Slide 1.15

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LEGAL STRUCTURES – COMMUNITY
INTEREST COMPANY
A CIC cannot be a registered charity.
Community Interest Companies (CICs) are
limited companies, with special additional
features, created for the use of people who
want to conduct a business or other activity
for community benefit, and not purely for
private advantage.
LEGAL STRUCTURES – COOPERATIVE
A co-operative is an association or
corporation established for the purpose of
providing services on a nonprofit basis to
its shareholders or members who own and
control it.
Co-operatives UK is a national trade body
that campaigns for co-operation and works
to promote, develop and unite co-operative
enterprises. They define a co-operative as:
A group of people acting together to meet
the common needs and aspirations of its
Slide 1.16
190
members, sharing ownership and making
decisions democratically.
If a co-operative’s membership is closed or
restricted, and profits are divided amongst
the members, then it cannot be a charity.
LEGAL STRUCTURES – INDUSTRIAL AND
PROVIDENT SOCIETIES
The industrial and provident society
represents a halfway house between a
registered company and an unincorporated
association. It has rules of association in
much the same way as an unincorporated
association, yet it is an incorporated body
with the benefit of limited liability. To qualify
for registration as an IPS a body must either
be a co-operative society for the mutual
benefit of members, or for the benefit of the
community. Only those set up for the benefit
of the community, and not members, will be
eligible for charitable status.
The IPS offers the benefit of limited liability,
but the incorporation procedure can be
Slide 1.18
expensive and time-consuming, and few
professional advisers will be familiar with
the regime for such societies.
Industrial and provident societies are
registered with the Financial Services
Authority and are regulated by the FSA
under a regime which is similar to that for
registered companies.
ENTREPRENEURSHIP DEFINITION
(COMMERCIAL CODE § 2/1)
Independent & permanent activity,
conducted by entrepreneur at his/her own
name, his/her own responsibility, with the
objective to generate profit.
All above mentioned characteristics has to
be fulfilled cumulatively!
Slide 1.20
ENTREPRENEURS´ CLASSIFICATION
(COMMERCIAL CODE § 2/2)
entities registered in business register
natural persons registered in trade register
entities registered in special registers or lists
self-employed farmers – agricultural
entrepreneurs registered by municipal
offices
TRADE ENTREPRENEURSHIP
• Trade = permanent activity conducted
independently, at one´s own name, one´s
own responsibility, with the objective to
generate profit within conditions set by
the Trade Licensing Act
• Legislation:
• Act no. 455/1991 Coll., on licensed
trade (the Trade Licensing Act)
• Government Regulation no.
278/2008 Coll., setting contents of
specific trades
Slide 1.22
• Trade operator: natural person or legal
person fulfilling conditions of the Trade
Licensing Act
• State permission is needed in specific
cases – CONCESSION (defined in the
Trade Licensing Act)
TRADE´S CATEGORIES
• The Trade Licensing Act according to an
origin of trade license distinguishes two
basic trade categories:
• announced trades (according to the
conditions an entrepreneur has to
fulfill further diversification is on
craft, regulated and free trades)
• free trades – activities which
does not require any further
professional ability
• craft trades – professional
education in relevant or related
field, proof of retraining or at least
6 years’ experience in relevant field
(e.g. bakery, confectionery, joinery,
masonry, etc. – see Annex 1 of the
Trade Licensing)
• regulated trades – it
is necessary to comply with
professional ability, for example
professional education or retraining,
alternatively some length of working
experience (e.g. planning, trade
with animals, technical revisions,
etc. - see Annex 1 of the Trade
Licensing Act)
• licensed trade (specifies Annex 3
of the Trade Licensing Act, e.g.
tourist agency, security, private
investigator´s services, etc.;
it is necessary to comply with
professional ability, for example
professional education or retraining,
alternatively some length of working
experience)
• State permission is needed in specific
cases – CONCESSION (defined in the
Trade Licensing Act)
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CONDITIONS TO CONDUCT TRADE
• come of 18 years old
• legal capacity
• clean record (statement from criminal
record):
• Clean record does not have a person
condemned for deliberate crime
connected to entrepreneurship or
subject matter connected relevant
field of entrepreneurship
• specific conditions to run business
• professional or other qualification
(if required by law): professional
practice in relevant or related
business field, person performing
unsupported professional work as an
employee in relevant field (§ 7/4)
• Commencement of trade license
• day of trade´s announcement (in the
case of announced trades)
• day when the decision to award
concession comes into force
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192
TERMINATION OF TRADE LICENSE
• entrepreneur’s death
• extinction of legal body
• expiration of period if trade license was
limited to certain period of time
• if set by special legal act
• erase of foreign legal body from business
register
• decision of trade licensing office to
cancel a trade license
PROCEDURE TO ESTABLISH TRADE
• At the very beginning visit trade license
office where you fill in the registration
form. Thus you carry out all necessary
announcements and registrations –
trade itself, health and social insurance,
income tax but eventually also VAT, etc.
• If a trade is your main activity you have
to pay health and social insurance fees
from its start. If a trade is your secondary
occupation (for example you have full
time job in the same time) you pay health
and social insurance only after you file
an income tax return.
• Keep a tax record (where you keep the
books of all your bookkeeping documents
related to the entrepreneurship) is
connected with activities statement for
respective accounting year. Or you can
account only income evidence if you plan
to enforce so called lump sum costs.
• Entrepreneur’s duty is to submit tax return
and also already mentioned health and
social insurance statements. It follows
that you have to settle tax return and
eventual balance for health and social
insurance.
COMMERCIAL COMPANIES
Corporate bodies established for
entrepreneurship purposes:
• General partnership
• Limited partnership
• Limited liability company
Slide 1.27
• Public limited company
• Cooperative
REGISTERED CAPITAL
Company assets put into company
constitution can change during business
lifetime. Ordinary stock is obligatory for
corporate bodies. In the case of private
person (entrepreneur) it is not required.
• Associate´s share:
• in cash (financial share)
• in-kind contribution (non-financial
share)
RIGHTS & DUTIES OF ASSOCIATES
• right to information about company
• right to decision about company´s key
questions
• right to vote trustees and be elected as
a trustee
• obligation to redeem associate´s share
in line with company´s constitution
Slide 1.29
• obligation to guarantee company´s COMPANY FOUNDING & CONSTITUTION
liabilities in set scale
• law of property emerged from business´ • they are not identical terms
share
• Foundation: by partnership agreement
or memorandum in the form of notarial
BUSINESS SHARE deed
• Fundamental ownership relations • Constitution: Incorporation into Business
between associates and corporation Register (till 90 days from company
comprise associate´s interest in a foundation) – legal personality from
corporation and his/her rights and court final decision about incorporation
duties. It includes associate´s rights:
• participation in profits
• final settlement of share (in the day
of associate´s share termination)
• share on so called liquidation
balance in the case of winding up
company, after satisfying all known
liabilities /debts
Slide 1.31
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SIP GUIDE CZ
COMPANY DISSOLUTION &
EXTINCTION
• they are not identical terms
• Dissolution: decision is made by a
company or court
• with liquidation:
• Expiration of a period for
which a company was founded
• Achievement of an objective
for which a company was founded
• Decision of associates or
respective body of a corporation
from a reason set by law or internal
regulation
• Court´s decision about
company´s dissolution
• without liquidation:
• In cases of a fusion or division of a
company
• Transformation to different legal form
• Extinction: company´s deletion from
Business Register
Slide 1.32
194
BUSINESS NAME
• name under which an entrepreneur is
registered in Business Register
• for legal bodies the company´s name
is composed from a basis (invented by
entrepreneur) and addendum (legal
form of a company)
• Business Name must not be forbidden
by law, deceptive, mistakable or identical
with other business name
• Companies´ legal forms:
• General partnership
• Limited partnership
• Limited liability company
• Public limited company
• Cooperative
BUSINESS REGISTER
• Public register in which entrepreneurs
and other legal bodies are incorporated
• administered by shire courts
• Entrepreneurs have an obligation to
publish truthful and updated information
• A component of Business Register is
Collection of documents
• Business Register contains:
• business name, address and
registered offices
• business activities and trade licenses
• company´s legal form
• identification number
• statutory bodies and associates
including personal data and
addresses and their business shares
COLLECTION OF DOCUMENTS
• partnership agreement or memorandum
• notarial deed containing a resolution
of constitutional general shareholders
meeting (Public limited company) or
Cooperative´s constitutional meeting
• statute
• decision about election or appointment,
withdrawal, etc. of persons who are legal
representatives, liquidator, bankruptcy
Slide 1.35
 trustee, their specimen signature
• final accounts and their auditor´s
certification
• decision about company´s dissolution,
legal form transformation, fusion
• expert´s opinion on value of associate´s
in-kind contributions
• court´s decision about general
shareholders meeting invalidity
PERSONAL CORPORATIONS
• suitable for small and medium
entrepreneurs non requiring a large
scale capital
• individual knowledge of associates and
their active participation come to the
forefront
• appropriate for sectors as commerce,
services, craft, family run businesses
• partnership agreement does not have to
be in the form of notarial deed
Slide 1.37
GENERAL PARTNERSHIP
• associates have liability with all their
private property
• any associate might be entitled to
commercial leadership of the corporation
(within principles agreed between
associates)
• statutory body – all associates (possibility
to arrange differently)
• request for incorporation into Business
Register – signed by all associates and
includes partnership agreement
• Partnership agreement:
• business name and address
• associates including personal data
and addresses
• business activities and trade licenses
of a company
LIMITED PARTNERSHIP
• Type of corporation in which one or more
associates have liability with all their
private property (unlimited partners)
and one or more associates have limited
liability up to their business shares
registered in Business Register (limited
partners)
• Unlimited partner = only person fulfilling
general requirements for trade license
• Only unlimited partners are entitled to
commercial management of a company
• statutory body = unlimited partners
Slide 1.38
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SIP GUIDE CZ
LIMITED LIABILITY COMPANY
• Registered capital is constituted from
associates´ shares and associates have
liability for company´s commitments until
redeem a share wasn´t incorporated
into Business Register
• may be constituted by one single person
• have liability for breach of commitments
with all private property
• associate may transfer business share to
others (in written contract with signatures
certified by a notary - § 115)
• business share may be subject of the
pledge (§ 117a)
• Corporation bodies:
• General shareholders meeting –
company´s top body, definition of
powers § 125
• Executive director – statutory body
(one or more executive directors),
competitive clause (§ 136)
• Supervisory board – if defined in
partnership agreement, definition of
powers § 138
Slide 1.39
196
PUBLIC LIMITED COMPANY
• corporation in which registered capital is
divided to certain number of shares with
certain nominal value
• has liability for breach of commitments
with all corporation´s property,
shareholders do not have liability
• founded by constitutional contract or
memorandum (§ 163)
• request for incorporation into Business
Register is submitted by Board of directors
and signed by all board members
• Corporation bodies:
• General shareholders meeting –
company´s top body, organized by
Board of directors
• Board of directors – statutory body
(one or more executive directors),
competitive clause (§ 196)
• Supervisory board – supervises scope
of activities of Board of directors and
business operation
SHARES
• Security that is connected shareholders´
rights as associate to take part
(according to the law and corporation´s
memorandum) on the decision making,
profit and liquidation balance in the case
of company´s extinction.
• Different types of shares: share certificate
vs. registered shares or bearer shares
• Registered shares: Plc. keeps a list
of shareholders (type and form of
shares, share´s nominal value, name
of shareholder, numerical order of
shares), rights linked to the share are
executed by the person listed in a list
of shareholders
• Bearer shares: transferrable without
any restriction, rights linked to the
share are executed by the person
who presents a share
Slide 1.41
 COOPERATIVE
• Association of unlimited number of
persons founded with an entrepreneurship
aim or to ensure economic, social or any
other needs of cooperative´s members
• Members may be private persons as
well as legal bodies
• Right to transfer member´s rights and
duties to other cooperative´s member
• Transfer of member´s rights and duties
to other person is subject of board´s
approval
• Equity capital:
• Sum of membership contributions
that members made a commitment
to redeem
• Redeem membership contribution is
a condition for a commencement of
membership
• Cooperative´s constitutional meeting:
• Determines cooperative´s equity
capital
• Approves statute
• Votes board and auditing commission
Slide 1.42
TYPES OF SOCIAL ENTERPRISES
• Integration company – employs
(permanently or temporarily) vulnerable
persons
• Social enterprises employ seriously
disadvantaged target groups
• Social cooperatives is appropriate
form of entrepreneurship for the
purpose of community or local
development
• Others – local and environmental aims,
extra earnings / secondary activities of
NGOs
• Usage in the Czech Republic
• Social enterprises founded through
municipalities initiatives
• Integration of vulnerable groups
through employment
• NGOs supplementary financing
• Very low interest of businesses
• EU funds support though small scale
loans and subsidies
SOCIAL COOPERATIVE
• Social cooperative is a special type
of cooperative which permanently
executes public benefit activities aimed
to support social cohesion with the
goal of vulnerable groups labour and
social integration into society with the
preference to meet local needs and use
local sources (§758 of Civil Code).
• Designed as a commercial body which
may run a business only in certain
manner (cannot perform high risk
business activities) and profit will be
in the most cases intended for public
benefit activities.
• Maximum 33% of its profit may be divided
between social cooperative´s members
(e.g. in Italy or Spain social cooperatives
cannot pay out participation on profits).
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SIP GUIDE CZ
INSTITUTE
• Institute is defined by its purpose e.g.
providing services (§402 of Civil Code).
Institute is a legal body established
with the purpose to conduct social and
economic useful activities.
• Profit may be used only to support
activities for which an Institute has been
established.
• Constitution through Memorandum
which defines at least:
• Name and address
• Subject matter of Institute´s activities,
eventually trade licenses
• Information about equity capital,
eventually about in-kind contribution
• Number of board members including
their personal data and addresses
• Details about Institute´s internal
organization
• Organization´s bodies:
• Board - Institute´s top body, votes
and dismisses director, approves
budget, final account, annual report
Slide 1.45
198
etc.
• Director – legal representative
UNFAIR COMPETITION
• Unfair Competition is an act at economic
competition which is incompatible with
good behavior and may cause damage
to other competitors or consumers
• Unfair Competition is forbidden
• A person whose rights were breached
or jeopardized by unfair competition
may claim against a violator to stop such
behavior and eliminate this harmful
state. It can be claimed:
• compensation for losses
• recovery of unjust enrichment
UNFAIR COMPETITION (2)
• deceptive advertising
• deceptive labelling of products and
services
• causing danger of mistaking
• sponge on a reputation of other
competitor´s company, products or
services
• bribery
• detraction
• unlawful comparative advertisement
• business secret violation
• putting at risk consumer´s health and
environment
FINANCIAL AND BUSINESS
ADMINISTRATION
Financial & business management
• information on financial responsibilities
for charities and business planning
Legislation & regulation
• the legal procedures and licenses you
need to be aware of
Good Governance
• information for the people in management
and control of your organisation
Managing staff & volunteers
• resources to help you with HR issues
Slide 1.49
 FINANCIAL AND BUSINESS
MANAGEMENT
Detailed information on a range of finance
and business topics, including financial
responsibilities for charities and how to get
the most out of your business planning.
• Bank accounts – many things to consider
with choosing a bank account
• Charity accounts & financial reporting -
Discover the best approach to financial
record keeping and reporting, when an
auditor is required and much more.
• Tax & VAT - Relevant headline information
on VAT, Corporation Tax, Capital Gains
Tax, Council Tax, business rates and
more. We’ll also point you to other
relevant sources of information.
• Business planning - Make business
planning a core activity for your
management committee or trustees and
your organisation will feel the benefit of
clear planning and goal setting.
• Organisational development - copyright owners
Slide 1.50
Organisational development is the name
given to interventions that aim to help an
organisation to grow and change, such
as quality or performance improvement.
• Trading - Trading is an important source
of funding for the third sector, but it can
expose your organisation to risk. So
before you decide to trade, you need to
carefully consider a number of questions
and take advice.
LEGISLATION AND REGULATION
• What legal procedures and licences do
you need to be aware of when running a
social innovation organisation?
• Fire safety -The Fire Safety Act places
responsibility for assessing risk to those
with control of any premises
• Music & film licensing - If you or people
using your facilities use music for the
benefit of customers, visitors or staff,
you need permission from the relevant
• Premises licensing - If you want to serve
alcohol, food, or provide entertainment
you will need to contact your local
authority to apply for a premises licence
• Food hygiene & catering - How to provide
food in a village hall or other community
setting
• Health & safety - It is the responsibility of
the voluntary management committee
to ensure the health and safety of
employees, volunteers and visitors
• Freedom of Information Act - Freedom
of Information is a valuable resource for
the voluntary sector
• Data protection - If you hold and
process information about your clients,
employees or suppliers, you are legally
obliged to protect that information
• Protection of Vulnerable Groups
(PVG) Scheme - The PVG Scheme is
a registration system for anyone who
carries out work (paid or unpaid) with
vulnerable groups in Scotland.
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SIP GUIDE CZ
GOOD GOVERNANCE
Your trustees have a significant part to
play in your organisation. They are there
to oversee and take responsibility for
everything your organisation does. Being a
trustee is an important role and should not
to be taken on without an understanding of
what’s involved.
• Roles and responsibilities - Information
on who can be a trustee and what’s
involved. Find out about collective
responsibility, personal liability and the
difference between governance and
management.
• Recruitment & induction - Make sure
you’re clear about what’s involved in
recruiting trustees, as this will have an
impact across your whole organisation.
Once you’ve got them, make sure
they get a good introduction and a
comprehensive induction.
• Meetings - Running effective and efficient
meetings will help your organisation
Slide 1.52
200
achieve its objectives. Find out how to
set an agenda and take minutes, and
ensure your trustees follow a Code of
Conduct.
• Developing your board - Your trustees
need to continually evolve and adapt.
In order to develop a problem solving
approach and ensure a long-term
future, you need to invest in training and
development for your trustees.
• Jargon buster - Clear descriptions of
common governance words and phrases.
• Third Sector Mediation - Don’t let things
get out of hand, get help to nip conflict
in the bud
MANAGING STAFF AND VOLUNTEERS
People are the central resource for any
third sector organisation whether they are
employees, volunteers or service providers.
With the huge range of employment
law, health and safety requirements and
confidentiality requirements, it can often
be a complex field for organisations to deal
with.
For more information see:
Gov.uk A government website with a
wide variety of advice notes on aspects
of employment law including contracts;
dismissal; health and safety; pensions;
recruitment and benefits. There is no tailored
individual advice line.AdviceguideScottish
specific advice on employee’s rights at work.
This is generally written for employees rather
than employers but is a useful resource.
Advisory, Conciliation and Arbitration
Service (ACAS)ACAS provides online advice
for many areas of employment law as well as
a conciliation service. They also provide an
automated advice service which can provide
more tailored advice for your enquiry.
Chartered Institute of Personnel and
Development (CIPD)The Chartered Institute
of Personnel and Development (CIPD)
is the world’s largest Chartered HR and
development professional body. While
membership based, they provide good
online HR resources including a number of
standard HR policies.
Health and Safety Executive in Scotland The
Health and Safety Executive in Scotland
and the related HSE UK website provide
a number of advice notes on good, legal
practice in ensuring employees’ health and
safety. They provide style risk assessments
for a variety of work places.
Equality and Human Rights Commission
in ScotlandThe Equality and Human Rights
Commission in Scotland provides legal
updates, advice and the standard Codes
of Practice for equal pay, employment and
services, as well as technical guidance on
how they are applied.
Information Commissioner - The Information
Commissioner provides good information
and style codes for businesses and how they
protect their employees’ privacy.
FEEDBACK AND WRAP UP
Getting the right business model is not
always obvious – checks the advantages
and disadvantages of each
No one said it would be easy running an
organisation – but there is plenty of support
FURTHER INFORMATION AND NEXT
STEPS
If you’d like to find out more about the Social
Innovation programme and be considered
to be a delegate please speak to your
facilitators or contact:
Slide 1.55
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SIP GUIDE CZ

ACCESS TO FINANCE

WELCOME

Aim:
• To help people recognise how to fund the business
• To assist people with the tools to be investor ready

Today’s facilitators are:

Slide 1.2

202
AGENDA:

0.30 – 0.00 – Arrivals and refreshments

0.00 – 0.15 – Welcome and scene setting
0.15 – 1.45 – Introduction to funding and
investment
1.45 – 2.00 – Break
2.00 – 3.15 – Project and project cycle
3.15 – 3.45 – Exercise
3.45 – 4.00 – Break
4.00 – 5.00 – Project applications
5.00 – 5.30 – Exercise 2: Project Logframe
5.30 – 6.00 – Feedback and next steps

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SIP GUIDE CZ
ACCESS TO FINANCE
Your plans will need to be realistic and
achievable and your financial projections
will need to show that you can afford to
make repayments.
Most businesses that grow successfully, do so
by working out what they do well and doing
more of that. Performing a SWOT analysis
(strengths, weaknesses, opportunities,
threats) can help identify your strengths and
what opportunities are available. Identifying
threats can also avoid you growing the
business at the wrong time.
Before you attempt to raise finance from
external sources, you should carry out a
review of your cashflow management.
Most businesses can create efficiencies by
chasing up late payments, cutting costs or
renegotiating terms with suppliers.
If you still require funding after reviewing
your cashflow and performing a SWOT
analysis, you have a number of options:
Slide 1.4
204
Grants….................... bank
loan…...................personal funds or
investment from friends
equity finance…............asset based
finance…............crowd funding
A large variety of grants and support services
are available for companies with ambition
for growth.
ACCESS TO FINANCE (2)
Whether you’re starting up or growing your
business, before you approach anyone for
funding you should make sure that your
business is ready for financing.
You should consider:
• how much finance you need and for
how long
• which funding options are right for your
business needs
• how to make your business attractive to
investors
• how much of your own money you can
contribute to your start-up
Slide 1.5
• whether you can release money from
your business to fund growth
KEY POINTS TO CONSIDER
Is your business plan up to date? Most
investors and lenders will want to see your
business plan, to understand your vision
and explain how you’re going to spend the
invested or borrowed money.
Why do you need funding? For example,
do you need money to start your business,
acquire an asset, manage your cashflow or
grow your business?
How much funding do you need and
for how long? Some finance options, such
as overdrafts, are useful for day-to-day
expenses and improving cashflow for a
short period of time, while loans are more
suitable for long-term funding.
Can you afford the repayments?
Remember to consider the cost of interest,
fees and other charges associated with
loans.
Slide 1.6
Can you provide any necessary security?
Security can be any business or personal
asset, such as business premises, large
items of machinery or stock.
Are you prepared to give up a share of your
business to an investor? Consider getting
equity finance from business angels, venture
capitalists or friends and family.
MAKE YOUR BUSINESS ATTRACTIVE TO
FUNDERS:
Whatever type of funding you’re seeking,
you’ll be expected to have a business plan.
It should be one of the most useful tools for
helping you to manage your business.
You should also consider:
sales, profit and loss, and cashflow
forecasting
identifying potential risks and how you
might overcome them
a SWOT analysis to identify strengths,
weaknesses, opportunities and threats
When approaching investors, grant providers
Slide 1.7
or lenders you should have a well-rehearsed
presentation about your business, where
you are clear about your plans and goals,
as well as explaining what you need funding
for. You should be prepared to answer
detailed questions about your business.
MAKE YOUR BUSINESS ATTRACTIVE TO
FUNDERS (2)
In general, potential lenders and investors
will be looking for:
• ambitious but credible financial
information
• a strong management team
• good market knowledge
• a clearly-defined exit route
• evidence you can meet your repayments
in respect of any borrowing
Grant providers will also want to ensure
your business is a worthwhile investment,
that you meet their criteria and can achieve
your goals.
PREPARING FOR OUTSIDE INVESTMENT
Investors will want to ensure they’ll be
able to recover their investment and take
any profits. They’ll want to know what
your long-term plans are. They may place
greater emphasis on your business’ level of
ambition.
• Investors are likely to ask about:
• the type of products or services that your
business provides
• what distinguishes your business from
others in the same market
• any existing customers
Use the checklist on the next slide to help
you prepare for and find the right kind of
outside investment to help your business.
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PREPARING FOR OUTSIDE INVESTMENT
(2)
Your business:
• Research and decide whether your
business idea needs protected before
approaching an outside investor, eg
intellectual property protection.
• Identify what your business needs
investment for, how much you need and
for how long.
• Examine your existing finances. Are you
making the most out of resources you
already have? Have you considered
other sources of finance, like a bank
loan or personal savings?
• Identify why your business is a good
investment, and the growth potential of
your market.
• Identify your ‘value proposition’. What
value does your business add for
customers and investors to make them
buy or invest?
• Identify the skills and experience within
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206
your business. How will you and any
employees work with an investor to
make the business grow?
PREPARING FOR OUTSIDE INVESTMENT
(3)
• Decide how much equity (shares) you’re
willing to offer, and how much control
you’re willing to give up.
• Get independent advice from a
professional (such as an accountant,
lawyer or business adviser) on the
benefits and risks of equity finance.
• Check your business plan states what
the benefits will be for the investor and
how your business will benefit from
equity finance. What will the investment
be used for? What will it achieve? Also
include details of the level of involvement
you expect from the investor and when
you would like them to exit from the
investment.
Slide 1.11
Finding and approaching investors
• Research the different types of equity
finance available, e.g.. business angels,
venture capitalists and government-
backed sources.
• Identify the skills and experience your
business needs from an investor, e.g.
their marketing experience or access to
their business contacts.
PREPARING FOR OUTSIDE INVESTMENT
(4)
• Select investors who are a good match.
Consider what stage your business is at,
your market sector, how much you need
and the location of your business.
• Contact suitable investors by completing
an investor’s official application form or
forwarding the executive summary of
your business plan.
Negotiations
• Calculate how much your business is
Slide 1.12
 worth – or will be worth – including future
valuations to cover potential growth. You
may need independent advice from an
accountant.
• Prepare a business presentation or ‘pitch’
for face-to-face meetings and investors.
• If asked, send your business plan to the
investor. Consider asking the investor
to sign a non-disclosure agreement to
protect your business idea.
• Prepare for final negotiations. These will
settle the terms and conditions of the
investment.
FUNDING FOR START UPS
To start a new business, you’ll need enough
money to cover both the start-up and early
stages, at least until your business starts
providing an income. You should prepare:
• a detailed business plan, identifying how
much money you need and when
• a realistic profit and loss forecast
covering a range of scenarios – many
new businesses forecast over-optimistic
Slide 1.13
sales
• a personal budget taking account of
personal living expenses that you’ll need
to fund from your business
FUNDING FOR START UPS (2)
Most people who start a new business will
have to use some of their own money, as
well as any funding secured from elsewhere.
There are benefits to self-funding your
business, including:
• having more control over your personal
and business finances
• not having to repay money
• making your business more attractive to
potential investors, by showing your own
commitment to making the business
succeed
FUNDING FOR GROWTH
If you need extra funds to finance business
growth, you should first review your
current performance and prepare detailed
business plans and cashflow forecasts. Any
potential funder will be looking for you to
demonstrate that your plans are realistic
and achievable, and that you have realistic
financial projections.
You may be able to self-finance your growth
objectives by releasing money from your
business. Improving your cashflow could be
one way of achieving this.
FUNDING FOR GROWTH
If you need extra funds to finance business
growth, you should first review your
current performance and prepare detailed
business plans and cashflow forecasts. Any
potential funder will be looking for you to
demonstrate that your plans are realistic
and achievable, and that you have realistic
financial projections.
You may be able to self-finance your growth
objectives by releasing money from your
business. Improving your cashflow could be
one way of achieving this.
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FUNDING CHECKLIST

QUESTION ANSWER

The problem you are trying to solve is clearly defined with a compelling business case

Do you have a fully written business plan for your project?

Have you clearly identified all known business constraints, including organisation capacity,
selected market limitations, technology, or other known (business) constraints?

Have you completed a feasibility study for your project?

Do you have a clear description of long-term objectives (beyond 5 years), why they are
needed, timeframe to achieve is provided?

Roadmap, project plan, phases developed to manage the project to reach objectives and
sustainability

Do you have finances in place to fully fund your project objectives?

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FUNDING CHECKLIST (2)

QUESTION ANSWER

If not fully funded, do you have a plan in place to target creditors or investors for financing
capital?
If appropriate, have you completed a pricing analysis for your product or services?

Key metric or set of measures are identified to determine success of the project (may be the
same as measurement of success of the social impact)

Known issues that may impede the project have been identified; frequency, severity, and
probability factors have been determined (or estimated)

If appropriate, have you documented a manufacturing plan, including sourcing of materials?

Roadmap, project plan, phases developed to manage the project to reach objectives and
sustainability

If needed, do you have a distribution strategy clearly documented?

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FUNDING CHECKLIST (3)

QUESTION ANSWER

Have you identified any partners or suppliers needed for you project?

Do you have an overall marketing strategy for your project?

Have you clearly identified all known business constraints, including organisation capacity,
selected market limitations, technology, or other known (business) constraints?

Do you have a public relations plan for your project?

Breadth and depth of experience for founders / advisors provided; previous project success
noted for all or most key team members

Are the required team members identified, on board, and fully integrated into your project?

Do you have the right experience for your target industry and/or target region?

210
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WHAT IS A PROJECT?
„If you don´t know where you are going
any road will lead you there“ (Cheshire Cat,
Alice in Wonderland)
• Project might be perceived as a road to
achieve your goal.
• Project is a managed change of a state.
• Limited by goals, resources and time.
• If you are not able introduce in detail
and written form your goals before you
start your action you cannot be confident
what you are doing.
Slide 1.21
212
WHAT IS A PROJECT? (2) and takes into account their use and
management.
Process of planning: • It has budget for every task.
• It contains sufficient reserve for
„If you don´t succeed in planning you unpredictable events.
plan failure.“ • It is credible for expected implementers
as well as for the management.
3 factors:
1. Where you are now (or you will be when
anything what is planned recently will start).
2. Where you want to get.
3. Which way will you lead where you want
to be.
PROJECT PLANNING
• Identify everything, what is needed for
succesfull project completion.
• It includes schedule for appropriate
timing of tasks and milestones.
• It defines necessary sources with
guarantee of their accessibility in time
Slide 1.22 Slide 1.23
PROJECT CONTENT

1. PROJECT IDENTIFICATION:

Brief and apt name of the project

Basic information about the project

Identifying data of Implementer – Name,

Legal Address, ZIP, tel., E-mail, Legal entity,
Legal representative, Identification number,
etc.

Partners and their tasks - partnership

agreement / contract, etc.

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PROJECT CONTENT (2)
2. PROJECT OBJECTIVES
Obejctives = motivation for our path.
It defines why project exists.
Brief project description - process how we
want to reach the objective.
3. PROJECT LOCALIZATION
Name of shire, district, place of the project
implementation – address, etc.
PROJECT CONTENT (3)
4. DESCRIPTION OF MAIN PROJECT
PURPOSE
Initial situation – initial situation before
project starts;
Rationale – core of the problem solved by
project. Explanation why project fits;
Project segments – activities composing
project;
Slide 1.26
214
Project outputs and results – what will be
concrete output and result achieved thanks
to the implementation of project activities;
Project impacts – decisive when describing
project impacts are its objectives;
PROJECT CONTENT (4)
5. STRATEGY AFTER PROJECT COMPLETION
– explanation how project / partnership will
continue after project support expiration,
how further financing will be ensured and
further goals;
6. PROJECT PROMOTION
Rule – it is necessary ensure information
and promotion related to the project;
7. PROJECT SCHEDULE
– indicate whole time schedule,
Date of project start,
Date of project termination,
Date of final report including financial report
(if specified by the project),
Slide 1.28
Including particular stages and activities
segmentation.
PROJECT CONTENT (5)
8. TECHNICAL SOLUTION
- Description of project technical solution
(including schemes design)
9. ECONOMIC INFORMATION
Project budget – overview of whole project
budget, including partial figures and specific
financial sources;
Project financial coverage
– overview of specific sources for project
financial coverage, e.g. own sources, bank
loans, private finances, equity funding, etc.)
Eligible project costs – summary of the
costs you intend to finance from the project
Ineligible project costs – overview of the
costs outside the project
Slide 1.29
PROJECT FINANCIAL SOURCES PROJECT FINANCIAL SOURCES (2) PROJECT FINANCIAL SOURCES (4)
• Own sources
• Own sources • Business plans
• Loans • Example:
• Grants • M-loan guarantee for start ups –
EU 2020 Strategy
• Funds ČMRZB
• Loans
Different level of grants: • Labour offices Common Strategic Framework
Common
• Foundations • Bank institutions
Agricultural
• LAGs / Micro-regions • Czech-Moravian Guarantee and Policy (CAP) Partnership Agreement
• Communities Development Bank (Českomoravská
• Shires záruční a rozvojová banka – ČMZRB)
• National (Ministries)
• European (ESIF, AGRI, convergence) PROJECT FINANCIAL SOURCES (3) Operational
Direct Rural Development Programmes
Payments Programme (EAFRD) (ERDF, ESF, CF
Legal division: • Grants – subsidies and EMFF)
• Public bodies • Fundations
• Entrepreneurs – natural persons and - Local
corporate bodies - National
Posibility to use community led local
• NGOs - International developement trought LEADER method
• European Union Structural Funds across programmes
• Community grants
• Shire subsidies
• National grants

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SIP GUIDE CZ
PROJECT FINANCIAL SOURCES (5)
Grants and fundations:
http://neziskovky.cz/
or e.g.
http://www.nadacepartnerstvi.
cz/stromzivota/granty-do-20-
tisic
Local, shire and national
PROJECT FINANCIAL SOURCES (6)
Czech Structural Funds:
http://www.strukturalni-fondy.
cz/
EXERCISE
Find on the Internet at least one source
for subsidies and describe its elemental
possibilities and principles.
Slide 1.36
216
PROJECT APPLICATIONS – HINTS
1. Apply as fast as you can
2. Before submitting an application
consult grants´ administrator
3. Be on alert
Grants are constantly introduced and
updated.
4. Do not launch your project before
application submission
5. Make sure your application is
connected with concrete project
Most often subsidies are awarded for some
specific purpose, rarely only to support
an etreprise´s growth. For example if you
need new equipment or more employees to
launch production or sale of new product
point out your product not equipment. It
is also necessary advantages in the case
of product success. It can be for example
Slide 1.38
creation of new jobs.
6. Think out content of your application
Use logframe (see next part)
7. Be honest and truthful
8. Work out your Business plan
Verify if you have really strong Business
plan which you can annex to your grant
application
9. Convince administrator that you need
him
10. Keep financial reserve
PROJECT APPLICATIONS – HINTS (3)
Keep in mind:
• Project will not cover all costs
• Project applications are different
• It is necessary to adjust your project idea
to subsidies requirements
• Take into account that only about 60 –
80% of costs are predictable
Slide 1.40
• Create reserves for unpredictable
situations – plan in the way that project
will generate „profits“
• Always calculate necessary time for
project management (administration,
coordination, communication, etc.)
PROJECT APPLICATIONS – BUSINESS
• Subsidies and loans for start ups
• In municipalities with less than 2000
inhabitants – up to 60% subsidies for
equipment and investments => Rural
Development Programme –Aid to start
up and business development
• Entrepreneurs operating in agriculture
or entrepreneurs with history in tourism
less than 2 years in municipalities with
less than 2000 inhabitants => Rural
Development Programme –Support to
tourism
• Foundations – e.g. DALKIA
• loan guarantees with financial subsidy
Slide 1.41
to the loan => Programme START,
GUARANTEE
• start ups to cover their costs to obtain
a bank loan => Programme INOSTART
PROJECT APPLICATIONS – OTHERS
Culture – theatre performances, museums,
galleries,..
Minorities – integration, minorities´
festivals, associations,..
Crime prevention – aid to crime victims,
self-defence courses,..
Drug prevention – support to therapeutic
groups, care centers, drop-ins,..
Social issues – social counselling, shelters,..
Sports – reconstruction of sports ground,..
Education – education improvements,
contests for talented children,..
Health – health centers, senior fitness,..
Environment – waste separation, nature
care, bio-research,..
Spare time for kids and youth – support for
clubhouses, camps, exchanges,..
PROJECT APPLICATIONS - EXAMPLES
• Example no. 1:
Grant of city of Šumperk
http://www.sumperk.cz/cs/mestsky-urad-
sumperk/granty-a-dotace.html
• Organization of one-time non-profit
event focused on sport, culture, health,
social or other public benefit content.
•
• Organization of longer non-profit event
(4 days and longer) with at least 15
participants (workshops, camps)
•
• Organization of cycle of non-profit
events with sport, culture, health, social
or other public benefit themes
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SIP GUIDE CZ

PROJECT APPLICATIONS – EXAMPLES (2) PROJECT APPLICATIONS – EXAMPLES (3)

Example no. 2:
Programme GUARANTEE

http://www.cmzrb.cz/formulare/
zaruka-za-uver-pro-zacinajici-
podnikatele
• loan´s guarantee for start up
• amount of guaranteed loan: maximum
3 mil. CZK,
• loan extent: up to 80 % of principal
sum
• period for guarantee: 15 years maximum,
• beneficiary reimburse from own sources
only part of price for guarantee: 0,1 %
p. a.

Slide 1.45

218
PROJECT APPLICATIONS – EXAMPLES (4) PROJECT CYCLE RULE SMART(E)

• OECD Methodological recommendation • Specific

– Manual Project Cycle Management • Measurable
• European Commission Methodology • Acceptable
• 3 basic stages of the project: • Realistic
• Project preparation • Time aspects
• Implementation • (Economically feasible)
• Evaluation

PROJECT CYCLE (2)

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SIP GUIDE CZ

LOGRAME

• Objectives hierarchy
• Preconditions
• OVI
• SOV

Slide 1.50

220
LOGFRAME ADVANTAGES PROJECT LOGIC

• Knowing what I want

• Knowing how I recognize that I have it • General Objective =
• Changing what I am doing until I do not • IMPACT TO REALITY
achieve what I want
• Purpose = WHY?
LOGFRAME (2)
• OUTPUTS = WHAT?
• Objectives – what I want
• Activities + resources = Results • Activities = HOW?
• Results are outcomes we want to achieve
• Objective expresses final state of change.
Changes have to be:
• Observable
• Measurable
• They are structured in the hierarchy
according
• to the question:
• “What will I get from it?”
• or
• “How will I accomplish it?”

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SIP GUIDE CZ

PROJECT LOGIC (2) LOGFRAME:PROJECT PURPOSE

General Objective:
• Diseases caused by unhealthy water in
the region are eliminated.
Purpose:
• Hygienic habits are adopted by local
inhabitants.
Outputs:
• 1. Drinking water is at disposal in at least
60% of villages in the region.
Activities:
• 1.1. Choose suitable localities
• 1.2. Organize local workers
• 1.3. Sink wells
DESCRIPTION
• Initial situation – initial state before
project implementation starts
• Project rationale – heart of the
matter which will be solved by the
project. Explanation why the project is
appropriate
• Project segments – activities from
which the project is composed
• Project outputs and results – what will
be concrete output and result achieved
thanks to project implementation
• Project impacts – project objectives are
the most important when describing the
impacts

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222
PROJECT APPLICATIONS:LOGFRAME IN PROJECT APPLICATIONS – WHO?
PRACTICE
BE AWARE that it is necessary to describe:
PROJECT TEAM
Who is the owner of an idea (initiator)?
Who will (or should) take part in the project
implementation?
Who should cooperate on the project
implementation and how?
Which project bodies should be established?
Which competencies and tasks should have
been awarded to such bodies?
How a structure of project team will be set
up?
A project office will be established to
implement the project?

TARGET GROUPS
Who will benefit from the project
implementation?
All key target groups and stakeholders are
represented in the project?

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SIP GUIDE CZ
PROJECT APPLICATIONS – WHEN?
• BE AWARE that it is necessary to
elaborate:
• PROGRESS CHART
• Estimate time demand for as smallest
task sequences as possible (ACTIVITIES)
• Expect “normal” conditions and average-
skilled employees
• It is better to have poor time projection
than none!
• Include time reserves into your schedule
• Make timeline estimations with regard
to the deadlines set by founder/investor
(time-limit: max. project duration must
not be exceeded)
PROJECT APPLICATIONS – HOW?
• OVI & SOV
• Description of activities, results and
outputs of the project from the view of
their OVI & SOV
Slide 1.59
224
• e.g. elaborate documentation, supply
material, presence sheets, jobs created,
etc.
• It can be divided into three basic
categories:
• Material sources (materials, machinery,
vehicles, premises, ICT, energies, etc.)
• Human resources (internal staff,
external consultancy, etc.)
• Financial resources and time
(contribution through own/family money,
bank loans, subventions, necessary
technology determined periods, required
deadlines, etc.)
PROJECT APPLICATIONS – FOR HOW
MUCH?
• BE AWARE that it is necessary to
elaborate:
• PROJECT BUDGET
• ACTIVITIES + OUTPUTS/RESULTS
• Costs:
• Title of the cost and its description
Slide 1.60
(staff costs – full-time, part-time;
purchase of services; investments; office
rent; etc.)
• Unit (pc; hour; month; etc.)
• Number of units (value)
• Price per unit (in CZK; EUR; USD; etc.)
• Total costs (number of units * price per
unit = total)
• Source of financing (own contribution;
subvention; loan; co-financing rate; etc.)
EXERCISE 2 – PROJECT LOGFRAME
Create your own brief proposition for
project logic – proceed in the accordance
with the project logframe
Slide 1.61
Exercise 2 – Project Logframe (2)

• Objectives hierarchy
• Preconditions
• OVI
• SOV

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225
SIP GUIDE CZ
EXERCISE 2 – PROJECT LOGFRAME (3)
Objectively verified indicators (OVI):
What you will see with your own eyes, hear
with your own ears, taste or what you touch
after achieving the objectives.
However it can be only „subjective opinion“!
It might be a process.
And indicators should fulfill the QCT rule
(quality, concrete, time)
EXERCISE 2 – PROJECT LOGFRAME (4)
Sources of Objective Verification (SOV):
Simply: where shall we find an evidence?
How and who will collect it?
Where will it be „tracked“?
226
FEEDBACK AND WRAP UP
• There are various forms of funding
available, some of which involve giving
up a stake in your organisation
• Use the checklist to make sure you have
the right things in place
FURTHER INFORMATION AND NEXT
STEPS
If you’d like to find out more about the Social
Innovation programme and be considered
to be a delegate please speak to your
facilitators or contact:
H T T P : / / W W W. C M Z R B . C Z /
FORMULARE/ZARUKA-ZA-UVER-PRO-
ZACINAJICI-PODNIKATELE

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LEADERSHIP AND PEER SUPPORT

WELCOME

Aim:
• Leadership Training for Managers benefits anyone who interacts with internal
or external customers, project team leaders, employees who serve on teams, or
managers who want to enhance their leadership skills development in order to
achieve outstanding results.
• This management leadership training course will teach you how to stop
managing and start leading; and, as a result, make you a vital part to your
organisation’s future.

Today’s facilitators are:

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228
AGENDA:
-30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and overview
0.15 – 1.15 – Self Awareness
1.15 – 2.00 – Communication
2.00 – 2.15 – Break
2.15 – 3.00 – Leadership / Teambuilding
3.00 – 3.30 – Planning / Goal Setting
3.30 – 4.00 – Exercise – Ideas for personal
development plan
4.00 – 4.15 – Break
4.15 – 5.00 – Positive and negative
synergy in the team
5.00 – 5.30 – Conflict and its solution
5.30 – 6.00 – Feedback and next steps
Slide 1.3
LEADERSHIP
The main objective of this session of the
course is to provide you with the necessary
skills to become an effective leader. This
session will introduce you to basic leader-
ship theories as you pursue leadership roles
in your business and the community. This
module offers theory in developing skills
in the areas of self- awareness, communi-
cation, planning / goal setting, and lead-
ership / teambuilding to help you develop
the skills and knowledge to support you in
leadership.
We’ll start by watching a video:
https://www.youtube.com/watch?v=-
jU4oA3kkAWU&feature=youtu.be
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SIP GUIDE CZ

5 LEVELS OF LEADERSHIP Right SELF AWARENESS

Respect
People follow you for who you are and what
you are representing.
5. THE POWER OF PERSONALITY
Expansion
People follow you for what you did for
them.(this position demonstrates the overall
growth)
4. HUMAN CAPACITY DEVELOPMENT
Results
People are following you for what you did
for your organization. (problems, thanks to
the pace, are solved with minimal effort)
3. PRODUCTIVITY
Relationships
People follow you because they want to(work
becomes fun, but if you stay too long, highly
motivated people are disturbed)
2. COHERENCE
People follow you because they are obliged
to.(the longer you stay at this level, the more
people will change and their ethics will not
grow)
1. POSITION
Self awareness is about understanding
yourself in a way that allows you to
understand who you really are and why
you do things in the way that you do. By
developing your self awareness you can gain
control over yourself in certain situations.
Learning outcomes covered in this section:
• Appreciate what is understood by self
awareness and personal development
• Understand that personal development
is an ongoing requirement
• Recognise your current personal
development needs
• Developing your own mission and vision
statements
Being self aware requires reflection and
reflection requires you to think about
yourself with regard to your actions, feelings,
interactions and thoughts. Reflection can be
undertaken by yourself or with other people

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230
SELF AWARENESS (2)
There is a lot to learn about oneself in good
and bad times through reflection, which can
allow an individual to:
Gain more control and make better decisions
Be more flexible and confident in our
approach
Help ourselves deal with challenges in a
more positive and less anxious way
Interact better, communicate more
effectively and understand our relationships
with others more fully
Reduce our stress levels and get more out
of life
Self awareness, therefore, can lead to
personal development as an individual
has identified their strengths, weaknesses,
opportunities and threats through reflection
and analysis
Slide 1.7
SELF AWARENESS - EXERCISE SELF AWARENESS - EXERCISE
Strengths – list the particular skills and
STRENGTHS WEAKNESSES qualities you have as an individual, as
well as the people and resources you have
available to you
Weaknesses – also include skills you wish to
acquire and qualities you wish to develop,
as well things you don’t have access to but
may need in the future
Opportunities will include resources
available to you and will strongly link to your
strengths – basically any potential situations
OPPORTUNITIES THREATS which could positively affect your personal
and professional development
Threats are the factors that have the
potential to hinder your progress
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SIP GUIDE CZ

PERSONAL DEVELOPMENT Personal learning and development activities PERSONAL DEVELOPMENT - EXERCISE
can come about by different channels which
Personal development is about developing include
and improving aspects of an individual • Hands on work; learning by observing
which can include areas such as education. others around you; organised and
Motivation, feelings, health, skills, abilities structured training programmes; Currently I am... In 2 years I want...
and more. perfomance reviews/appraisals; formal
As life is constantly changing, it is necessary education; personal reading and
to continue developing as a person in order research
to improve as individuals and to be able to
adapt to changing situations.
Personal development requires an individual
to set goals or benchmarks that define a
point which can be achieved through goal
setting and planning
This allows progress and assessment
to occur which allows an individual to
receive feedback regarding change and
development. In 10 years I want… In 5 years I want…

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232
CURRENT PERSONAL DEVELOPMENT
NEEDS
There are 3 aspects you need to consider:
• Your knowledge base
• Think of this as a personal reflective
audit. What knowledge do you need to
gain to achieve your goals? What is your
baseline?
• Yours skills
• Knowledge is a prerequisite for skill
development. A person needs to know
what to do and when to do it (knowledge).
However a gap separates knowing things
from actually being able to do them
• Your attitude
• Attitude can set you aside from other
people and give you a real advantage
in the workplace. Attitude is a mental
set, a way of thinking and behaving that
makes a person respond in a particular
way to a particular stimulus
Slide 1.13
PERSONAL DEVELOPMENT NEEDS - PERSONAL MISSION STATEMENT
EXERCISE
Keep your statement simple and brief – 3 –
5 sentences
KNOWLEDGE Write your statement so that it focuses
on who you want to become and keep it
What? How? direct with regard to the areas you want to
develop/change
Keep your mission statement positive
Develop a mission statement that you can
use n your everyday decisions and actions
SKILLS Consider how your mission statement will
impact on other areas of your life
What? How? Keep your mission statement personal and
it will inspire you into achievement
Always remember that your mission
statement is not inflexible
ATTITUDES MISSION - EXERCISE
What? How? If you never had to work another day in
your life, how would you spend your time
instead of working? (discuss with the person
next to you)
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COMMUNICATION
Everyone uses interpersonal communication
skills. We use them at home with our
families, in the workplace with our bosses
and coworkers, on our computers when we
answer email, and on the telephone when
we order pizza. This manual is intended
to help you improve your interpersonal
communication skills and develop new skills
to become a more effective communicator.
Interpersonal communication applies to all
of our relationships, personal and business.
Others respect or reject us based on our
interpersonal communication skills. People
send us messages in every interpersonal
communication encounter. Those messages
can be explicit (verbal comments) or implicit
(nonverbal facial expressions, other body
language, and physical space).
The first step in communication is using the
appropriate method. There are a variety of
tools available and you will need to decide
whether a situation calls for an email, a
phone call or a face to face conversation.
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234
COMMUNICATION (2)
Communication should never be a one-
way process. When we talk about ‘actively
listening’, it means ensuring you are
engaged with others in order to understand
what they are saying. Asking questions
and summarising the main points of the
conversation is a good way of checking your
understanding of what has been discussed
and demonstrates that you have been
listening to what the other person has been
saying.
Competency in written and verbal
communication skills means you are able
to:
• Select appropriate and effective
communication methods.
• Ascertain the appropriate tone and level
of language in specific situations.
• Present information via a verbal or written
medium that is easily comprehensible to
others.
• Actively listen and pay attention to
people, asking questions if necessary.
Slide 1.18
COMMUNICATION (3)
It takes just a quick glance, maybe three
seconds, for someone to evaluate you when
you meet for the first time. In this short
time, the other person forms an opinion
about you based on your appearance,
your body language, your demeanor, your
mannerisms, and how you are dressed. So
whether they are in your career or social
life, it’s important to know how to create a
good rst impression. Tool 5 will help us to
work on first impressions, providing some
useful tips.
The difference between the words people
speak and our understanding of what
they are saying comes from non-verbal
communication, otherwise known as “body
language”. By developing your awareness
of the signs and signals of body language,
you can more easily understand other
people, and more effectively communicate
with them.
Communication is made up of more than
just the words we use. Our tone of voice,
Slide 1.19
facial expression and body language all
play a major role in how we’re understood.
And if we’re communicating in a situation
where we can’t use all of these elements to
enhance our messages, we need to be very
careful.
COMMUNICATION (4)
Are you comfortable talking with people
you don’t know? Do you dread saying no?
Do you allow strangers to cut you o in the
cafeteria line? Do you regret stepping on
others to achieve your goals? Do you feel
you get your needs across to others?
Your words and behavior tell people who you
are. Human communication and behavior
fall into three basic categories:
1. Passiveness.
2. Aggressiveness.
3. Assertiveness.
Assertiveness is an alternative to the
extremes of passiveness and aggressiveness.
Slide 1.20
SELF-PERCEIVED COMMUNICATION - 11. Talk in a small group of friends____
EXERCISE 12. Present a talk to a group of
acquaintances____
Please indicate how competent you
believe you are to communicate
in each of the situations described
below. Indicate in the space provided
beside each item your estimate of your
competence.
Presume 0 = completely incompetent and
100 = competent.
1. Present a talk to a group of strangers_____
2. Talk with an acquaintance____
3. Talk in a large meeting of friends____
4. Talk in a small group of strangers____
5. Talk with a friend____
6. Talk in a large meeting of
acquaintances.____
7. Talk with a stranger____
8. Present a talk to a group of friends____
9. Talk in a small group of
acquaintances____
10. Talk in a large meeting of
strangers____
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COMMUNICATIONS PLANNING (2)
Understand your Audiences
Identify and list your different audiences.
Try to identify who to communicate with and
why.
Now drill down into your communication
objectives and clarify specific objectives for
each audience. A good way to do this is to
think about the audience’s needs – what do
they need and want to know from you? List
all the objectives (there may be several) for
each audience in your plan.
Plan Communications Messages And
Channels
Once you have clarified your objectives and
got a full understanding of the different
audiences you need to communicate with,
it’s time to plan the communications – that
means working out the messages needed
to meet your objectives and when and how
these will be delivered.
Before starting on the detail of your plan, first
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236
jot down all the possible communications
channels you could use. Think broadly
and creatively! You probably already use
lots of great ways to communicate in your
company, and some new ones may help get
your message across. Here is a list to get
you started:
• Email; • Newsletter; • Teleconference; •
Notice boards; posters; podcast….............
COMMUNICATIONS PLANNING (3)
Remember to use existing channels
To plan out the message for each audience,
start by thinking about the broadest audience
groups first. The broadest audience might
be “All people working in the London Office”
and “All people working in the Sumperk
Office ”.
As you consider each audience in turn, ask
the following questions:
• What does the audience need and want
to know?
• When do we need to communicate?
Slide 1.24
• What is the regular or preferred channel
for reaching this audience?
• For this specific audience and message,
what is the most effective way to get your
message across?
Several messages over time may be required
to meet the objectives of each audience.
Make sure the messages you plan “add up”
to meet the audience’s objectives.
COMMUNICATIONS PLANNING (4)
Monitor Effectiveness
It’s good to get feedback on the
communications you have planned and
implemented. Ask people from different
audiences how you are doing. Check they
understand the messages you need them
to hear. By getting timely feedback, you can
tune any future communications that you
have planned to better meet people’s needs
or fill any gaps so far.
Slide 1.25
THE COMMUNICATION CYCLE THE 7 CS OF COMMUNICATION LEADERSHIP

The Communication Cycle provides a Communication needs to be: There are many definitions of leadership.
checklist that helps you communicate Many lines have been written attempting to
effectively with your audience. • Clear capture the essence of leadership in just a
• Concise few words.
• Concrete The Oxford English Dictionary definition of
• Correct leadership is simply:
2. Compose/ • Coherent “The action of leading a group of people or
Encode
• Complete an organisation, or the ability to do this.”
• Courteous We need now to define ‘lead’ in this context,
1. Aim 3. Transmit/ which is more helpful to appreciating the
Deliver
SOURCES OF COMMUNICATION breadth and depth of the word leadership.
Here are the most relevant points from the
Distribution of handouts. dictionary:
Be in charge or command of
Organise and direct
6.Change 4. Received Set a process in motion
Improve feedback Be a reason or motive for (others to act,
change, etc.)
5. Analyse/
Decode/
Learn

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LEADERSHIP (2)
Leadership is centrally concerned with
people. Of course leadership involves
decisions and actions relating to all sorts
of other things, but leadership is special
compared to any other role because of
its unique responsibility for people - i.e.,
the followers of the leader - in whatever
context leadership is seen to operate.
Leadership and management are commonly
seen as the same thing, which they are
not. Leadership is also misunderstood to
mean directing and instructing people and
making important decisions on behalf of an
organization. Effective leadership is much
more than these.
Good leaders are followed chiefly because
people trust and respect them, rather than
the skills they possess. Leadership is about
behaviour first, skills second.
This is a simple way to see how leadership is
different to management:
• Management is mostly about processes.
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238
• Leadership is mostly about behaviour.
LEADERSHIP (3)
Management relies heavily on tangible
measurable capabilities such as effective
planning; the use of organisational systems;
and the use of appropriate communications
methods.
Leadership involves many management
skills, but generally as a secondary or
background function of true leadership.
Leadership instead relies most strongly on
less tangible and less measurable things
like trust, inspiration, attitude, decision-
making, and personal character. These are
not processes or skills or even necessarily
the result of experience. They are facets of
humanity, and are enabled mainly by the
leader’s character and especially his/her
emotional reserves.
Another way to see leadership compared
with management, is that leadership
does not crucially depend on the type of
Slide 1.32
management methods and processes a
leaders uses; leadership instead primarily
depends on the ways in which the leader
uses management methods and processes.
Good leadership depends on attitudinal
qualities, not management processes.
Humanity is a way to describe these
qualities, because this reflects the leader’s
vital relationship with people.
Qualities critical for a leader’s relationship
with his/her people are quite different to
conventional skills and processes.
LEADERSHIP QUALITIES
Examples of highly significant leadership
qualities
• Integrity; honesty; humility;
• courage; commitment; sincerity;
• passion; confidence; positivity;
• wisdom; determination; compassion;
• sensitivity
People with these sort of behaviours and
attitudes tend to attract followers. Followers
Slide 1.33
are naturally drawn to people who exhibit
strength and can inspire belief in others.
These qualities tend to produce a charismatic
effect. Charisma tends to result from
effective leadership and the qualities which
enable effective leadership. Charisma is by
itself no guarantee of effective leadership.
LEADERSHIP TIPS (JACK WELCH)
• There is only one way - the straight way.
It sets the tone of the organisation.
• Be open to the best of what everyone,
everywhere, has to offer; transfer
learning across your organisation.
• Get the right people in the right jobs -
it is more important than developing a
strategy.
• An informal atmosphere is a competitive
advantage.
• Make sure everybody counts and
everybody knows they count.
• Legitimate self-confidence is a winner
- the true test of self-confidence is the
Slide 1.34
courage to be open.
• Business has to be fun - celebrations
energise and organisation.
• Never underestimate the other guy.
• Understand where real value is added
and put your best people there.
• Know when to meddle and when to let
go - this is pure instinct.
LEADERSHIP PRIORITIES
As a leader, your main priority is to get the
job done, whatever the job is. Leaders make
things happen by:
• knowing your objectives and having a
plan how to achieve them
• building a team committed to achieving
the objectives
• helping each team member to give their
best efforts
As a leader you must know yourself. Know
your own strengths and weaknesses, so that
you can build the best team around you.
EFFECTIVE GOAL SETTING
Setting goals and objectives should be your
number 1 priority if you want to take charge
of both your professional and personal life,
take control the wheel  and get out of the
backseat.
Setting goals and objectives will not just
enhance your career or quality of life, lets
face it you can’t get what you want if you
don’t know what you’re going for. 
In addition to the fact that goals have an
extraordinary power over the direction of
your life and business and also don’t forget
that accomplishing a goal that you worked
really hard for is one of the more satisfying
pleasures a person can experience. 
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EFFECTIVE GOAL SETTING (2)
• Set goals that are linked to business
priorities
Objectives must be regularly reviewed and
updated as circumstances change.
• Linked to results, not activities
This means that we are concerned with
output not activities - the ends and not the
means.
• Measurable and specific
Objectives must state what exactly is to
be measured, and within that, define
acceptable levels of performance.
• Challenging but attainable
Ideally, your people should set their own
objectives. Often these will be tougher
than if set by the manager. They should be
stretching, challenging and developmental.
Weed out unattainable objectives as these
can be de-motivating.
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240
EFFECTIVE GOAL SETTING (3)
• Matching experience and capability
Objectives should take account of the
individual’s ability, experience, knowledge
and any development plan in place.
• Updated
Certain things may occur which affect the
objective being measured but which are out
of the control of the jobholder. As a result,
objectives must be regularly updated, taking
account of the business environment.
• Number of objectives
Don’t set too many objectives. It is better to
focus on a few quality areas rather than a
long list which is impossible to achieve.
Compatible upwards/downwards/sideways
Objectives should not clash with other
people’s activities, so they need to be
compatible upwards, downwards and
sideways..
Slide 1.38
HARD V SOFT OBJECTIVES
Hard objectives can be measured clearly
in terms of outputs such as turnover, profit,
percentage increases, etc.
Soft objectives define the difference between
‘acceptable’ and ‘excellent’ performance.
Soft objectives cover areas where the
way the job is done is as important as the
quantitative results.
Often soft objectives are measured through:
Customer feedback Surveys, complaints,
mystery shopping.
It is important to break down soft objectives
into desirable behaviours, for example a
positive attitude for a customer service role
tells you little until it is broken down into:
• Politeness
• Smiling and good eye contact with the
customer at all times
• Appearance
• Calm and practical approach
• Good knowledge of the organisation’s
services and systems
Slide 1.39
GOAL CASCADING GOAL CASCADING OBJECTIVE SETTING

Cascading goals means breaking down the Objectives need to be set at all levels of the
corporate goals into a set of smaller goals CORPORATE or STRATEGIC PLANS business. This ensures commitment at the
that are relevant to each department. A higher levels of management and clear goals
simple way to think about this process is to and objectives at lower levels. This is often
think about goals spilling over a cliff like a achieved through cascading the corporate
waterfall. BUSSINESS PLANS or strategic objectives into individual jobs.
Goals must spread throughout an entire
organization in order to be executed. EXERCISE:HOW DO WE WORK
The department goals describe what each
unit needs to achieve. These goals are TEAM GOALS Distribution of handouts.
then broken down further until individuals
in the unit have their own performance
goals. In this way, progress throughout the
organization is measurable. INDIVIDUAL OBJECTIVES
Cascading goals isn’t an easy or fast process.
Be prepared to meet resistance in getting
people to get on board. Some may need
specific training because they don’t know
how to develop goals and others may need
coaching to enhance their performance.

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EXERCISE – IDEAS FOR PERSONAL POSITIVE AND NEGATIVE SYNERGY
DEVELOPMENT PLAN
Two types of team work :
The little actions you make are better than Cooperation means the systematic
the big ones you are planning. integration of individual efforts in achieving
a common goal. This integration can take
What two forms :
What • Synergy - Group members are currently
Start am I Goal
I stop working on a particular task or part of it
Date going date
doing and share responsibility for the outcome
to do
/ creative solution to the problem. The
outcome of the work depends on the
most productive people.
• Coordination - the task is fulfilled by
individuals or individual units sequentially
so that only at the end of one part can
follow. Processes in the production
company: Purchase - Input control -
Mounting - Exit control - Expedition. The
outcome is limited by the capabilities of
the least competent individuals (team
members) that affect the speed and
quality of work.
POSITIVE AND NEGATIVE SYNERGY (2)
Positive synergy
The team result is not simply measurable by
the sum of individual results. It is the fact
that the people in the group are connected
with certain ties that they are replenishing
their shortcomings with the capabilities of
others. The ideas of one stimulate the ideas
of others, create something new. Group
performance then exceeds the sum total of
individual members. This is called synergy.
Synergy is what adds teamwork to the work
of all individuals :
Individual work + synergy effect = team
result
Mathematical formula : 1+ 1+ 1 = 5
POSITIVE AND NEGATIVE SYNERGY (3)
Positive synergy results from :
• different knowledge and experience
• inspiration
• different approach to work

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242
• responsibility towards colleagues
• pressure of co-workers
• support
• presentation of the results of the
work
Positive and negative synergy (4)
Negative synergy
Under certain circumstances, team results
may be worse than the sum of individual
efforts for various reasons :
Individual work - negative synergy
effect = team result 
Mathematical formula : 1 + 1 + 1 = 1
Slide 1.49
POSITIVE AND NEGATIVE SYNERGY (5)
Reasons of negative synergy :
Diversity of goals (enforcement of own
goals to the detriment of a common goal, e.g.
everyone fights only for their department)
Strong effort of individuals to promote
themselves (where there are agressive and
competitive personalities, the common result
retreats before the need for individuals to
win, to fight for their solutions)
Inability to get a good opinion (when
some team members have interesting
suggestions but who are ashamed or unable
to persuade the others, there may be a loss
of useful thoughts)
Inadequate discussion management
(stronger individuals overcame those who
are weaker)
POSITIVE AND NEGATIVE SYNERGY (5)
Team work takes longer to reach
agreement and decision (in case of a
need for a quick operational decision, a
team decision can cause a delay)
Negative pressure of the group (certain
people under pressure reduce performance)
Fear of differences (tense situations
may lead to the acceptance of a common
opinion which can be bad)
Group laziness (people lie down in their
work when they realize that the outcome
depends on others)
Poor interpersonal relationships
(antipathy, intrigues, sniffing, etc. lead
people to focus on conflicts rather than on
their own work)
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TEAM VERSUS GROUP DREAM TEAM (JOHN C. MAXWELL) DREAM TEAM (JOHN C. MAXWELL) (2)

T - together All successful teams have some common Team members communicate with each
features. If a leader or coach is able to grow other
E - everybody
it in the group, the individuals will create a Clear communication lines, which are
A - achieves supported by everyday practice, must be
cohesive team capable perform any desired
M - more performance. put in place. People in a team must feel
Required Dream Team features. that they are in an environment where
Working group Team Team members are mutually dependent they can safely and without the feeling of
Selfish people do not have a chance in the team. being threatened to offer suggestions and
Hierarchy Equality People have to look at each other. A team can criticisms without being criticized negatively.
not be built from a group that does not have Open communication between collaborators
Given structure Agreed arrangement internal ties. This feature of the team is very well increases productivity.
built outside the working environment. Popular
are so-called teambuilding activities, which
Management executives Lead by thought Team members are developing together
contribute to the creation of friendly relations
As soon as the team members look after
and at the same time prevent the formation of
Focus on tasks Focus on goals each other, have a common goal and
different groups. 
communicate with each other, they are ready
Authoritative decision Participatory decision
Team members know what’s important
Team members have a clear vision and long- to start their growth. People should grow
making
term and partial goals. Anyone who does not personally and professionally. Education
Monologue Facilitation know what is important to the team can not and information is important. 
help the team. Whoever does not know what is
Stimulation by manager Self-motivation important for the team can not help the team,
but in fact he really does not make the team to
be successful.
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244
People make a good team
People know each other’s strengths and
weaknesses. A well-co-operating team
requires partner attitudes. Collaborators
have the desire to contribute to the team
and have to expect contributions from
everyone else.
The confidence of the team members will
enable them to work as one unit.
DREAM TEAM BY JOHN C. MAXWELL (3)
Team members put the interest of the
team ahead of their individual rights
Individualism wins trophies, but teamwork
wins the flag. The success of the people will
come with the team’s success.
The efficient team has a well-placed
bench of substitutes
People in the team should be substitutable
in case they get sick, they are tired.
“Substitutes” should be able to handle work
for at least a certain time.
Slide 1.54
Team members know exactly the team
situation
If all team members are informed about
their status in a team they will better know
what to do for the team´s success.
Team members are willing to pay for
their success
No battle will be won and no team will be
successful without the personal conviction
of everyone that it is worth their sacrifice.
People must feel binding and personal
passion
CONFLICT AND ITS ASSERTIVE
SOLUTION
Conflicts occurring both in employment and
in private life. We often tend to address them
stereotypically. Many people behave simply
as programmed computers that are unable to
learn from their own mistakes.
Strengthening factors:
• Distress.
• Fatigue.
• Difficult contact with others.
• Insufficient social skills.
• Negative past experience.
• Personal impatience.
• Impulsivity.
CONFLICT AND ITS ASSERTIVE
SOLUTION (2)
Typical non-adaptive forms of behavior
when a conflict occurs:
• We pretend that everything is all right.
• We laugh as if nothing has happened;
we do joke.
• We are silencing or diverting attention
from the conflict.
• We cry, we lose our anxiety, we crash.
• Somebody’s getting angry.
• We’re looking for someone stronger to
help us.
• We moan, we wail.
• We’re complaining about someone.
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CONFLICT AND ITS ASSERTIVE FEEDBACK AND WRAP UP

SOLUTION (3)
Phew – we covered a vast amount
Steps to solve the conflict: No one said it would be easy running an
organisation – but there is plenty of support and
Break: Especially when the other person spending time doing some internal and external
behaves manipulatively or aggressively. The examination makes a difference
break gives you time to clarify the situation
and relax your own tension. Inhale deeply and
exhale very slowly. FURTHER INFORMATION AND NEXT
Clarify the needs of the other person: Ask STEPS
openly, calmly, without emotion and irony,
without giving the intention. Be careful not to If you’d like to find out more about the Social
create distrust. Innovation programme and be considered to be
Explain the other side your needs: Simply, a delegate please speak to your facilitators or
quietly, briefly, directly and honestly. Be aware contact:
of being too vigorous and energic - they are
perceived as aggression.
Summarize conflict: When summarizing, you
can often find a common basis, and you may
even have no real conflict of interest.
Agreement - compromise: Agree on which
solution would be the most acceptable or least
painful for both parties. The WIN - WIN solution
is important.

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246
HANDOUT

APPLICATION BEHAVIOR SAMPLES

in standard situations CONSCIOUS application of

when it’s time to think LEARNED knowledge and skills

HOW
DO in non-standard situations
UNCONSCIOUS
relationships to

WE
with standard solutions people
LEARNED and values

WORK?
in crises where DIFFERENT receiving and
standard procedures INHERITED processing of
are not available the stimuls

in serious
danger SHARED application of
INHERITED knowledge
and skills

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SIP GUIDE CZ HANDOUT

rational intelligence emotional intelligence

logos pathos

rational component emotional component

SOURCES OF
COMMUNICATION

ethical component

ethos

values intelligence

248
HANDOUT

CONFLICT Strengthening factors:

Distress
STRENGTHENING

AND ITS
Fatigue
Difficult contact with others FACTORS Views and
attitudes
Insufficient social skills
ASSERTIVE Negative past experience
Personal impatience
before the
conflict
Emergence
SOLUTION Impulsivity
of conflict

Conflicts occurring both in employment and in private life. We often tend to address them
stereotypically. Many people behave simply as programmed computers that are unable to
learn from their own mistakes.
Strengthening
The vicious circle of conflict factors
Reaction

Steps to solve the conflict:

• Break: Especially when the other person behaves manipulatively or aggressively. The
break gives you time to clarify the situation and relax your own tension. Inhale deeply
and exhale very slowly.
• Clarify the needs of the other person: Ask openly, calmly, without emotion and irony,
without giving the intention. Be careful not to create distrust.
In case of a conflict situation, we use feedback extensions:
• Explain the other side of your needs: Simply, quietly, briefly, directly and honestly.
Beware of excessive vigor and strength - they are perceived as aggression.
„I am feeling...“
• Summarize conflict: When summarizing, you can often find a common basis, and you
„When you…“
may even have no real conflict of interest.
„Because…“
• Agreement - compromise: Agree on which solution would be the most acceptable or
„And I want…“
least painful for both parties. The system of WIN - WIN is important.

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PITCHING & PUBLIC SPEAKING

WELCOME

Aim:
• To help people develop their elevator pitch
• To assist people to be able to present in public

Today’s facilitators are:

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250
AGENDA:
-30 – 0.00 – Arrivals and refreshments
0.00 – 0.15 – Welcome and scene setting
0.15 – 1.15 – Motivation and
communication
1.15 – 2.00 – Use of acquired skills into
practice
2.00 – 2.15 – Break
2.15 – 3.00 – Exercise – Estimate your
strength in communication
3.00 – 3.45 – Introduction to pitching
3.45 – 4.30 – Exercise – prepare your
pitch
4.30 – 4.45 – Break
4.45 – 5.45 – Test your pitch
5.45 – 6.00 – Feedback and next steps
Slide 1.3
MOTIVATION AND COMMUNICATION
Body language - a dynamic component
of speech
During hearings we observe another level
of conversation – language of our bodies
Aim: Present without distractions and
recognize the significance of others’ ex-
pressions.
• The state of our mind raises through our
body language out.
• Language of the body can usually tell
more than our mouth.
• Body language gives a very strong first
impression.
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MOTIVATION AND COMMUNICATION
(2)
Using body language knowledge
• Sell yourself without any interfering
features.
• If you are not satisfied with your body
language, do not try to change it.
• People who try only to change body language
can act unnaturally.
• Rather change the state of your mind.
• Replace disturbing thoughts with positive
ones that rely on your life´s values.
• Your conscious positive thoughts can simply
overwhelm the state of mind.
• A positive state of mind immediately
manifests itself in your body language.
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252
MOTIVATION AND COMMUNICATION
(3)
Recognizing the manifestation of others
• Everyone can see the body language of the
people subconsciously and read it through
their feelings.
• A more conscious control over the
development of behavior and relationships
can be gained by conscious readings and
knowledge of body language.
• However, individual manifestations of
body language can not be considered
unambiguous.
• The legibility of body language recognition
increases with the observation of a greater
number of manifestations and their
combinations.
• So do not haste with your judgment.
Slide 1.6
BODY LANGUAGE – NATURAL AND FRIENDLY SPEECH

Displays and characters Passive Assertive Enthusiastic Agressive

Low, short, evasive, which Equally devoted to everyone, Long, smiling,with wide Sharp, overpowering,
Eye contact
looks and turns eyes focused, calm open eyes looking through

Detached,hiding behind the Permanent position, Shorter distances,friendly Attack approach, disgusted
Proxemics and Movement barrier purposeful movement in oscillation pull, the body turns away
in Territory the territory, significant
approximation to people

Velocity and dynamics Low, subdued Natural Higher tempo, graduating Tension,rapid and fast
movements

Postural habits Bent back, barriers,mirroring Self-conscious, straight back, Dynamic, head forward, Expressing attack
Mirror image as a follower mirroring as a leader mirroring as a leader

Restrained, defensive, Open, defining  Large and open,the highest Stabbing, hollow,
Gestures
shrugging, barriers degree of openness impending,without gestures
 

Face expressions and Volatile, uncertain Relaxed, peaceful, Encouraging, friendly, joyful Serious, frowning, stiff,
smiles sympathetic almost shining without a smile

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BODY LANGUAGE DURING EXERCISE – BODY LANGUAGE DURING

PRESENTATION PRESENTATION

Aim: To better recognize different types of Displays and Passive Assertive Enthusiastic Agressive
manifestations and to realize what impression I characters
am doing on the others and why.
Eye contact
Knowing what the different body language
displays mean.
Proxemics and
Write the self-expression characters in the Movement in
checklist below. Territory

Comment your own presentation abilities.

Velocity and
Whether it is passive, assertive, enthusiastic
dynamics
or aggressive.
Distribution of handouts.
Postural habits
Mirror image

Gestures

Face expressions
and smiles

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PSYCHOLOGY OF EMOTIONS
Aim: Understanding the psychology of emotions
to better diagnose needs
Emotions – in short ways of experiencing.
Emotions are a very powerful dynamic
personality factor.
Emotions are also a trap because we can not
deliberately make the production of that or that
hormone.
PSYCHOLOGY OF EMOTIONS (2)
How to measure emotions? And can we even
measure sadness, joy, pleasure, etc.? Most
authors say not. However, we are able to express
a certain degree of emotions.
For our purposes, a perfectly satisfying
description is given in the book The Game of
Human Happiness by Miroslav Plzák:
Let’s try to look at emotions now in terms of
“economic”. The basic concepts will be costs
and profits. Under the term of emotional
Slide 1.11
costs we will understand all forms of emotional PROVIDING FEEDBACK (2)
expenditure, or the sum of negative emotions.
Emotional profit is then a sum of positive Feedback recommendation:
emotions. • Concentrate on what can be changed.
From a number of expert texts and from the own • Do not say “that’s good,” but what was
experience it can be deduced that individual particularly good.
always acts in such a way that the purpose of • Express yourself personally – I think, my
one´s deliberate action is emotional profit. feeling is, etc.
• Say the name „Tom your sentence ...
PROVIDING FEEDBACK impressed me positively„
• Describe behavior - words, sentences,
Aim: To provide feedback to your colleagues gestures, attitudes.
positively and motivationally • Suggest new behavior as you would solve
the situation yourself.
What are the reasons for providing feedback:
• Possibility to compare whether my perception
corresponds to how others see me.
• Making sure I’m doing well and increasing
interest in repeating the performance.
• Suggestions to improve performance
weaknesses.
Who gives feedback:
• The counselor and the client express their
feelings and what caused them.
• Observers provide feedback based on
instructions and feelings.
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EMPATHIC LISTENING • in order to reach a full EXERCISE – EMPATHIC LISTENING (3)

understanding of the interpreter’s
Aim: Practice and apply the rule “first try to opinion The interpreter will fully identify and
understand, then to be understood„ • Trying to use: experience the meaning of what is
• above all, summarizing and verifying presenting.
Sincere interest in understanding the understanding
position of the other person
• perception and recognition of The observer writes a dialog and informs
emotions the other course participants about the
1. Empathic listening course of the interview. The observer does
2. Attentive listening EXERCISE – EMPATHIC LISTENING (2) not describe the content of the interview
3. Selective listening but its form. What the listener skipped and
4. Pretended listening Listener: what he used.
5. Disregard • Tries to omit:
• evaluation based on listener´s
values USE OF ACQUIRED SKILLS INTO
• to obtain information that he PRACTICE
EXERCISE – EMPATHIC LISTENING considers important - you do not
investigate but you just listen How to put skills into practice: Scheme.
First try to understand, then verify how you • advise according to listener´s stands • Careful preparation.
really understand and then try to be understood. and needs • Regular habit.
Choose a controversial topic in a group. • interpreting what the feelings mean • Colleague.
Give out in the groups following roles: listener, • Explains own opinion: • Reminders - cards, diary, stickers,
interpreter and observer. • after agreeing that he fully checklist.
Listener: understood the point of view of the • Identify the ideal and minimal time
• Creates room: dimension that you put into practice
interpreter

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 every day for the preparation and USE OF ACQUIRED SKILLS INTO PRACTICE EXERCISE – ESTIMATE YOUR
transfer of gained skills. (2) STRENGTHS IN COMMUNICATION
• Think about the environment you want
to apply. What are their causes: On a scale of one to ten /1 = absolutely
• Laziness. MYSELF disagree, 10 = fully agree/ evaluate your
USE OF ACQUIRED SKILLS INTO • Inconsistency. sense of satisfaction in communication
PRACTICE (2) • I am not the master management.
of my life. I can explain to others that they know exactly
How to keep motivation – implement your plan • Loss of motivation. what I mean.
daily: 1 2 3 4 5 6 7 8 9 10
• Share your small successes with a friend or How you can handle When I assign tasks, I get exactly the work
colleagues. them: MAKE IT! results I wanted.
• By reminding your goals and unchecking • Determination. 1 2 3 4 5 6 7 8 9 10
control tasks within a set time. • Strong-mindedness. I know exactly what my superiors expect from
What obstacles you may encounter during a • Personal commitment. me
transfer of the skills: • Public commitment. 1 2 3 4 5 6 7 8 9 10
• Other priorities. • Quality plan. I know from others that I can listen well.
• Personal matters. 1 2 3 4 5 6 7 8 9 10
• It does not work.
• Lack of time.
• Lack of will.

MYSELF

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EXERCISE – ESTIMATE YOUR STRENGTHS IN 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

COMMUNICATION (2) If anyone criticizes me, I am interested in how I
work and what to do with my work.
Before each interview, I’ll make clear what aim 1 2 3 4 5 6 7 8 9 10 PITCHING
I’m following. If the others express themselves emotionally in
1 2 3 4 5 6 7 8 9 10 the discussion, I do not take it personally. There are likely to be many occasions when
I am carefully preparing for difficult discussions. 1 2 3 4 5 6 7 8 9 10 you will need to win over people’s interest in
1 2 3 4 5 6 7 8 9 10 I respect the needs and interests of my your business idea - particularly when you are
Before an important interview I think about communication partners, even though I do not seeking finance.
what it takes to understand the communication agree with them. Whether you are trying to raise money for your
partners. 1 2 3 4 5 6 7 8 9 10 business or just want to perfect your business
1 2 3 4 5 6 7 8 9 10 strategy, a solid elevator pitch is an essential
I can defend my own wishes and interests. EXERCISE – ESTIMATE YOUR STRENGTHS IN tool for achieving your goals. An elevator pitch
1 2 3 4 5 6 7 8 9 10 COMMUNICATION (4) can be delivered either verbally, ideally in 60
In the interviews I can separate the factual and seconds or less, or as a one-page overview of
emotional plane. I’m not afraid to criticize anyone if I know it will your business. Think of the elevator pitch as
1 2 3 4 5 6 7 8 9 10 bring better results. an executive summary that provides a quick
1 2 3 4 5 6 7 8 9 10 overview of your business and details why you
EXERCISE – ESTIMATE YOUR STRENGTHS IN I behave very friendly to myself and speak to are going to be successful.
COMMUNICATION (3) myself encouragingly. We’ll give you some of the concepts, what to
1 2 3 4 5 6 7 8 9 10 include and what to avoid and allow you to
When I’m verbally attacked, I can respond in I can present my work results with confidence. develop and try out pitches on your fellow
different ways. 1 2 3 4 5 6 7 8 9 10 learners.
1 2 3 4 5 6 7 8 9 10 When I find that others are thinking, talking
I can facilitate a conversation among several and understanding differently than me, I am
people so that the result obtained at the end interested in it and I want to understand how
are clear for everybody. they work.
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PITCHING – WHAT TO INCLUDE
1. Problem
The most important thing is to identify a problem
that is worth solving. If your product or service
doesn’t solve a problem that potential customers
have, you don’t have a viable business. Simple
as that.
Now, you don’t have to be solving a massive
problem where the solution will change the
world. That’s great if you are tackling such a
problem, but for most businesses, that’s not the
reality. Problems can be simple—and that’s OK.
As long as you, as an entrepreneur, are solving
a problem that customers have, you can build a
business.  stretch the solution to solve multiple potential
Try and distill your customer’s problem down
to its simplest form. Ideally you should be able
to describe the problem you are solving in one
or two sentences, or potentially a few bullet
points. In the long run, your company may solve
multiple customer problems, but initially you
will be more successful if you just focus on one
core problem.
Slide 1.27
PITCHING – WHAT TO INCLUDE (2)
2. Solution
Too many entrepreneurs start with a solution:
a product or service that they think the market
needs without first identifying the problem they
are solving. As a smart entrepreneur, you can
avoid this mistake by first making sure that
you are solving a real problem that customers
actually have before you define your solution
(see point one).
Once you have clearly defined the problem you
are solving, you need to explain your solution. A
clear problem statement will help you focus your
solution on solving that one problem, and not
problems.
Again, try and distill your solution description
down to as few words as possible. You should
be able to describe your solution at a high level
in just a few sentences or bullet points.
PITCHING – WHAT TO INCLUDE (3)
3. Target market
As you define the problem you are solving, you
should naturally be thinking about the potential
customers who have this problem. In the Target
Market section of your pitch, you will define
exactly who has the problem you are solving
and figure out how many potential customers
you will be trying to sell to.
You should try and divide your target market
into segments—smaller groups of people whom
you expect to market to.
Once you have created a good list of target
market segments, you’ll need to do a little
research and estimation to figure out how many
people are in each segment. Next, try and
estimate what an average person in each group
currently spends each year on their current
solution to the problem you are solving. Now,
just multiply the number of people by how much
they currently spend and you will have a realistic
“market size” number or your target market.
In your pitch, you will want to talk about the
market segments you are targeting, how many
people are in each segment, and the total
amount they currently spend. These numbers
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are critical and must be part of any good pitch
presentation.
PITCHING – WHAT TO INCLUDE (4)
4. Competition
Every business has competition. Even if no one
has come up with a solution similar to what you
have come up with, your potential customers
are solving the problem they have with some
alternative.
For example, the competitors to the first cars
weren’t other cars but horses and walking. As
you think about your competition and existing
alternatives, think about what advantages your
solution offers over the competition. Are you
faster, cheaper, better? Why would a potential
customer choose your solution over someone
else’s?  Describing your key differentiators
from your competition is a great exercise and
ensures that you are building a unique solution
that customers will hopefully choose over other
alternatives. These differentiators will also help
you focus your marketing on the key value
proposition that you offer that your competitors
don’t.
Slide 1.30
260
Bear in mind that social innovators are
competing with all sectors
PITCHING – WHAT TO INCLUDE (5)
5. Team
As great as your idea is, only the right team will
be able to effectively execute and build a great
company.
In the “team” portion of your pitch, you should
talk about why you and your business partners
are the right team to execute on your vision
and why your team’s skill set is precisely what is
needed to lead your company to success. People
often say that a company’s leadership team
is more important than the idea—and this is
often true. No matter how great or unique your
solution is, if you don’t have the right people on
board, you won’t be able to see it to fruition.
It’s also OK to not have an entire team in place.
It’s more important to understand that you have
gaps in your management team and that you
need to hire the right people. Knowing what
your team is missing and recognizing that you
need to find the right talent to fill the gaps is an
important trait in any social entrepreneur.
Slide 1.31
PITCHING – WHAT TO INCLUDE (6)
6. Financial summary
For a great pitch, you don’t necessarily have to
show a detailed five-year forecast. What’s more
important is that you understand your business
model.
“Business model”  may sound like something
complex, but fortunately it’s not. All you need
to know is who pays your bills and what kinds
of expenses you will have. For example, if you
are starting an online news site, the customers
that pay the bills are your advertisers. Your
costs will be writers, graphic designers and web
hosting. As you learn more about your industry,
it is certainly helpful to put together a sales
forecast and expense budget. You will want to
ensure that you can build a profitable company
based on your assumptions. But, for your pitch,
a detailed forecast isn’t necessarily required.
PITCHING – WHAT TO INCLUDE (7)
7. Milestones
The final key element of your elevator pitch is
conveying your business milestones, or your
schedule.
Slide 1.33
Here you will want to talk about your upcoming
goals and when you plan to achieve them. If you
have already accomplished notable milestones,
you should mention those. For example, if you
have invented a new medical device, potential
investors will want to know where you are in
the clinical trial process. What steps have
been accomplished and what’s the projected
schedule for final approvals? If you are opening
a restaurant, investors will want to know about
plans to sign a lease, design the interior, and
open for business.
Talking about upcoming milestones in your pitch
makes your business a reality. This section of
the pitch illustrates how well you have thought
through the detailed steps it’s going to take to
open your business and start making money.
PITCHING – HARD EARNED LESSONS
Less is always more.
An elevator pitch is vital. Verbose presentations
and lengthy explanations will not impress
investors, and most likely will turn them off.
Present your business in a manner that’s
short, sweet and to the point. Investors need
to be confident that your business will attract
Slide 1.34
and retain customers. If they don’t grasp your
concept in a short time span, they may presume
that customers won’t understand it either.
Never hypothesize. Execute, execute,
execute.
Inspire confidence with facts, not fiction. Most
investors seek out low-risk businesses with
proven managers that are as close to guarantees
as possible. A company with cash flow, a track
record and real-world experience has a better
chance of getting investors than a business plan
forecasting large returns. Find ways to test your
business’s viability on a shoestring budget, and
turn your idea into a functional business before
you seek investment.
PITCHING – HARD EARNED LESSONS (2)
Leave the hockey sticks on the ice.
Excite investors about your big picture, but be
reasonable and responsible. Avoid hockey
stick projections. Respectable investors will not
take you seriously if you present them with
nonsensical financial graphs that claim your
company’s revenues will grow from £100,000
to £50 million in three years. Show investors that
you have a grasp on reality with three versions
of financial projections: best case, moderate
case and worst case. Base each of these models
on facts, past and present performance data,
industry and competitor analyses and a series
of well-thought-out, defendable assumptions.
Learn to love discount stores.
Being cheap is chic. In an age where spending
is out of control, you’ll need to prove that you
are a fiscally responsible manager who knows
how to get the most out of a buck. Give yourself
wiggle room in your operations and marketing
budgets, but avoid being excessive. Never ask
for a large salary or big-budget perks. Investors
want you to be in a position where everything is
on the line.
PITCHING – HARD EARNED LESSONS (3)
Rome wasn’t built in a day. Your business
won’t be either.
Investors are wary of funding over-eager
businesses that seem destined to bite off more
than they can chew. Before asking for millions
of dollars to fund 50 divisions and hundreds of
product lines, prove how well you can create,
manage and fulfill demand for a single product.
Demonstrate that your business
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can crawl before you say it can walk. Perfect
your marketing tactics, sales strategies and
operational procedures. Investors appreciate
companies with sustainable step-and-repeat
business models that are poised for exponential
growth. Remember, even Google’s success is
based on a single product.
Choose not to be the smartest person in the
room.
Know what you know, know what you don’t
know and find the people who know what you
don’t know. Build a team of credible experts.
The smartest leaders in the world are those
who surround themselves with smarter people.
Investors are funding a management team as
much as they are investing in a great business
concept.
PITCHING – DO’s
• Keep your pitch short, concise and factual -
around 5 -15 minutes long. Get to the point.
• Provide visuals, either a tangible product or
visual images of your concept.
• Demonstrate the opportunity. Specifically
tell the panel you are pitching to exactly
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how there is going to be a return on the
investment that’s made and demonstrate
why.
• Show your commitment. Explain clearly and
concisely what you have done and what you
intend to do next. Reveal what you have
given up, what you are prepared to do and
how determined you are. Show how you will
be sharing the risk. Passion and commitment
are vital ingredients of a winning pitch.
In the entrepreneurial dictionary, action
comes straight after decision. Committing to
getting things done is an invaluable ally on
your road to success.
• Be confident. An inner self belief is like a
foundation stone under the tallest building.
You need to convince potential investors that
you have the courage of your convictions
and why.
PITCHING – DO’s (2)
• Practice your pitch in front of a mirror until
you know it by heart and it is word perfect.
Practice in front of anyone you can rely on
to give you honest feedback. Some business
angel networks provide dummy investor
panels and workshops to help entrepreneurs
practice their pitches.
• Persist. Dealing with rejection is all about
passion and conviction and never giving
up. When Thomas Eddison, who invented
the light bulb, was asked what it was like to
have failed 1000 times in trying to invent it,
he replied that he didn’t fail, he just found
1000 different ways not to invent the light
bulb. That sort of analogy is what it’s about,
that’s the way we should view life. Successful
social entrepreneurs have two undeniable
qualities, determination and persistence.
Develop a ‘’keep on keeping on’’ ability.
• Protect your idea before entering a pitch
situation.
• Keep calm. Take five seconds to breathe
and let your pounding heart to slow down.
Look down if necessary. Compose yourself.
Silence is fine. Then, spring into life.
Slide 1.38
PITCHING – DON’Ts
• Exaggerate! Know your figures inside out
and off by heart. Be realistic about the risks
your business faces and turn yourself into an
expert on how to deal with them.
• Come unstuck. Know exactly what you’ll be
spending the invested money on and provide
realistic valuations and projections.
• Stop using your imagination. Once your
business is up and running your imagination
will act as a catalyst for other people’s
imaginations. As long as your imaginative
visions and ideas remain deliverable
and realistic. An imaginative leader is
encouraging to those around them.
• Look un-inspirational. Make me like the
look of you. Don’t look like you’re utterly
desperate for money or that you’ve just
been dragged through a hedge backwards
because you’re wearing ripped jeans and a
t-shirt. Wear a suit.
• Be condescending. Have confidence in your
idea but do not patronise those you are
seeking investment from.
• Argue. Do debate. There is a fine balance
between debating and arguing with
Slide 1.39
somebody. The minute you start arguing
with a potential investor, you’re now in a
state of conflict and it’s going to go wrong
for you very quickly.
PITCHING – THE 12 SECOND PITCH
Let’s say you’re at a dinner party and one of the
guests asks you, “So, what do you do?” Can you
answer in one sentence so that they understand
your company?
Being able to distill your company into one
simple sentence is incredibly valuable. It helps
you, as an entrepreneur, focus on exactly
what you do and who you’re doing it for. It
also helps you clearly market your business. A
simple headline at the top of your website or
brochures will communicate the core essence of
your company and generate interest in learning
more about what you do.
EXERCISE – WRITING YOUR PITCH
12-second speech
Summarise in one simple sentence what your
company does or provides.
Describe the benefits that your product or
service provides. List the features that set your
product or service apart from your competitors’
products or services.
30-second speech
Summarise in a few simple sentences what your
company does or provides.
Describe the benefits that your product or
service provides. List the features that set your
product or service apart from your competitors’
products or services.
Briefly state your company’s qualifications.
Describe your company’s goals or objectives, or
both.
EXERCISE – WRITING YOUR PITCH
3-minute speech
Summarise in one simple sentence what your
company does or provides.
Describe the benefits that your product or
service provides. List the features that set your
product or service apart from your competitors’
products or services.
Briefly state your company’s qualifications.
Identify your company’s mission in one sentence.
Describe your company’s goals or objectives, or
both.
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Give an example of a successful outcome from

the sale of your product.

THE PROOF OF THE PUDDING…........

A chance to present the pitches to the fellow

learners and feed back

FEEDBACK AND WRAP UP

Putting your business concept into simple,

understandable terminology helps potential
investors, partners, policy makers, or other
stakeholders to grasp what you are trying to
deliver
Standing up in front of people is a necessary
part of business life

FURTHER INFORMATION AND NEXT STEPS

If you’d like to find out more about the Social

Innovation programme and be considered to be
a delegate please speak to your facilitators or
contact:

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COACHING & MENTORING

INTRODUCTION TO COACHING THEORY

Coaching has become in the course of time a trendy method managers use.
However, it is difficult to define what coaching is as there is no unified definition of
caching. The term coach is based on the English original word meaning “carriage”.
This word represents basis of coaching, e.g. carriage in the form of supplementary
means of transport which is supposed to help to carry us to the finish. The term has
been used at the beginning also in the sport´s field when such person should help
to prepare an athlete for a match. Thus coaching is a form of supporting process
to assist the coached person towards a set objective as well as to help overcome
obstacles through advices and personal & somebody else´s experiences.

According to Crkalová & Riethof (2012) coaching is about searching ways how to
be more satisfied, high-performing, more motivated or ,only‘ be better person. The
heart of the coaching is mainly looking for a motivation – finding consequences
when the objectives are achieved with less effort, generally in such moments we say
that everything goes by itself (and we have more pleasure when performing in this
way). This is supported also by Whitmore (2011, p. 21) who uses Galwey definition

266
that coaching releases individual potential
and thus enables maximize person´s
performance. The coaching should raise
in individual person life satisfaction and
constructive attitude because of which we will
be not only happier but also more balanced
and able to achieve higher performance.
There are several types of coaching. The
coaching can be used to work with an
individual or a team, as well as for working
with oneself. It is therefore necessary to
describe sufficiently the individual types of
coaching.
For example, Suchý and Náhlovský (2007)
use two basic models of coaching. The first
type is individual coaching, which is one of
the most common forms of coaching, and
from which all other models are developed.
The individual coaching puts emphasis on
independence and initiative of coached
person and is used mostly for executive staff
and managers. A disadvantage of individual
coaching is, according to the authors, a high
cost to hire an external coach.
The second type is group coaching or team
coaching. During group coaching, the coach
usually works with a smaller group of people
who are pre-assembled for this purpose. It is
most often used in the companies´ coaching
of lower management level. The advantage
of this type of coaching is above all a lower
cost and its aim is, in particular, to promote
mutual cooperation of team members,
sharing experiences, self-knowledge,
stimulation of self-confidence and personal
growth.
THE COURSE OF THE COACHING
PROCESS
Before starting the process of coaching
it is essential that the attendees perceive
their real situation, ie. to understand
their options and conditions of whole
environmental (see the picture below). The
second key element is accountability which
is the partial goal of coaching because if
we really accept responsibility, if we decide
to take responsibility for our thoughts and
actions, our commitment to implement and
to achieve better performance will increase.
Only when these two assumptions are
fulfilled we can proceed to the coaching.
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As it concerns the coaching process itself the motivation and performance is always consistent
GROW model described by Whitmore is used with the SMART attributes, i.e. the goal should
the most often. The (English) word GROW be: S - specific, i.e. concrete, unambiguous,
expresses the abbreviations of the four phases sufficiently described; M - measurable that
Perception Accountability in the coaching process. In the first phase G - we can verify or measure whether the goal has
of
situation Goals occurs when defining short- or long-term been achieved; A - acceptable, i.e. in line
objectives. R – Reality is verified during the with other areas of life or with other goals the
second phase and determines the current status individual wants to accomplish; R - realistic;
e.g. a problem that the attendee wants to solve. i.e. achievable and finally T - timely, i.e. its
On the other hand, O - Options is a next phase accomplishment is limited by time. See the
in which we are looking for as many options picture below for details:
and strategies as possible with the objective
to create a solution in the last fourth stage W
– Will: a description of what should be done;
who and when is going to do it; and what will
be her/his will, ie. how much he/she wants to
BASIC ASSUMPTIONS change an existing situation (Whitmore, 2011).
TO START PROCESS The process begins with the definition of
OF COACHING a goal or goals which may be either short-
term or long-term. Constructive to positive
expression should be a mutual feature of
goals´ as the positive formulation increases
the motivation of individual to fulfill set goals.
A so-called coaching procurement emerges
by completing the goals´ formulation. The
formulation of goals to increase managers’

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S
Specific
• Define the goal as much as possible with no unclear language
• Who is involved, WHAT do I want to accomplish, WHERE will it be done,
• WHY am I doing this - reasons, purpose, WHICH constraints and/or requirements do I have?

M
Measurable
• Can you track the progress and measure the outcome?
• How much, how many, how will I know when my goal is accomplished?

A ATTAINABLE/ACHIEVABLE
• Is the goal reasonable enough to be accomplished? How so?
• Make sure the goal is not out or reach or below standard performance.

R
RELEVANT
• Is the goal worthwhile and will it meet your needs?
• Is each goal consistent with the other goals you have established and fits with your
• immediate and long term plans?

T
TIMELY
• Your objective shoud include a time limit. Ex.: I will complete this step by month/day/year.
• I will establish a sense of urgency and prompt you to have better time management.

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The second stage is to examine reality. The
coach helps the attendee to realize its potential,
experience and coached individual deduces
potential mistakes and describes activities that
probably will not work in that environment.
The coach therefore leads the coached person
to independence when realizing the reality. In
this way the individual thanks to the acquired
experience and counselling will be able to react
independently without the help of the coach in
the future.
In the third stage the attendee seeks an
option that will enable him to achieve pre-
defined objective. Whitmore (2011) describes
this stage as a phase that does not aim to
find the right answer but to create a list of as
many alternatives as possible. This process of
searching for opportunities stimulates thinking
and is just as important as its outcome because
it stimulates creativity. At this stage the coached
individual is looking for possibilities how to
achieve goals and develops creativity. The role
of the coach in this step is to help change the
perspective of the attendee, i.e. examine certain
situation for example in the view of manager,
customer, etc.
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The final stage of the whole process is to
draw up and solve her/his plan. In this stage
the coach has to support the attendee to design
some procedures, plans or solutions of the
situation. As the coach is responsible to meet
the objectives of a coaching session thus that
the attendee makes progress towards achieving
her/his final goal (Podaná, 2012).
This is the conclusion of the coaching process.
After fulfilling above mentioned steps ideally
the attendee is reaching pre-defined goal.
Of course it does not apply in all cases both
because of the barriers on the attendee’s side
as well as incorrect coach’s approach.
COACHING TOOLS
Coaching tools are composed from essential
instruments to ensure its functionality. Horská
(2009) states that among the key tools in the
coaching practice are active listening and a
specific way of asking questions. Obviously the
coach can also use a variety of other techniques
such as evaluation and diagnostic tools
(feedback). The coach poses such questions that
enables to find out specifics of the attendee’s
goals and problems.
a) Active listening
Active listening, unlike ordinary listening, is
goal-directed and controlled. It requires an
active inquirer with the purpose to gain deeper
information about the interviewee. Actively
listening person creates a secure environment
for communication (an atmosphere of trust) and
encourages the respondent to freely express
her/his thoughts, ideas, opinions and attitudes.
Active listening is therefore deliberate and led
to gain information as well as verifying the
understanding to the respondent. It gives her/
him confidence and at the same time it creates
a relationship between the attendee and the
coach.
b) Specific method of asking questions
Another tool the coach can use is a specific
method of questioning. As mentioned above
asking questions and interviewing is very
important in the coaching process. Very often
we divide questions onto opened and closed.
Obviously with the purpose to stimulate and
develop the interviewee’s ideas it is more
appropriate to pose opened questions. Parma
(2006) also divides coaching onto constructive
and instructional. Instructional questions are
such questions that will give to the attendee
precise instructions. It will lead the attendee
to the required output to overcome errors.
However, disadvantage of instructional
questions is that they can restrict creativity and
creation of alternative solutions. On the contrary
constructive questions are those that stimulate
creativity and aid the attendee to acquire new
knowledge and find new solutions.
There are also other types of questions that are
used for coaching. It is possible to mention for
example magical questions that are used for a
development of visions and goals. Furthermore,
the scaling questions which helps the coach
to support the interviewer identifying her/his
present situation and what he/she wants to
achieve (Horská, 2009).
FEEDBACK
Gallwey (2004) describes feedback as a basic tool
for coaching. We usually understand feedback
as performance evaluation. Although such
an assessment may be useful it can introduce
some antipathy into the coach and attendee´s
relationship resulting from the evaluation
outcomes. On the other hand, Whitmore
(2011) sees performance improvement through
feedback: Feedback whether from ourselves or
from others is very important for learning and
improving performance. Feedback is therefore
a specific tool for assessing the performance of
a coached person but also a part of streamlining
and learning. It is also one of the coach’s most
responsible tasks and often without it a change
is impossible
BENEFITS AND BARRIERS OF COACHING
Recently many companies recognize coaching as
an effective method of leading people. But like
other methods also coaching has not only benefits
but barriers as well. If we focus on benefits,
Crkalová and Riethof (2007) and Whitmore
(2011) refer about several benefits: coaching
brings better performance and productivity
which is essential objective to stimulate in
coached individual hidden potential and lead to
maximizing performance. This is obviously also
related to the personal development. Thanks
to personal development coached person also
becomes more independent in the personal and
working life. The individual is therefore able to
take the initiative faster and more efficiently to
respond to difficult situations which he/she has
not been able to solve before.
The coaching naturally also has its own risks or
barriers that may influence coaching process
negatively. It is important to realize that
coaching is a long-term process that requires
patience and the right approach. Above all
It means that things should not be done with
haste. Obstacles that may occur most often
before and during coaching can be divided
into external and internal. The most frequent
external barrier is a distrust of attendees who
don´t have confidence in this method, their
skepticism to new approaches or practices and
their unwillingness to accept new methods. This
is linked to another barrier that subordinates
often do not want to be coached. They do not
want to take responsibility for the assigned tasks
and rather prefer only receiving clear commands
and instructions. The coaching is also a time-
consuming method and in some cases there is
not enough time and space for it. Time to time it
is also not recognized in corporate culture as a
method of developing and leading people.
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Internal barriers are most often subjective
feelings of the coach or the company. The
supervisor believes he cannot coach because he
does not have enough experience with coaching.
They are also often afraid that the attendees will
recognize that they do not sufficiently command
the coaching method thus they prefer not to
adopt it at all. Another common mistake of
superiors as coaches is their assumption that
they already adopt coaching in their work but
it is only leading and not coaching as such.
The last barrier we can meet is a feeling that
the method is not appropriate for the team or
individual thus the senior manager continues to
use the current methods.
Therefore, there are a number of barriers
for which the coaching is not used in some
companies. If the employer wants to apply
this method in the company it is necessary to
prevent the above mentioned barriers. Both
through communication with coached persons
and openness towards the employees which
will allow them to ask questions. The aim is to
improve internal relationships and the overall
atmosphere within the compan.
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Whitmore (2011) adds that helping others
to become aware of themselves and
the things around them including their
responsibility and building confidence in
their own abilities develops their potential
to lead other people once.
INTRODUCTION TO MENTORING THEORY
Mentoring can be considered voluntary
support provided by one person (a mentor) to
the second (a mentee) with an emphasis on
personal development, efficiency improvement
and supporting initiatives. The Dictionary
describes mentoring and its meaning as a
situation where a competent and experienced
person provides professional, educational and
personality support, counseling, leadership,
patronage, knowledge and skills transfer
to a younger person in order to facilitate the
complex personal, educational and professional
development.
In local environment, the mentoring is often
described in a way of managing employees -
it is the relationship between the mentor and
the worker. It allows to pass an experience and
advise employees in an appropriate way. The
professional and social development of the
mentee in an organization is a basic mentoring
function.
Mentor
The definition of the mentor’s skills differs as it
is in the above discussed definition of coaching.
The common element may be that we consider according to mentor´s instructions. 1
a mentor as an experienced, senior personality Ten rules have been identified during the Setting expectations
who has a vast knowledge in a given field. A mentoring process. These are commonly
mentor can advise, answer questions and teach applied in practice and modern mentors could 2
Knowing the purpose
or train less experienced individuals. not create open and trustworthy relationships
For example, Brumovská and Seidlová Málková with their mentees without applying these rules.
describe the mentor as a person who acts as 3
Schedule
a model of behavior, provides mentee various
types of social support, gives him the opportunity 4
to learn something new and defends his/her Responsibility
concerns if necessary.
5
Mentee Communication mechanism
Mentee always acts as an equal partner for a
mentor. Mentee enters into a relationship with 6
Confidential relationship
the mentor in order to gain new experience,
adopts mentor´s pattern of behavior and values,
consults the mentor with questions of his/her 7
Time frame
interest, and seeks answers. The aim is to better
orientate in the working environment and to 8
use the acquired knowledge and experience Ongoing evaluation
not only in professional but also in personal
life. It is important to stress that the mentor’s 9
relationship with the mentee must be built on a Feedback
pro-active basis. Their relationship must under
no circumstances be transferred to passive 10
Farewell
listening, accepting opinions and acting only

Source: own processing

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Principle 1: Setting expectations
Each side can enter into a relationship with
different expectations. Even before a cooperation
starts it is essential to express the expectations.
The reason is to prevent disappointment in later
stage if mentoring relationship does not fulfill
the expectations of one, the other or eventually
both sides. The mentor and the mentee should
communicate, explain and discuss each other’s
expectations from their cooperation; and
then find an agreement in the way that the
cooperation meets their expectations.
Principle 2: Knowing the purpose
Cooperation of mentor with mentee is conducted
for some purpose, whether a reason is to
develop new skills or solve a particular problem.
It is always necessary to set clear objective. A
purpose must be known to both sides as well
as the expectation. Because only if both sides
know the purpose of their cooperation it can be
successfully achieved.
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Principle 3: Stick to a schedule
Mentoring program is based on regular meetings
between mentor and mentee, preferably on a
personal basis or virtually. Both sides have to
respect agreed schedule and stick to it.
Principle 4: Be responsible
The responsibility is also a key factor in the
mentoring programme that must apply for both:
the mentor as well as the mentee. Do not hesitate
and agree on mutual responsibility which is
an important driving force of mentorship. It is
crucial to determine how you will monitor and
supervise the fulfillment of the tasks that will
arise from the cooperation. It is not just the
fact that the mentor shares with his mentee his
experience but also that the mentor gives some
assignments to practice and verify the acquired
knowledge.
Principle 5: Create a communication
mechanism
Sooner or later there may occur situations
where a mentor discovers an area which is a
real problem or even nightmare for a mentee.
How do we react in this situation and how do we
tell each other? It is precisely a communication
mechanism on which it is advisable to agree
in advance and which will determine how to
proceed when it is necessary to stress some
negative observations. This avoids any bad
feelings or embarrassments in communication.
Principle 6: Respect the confidentiality of
your relationship
The mentor and mentee must specifically
determine to what extent it is necessary to respect
the confidentiality of their relationship. During
their cooperation each other will exchange a
whole range of information, opinions and real
experiences. Thus it is up to them to agree which
information will be considered confidential and
should under no circumstances be used outside
their cooperation. Thus agreed confidence
should not be violated.
Principle 7: Set a timeframe
The timeframe for cooperation needs to be
defined at the very beginning of the relationship
that both sides have the idea about duration
of the cooperation. Also individual meetings
may be scheduled with regard to the set time
frame. In any case it cannot happen that the
mentor’s relationship with the mentee does not
have any timeframe. If it is the case it would be
very difficult to plan the course of cooperation
and the time we want to dedicate for individual
topics to be solved during the mentoring.
Principle 8: Evaluate the course of
cooperation
It is important to evaluate the mutual cooperation
and its progress from time to time. This is to verify
that both sides benefit from the partnership and
meet the expectations that mentor and mentee
have at the beginning of their relationship. If the
existing state differs from original expectations,
then we have the opportunity to intervene and
take appropriate measures that will return us on
the right path towards the set objective.
Principle 9: Feedback
Feedback is necessary to ensure the proper
progress of the cooperation. Although we expect
feedback mainly from the mentor it is important
also for the mentee to be able to express his/
her opinion and communicate it to the mentor.
At the same time, it is crucial not to be afraid to
ask for the feedback by oneself. The feedback
will help the mentee in its further growth and
development. Both sides must be open to new
ideas, opinions or advices.
Principle 10: Say goodbye
The correct mentoring relationship must also
be formally terminated in a certain way. The
aim is to summarize, evaluate and determine
in which areas and how expectations have
been met and to state on both sides that the
purpose of mentoring co-operation have been
accomplished. Subsequently the cooperation
may be terminated. However, it often happens
that mentor’s and mentee’s relationship
continues after completion of their collaboration
but already at a friendly basis (and still with the
opportunity to receive opinion or advice from
more experienced side).
From a practice perspective and summary
A clear view on the coaching and mentoring
definition does not bring any practice, including
professional organizations operating in the
Czech Republic, namely the European Council
for Mentoring and Coaching (EMCC), the
Czech Association of Coaches (CACO) and
the International Federation of Coaches (ICF).
However, the need to differentiate between
these two management techniques requires
procurement procedures, through which
particularly large businesses are searching
for coaches´ and mentors´ services expecting
different performances from each approach.
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One of the key differences is the position of evaluates his/her actions, and provides
a coach. A coach is not an expert in the field constructive criticism to his/her work.
of work of his client, usually he/she does
not know in advance client´s specific needs
arising from the occupied position but he/
she is a professional from the view of the
efficiency of working with people. It allows a
coach to accompany a coached person searching
for personal development. The coach´s task
is to respect initiatives and environment of
the client. The coach is the partner of the
coached person to choose the most effective
procedures for accomplishing a goal. A
mutual cooperation is a tool for achieving
ongoing results. The coach is never the one who
gives advices to the client, nor may not criticize
or otherwise evaluate client´s performance.

On the contrary, mentoring is in practice

referred as a professional / personal
development relationship where a more
experienced or skilled person assists to lead
a less experienced or less skilled person.
Key features include long-term learning,
transferring good practice´s examples and
mentor´s know-how. Logically, therefore,
the mentor is a mentee´s counsellor,

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CASE STUDY- AMARO RECORDS

The project Amaro Records consists of a recording studio and music café with job
training positions run by the NGO IQ Roma servis z.s. It focuses on providing support
to young Roma from socially excluded areas in Brno. Since 2016 it has been serving
as a place for cross-cultural exchange which helps change lives, the Roma communi-
ty, the public and the city itself. It provides space for musicians to meet during regular
cultural events, such as concerts, jam sessions or lectures.
Amaro Records is a social enterprise of association IQ Roma servis z.s., created to-
gether with volunteers from the Roma community and general public in place of a
former gambling house on the Milady Horakove street in Brno: Amaro Records is
located right on the border between the city centre and areas marked by social ex-
clusion.
Amaro Records is a social enterprise of association IQ Roma servis z.s., created to-
gether with volunteers from the Roma community and general public in place of a
former gambling house on the Milady Horakove street in Brno: Amaro Records is
located right on the border between the city centre and areas marked by social ex-
clusion.

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One of a “positive” prejudice is that the
Roma have musical talent. In many cases
that is really the fact. The aim of the project
is to take this advantage, and use music to
encourage activity of young Roma and
develop their competencies for the fu-
ture. Amaro Records is the only recording
studio in the Czech Republic offering the
possibility to exchange volunteer hours for
recording time. Even young people from
the excluded areas can therefore afford to
make music, develop their potential and
talent and to fulfil their dreams.
An important part of the mission is to en-
courage mutual recognition, communi-
cation and collaboration between the
Roma and the majority population. It
is often said that music breaks down bar-
riers and makes everyone feel better. The
project´s implementers hope to achieve this
through musical events, which connect mu-
sicians, both starting and experienced, re-
gardless of their ethnicity or age in the South
Moravian region and through them “push”
the Roma community towards the majority
public. Recently, Amaro Records collabo-
rates with universities (JAMU, Masaryk Uni-
versity), Czech Television, and Czech Radio,
hosts regular jam sessions, and takes part in
cultural festivals in Brno.
At the same time, it is a social enterprise
which offers job training positions to Roma,
at this moment in the music café. Current-
ly, there is four barista positions, which al-
low the employees to gain work experience,
professional competence and above all
positive feedback, showing them that they
can achieve something in their life and do
something meaningful both for themselves
and for others. The other Amaro Records
team members are the project coordinator
and sound engineer.
The project has been implemented with the
expertise and support provided by the or-
ganisation IQ Roma servis z.s., the city of
Brno (respectively Municipality of Brno-cen-
tre), Masaryk University – Faculty of Social
Studies and the donors: Bader Philanthro-
pies Foundation, the VIA “souSedime si”
Foundation, and Impact First acceleration
program of (bank) Česká spořitelna.
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CASE STUDY- ZELENÁ DÍLNA

Zelená dílna (in English: Green Workshop) is originally sheltered workshop which
was doing ecological recycling of electric waste and electronic devices. Green Work-
shop has been created by non-governmental organization LIGA o.p.s. with a support
of local Labour office in 2005 and in 2009 it was taken out from its internal structures
and transformed into independent Limited Liability Company which is social enter-
prise complying with all characteristics of social entrepreneurship, social economy.
The company is located in the city of Bruntál which is small city (approx. 16,5 thou-
sands inhabitants) at the isolated north-eastern hilly part of the Czech Republic suf-
fering with high unemployment rate and low income.
Green Workshop Ltd. is providing services mainly with the cooperation with the City
of Bruntál self-government. City of Bruntál is helping to the company secure enough
commissioned work in the area of public services.

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Scope of activities of Green Workshop Ltd.:
- Ecological recycling of electric waste
and electronic devices.
- Small technical services: maintenance
of public grounds, cleaning, waste disposal,
mowing; involvement of local community
inhabitants into cleaning and maintenance
of their closest living area which helps to
build their relationship with the community.
- Building operations: pathways and
communications construction, housing con-
struction; seasonal employment for approx.
10 persons.
- Maintenance of apartment block (45
families with 26 children up to 6 years, 52
youth at the age 7 – 26, 53 adults) with the
aim to ensure better and secure living for
tenants and guarantee small profit for the
apartments’´ owners. The other objective
is assuring control for the City of Bruntál
that troubled Romas from the region are
not moving in uncontrolled. Self-adminis-
tration with tenants’ participation has been
established to secure decision making (plan
of repairs, allotting of flats, etc.), realization
of joint voluntary works and maintenance,
establishment of direct communication be-
tween tenants and municipal institutions.
At its establishment in 2005 Green Work-
shop has created first 16 jobs for Roma mi-
nority and also with the combination of so-
cial disadvantages (handicapped). Step by
step the company has begun to develop and
at the most it employed 44 persons with so-
cial exclusions accumulation. Recently the
Green Workshop company employs approx-
imately 30 employees.
City of Bruntál has important role in the
project implementation as municipality
commissions enough services and public
work (even it is not only income of the com-
pany). The Green Workshop has been also
supported from grant programme “Social
enterprises stabilization” of Czechoslovaki-
an Commercial Bank. In 2010 social enter-
prise Green Workshop has been awarded
by Endowment Fund Dalkia Czech Republic
as the best environmental project of last de-
cade.
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CASE STUDY- IRONING LADIES

There are many women in our society who are disadvantaged on the labor market
for various reasons. They have sick or disabled children and thus they may work only
at home. They are on disability pension. They may be in trouble for other different
reasons such as personal bankruptcy of a partner and his debts were transferred on
the whole family, etc. These women are looking for an incentive to improve their life
situation at least a little bit. The project “Ironing ladies” is looking for such women
and tries to find an employment for them in an area they are experienced and know
well.
The original idea was to iron partner issues in the form of crowdsourcing. From this
naive idea we have moved to the ironing of regular clothes. We started looking for
women who would be interested in this kind of job. From the beginning, the inten-
tion was to build a service based on personal story. The project location is in Prague
where the number of applications for this job were enormous, and stories of the
women applicants were sometimes quite sad.

286
The women, that were chosen from a large “business”. That means the objective to
number of applicants (currently we have make money remains. In addition to the ob-
eight woman fellow workers), have a great jective in making money an interest in social
desire to work, they are experienced and benefits is on the same level. In order for
very skillful. The quality of their work is the project to really help someone and that
very high and very appreciated by the cli- its social impact is not just “eye-catching”
ents (who are serviced by concrete lady and (which is sometimes difficult to judge).
knows their story). The clients are for exam-
ple managers from international consultan-
cy company or Czechoslovakian Commer-
cial Bank.
The fact that we are starting with ironing
and washing has emerged from the orig-
inal direction of the project but there may
be also other activities where our ladies (or
potentially others) can apply and where we
would like to move our project - such as
sewing, baking Christmas candies etc.
Although it is a “social business” it is still

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CASE STUDY- REKOLA

Travelling within the cities is often lengthy due to traffic jams. The project “Rekola”
(in English: “Re-Bikes”) offers alternative transport possibilities to the Prague inhab-
itants (but also other Czech cities). In almost every major European city operates
“bikesharing” and makes easier for people to move around the city. In addition, we
may say bicycles make a city a little nicer. Unfortunately, there was no such thing in
Prague in the past. The project implementation has already been extended to other
Czech cities.
In this bikesharing model bicycles are not dependent on fixed stands. A user searches
for the closest bicycle via his mobile application. A bicycle has a visually positioned
code that the user enters into the application. Immediately the lock code comes and
a user may start a journey. When the user wishes to return the bicycle he/she locks it
to the nearest suitable location and enters into the map its location that another user
would be able to find it. If someone doesn´t have a smartphone it is still possible to
use the service and rent a bike via SMS.

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Within the “Rekola” project mostly old bicy-
cles given by people are used for the bike-
sharing. The bikes were repaired, painted
pink and launched into the streets. The pink
color means “public space” or “what is pink
it is for all”. The pink color is also well visi-
ble and discourages theft because of its ex-
ceptionality. In 2017, new bikes made spe-
cially according to pre-defined needs were
launched in two largest Czech cities Prague
and Brno. Recently (year 2017) there are
450 bikes available to customers in Prague
alone and over 250 in the other Czech cities
combined.
Ii is possible to use the bikes on regular ba-
sis as well as for single rides. The customer
can choose between yearly and monthly fee
or single rides. It is expected that the bikes
are used as a mean of transport from one
place to another within the city (i.e. not dai- ing transport system that is accessible to all
ly rides for fun) thus it is expected that they without distinction. The earned funds are
are usually rented for one-hour maximum. used to improve service and bike´s protec-
The credit card of a user is charged to pay tion.
for the service. Credit card is linked to reg-
istered customer´s profile. For the security
reasons the card number is stored with the
bank (Czechoslovakian Commercial Bank), VISIT SITES:
not service provider. Customer is informed
of each charge due (e.g., before renting a
bike; before returning bike it outside of the www.amarorecords.cz
predefined zone, etc.), either via the app or
on the website, and customer can always www.ligabruntal.cz
refuse to proceed and pay (most new tech-
nologies based transport services - Uber, www.ironingladies.cz
Liftago – work on similar basis).
The project “Rekola” fully fits within the prin- www.rekola.cz
ciples on which “social business” is based.
It works as a sustainable and self-sustain-
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W W W. R E K

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4
C H A P T E R

THE SIP TRAINING

EXPERIENCE IN
ROMANIA

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TRAINING PILOTING SUMMARY RO
CONTENTS COURSE SCHEDULE
Course schedule The course has been designed for a
number of 36 training hours over 6 days
Delivery method each training day on a distinct topic: Social
innovation, Marketing and branding, Legal
Participants’ profiles context and business administration, Social
impact and business funding, Leadership
Speakers’ profiles and communication, Pitching and public
speaking. The course was held over 3
Theoretical content weekends in order to allow the participation
of a diversified audience.
Piloting meant organising 3 course series
with about 20 participants in each series.
Following the participants’ feedback,
certain aspects were altered from one
series to another for a more efficient and
relevant learning experience. The aim of
course piloting was the elaboration of this
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guide that might support the organization
and implementation of some efficient and
relevant
social innovation courses.
DELIVERY METHOD
The course delivery method combines 3
different approaches:
1. Facilitation by the trainer, an expert
in non-formal education
The trainer used non-formal education and
experiential learning methods to facilitate
the process of identification of a social
innovation idea and development through
each stage, from ideation to creating an
implementation plan.
2. Theoretical session with speakers
that are experts in the fields approached
every day
The structure of the theoretical sessions the
speakers took part in was the following:
• Personal story
• Theoretical concepts
• Questions and answers
• Conclusion – inspirational/motivational
message
Each speaker was given the initial materials
in order to relate to the content thereof. They
were also invited to make improvements
especially where the adaptation of the
content to the Romanian social, economic
and legislative context was necessary.
After every course module, the participants
were given the materials in order to
assimilate the information received during
the course and the speaker sessions.
In the first series participants united
all their individual ideas they came with
and worked in teams of 3 or 4 members
on a common topic of social innovation.
Each project comprised elements from
participants’ initial ideas so that in the end
there were 3 projects. The difficulty of this
phase was to choose a common idea, to
work in a team and to manage the diverse
approaches.
In the second series we kept the same
work method on common projects in teams
of 5 individuals but along the way we also
related to personal projects both in the
discussions with the speakers and during the
final pitching session. The reason for which
we wished to design some common projects
was the group dynamics that may facilitate
learning. Participants would only take part
in a brainstorming exercise, after which they
would work individually or with their own
team to develop their social innovation idea
further. But in this phase we understood
that participants do not identify with group
projects as a case study to understand
the stages of creating an action plan for
the implementation of a social innovation
project, and therefore they do not have
the necessary motivation to engage in the
implementation thereof.
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In the third piloting series we worked
together with the participants on their
individual projects, with the possibility to
share them with the others and to receive
feedback. After each individual work phase,
they shared their ideas in groups of 3, then
of 6 individuals and finally in the plenary.
The teams that received feedback were
chosen according to the field approached in
the individual projects. We noticed that the
number of participants influences the time
dedicated to feedback in plenary, namely
the more participants, the lesser the time
allocated to each of them. One solution
might be for the participants to choose
whether they want to share their idea and to
receive feedback from the group. Due to the
repetition of each idea for numerous times,
we noticed loss of interest and attention.
We recommend that you be careful when
sharing ideas with the group.
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3. Study visits at the headquarters of
social innovation initiatives
When selecting speakers experienced in the
management of social initiatives, we took
into consideration the organization of some
theoretical sessions on the premises of the
locations of social impact projects. Some of
these were a social enterprise manufacturing
jewels and interior decorations, a co-
working hub dedicated to creative industries
and a tea house employing individuals from
vulnerable groups.
The course sessions took place in a hall
provided by a company that has taken over
an industrial hall and rearranged it as a
restaurant, a terrace and an entertainment
area for the use of the community. The
owners provided the course hall free of
charge to support the attaining of project
objectives. The organization of a social
innovation course in the context of an
already developed project may motivate
participants to get involved actively in the
carrying out of a project with a similar
impact in the future.
Participants considered that these visits
added value to their learning experience and
felt motivated to initiate a social innovation
project.
PROFILE OF PARTICIPANTS
The pilot trainings took place in the interval
September - November 2016.
Participants’ registration was made via the
website www.rotaract-bucuresti.ro/sip by
filling in the registration form. The selection
of the participants took into account the
following criteria:
• Motivation to take part in the course and
to implement social innovation projects
• Relevance of the business ideas for the
project goal
We noticed a high interest for October and
November as compared to September due
to the fact that the summer holiday continues
until mid-September.
As such, we recommend that potential
organizers consider the best period to hold
the trainings in order to engage a wider
audience and increase the impact of the
trainings.
Taking into consideration the learning
objectives and the theoretical content of the
course, the participants meet the following
characteristics:
• They are young people aged between
18 and 30
• They have a motivation for learning
• They are interested in personal,
professional and community
development
• They intend to initiate or to develop a
professional activity in the field of social
innovation and social entrepreneurship course: the study visit in Edinburgh, the
• They are open to new methods, SIN seminars (Social Innovators Network),
approaches and experiences professional collaborations and informal
• They have a project idea or are ready to support meetings and mutual motivation.
identify one
• They have previous basic theoretical
knowledge or are ready to assimilate
such information
• They have a previous experience as an
employee or entrepreneur or would like
to become one in the future.
The selection of participants having diverse
experiences, interest and knowledge favored
the exchange of information, interaction
and the sharing of original perspectives.
A highly relevant impact result of this training
was that participants developed valuable
interpersonal and professional relationships
both between them and, with organizers
and experts. This aspect facilitated the
organization and their implication the
activities subsequent to the training
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We’ve established 3 criteria to use in order
to select the target participant in the SIP
training course.
In terms of information:
• Participants that did not have any
information or only had some basic
information
• Participants that had incomplete or
chaotic information
In relation to experience:
• Participants who have social innovation
projects but need sharing and exchange
of experience
• Participants who have not had previous
experience but have the motivation to
implement
In relation to motivation:
• Participants motivated to learn, gain
farther understanding of previous
concepts and work on specific examples.
• Participants motivated by networking
and sharing experience.
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Keep in mind it is important to define the
level of knowledge and experience of the
participants at the beginning of the training
course when expectations are set and
objectives defined.
Although this is an introductory training
course, delivering the fundamentals on
social innovation and entrepreneurship, it is
open and helpful to participants regardless
of their previous knowledge as the group
dynamic, exercises and different perspectives
can be useful in gaining perspective and
insight on concepts previously acquired.
PROFILE OF SPEAKERS
To validate the theoretical information and
to diversify the delivery method during SIP
courses, we organized theoretical sessions
where speakers delivered the relevant
information to participants.
The selection of the speakers took into
account the following criteria:
• Notoriety as an expert in the field
• Experience and proven results in
the development of entrepreneurial
initiatives
• Competence to deliver a speech and
capacity to motivate the audience
The structure of speaker sessions was as
follows:
• Personal story in relation to the
entrepreneurial experience or the topic
being delivered
• Theoretical concepts corresponding to
topic being delivered
• Questions and answers/practical activity
• Inspirational/motivational message
To pilot different perspectives on the topics
discussed, from one series to another we
invited speakers with different expertise.
1. Social innovation - 3 experts in the field
of social innovation (representatives of
MeşteshukarButiq, NOD Makerspace, La
firul ierbii).
2. Marketing/branding – 3 experts having
a different background (a manager in a
multinational company, an entrepreneur,
and a specialist in advertising)
3. Legal – we identified an expert in the
setting up of legal entities having knowledge
related to the connected legislation who
presented the information in a very attractive
and friendly manner.
4. Financial administration – We chose the
same expert for all the 3 series, and for
the last series we invited 2 speakers for his specialized studies as a psychotherapist.
comparative analyses.
8. Leadership – 3 experts having different
5. Social impact – We invited 2 trainers in approaches: 1 expert having trainer expertise,
social entrepreneurship and NGOs. motivational speaker and entrepreneur, 1
expert in non-profit leadership, European
6. Funding – Panel of speakers from diverse projects and policies, 1 expert in leadership
domains funding and supporting the in the entrepreneurial and non-profit field.
social innovation initiatives. This session
took place in the building of Bucharest 9. Public speaking and pitching – 2
Stock Exchange and the speakers spoke expert speakers who are members of the
about the funding opportunities available Toastmasters International Public speaking
through the programmes of Bucharest Stock Club.
Exchange, of Banca Transilvania and the
funding programmes from European funds
(Erasmus+, POSDRU). They presented
interesting and valuable perspectives in
terms of the implementation of some
entrepreneurial initiatives.
7. Communication – communication sessions
were held by the trainer who facilitated
experiential learning during courses and who
brought a valuable contribution in light of
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The natural question for the potential
organizers of this course may be this: How
can anyone organize this course without
inviting experts?
This method of implementation was the
choice preferred by the organizers due to
the social and professional context in which
these modules took place and mainly the
need to validate and to adapt the theoretical
information created by the Scottish partners.
After having piloted and adapted the
theoretical materials to the Romanian
reality, we believe that this course can
also be delivered without involving expert
speakers. At the same time, we recommend
the invitation of an expert where possible for
the value they add through their practical
experience as they are the most competent
person to answer specific questions.
This course may also be carried out without
the actual visit at the headquarters of social
innovation projects, although field visits
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have a motivational and clarifying impact for
many participants. If this opportunity does
not exist, the chapter containing examples
of good practices and the ones in the
theoretical section on social impact together
with the descriptions provided online may
create a realisitc image of Romanian social
innovation projects.
THEORETICAL CONTENT
As was mentioned before, in this project we
developed a training methodology on social
innovation and social entrepreneurship
having the theoretical concepts and the good
practices applied in Scotland as a starting
point.. These were tested and adapted to
the social-economic reality of Romania and
of the Czech Republic.
The first step consisted in the establishment
of the theoretical needs of a young person
interested to start a professional activity
in the field of social innovation and social
entrepreneurship. We found 6 essential
topics: Social innovation, Marketing
and Branding, Legal administration and
financial administration, Social impact,
Funding, Leadership and Communication,
Pitching and Public speaking. The essential
concepts on these topics were featured in
Power Point presentations. These materials
represented the starting point of a training
programme on social innovation and social
entrepreneurship.
Starting from this material, we designed a
course and adapted different methods and
approaches in the 3 training modules.
The theoretical concepts were presented
to the participants in the piloting activity
through non-formal education methods,
experiential learning, presentations and
case studies presented by professionals in
such fields.
Feedback from participants:
“As for the order of courses and the
presentation of information, everything
seemed to be very well designed. Most
information was communicated clearly and
succinctly. The information was accessible
and it was very easy for me to structure it and
learn it. I say most of it because information
varies according to the speaker and each
person’s learning style.
The exercise of summarizing the impressions
and the things learned at the end of each day
seemed extraordinary to me. For me it was
a way of assessing the quality of the course
and to learn from my peers’ observations
and conclusions (there were moments when
I understood that I learned some new things
on that day just because they were pointed
out by some peers – this was great!).”
“Thank you for a wonderful experience
during which I met genuine and open-
minded people. I learned a lot of useful
things, regardless of the area that I would
choose, and organizers’ implication and project that “in order to have successful
attitude were priceless.” projects in the field of social innovation, it
“I especially liked the people I met because is important to work and to interact with
they came from various professional experienced people on both professional
environments and had different experiences and personal levels.
that they were very willing to share.”
“The training methods were exceptional!
I learned through permanent interaction,
exchange of experience, free and open
communication and games. (It would be
wonderful if classes at school were like
this).”
All in all, the course was considered as
a valuable experience in which relevant
information was presented. The participants
appreciated especially the delivery method
and the work sessions on the project ideas.
The actual visits to the headquarters of the
social innovation projects and the invitation
of experts were very well received.
But in the end the highest appreciation
was expressed for the PEOPLE involved
as participants, experts, organizers, and
facilitator. It is a general conclusion of this
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AGENDA RO
MODULE I
DAY 1 DESCRIPTION
Introductory session
1. Getting to know each other (trainers, module context, participants)
2. Expectations, contributions and fears
09:30-11:00 a.m. 3. Training objectives
4. Presentation of the agenda
5. Group rules
6. Team building
11:00-11:20 a.m. Coffee break
Introducing the concept of social innovation
1. Definitions – WHAT? HOW? WHY?
11:20 a.m. -1:00 p.m. 2. Principles
3. Phases
4. Identify the need for social innovation

1:00-3:00 p.m. Lunch break

Creating the project idea
1. Analysis of needs (participant, community, beneficiary)
3:00-4:30 p.m.
2. Defining the problem
3. Identifying the solutions
4:30-4:45 p.m. Coffee break
Business Model Canvas
1. Business plan development
4:45-6:00 p.m.
2. Presentation of the plan in plenary

6:05-6:15 p.m. Evaluation of the day

6:15-7:00 p.m. Feedback / networking session

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 DAY 2 DESCRIPTION
Introduction to non-profit marketing
09:30-11:00 a.m. 1. Introductory definition of concepts
2. Identifying the 7P
11:00-11:20 a.m. Coffee break
Introducing branding and online marketing concepts
11:20 a.m. -1:00 p.m. 1. Creating a logo/message for the project idea
2. Creating an online marketing and branding strategy
1:00-3:00 p.m. Lunch break
Marketing and branding guest speaker
3:00-4:30 p.m.
Debate on the results of the practical activity
4:30-4:45 p.m. Coffee break
Social innovation guest speaker
4:45-6:00 p.m.
Study visit – social innovation project
6:05-6:15 p.m. Module I evaluation
6:15-7:00 p.m. Feedback / networking session

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MODULE II
DAY 3 DESCRIPTION
Understanding the social innovation concept
1. Teambuilding exercise
09:30-11:00 a.m. 2. Review of module I results
3. Presentation of the work topic
11:00-11:20 a.m. Coffee break
11:20 a.m. -1:00 p.m. Business administration
1. Understanding the administrative stages
2. Tips & tricks for initial administration
1:00-3:00 p.m. Lunch break
Guest speaker on legal management
3:00-4:30 p.m. 1. Identifying the legal form for project implementation
2. Discussing the optimum option
4:30-4:45 p.m. Coffee break
Guest speaker on financial management
4:45-6:00 p.m. 1. Identifying the fiscal advantages
2. Creating an initial administrative budget
6:05-6:15 p.m. Evaluation of the day
6:15-7:00 p.m. Feedback / networking session

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 DAY 4 DESCRIPTION
09:30-11:00 a.m. Social impact guest speaker
11:00-11:20 a.m. Coffee break
Social impact
11:20 a.m. -1:00 p.m. 1. Tools to measure impact
2. Identifying the social impact in social innovation projects
1:00-3:00 p.m. Lunch break
Panel: Funding sources (stock exchange, bank, funding programmes, Business
3:00-4:30 p.m.
Angels etc)
4:30-4:45 p.m. Coffee break
Panel: S Funding sources (stock exchange, bank, funding programmes, Business
4:45-6:00 p.m.
Angels etc)
6:05-6:15 p.m. Module II evaluation
6:15-10:00 p.m. Feedback / networking session

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MODULE III
DAY 5 DESCRIPTION
Review of module I and II
09:30-11:00 a.m. Leadership
1. Self-awareness exercises
2. SWOT analysis
11:00-11:20 a.m. Coffee break
11:20 a.m. -1:00 p.m. Personal development
1. Designing a personal development plan
2. Developing a leadership plan
1:00-3:00 p.m. Lunch break
Communication
3:00-4:30 p.m. 1. Definitions, principles
2. Communication drills
4:30-4:45 p.m. Coffee break
4:45-6:00 p.m. Leadership & Communication guest speaker
6:05-6:15 p.m Evaluation of the day
6:15-7:00 p.m. Feedback / networking session

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 DAY 6 DESCRIPTION
09:30-11:00 a.m. Pitching & Public speaking guest speaker
11:00-11:20 a.m. Coffee break
Pitching and public speaking
11:20 a.m. -1:00 p.m.
Designing a speech for business presentation

1:00-3:00 p.m. Lunch break

3:00-4:30 p.m. Final presentation of the project ideas
4:30-4:45 p.m. Coffee break
4:45-6:00 p.m. Module III evaluation
6:05-6:15 p.m. Coffee break
6:15-10:00 p.m. COURSE EVALUATION AND CLOSURE

The order of sessions may vary according to guest speakers’ availability and to the optimum time management solution.

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SIP TRAINING COURSE FLOWCHART / DAY 1
1. COURSE INTRODUCTORY SESSION
Objectives:
1. Official opening of the course
2. Exchange of ideas/information
between participants and organisers
3. Identification of expectations, fears
and contributions
4. Communication of the course
objectives, agenda, and the learning
context
5. Identification of the guiding principles
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Session structure:
OFFICIAL OPENING
The official opening of the course represents
an important moment for the subsequent
unfolding thereof. In Social Innovators
Programme pilot course, the official opening
was made by the project coordinator and
it had the structure of a story that started
with an idea and ended with a guide. Each
participant will bring their contribution to
this story. The official opening may set the
course dynamic, participants’ engagement
and motivation.
NAME GAME
The name game aims to help participants
remember the names of as many peers as
possible in order to facilitate communication.
The facilitator may choose funny name
games to initiate interaction (name + the
cartoon character they identify with) or name
games relating to the course topic (name
+ the entrepreneurial quality starting with
the name initial). The name games used to
introduce participants are very diverse.
GETTING TO KNOW EACH OTHER
Getting to know each other games create the
group dynamics and facilitate participants’
communication and openness. They may be
organized as presentations in plenary, pair
discussions or group discussions. They may
be creative team tasks and cover a wide
variety. The objective may be a general one,
and the games may follow the underlining
of general features, or they may be more
specific trying to reveal the professional or
personal context where participants are in
relation to social innovation.
EXPECTATIONS, FEARS AND course by any of their skills: attitudes,
CONTRIBUTIONS abilities and knowledge. In non-formal
education, participants’ contribution to their
In order to feel comfortable in new own learning process in relation to trainer’s,
environments, we need a certain degree facilitator’s or expert’s contribution is
of predictability. That is why we usually 70%:30%. Thus, we may communicate the
start any experience with a minimum set of responsibility of assumption of this process
expectations and fears resulting from our from this very moment.
needs and wishes. To create a safe learning
environment, it is important to verify and to
align participants’ expectations with what
we may offer as organizers. The ways in
which we may know these aspects depend
on the dynamics previously created and
participants’ transparency. For a better
opening, anonymous notes or the group
work and team accountability may be
useful. Participants may be encouraged
to contribute to the good evolution of the
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AGENDA AND OBJECTIVES form of assumption of a formal nature (sig-

After having identified the expectations,
fears and contributions with which partici-
pants came to the course, we will focus on
their alignment with the objectives and the
agenda. For the conflict situations, we will
try to find solutions as a leadership exercise
specific to those who are interested to work
in the field of social innovation. The speci-
ficity of this project keeps to the awareness
of the characteristics of the long learning
process, the time consumption (6 days x 6
classes) and the assumption of the decision
to actively work on one’s self development.
WORK PRINCIPLES
nature, name, written agreement) helps de-
fine even more successfully these principles.
GROUP PROMISE
As an alternative, to consolidate the group
identity, especially when you are going to
organize several different course series, the
creation of a group objective (name, an-
them, motto, and poem) may have a huge
impact. Use this identity element to encour-
age participants to get involved and to re-
member their enthusiasm at the beginning
of the course when, naturally, their ener-
gy level might decrease in relation to the
quantity of processed information.
RECOMMENDATIONS:
Just like in any training course, the first
sessions is important for the subsequent
phases, so you need to invest time and re-
sources for a successful session. A sugges-
tion for a well-rounded course is the use of
a metaphor throughout it. An example in
this respect is the Hero’s journey, a moti-
vational method from coaching adapted to
facilitate the learning process, the reflection
and assessment moments and to close an
educational-inspirational circle.

As for their education, organisers decided
the rules they are going to comply with in
order to have a smooth learning process,
but these principles must be established
from the very beginning so as to avoid con-
flicts relating to perceptions and values. A
This is also a valuable moment for the cre-
ation of a Facebook group or on any other
online platform to facilitate the communi-
cation between participants and organizers
during the training as well as after this ex-
perience is over.

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2. INTRODUCTION TO SOCIAL
INNOVATION (SI)
Session objectives:
1. Introducing the concept of social
innovation (SI)
2. Identifying the need for SI in the
community
Session structure:
Definition of the social innovation concept
The social innovation concept is currently
under construction, first of all due to the
general words that compose the concept.
According to https://dexonline.ro/ DEX 09:
Innovation: innovations, n. Novelty, change,
modification.
Social adj. 1. Created by society, specific to
society; which is related to people’s life in
society, their relationships in the society or
towards the society; related to the human
society. 2. Specific to a certain type of
society; related to the appurtenance to a
certain social category or social group.
In other words, social innovation may be
translated as being a CHANGE at the level of
a community or social group. This could be
the simplest definition, but not any change
at society level represents social innovation.
To define the concept, this was related to
and used in the context of social economy.
We aimed for a comprehensive
understanding of this concept, that is
why, before introducing any theory, we
gathered the information from participants
(“innovation” method).
We recommend facilitation to be open to
any type of approach, with the promise to
clarify the concept at the end as it is being
built from the puzzle of the course sessions.
BRAINSTORMING TO IDENTIFY SI NEED
– WHAT SI PROJECTS DO YOU KNOW?
WHAT IS THEIR AIM? WHO DO THEY
TARGET?
After the conclusion of the previous exercise
of allowing the concept to be defined,
innovation does appear as any novelty,
change, idea in terms of products, services
and the social concept relating to the needs
of a community or a specific social group.
That is why we recommend the facilitation
of a group discussion in order to become
aware of the need to implement SI projects.
First of all, through the analysis of the
context at local, national and international
level we will ask the participants what social
innovation projects they know of and we
will extract the “innovation” and “social”
dimensions by focusing the questions on the
social needs they address and the problems
these projects solve.
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GENERATING IDEAS OF SOCIAL common social innovation project, this form RECOMMENDATIONS
INNOVATION PROJECTS of work might be ideal.
In this session, attention will focus on
One of the most important decisions Regardless of how it is performed, identifying the proper idea for participants’
regarding this course is the way in which the participants will have the opportunity to objectives, no matter whether they want to
participants will work on their ideas: either briefly present their idea in plenary and implement the social innovation project they
individually on their own idea that they will they will be grouped in teams, according to develop during this course or they want to
afterwards refine together with the group, the area of interest of the project. For the learn the process of development of a social
or in teams on a common idea built from option of individual work, you will split them innovation project, while subsequently they
individual ideas or through the identification into teams, and for the option of teamwork, may implement another idea individually or
of needs at the level of community in the the ones having similar ideas or ideas that within another team.
previous session. may be interconnected will come together
The first option has the advantage of to generate an idea-exercise that they will
identifying participants who already throughout all the course phases.
have an idea, a potential higher degree
of involvement and motivation and the
necessary resources.
The second option has the advantage of
contribution to the group dynamics being
an exercise that keeps the participants
involved through the active participation of
teamwork. For the participants belonging
to the same organization or participating
as with the members of a team having a

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3. IDEATION SESSION
Session objectives
Developing the project idea
Session structure
DEFINING THE PROBLEM – VENN ANALYSIS
To have a realistic understanding of the
project idea, it is necessary to look at it from
the perspective of the problem it is going
to solve. Thus, the following phase requires
the context analysis (VENN analysis meth-
od). At the end of this exercise, if time al-
lows it, you can go even farther by applying
the Problem tree method. This brings infor-
mation about the causes and effects of the
identified problem and facilitates a better
understanding of the situation by leading to
the identification of some realistic solutions.
Participants will be given time to identify
solutions and potential actions for their im-
plementation, for sharing and discussions in
groups and in plenary.
Recommendations
This session connects the possibly idealistic
ideas of the participants to the reality of the
context in which they want to develop their
idea by taking into consideration the com-
munity, beneficiaries and their own needs
and the intersection thereof.
4. PROJECT PLAN
Session objectives
Developing the project plan
Session structure
Presentation, filing in and discussing
the “Business Model Canvas”
The next step is the development of a project
plan that may comprise the details of imple-
mentation thereof. For this phase, you need
a tool that might facilitate the process. The
most known and relatively easy to use is the
Business Model Canvas (BMC Method). Each
of the plan sequences will be presented first
of all, and then participants will quickly fill
in all the information they have or imagine
at that moment. Subsequently, the material
is presented in plenary and used as a work
tool until the end of the training experience.
Recommendations
As this visual diagram will represent the
work framework for all training days, we
recommend filling it on post-its that may
be changed and improved throughout the
course. Take all the necessary time for this
action and you may even continue it the
next day.
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EVALUATION OF THE DAY
Session objectives
1. Overview of the day
2. Analysis and discussion about the
learning process
Session structure
Facilitated discussion for overview
The evaluation of the day aims to consol-
idate information and the flow of the day
and to identify, through the feedback of
the people involved, the positive elements
deserving to be kept and what can be im-
proved in the future.
The facilitated discussion for overview of the
main moments of the day aims to mark the
objective reality and it may be carried out
as a story (Hero’s journey) or on the basis
of questions (What were the best topics that
day? What new information did you find
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out? etc). Identifying these key moments
allows participants to subsequently answer
the reflection questions, the theoretical
questions and the pragmatic questions in
the ORID model (ORID Method).
ANALYSIS AND INTERPRETATION
After having reviewed the objective facts,
participants are asked to reflect on their
learning process; on the way they felt, on
what they learned and on how they intend
to use these aspects in the future. The ways
in which they may express these things may
vary (group drawing, group communiqué,
open question in plenary, explained statues
etc.). It is essential to summarize and finally
underline what the participants recommend
and want to improve. The entire learning
process must finish in a positive and proac-
tive atmosphere.
Recommendations
If you can record in any form the results of
daily assessment, these may be useful for
the final analysis of the course, especially
when the training days are not consecutive.
Any written, drawn, shot and audio form
may be a starting point and analysis point
in observing the evolution of the learning
process.
If this is possible, we also recommend infor-
mal knowledge and networking sessions at
the end of each day or module. In the SIP
course, these sessions helped building the
group trust and supported the whole learn-
ing framework along the way.
DAY 2
Every new training day will start with
reconnection exercises. If days are not
consecutive, we recommend a recapitulative
mini-session. After each coffee break, you
may also propose some energy games
(Energy games) to activate the group.
Introduction to marketing
Session objectives
1. Introductory definition of the
concepts specific to Marketing
2. Identification of the 7P in social
innovation projects
Session structure
WHAT IS MARKETING? BASIC PRINCIPLES
IN THIS FIELD
It would be ideal that this session be
facilitated by the marketing expert but, if
there is not this opportunity, the facilitator
may introduce the specific concepts.
You will start with the definition ideally
conceived from the information received
from the participants, afterwards you will
succinctly define the key concepts (target
market, public relations, advertising,
branding) as they are presented in the
theoretical material. Special attention will
be paid to the elements of the marketing
plan and the marketing mix (7P). You will
remind the participants of the task of the
developing idea through the essential
phases of implementation of the social
innovation, since marketing is the means to
attract the audience who will help solve the
social problem identified. This presentation
may be made again with the expert in
the field or detailed as in the theoretical
material.
MARKETING MIX (7P)
The reason for which we work on this
complex concept of marketing is to have a
practical starting point in the discussion with
the expert. By this exercise the participants
also make their first step in shaping the
strategic placement of their product or
services.
Thus, the participants are invited to identify
the 7P (product, price, promotion, place,
people, proof, procedures) specific to their
project and after that to present them to the
group and debate on them together with
the expert.
Recommendations
If participants feel insecure, they are
reminded that non-formal education
is experiential learning and that they
may start in their practical activity from
minimum theoretical information and make
“mistakes” that they will adjust later on in
the processing phase with the theoretical
information or the expert.
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INTRODUCTION TO BRANDING AND
ONLINE MARKETING
Session objectives
1. Definition of the concepts specific to
branding and online marketing
2. Identification of the brand elements
specific to the project idea
3. Designing an online marketing
initial strategy
Session structure
What is branding? What is online marketing?
Starting from the same observations pointed
out above, definitions will be built together
with the participants and then you will
analyse the elements of visual identity and
the key messages that they noticed in their
areas of interest. You will debate on the
online promotion campaigns of the famous
brands and conclude with the elements that
make them have an impact on the public.
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BUILDING A LOGO AND A PROMOTION
KEY MESSAGE
In the same way in which the marketing mix
was created to have a practical material
from which to start the analysis with the
expert, in this phase the participants will
be invited again to create a logo specific to
their project idea and an impact message
associated to it. They will be supplied with
pencils, crayons, and sheets of paper to
draw, write or even sketch this logo. What
is important is the concept behind this
representation and not the artistic talent.
Colours, shape, and size will be discussed
with the branding expert, the peers and the
facilitator considering the overall impact.
The participants will also work on the creation
of the promotion key message that might be
the slogan which will represent and convey
the project idea in a few impressive words.
CREATING AN ONLINE PROMOTION
STRATEGY
We will ask the participants to create an
online promotion plan where they must
identify the channels they will use for
promotion, frequency, message type, etc.
For a higher educational impact, an online
posting practical exercise may be a very
good idea. Thus, we will ask the participants
to create a message about the project idea,
about the course and the context that they
will post at that very moment on a social
platform.
Together with the expert in the field, the
peers and the facilitator, you will discuss
about the impact and the possibilities of
measuring it. Special attention will be paid
to this form of promotion since it is the most
widely spread form in the current context.
Recommendations
The main recommendation refers to the
subsequent presence of one or two market-
ing and branding experts in these two ses-
sions. If the context does not allow that, the
facilitator will need to prepare more exten-
sively before this training day.
Marketing/Branding guest speaker
Session objectives
1. Detailing the information from mar-
keting/branding domains
2. Discussing the results of the practical
activity in the previous sessions
Session structure
THEORETICAL CONTRIBUTION OF THE
MARKETING/BRANDING EXPERT
The expert’s role is to bring clarifications
and more detailed information and to share
their practical expertise in the field.
If they did not take part in the introduction of
concepts, they will check participants’ level
of understanding and develop the areas of
interest for them. If the expert took part in
the introduction of concepts, they will bring
clarifications and theoretical details in this
phase.
Personal story and practical experience in
the field are important to inspire and moti-
vate the participants to work with experts in
the field and to pay the necessary attention
to marketing and branding as pillars in at-
taining the success of the social innovation
project.
ANALYSIS OF THE PRACTICAL ACTIVITY
RESULTS
Afterwards the expert will focus on the mar-
keting mixes, analyse the logos and slogans
and online promotion messages that the
participants created in the previous sessions.
Then they will discuss the strong points in
participants’ analysis and what can be im-
proved in the future in the actual implemen-
tation of projects. This thing represents an
advantage for those who work for their per-
sonal projects as they receive personalised
feedback. At the end, participants may ask
questions that were not debated in the ini-
tial speech or the subsequent analysis.
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Recommendations
If participants work individually on their
projects, it is more likely that time will not
allow feedback for each of the participants
marketing mixes or logos/slogans. The
solution might be that participants ask the
expert specific questions.
The presence of a marketing expert and
a branding expert would be ideal. The
marketing expert might focus their approach
on non-profit marketing and be asked
to discuss real case studies in the non-
profit context, while the branding expert
might focus on online promotion by giving
examples from their practical expertise,
which may help the participants find out
specific and current information harmonized
with their interests.
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Social innovation guest speaker
Session objectives
1. Description of the Romanian social
innovation context
2. Observation and practical analysis
of an effective social innovation project
Session structure
THEORETICAL CONTRIBUTION OF THE
SOCIAL INNOVATION EXPERT
The ones we call experts in the field of
social innovation in Romania are people
who have implemented SI projects, people
who worked directly in the field of social
economy, specialists interested in this
field from different institutions or who
have implemented educational projects at
national/European/international level.
The role of this expert is to outline the
general principles of social innovation, to
consolidate the information discussed with
the facilitator on the first day of the course
and to describe the contextual reality of SI
at international/European/national level by
highlighting on what is going on in Romania.
According to the institution origin and
expert’s expertise of the expert, participants
may ask questions for clarification and
conclusion.
VISITING A SOCIAL INNOVATION
PROJECT
Ideally, this visit may be the first of a series
to learn about inspirational successful
experiences. Regardless of the field specific
to the social innovation project, the contact
with the project designers or administrators
is highly important so that this reality should
no longer have a theoretical character, and
more than that it may become a touchable
reality for the participants at the training
course. Any form of practical involvement in
the activity of the visited project may bring
value to the learning experience.
Recommendations
A strong point of the SIP project was the
carrying out of the course in a social
innovation context. That is why we
recommend tengaging already existing
projects for the constant motivation and
inspiration of the participants.
get back to the course, they may think
about the topics of module 2 or may have
unfinished assignments due to the lack of
sufficient time in module 1 (logo creation,
message brushing up, promotion strategy,
the more detailed filling in of BMC).

Evaluation of the day/Module 1

assessment
If this course is delivered by modules, besides
the evaluation of the day as described above,
there will also be a module evaluation. The
same aspects such as objective experiences,
emotions and reflections, information and
theories, intentions for the near future will
be followed.
If there are longer periods of time between
the training modules, you may give the
participants some themes to work on.
Participants are given the theoretical
material for the first module and they may
formulate specific questions for when they

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DAY 3
Recapitulative session
Session objectives
1. Overview of social innovation con-
cepts
2. Summary of training module 1 re-
sults
3. Teambuilding
Session structure
TEAMBUILDING EXERCISE
The third day of the course is a little bit
more technical as it is dedicated to admin-
istrative issues. Thus, this session for group
cohesion is welcome, regardless whether
the course is divided into modules and you
have a short break since the latest meeting
with the participants or whether it is the
3rd consecutive course day. Teambuilding
322
exercises are very diverse and you will find
a collection of exercises in a dedicated
chapter of this training guide. Our recom-
mendation is to stick to the SI context in
order to reconnect the participants to the
objectives of the training experience as
well.
Imagining and enacting a small town/
village (as closer to participants’ locality
as possible) where their social innovation
projects may be carried out might make
sense in case of teamwork to attain a
common goal, and also to visualize and
become aware of the way in which the
project idea they have may be materialized
in the real social context. This exercise is
performed by taking into account 2 dimen-
sions: teamwork and SI project manage-
ment within the community.
REVIEW AND RECONNECTION TO PROJ-
ECT IDEAS AND SI CONCEPT
You will carry out a facilitated discussion
that will underline the impact elements
in the first module, what the participants
retained from the aspects discussed, what
they thought to be the most useful aspect,
what phases have been clarified and the
status of their BMC sheet. Participants will
present their work themes for the break
period and, if time allows this, they will go
back to BMC to fill it in with their new ideas
or to develop the aspects that became
clearer in terms of marketing/branding.
Recommendations
If you do not have the necessary time to
dedicate an entire session to review and
participants’ reconnection, you may do
some short teambuilding exercises and a
fast facilitated discussion to remind them
the experiences up to that moment.
BUSINESS (PROJECT) MANAGEMENT
Session objectives
1. Understanding the general
management phases
2. Designing a management plan
Session structure
Detailing the BMC session
In this phase, you will help the participants
become aware of the general management
of a social innovation project. They will
work on BMC by trying to design a general
management plan (human resources,
suppliers, public relations, research,
distribution) without focusing on financial
and legal administration which will be
treated in the coming sessions.
This session is important at this point
because it helps the participants become
aware of the work volume and the need for Inviting experienced innovators in terms
a team that any social innovation project of administration, leadership, team
requires. As compared to the first phase of management, marketing, pitching, and
filling in this tool, this time the participants impact remains a strong point of any
will have to surf the internet in search of learning experience in the context of this
similar projects, the market, and models for training course.
project and business administration. This
search will help the participants identify
their own resources and instruments that
they may subsequently validate together
with the experts. Any piece of information
resulted from this session will be discussed
and debated in plenary.
It would be ideal to invite a young
entrepreneur, administrator or innovator
to this session in order to share their
experience, challenges, successful ideas
and suggestions.
Recommendations
This session may be limited to a facilitated
talk if more time is necessary for the financial
and legal administration sessions.
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Legal expert guest speaker
Session objectives
1. Different types of legal entities
2. Identification of the best legal entity
for the project idea
Session structure
THEORETICAL CONTRIBUTION OF THE
LEGAL EXPERT
In this session, the legal expert will present
details of each legal administration form
by which the project may be implemented
(self-employed person, LLC, LLC-debutant,
NGO etc), the way for the set-up of legal
personality (where necessary), the ad-
vantages and disadvantages of each one
and the specific legislative elements of the
Romanian social economy.
This session may go deeper into aspects
such as contracting, employability, employ-
ers’ rights and duties, volunteering, bank-
324
ruptcy and deregistration etc. depending
on the available time and interest.
IDENTIFICATION OF THE OPTIMUM LE-
GAL FORM FOR THE PROJECT IDEA
Having the comparative study and the
detailed information from the legal expert,
the participants will analyse in teams which
is the most advantageous method of imple-
mentation of each project idea. Then, they
will return to the plenary and analyse their
decisions together with the expert.
Recommendations
If time is short, you may facilitate a dis-
cussion with the expert about the potential
decisions of the participants in terms of the
optimum legal forms for implementation.
Financial expert guest speaker
Session objectives
1. Knowledge of the fiscal advantages
of each legal form
2. Creating an initial administrative
budget
Session structure
THEORETICAL CONTRIBUTION OF THE
FINANCIAL EXPERT
The financial expert will provide comple-
mentary information to that offered by the
legal expert thus explaining the partici-
pants which are the fiscal advantages and
disadvantages of each legal form specified
in the previous session. A broad discussion
will focus on taxes and VAT as well as on
the rights and duties of those who imple-
ment social economy projects. Participants
will ask questions in a facilitated discussion
with the expert.
CREATING AN INITIAL ADMINISTRATIVE
BUDGET
Since the participants generally have a
less realistic vision of costs, expenses
and the potential revenues following
the implementation of their projects, we
recommend working on an initial budget
that they will afterwards discuss with the
financial expert in plenary. Many aspects
they did not think of initially will appear
as well as the need to identify amounts of
money as realistic as possible in order to
understand the financing requirement that
will be treated in a separate session on the
next day.
At the end of the day, you will carry out the
Evaluation, as suggested above.
Recommendations
Both the legal expert and the financial
expert will recommend the participants
to do their research in terms of the basic
concepts they must take into consideration
when implementing a project from the
two perspectives, but for optimum and
guaranteed results they should work with
experts in the field with whom they must
have a permanent communication.
DAY 4
Social impact guest speaker
Session objectives
1. Defining the social impact concept
2. Analysis of case studies
3. Knowledge of the instruments for
social impact measurement
Session structure
THEORETICAL CONTRIBUTION OF THE
SOCIAL EXPERT
The social impact expert will have
participants’ attention focused on the way
in which the investment of the community,
financiers and all those involved impacts the
community, an impact that must be easily
identified, measured and observed. Social
impact eventually defines a successful project
in the field of social innovation. Change that
may be noticed and measured within the
community completes our initial definition
of what social innovation represents.
The definitions, the conceptualization and
history that the expert will deliver to the
participants will be exemplified by case
studies. This analysis of the successful
projects having a measured and well
determined social impact will shed light on
what the participants must highlight and
improve in their own projects to attain this
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SIP GUIDE RO
dimension. Up to this point of the course,
it is possible that the participants may
have considered their project as a business
having a social character, but now the social
character and project’s impact within the
community will come first.
This session will connect very well to the
next one where the potential funders will
answer the question: How does the funder
want social impact to be highlighted and
demonstrated?
Another aspect presented by the expert
refers to several practical instruments that
the participants may use to measure social
impact (SROI, RSI etc.) and the factors that
influence this approach (ballast effect, risk
assessment etc.).
Recommendations
Social impact gives the proper colour
to the social innovation projects which
otherwise might be developed as any
326
other businesses, projects or companies.
That is why this session may be held at the
beginning of the course as well, immediately
after ideation. The reason for which we
chose this order is to have more clarified
data (promotion strategies, legal form,
financial administration) when we think of
the generation and measurement of social
impact.
Practical session – Social impact
Session objectives
1. Identification of social impact in the
social innovation projects
2. Identification of the instruments for
social impact measurement in your own
projects
Session structure
In this session, participants will return to their
own projects and identify the way in which
these may generate social impact and, more
than that, how they can make sure that this
is measurable and demonstrable. They will
start from the analysis of the social need they
intend to solve, and then from community’s
need to see social impact and the manner in
which the highlighting thereof inspires and
triggers long-term individuals’ involvement.
This session will be facilitated by means of
the expert, and the participants will present
the results of their practical activity in plenary
and receive feedback and suggestions for
improvement.
Recommendations
The 2 sessions dedicated to social impact may
interconnect in a different way according to
participants’ needs and expert’s choice. The
latter may choose to start with the practical
activity that they may subsequently develop
from the theoretical perspective, just as
case studies are left in the end so as not to
influence participants’ creativity in any way.
Panel: Funding sources (Stock exchange,
Bank, Funding programmes, Business
Angels etc.)
Session objectives
1. Knowing the specificities of the potential
financing sources
2. Clarification of funders’ need
3. Designing a first dialogue for a future
collaboration with funders
Session structure
This phase is essential for the participants
as it answers the question “Where can I find
the financial means?”. It may be organized
in two sessions depending on how many
experts will be present, and it may have
a more official character being structured
as a panel. The facilitator will moderate
this discussion. The representatives of the
financing structures will deliver a mini-
speech about the financing source they
represent and the specificities thereof
and they will answer moderator’s and
audience’s questions. For a more practical
context, at the beginning of the meeting,
the moderator may invite the participants
to introduce themselves together with
their project idea so that experts may give
customized suggestions.
At the same time, the breaks between
sessions and the end of the meeting may
be real networking opportunities for the
creation of contacts and potential future
collaborations.
The experts may be representatives of a
commercial or investment bank, of the
European programmes, of the institutions
managing European, governmental or
international funds, business angels, or
representatives of the Stock Exchange etc.
The assessment of the day and the
module will be made in an informal manner
in the networking session at the end of
the day or in the online environment on
the communication group created at the
beginning of the course.
Recommendations
This phase was held within SIP at Bucharest
Stock Exchange. This environment offered a
certain level of formality and authority to the
event which supported the idea of seriousness
that must be taken into consideration when
thinking about the possibility to collaborate
with such institutions in the co-funding of
the social innovation project. Thus, We
recommend that this session is organised in
an official framework and with a diversified
participation. The beneficiaries of funds
who developed social innovation projects
by means of external funding and who may
share their experience may also be present
in the panel.
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DAY 5
Review and reconnection to the project
ideas and the training course context
If there is a break between the two modules,
you may facilitate a discussion that might
highlight the elements of impact in the two
previous modules, what the participants
remembered the best, what they thought
to be the most useful aspect, which phases
were clarified and what is the status of
development of their project ideas. The
participants will present the work themes
for the break period and will develop the
aspects they retained from the second
module. Group dynamics exercises are
welcome at the beginning of this day and
module.
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Leadership/Personal development/
Communication/Leadership &
communication guest speaker
Session objectives
1. Understanding the concept of
leadership and its importance in the
context of social innovation
2. Identification of leadership styles
3. Personal analysis to create a
personal development plan
4. Knowing the communication
concepts and principles
5. Understanding the context of
conflicts in communication and the
management methods
Session structure
This training day is presented as a
whole since there is a concrete recipe for
implementation and numerous variables
involved. For example, the presence of an
expert throughout the day would offer the
possibility to combine the practical exercises
on personal development and self-
knowledge with the theoretical information
on communication and leadership. The
facilitator may also be an expert in soft skills
education and they may work together with
a potential guest or by themselves. In any of
the options, the goals recommended to be
attained on this day are:
SELF-AWARENESS EXERCISES:
These exercises aim to connect the
participants to their own reality both of their
personal life and their level of personal
development and from the perspective of
a future leader who, by their nature, will
have to know and manage themselves very
well in order to support and lead the team.
Our recommendations in terms of exercises
are: personal SWOT analysis, JOHARI
window, and DORI window. Any other types
of exercise that may bring the participants
closer to the analysis of their own person
and development need are welcome.
LEADERSHIP STYLES
If time allows, you may, for a better self-
knowledge, organize a practical leadership
exercise (Leadership exercise) which, in
the processing phase, will illustrate the
leadership styles that will afterwards be
confirmed and consolidated by a test on
leadership styles. These exercises help us
understand through a facilitated discussion
what the management needs are, the
aspects to be analysed when the participants
may lead a team, and the situation when
our own leadership style may be adjusted or
very useful for success.
THEORETICAL CONTRIBUTION OF THE
LEADERSHIP-COMMUNICATION EXPERT
GUEST
The theoretical information we consider as
necessary and important for the participants
to this project is as follows:
• What is leadership and why is it
important in the context of this training
course?
• The difference and complementarity of
leadership-management
• What are the leadership styles?
Tannenbaum-Schmidt theory
• What are the basic principles
in communication and the conflict
management styles?
• Case study: successful leaders in social
innovation
This piece of information may be found
in the theoretical part of the course
and may be delivered by the expert or
course facilitator as a cursive discourse or
intersected with the practical activities we
proposed.
Recommendations
The expert in the field may be a trainer,
the course facilitator, a specialist in
personal development, but besides the
person or persons facilitating this day on
the development of soft skills you may
also invite a leader that may share their
own experience in terms of the work
with people, the coordination of a social
innovation or entrepreneurship project, the
challenges they encountered and how they
overcame them and the suggestions they
may make so that the young participants
may be successful.
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DAY 6
Pitching & public speaking guest
speaker
Session objectives
1. Knowing the basic concepts related
to public speaking and pitching
2. Development of public speaking
skills
Session structure
THEORETICAL CONTRIBUTION OF THE
PUBLIC SPEAKING AND PITCHING
EXPERT
The role of this guest speaker is to help the
participants get familiarized with the main
concepts belonging to the field of public
speaking. This information is necessary due
to the public character of social innovation
330
that the participants are going to implement.
They will have to “sell” their project idea
to obtain financing and for promotion
purposes. Expert’s presentation will be as
detailed as time allows while referring to the
aspects described in the theoretical material
of this guide.
The expert will make a clear-cut distinction
between the elements having a general
character in terms of public speaking and
the particularities that characterize a limited
section of public speaking, namely pitching.
Apart from the elements related to structure,
vocal variety, body language etc., the
participants will receive information about
the way in which feedback is given and how
they can become better assessors.
In this phase, the participants will have to
ask questions for clarification purposes.
PUBLIC SPEAKING PRACTICE
To assess the level of development of
participants’ public speaking skill, the
expert will ask each participant to deliver
a 3-minute speech by which they introduce
themselves while complying with the aspects
mentioned in theory, a speech on which
peers will give their feedback (what I liked,
what I would improve, what I would keep).
Thus, the participants will be more aware
of their own skills and attitudes in terms
of public speaking, and they will practise
their skills of giving feedback, skills that are
important and necessary for the leaders
who will work with teams.
At the end of this exercise, the expert
will draw some conclusions and make
suggestions for exercises and improvement
in a customized way.
Recommendations
It is more and more valuable to have public
speaking skills, especially for those who
work with people and the community. This
is the reason for which this session deserves
the necessary attention and time to have a
long-term impact on the development of
the participants as future social innovators.
Pitching
Session objectives
Designing a speech for the promotion
of the project idea
Session structure
MAKING A PITCH
This session will be also facilitated by the
public speaking expert who will ask the
participants to create, on the basis of the
information received and of some specific Recap presentation of the project and
instructions, a pitch, namely a short speech the result
by which they wish to sell their project idea.
These speeches will be presented by each Session structure
participant or team and, in the form of
role play, they will set up a committee of Adding the finishing touches to projects
potential funders from the participant peers
who will ask questions and assess the For the last work session the participants will
speeches. All participants will, by rotation, return to BMC and put the finishing touches.
become business angels, and they will have They will also work on an attractive form of
the chance to analyse the two perspectives, presentation and promotion (more detailed
the financed party and the funder. than a pitch) in order to be shown to guests
and peers.
Recommendations
This session is not the final one but only an
exercise by which the participants have the
opportunity to practise and to improve the
speech for the sale of their project.
Final presentation of projects
Session objectives
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SIP GUIDE RO
PROJECT PRESENTATION
A festive atmosphere will be created with
guests potentially interested in the results
of this course (guest speakers, trainers,
beneficiaries, organisers, partners etc.)
where the participants will enjoy a dedicated
period of time for the presentation of
their completed project. This circular form
of closure will bring gratification and
satisfaction both to participants and to all
those involved in the project.
Recommendations
If there is the possibility to organize a festive
atmosphere with guests, this session should
be held after the evaluation session and be
completed by an informal celebration and
networking session.
Final evaluation
Session objectives
332
Final evaluation of the course and
closing the learning process
Session structure
Review
The review of all phases and modules is very
important at this point due to the long period
of time that has passed since the beginning
of the course, be that weeks or days. The
review will have an objective character
aiming to pinpoint the things learnt and the
skills developed.
Emotional evaluation
How did the participants feel during this
course? This question is essential for
the learning process and it is even more
valuable at the end when we evaluate all
the ways in which this course influenced and
changed participants’ process of evolution.
Any assessment method answering this
question may be used (drawings, poems,
music, statues, debate etc.). In this phase
we will also encourage the participants to
give constructive feedback to their peers
and thank them for their support in this
learning process.
Evaluation questionnaire
Regardless of the context in which the
course is held, it is recommended to
keep the assessment information. For this
purpose, a written or online questionnaire
is useful and the time of filling it in may vary
according to organisers’ decision, however
we recommend filling it in within a short
period of time after the course.
Recommendation
You may offer diplomas, certificates of
attendance or any other form of gratification
for participants’ dedication and involvement
in this course. This gesture may motivate
and inspire the participants to continue
their learning journey with the next phase,
namely the implementation of the social
innovation project.

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METHODOLOGY
The following methodology can be used throughout the training course, as needed, in order to facilitate a positive
learning environment by using icebreakers, name games, energizers, team building and evaluation activities.
ICEBREAKERS AND NAME GAMES
1. I introduce myself
Participants introduce themselves and
say why they are there. Variations:
Participants tell where they heard for
the first time about this course, about
the way in which they became inter-
ested in the topic, their jobs, home-
towns, their favourite TV shows or the
best books they read in the last year.
2. Introduce the other person
Distribute participants in pairs. Each
person speaks about himself/herself
to the other person sometimes with
specific instructions so as to share a
certain piece of information. For in-
stance, “The only thing I am very
proud of is ...” after five minutes, par-
ticipants introduce the other person
to the rest of the group.
334
3. Description of characters
Ask participants to write down one or
two adjectives describing themselves.
Write them on a badge. The group
members will have to find someone
else having similar or opposite adjec-
tives and they talk to the other person
for five minutes.
4. Find someone who…
Each person writes down on a card
one up to three ideas, such as their
favourite colour, interest, hobby or
holidays. Pass on the cards so that
everyone should receive the card of
somebody else, find the person and
introduce that person.
5. My name
People introduce themselves and tell
what they know about the reason for
which they have a certain name (my
mum wanted to name me after my
courageous aunt etc.). It could be the
first name, the middle name or the
nickname.
6. How do you feel?
Ask participants to write down words
or phrases describing their feelings
on the first day of course. List their
answers on the flipchart. Then, ask
them to write what they think you
may, in your quality of facilitator, feel
on the first day of course. List them
on a board in a second column and
notice the parallels. Comment short-
ly on your feelings and then you dis-
ICEBREAKERS AND NAME GAMES
cuss about participants’/facilitators’
joint responsibilities to learn within
non-formal education.
7. Three word interview
Assign each person in the group an-
other person in the group. Then, ask
them to tell as much of the follow-
ing information about themselves as
they can within 2-3 minutes: name,
hobbies, family, school/jobs, favour-
ite colour, favourite food, and favou-
rite type of music etc. They may take
interviews backwards or forward or
each person may be interviewed by a
completely different peer. In the end,
they will use only 3 words to describe
their partner (Example: Andrei was
my funny, hectic and talkative part-
ner)
8. Interpersonal BINGO
Create sheet of paper in BINGO style
where each square contains informa-
tion about the persons in your group.
(If you know your peers you may cus-
tomize information so that they may
fit precisely to your group). Use very
diverse information related to hob-
bies, background experiences, cul-
tural references etc. (e.g. they trav-
elled more than 10 km to get here,
he/she is an only child, he/she hasn’t
watched the Titanic movie, ... pos-
sibilities are endless). Then people
play BINGO by meeting other people
in the room, introducing themselves
and winning prizes.
9. Poetry in movement
Ask each person to write a poem
about themselves. It must contain
their name and some piece of infor-
mation about themselves and it must
have at least four lines. Each person
reads their poem in front of the group
as a way of introducing themselves.
10. Build up a team
When they enter the room, give ev-
eryone a sheet of paper on which the
name of a famous personality or any
other topic by which you can group
the participants is written. The goal is
that they find other persons belong-
ing to the same “group” and meet.
The ways of doing this are numerous.
Then, once they find all the persons
from their group, you may ask them
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SIP GUIDE RO

METHODOLOGY

ICEBREAKERS AND NAME GAMES

to do something (normal things are a initiatives. Instead of getting aligned Sources:

human knot, an introduction of their according to the date of birth par-
team and of each member thereof ticipants might align according to a http://www.residentialassistant.com/
etc.). number of features, such as the first icebreakers
letter of their neighborhood/town http://www.flora.org/mike/poped/
where they live etc. Another option icebreakers.html
11. Silent alignment would be to tie up everyone and
ask them to align according to their http://www.hcc.hawaii.edu/intranet/
Participants are asked to align them- height. committees/FacDevCom/guidebk/
selves according to their date of birth teachtip/bre akice.htm
(not the year). For example, someone
born on January 16th would be closer http://www.union.uiuc.edu/pro -
to the front of the line than someone grams/readers/icebreakers.htm
born on May 5th.
Icebreaking rules are:
• Participants shall not talk or
use their mouth in any way.
• They shall not use pens/pen-
cils etc.
• You shall not use any materi-
al.
Encourage participants to use their

336
337
SIP GUIDE RO
ENERGIZERS
1) Blanket
Necessary materials: a blanket and a
water balloon. All players must stay
around the blanket by keeping hold
of it. The game leader will launch
the water balloon (by catapulting or
throwing it) up into the air. The objec-
tive of the game is to catch the bal-
loon with the blanket.
2) Blindfolded beach volleyball
Necessary materials: a blanket and
a ball. A blanket is placed on top of
a volleyball net. The game is paled
normally except for the fact that you
cannot see the coming ball. Scary,
isn’t it?
338
3) Blind man’s bluff
Necessary materials: a blindfolded
player. The blindfolded player turns
around for three times and tries to
catch somebody around them. The
others may sneak by crawling behind
the blindfolded person and cry “Boo”
or they may stay still and keep quiet.
However, somebody will be inatten-
tive and finally caught. The person
who was just caught is blindfolded for
the next game.
4) Bola
To make a Bola you must put a soft
rubber ball into a sock and tie the
sock above the ball. Attach a piece
of rope to the sock. The player sits
on his back and starts rotating the
Bola slowly releasing the rope. When
it touches the maximum radius, the
other players start jumping in a circle
over the Bola. The one rotating the
Bola may increase the rotation speed.
Players may also jump by holding
hands and making pairs. If anyone is
hit by the Bola, they must go out.
5) Needle bombardment
At each end of the playing area there
are two rows of ninepins or plastic
bottles, the number of them being
equal to the number of participants.
You draw a line in the middle of the
playing area and divide the group
into two teams. Each team is situated
on one side of the playing area with-
out being allowed to cross the central
line. One team starts the game by
throwing a volley ball and trying to
bear down as many ninepins as possi-
ENERGIZERS
ble on the other side of the area. The
opponent team protects the ninepins
by catching the ball with their hands
or by blocking it with their bodies.
If the ball gets out of the area and
hits a ninepin and bounces back on
the areas the action is still valid. You
may use 2 balls if there are a high-
er number of participants. The ones
who bear down all the ninepins of the
opponent team are the winners.
7) Buzzing
Players start counting and substitut-
ing the number 7 and its multiples by
the Buzz sound. If a player makes a
mistake they are eliminated and the
group must start from the beginning.
8) Catch, don’t’ catch
Players must stay in a circle with their
arms crossed. The person in the mid-
dle of the circle will thrown a ball to
someone in the circle. They will say
“Catch!” or “Don’t catch!” If they say
“Catch”, the player must not catch
the ball or move their hands. If the
person in the middle says “Don’t
catch”, the player must catch the ball.
If a player makes a mistake, they will
go out.
9) Running in a circle
The players must sit in a circle and
they are counted from 1 to 4 (you
can adjust the counting according to
the group size). The group pleader
will say a number and the persons
in the circle having that number will
stand up and start running clockwise
around the circle. After a warming
go, the race begins. A player has to
go out of the game if another player
exceeds them from the exterior. The
game continues until there is only
one person left. The leader continues
shouting numbers. A round of win-
ners may be a good way of ending
the game.
10) The ball in the big circle
Necessary materials: a volley ball.
A circle is made by people who are
keeping their legs wide apart and
touching those of their neighbor. The
player inside the circle tries to throw
the ball out between participants’
legs. Players try to stop the ball by
means of their hands. If the ball goes
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SIP GUIDE RO
ENERGIZERS
out, the player whose legs the ball
went through will go in the middle of
the circle.
11) Bed/towel ball
Necessary materials: a ball, bed
sheets or towels. This game is in fact
a group juggling with a ball made of
bed-towel ball.
12) Football in dwarf walking
Two teams are standing at a short
distance from one another. Team
members are counted. The football is
placed in the centre. Officials shout
numbers. The player of each team
whose number was shouted must
dwarf walk and score a goal into the
opponents’ goalpost. When a goal
is scored, the ball is placed again in
340
the centre of the pitch and another
number is shouted. The team mem-
bers may help but they cannot score
goals.
13) Statue dance
Necessary materials: yoghurt cans
(or something else - be creative).
Each player is given a yoghurt can
that they must put on their head. All
players must dance with the cans on
their heads. Who manages to keep
the can as much as possible will win
the game.
14) Dho - Dho - Dho
A soft surface is divided into two
equal parts by a central line. Players
must be divided into 2 teams stand-
ing on each side of the line leaving
a neutral space between them. One
team picks a player that must cross
the central line and try to touch one
or more opponent players and come
back safely. Of course this requires
some agility – what about breathing
control? Here comes “dho – dho –
dho” before crossing the central line,
the player picked up must breathe
deeply. Not only does he/she have
to complete the mission within one
single breath, he/she must also utter
“dho – dho – dho – dho – dho” contin-
uously. If the members of the oppo-
nent team manage to keep the one
who entered their territory until he/
she can no longer breathe and he/
she must breathe again, that player
will become a member of the oppo-
nent team. If he/she still manages to
cross the central line with any part of
their body all those touched by him/
ENERGIZERS

her will become members of his/her

team.

15) The ball thrown by the mon-

key

Necessary materials: a ball. This

game has the same objective as the
game with the dropped ball. A circle
is made and 4 players are picked to
go to the centre. The 4 players are
holding each other by their waists
by making a chain. The face and the
median part protect monkey’s back
with their bodies. The players in the
circle try to hit monkey’s back below
the waist with the ball. If someone
hits the last person that forms the
monkey then they will take the place
of the hit person, and the latter will
take the place in the circle.

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SIP GUIDE RO
COOPERATION GAMES
1) Everyone on the same side
The game starts with the positioning
of your team on one side of a vol-
leyball net without anyone of your
team staying on the opposite side.
The objective is to take your team to
the other side and to come back for
as many times as possible. Using a
balloon as a ball, each player hits the
balloon towards another player after
which they quickly pass underneath
the net on the other side. The last
player touching the balloon throws
it over the net and the player passes
quickly underneath the net. The play-
er catching the balloon tries to keep it
in the game and to repeat the action.
2) Ambush game
The groups is divided into two sub-
342
groups A and B. Group A sets forth
5 – 10 minutes before group B by
leaving behind all sorts of clues (foot-
prints, arrows, codes, pieces of pa-
per, markings, etc.). Then they must
disguise themselves and organize an
ambush for group B. Group B sets
forth and getting oriented after the
clues left by group A will try to find
the ambush place. During ambush,
the groups compete in a fight of rid-
icule and irony (by stealing scarves,
mufflers, Indian wrestling etc.). The
meeting of the two groups may also
result in crying “Ambush” and their
racing to the starting point.
3) The cattle yard
Each player is given an animal name,
and three of them have the same
names. No one can tell what animal
they are. To a certain signal, each
player must make the sound of the
animal they represent. The first group
of three animals finding each other
will win the game.
4) Baseball
The group is divided into two teams.
Rules are similar to those of a base-
ball game, except the fact that the
team standing in the pitch must not
move their legs. The team driving
the ball will use their hand to drive
the ball and crawl around the base.
To score a point, the who hits must
crawl back from the base to their own
base before the team on the pitch
throw the ball to the base catcher.
If the team on the pitch manages to
get the ball before the one hitting it,
then they will go out. After 3 players
COOPERATION GAMES
have gone out, the teams negotiate
the places.
5) Basketball - football
Necessary materials: balls and two
teams. The objective is to make both
teams go from one end of the pitch to
the other for as many times as pos-
sible in 15 minutes. When teams A
and B are at the end of the pitch, they
must cooperate to pass the balls be-
tween posts and to hit and raise the
ball to the hand of an opponent play-
er who will throw it into the basket. If
the ball gets into the basket, players
may go to the other end of the pitch
and throw to the ball there. Note:
Team A may throw the ball only to
basket A and team B only to basket B.
6) Staying on the blanket
Necessary materials: a blanket. The
entire group must stay on the blan-
ket so that no one stays outside. If
the group manages to do that, they
the blanket is double folded and the
process continues (folding the blan-
ket) as long as this is possible, while
players all try to stay on the blanket.
7) Surfing
All players are laying face down one
next to the other at a distance of one
body between them in order to make
a huge human wave. One player
kneels at one end of the line of bod-
ies and throws himself/herself on the
belly with their arms extended. The
wave starts moving. Those lying at
the front end of the line start rolling
continuously in the same direction.
When the surfer arrives on new play-
ers they start rolling, too. When the
surfer arrives at the end of the line of
bodies, namely on the beach, he/she
will also become a wave. The player
at the front end of the line of bodies
becomes the surfer and the process
continues.
8) Clash and run
Necessary materials: volleyball net
and a ball. Using the net for demar-
cation, the girls will stay on one side
and the boys on the other. Each time
a boy or a girl hits the ball over the
net, they pass underneath the net to
the other side. The idea of the game
is to change halves of the pitch but
teams must cooperate (all girls must go
to boy’s part of pitch and vice versa).
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SIP GUIDE RO
COOPERATION GAMES
9) The electric fence
Necessary materials: 8 strong bats,
“thread”
Objective: Carrying a group over the
electric fence by using only the par-
ticipants and some conducting bars.
Rules: if a participant touches the
fence (rope) they are “dead” and they
must try to cross again. Any person
touching the player who touched the
fence will “die” at their turn and they
will have to try again crossing the
fence. If the conducting bar touches
the electric “thread”, all those coming
into contact with the bar will be dead
and have to cross again. The electric
field cannot be penetrated and it is
delimitated by the thread and earth.
The trees or other objects supporting
344
the thread cannot be touched so they
cannot be used.
Attention: Pay attention to those
who will try to throw people 7-8 feet
above the rope
10) Escape from “What?” planet
The game starts by dividing clues
to each team, clues that will lead to
the mother spaceship of each team.
Spaceships may be anywhere. Once
on the spaceship the team will find
a message either on a video tape or
on a piece of paper that says that the
spaceship had a technical failure and
crashed on planet “What”. Players
have 40 minutes to follow the clues
that will guide them to a new space-
ship in such a way that they will be al-
lowed to say only “Who”, “What” and
“Where”. Clues will guide then from
one point to another when they will
have to perform different tasks (e.g.
composing an anthem for the planet
or crawling underneath a laser field).
The last task is to build a spaceship
with anything else except the avail-
able equipment.
11) Fire
“Victims” must keep emotionless and
can help their rescuers only after they
have healed completely. Rescuers
must not check the vital signs un-
til victims are taken to a safe area.
Except for three persons, the whole
group is in a state of unconscious-
ness in a burning building. Rescuers
know that the building will explode in
4 minutes. The goal of the game is to
save as many people as possible.
COOPERATION GAMES
12) Losing the leg
The goal of the game is to carry ev-
erybody to the other end of the pitch.
To make the contest harder the game
funnier, players are told that they are
afraid of a certain disease so, in order
to pull through, they will have to be
carried by the other players. Players
will be carried by as many players are
necessary. When the carried player
reaches the end of pitch, the carrying
players must go back and carry others
as well. This continues until the last
player is carried by a single person.
The last player that was not carried
would be carried triumphantly on the
shoulders of the entire group.
13) Help your friend
Necessary materials: bags full of
beans. Players put the bags on their
head. To a certain signal, players
must walk through the room to a
place they want. To change the ac-
tivity, the leader may ask participants
to jump or hop. If the bag with beans
falls off player’s head, he/she will be
“frozen”. Another player (the friend)
must pick up the bag of beans and
put it on the head of the first per-
son without dropping their own bag.
At the end of the game, players are
asked how many times they helped
their friends and how many times
they were helped.
14) Crazy people
Necessary materials: a piece of crepe
paper. The group is divided into
teams of three. Each team will be giv-
en a roll of crepe paper. Two border
lines are drawn at a distance of about
3 and a half meters. Each team stays
behind a line. When the leader shouts
“Start!”, two players of each team sit
on their hands and knees one behind
the other. The back player puts his/
her hands on the ankles of the front
player. The third player makes the
connection between the two. He/
she does this by wrapping the place
where the hands of the back player
touch the ankles of the front player in
crepe paper. After players have been
connected to each other, they will
crawl towards the line forming the
opposite border. If the paper is torn
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SIP GUIDE RO
COOPERATION GAMES
two crawling players must stop and
the third must mend the connection.
When the two reach their destination,
they will switch places so that every-
one must have been the person who
makes the connection. The first team
managing to reach the opposite bor-
der wins. Players must switch places
so that everyone should be the per-
son who makes the connection.
15) Keep it up
Necessary materials: a ball. Players
sit in a circle with their legs facing the
center of the circle. The moving ball
must be kept in the air by means of
legs. If the ball is dropped, the ones
who dropped it will lose points.
346
16) Knots
A group of eight participants stays in
a circle with their face towards the
centre. They will shake hands with
the persons in front of them and the
left hand will be shaken with a ran-
dom person in the circle to make a
human knot. The goal of the game is
to untie the human knot.
17) Sitting round
A circle is made by means of the
shoulders of all players staying close
together. Everybody turn 90 degree
to the left. Hands are placed on hips.
Everyone will sit on the knees of the
person behind them. They will try to
stand up, sit down, turn and sit down
again. They will try to walk when they
sit on one person’s knees.
18) Lip and card delivery
Necessary materials: a card. The
group is divided into two teams that
will stay in two straight lines face to
face according to the pattern one
boy- one girl – one boy – one girl.
A card is given to the first person in
the line. He/she will put the card on
his/her lips and keeping it this way
will try to pass it on. The first line that
manages to pass on the card up to
the end of the line wins the games
19) Lumberman
There are two lumbermen per team,
the rest of the player being trees.
Lumberman will have to unload the
lumber in the load storehouse (to
carry the people in his team), to pile
the lumber (to put his people on top
COOPERATION GAMES

of the team by making a pile) and to

replant new trees (to carry the same
people back and leave them stand-
ing).

20) Machineries

Groups of 6 -10 people must build

a functional machinery by mimicry
(each person is a part of the machin-
ery). The others must guess what ma-
chinery it is about. Speaking or noises
of any kind are not allowed.

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SIP GUIDE RO

HERO’S JOURNEY
Course flow integration within a A motivational story to integrate the learning experience of the
Objectives
training

Hero’s journey is a concept used by Joseph Campbell,

one of the greatest researchers in the field of world myths and legends.
Campbell noticed that folk stories all over the world have a “red thread”, a typical epic unfolding that leads
the story hero to the happy ending of his journey. Here are the stages of the hero’s journey
The call
People usually say that someone who has a vocation for a certain job has a “calling” namely they are called
to fulfill their role in the world by dedicating themselves to that job.
This call is heard by the person in question when they are mature enough and the context is favorable.
The threshold
When the person decides to answer the call they fully dedicate to this goal. They toed the line. The threshold
has been crossed. The journey starts!
Guardians or the forces of good
Introduction They are the resources by means of which the hero conquers the forces of darkness. Most of the time the
hero sets off supported by helpers (e.g. the fire-eating horse) or they receive them on their way by “tests”
they are subjected to by the enemies.
Demons or the forces of evil
Demons are the characters or the negative circumstances blocking hero’s way in order to stop him.
It is interesting the fact that during the story what initially seems to be a demon or an enemy turn into
something good.
The victory
The hero finally reaches the top of the mountain, conquers the castle, finds the treasure or saves the girl. The
stake of the story has been won and the hero comes out on top.
The return
In the end, the hero returns to his beloved and he is “validated” as the vanquisher by them. He will be
recognized and appreciated within the community for his experience.

http://www.andyszekely.ro/calatoria-eroului-un-articol-special-nlp-camp-2004/

348
Materials Suggestive drawing of journey’s phases
Time Integration into the different phase of the course
Adaptation of this story to the red thread of the course is made by the identification of some phases as
follows:
The call – mission, goal, objective
At the beginning of the course, you may tell the participants as their current participation to this course in
this context could be considered as a call. You may also explore motivation, the goal of participation and
each individual wants to gain of this experience, especially after they apply the information in this training.
The threshold – firm decision, dedication
The participation for 6 days together with the decision to implement the project they are going to develop
during the course may be elements specific to the threshold, the starting point of this journey on social
innovation.
Guardians – resources of any kind
Resources will be mentioned from the beginning (facilitator, experts, mentors, innovators, course materials,
peers etc.) and reminded in key moments as being helpers in the challenges encountered both during the
Process
course and the project implementation.
Demons – problems, obstacles, challenges
In every learning process there are challenges, ups and downs and possibly conflicts. That is why the
possibility of their existence in the training course will be mentioned, mainly in the subsequent phase.
Victory – attaining the goal, fulfilling the mission
Fulfilling the mission will vary from one participant to another but the common learning objective may be
mentioned and followed from the beginning up to the last assessment phase. You may also consider the
issue projectively by contemplating the final victory when the social innovation project is implemented with
impact and success.
The return – recognition of merits, personal example
The recognition of efforts and active involvement in the learning process during this 6-day course is an
essential phase. Merits will be recognized by the positive results obtained at the end of implementation of
the social innovation project.
This process may be presented at the beginning and the elements related to motivation (call), taking
Processing responsibility (threshold), resources (guardians), and challenges (demons), may be clarified and reminded
during the learning experience and the results (victory) and merits (return) must be underlined at the end.
Such an instrument gives certain circularity to the phases of the training course and makes the learning
experience easier. Metaphors favor the identification of participants with the direction and implicit
Conclusions
processuality. Any other instrument, metaphor, story that may follow the story phases, and the red thread
of the course might be adapted and applied.

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SIP GUIDE RO

ORID
Organization of assessment according to the learning principles of KOLB cycle (Action, Reflection,
Objectives
Theorization, Practice).

In any kind of assessment of a session, an exercise, a course day or an entire experience, we may
ask the questions in the processing phase so that it may provide a global integration of learning.
Introduction
Thus we will follow first the objective questions, then the reflective and interpretative ones and
finally the decisional ones.

Materials Ball-point pens, paper sheets, flipchart (is you want to summarize answers)

Time It depends on the dimension of the learning experience

Objective questions
Data, information, senses
- They are used to illustrate observable information and data of an event
- They are usually sensorial questions related to sense: sight, hearing, smell, etc.
Reflective questions
Emotions, feelings, spiritual states, remembrances, mental associations
- Awareness of the fact that each member of a group has a subjective reaction towards the
same experience
Process - What do group members feel in relation to an experience?
- Evoking the world full of meanings and intuitions, remembrances, emotions and
imagination by the group members
Interpretative questions
Critical thinking: meanings, senses, significances, importance
- Meanings that the group assign to their experience and the reactions of this experience
- Invite the group to create the significance and importance of an experience
- Provide the possibility for the group members to think of other perspectives by listening to
other viewpoints

350
 Decisional questions
Implications, new directions for action, future steps for action
Process - Using information to make informed choices
- The group must make a decision in relation to the results obtained
- The group must agree in terms of future actions and decisions
Examples of questions:
Objective questions
• What images or scenes do you remember?
• What people, comments or words have stuck to your mind?
• What ideas or people got your attention and why?
• What sound do you remember?
• What tactile sensations do you remember?
Reflective questions
• How did this experience affect you?
• Were you concerned of anything at a given point?
• Were you surprised at any moment?
• Were you worried at any moment of your experience?
• What was the highest/lowest point of your experience?
Processing
• What was the collective mood of those involved?
• How did the group react?
Interpretative questions
• What were the key significances of this experience?
• What was the most important aspect of this experience?
• What conclusion can you draw from this experience?
• What did you learn from this experience?
• How does this experience relate to other theories, models and concepts you know?
Decisional questions
• Has this experience changed the way in which you see things?
• What would you tell those who were not here?
• What will you do differently following this experience?
• What are your future steps?

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SIP GUIDE RO

 INOVARE  ADMINISTRARE   ADMINISTRARE IMPACT

SOCIALA JURIDICA FINANCIARA SOCIAL

Adrian Secal Ana-Maria Udriste Stefan Dumitrescu Andreea Floroiu

social economy and community lawyer accounting expert social entrepreneur and
development expert nonformal education trainer

352
  FINANTAREA   LEADERSHIP  PUBLIC SPEAKING SI
IDEII PITCHING

Stefan Grigore Oana Mosoiu Stefan Balica

financial consultant adult education, teacher training, Sirius Toastmasters,
volunteering and nonformal President 2016-2017
education trainer

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SIP GUIDE RO

SOCIAL INNOVATION THEORY

WHY?

Almost the entire innovation policy relies on the traditional needs of profit and
innovation based on technology. However, solving the economic and social issues in
the coming decades will require fundamental improvements of the public services.
Social innovation is essential for this process.
The field of social innovation is currently less understood. There are several positive
practical examples in the entire Europe showing the way in which localities may use
innovatory approaches to transform public services.
Social innovation means having the adequate strategies and organisations that may
be harmonized with the real social needs, and the new and functional ideas that
may solve them. But there are few intermediate entities that may harmonize the
offer of new ideas with the need of having them. Financing is not uniform and there
are insufficient incentives so that the managers of public services may look for new
and better solutions.
Social innovations in a field may also be extended to other areas of the provision
of public services. Financing is important, but it is not the main driving force, and
social innovation may occur anywhere – even in areas not having a long tradition

354
of “different thinking”. Moreover, by
bringing changes to leadership, incentives
and financing, national governments could
rapidly transform the capacity of a country
for social innovation.
Innovation in terms of public services
may reduce costs and improve
performance. Social innovation may take
several forms. They include innovation in
the public sector with a focus on the public
services in order to improve performance or
to save money, and innovation in the non-
profit or for profit sector improving public
services or providing new ones. Social
innovation in the third sector (volunteer and
community groups and social enterprises)
may join the provision of public services.
WHY NOT?
Insufficient understanding of the
elements triggering innovation. Social
innovation has been deprived of systematic
and strategic support and assessment unlike
the advanced technologies or other fields of
innovation. There is some limited evidence
regarding the engines of social innovation,
though several have been identified (for
example charismatic leadership and
an organizational culture encouraging
creativity and experimentation). However,
the field has remained so far at the outskirts
of serious research.
Lack of some intermediate entities that
ma facilitate economic growth and the
dissemination of innovation. There are
currently too few intermediate entities that
may connect in a uniform manner the social
innovation system. Set up correctly, they may
facilitate the flows of knowledge, resources
and the best practices and support economic
growth of the organisation – for example by
mobilizing important allies. The brokerage
agencies such as Yong Foundation may
cultivate and maintain social innovation.
Their flexibility makes room for creativity,
experimentation and innovation, but
they cannot substitute the involvement of
strong organisations with great resources
(other governments) when speaking about
the development and implementation of
policies on a wide scale.
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Lack of some intermediate entities that
ma facilitate economic growth and the
dissemination of innovation. There are
currently too few intermediate entities that
may connect in a uniform manner the social
innovation system. Set up correctly, they may
facilitate the flows of knowledge, resources
and the best practices and support economic
growth of the organisation – for example by
mobilizing important allies. The brokerage
agencies such as Yong Foundation may
cultivate and maintain social innovation.
Their flexibility makes room for creativity,
experimentation and innovation, but
they cannot substitute the involvement of
strong organisations with great resources
(other governments) when speaking about
the development and implementation of
policies on a wide scale.
Fragile markets for the results of social
innovation. Social innovation, especially
in the field of public service provision, does
not offer the investors focused on profit
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potential revenues associated to other
innovative domains such as the advanced
technology. Until recently this meant a
lack of capital to finance economic growth
of social organisations, underdeveloped
capital markets to grant funding to social
entrepreneurs and fragile markets for the
results of social innovation. Even the very
successful innovations do not have the
guarantee of reliable financiers and buyers.
Local social innovation hides behind
traditional indicators and policy. A large
part of social innovation starts at local
level (bases, expert, leadership of the local
authority, local champions). Consequently,
it may hide behind decision-makers and
researchers. The indicators of traditional
innovation having their origin in Frascati
and Oslo handbooks have been developed
to measure scientific and technological
innovation in the high tech companies.
The multiple intangible gains from social
innovation make these indicators be quite
inadequate measuring instruments. Since
these indicators are so important in the
establishment and assessment of the policy
on traditional innovation, social innovation
is often excluded from the development of
policies.
The government is often perceived as
a suffocating innovation. Although clear
evidence is quite limited, governments are
generally perceived as being against risks
and inherently more relaxed in terms of
bureaucracy, standards and regulations
than in terms of the open culture of
experimentation, creativity and innovation.
Central policies may also inhibit innovation.
The specific targets may put pressures on
innovation and may also exhaust creativity;
the risk may be discouraged in a culture
where few people are promoted for having
successfully assumed some risks, but where
failures are immediately punished. The
practices in the public sector, such as the
audit inspections, the budget criteria and
the recruiting policies, are not designed to
facilitate social innovation. The commissaries
in the public sector are given few incentives
to adopt more innovative purchase models.
Recent steps have improved the social
innovation system. Some organisations
actively encourage social innovation. For
instance, NESTA-Young Foundation Health
Innovation Accelerator (HIA) is testing
a new approach to support innovative
companies in the management of financing
of the long-term chronic health states.
Innovation Exchange wishes to support the
innovation capacity of the third sector by
online resources that connect innovators
and investors together with the provision of
assistance and more traditional support.
WHAT?
Social innovation tries to bring a
transformational change that addresses
social issues and improves life for the people
having problems.
Social innovation often uses what people call
“combinatorial creativity” - uniting thinking,
experience and perspectives in a range of
domains in order to create new inspiration.
Social innovation does not only mean
technology - though technology may be
transformational – it is often more than the
change of the way in which things are done,
mainly in the social sectors. It also means
ingenuity – the capacity to bring different
better results with the resources at hand.
The development of the community is often
combined with social innovation by reuniting
people’s competences with creativity in
order to develop solutions that may be tested
and adapted until they become replicable
models.
Social innovation means the development
of new ideas that may address social issues
ad needs. It may be a product, a service,
an initiative, an organizational model or a
new approach for the provision of public
services.
Some social innovations are modest and
incremental; others are systemic and
fundamental, such as the major changes
necessary for the passage to a society with
low carbon emissions. Other examples
include the new services (e.g. NHS Direct in
the Great Britain) and new social enterprises
(e.g. The Big Issue – a magazine sold by the
homeless people in the Great Britain).
Social innovation refers to the great issues of
a country in its largest sectors. Some of the
barriers of a country to support economic
growth, such as the climate changes or
the challenges posed by the aging of the
population, will be overcome only through
innovation.
In the 21st century economies, the largest
sectors are often represented by services
than by traditional production. Health is
actually the largest sector in most advanced
economies.
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UNDERSTANDING
• An intersectoral approach
• It is launched by a variety of actors,
including research institutions,
companies or independent organisations
• It focuses on innovation processes and
the way in which innovation and change
fall into place
It relies on new activities and forms of
cooperation (business models), especially
the ones oriented towards a sustainable
society.
CONDITIONS FOR SOCIAL INNOVATION
TO DEVELOP
• Encouragement
• Facilitating connections, creativity and
the generation of ideas
• Cultivating local solutions
• Creation of safe jobs
• Investing in social innovation Conditions
for social innovation to expand
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There are four conditions for social
innovation to expand on a wide scale.
Four conditions are essential so that
nongovernmental entities may develop
products, services and social and sustainable
innovative models on a wide scale:
• The demand for innovation generated
by real social needs –‘pull’ (the attraction
factor).
• The supply of functional (and
communicable) ideas – ‘push’ (the
rejection factor).
• Connecting the two to the adequate
organizational form.
• Permanent organizational capacity
to learn and to adapt to the evolving
external environment
PHASES OF SOCIAL INNOVATION
LIFECYCLE
Phase 0: latent status, normally a period of
low performance before the emergence of
innovation.
Phase 1: in the “design and discovery” phase
often caused by a crisis, the innovation
strategy and process take shape
Phase 2: period of “mobilization” generating
new structures and teams for the piloting
of innovative ideas and the beginning of
implementation of innovations.
Phase 3: innovation gets into the
“mainstream” when it becomes routine, as
ideas and practices are consolidated.
Phase 4: ‘integration’ – the value of
innovation increases; social innovation
may occur if your locality may repeat the
innovation in other services.
Phase 5: finally the ‘scaling’ – development
in other localities, partnerships, promotion
of the solution, and transfer of knowledge
and work methods, applying the solution to
other domains
An innovation will not automatically
progress towards the next stage – in every
phase of transition the process may fail or
be cancelled.
DRIVING FORCES AND CATALYSTS differently and require various accents
from the part of the future leaders of social
When a public service fails or is in a crisis, innovation.
the recognition of low performance is a
fundamental driving force for innovation.
External agencies such as the Audit
Committee or Ofsted may impose this to a
locality. Pressure may also come from the
large public, mass media or commerce.
Then, this identifies action by means of
the internal or external stakeholders.
The pressure for change is not a sufficient
condition for innovation.
A strong leadership is necessary to
initiate and to encourage a sensitive
organizational culture supporting risk
taking and creativity from the part of the top
management and the first line personnel.
Networks collaborate to facilitate
innovation. The capacity to mobilize
resources consolidates the change.
Reflective learning and public feedback help
maintaining the impulse.
In every phase, these factors interact

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Volunteer organisations
Social enterprises Private companies,
Charity organisations Workshops, Cooperatives Social CSR, Fair trade,
(e.g. trading companies organisations for profit,
Non-profit organisations protected units Credit unions entrepreneurship social banks
owned by NGOs) traditional businesses
Foundations, associations

Sustainability Social accountability

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SOCIAL INNOVATION ORGANISATION SOCIAL ECONOMY, SOCIAL Unlike social entrepreneurship, social
ENTREPRENEURSHIP AND SOCIAL economy aims to improve the life standard
Different forms of organisation for social INNOVATION and to offer new opportunities to the
innovation answer the following questions: disadvantaged persons or those who belong
1. Who are the direct beneficiaries of the Even if in the specter of organization type to vulnerable categories and not to obtain
activity? social innovation appears in all forms of profit.**
2. Is there any surplus and what happens organization, it starts from the need to
to it? innovate with the aim to ensure its own *http://success-romania.ro/economie-
3. What is the way of making decisions? sustainability and impact on beneficiaries sociala/antreprenoriat-social.htm
4. How is success measured? or from the need to be responsible actors ** http://www.ies.org.ro/ce-este-economia-
in society – in relation to the environment, sociala-1
Charity Private employees and consumers.
organisations companies Different forms converge both to provide
1.social mission 1.profit organization’s sustainability and to maximize
2.beneficiaries of 2.shareholders social impact thus reaching the fine border
charitable activity 3.surplus distributed to between social entrepreneurship and social
3.surplus reinvested shareholders
into the charitable 4.vote according to
economy.
activity interest in the company Social entrepreneurship, in its general
4.democratic vote, “an 5.success = profit meaning, is defined as the economic activity
individual, a vote” maximization oriented towards the solving of some
5.success = social issues of social nature and it brings profit
impact
reinvestment to the fore*.

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SOCIAL ECONOMY – A FIELD OF SOCIAL
INNOVATION
If innovation in the forms specific to economy
is a constant and a condition to provide
medium and long-term sustainability, in
the forms specific to the domains related
to social impact (charity organisations,
environmental organizations, volunteer
organizations etc.) this is a relatively new
concept having mainly the same purpose –
to provide sustainability for the activity and
to diversify the forms of solving the social
issues identified.
Different forms combining social impact
(as their main activity) with the economic
activity have evolved over time from this last
type of organizations thus giving birth to the
social economic sector.
In Romania, the following legal forms
are recognized as making part of this
sector, under the Law on social economy
(L219/2015)*:
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• Cooperatives set up under the Law
1/2005 or the Law 227/2007
• Associations and foundations set up
under G.O. 26/2000
• Mutual benefit societies set up under
the Law 122/1996 or 540/2002
• Agricultural societies set up under
the Law 36/1991
• Trading companies owned by the
entities mentioned above
• Federations or unions of the
organizations mentioned above
* http://www.mmuncii.ro/j33/images/
Documente/Legislatie/L219-2015.pdf
SOCIAL ECONOMY IN ROMANIA –
STATISTIC DATA – MAIN ENTITIES
1. NGOs
According to “Romania 2017. Sectorul
neguvernamental - profil, tendințe,
provocari”* survey, at the end of 2005
- 70,194 associations, out of which 51.8%
were active;
- 16,613 foundations, out of which 32.7%
were active;
- 1,195 federations and 649 unions, out of
which 48.3% were active, were registered in
Romania.
In 2015, the total patrimony of NGOs
amounted to 16.7 billion lei, out of which
8.1 billion in fixed assets and 8.6 billion in
circulating assets.
In 2015 the number of jobs created by
this sector was 99,774, with 68 % NGOs
operating without any employee.
Out of these, 13,117 people were employed
in economic activities.
2. Mutual benefit societies
According to “Romania 2017. Sectorul
neguvernamental - profil, tendinte,
provocari”* survey, 2677 Mutual Benefit
Societies for employees and pensioners
were registered at the end of 2005.
In 2015, the total revenues of the two
types of legal forms amounted to 619,654
(thousands) lei, with fixed assets of
4,963,480 thousands lei.
In 2005, the number of employees was
5,948 individuals.
The total number of members was
2,286,849 persons.
* http://www.ies.org.ro/library/files/
romania-2017.pdf
Social economy in Romania.
Acknowledgment
To acknowledge the contribution to the social
economy sector, under the Law 219/2015,
the relevant institutions may grant two types Several examples
of certificates:
Innovation in public services
- Social enterprise which is any of the Social entrepreneurship
social economy entities meeting the criteria Open source
related to democratic principles and the Online volunteering
redistribution of profit/surplus Micro-financing
- Social enterprise for social inclusion Socially accountable investment
being the social enterprises that already Habitat conservation plans
employ individuals belonging to vulnerable
categories in a proportion of at least 30% of
their total number of jobs.
Social marker represents the form of
certification of social enterprises for social
inclusion granted to them to obtain facilities,
under the legislation in force.
The number of social enterprises and social
enterprises for social inclusion recognized at
national level is currently less than 50 due
to the fact that the rules for implementation
were published only as late as the end of
2016.
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METHODOLOGY

SOCIAL INNOVATION

Objective Defining the social innovation concept

Participants are randomly divided into 4 groups. Each group is given the task to talk and answer
one of the following questions:
1. What is social innovation?
Introduction
2. What is not social innovation?
3. What social innovation projects/businesses do you know of?
4. Why do we implement social innovation projects?

Materials Colored sheets of paper, markers

15 minutes for work

Time 5 minutes of presentation/team
30 minutes for processing
Participants perform a brainstorming exercise in their teams and designate a representative that
will make presentations in plenary. Subsequently, peers supplement the information. The other
Process teams may also supplement information.
Processing will target the definition of the social innovation concept. At the end conclusions shall
be drawn by the facilitator in plenary.
• How do we define the “social” component of the social innovation concept?
• How do we define the “innovation” component of the social innovation concept?
Processing • What are the advantages of involvement and implementation of social innovation
projects?
• What do social innovation projects solve? Who may benefit from this kind of activities?
The exercise is meant to clarify the social innovation concept and the two dimensions thereof:
“social” and “innovation”. Participants will obtain more information about the existing types of SI
Conclusions projects and their role.
If there are any difficulties in defining or conflicts in adopting a certain definition, you may leave
the question open in order to discover the concept during the learning process within the course.

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IDEATION EXERCISE

Obiectives Outlining and clarifying the project ideas they are going to develop within the course

Participants are asked to work by themselves to identify and outline a social innovation idea they
want to implement. They will describe:
- The general idea
- the target group
Introduction
- the domain
- the activity
- What is the social component?
- What is the innovation component?

Materials Colored sheets of paper, markers

Time 15 minutes

Participants will work by themselves by writing their ideas which are then presented in plenary.
1. If participants may subsequently work in groups, they will determine the common
elements in terms of “domain”, “target group” or the “activities” of their projects. A group will
Process
preferably have no more than 5 members.
2. If participants work by themselves, their ideas will be clarified and outlines with the help of
their peers.
• How did you consider this exercise?
• Is this the project idea you are going to work on during this course?
Processing
• Is the social component clear?
• Does your project idea have an innovative character?
This exercise aims to provide a clear starting point in the development of the social innovation
project.
Conclusions The project idea may be transformed as participants receive information during the course.
In case of group projects, attention must be paid to all participants’ agreement in terms of the
idea they will work on. This may be considered as an element within a learning exercise.

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DEFINING THE PROBLEM

Objectives Identification of the need/problem
Starting from the idea that the SI project answers the need of certain beneficiaries, community’s
need and implicitly participants’ need, we will first identify the common need of these entities.
For this purpose, each team will use VENN Diagram in order to identify and define the common
Introduction problem from which they start to develop this project.
Venn Diagram is a cognitive graphic organizer made up of at least two circles partially
overlapped. In the area where the circles overlap you will write the similarities, and in the free
areas you will write the dissimilarities between aspects, ideas or concepts.
Materials Flipchart sheets, markers
20 minutes – individual work
Time 30 minutes – Team Sharing
30 minutes – sharing and processing in plenary
Participants will work individually.. They will draw 3 concentric circles and identify the common
needs of the beneficiaries, the community and of them as future project coordinators.
Then, participants will share the results of this method in groups of 5. Groups may be made
Process
according to the domain of projects.
In the end, all participants will define in plenary a need/problem identified following this exercise.
VENN Diagrams may be posted on walls for their subsequent analysis by their peers.
• What is the problem that your social innovation project will solve/transform?
Processing
• Has the initial idea changed in any way?
This exercise will clarify and define the common need/problem of those involved (innovator,
community, beneficiaries).
Before developing the project idea, participants must have information about the seed from where
Conclusions
they start to develop their project.
Any other method for clarification may be used at this moment of the course (e.g. the problem
tree).

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BUSINESS MODEL CANVAS
Objectives Designing a general business plan
Business Model Canvas is a strategic entrepreneurial and management instrument. It is a practical
instrument facilitating understanding, debate, creativity and analysis.
Business Model Canvas is a starting model for the development of the new business models or for the
documentation of the existing ones. It is a visual plate with elements describing the value proposition,
Introduction
infrastructure, customers and company’s or product’s finances.
Participants are presented the BMC according to the explanatory sheet. They are invited to design the
project plan individually or in teams. We recommend writing your ideas on post-its in order to make
modifications during the course.
Materials Flipchart sheets, markers, post-its
45 min – individual/team work
Time
30 min – presentation in plenary
Participants work on their own BMC by writing their ideas on post-its. If BMC is completed by a team, the
members of this team have to debate on the ideas. Participants are reminded that this model is filled in
at first only in general terms and that they will improve and detail their ideas throughout the course when
Process they get more information.
If participants work by themselves, after the work period they will reunite in teams with the members
having a similar interest in order to present their BMCs. The questions asked in plenary will have a
clarifying role.
• How was the design process of your project plan?
• What new elements did you find out about your project?
Processing
• Which are the unclear aspects?
• Other clarifying questions
This exercise is essential for the Social Innovation course because it brings a general understanding of the
Conclusions main aspects that must be followed in such a project and opens the series of questions related to the topics
covered by this course (Marketing, Branding, financial administration etc.).

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PROBLEM TREE
1. Analysis of an existing situation
2. Identification of the key problems in context
Objectives
3. Visualization of problems in the form of diagrams/tree (cause-effect relation)
4. Turning problems into objectives
This instrument aims to identify a problem to solve or improve from which participants may start to identify
Introduction
solutions and an action plan for their future social innovation project.
Materials Colored sheets of paper, ball-point pens, felt pens
30 minutes – filling in the instrument
Time
30 minutes – introduction and processing
1.You start from the definition of problem, you must identify the major existing problems in a given
situation (brainstorming session), and you must pick up the main problem.
2.You must identify the direct and indirect causes of the problem, define the principal categories of possible
causes – for example, in the field of production we usually have the following categories of causes (“the
5 Ms”): workforce, methods, environment, machineries, and materials. The identification of all potential
causes will be carried out by using the brainstorming technique (real, possible, probable, potential causes).
3.In the upper part of the sheet you may identify the primary and secondary effects of this problem.
Process
After you have clarified this phase and answered all the questions participants may have regarding the
specificity of the problem, causes and effects identified, you will be explained how the problem tree may be
turned positively into the objective and solution tree.
1.Turn the problems classified in the problem tree into positive, desirable and achievable situations
2.Check the logic of the causality relation (means=> effects)
3.Rephrase, add or eliminate elements of the tree.
You will have to obtain a diagram similar to the one below.
• What is the problem that your social innovation project will solve/transform?
Processing • Has the initial idea changed in any way?
• Which are the project objectives and the estimated results of your project?
This instrument will clarify all the initial aspects that help you to design and achieve a project. It is one of
Conclusions
the most complete and broadest forms of analysis of the situation and identification of a solution.

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 PROBLEM TREE OBJECTIVE TREE

SIDE SIDE IMPACT IMPACT

EFFECT EFFECT

EFFECT EFFECT RESULT RESULT

EFFECTS
PROBLEM GOAL
CAUSES

CAUSE CAUSE CAUSE OBJECTIVE OBJECTIVE OBJECTIVE

INDIRECT INDIRECT ACTIVITIES ACTIVITIES

CAUSE CAUSE

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MARKETING & BRANDING

INTRODUCTION TO NONPROFIT MARKETING

Marketing is the way in which nonprofit entities establish the needs of their
customers and donors. Just like in the case of lucrative organizations, nonprofit
marketing includes publicity, promotion, public relations and customer relationship
management. This course analyses the way in which nonprofit entities use marketing
to make their mission public and to obtain contributions in time and money. The
course also discusses marketing planning within the nonprofit organization.

Theoretical material created by Roger Horam and Roxana Ghita, European

Development Innovation Network, Scotland

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 1.1. Definition and justification
Nonprofit marketing has been defined
as the use of marketing tactics to attain
the objectives and goals of nonprofit
organizations. Although publicity, public
relations and fund raising are examples
of nonprofit marketing tactics, nonprofit
marketing also includes a wide variety
of other activities. Information collecting
and processing to make decisions are
also components of nonprofit marketing.
Relationships with governments, committee
members, donor and volunteers make part
of nonprofit marketing.
The goal of marketing is to make the public
aware of a problem and to receive financial
support from the public for a certain cause.
In general, the “customer” gives money to
the organization for the chance to contribute
to its philanthropic activity. In some cases,
the nonprofit organization sells products
or services to sustain its social activity. Just
like in the case of lucrative marketing, the
result is that the firm keeps the funds, while
the person holds the piece of information
according to which the organization uses
his/her money to change the situation of
his/her cause.
A more practical definition of marketing that
suites nonprofit entities is the “fulfillment
of customers’ needs within organization’s
objectives”.
1.2. Marketing strategic planning for
nonprofit entities
Some people might think that nonprofit
entities do not need investments in
marketing strategies, but this even brings
advantages to an organization for it to sell
efficiently. Nonprofit entities use marketing
tactics to obtain economic growth, financing
and prosperity. Without these things, the
global mission of the nonprofit organization
is limited.
Target market
• Just like a lucrative company targets a
certain audience by its marketing, the
nonprofit organization must proceed in
the same way. Nonprofit organizations
need to create an image of the person
who will most probably support them in
their cause and to make promotion and
publicity materials for such target.
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Branding
It is vital for a nonprofit entity to have a brand.
The brand is usually a logo, a phrase, a
motto or an image identifying the group. The
aspect and content of al communications,
events, services, leadership, alliances or
organization’s headquarters illustrate the
brand of a nonprofit entity. The experiences
that customers have with the nonprofit
entities also lead to the global image of
the organization. The brand allows donors,
supporters and customers to remember,
to recognize and to trust the organization.
This separates the nonprofit entity from
the similar organizations through identity
building.
Offline practices
The normal marketing practices used by a
nonprofit organization include large or small
scale events, printed materials, alliances
and networking. Printed materials are very
important for educational and promotional
purposes. Events provide opportunities for
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fund raising in the nonprofit world, be that
a discrete auction or a banquet where five
dishes are served to hundreds of potential
donors. Making alliances with other
nonprofit entities creates a mass of people
that become aware of the group’s objectives
by simultaneously building the brand by
means of other philanthropists. Moreover,
networking is a highly efficient type of
marketing for nonprofit entities as people
may spread the word about organization’s
goals.
Public relations
Nonprofit entities bring advantages to
groups of people but they can be profitable
for community as well. For this reason, public
relations occupy a large part of marketing.
The local press must know the story of the
nonprofit entity and the new programmers
reaching the community. Nonprofit
entities must use newspaper accounts to
share statistics, to provide images and to
advertise the fund raising events and the
communication services. The nonprofit
entity must also rely on the media outlets
during events by inviting them directly. Local
media outlets must be on the address list
of a nonprofit entity for news bulletins and
other information messages.
Here is a detailed guide for the designing of
a marketing plan for your organization.
1. Summary
A complex summary of the marketing plan
as a whole and a paradox on paper: this is
the last section you should write, but it is
the first section that must exist in the final
report. We recommend the summary to be
as short as possible – only a few phrases
that may contain everything. While writing
it, you must know that you are going to
present it briefly. One you have finished it,
read it in a loud voice. If it takes you more
than ten seconds, this means you need to
cut it some more.
2. Problem
This section must contain a short description
of the services and/or products your
organization provides. Each description
shall include the objectives established for
such service/product separately. Stick to the
number and complexity of your objectives
to maximum three per service/product and
bear in mind that they must be concise,
measurable and quite easily attainable.
3. Situation analysis
This section contains an image of your
organization, the structure of stakeholders
and the market, in general.
3.1. Organization analysis
• Organization’s long and short-term
objectives
• The core of your organization (this
must concord with the mission and the
statements regarding your vision)
• Your organization’s culture analysis
• Organization’s strengths
• Organization’s weaknesses
• Organization’s local/regional/
national/international dimension
3.2. Stakeholders’ analysis
• Establish which special category of
stakeholders you analyse: they might be
beneficiaries, corporate donors, individual
donors, the government etc.
• Identify and estimate the number
of stakeholders/parties advantaged by
your organization/parties relevant to
organization
• Identify the demographic data for
stakeholders (age, social class, gender)
• Value promoters (what precisely of
your products and/or services brings real
“value” to stakeholders?)
3.3. Competition analysis
• Position on the market (are your
competitors fully involved on the market or
do they act only on certain segments? Is the
number of competitors low or high?)
• Strengths
• Weaknesses
• Market shares
3.4. Collaborators
People and organizations that are essential
for you to continue doing what you do:
branches, stores, partners, distributors,
suppliers, etc.
3.5. PEST analysis
• Political and legislative environment
(e.g. What are the specific governance
problems of your organization? Is the political
context favorable to your organization?)
• Economic environment
• Social and cultural environment
• Technological environment (e.g. Are
state-of-the-art technologies integrated
into your products/services? Have you
integrated new means of promotion of
your services/of collaboration with your
supporters/beneficiaries etc.?)
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3.6. SWOT analysis
• The internal strengths of your
organization (how does your unique
structure and/or team of employees to be
the best?)
• The internal weaknesses of your
organization (in what domains does your
unique structure and/or team of employees
have deficiencies?)
• External opportunities of your
organization (what could you take advantage
of for your progress?)
• External threats for your organization
(what could threaten the survival of your
organization if you are not careful?)
4. Market segmentation
Each market has its own different segments/
target audiences. Understanding relevant
segments for the services/products on the
market is important – they allow you to adjust
the “marketing mix” (the “4 P” discussed
below) to better adapt to the different needs
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of each segment/audience.
Segments must be measurable, accessible,
different from other segments as an answer
to a marketing mix, sustainable (not to
change permanently), sufficiently large to
generate income and homogenous.
The enumeration of segments in the
marketing plan must have a clear and
predictable form such as the one given
below:
Name of segment/audience:
• description
• percentage of the global revenue
this segment represents
• what precisely this segment wishes
and needs
• how this segment uses your service/
product
• what type of support this segment
must be provided
• the best ways of making publicity
and communicating with this segment
• keep repeating this until you think
you identified all major segments
5. Alternative marketing strategies
Write details about any alternative that you
or your team thought about before getting
to the current strategy. They may include the
elimination of a certain service or product,
the change of pricing for a service or product
(as the case may be) etc.
6. The marketing strategy selected
Explain the strategy that you and your team
elaborated and agreed upon. Why did you
choose this strategy? Why do you think it is
the best strategy for the near future? Once
you put it on paper, establish the 4P’s for
each service/product. Each of them must
have at its turn 4P’s. You may follow the
structure below:
Product/Service
• Branding/brand name
• Product’s expected quality
• Scope
• Warranty
• Packaging
Price (as the case may be)
• Current price
• Reductions
• Group offer
• Payment periods
• Lease options (as the case may be)
Location (distribution)
• Distribution channels (you sell this
service/product by yourself; you have
authorized an agency, etc.)
• Motivations regarding channels
(what margins should your contractors
expect, if any?)
• Criteria for contractors’ assessment
• Locations
• Logistics and supply chain
Promotion
• Publicity (what types? how much of
each type? what types of publicity channels
– TV, printed materials, online, etc. – are you
going to use?)
• Public relations
• Promotional programmes
• Budget, including profitability
threshold
• Estimated results for this promotional
programme (impact on of stakeholders’
loyalty, attraction of new supporters etc.)
7. Short and long-term projections
This section must include the income and
expenditure forecasts, the analysis of the
profitability threshold and the changes or
adjustments you estimate you are going to
do in future.
8. Conclusion
This is an enlarged version of the summary.
You must include all specific figures
(estimated costs, income, profit etc.).
1.3. Marketing mix design
Marketing mix is essential for the provision
of a new service, a campaign or a product
making the object of fund raising. It plays
a central role in the analysis of the existing
product so as to ensure the efficiency thereof.
The definition that many traders learn when
they enter the industry is:
Placing the right product in the right
place, for the right price, at the right
moment
In 1964 Neil Borden, a professor of
advertising at Harvard Business School, said
that making a product (asset, service, idea)
is the same as making a cake. Borden said
that the secret resides in making sure you
have all the necessary ingredients so that it
would be really good. He defined the four
essential elements for the marketing mix,
also called sometimes the ‘four P’:
Product
This means the product in itself, the quality,
characteristics and advantages it has. These
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must be defined from customer’s perspective
and you must have evidence that this is what
customers really want, not what you think
they need or should have.
Price
We are speaking about the price that the
customer needs to pay. Sometimes this
seems useless in the case of nonprofit
entities, but it is wrong. You may have prices
for membership fees, service charges,
products with a price for fund raising like
for instance “4 pounds will help a person
from India see again” or “5 pounds for a
Christmas card pack”. It is highly important
to determine the correct price.
Promotion
Product promotion is the way in which you
inform your customers that the product is
there, for example through advertising or
public relations.
Advertising is one of the most efficient ways,
but of course it may become expensive
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depending on the desired quantities.
Even the smallest nonprofit entity may be
advertised in the local newspapers. Do
not forget about the importance of verbal
advertising. It is known that 50% of client
recruiting is made by word of mouth.
Place
Place is where you distribute the product for
your customers. You may use a wide range
of “places” for the advertising activities. For
instance, for fund raising you used direct
mail, radio and press commercials, street
and door to door collections, dinners for
fund raising, the phone and face to face
promotion.
Many of these are useful in making your
campaign, but you can also use direct
actions such as taking banners to the town
hall and the organization of flash mobs or
more discrete methods such as petitions
and delegations.
As for services, you may deliver them at
home or directly to people’s houses, by mail
or e-mail, by using specialized paid staff or
trained volunteers, etc.
Three additional P’s for service
marketing
The four P’s represents a useful checklist
with the “things that need to be corrected”
for a physical object such as a wheelchair, an
adapted computer or a low-tech irrigation
system. In case of nonprofit entities, just
like for commercial economy, services
predominate.
Marketing researchers Booms and Bitner
added these additional P’s to the marketing
mix for services.
• People
People means knowledge, skills and the
value of the people providing the service,
but also the customers and the way in which
they interact, if the service is provided for a
group, such as an old people home.
The knowledge, skills and value of service
providers are essential for high quality. A
service is provided and consumed at the
same time, unlike physical objects whose
quality may be verified before getting to the
customer.
Your staff and volunteers need training
courses and authorization to modify the
service on the spot (within certain limits),
if customers’ expectations are not met.
If services are provided for groups, the
appurtenance of these groups must be
analysed. If the groups contain persons
having a wide range of needs, it is likely
that none of this may be met.
• Physical evidence
Physical evidence refers to the means used
to promote and operate the service, as for
example the quality of fliers, the aspect and
state of cleanliness of the rehabilitation
centre.
Services are quite abstract and it is difficult
for the customers to appreciate real quality.
Adequate physical evidence means to
make your customers think they receive a
high quality service. Poor physical evidence
will make them think that the service is
unsatisfactory, even if this is a good one.
For instance, it is difficult for the potential
customer to fancy that the service will
be good if the advertising flier is written,
designed and printed in a manner that
leaves much to be desired.
• Procedures
Procedures means the phases the customer
must go through like for instance how easy
it is to register for the respective service or
how easy they can pay for it, know about it
or get a vegetarian meal.
An example of adequate customer-based
procedure comes from RNIB Company,
one of the first charity organizations
that introduced credit card payments via
telephone. It is much easier for a blind
person to read the credit card number than
to listen to a tape recorded invoice and then
to write a cheque and mail the envelope.
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MODULE 2: INTRODUCTION TO
BRANDING
In this module we will present the definition
and importance of branding. This module
will help you understand what a brand is
and is not and how to use branding for your
advantage.
• What is branding?
• Why should social innovators invest
in the creation of a brand?
• Components of a successful brand
• What are the advantages of branding?
2.1. What is branding?
Branding means to express the truth or the
essential value of an organization, of a
product or service. It means to communicate
the characteristics, values and attributes that
clarify what a certain brand is and is not.
A brand will encourage anyone to buy a
product or directly support the sales or
marketing activities carried out, but the
brand does not explicitly say “buy me”.
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Instead, it says “This is me. If you agree, if
you like me, you can buy me, support me
and recommend me to your friends.”
Branding should precede and sustain any
marketing effort. Branding does not mean
to push but to pull.
2.2. Why should social innovators invest
in the creation of a brand?
The brands in the social sector are more
than logos on annual reports, they are
instruments that generate impact.
Brands should be in the social sector – as
they have been for a long time in the private
sector – a strategic asset to attain the desired
results. And this happens because brands
play a major role in behaviour orientation.
They have been designed as behavioral
devices so that the making of decisions
and the taking of measures should be
less difficult from the cognitive viewpoint
for the consumers. We make most of our
decisions in contexts where time is short
and information is incomplete. Making an
informed decision each time we buy cereals
would be something awful; instead, it is
easier to rely on a certain heuristic (“this
brand is more familiar to me”). In brief,
brands are a sort of shortcuts, and our brain
loves shortcuts.
Research studies have shown that:
• 53% of consumers would pay a 10%
bonus for a product manufactured in a
responsible manner.
• 92% of the Y generation thinks that
“business should be measured by more
things than just by profit” as compared to
71% of business leaders.
Thus, consumers care about ethics or the
social recommendation of a brand, but
only for products having a low degree of
differentiation – this is why the product
categories such as bottled water are
overwhelmed by brands related to charity.
On the contrary, in case of the very
specialized categories, such as electronic or
cosmetic products, social recommendations
matter very little for the final consumer
who buys on the basis of functionality and
efficiency. An important lesson for those
among us who promote social change is
the orientation towards adequate brands –
the fact of being ethical will produce more
tangible results for some products than for
others.
2.3. Components of a successful brand
Three components create a brand:
differentiation, credibility and sincerity. By
evaluating your organization’s strengths in
each domain, you may start to understand
how you can build, communicate and
transmit the value of your brand.
Differentiation
Even if it is tempting to turn passion
into action, first you need to make your
nonprofit entity differentiate from other
organizations carrying out the same activity.
The commoner is overwhelmed by demands
and they become confuse in relation to
what each organization does, therefore to
be different you must be very clear.
Start with your mission – is it easy for people to
understand what you do? Does your mission
inspire enough people in order to have a
large long-term sustainable support? Do
you have an achievable objective for success
that may attract people’s imagination?
For example, the praiseworthy ambition
to improve education offers few means to
measure success. On the other hand, “a
computer in every classroom” is an irresistible
promise that stirs people’s imagination and
makes them see your mission as fulfilled.
Credibility
Before somebody makes an online donation
or offers himself/herself as a volunteer, the
respective person must believe that your
organization has the capacity to keep its
promise. Your members and donors want to
know that you are trustworthy and that you
have solid managerial practices so that their
money may be put to good use, be that your
organization is rooted into a rich tradition
or new ideas or that it was set up as an
answer to some basic needs or the global
demand. The fact of having a strong board
of directors establishing the direction for
your organization and answering for results
represents a step in building credibility into
your nonprofit entity so that it may honour
its promise.
Sincerity
The third ingredient of an efficient brand is
to make people identify and care for your
cause. Successful organizations know they
must go beyond the support given by the
people who are directly affected by the
problem tormenting them so as to draw
a larger audience. By speaking honestly
about the challenges you may encounter
and the experience you have in solving
the problem, you make people trust your
organization and finally offer their time and
donate money.
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2.4. What are the advantages of good
branding?
A nonprofit entity without a brand might
manage itself in the world, which is quite
important – but a nonprofit entity with a
solid brand may manage itself even better
and may leave a sustainable image due to
the following factors:
Connectivity
A good brand connects the staff of an
organization, the committee members
and the basic thinkers to donors and the
community. It establishes the trust in the
exterior world and creates a string feeling of
harmonization between the internal values
of the brand and the way in which it behaves.
It builds a strong emotional connection with
donors, volunteers and those who work for
the nonprofit entity.
The emotional connection is much stronger
than a simple financial connection – imagine
each person of your address list involved
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into your news bulletin and everything
they might say. You want the community to
have the same strong feelings you have in
relation to your mission, and a good brand
is exactly what makes this thing possible.
Donors
It may bother you but the fact is that you
compete with other nonprofit entities for
donations and the people making them. At
the same time you compete for the attention
and emotional investment mentioned
above. A good brand presents exactly
what an organization does better than its
competitors. A strong brand allows donors
to see you not only as an important mission,
but also a strong group of united people
behind that mission. This proves them that
you mean more than words and intention –
you are a fully operational community with
objectives and concrete means to attain
them.
Pride
This may look superficial, but it not that way.
A good brand creates unite and a sense of
pride that makes your thinkers and workers
have better ideas and work more. It brings a
strong feeling of morality that reinforces the
fact that your mission is important and that
you are exactly the people necessary for the
fulfillment thereof. A good brand unifies the
mind, hands and heart for a noble purpose.
The people behind a nonprofit entity are
important, and a solid brand brings them
together behind the mission with a strong
feeling of pride.
“Brand” is not an ugly word when used
for nonprofit entities. Instead of being
something we frown at, a good and positive
brand may take a nonprofit entity to the
next level in the pursuit of its mission.
A brand is not a set of words and images – a
brand represents you, your mission and the
impact you hope you will have on the world.
2.5. What are some of the well-known
nonprofit brands?
What makes them be famous?
• The clear idea of what they are
• They are disciplined and focused
• They say interesting stories
• They are harmonized at internal and
external level
• Stakeholders have instruments and
transmission space
• They permanently fulfill or exceed
expectations
You may read about them here:
WWF: http://www.wwf.org.uk/
Amnesty International:
https://www.amnesty.org.uk/
Cancer Research UK:
http://www.cancerresearchuk.org/
2.6. How to design your brand
In this module we will present the procedure
for the design of a brand from market
analysis to brand design.
Market analysis
To develop a good brand, research is highly
important. You will have:
• To identify the target audience – who
are those we want to reach at? To start
designing a brand concept, first you must
look outside. The more you know about how
the target market behaves and the needs it
has, the better you may model your supply
to answer the requirements thereof.
• To analyse the current services – what
do the others in this sector do? You do not
want to set up a nonprofit organization
(NPO) only to compete with another one.
You must work in partnership in the third
sector so as to generate a major positive
impact.
Identify a unique feature of your brand
Find 3 main attributes that define your brand
such as ‘innovative’, ‘ethical’ and ‘honest’.
Write down a list of attributes describing
your organization and services and select 3
attributes that tightly harmonize with your
objectives and values, and the products/
services you are going to provide, and make
sure that they are relevant for the target
market.
Develop the brand idea
By using the 3 attributes you identified
above, you may develop the brand idea that
may reflect both the organization and the
target audience. You may use mood boards
to visualize you brand idea. A mood board
is an instrument helping you to situate your
brand idea on a visual level and to guide
the development thereof by not deviating
from the brand idea selected, once you
have started implementing the brand.
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The simplest way to create a mood board

is to use cutouts of images representing an
aspect of your brand in a certain way. The
completed mood board may also serve to
the creation of new ideas or brand changes
that you might have not discovered if you
had made the brand only in writing.
The next step in the elaboration of brand
idea is positioning. By means of the unique
attributes identified and the mood board as
a source of inspiration, now it is the time to
formulate your brand positioning. Positioning
represents both brand significance and
what it wishes to be. Any positioning must
equally refer to the emotional values and
the reasonable advantages of the brand.
Positioning must be made in 3 paragraphs
at most.
Here is one example of positioning made by
Greenpeace:
“Greenpeace exists because this fragile
Earth needs a voice. It needs solutions. It
needs change. It needs action. Donate!
Sign up! Get involved!”
Brand design
After having formulated the brand idea,
you may round into form your “story” and
build your graphic identity. This refers to the
elaboration of the Main message and Main
identity – the global aspect and your logo.
Give a name to our brand. Pick up a name that
reflects positioning, what differentiates you
and what creates an emotional connection
to the target audience. Design your brand
by using images, colours, symbols and
assemblies among other things. You may
wish to resort to a designer if you want your
logo be perfect from the very beginning.

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MODULE 3: INTRODUCTION TO SOCIAL
MEDIA
The dictionary definition is “websites and
applications allowing users to create and
share contents or to participate to social
networking”. Michelle Chmielewski from
Synthesio defines social media as being
“not only what does or says each of us, but
what we do or say together in the whole
world so as to communicate in all directions
at anytime via any possible (digital) means”.
Nonprofit organizations have become
more and more social in the last decade by
cultivating either a dedicated Facebook or
by opening ways with new networks such as
Snapchat.
Social media are useful to make new
online connections with people in order to
promote your brand and to discuss with
your community.
Social media represent an opportunity to
tell your story, to get into contact with your
supporters and to obtain results – what
means that there is no other time than
present to create or remake your strategy
regarding social media.
Specific Hashtag and by participation to
the online campaigns triggered by social
aspects
3. Identify your target audience
We recommend that nonprofit entities should
look for audience representatives that are
representations of your ideal supporters
based on a combination of demographic
data and information about the individual
members of the target audience.
To find out the demographic structure of the
current social media, you can use analyses
of the locals on platforms such as Twitter and
Facebook or you may use an instrument for
social media management. When you start
using a free trial version of Sprout Social
software and you connect your profiles,
the demographic data of the audience will
start to appear and you will see them on
the dashboard or you can export then in the
form of a report.
Immediately you know who is already
watching you online, you may try to talk to
offline supporters to get further information
about what interest them when they support
your cause.
You may create multiple persons that
represent supporters in different groups:
you must make up the base of volunteers,
the management and coordination group,
donors and others.
4. Select adequate networks
After having identified the target audience,
study the demographic data of the social
media to find out where they are active online
and focus your efforts on those networks. If
you have a limited period of time to surf the
social networks – and who does not have a
limited time – do not worry about adopting
any network coming up. Do an excellent
job on two or three networks having a high
potential to reach your audience instead of
doing a worse job on five networks.
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To give you an idea about the most
popular networks among nonprofit entities,
Facebook remains number 1 with 96% of
nonprofit communicators being in top three
social communication sites; Twitter and
YouTube occupy the second and third places,
according to the Report on communication
trends for nonprofit entities in 2015.
5. Elaborate a content strategy
When you elaborate a content strategy,
focus on telling stories that transmit your
message.
• What is to be shared
Start by analyzing the posts in the past
to see what went well and what types of
content makes the ones watching you to get
involved. Do not be afraid to ask supporters
what kind of stories they would like to see
from the part of your organization. You may
collect this information personally, via e-mail
survey or by questions asked via social media.
Develop content categories for the social
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media that you can repeat periodically, such
as volunteers’ spotlights, customers’ stories
and practical presentations.
• Types of content
From images and graphic materials to
short video presentations and texts, your
organization should have a variety of posts
on its networks. The visual content may
often trigger emotional attitudes in a way in
which words could not do it by themselves.
There is a multitude of free instruments for
the creation of images that may help you
create wonderful graphic materials and you
should not be afraid of retouching very well
each image. Taking photos and making
short video materials on your phone will
help you share special moments from events
and those types of posts may give the ones
watching you a relevant image from the
backstage of your organization.
Since each post does not require a link,
social media may be a useful tool for
guiding people towards your website, blog
or address list.
• Frequency of posts
Drawing up a calendar of the contents
posted via social media will help you plan
beforehand the posts made via social media.
6. Obtaining participation
You must build a road before being able to
travel to your destination. In our case, the
road represents the 4 basic strategies on
social media that your organization may use
in its initiatives regarding the social media.
They are the 4E’s of social media:
• Education – enriching the knowledge
of the target audience with information and
resources so that they may understand you
better.
• Entertainment – creation of funny,
attractive and memorable contents that
allow your audience to associate the
image or the message to your brand or
organization.
• Engagement – community’s
involvement through the recognition of the
presence and contributions thereof.
• Empowerment – authorizing the
target community to play an active role in
what you do.
Engagement must be a priority knowing
the limited period of time we can spend
on social networks. Answer the questions,
comments and posts addressed to your
organization and look for hashtags to see
the new conversations you may join in.
while your tone might be more formal in
terms of other markets, social media are a
very good instrument to cultivate a personal
voice of the brand that helps supporters feel
they are connected.
7. Monitoring and measuring your
results
From day one you must follow the activities
afferent to social media to make sure that
you are heading towards your objectives.
It is important that your initiative regarding
the social media have an adequate set of
indicators or measures that may tell you how
you are getting on at any moment. Nathan
Gilliatt from Social Target LLC classifies
measures into 4 distinct categories:
• Measuring public relations/media –
social media are considered as means that
help you get to your audience
• Measuring oral communications –
social media are seen as online interactions
between people.
• Web analysis – interested in people’s
use models both for audience and customers.
• Opinion research – use of online
opinions as the largest target group in the
world
3.2. UNICEF case study
Reading for home: UNICEF case study: Cum
foloseste o entitate nonprofit Facebook-ul
pentru a aduce schimbare.
http://savvypanda.com/blog/beginner-
level/unicef-case-study-how-a-nonprofit-
uses-facebook-to-drive-change.html
Other resources for trainers
IDEA framework for a nonprofit brand
http://ssir.org/articles/entry/the_role_of_
brand_in_the_nonprofit_sector
Basic elements of branding
h t t p : / / w w w. e n t r e p r e n e u r. c o m /
article/77408
Branding for nonprofit organization
http://www.pgresources.com/articles/
branding-for-the-nonpofit-organization/
Introduction to marketing
https://www.coursera.org/learn/wharton-
marketing
Free online courses on social media with
Hootsuite
https://hootsuite.com/en-gb/podium
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METHODOLOGY

MARKETING MIX
Objectives Designing an incipient marketing mix for the social innovation idea
After the input received from the Marketing expert, participants will have the theoretical
information to design the marketing mix by taking into account the following aspects:
• Product
• Price
• Promotion
• Location
Introduction
• People
• Physical proof
• Procedures
Therefore, participants will work by themselves or in teams to design this plan. The presentation
of a model and the discussion of the unclear elements of what the marketing mix means mat be
useful.
Materials Flipchart sheets, markers

Time 45 minutes – individually or in teams

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 Participants are given instructions and supplementary questions:
- What service do you provide? What product do you sell?
- What is the price that you will charge?
- How, where and when are you going to promote or advertise it?
- Where will you carry out your activity?
- How will you recruit and train the people, namely your staff?
Process - What physical proofs of quality will you have?
- What procedures will you elaborate to facilitate the management and the relationships with your
suppliers, funders, audience?
- What will be the philosophy that you will adopt?
After having completed this task, participants will present in plenary the results of their activity. Peers will
give feedback. It is ideal that the expert should be present in this phase in order to provide support and
informed feedback.
• How was the design process of the marketing mix?
Processing • Do you have any unclear elements in this phase?

This phase is necessary to understand the concept of marketing applied to the project idea. If time allows
Conclusions
it, participants may also work on the design of the marketing plan.

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BRANDING AND SOCIAL MEDIA

1. Application of the branding principles in the design of a logo for the project idea
Objectives
2. Understanding the principles of social innovation promotion in social media
After the input of the Branding specialist, participants will be given the task of designing a logo/
key message to promote their project. This logo may be drawn, created virtually or described.
Participants will also be asked to create a promotion message for the course they are participating
Introduction
to and of their own project idea to be transmitted in the online environment within this session.
The message will be associated to the logo or it will be independent, the envisaged result being
the observation and understanding of the promotion principles specific to the online environment.
Materials Paper sheets, crayons, felt pens, laptops/tablets/smart phones
1 hour –individual or team work
Time
30 minutes – online and in plenary feedback

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 After participants have designed their logo/key message to be sent via the social media, they will choose
their favorite channel (Facebook, Twitter, Snapchat etc.) and post it.
Process Peers will give their feedback and comments.
In the end, together with the Branding expert you will analyse participants’ designs and posts by following
the questions below.
• How was the logo design process? Do you need a specialist?
• How did you formulate your message?
Processing • What impact did it have within a short time interval?
• Who was the message for?
• What could you have done differently to be successful?
During this exercise, participants may become aware of the need for a brand design specialist for the
social innovation project and of the importance to have basic information in the field before resorting to an
expert.
Conclusions The use of social media in a professional manner may be an ideal form of promotion that may bring
success to your project.
At the end of the day participants may review the BMC after they have gathered new information and
awareness.

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LEGAL ADMINISTRATION

LEGAL FORMS – GENERAL PRESENTATION

You need to choose a legal form for your business. This form will define the legal
responsibilities, such as:
• what authorities you need to notify in terms of the existence of your company

• the taxes and social insurances you must pay

• the records and bookkeeping you must keep

• financial liability, if your company is in trouble

• the ways in which your company may obtain funds

• the way in which the management makes decision regarding the company

You may modify the legal form of your business after setting it up, if you consider
that another legal form suits you better.

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1. SETTING UP A LLC (LIMITED LIABILITY
COMPANY)
1. Reservation of the name
• You may choose 3 different names for
your company out of which you will
finally pick 1.
• Reservation is made at national level.
• It is valid for 90 days and may be
extended.
• It may be made over the counter or
on www.portal.onrc.ro and it is free of
charge.
2. CHOOSING THE SPACE
• The company needs a space where it
may establish its registered office.
• Once you have picked up the space,
you must conclude a commodatum
agreement/lease contract.
• Commodatum agreement - free of
charge
• Lease contract - there is a monthly rent
• If you do not have a registered office
yet, you may establish your office at a
lawyer’s office for a 1-year period.
•
3. CHOOSING YOUR BUSINESS
PARTNERS
• A LLC may have between 1 and 50
business partners (i.e. persons who belong
to the company)
• If you want to be a sole shareholder, you
can do that only in a company.
! Pay attention to the things recorded
on your tax offence record – if you
have any offences recorded on
your tax offence record you cannot
be a business partner.
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4. CHOOSING THE ADMINISTRATOR
• The administrator is the person represent-
ing the company in its relationship with the
persons that do not belong to it (authorities,
banks, trade partners etc.)
• You may have 1 or more administrators.
• The administrator may be one of the busi-
ness partners or a person completely alien
to the company.
5. STATEMENTS
• The business partners shall submit state-
ments showing that they meet the condi-
tions to be partners within the society.
• The administrator shall do the same.
• These statements must be certified by a
lawyer, legalized by a notary public or sub-
mitted to ONRC.
392
! If the administrator is also a
business partner, they will submit 2
statements.
6. SPECIMEN SIGNATURE
• The administrator shall give a specimen
signature before the notary public/ONRC.
7. DRAFTING THE MEMORANDUM OF
ASSOCIATION
• You must include here the NACE codes,
the shares, their distribution and the previ-
ous information.
• It may be signed by the business part-
ner(s), certified by the lawyer or drafted by
ONRC.
NACE codes represent a set of 4
figures showing the activities you
want to carry out in the company
– for instance: NACE code 5610:
Restaurants.
8. OPENING THE BANK ACCOUNT
• With the reservation of the name and the
memorandum of association in hand, the
administrator/business partners/authorized
person shall go to the bank to submit com-
pany’s share capital.
• The minimum share capital is 200 RON.
• Each share must have the minimum value
of 10 RON.
• 200 RON/10 RON = 20 shares (at least)
• Each business partner shall have at least
1 share.
9. COLLECTING ALL THE DOCUMENTS
• Collect all the documents above and all
the identity cards.
• Fill in the registration form, declaration
template 2, the fiscal vector and the petition
to ANAF for the registered office (you can
find them on www.onrc.ro).
• Put them into a file and number them in
the reverse order.
10. SUBMIT THE DOCUMENTS AT ONRC
• Take the file together with a copy of busi-
ness partners’ and administrators’ identity
cards and submit the documents at ONRC.
• Or you may submit them online, if you
have an electronic signature.
Particularities:
Space
• If several companies share the same
space, you need to give a non-overlapping
declaration before the notary public.
• Or you may divide the space into rooms.
• If you choose to establish your office for 1
year at a lawyer’s office, you cannot register
yourself as a VAT payer.
Neighbors’ agreement
• For setting up purposes you need neigh-
bors’ agreement, especially if you live in a
block of flats – there is a standard form.
• If the block of flats is not a lodgers’ asso-
ciation, you must give a statement in this
respect.
Business partners
• The sole shareholder may also be compa-
ny’s administrator.
• The administrator may be elected for a
limited or unlimited period of time.
• A sole shareholder in a company can no
longer be a sole shareholder in other com-
pany; they can be only regular sharehold-
ers.
! DO NOT forget to AUTHORIZE
the activities you want to carry out;
otherwise the revenues obtained
from them may be confiscated!
Time: 3 days since the submission of the
filled in documents at the Trade Register.
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SIP GUIDE RO
SETTING UP A SEP (SELF-EMPLOYED
PERSON)
SEPs are not companies but they are tightly
connected to the person setting them up who
must have certain qualities (certificates).
1. RESERVATION OF THE NAME
• You may choose 3 different names out of
which you will finally pick 1 – names will be
made up of the name of the person who
sets up the SEP (i.e. Gheorghe Popescu –
Self-Employed Person)
• Reservation is made at national level.
• It is valid for 90 days and may be extended.
• It may be made over the counter or on
www.portal.onrc.ro and it is free of charge.
394
2. CHOOSING THE SPACE
• The company needs a space where it may
establish its registered office.
• Once you have picked up the space, you
must conclude a commodatum agreement/
lease contract.
• Commodatum agreement - free of charge
• Lease contract - there is a monthly rent
! You CANNOT establish your
registered office at a lawyer’s office
for a 1-year period.
! You do not need neighbors’
agreement.
3. SPECIMEN SIGNATURE
• The Self-Employed Person must give
a specimen signature before the notary
public/ONRC.
Particularities
• Supporting documents attesting the
professional qualification of the person
in the respective field (certificates) may
be requested.
• Only the persons who are citizens of a
EU member state or SEE may set up SEPs.
• Time: 3 days since the submission of the
filled in documents at the Trade Register.
SETTING UP AN ASSOCIATION
1. RESERVATION OF THE NAME
• Reservation shall be made at the Ministry
of Justice.
• It is issued within 5 days since submission.
• It costs 36 lei and is valid for 6 months.
! The names of associations
containing the words “national”,
“Romanian” and other derivates
shall be approved beforehand
by the General Secretariat of the
Government, and the procedure
may last about 20 days.
! You cannot use names that may
remind us of authorities and public
institutions such as “guard”, “insti-
tution”, “commissariat”, “inspec-
torate”, “police”, “gendarmerie”
etc. or names related to judges,
prosecutors, notaries public etc.
2. CHOOSING THE SPACE
• The association needs a space where it
may establish its registered office.
• Once you have picked up the space, you
must conclude a commodatum agreement/
lease contract.
• Commodatum agreement - free of charge
• Lease contract - there is a monthly rent
! You CANNOT establish your
registered office at a lawyer’s office
for a 1-year period.
! If the commodatum agreement/
lease contract specifies that the
association does not carry out its
activity at that registered office, you
do not need neighbors’ agreement.
Otherwise, you must get neighbors’
agreement for setting up purposes.
3. CHOOSING THE FOUNDERS
• 3 individuals are necessary to set up an
association
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SIP GUIDE RO
4. DRAFTING THE DOCUMENTS
• You need to draft the statute and the
memorandum of association
• These will regulate the way in which your
association operates, its vision and the goal
for which it has been set up
• These documents shall mandatorily be
certified by a lawyer or authenticated by a
notary public
5. PATRIMONY
• With the reservation of the name, the
memorandum of association and the stat-
ute in hand, the president/founder/autho-
rized person shall go to the bank to submit
Association’s patrimony.
• This shall be at least 200 LEI.
396
6. TAX OFFENCE RECORDS in 30 days since the setting up
Time: about 40-60 days.
• Founders must be “clean” Costs: about 500 lei (without lawyer’s hon-
orary pay)
• They are valid for 30 days since the date
of issue.
• They may be obtained immediately from
any ANAF branch.
Varia
• The setting up of an association keeps to
the competence of the first instance court
where association’s office is.
• After the court has ruled on the setting
up of the association, you must legalize the
hearing report (at least 4) and the certificate
of registration in R.A.F. (register of associa-
tions and foundations).
• Do not forget that you must get the C.I.F.
(tax registration certificate) from ANAF with-
SOCIAL ECONOMY
Social economy (also called “joint econo-
my” or “the third sector”) has developed out
of the need to find innovatory solutions to
some social, economic or environmental is-
sues of the communities and to answer the
needs of the community members that are
ignored or insufficiently covered by the pub-
lic or private sector.
Social economy includes diverse organisa-
tion and/or legal forms such as coopera-
tives, mutual benefit societies, associations,
foundations, etc.
although there are differences from one
country to another, all over the European
Union there are comparable entities having
the same characteristics, even if they are
not described as making part of the “social
economy” and are not legally regulated in
all member states.
The main goal of the social economy, as
compared to the goal of the market econ-
omy, is not the obtaining of profit, but the
improvement of the life standard and the
provision of new opportunities to the disad-
vantaged people or the ones belonging to
vulnerable categories.
Social economy gives priority to an enter-
prise model (social economy enterprise)*
that is not characterized by sizes or the sec-
tors where it carries out its activity, but by
the observance of some common values
among which:
• the supremacy of participation of the so-
cial actors, the person and the social objec-
tives over the share capital;
• the defense and implementation of the
solidarity and accountability principles;
• the communion between the interests of
members and the general interest;
• the democratic control exercised by the
organization/enterprise members;
• voluntary and open adhesion;
• management autonomy and indepen-
dence in relation to the public authorities;
• allocation of the largest part of surplus to
attain the objectives of sustainable develop-
ment and provisions of services to the mem-
bers in accordance with the general interest.
Social economy enterprises also play an im-
portant role in the support of the objectives
established by governmental policies as fol-
lows:
• they help increase productivity and com-
petitiveness;
• they contribute to the development of an
inclusive and participative society;
• they encourage and authorize the com-
munity members to participate to the solv-
ing of some local problems;
•they offer a new way of public service pro-
vision.
•they offer a new way of public service pro-
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SIP GUIDE RO

Law no. 219/2015 published in the

Official Journal no. 561/2015 defines
social economy as the activities organized
SECTOR PUBLIC independently from the public sector
Public sector – owned whose goal is to serve the general interest,
and/or administered by
the state, local, county,
the interests of a collectivity and/or non-

PR
regional, national or patrimonial personal interests through the

O
increase of employment of the individuals

FIT
belonging to vulnerable groups and/or

AN
ITY

the production and supply of goods, the

provision of services and/or the execution
L

D
UA

of works.

EF
EQ

Social economy relies on the private

FIC
volunteer and joint initiative, with a high

IEN
level of autonomy and accountability, as

CY
well as the limited distribution of profit to
associates.

Social enterprises accepted under the

SOCIAL ECONOMY PRIVATE SECTOR
cooperatives, mutual benefit trading companies – owned
societies, associations, by one or more shareholders
foundations (multinational companies,
large companies, SMEs)
law may be 1st level cooperative societies,
credit unions, associations and foundations,
mutual benefit societies for employees,
mutual benefit societies for the retired
persons, agricultural companies, and any

RECIPROCITY AND SOLIDARITY

398
other categories of legal persons that
comply, according to the legal setting up and
organization documents, with the definition
and principles of social economy provided
in this law.
Central and local public administration
authorities may, under the law, support the
social economy activities by:
• recognizing the role of social enterprises
through the granting of the social enterprise
certificate ;
• recognizing the role of the social
enterprises for social inclusion through the
granting of the social marker;
• the development of mechanisms for
the support of social enterprises for social
inclusion;
• the promotion and support of the human
resource development in the field of social
economy;
• participating to social economy activities
through collaboration in different forms,
under the law;
• the setting up of information and
counseling centres in the field of social
economy.
Social enterprise
The statute of social enterprise is recognized
though the granting of a social enterprise
certificate on request of the entitled legal
persons on the basis of the setting up and
operation documents.
The certificate is granted to those social
enterprises which:
• operate for a social goal and/or to the
general interest of the community;
• allocate at least 90% of their profit to the
social goal and the statutory reserve;
• undertake to deliver the assets left
following liquidation to one or more social
enterprises;
• apply the social equity principle in relation
to employees thus providing equitable
payment levels between which differences
exceeding the 1 to 8 ratio cannot exist.
The certificate is issued by the County
employment agency, and by that of the
municipality of Bucharest, respectively
through the social economy department.
The certificate is issued for a 5-year period
with the possibility of extension, if they bring
evidence that the conditions that lay at the
bottom of granting thereof are met.
Social enterprise for social inclusion
The social enterprise for social inclusion
is the social enterprise that:
• permanently has at least 30% of its
employer personnel belonging to vulnerable
groups, so that the cumulated work time of
these employees should represent at least
30% of the entire work time of all employees;
• aims to fight against exclusion,
discriminations and unemployment through
the socio-professional inclusion of the
disfavored persons.
The social enterprises for social inclusion
shall provide accompanying measures for
the employees belonging to vulnerable
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SIP GUIDE RO
Accompanying measures may be the
provision of information, counseling, and
the access to professional training forms,
the adaptation of the workplace to person’s
capacity, rendering the workplace accessible
according to individual’s needs as well as
other measures that may support the social
and professional inclusion.
To provide the accompanying measures,
social enterprises for social inclusion
collaborate with the social service public
agencies at county and local level,
the employment agencies, the centres
providing integrated services of medical,
psychological and social support for drug
consumers and drug addicts, with specialists
in fields such as psychology, social care,
addictions, pedagogy, professional training,
employment, medicine, labour medicine,
and social economy.
Social marker
The statute of social enterprise for social
inclusion is certified through the granting
400
of the social marker comprising the
certificate attesting the statute of social
enterprise for social inclusion valid for 3
years since the date of issue, as well as a
specific element of visual identity that must
be applied to all the products made or the
works executed or the documents attesting
the provision of a service. The social
enterprises for social inclusion may obtain
their social marker and register in the Social
enterprise register free of charge.
The procedures for certification and
granting of the social marker, of the specific
element of visual identity, and the procedures
regarding the drafting of the Annual social
report on the activity carried out as well as
the conditions for suspension, withdrawal
or cancellation of the social marker are
regulated by the methodological norms for
the implementation of this law.
Financing the social enterprises for
social inclusion
Social enterprises for social inclusion may
take part in the public procurement
offers in special conditions that follow the
obtaining of some effects of social order
that must be achieved by the economic
operators to fulfill the contract.
Social enterprises for social inclusion may,
under the law, enjoy of the following
facilities from the part of the local public
administration authorities:
• allocation of spaces and/or lands
belonging to the public property of the
administrative-territorial units/subdivisions,
in compliance with the provisions of the Law
of local public administration no. 215/2001,
as republished with the subsequent
amendments and supplementations, for the
carrying out of the activities for which the
social marker was granted;
• support for the promotion of the products
manufactured and/or supplied, the services
provided or the works executed within the
community as well as the identification of up and development of microenterprises
some market for the sale thereof; in the field of social economy.
• support for the promotion of tourism and
the activities related to it through the putting http://legestart.ro/ce-retinem-din-legea-
of the local historical and cultural patrimony economiei-sociale-privind-intreprinderile-
to good use; sociale/
• other facilities and tax exemptions granted
by the local public administration authorities
under the law.
Social enterprises for social inclusion
employing young people facing the risk
of social marginalization are considered
as employers for social inclusion and they
enjoy the facilities provided by the Law no.
76/2002 for this category of employers.
Social enterprises for social inclusion
may enjoy support measures such as
the state aid that will be approved by
specific documents, in compliance with the
community and national provisions in terms
of state aid.
Social enterprises and social enterprises for
social inclusion may benefit each year from
the programme stimulating the setting

401
SIP GUIDE RO
FINANCIAL ADMINISTRATION
FINANCIAL MANAGEMENT OF THE
ENTERPRISE
Here are some detailed information
regarding a range of financial and
commercial issues, including the financial
liabilities of charity organization, and how to
plan your business as profitably as possible.
• Bank accounts – there are many thinks to
take into consideration when choosing a
bank account;
• Accounting and financial reporting for
a charity organization – discover the
best approach for bookkeeping and
reporting, when you do need an auditor
and many others;
• Taxes & VAT – important information
related to VAT, corporate tax, surplus tax,
local taxes, professional rates and many
402
others. We will also give other relevant
information sources;
• Commercial planning – this must be the
central activity of the board of directors
or administrators, and your organization
will see the advantages of a clear
planning and identification of objectives;
• Organizational development – is the
name given to the interventions that want
to support progress and transformation
of an organization, like for instance
quality and performance improvement;
• Transactions – transactions represent
an important source of financing for the
third sector, but they may expose your
organization to risks. Before making
a decision to trade you must answer
a number of questions and receive
guidance.
BANK ACCOUNTS
One of the most important decision
factors when we open an account is the
COST. We must know there are fixed
costs (management commission, etc.) and
variable costs that differ according to the
volume of activity we have. We must be
aware of the commission charged by the
bank for the receipts we have, the payments
we make, the cash withdrawals etc.
Another equally important aspect is the
safety provided by the bank. Thus, you must
pay attention to certain elements such as
bank’s share capital, the deposit portfolio,
bank’s place in the bank ranking, etc.
 Other details such as bank’s coverage
area or the response time to problems
etc. must also be taken into consideration.
Accounting and financial reporting
Accounting and financial reporting or a
company’s financial statements consist in:
• balance sheet;
• profit and loss account;
• informative data;
• non-current assets situation.
They reflect company’s half-year or annual
activity.
The deadline for the submission of financial
statements since the closure of the fiscal relaxed taxation, a NGO’s reporting must
year shall be: be treated carefully and seriously. Having a
shorter deadline for submission than a LLC/
• 120 days for a NGO; JSC, the documents must also be filled in
and signed by a chartered accountant.
• 150 days for a LLC or LLC-D.
Mention must be made of the fact that a SEP
Financial statements rely on the trial balance does not need to submit a balance sheet.
and they must reflect company’s real image.
In these financial statements interested
parties (such as potential investors,
creditors, employees etc.) may find out the
most important details about the economic
situation of a company, its solvability,
information related to turnover, company’s
debts as well as details about patrimony
and its liability limit before the third parties.
Although from the viewpoint of reporting
to state’s authorities a NGO enjoys a more
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SIP GUIDE RO
TAXES & VAT
When setting up a company, be it a NGO,
LLC, LLC-D, or SEP etc., we must be ware
that there will be taxes and charges we will
have to pay to the state budget or the social
security budget.
Thus, according to the type of activity and
the manner of setting up of the entity, there
are taxes and charges as follows:
• value added tax (VAT);
• corporate tax;
• tax on microenterprises’ income and
wages contributions.
These may be found in the Law 227 / 2015
on the tax code.
VAT – in an indirect charge.
The standard VAT rate is 20%.
The reduced rate of 9% shall apply to
activities such as the accommodation
in hotels, the delivery of fertilizers and
pesticides in agriculture, bakery products
etc.
404
There are also activities that are exempted
from VAT payment.
Among these there are the medical services,
the oral care services, private lessons,
provision of services/delivery of products
related to child protection.
In terms of calculation, VAT value shall be
applied to the value of the product or service
purchased.
EXAMPLE:
A product or a service in amount of 1,000 lei
(having a VAT rate of 20%) will have a VAT of
200 lei (20% of 1,000 lei), and we will pay
the provider 1,200 lei or charge a customer
with the sum of 1,200 lei. Of course the 200
lei do not belong to the person collecting it
and, after having deduced the VAT we pay
to our partners, there will result a VAT that
we will pay to the state budget.
Mention must be made of the fact that
regardless of the type of activity, a company
may carry out its activity without paying VAT
until the company has a turnover of 65,000
Euros in a fiscal year (the equivalent of
220,000 lei).
Tax on microenterprises’ income
The tax rate for microenterprises shall be:
• 3% (if the company has no employee);
• 2% (if the company has 1 employee);
• 1% (if the company has 2 or more
employees).
An employee is a person with whom the
company has concluded a Contract of
Employment (CIM) and who works for 8
hours/day.
The conditions for the reduced taxation
rates (2% and 1%) shall also be considered
as met if the company has concluded part-
time CIMs and if the fractions cumulated by
them represent the equivalent of a full-time
job.
The conditions that an entity must meet so
as to be considered a microenterprise are:
• Turnover lower than 100,000 Euros
in a fiscal year – companies having a
turnover higher than 100,000 Euros
shall pay corporate tax ever since the
quarter when they start exceeding this
threshold;
• Activities performed by it shall not include
activities in domains such as banking,
insurances or reinsurances or in the field
of gambling.
• Tax base in case of microenterprises
is represented by all income out of
which they will deduce the income
from subsidies, the income from the
production of tangible and intangible
assets, the income related to the costs
of product stocks, the income from
compensations received from insurance-
reinsurance companies etc.
The deadline for the recognition and
payment of microenterprise tax shall be
April 24th (for the period 25.01 – 31.03),
July 25th (for the period 01.04 – 30.06),
October 25th (for the period 01.07 – 30.09)
and January 25th N+1 (for the period 01.10
– 31.12.).
Corporate tax – the unique corporate
tax is 16%.
The tax base is represented by all taxable
income out of which deductible expenses
shall be deduced.
The deadline for the recognition and
payment of corporate tax differs from the
deadline for the recognition and payment of
microenterprise tax in the 4th quarter. Thus,
corporate tax shall be recognized and paid
on April 24th (for the period 25.01 – 31.03),
July 25th (for the period 01.04 – 30.06),
October 25th (for the period 01.07 – 30.09)
and March 25th N+1 (for the period 01.10
– 31.12.).
A company that no longer meets the
condition for the corporate tax payment
(its revenues in a fiscal year are lower than
100,000 Euros) shall pay microenterprise
tax starting from the year following the year
when it no longer meets the conditions.
In case of a SEP (CIP, private medical practice,
independent self-employed person, sole
proprietorship fall into the same category),
we must mention the following aspects:
The tax regime for a SEP may take the form
of income tax bracket for self-employment
income or actual income system. If you chose
the income tax bracket for self-employment
income, you must know that the tax base
for social security contributions (CAS), and
health social security contributions (CASS)
and corporate tax shall be according to the
income tax bracket for self-employment
income established by ANAF;
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SIP GUIDE RO
The tax base shall not change regardless of
the income obtained;
If in one year, a SEP has, in the actual income
system, income higher than 100,000 Euros,
they will have to register in the actual
income system;
If you choose the actual income system, the
tax base is made up of the taxable income
out of which the deductible expenses shall
be deduced and the same taxation rates
shall be applied (CAS 10.5% or 26.3%,
CASS 5.5% and 16% tax)
The conditions for registration for VAT
purposes are the same as those for a LLC;
A SEP may have employees just like a LLC
and they will pay the same contributions,
while the expenses generated by employees
shall be considered as deductible expenses
in the calculation of contributions.
406
COMMERCIAL PLANNING
At the beginning of each year an Income and
Expenditure Budget (IEB) must be created.
It must rely on the contracts in progress,
pre-contracts, and promises of contracts etc.
and on company’s fixed expenses together
with overheads and the expenses estimated
to obtain the forecast income.
In extraordinary situations such as legislative
modifications, unforeseen expenses etc.,
the Income and Expenditure Budget may
be amended in the General Meeting of
Shareholders.
LEGISLATION AND REGULATION
What legal procedures and authorizations
must you be aware of when you run a social
innovation organization?
• Fire prevention and extinction – the law
on fire prevention and extinction makes
those who manage precincts responsible
for fire risk assessment
• Music and film licenses – if you or the
persons who use the provided equipment
use music for the benefit of customers,
visitors or staff, you must obtain a consent
from the copyright holders in question
• Authorization for the building – if you
want to serve alcoholic drinks, food
or provide entertainment, you must
contact the local authority to obtain an
authorization for the building
• Food hygiene and catering – how to
provide food to the town hall of a village
or to other location within the community
• Health and safety – it is the responsibility
of the volunteer management committee
to guarantee the health and safety of
employees, volunteers and visitors
• Law on freedom of information – freedom
of information is a valuable resource for
the volunteering sector
• Data protection – if you own or process
 information about your customers,
employees or suppliers , you must protect
such information under the law
GOOD GOVERNANCE
Your administrators have a key role in
your organization. They need to supervise
and take responsibility for everything your
organization does. To be an administrator
means to have a major role and no one
should assume this without being aware of
what it involves.
• Roles and responsibilities – information
about who may be an administrator and
what this means. Find out information
about joint liability, individual liability
and the difference between governance
and management.
• Recruiting and initiation – make
sure you know what the recruiting of
administrators involves as this will impact
your entire organization. Once you have
found them, make sure they are given a
good introduction and a comprehensive
initiation.
• Meetings – holding efficient and
efficacious meetings will help your
organization attain its objectives. Find
out how to make an agenda, how to
draw up minutes and how to make sure
that your administrators follow a conduct
code.
• Board’s evolution – your administrators
must evolve and adapt continuously. To
develop their skills in solving problems
and to ensure a long-term future, you
must invest in the training and evolution
of your administrators.
• Jargon elimination – clear descriptions
made up of common words and phrases
regarding governance.
• Mediation of the third sector – do not let
things to get out of control, ask for help
to nip conflicts in the bud
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SIP GUIDE RO

SOCIAL IMPACT

TABLE OF CONTENTS

1. Definitions, concepts

2. Why do we need impact?

3. Why is impact important for a social enterprise?

4. When does social impact appear? [Canvas pre-model, during, at the

end, follow-up]

5. Impact measurement - studies/ instruments / accounting and audit

6. Examples of measured and demonstrated impact – Rotterdam

408
1. DEFINITIONS, CONCEPTS
In case of a social economy structure or en-
tity practicing social entrepreneurship, to
have an impact on the community means
that the focus should fall on the social com-
ponent of the business more than on the
obtaining of profit for associates or found-
ing members.
The social component may vary accord-
ing to business type be that the integra-
tion of some persons belonging to vulner-
able groups into the labour market or the
efficient use of resources of a community
to help it self-support. A social economy
structure largely has the important role of
creating added value where the possibility
of its existence or the connection of prom-
ising needs with the generation of innovat-
ing solutions and sustainable social systems
was denied.
Regardless of domain – education, envi-
ronment, art and culture, community de-
velopment etc. – social economy means the
implementation of an innovating business
system that may create a supply for the
market segment where demand is not met,
be that from lack of interest or the incapac-
ity of the already existing public and private
institutions to generate adequate solutions
to the identified needs. The innovating busi-
ness model should aim at both social impact
objectives and financial sustainability.
When we speak of social impact we mainly
think of the added value brought by the so-
cial economy structure (in any of its forms)
to the community and/or the vulnerable
groups involved in the development thereof,
especially to their level of inclusion on the
labour market, their efficiency at workplace,
and the level of professional training etc. as
for the exact definition of social impact, the
process is quite difficult if we take into con-
sideration that the concepts of “social entre-
preneurship”or “social economy” are hard
to define precisely, but yet they have one
common element, namely “innovation”.
“Social impact includes all social and cultur-
al consequences on the population that the
actions in the private or public sector have
and which affect the way in which people
live, work, play, communicate with each
other, organize to accomplish their needs
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and, generally, integrate as members within
the society” [Burdge & Vanclay, 1995]. If we
take into consideration this definition, we
may understand that the words “social im-
pact” or “creation of social value” are often
interchangeable and are used in this context
with the same significance by the specialists
in the field of social businesses.
Most methods for the measurement of so-
cial impact may be applied to the enterpris-
es that focus on the integration into work
(WISEs - work integration social enterprise).
The most detailed definition of this type of
organization is given by Devister in 2004 –
“WISE are the autonomous economic enti-
ties whose main objectives are professional
integration – into the organization itself or in
other types of structures – of some individu-
als having difficulties in the labour market.
This integration is attained by rendering the
activity efficient and customized follow-up
and equally customized interventions or by
training programmes for the qualification
410
and requalification of workforce.” This ex-
planation is the one taken into consideration
when choosing the methods for assessment
and measurement of the social impact.
As for the definition of the “professional in-
tegration” concept, specialists in the field
identify 4 integration variants by using the
work integration social structures – a tran-
sitional job, the creation of self-sustainable
and permanent jobs, professional integra-
tion into permanent structures and social-
ization by means of a productive and per-
manent activity. The fourth variant is also
considered as the most relevant for the
integration process as it lays stress on the
results relating to social inclusion and in-
tegration outside the workplace where the
professional activities are a means of inter-
communication or a catalyst. This element
is essential when speaking about the social
impact attained by a work integration social
enterprise which should exceed the limited
borders of professional integration.
2. WHY DO WE NEED IMPACT?
The need to measure impact emerged when
the private or public organizations that were
keeping the place of government or were
completing activities for it generated by
their actions a change in beneficiaries’ life –
a healthier life style, a job, the improvement
of life quality or environment, economic de-
velopment within the community etc. impact
shows its benefits upon a comparative anal-
ysis before and after the implementation of
some actions and the obtaining of some re-
sults in the community that become visible
and are even taken over by other communi-
ties. Moreover, the process of having a mea-
surable and demonstrated social impact in
a community generates creative solutions,
the real identification of the needs of the ac-
tors in the community, realistic actions con-
nected to the reality of the community un-
der analysis or of the target group involved.
3. WHY IS IMPACT IMPORTANT FOR A
SOCIAL ENTERPRISE?
If we take into consideration the financial
element, we can say, after a short analysis,
that the integration of a vulnerable person
into the labour market meaning profession-
al training (qualification or requalification),
financial aid, moral aid, assistance accord-
ing to the vulnerability he/she is coping with
etc. may “cost” me more that carrying out
an economic activity without social implica-
tions such as the inclusion into the labour
market. For this reason, if I am carrying out
or I intend to develop a social business, first
I must take into account the social compo-
nent and what the value added I bring to
beneficiaries or the target group that I in-
volve into the activity is. Moreover, the part
of profit, the turnover must be the means
by which I manage to attain the social ob-
jectives proposed, be that the grouping of
community resources or the insertion into
the labour market. What happens in the
social structure affects the community pos-
itively or negatively, creates a learning ex-
perience for all those involved, but it must
be also sustainable, and here the financial
part has its say – permanent investment or
self-support following the economic activi-
ties implemented.
4. WHEN DOES SOCIAL IMPACT
APPEAR? [CANVAS PRE-MODEL,
DURING, AT THE END, FOLLOW-UP]
Social impact may be estimated when de-
signing the business plan and analyzing the
business models and work structures for
the development thereof that may highlight
the social component and the change such
business proposes for the respective com-
munity and in the life of the beneficiaries
belonging to vulnerable groups.
Business model examples: the social Busi-
ness model Canvas.
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IDEATION & BUSINESS MODEL CANVAS

SOCIAL VENTURE

IMPLEMENTATION SOCIAL VALUE MARKET

PROPOSITION
PARTNERS DELIVERY WHAT DIFFERENCE ARE YOU CUSTOMER MACRO ECONOMIC
Who helps you to deliver What activities do you MAKING SEGMENTS ENVIRONMENT
your activities? do?
What resources do you
own?

SALES AND MARKETING COMPETITORS

WHAT SOCIAL IMPACT MEASURES
DO YOU USE

FINANCE

COST OF DELIVERY WHAT SOCIAL IMPACT REVENUE STREAMS

MEASURES DO YOU USE

BASED ON FRAMEWORK OF YOUNGFOUNDATION AND BUSINESS MODEL CANVAS

412
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SOCIAL VENTURE

RESOURCES SOCIAL VALUE TRANSACTIONS

CORE PRODUCTS/SERICES VISION BENEFICIARIES

What are the main products and/or
services? How do they create
change?
CORE CAPABILITIES
What are the capabilities that make
this possible?
PARTNERS
Who else is involved?
What is the change you want to see
in the world?
MISSION
What do you do to create this
change?
How do you measure your impact?
Who benefits from your offerings?
How?
CUSTOMERS
Who pays for your offerings?
COMPETITORS
Who else targets the same
beneficiaries and/or customers?
DISTRIBUTION
How do you make your offerings
available?

COST ECONOMIC VALUE REVENUE

How much does it cost to deliver What are your sources of revenue?
your offerings? How will you use the
surplus?

414
During the business launch, impact may ap-
pear in the form of change that you may
notice in the individuals from the vulnerable
environment involved or the community in
itself – through population’s life quality and
a very low impact on the pollution of the
environment. A realistic analysis during the
initial process of development of the social
venture may give you information very close
to reality and increase the viability level of
the business.
As you implement measures, you develop
the product or provide the service specific
to your social venture, you may also see the
way in which it is received and the reactions
of the community and customers and of
those involved into the production process.
In this phase, which is not meant to have
a limited period of time, you may take one
step backwards and analyse the way in
which the product or service may be devel-
oped, and here intervenes the innovation
required in the entrepreneurship sector,
and how it may be promoted as efficiently
as possible according to the responses reg-
istered until then.
For the non-governmental sector where so-
cial economy structures without a distinct
legal personality but only the economic ac-
tivity within a non-profit organization have
developed, the social dimension is the one
aimed at by the simple manner in which the
non-profit system developed and where the
social goal becomes a more important. So-
cial impact is the one sought after by im-
plementers from the very beginning, and in
this type of process importance falls on the
way in which the social component may be
supported on and on without external inter-
ventions – sustainability.
For the projects with European funds where
the financing is granted only for a limited
period of time and within which integration
social structures have developed, you may
also take into account a follow-up phase
and analyse comparatively the manner in
which the business and the integration so-
cial structure, respectively is evolving during
financing versus after the end of financing,
in the period of sustainability and outside it.
To generate impact in any of the phases
mentioned above, it is important to clari-
fy the product or service provided and the
benefits that any of them brings to the com-
munity or the target group, and above all
the promotion thereof through a clear mes-
sage that may highlight the “story” of the
product or service which may generate an
impact on customers and influence the way
in which the customer sees what they are
offered and the amount they are ready to
“invest” into the purchase process.
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5. IMPACT MEASUREMENT – STUDIES/
INSTRUMENTS/ACCOUNTING AND
AUDIT
Short history regarding the method to mea-
sure impact
Two trends have been identified over the
years in measuring impact – the component
of social accounting and audit and the com-
ponent dedicated to the impact social anal-
ysis.
Social accounting and audit - SAA is the most
frequently used nowadays and it comes un-
der different forms – social audit, corporate
social reporting or responsible social ac-
counting, according to the way in which it
is interpreted. A definition proposed by Rob
Gray or SAA is: “gathering an image about
activities and social behavior, environment,
employees, community, customers and their
interactions with other actors, where possi-
ble, the consequences of these interactions
and activities. Social account may contain
financial information, but most often it may
416
be a descriptive combination of measurable
and non-measurable [or qualitative] finan-
cial and non-financial information” (2000).
The fields identified so far as being targeted
by the business environment as being re-
sponsible are the economic field, the social
field and the environment. Thus, these do-
mains should be targeted by al businesses
in order to have a more sustainable devel-
opment accepted by the community. For
this reason, economic development, social
development and environment protection
were also identified at the 2005 UN Sum-
mit.
In 2013 they wanted to expand domains
but SAA is still being used globally and this
approach is supported by organizations
such as Social Audit Network (San set up in
2000), which has lost some of its popularity
when it proposed an instrument to measure
impact such as the “Social Return On Invest-
ment (SROI)”- Pearce & Kay, 2012.
Social impact assessment – International As-
sociation for Social Impact Assessment (SIA)
defines this process as the sum of “assess-
ment, monitoring and management pro-
cesses of the intentional and unintentional
consequences, both negative and positive,
of planned interventions (policies, pro-
grammes, plans and projects) and any other
social change processes resulted following
such interventions” (2010). While working
on the SROI process mentioned above, Em-
erson militated for a holistic approach for
value creation by promoting the concept of
“blended value proposition” which might
have as its core element the idea that so-
cial impact and social value should not be
separated from economic recovery and the
sustainability generated by an activity or an
investment. In exchange, these should be
integrated into a single project or initiative.
 Inputs Activity Outputs Outcomes Goal Alignment

What is put into Venture’s Results that can Changes to Activity and goal
the venture primary activity be measured social systems adjustments

What would
have happened
anyway

Impact

Figure 1: the impact value chain (adapted from Clark et al., 2004)

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The figure above shows the manner in
which the impact within a project or initia-
tive should be interpreted, even if this pro-
cess is a business one. What is important is
the analysis of the entity affected by impact
– community, customers, the firm itself, the
work method etc.
Other instruments:
• Quantitative assessment - Impact as-
sessment questionnaire – in the initial
phase we apply a questionnaire to the
target group making the object of im-
pact assessment (beneficiary, customers,
an individual from a vulnerable group
involved in the integration process, other
employees etc.) and after the process of
initial interpretation and the implemen-
tation of some activities into the com-
pany – training, support, information,
counseling, mentoring etc. – we reapply
the questionnaire and identify the prog-
ress factors of the target group and the
418
impact of the activities carried out or the
measures taken between the 2 assess-
ment phases.
• Qualitative assessment – research of
“focus group” type
• The interested structures active in the
business sector, mainly the social busi-
ness, have developed over time their
own mechanisms for impact assessment
and measurement. They are presented
in the table below and are customized
according to the type of social business
developed by each structure.
*No entity or author is formally credited
with the developement of the Founda-
tion Investment Bubble Chart Invest-
ment method. Tuan (2008) writes “Some
nonprofits and foundations are using a
bubble chart to display comparative in-
formation regarding multiple organisa-
tions”, quoting Sara Olsen , a presenta-
tion from Jon Hugget for the Bridgespan
Group and Hans Rosling ( in a separate
document from the Gates Foundation)
as sources for the statement.
**Social Cost-benefits Analysis and So-
cial Costs-Effectiveness Analysis are
both described by Maas as methods
derived from “general economic tools“
(2011, p.29) that have been adopted to
economically assess the social aspects
of programmes or interventions.
 Methodology Developed by Academic reference
Ashoha Measuring Effectiveness Questionnaire Ashoha N/A
Atkisson Compass Assesment For Investors (ACAFI) Atkisson Olsen & Galimidi, 2008
Balanced Scorecard Modified To Include Impact New Profit Olsen & Galimidi, 2008
Basic Effiency Resource (BER) Analysis Cugelman & Otero N/A
Best Available Charitable Option (BACO) Acumen Fund Maas & Liket 2011
Charity Analysis Tool (ChAT) New Philanthropy Capital Olsen & Galimidi, 2008
Comparative Constituency Feedback Keystone N/A
Cost Per Impact Center for High Impact Philantropy Tuan, 2008
Echoing Green Mid-year And Year End Reports Echoing Green Kramer, 2005
Foundation Investment Bubble Chart N/A* Tuan, 2008
Hewlett Foundation Expected Return William and Flora Hewlett Foundation Tuan, 2008
Deloitte, PWC, Acumen Fund, B-Lab, Hitachi,
IRIS Library Olsen & Galimidi, 2008
Global Impact Investment Network
World Business Council for Sustainable
Measuring Impact Framework (MIF) Maas & Liket 2011
Development
Robin Hood Foundation Benefit-Cost Ratio Robin Hood Maas & Liket 2011
Social Compatibility Analysis Institute for Sustainable Developement Maas & Liket 2011
Social Return Assessment (SRA) Pacific Community Ventures Clark et al., 2004

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6. EXAMPLES OF MEASURED AND
DEMONSTRATED IMPACT – ROTTERDAM
The Netherlands is a country focusing on
the social entrepreneurship component
within the community and it provides sup-
port by funds allocated annually by the Mu-
nicipality, mainly in Rotterdam area, where
the largest number of businesses managed
by people or organisations in the communi-
ty are being developed as an answer to the
needs identified in the northern and south-
ern neighborhoods that have a different
development level and which involve refu-
gees, immigrants, old people, former drug
and alcohol consumers, homeless individ-
uals etc.
a. Belvedere – cultural social
entrepreneurship
A 178 m2 house called Bellevue built in
1884 used to belong in 1911 to the so-called
“Chinatown”, but 4 years later the front part
420
was turned into a café-restaurant belonging located to a museum whose exhibits are
to a popular chain in Rotterdam at that time. donated by the people of the community.
It became a dance hall where jazz was pro- The money collected from the implemented
moted, and then it was forbidden during the activities is dedicated for the development
war; for e period of time one could listen to of activities for the community and some of
German songs, afterwards it hosted a club, the expenses are covered from the funds
a cinema hall and magic shows for children, granted by the municipality for the carry-
later on it became a wrestling hall and then ing out of activities for the community and
a Greek restaurant. For 17 years it was a the involvement of immigrants and their life
space used by volunteers from Foundation stories into these activities, mainly because
Exhibition Katendrecht who were manag- the story of this house involves most often
ing a museum. This was also a place where stories of the people who came from other
Jewish children were hidden during the war, countries to Rotterdam.
each floor being used by different owners
having diverse roles in the community. They
wanted to develop the area and the demo-
lition of this building was proposed, but Sto-
ries House Belvedere foundation took over
the building and renovated it as it had gone
through different stages of destruction.
The space is currently divided into a restau-
rant and a hall for events on the ground-
floor while the 1st and 2nd floors are al-
 A. BELVEDERE – CULTURAL SOCIAL ENTREPRENEURSHIP

B. COMMUNITY CENTER – SOCIAL ENTREPRENEURSHIP FOCUSED ON THE ENVIRONMENT AND THE

INTEGRATION OF DISADVANTAGED GROUPS INTO THE COMMUNITY

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b. Community center – social
entrepreneurship focused on the
environment and the integration
of disadvantaged groups into the
community
This community center is developed by the
local council, it belongs to the neighborhood
and answers different needs identified at
local level. Social workers are involved in the
development of different activities and carry
out environment projects within the center –
they have arranged a park in the community
where the people from the neighborhood get
involved once a week, and the housewives
of the refugee community are constantly
involved in tailoring activities – they sew
aprons, uniforms and work equipment, and
their products address other small business
in the community which need them and
require them directly to the community
center.
Some of the funds come from the municipality,
other funds come from donations, charity
events or the sale of the products made in
the center
422
c. Cook Club
This space is for the former drug and alcohol
consumers being in the recovery period,
most of them having gone thorugh the phase
of living in the street or being evicted from
their houses. In this space – a kitchen of
restaurant type fully equipped – individuals
from the disadvantaged groups mentioned
above learn how to cook, to manage a
shopping budget, to make a menu, to take
responsibilities and to elaborate catering
contracts in their last treatment phase.
During their involvement in cooking – up to
2 years – they are provided psychological
assistance or guidance in the recovery
process from the social workers with whom
they pull together in the kitchen. Every day
at 4 p.m., a full menu must be delivered to
partners, and a social worker – administrator
is in charge of the delivery.
The foundation managing the kitchen also
has another recovery programme mainly
for young people by which they manage
a mini bistro open every day – here the
work is managed by young females being
in different situations of vulnerability from
addiction to abuses and cases of violence.
d. Resto van Harte – a restaurant
with a heart
This is a restaurant for the old people having
low income who do not afford a hot meal
in a place downtown, and for maximum
7 Euros they are served a full dinner and
the possibility to meet other persons of the
same age with whom to socialize.
The programme was initially funded from
the public sector which is dwindling every
year, thus the business must develop to
be sustainable and to provide the weekly
activity. Those who serve and promote diners
are volunteers, whereas the chef and the
project manager – Resto van Harte get paid.
The latter develops catering partnerships to
obtain funds so that the meal for the people
with modest income to remain within the
limit of 7 Euros.
 C.COOK CLUB

D. RESTO VAN HARTE – A RESTAURANT WITH A HEART

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e. Café – integration of the former
prisoners being in the period of
integration into society into the labour
market
Heilige Boontjes is a café located on the
place of a former police section that was no
longer used; it is managed by the family of
a policeman who provides support to the
individuals who got out of prison and are
in a rehabilitation and recovery programme
after a crime – of community service type.
Employees who make coffee, tea and
sandwiches every day are individuals
belonging to the system and they go
through this process so as to reintegrate
into the labour market, and above all
into community. The recovery programme
lasts for at least 2 years and they must
demonstrate that they may be punctual,
can follow instructions, make decisions,
get involved into new activities together
with other people, behave nicely with the
customers, comply with a full-time job etc.,
and above all that they do not go back to
424
their old habits that put them in trouble in
the past such as violent behavior, thefts, etc.
Those who think they met the requirements
and feel integrated into the community
get a recommendation from the people
who manage the café and who work with
the police agents in this rehabilitation
programme and may get out of the
programme, many of them finding another
job, going back to school or enrolling for
training courses or deciding to offer support
at their turn and remain in café’s permanent
staff.
f. Community center for vocational
training and free time – educational
social entrepreneurship
A workshop for bike repairs, tailoring
workshop, workshops for making glassware,
robotics and 3D printers or wood processing
are only some of the activities carried out
at the center and destined to all community
members. These are workshops for money,
except for the individuals who register as
belonging to vulnerable groups. They benefit
from training, tools/instruments and access
to materials, supervision and support from
an expert. Experts have various trainings –
from teachers and craftsmen to passionate
amateurs who provide guidance for others
in learning and training or spending their
free time by practicing a hobby. The center is
open on weekdays mainly, and schools may
carry out traineeship courses here while the
community may take advantage of it at the
weekend.
The project was initially funded from European
funds and within 1 year at the latest – since
August 2016 – it should become sustainable
and carry out quite many activities so as to
become profitable for the community. The
foundation managing the space involves
refugees in the performance of activities
when they become speakers of German or
at least English, it offers them integration
support and to some of them even jobs in
the administration of the building after they
have obtained their papers.
 F. COMMUNITY CENTER FOR VOCATIONAL TRAINING AND FREE TIME – EDUCATION-
AL SOCIAL ENTREPRENEURSHIP

Sources:
social economy resource center - http://www.economiesociala.net/m1-128-42-ro-Antreprenoriat-social
social impact assessment methods - http://www.apubb.ro/wp-content/uploads/2011/02/Metode_utilizate_in_evaluarea_programelor.pdf
http://www.ies.org.ro/ce-este-economia-sociala-1
http://www.mmuncii.ro/pub/img/site/files/7266415e87e0bfbfea56ba7e6b396dca.pdf
http://profitpentruoameni.ro/laborator-de-economie-sociala/incubator-de-economie-sociala/intreprinderi-sociale/modele-de-intreprinderi-
sociale-pentru-grupurile-dezavantajate/
http://www.modele.cries.ro/newsletter_article/ce-este-economia-sociala/
file:///C:/Users/Andreea/Desktop/Social_impact_measurement_state_of_the_art_for_WISEs_final.pdf
http://anale.feaa.uaic.ro/anale/resurse/31_Maxim_A_-_Responsabilitatea_sociala_si_competitivitatea_durabila.pdf
https://5emesconf.exordo.com/files/papers/102/final_draft/Social_impact_measurement_state_of_the_art_for_WISEs_final.pdf
https://en.wikipedia.org/wiki/Social_impact_theory

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FINANCING YOUR IDEA

TABLE OF CONTENTS

• Introduction

• Keywords

• Need analysis

• Financing sources

• Conclusions

426
INTRODUCTION
In the current economic situation capital
represents one of the most import elements
that trigger the birth and development
of a business. To attain your social goals,
you will need to structure a budget and
a precise action plan. Your business will
require money, regardless whether we
are speaking about assets (purchases of
equipment, cars, tools, and consumables),
services (consulting, accountancy, and legal
services), human resources (the people
you need) or merely to support your daily
activities (operating costs).
In the following pages we intend to introduce
you to the world of financing so that you
may create an optimal strategy for your
business.
KEYWORDS:
bold majuscule – the budget of a project
represents the totality of financial resources
necessary to attain the goal and project
objectives within a fixed period of time. It
represents the main financial document
showing any potential financier the
necessary funds for project implementation
and the creation of value added thereof.
NON-REPAYABLE FUNDS – non-repayable
funds represent financial aids directly from
public funds granted to entrepreneurs to
carry out specific activities and results the
state considers as important, according to
its public policies. The main advantage of
these types of funds is that at the end of
such period there is no obligation to repay
it only if the beneficiary complies with all
the specific provisions and uses the funds
for the intended purpose. Funds are usually
granted after the organization of some
project contests and there is a specific score
grid in order to decide between the projects
submitted. The non-repayable financing is
granted based on a funding contract between
the beneficiary and the financing authority
where a series of specific obligations for the
beneficiary are stipulated.
According to the origin of funds, we may
have state aids (funds coming from the
Romanian Government), structural and
cohesion funds (funds coming from the
European Union budget), and other types
of non-repayable funds (Norwegian funds,
Swiss grants, etc.).
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BANK CREDIT – The sum of money a bank
provides to a client and that is going to be
repaid on a fixed date (money loan). Bank
credit relies on a contract between a bank
and a client that may be a natural person,
a legal person or a state institution. Banks
usually make a complex assessment of
the companies they finance and request
guarantees in exchange for the provisions
of money.
ELIGIBLE COSTS – Those categories of
expenses for which non-repayable funds
may be granted within a special programme
financing (for instance wages-related
expenses, equipment-related expenses,
training-related expenses, etc.)
NON-ELIGIBLE EXPENSES – Those
categories of expenses for which non-
repayable funds are not granted but which
may be mandatory to attain a project goal
(for example the purchase of a building
may be a non-eligible expense but the
428
renovation and fitting out thereof in order
to turn it into a guesthouse may represent
eligible expenses).
FUNDING INTENSITY – the percentage
of eligible expenses with which the funding
programme may support a certain project
(for instance in some projects eligible
expenses are supported 100% while in
others the support is only 50%, in which case
the beneficiary must co-fund the investment
for the remaining 50%)
CALL FOR FUNDS – Funding session
launched within a certain time period. A
funding programme might have several
annual or multiannual funding sessions
(e.g. SRL-D Programme of AIPPIMM, 2015
Call)
MANAGEMENT AUTHORITY – The public
institution organizing, managing, assessing,
granting and monitoring the way in which
non-repayable funds are spent.
FUNDS GRANTED WITHIN COMPANIES’
CSR PROJECTS – many large companies
(banks, oil industry companies etc.) invest
their money into programmes having
a social impact (CSR-Corporate Social
Responsibility). Thus, non-repayable sums
are allocated within such projects in order
to support some businesses that contribute
to certain social objectives. The goal of
these programmes is to identify projects
with a significant positive impact in diverse
domains such as environment, minorities,
social issues etc.
BUSINESS ANGEL – a person outside the
company acquiring the quality of an associate
thereof by bringing a cash contribution to
company’s share capital resulting in the
issue of new shares for them. This type of
investors usually acts in field having a high
growth potential – ICT, pharmaceutical
or the technological field, and most often
after they have become shareholders or
associates in the company their contribution
may also represent expertise know-how,
commercial contracts, logistic knowledge
etc., as they have a certain experience in
the field they invest into. We practically may
encounter a quite high level of specialization
of the business angels as they need to
assess the potential of each company. In
Romania, a new legislative framework has
been instituted since 2005 – the Law no.
120/2015, and draft law is in progress to
create a state aid scheme regarding the
stimulation of these types of investments.
Thus, the potential investors are stimulated
to fund young companies in certain
domains considered of national interest
(ICT, pharmaceutical or technological) by
receiving a help in exchange through the
elimination of obligativity to pay certain
tax liabilities. The state aid consists in the
exemption from taxation of dividends and
other gains taxation (income tax/capital
gains tax) within the limit of 200,000 Euros
in 3 years since the paying-up of share
capital (by diverse exemptions from the
tax code). Practically, the help consists in
state’s waiver to collect such tax (no actual
grant is allocated like in the case of other
programmes).
CROWDFUNDING – funding method of a
business idea through the collection of small
sums of money from a very large number of
individuals interested to fund a new business
or a new business model. Crowdfunding
uses technology a lot (dedicated platforms,
social media etc.) by bringing together a very
large number of potential small financiers.
Companies using crowdfunding usually
try to offer advantages to the potential
financiers so as to make them invest (for
example a company says that it will make a
smart watch if it can collect 100,000 EUROS
in 12 months. All those who contribute
with at least 10 Euros will be given a 50%
discount to the final price of the watch that
will cost 500 Euros – this method creates a
multiple advantage: the necessary capital
for business launch + making a product
that is going to be sold + publicity, each
potential financier also being a potential
agent for the promotion of the idea and the
product). Each funding platform has its own
rules and, according to the state where your
platform or company is registered, there
may be supplementary liabilities in terms of
income taxation or the manner of making
the investment. Be careful and carry out a
thorough research before launching your
project on the platform.
Examples of crowdfunding platforms:
https://www.crowdcube.com/
https://www.kickstarter.com,
http://crestemidei.ro/
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NEED ANALYSIS
Before looking for financing sources,
it is very important to know exactly the
financing needs of your business. Thus,
before boning up on the content of diverse
financing programmes, we recommend you
to draft your financing needs as precisely as
possible.
The first step we recommend is to make the
budget for your business (see the chapter –
Business model & budget)
A complete business plan that may cover
the description of your idea, the budget, the
forecast of income and expenses related
to the project, the market analysis, the
marketing strategy, and sustainability etc.
represents another very useful instrument.
We may find below a checklist that might
help you find the easiest funding resource for
your business. The checklist contains a series
of fields you should fill in. Given the very
wide diversity of the funding programmes
as well as their common components (what
430
a financier wants to know about you), we
recommend you to fill in the table below:
INFORMATION ANSWER:
What is the goal of your project?
- what do you want to achieve exactly?
- what is your motivation and the motivation of your team?
- try to express the goal in a single phrase by highlighting your main
impulse which might be for example profit, helping the elderly, the
involvement of the local community, etc.
- be as direct as possible when formulating your goal for financing
purposes!
- for each type of project there is a type of financier (for example,
banks will fund projects that may generate profit, the non-repayable
programmes follow the long-term sustainability of the business, social
funding programmes and CSR funding programmes mainly follow the
impact of the project at the level of the target group, etc.
 INFORMATION ANSWER:
Describe briefly your current situation. You may also include information regarding the legal form you are operating
or are going to operate, the registration data, etc. :
- Describe precisely your current legal form – LLC or LLC-D; SEP; NGO or seed, start-up, etc.
- it is important to know the legal form you are going to use unless you already have a history of your commercial
activity.
- It would be ideal to also present a short history of your business (in case of a business of start-up type the
justification of the idea and the investment need is even more important) since there is no concrete history that may
prove the operating capacity to manage an economic activity.
- We advise you to connect your commercial experience even to yourself or the members of your team (e.g. he/
she worked as a manager for 5 years in a company or he/she worked as a volunteer for more than 3 years in XXX
organisation where he/she successfully managed 10 projects, etc.)
- It is important to show the financier that you are a reliable person, that you know the field you are operating in and
you have the capacity to correctly manage the money you ask for.

Which is the NACE code of your activity?

- NACE codes represent a catalogue of all European economic activities. Each economic activity has a code.
- Look for the NACE code list and find the 5 NACE codes closest to your business idea
- Most programmes present the NACE codes for which they provide financing or the NACE codes excluded from
financing
- Upon the launch of a call it is essential to know whether you can or cannot submit an application form within it
- The inobservance of the eligible NACE code rule shall result in the rejection of your project!

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INFORMATION ANSWER:
Which is the project budget (in RON)?
- E.g. 250,000 RON
Brief description of the project and its main objectives (project’s general idea).
- Describe the main project activities
- Describe the main purchases envisaged through the project (purchase of tangible/intangible assets, equipment,
land, construction works, employment/training of personnel, research activities etc.) and their estimated value broken
down by categories of expenses.
- It is important to know how you will spend each leu of the amount given by the financier
- No financier will grant funds unless they are necessary and correctly justified
- There must be a direct connection between Goal – Objectives – Activities – Project expenses – and project result.

For example: Request for funding of CSR type. Goal: supporting the Roma people of Dumbrăveni Commune by the
setting up of a social company. – Objective 1 – setting up a company having NACE code xxxx – processing of metal
products and handicrafts – Activity – purchase of equipment necessary for metal working and the manufacturing of
handicraft items – expenses: 2 iron hammers, 1 anvil, 1 oven for metal melting – result - manufacture of handicraft
objects!
How much time do you need to implement your project once you have got the money (in months)?
- Funding programmes provide a maximum implementation period
- Implementation period will be different according to the activities you have in mind (purchases of equipment,
training, construction etc.)
- It is crucial to know whether you can or cannot comply with the implementation period of a project
- If you start a project and fail to carry out the activities within the implementation period, the authority may request
the reimbursement of the money paid up to that moment!
- You must understand correctly the implementation period of your project and do not take risks – also include a
buffer period to overcome potential delays.

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 INFORMATION ANSWER:
Have you launched any project activity up to this point (YES/NO)?
- You should have a history of your organization
- On the other hand, non-repayable funding programmes include the obligation that the project activities must not be
launched before the signature of the funding contract
- The activities carried out before receiving the funding shall not be reimbursed (money is allocated only for the future
activities)
Where do you want to implement your project?
- identify exactly the region, county or locality where you want to implement your project
- do you currently have any ownership on the location? (title deed, lease, commodatum, etc.)
How many jobs will you create by your project?
- many funding programmes stimulate the creation of jobs and they may give additional points according to the
number of jobs created
- analyse the number of jobs that your project will create
What are your current resources?
- Examples of resources:
- location
- project team
- consulting
- a part of the budget (money)
- partnerships with local authorities, etc.

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FINANCING SOURCES
You will find below some of the most relevant financing sources for start-up businesses.

Name of Maximum
Non-eligible Further
NO. CRT. financing Eligible expenses amount granted Description
expenses information
programme and intensity

EaSI credit without

Working capital – to
guarantees may
finance current activity
be applied for
investments or mixed
by Romanian
– purchase of assets
microenterprises
(vehicles, equipment,
internal or (regardless of their
EaSI credit machineries etc.) as
external form of organization
without well as real estate https://www.
refinancing, or field of activity)
guarantees investments (purchase patriabank.ro/
payment of having 9 employees
(guaranteed of buildings or land, afaceri-mici/
public-law debts, at most, at least 12
1 credit granted construction/renovation 110,000 LEI credite/credite-
transfer client’s months and 7 years
by EU by local of buildings used to fara-garantii/
account open of activity at most and
commercial carry out the activity of credit-easi-fara-
with another maximum 2 million
banks) your company) garantii
bank Euros turnover per
financings by projects
year.
with European funds are
Currency: lei.
also accepted (different
Period of validity of
credits are granted for
EaSI credit without
the amounts exceeding
guarantees: between
25,000 Euros)
12 and 60 months

434
 Maximum
Name of
Non-eligible amount Further
NO. CRT. financing Eligible expenses Description
expenses granted and information
programme
intensity

This programme grants

facilities to newly set-
up microenterprises
managed by enterprisers
Lands
who are debutants in
Constructions
business and who carry
Furniture
out an economic activity
Equipment
for the first time by means
Vans 10,000 EUROS
of a limited liability
Installations with a 50% http://www.
2. Wages-related costs 110,000 LEI company - debutant
Patents, licenses, funding intensity aippimm.ro/
(LLC-D).
trademarks, etc.
Those who access the
Site creation
funding shall set up a
Raw materials,
company of LLC-D type
etc.
Entrepreneurs must be at
their first business so as
to access the programme
Funding intensity is 50%

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Name of Maximum
Non-eligible Further
NO. CRT. financing Eligible expenses amount granted Description
expenses information
programme and intensity

The goal of this

Equipment, machinery, motor programme is https://www.
vehicles, furniture, technical to stimulate new patriabank.
Start-up nation
devices, nondeductible VAT. iInterests, businesses. ro/afaceri-
(governmental
Wages, rents, utilities, purchase of operating costs, 100% funding It covers a wide range mici/credite/
3 funds)
work spaces etc. intensity of eligible expenses. credite-fara-
Software purchase, training It represents an garantii/credit-
courses, consulting excellent funding easi-fara-
method for a start-up garantii
business.
Romanian government provides a series of benefits
for the debutant enterprisers or the small companies.
Other Programmes are usually budgeted annually and
governmental information regarding the launch of calls may be
funding seen at the link hereto.
programmes Main programmes recommended:
4 granted by - START
AIPPIMM - COMMERCE
(governmental - WOMAN MANAGER
funds) - MICRO-INDUSTRIALIZATION PROGRAMME
According to the annual budgets, these programmes
may be repeated or closed.

436
 Maximum
Name of
Non-eligible amount Further
NO. CRT. financing Eligible expenses Description
expenses granted and information
programme
intensity

The programme supports

the setting up of new
business in the rural
environment.
National
The advantage of this
Programme
programme is that upon
for Rural purchase of
50,000 the submission of your
Development agricultural
EUROS or application form only a
(PNDR) Measure All types of expenses equipment and
70,000 business plan describing
6.2 – Support for necessary to carry out machineries
5 EUROS with the main business http://afir.info/
the setting up of the activity proposed in purchase of
a 100% objectives and the related
non-agricultural the business plan agricultural
funding expenses is necessary.
activities in rural equipment and
intensity With a 100% funding
areas machineries
intensity and an
(EU funds)
advance payment, it
represents an important
development tool for
those who want to invest
in the rural area.

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SIP GUIDE RO

Maximum
Non- amount
Name of Further
NO. CRT. Eligible expenses eligible granted Description
financing information
expenses and
intensity
It is a programme for the development of
Courses,
entrepreneurship and the setting up of new
specialized
enterprises
consulting,
A series of organizations – NGOs, local
mentoring services
public authorities, chambers of commerce,
(if you are a
employers’ organisations, universities, etc. http://www.
Romania participant)
40,000 may access the programme. By means of fonduri-ue.ro/
start-up plus Costs necessary Interests,
EUROS with this grant they become “business incubators” calendar-lansari/
(EU funds) to start the operating
6 a 100% where they will select potential entrepreneurs. details/5/76/
business – if the costs, etc.
funding Among the selected entrepreneurs, some calendar-
project is selected
intensity of them may receive grants of up to 40,000 lans%C4%83ri-
(equipment,
EUROS. programul-
assistance,
We recommend you to identify the list of
consulting,
beneficiary organizations and to submit
guidance, some
application forms so as to access the
administrative
programme.
costs)

438
 Maximum
Name of
Non-eligible amount Further
NO. CRT. financing Eligible expenses Description
expenses granted and information
programme
intensity
The goal of this
programme is to
support the sustainable
development of the local
communities all over
Romania, to encourage
the Romanians having
initiatives and who want
Expenses that do not Up to
to support the Romanian
“Țara lui Andrei” have direct connection Up to 200,000 200,000
communities to change
(CSR to the project and the EUROS with EUROS with http://itla.
for the better from the
7 programme) objectives thereof a maximum a maximum taraluiandrei.ro/
inside.
Current wages-related funding intensity funding idei-din-tla
In its 2017 edition, “Idei
expenses of 95% intensity of
din Ţara lui Andrei”
95%
contest aims at projects
with medium and long-
term results for which
individual financings of
up to 20,000 Euros are
given, the total value
reaching up to 200,000
Euros.

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SIP GUIDE RO

Maximum
Non- amount
Name of Further
NO. CRT. Eligible expenses eligible granted Description
financing information
expenses and
intensity
Expenses must
https://www.
contribute to the
raiffeisen.
Raiffeisen attaining of goals
10,000 The main goal of this initiative is to ro/despre-
Comunitati of the project that
Expenses EUROS with support financially or by direct involvement noi/media/
Grant is to be developed
that do a maximum (volunteering, consulting) good projects for comunicate-de-
8 Programme in the following
not have funding the local communities where the bank carries presa/2016/
fields: financial
direct intensity of out its activity. au-inceput-
education, social
80% inscrierile-in-
and health
programul-de-
services, urban
granturi-2016/
ecology;
Norwegian funds
SEE and the Norwegian grants represent the contribution of Iceland, Liechtenstein and Norway to the
reduction of economic and social disparities and to the consolidation of the bilateral relationships with 16
EU countries from the Central and Southern Europe and the Baltic states.
http://eeagrants.
The new financing period for this programme will start in the near future.
8. org/layout/set/
In the previous years, the Norwegian Funds meant an important support for the development of NGOs and
bluebook
small businesses through the award of grants, with a strong focus on the social dimension of projects.
In this phase, we recommend you to analyse the “Blue Book” of this programme which presents the main
financing directions. Subsequently, we recommend the monitoring of the EEA Grants website to see the
precise time when calls are launched.

440
CONCLUSIONS:
There is a very wide range of financing tools:
self-funding (your own sources)
• non-repayable financing
• financing by private programmes of CSR
type
• bank credits
• alternative financing (crowdfunding,
business angels)
It is important for you to understand very
well the funding needs of your projects by
structuring a very precise budget.
Given the difficulty to obtain funds from a
single source, it is important to build an as
complex funding strategy as possible for
your project. For example, a project might
be funded as follows:
• 10% your won contribution where will I get the funding for these?)
• participation to a business incubator • which are the best funding sources for
(courses, consulting, guidance, etc.) – me?
Start-up plus • which are the alternatives? (let’s suppose
• accessing Start-up plus grant – 70% I cannot access the funds by myself or I
• accessing CSR financing – 10% will not access programme x)
• 10% guaranteed bank credit.
• A funding strategy should take into
consideration the following aspects:
• a quite long period of time covered by the
strategy (the project budget might be a
lesser component of the strategy budget.
For instance, if you are going to build
a house, the budget for the purchase of
land in the first year may be regarded as
a project, while our strategy focuses on
building that house within 4 years)
• financing calendar (what are the main
activities that must be funded? From
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LEADERSHIP - Management of people, teams and

organizations

TABLE OF CONTENTS

1. Leadership – inborn talent and learned skill

2. What kind of leaders do we know?

3. Several very concrete aspects about people, teams and organizations

Images via http://www.gapingvoidart.com/

ORGANIZATIONS
DON’T NEED
ORGANIZATIONS
THE
NEED A LEADER LEADER

442
1. LEADERSHIP – INBORN TALENT OR
LEARNED SKILL
Leadership has been given a multitude of
definitions some of them more correlated to
the idea of management while others closer
to the idea of inspiring and influencing
people.
One definition proposed by us which has
been selected from the available literature
(very generous for that matter) is the
following: project manager’s capacity to
determine the project team members to
follow them in the fulfillment of objectives by
means of a strong affective and operational
involvement.
This definition combines the managerial approached technically or managerially.
dimension with the human affective- The specific ingredients are INSPIRATION
emotional one. and voluntary INFLUENCING.
Etymologically, both form of the word are
accepted:
Leader (Eng., n.) – a person who leads (t.a.)
To lead (Eng., v.) – to guide, to direct (t.a.)
The theoretical evolution of the leadership
concept supports the understanding of this
capacity or skill as a personal characteristic
both acquired by birth and developed
during life. Generally speaking, leadership
is associated to the attainment of some
high objectives in a specific way which is
characteristic to a leader, and separates
from the performance obtained by others
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Here is a review of the main perspectives in
terms of leadership:
I. Theories based on features or char-
acteristics
II. Theories of management styles
III. Contingent theories of manage-
ment/leadership among which we may
enumerate the management focused on ac-
tion, the conjunctural management model,
situational leadership, transactional leader-
ship and transformational leadership – the
last two being treated in a dichotomous pair.
Before making a short presentation of the
most frequent leadership styles practiced,
we will try to answer this question: is being
a leader an inborn quality or is it acquired
by education and training?
character (the value side) by superimposing
them on the skill dimensions: knowledge,
skills, and attitudes. In the diagram below,
aptitudes support the formation of skills,
and character represents the basis of atti-
tude structuring as behaviours manifested
in interpersonal relationships.
Knowledge
Skills, aptitudes, Attitudes, char-
professional tasks/role, training profile
inclinations, acter, values,
talents motivations
personality structure

For this purpose, we will use the classical

theory of personality to identify the 3 per-
sonality components: temperament (en-
ergy), aptitude (inclinations, talents) and Temperament, dynamics

444
The competence triangle circumscribes
a professional role or a set of profession-
al tasks and answers the questions “what
does” the respective person in their pro-
fession. It is the content of their work and
these professional skills are educable, they
are learnt and acquired during formal ed-
ucation whose objective is the profession-
alization and employability of an individu-
al. Consequently, we may propose that the
upper triangle be a stable one described by
professional roles, according to the specific
occupational standards or a job’s require-
ments. For example, the role of a manag-
er or leader may be described as the sum
of specific knowledge, skills, methods for
achieving this role and a set of attitudes
desirable for this position. This competence
maybe acquired by specialized training pro-
grammes or during the academic studies.
The lower triangle circumscribes individ-
ual personality and represents the subjec-
tive and variable dimension in relation to a
group of persons having a similar training
or the same professional role which is “be-
ing played” in the same way, in an objective,
assessable and measurable manner. Per-
sonality triangle “supports” the competence
triangle in two points, namely if tempera-
ment is an inborn hectic side that cannot be
assessed, the angle of aptitudes and char-
acter combines with skills and attitudes and
it may generate high performance and sat-
isfaction in concordance with the assigned
tasks. A series of inborn aptitudes (predis-
positions, talents such as intelligence type,
artistic inclinations and others) support the
easy formation of a skill and confer it qual-
ity, high output and performance. Charac-
ter dimension supports the manifestation of
some attitudes in accordance with it, and
attitudes are, at their turn, requested by the
professional role, according to formal pre-
scriptions.
Aptitudes – skills /character – attitudes line
represents the concrete methods of action
of an individual and an answer to the ques-
tion “how do we do things?”, how do I act
specifically and in a customized way accord-
ing to my personality?
The word “how” is a strong differentiator
between people in terms of the manner of
achieving professional tasks: someone may
be more talented for a certain task whereas
some other person may have a more ade-
quate attitude in concrete situations of hu-
man activity. In this case, in terms of lead-
ership we may discuss about an inclination
that becomes certitude and manifested ca-
pacity by combining the action side (skill)
with the value and attitudinal side (a system
of values that becomes a constant landmark
and manifests attitudinally by specific be-
haviours towards others and the world, in
general).
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SIP GUIDE RO
Personality triangle also represents the per-
sonal “why”, the place where the individual
may answer the most subjective motivations,
personal visions and where they master and
use those deeply personal qualities from the
level of energy up to concrete ways of action
and communication. The space of person-
ality becomes a place of personal develop-
ment, raising awareness, self-discovery and
evolution on a personal level with results
and an impact on the professional, social,
and interpersonal levels.
This explanatory model may sustain the
idea according to which leadership is not
only a personal inborn characteristic (man-
ifested by social, emotional and interper-
sonal intelligence – according to Gardner,
Goleman), but also a competence acquired
through education and training, namely by
the formation and/or practicing of this spe-
cific capacity. More efficient leaders will be
those whose technical training in the field of
leadership will combine with a personality
446
having a potential in this direction. This way with subordinates or followers – in terms
competence will educate, exploit and use of attitude – focus on goal/objectives/
an existing potential, an inclination or an task, focus on individuals/team/people;
inborn talent for management and people. • situational, transactional or transforma-
tional leadership where context (situa-
tion) and the influence ratio between the
Thus leadership is: leader and their followers, the exchange
• a role that may be learnt as it has simi- of mutual objectives and needs satisfied
larities to management (therefore exchange, transaction, nego-
• a skill sustained by an inborn aptitude tiation) matter.
manifested as charisma visible in model
heroes, the Messianic leaders or other
typologies that are presented mostly in
the leadership theory based on features
or characteristics.
When trying to answer the question “What
kind of leaders do we know?” we will iden-
tify several dominants:
• leadership based on features or charac-
teristics – inborn aptitudes and the per-
sonality marked by these specific talents
are important here;
• leadership based on the relationship
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SIP GUIDE RO

2. WHAT KIND OF LEADERS DO WE The following short film is instructive in this

KNOW? respect:

Leaders are presented in numberless ty-

pologies, according to a series of theories
explaining the manners in which leadership
is understood.

A leader is followed – the follower of

h t t p s : / / w w w.
the first follower youtube.com/
It is worth, however, reflecting on one of the
most important theses of leadership: what
watch?v=fW8am-
really matters is the existence of a follow-
er (confirming and following the initiative MCVAJQ
of an individual by validating them as an
influencer and by giving them a context to
become a leader), and then of a second fol-
lower who offers a model to follow and an
invitation for others by showing them how
to take over the model.

448
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1. TYPES OF LEADERS BASED ON FEATURES AND CHARACTERISTICS

TYPE: Based on: Characteristics:

Charismatic Personality (e.g. Napoleon, Churchill, Hitler) necessary exceptional qualities
Succession (e.g. inheriting the royal crown
Traditional
or the position of a tribal chief)
Situational (Conjunctural) In the right place at the right time
Bureaucratic authority (most managers and
Appointed (as/in the position of)
supervisors)
Functional Manager/leader behaviour
- inborn qualities
- low number of individuals that may meet all the
- necessary qualities cannot be acquired by training; they
can only be modified
- specific to small family businesses
- there are almost no other opportunities for this type
- too short in terms of duration to be valid in business
- power and authority are given by the nature and role of
the position within the organizational hierarchy
- the power of the position is well determined but limited
if the position holder does not have the necessary
qualities to implement it
- ensures his/her managing position rather by what he/
she does than by what he/she is
- adapts his/her behaviour to meet the competitive needs
of the situation

450
II. MANAGEMENT STYLE THEORIES
Kurt Lewin’s management style model
Kurt Lewin together with some of his col-
leagues from the University of Iowa have
identified through the studies carried out
by them 3 distinct styles for a leader’s be-
haviour:
1. Autocratic style
• tends to centralize authority
• dictates the work methods
• makes decisions unilaterally by limiting
employees’ participation
2. Democratic style bers was higher when they had a democrat-
ic management
• tends to involve employees in the deci- c) the democratic style contributes signifi-
sion-making process cantly to the quantity and high quality of
• delegates authority the work carried out by the group or team
• encourages participation (but this last conclusion has become quite
• uses feedback for subordinates’ benefit controversial following some studies per-
formed subsequently by other specialists
3. “Laissez-faire” style: that showed that the autocratic style may
• provides the means for the carrying out result in as good if not even better results).
of work and answers questions;
• gives subordinates absolute freedom in
terms of work method.
The clear-cut conclusions of the study were
as follows:
a) according to al criteria, the less efficient
style is “laissez-faire”
b) the satisfaction level of the team mem-
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SIP GUIDE RO
RENSIS LIKERT’S THEORY
He presents 4 dominant managerial styles:
1st style of authoritarian-exploiting type
having the following characteristics:
• the leader does not trust his/her
subordinates;
• almost all decisions are made by
organization’s top management;
• employees’ motivation is fear and the
sanction system;
• communication is almost exclusively
from top to bottom.
2nd style of authoritarian-amiable type
having the following characteristics:
• the control strictly belongs to top
management
• subordinates must be loyal, docile and
enslaved
• managers treat subordinates in a
452
paternalist way
• allows some more communication from
bottom to top
3rd style of consultative type having the
following characteristics:
• partial trust in subordinates
• ideas are often requested from
employees but most decisions are made
by the top management
• some aspects related to control are
delegated to the lower part of the
pyramid
• communication takes place both ways
4th style of participative type having the
following characteristics:
• full trust in subordinates
• decisions are made at all organization
levels by group participation to this
process
• communication takes place vertically
both ways and horizontally between
those having equal positions
• participation to the decision-making
process generates strong motivations
to attain organization’s objectives and
goals.
ROBERT BLAKE & JANE MOUTON’S
MANAGERIAL GRID
Used to identify the management style
practiced by managers and to identify the
direction for development and improvement
of their activity, this grid ahs two dimensions:
• on the vertical axis there is the
preoccupation for people;
• on the horizontal axis there is the
preoccupation for production.
TANNENBAUM & SCHMIDT’S
CONTINUUM OF MANAGEMENT STYLES
It follows the evolution of the managerial
attitude from authoritarian to democratic.
AUTHORITARIAN
Utilizarea autoritatii de catre manager
Aria libertatii subordonatilor
1 2 3 4 5 6
Management style spectrum contains the
following steps:
1. Manager makes decision and tells
staff about it without consulting or taking
into consideration a potential opinion or
observation coming from the subordinates;
DEMOCRATIC
2. Manager “sells” decision to his staff
by using his entire power of conviction
just like in the case of direct marketing or
customized sale;
3. Manager presents ideas and invites
questions from staff;
4. Manager presents tentative decision
subject to change;
5. Manager presents problem, gets
suggestions and then makes the decision;
6. Manager asks the group to make
decision within the limits he/she sets;
7. Manager allows the team to develop
options and decide on actions defined by
manager.
7
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III. CONTINGENT THEORIES OF

MANAGEMENT/LEADERSHIP

SITUATIONAL LEADERSHIP

The last theories propose transaction

leadership – transformational leadership
dichotomous pair.

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3. SEVERAL VERY CONCRETE ASPECTS
ABOUT PEOPLE, TEAMS AND
ORGANIZATIONS
The resources invested by leaders to attain
their objectives – influencing people and
orienting them towards the proposed goal,
in keeping with themselves (voluntarily), are
various and may be divided into:
• one’s own resources, personal qualities,
aptitudes and attitudes:
• communicability, empathy and
persuasion
• linguistic capacities – use of
vocabulary, phrases, verbal, non-verbal
and paraverbal communication
• charisma
• a propensity for human interactions,
an interest in people and the specific
ways of meeting their needs (mainly
relational needs: to be listened to,
understood, valued or appreciated)
• high intelligence, mainly social and
emotional
• interpersonal skills without letting functioning and to use them to render the
himself overwhelmed or dominated by performance of teams and individuals
other person’s personality or problems more efficient.
• overview, synthesis capacity
• capacity to project and verbalize Explanatory models supporting decision-
these projections making in the crisis or conflict situations are
• inspirational. useful in interpersonal relationships. For
example, LIFO model explains the fact that,
• resources that have been learnt, ac- in general, the excessive use of people’s
quired or practiced qualities may bring prejudice:
• to communicate efficiently, assertively
or persuasively Supportive ………………... Submissive
• to manage people efficiently, to put Authoritarian ………………. Autocratic
the right person in the right place Conservative …………… Rigid
• time management Adaptive …………………. Versatile
• good understanding of dimensions:
task/objective, interpersonal
relationships/people
• situation adequacy
• competence to solve conflict and
make decisions
• crisis management
• capacity to motivate people, to
understand the mechanisms of human
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As for teams and organizations, one of the most practical model for the efficient positioning of the leader in relation
to follower/subordinates is the one proposed by Tannenbaum – Schmidt:

STIL DE CONDUCERE AXAT PE LADER

STIL DE CONDUCERE AXAT PE SUBORDONATI

ARIA AUTORITATII LIDERULUI ARIA SUBORDONATILOR

Liderul ia Liderul Liderul Liderul Liderul Liderul Liderul

decizii si le “vinde“ prezinta prezinta prezinta fixeaza permite
comunica decizia idei si o propunere o problema, limitele subordonatilor
cere de decizie obtine sugestii si cere sa ia decizii
intrebari supusa si decide grupului in limitele
schimbarilor sa ia fixate
decizia de superior

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SEVERAL CONCLUDING
OBSERVATIONS:
• Leadership is inborn and also learnt.
However, if it is only learnt without an in-
born support, the role practiced will very
much look like management;
• Leadership models have evolved very
much over time by going deeper into the
concrete ways in which a leader may act
in relation to the teams or organizations
managed;
• Regardless of the type of authority prac-
ticed – normative (formal) or deontic
(informal) – genuine leaders will be ex-
pressive and visible no matter what the
organizational structure or hierarchy is.
• Character is defining for a leader. An in-
born competent leader oriented towards
negative values will produce more prej-
udices than the lack of a genuine leader
and the operation in a technical, mana-
gerial way.
• Leadership spirit may often be associated
to entrepreneurial spirit as it is driven by
its own visions for which it will use per-
sonal resources (energy, time, effort) or
group resources, a concrete perspective
for achievement and its own discourse
that will result in the inspiring of those
around it and the emergence of commit-
ment, participation and contribution to
the projects launched by the leader.
• Leaders need to be identified (as poten-
tial) and educated, trained or mentored.
The installation of some positive value
“relays” will be the most important in-
vestment in the training of a leader.
• Leadership starts from within. If it is not
there, it will never be there.
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METHODOLOGY

SWOT ANALYSIS
Objectives Clarification of the personal and professional development context
SWOT analysis is an instrument that aims to make a subject become aware of their position in
a context and to create strategies for the solving of the weak points existing in subject’s current
Introduction state.
SWOT is an acronym for strong points, weak points, opportunities and threats. Strong points (S)
and weak points (W) are internal factors. The opportunities (O) and threats (T) are external factors.
Materials Colored paper sheets, felt pens, ball-point pens

Time Colored paper sheets, felt pens, ball-point pens

Participants will have time to work by themselves at first to identify the elements indicated by the
instrument.
In the next phase they will have the possibility to share with their peers and make the proper
Process analysis where they will identify the following aspects:
• How can Strong points (S) help overcome Threats (T)?
• How can Opportunities (O) help diminish Weak points (W)?
In the end, they will present in plenary the analysis results.
• How was the process of filling in this instrument?
• How did you collaborate in a team for analysis and strategy identification?
Processing
• What relevant aspect did you find out about yourselves for the learning context?
• How will this instrument help you develop your own personal and professional life?
SWOT analysis is a relevant instrument in general in companies for strategic, organizational and
institutional development. Starting from the principle of determinism and the idea that we have
Conclusions
better results when we are in as ate of balance with ourselves, this instrument shows the potential
steps towards this objective.

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CAPITOLUL 8

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DORI WINDOW
1. Self-analysis of personal and exterior resources in the professional field
Objectives
2. Designing a development action plan
DORI window is a self-knowledge, self-analysis exercise for the modification of some
characteristics and the design of an action plan, an exercise by means of which students will
discover information about themselves about the resources they have or they are not aware of,
while those around them give them solutions for action plans to achieve the changes proposed.
1. What I want to change in me to ensure my 2. Resources (psychic resources – qualities,
Introduction success in career and proposals for the change time and economic resources) the other think I
of those around me hold to achieve the changes
3. Resources on which I rely to achieve the 4. What do other propose me to do to achieve
changes ( psychic resources – qualities, time the change I want to do in me. Action plan.
and economic resources)

Materials Colored sheets, felt pens, ball-point pens

30 minutes – filling in the instrument
Time
30 minutes – introduction and processing
Participants will be given the description of exercise and time to outline their ideas about the
resources they hold. Afterwards, they will share them with their peers from whom they will also het
Process
suggestions for filling in the table. In the end, the action plan in designed in teams and presented
in plenary.
• How was the process of filling in this instrument?
• How did you work in teams?
Processing
• How did you help your peers in the self-knowledge process?
• In what way will you use the identified information in the future?
Besides Johari window this exercise helps participants know themselves better in the context of
Conclusions interaction with others, the awareness of such “reflections” being essential for leaders and future
initiators of social innovation projects.

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JOHARI WINDOW
Objectives Illustration and improvement of self-awareness in relation to self and others
Participants are given input about the importance of interpersonal and intrapersonal knowledge for the
development of leadership skills in the field of entrepreneurship/social innovation.
They will subsequently get information about the instrument on which they will work in the personal and
group analysis.
Johari window has four quadrants/perspectives having the following characteristics:
1. “Open”/”free area” – the piece of information the person knows about themselves and that is
also known by others. This part will be filled in together with the team
Introduction
2. “Blind area” – the piece of information the person does not know about themselves but which is
known by the others – This part will be filled in based on peers’ feedback
3. “Hidden area”– the piece of information the person knows about themselves but which is not
known by others - This part will be filled in individually and disclosed subsequently
4. “Unknown area” – the piece of information that neither the person nor the others know about
him/her. - This part will be filled in together with the team by asking introspective questions aimed to
aspects unexplored by the person.
Materials Colored sheets, felt pens, ball-point pens
30 minutes – filling in the instrument
Time
30 minutes – introduction and processing
Participants are given information about filling in the instrument and they support each other in this
approach.
Process
After filling in, they discuss the discoveries made and place them in the work context in potential project/
business teams.
• How was the process of filling in this instrument for you?
• What did you learn about you? What did you learn about the others?
Processing
• How can you use this information within the team?
• How did you work in teams?
Besides other instruments this exercise will bring more self-awareness to participants and the
Conclusions understanding of the fact that they cannot work efficiently without a good self-knowledge and the
permanent intention for personal development.

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LEADERSHIP- Blind triangle

The basic goal of this exercise is participants’ understanding the importance of being a leader,
Objectives
knowing leader’s qualities and using them in leadership

Depending on the size of the group, you may work with two subgroups of 8 persons each or
with a group of maximum 10 active participants and six observers. It is important that the
number of observers should not exceed the number of active participants since there will be
numerous interactions and debriefing management will be difficult. Find a sufficiently large space,
preferably in open air. Depending on the size of the group, divide it into two subgroups (8 persons
maximum). If you have a co-trainer, each of them will manage a group both during the exercise
and during debriefing. At the end of activity, you may propose an exchange of impressions
between the two groups. If there is not a second trainer, you may have two options:

- two active concomitantly active groups: You will select in advance two volunteers that will
Introduction be given certain instructions. Each of the volunteers will observe a group. Groups will stay at a
certain distance between them so that communication may not be disturbed but in such a way so
that they may be observed by volunteers. Volunteers may give penalties, if necessary.

- an active group and observers: you may work with eight or ten persons maximum, the
other members will be volunteers so as to observe the activity. Each volunteer will be in charge of
a specific charge (e.g. time keeping, penalty, leadership etc.).

When the group is ready and arranged in a line with a rope tied up at both ends and placed on
the ground, you must give each participant a scarf to blindfold. Instructions will be given when
everyone is blindfolded (if your group has little experience in doing this type of exercises, you may
explain the conditions until they are blindfolded so as to facilitate the task).
One (or two) 30 meter long rope(s) knotted at its end, one scarf per person to get blindfolded, a
Materials
watch or a chronometer

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 30 minutes for the activity and two halves 15 minutes each for debriefing if there are two groups of
Time
observers or 30 minutes if there is one group of observers

Ask participants to concentrate and read just once in a loud and intelligible voice the following instructions:

The objective of this group exercise is to make an equilateral triangle, namely a triangle with three equal
sides and angles. One angle of the triangle must face north. All participants must stay in contact with the
rope. You must use the entire length of rope. You must use the simple and not double rope. You shall not
untie the knot. If someone lets go the rope they will be penalized by their exclusion from the group for 3
minutes. You may start when you hold the rope in your hands and when I move you to a safe space”.
- Do not answer participants’ questions after instructions have been given. You may shortly read
instructions again, if necessary.
- After you give the rope to each participant, guide them by means of this rope to another place and
ask them to turn around so as to get disorientated.
Process
- If you penalize anyone with exclusion from the game for 3 minutes, don’t tell anything to them and
don’t give any piece of information to the group. If the penalized person does this, accept that.

- The game ends when the entire group agrees that the goal has been attained by raising their
right hand to indicate their agreement. If one participant did not raise their right hand, do not accept
the decision and reject the group until they make a common decision. If the group did not manage to
complete the game, interrupt them after 30 minutes.

It is very important that you (together with each observer, if any) observe and write down the game phases,
the diverse leadership behaviours, the roles taken that were more or less useful by mentioning penalties.
This requires presence and maximum focus for a constructive debriefing. Take notes. Do not intervene to
save the group if you notice that there is a disturbing or chaotic atmosphere. Stay neutral.

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If the two groups worked simultaneously with one trainer, use the aquarium method: the first group sits in a circle together with the animator
and observer. The members of the second group stand in a circle around the first circle silently observing the discussion. This allows them to
perceive the group phenomena, mainly what happens on a general level. After the 15 minutes of debriefing have run out, ask the exterior
group to tell whether they have comments or observations without referring to their own experience in that exercise. Then, change the groups.
Resume the process for 15 minutes.

- Choose a figure from 1 to 10 to define your level of frustration: 1 – very low level of frustration, 10 – very high level of frustration. It is
important to discuss the gap between figures: the larger the gap, the higher the discomfort state that prevented the group from fulfilling the
task.

- How did you feel during the activity? Emotions, frustration, enthusiasm, motivation etc. ask two persons who gave extreme choices to
argue their choice. Was the exercise goal very clear from the very beginning? Did you have a common clear vision before starting it?
Processing
- Could you identify the person who took over the group management and when did they do this?

- Which behaviours contributed to finding the solution?

- Which behaviours blocked, tensed or disorientated the group?

- What did you understand about the role of leadership after the completion of exercise and how are you going to use it in your activity?
- What changes would you bring if you repeated this exercise?

Ask participants to tell the difference between leader and leadership and an efficient leadership means in their opinion. Describe together the
leadership model and the three components thereof. Give examples of real cases.
Source: http://tdh-moldova.md/index.php?l=ro

This exercise is just an example of the way in which to start the discussion about the leadership concept and how it can be used by the future
Conclusions
social innovators.

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Methods

RELATIONSHIP HYGIENE
Objectives Understanding the importance of maintaining some positive relationships with those around you
Since social innovation is not a domain of individual work, it is important for participants to
receive information about how they can manage relationships and interactions in a positive way
Introduction The exercise proposed here comes from E.S.P.E.R.E. (Energy Specifically Providing an Essential
Relational Ecology) method created by the French sociologist Jaques Salome, who wanted to offer
people a way of communicating viably easily and efficiently.
Scarves of different colours, materials, sizes
Materials
Soft toys, symbolic objects that can be symbolized
15 minutes – role play
Time
30 minutes – processing
At the beginning you will introduce the theme and goal of the exercise. The facilitator will ask the
participants to present in plenary a conflict situation that might be met in the future work context.
This proposal may be one that happened in reality or not, but it has a conflict character and may
prevent the good functioning of a team. After having established the topic of the role play, 2
volunteers among the participants will stage this conflict.
After they are reminded the topic, it will be emphasized once again that this is just a part and the
scene is acted spontaneously. While the scene is acted they will keep in mind the toxic messages
the participants are telling each other, the manner of expression or the way they address etc.
Process At the end of the sketch, they will use the relational scarf as follows: volunteers are asked to
pick up out of several types of scarves one that symbolizes their relationship in the sketch. Each
volunteer will keep hold of the scarf end as this symbolizes the relationship between them. You
will discuss the symbolist elements (colour, material, how the scarf is held etc.), then by means of
some symbolic objects you will explain how messages circulate within a relationship, how toxic
messages may be returned symbolically, replaced by gift messages etc. then you will introduce
E.S.P.E.R.E. specific concepts and may also discuss other cases of conflict.
Source:
http://www.jacques-salome.ro/ESPERE.htm

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 • How did you feel during this exercise?
• What connections to your personal/professional life did you make and can you share them?
Processing
• What are the main ideas that you bore in mind about this conflict management method?
• How will you use in the future the concepts learned in this exercise?
E.S.P.E.R.E. method is a vast method of understanding the interpersonal relationships and it is used by
specialist in the field of personal development/psychology. By consulting this material, the information
Conclusions corresponding to the link given above you may adapt some ideas and facilitate the transmission of
the principal message to the participants. The use of another method for interpersonal interaction
management is also welcome on the condition that you attain the objective of the session.

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PUBLIC SPEAKING AND PITCHING

Attention: Neither this chapter nor other similar materials even entire books or
libraries of communication and public speaking guidebooks will help the reader
speak better in public; they will at the very most help them build the trust to speak
in public.
What can help the reader speak better in public? Experience and real practice,
feedback and applying the feedback received.
How can anyone acquire this experience? There are several methods, each of
them with their advantages and disadvantages, therefore with their different degree
of efficiency and efficacy. The main methods are loud voice reading, speaking and
rehearsing in front of the mirror, rehearsing within a restrained circle, video and
audio recording or video + audio recording and watching it subsequently, sending
the recording to trustworthy persons or persons experienced in this field for feedback,
one-to-one effort with mentors, consultants or specialized coaches, participating to
workshops, training courses, public speaking courses and/or regularly going to a
public speaking and leadership club, for example within Toastmasters International
network.
Just like in other specialized fields, a certain skill may be improved only through

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Public speaking
Public speaking is a ski that may
be acquired by periodic exercise and
constructive feedback. Rhetoric is an art.
This material will focus on the skills to speak
in public confidently and not on the art of
rhetoric.
Emotion management
Before taking the first steps in public
speaking there are emotions. Even the most
experienced public speakers have emotions.
The good part is that these emotions are very
useful in the right quantity. Why? Because
they make public speakers be humane,
approachable and friendly. Nobody likes
listening to a robot, people need to listen
to people having feelings and showing their
emotions. If emotions are good, why is
public speaking so difficult when emotions
appear? This is mainly because emotions
may be excessive, because people are not
sufficiently confident in their own skills and
because they do not know the advantages
of emotions.
Methods by which emotions may be
better managed:
Indirectly emotions may be best managed by
acquiring better confidence in one’s public
speaking skills which may be improved
through repeated exercise and by applying
constructive feedback.
Directly, emotions may be managed by:
- the thorough preparation of the speech,
especially the introduction and conclusion,
which provides confidence. The preparation
of the introduction helps the speaker pass
more easily through the most thrilling part
of a speech, namely the introduction, as
it is the first contact with the audience. If
the public speaker knows their introduction
very well, they may manage emotions more
easily form the very beginning of the speech.
- through the visualization in minute details
of the speech delivery in front of the audience
is often a kind of speech rehearsal;
- through the use of gestures, facial
expressions or stage movements so that
emotions may dissipate naturally. If stage
movements or gestures do not have precise
purpose, they are often repetitive and betray
excessive emotions. When they do have a
purpose they help chasing away emotions
without showing them.
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There are also other techniques for emotion
management. The most efficient is the
periodic practice and acquiring confidence
in public speaking; each individual may
look for other techniques to manage their
emotions and may try them one by one to
discover what works best in their particular
situation.
Speech structure helps enormously
efficient communication in public speaking
meaning that the message transmitted
reaches more easily the audience and is
better understood. There is not any ideal
structure for speeches; in exchange there
are more or less adequate structures for
the type of speech selected and for the
speech objectives. The classical structure
contains the introduction, the body and the
conclusion. There are also other types of
structures such as effect, cause, solution;
problems, solution, expectations; part,
present future, and spatial (closer, farther
and even farther).
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For an as good classical structure as
possible (of the type introduction, body, and
conclusion) we recommend the beginning
of the speech with the body by writing the
speech with an oral or dictated language.
After having established the body, it is
more easily to choose the most adequate
introduction to draw the attention and the
proper conclusion to pinpoint the most
important ideas or for action promoting.
Many public speakers do not attain their
objectives and fail to transmit their ideas
efficiently because they do not have a
well established structure of the speech.
Structure, especially the conclusion and
the introduction are maybe the most often
overlooked elements of a speech.
Among the introduction, body and
conclusion, the most important part of
a speech is the conclusion because the
audience remembers it while the rest of
ideas in the body and the introduction are
quite rapidly forgotten; the conclusion is
speaker’s chance to create a long-lasting
impression, to urge for action or to concisely
transmit the idea(s) of the body.
With an introduction, body and conclusion
well designed and exercised any speech will
attain its goal. To elaborate the introduction,
body and conclusion, it is necessary to know
audience in terms of age, interests, gender,
professional qualification, experience,
expectations, and culture etc. the better
you know these details about the audience,
the better you will elaborate the message
of your speech and it will be received. The
information you need to know your audience
is often in organizer’s possession and it may
also be obtained by other classical research
methods (internet, Facebook, YouTube).
Nonverbal language refers to gestures,
face mimicry, stage movement, posture
and eye contact. Used adequately, all these
elements may sustain the message that is
intended to be transmitted by speck delivery,
and may dissipate excessive emotions. If the
elements of non-verbal language are used
purposefully they may help chasing away
emotions without this thing being obvious,
but if they are used without the aim to
underline or emphasize the message they
can still dissipate emotions only that they are
dissipated in an obvious manner. Eye contact
may contribute to the confidence perceived
by the audience in the ideas transmitted
and consolidate public speaker’s credibility
just as proper clothing, adequate language
and the sources used and quoted and
organizers’ introduction may help as well.
Vocal variety plays a major role in a speech
as it avoids a monotonous presentation, may
draw attention to the most important aspects
of the speech and may transmit emotions.
The aspects relating to vocal variety that must
be taken into consideration when preparing
and delivering a speech are rhythm, volume,
tone, clarity and, last but not least, pauses.
Pauses may be used to signal the audience
that something important is going to follow
or after something important such as the
conclusion has been said, you may leave
a short period of time to the audience to
digest the idea.
The balance in using diverse vocal variety
techniques is attained only by practicing
and experimenting during the preparation
of speech. There is no other way of using
efficiently vocal variety than frequent
practice.
Pitching
What is a pitch? A sort of succinct and
persuasive speech often ended with a
succession of questions and answers about
the idea or the project presented
What makes it be different from other
types of speech?
It is different due to its specific quite flexible
structure; it is often sustained by visual aids
in the form of a PowerPoint presentation
and ends with a short session of questions
and answers.
What is the goal of a pitch? There are
several goals, the main far reaching goal
being to obtain a financial or advisory
support or a reference etc. For this reason, a
pitch is a persuasive speech. The immediate
precise goal of a pitch is to obtain a
subsequent meeting where to discuss
concretely and in detail the desired support
(financial, recommendation, consulting,
mentoring etc).
What makes a persuasive speech be
different from other types of speeches?
By the fact that is not only has reasonable
arguments but also uses emotional
arguments by trying to achieve a balance
between the two argumentative approaches.
How can reasonable arguments be
used to be most credible? By the use of
plausible, primary or reference sources and
more important than sources is the
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confidence with which the presentation/
pitch is delivered. The confidence in one’s
own idea or project is essential for a truly
persuasive speech.
How can emotional arguments be
used? By presenting a personal story
already integrated at personal level and by
diverse tricks representing voice inflections,
therefore vocal variety.
There are many occasions where you must
draw the attention of some people in terms
of your business idea – especially when you
want to obtain financing.
If you want to obtain money for your business
or only want to improve your business
strategy, a fast and solid presentation is an
essential instrument to attain your goals.
The fast presentation may be delivered
verbally, ideally in 60 seconds or even less,
or as a general one page presentation of
your business. Think of the fast presentation
as of a summary providing a rapid image on
your business and detailing the reasons for
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which you will be successful.
We will present some of the concepts that
must be included in a pitch and what you
need to avoid and we will let you design
and make short presentations in front of
your colleagues.
1. Problem
The most important thing is to identify
a problem that is worth solving. If your
product or service doesn’t solve a problem
that potential customers have, you don’t
have a viable business. Simple as that.
Now, you don’t have to be solving a massive
problem where the solution will change
the world. That’s great if you are tackling
such a problem, but for most businesses,
that’s not the reality. Problems can be
simple—and that’s OK. As long as you, as
an entrepreneur, are solving a problem that
customers have, you can build a business.
Try and distill your customer’s problem down
to its simplest form. Ideally you should be
able to describe the problem you are solving
in one or two sentences, or potentially a few
bullet points. In the long run, your company
may solve multiple customer problems, but
initially you will be more successful if you
just focus on one core problem.
2. Solution
Too many entrepreneurs start with a
solution: a product or service that they think
the market needs without first identifying
the problem they are solving. As a smart
entrepreneur, you can avoid this mistake
by first making sure that you are solving a
real problem that customers actually have
before you define your solution (see point
one).
Once you have clearly defined the problem
you are solving, you need to explain your
solution. A clear problem statement will
help you focus your solution on solving that
one problem, and not stretch the solution to
solve multiple potential problems.
Again, try and distill your solution description
down to as few words as possible. You
should be able to describe your solution at
a high level in just a few sentences or bullet
points.
3. Target market
As you define the problem you are solving,
you should naturally be thinking about the
potential customers who have this problem.
In the Target Market section of your pitch,
you will define exactly who has the problem
you are solving and figure out how many
potential customers you will be trying to sell
to.
You should try and divide your target market
into segments—smaller groups of people
whom you expect to market to.
Once you have created a good list of target
market segments, you’ll need to do a little
research and estimation to figure out how
many people are in each segment. Next,
try and estimate what an average person
in each group currently spends each year
on their current solution to the problem you
are solving. Now, just multiply the number
of people by how much they currently spend
and you will have a realistic “market size”
number or your target market.
In your pitch, you will want to talk about the
market segments you are targeting, how
many people are in each segment, and the
total amount they currently spend. These
numbers are critical and must be part of any
good pitch presentation.
4. Competition
Every business has competition. Even if no
one has come up with a solution similar to
what you have come up with, your potential
customers are solving the problem they
have with some alternative.
For example, the competitors to the first cars
weren’t other cars but horses and walking.
As you think about your competition and
existing alternatives, think about what
advantages your solution offers over the
competition. Are you faster, cheaper,
better? Why would a potential customer
choose your solution over someone else’s?
Describing your key differentiators from your
competition is a great exercise and ensures
that you are building a unique solution that
customers will hopefully choose over other
alternatives. These differentiators will also
help you focus your marketing on the key
value proposition that you offer that your
competitors don’t.
Bear in mind that social innovators
are competing with all sectors. Highly
important: you should not speak badly
or criticize competition because if you do
so you may jeopardize your own idea as
subjectivism is obvious; you may just as well
easily underline what makes the difference,
why it is better like this, what customers or
consumers may win from the relation with
the idea/product/service presented. Thus,
the presentation may put the speaker in the
right professional light.
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5. Team
As great as your idea is, only the right team
will be able to effectively execute and build
a great company.
In the “team” portion of your pitch, you
should talk about why you and your
business partners are the right team to
execute on your vision and why your team’s
skill set is precisely what is needed to lead
your company to success. People often
say that a company’s leadership team is
more important than the idea—and this is
often true. No matter how great or unique
your solution is, if you don’t have the right
people on board, you won’t be able to see
it to fruition.
It’s also OK to not have an entire team in
place. It’s more important to understand
that you have gaps in your management
team and that you need to hire the right
people. Knowing what your team is missing
and recognizing that you need to find the
right talent to fill the gaps is an important
trait in any social entrepreneur.
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6. Financial summary
For a great pitch, you don’t necessarily have
to show a detailed five-year forecast. What’s
more important is that you understand your
business model.
“Business model” may sound like something
complex, but fortunately it’s not. All you
need to know is who pays your bills and
what kinds of expenses you will have. For
example, if you are starting an online news
site, the customers that pay the bills are
your advertisers. Your costs will be writers,
graphic designers and web hosting. As you
learn more about your industry, it is certainly
helpful to put together a sales forecast and
expense budget. You will want to ensure that
you can build a profitable company based
on your assumptions. But, for your pitch, a
detailed forecast isn’t necessarily required.
7. Milestones
The final key element of your elevator pitch
is conveying your business milestones, or
your schedule.
Here you will want to talk about your
upcoming goals and when you plan
to achieve them. If you have already
accomplished notable milestones, you
should mention those. For example, if
you have invented a new medical device,
potential investors will want to know where
you are in the clinical trial process. What
steps have been accomplished and what’s
the projected schedule for final approvals? If
you are opening a restaurant, investors will
want to know about plans to sign a lease,
design the interior, and open for business.
Talking about upcoming milestones in your
pitch makes your business a reality. This
section of the pitch illustrates how well you
have thought through the detailed steps it’s
going to take to open your business and
start making money.
8. Question and answer session
For a successful question and answer
session, the best answers to many questions
do not come on the spot but anticipating
them long before the presentation before
the committee. Anticipating questions
and preparing the answers to them from
home are important components of a
persuasive speech of pitch type. How can
we anticipate best the potential questions?
- by rehearsing the speech/presentation
within a very realistic framework, in front
of a competent audience and maybe, the
most important, by knowing the committee
members (biographies, experience, photos,
clothing, psychological profile (personality,
temperament, character), interests, common
friends, carrier, studies etc.). The better you
know the evaluation/financing committee
members, the better you may anticipate
questions and prepare clear and concise
answers.
How can one open the question and
answer session?
One may use the following questions: “Who
has questions to ask?” vs. “What are your
questions?” vs. “Who wants to start/break
the ice with the first question?” The second
variant is very efficient and efficacious.
How can one answer the questions
coming from the investors or the
committee members? We could do a
training course and a workshop only on this
topic. In brief, there are several principles
and tricks that deserve being used when
answering questions coming from the
audience:
You must start your answer by looking
straight into the ones of the person who
asked the question, but you will not keep
the eye contact only with that person
because you risk losing the attention of the
others involved in the discussion. When
you finished your answer, you may turn
your eyes again to the person who asked
the question and ask: “Did I answer your
question?” The nonverbal language matters
more than what the person asking the
question says. If the answer is affirmative
and the nonverbal language is congruent
to the answer then you may go to the next
question; if the answer is negative or the
nonverbal language is not concordant with
the affirmative answer (they do not seem
convinced when you look at them) then
you will resume the answer in other words,
more succinctly and from another angle so
that boredom may not occur. After having
resuming the answer, you automatically go
to the next question through a very elegant
transition, such as “it is time for another
question”.
A useful trick is not to give grades and not to
mention how good a question is because you
risk hurting other people that may consider
that their question was not so good, though
it was very important from their perspective
and for the reason they asked it. Granting
grades to questions is not even an efficient
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strategy to buy some time and to prepare
an answer; a better strategy to buy some
time is to rephrase the question in your own
words for the audience in the hall, if there
is no microphone, it could not be heard or
just to make sure that the question was fully
understood.
Before the end of the question and answer
session you may tell the committee or the
audience that there is time left for only 1
or 2 more questions, and you may close
the session expressing your thanks for the
questions received.
How can one make sure that the
question and answer session will be
a successful one? – by exercise, a lot of
practice anticipating questions and answers
in a highly realistic environment.
The fear of difficult questions
If certain questions could be anticipated and
yet they were asked, it is not recommended
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to be afraid of these situations because they
are excellent opportunities to improve your
idea, business plan and/or the next pitch.
Pitching – hard earned lessons
Less is always more.
An elevator pitch is vital. Verbose
presentations and lengthy explanations will
not impress investors, and most likely will
turn them off. Present your business in a
manner that’s short, sweet and to the point.
Investors need to be confident that your
business will attract and retain customers.
If they don’t grasp your concept in a short
time span, they may presume that customers
won’t understand it either.
Never hypothesize. Execute, execute,
execute.
Inspire confidence with facts, not fiction.
Most investors seek out low-risk businesses
with proven managers that are as close to
guarantees as possible. A company with
cash flow, a track record and real-world
experience has a better chance of getting
investors than a business plan forecasting
large returns. Find ways to test your
business’s viability on a shoestring budget,
and turn your idea into a functional business
before you seek investment.
Keep it simple
Excite investors about your big picture, but be
reasonable and responsible. Avoid hockey
stick projections. Respectable investors will
not take you seriously if you present them
with nonsensical financial graphs that claim
your company’s revenues will grow from
£100,000 to £50 million in three years.
Show investors that you have a grasp on
reality with three versions of financial
projections: best case, moderate case and
worst case. Base each of these models on
facts, past and present performance data,
industry and competitor analyses and a
series of well-thought-out, defendable
assumptions. You should not speak badly
or criticize competition but only underline
what makes the difference, why it is better
like this, what customers or consumers may
win from the relation with the idea/product/
service presented.
Learn to love discount stores.
Being cheap is chic. In an age where
spending is out of control, you’ll need to
prove that you are a fiscally responsible
manager who knows how to get the most
out of a buck. Give yourself wiggle room in
your operations and marketing budgets, but
avoid being excessive. Never ask for a large
salary or big-budget perks. Investors want
you to be in a position where everything is
on the line.
Rome wasn’t built in a day. Your business
won’t be either.
Investors are wary of funding over-eager
businesses that seem destined to bite off
more than they can chew. Before asking
for millions of dollars to fund 50 divisions
and hundreds of product lines, prove how
well you can create, manage and fulfill
demand for a single product. Demonstrate
that your business can crawl before you
say it can walk. Perfect your marketing
tactics, sales strategies and operational
procedures. Investors appreciate companies
with sustainable step-and-repeat business
models that are poised for exponential
growth. Remember, even Google’s success
is based on a single product.
Choose not to be the smartest person in
the room.
Know what you know, know what you don’t
know and find the people who know what
you don’t know. Build a team of credible
experts. The smartest leaders in the world
are those who surround themselves with
smarter people. Investors are funding a
management team as much as they are
investing in a great business concept.
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PITCHING – DO’S
• Keep your pitch short, concise and
factual - around 5 -15 minutes long. Get
to the point.
• Provide visuals, either a tangible product
or visual images of your concept.
• Demonstrate the opportunity. Specifically
tell the panel you are pitching to exactly
how there is going to be a return on the
investment that’s made and demonstrate
why.
• Show your commitment. Explain clearly
and concisely what you have done and
what you intend to do next. Reveal
what you have given up, what you are
prepared to do and how determined you
are. Show how you will be sharing the
risk. Passion and commitment are vital
ingredients of a winning pitch. In the
entrepreneurial dictionary, action comes
straight after decision. Committing to
getting things done is an invaluable ally
on your road to success.
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• Be confident. An inner self belief is like
a foundation stone under the tallest
building. You need to convince potential
investors that you have the courage of
your convictions and why.
• Practice your pitch in front of a mirror
until you know it by heart and it is word
perfect. Practice in front of anyone you
can rely on to give you honest feedback.
Some business angel networks provide
dummy investor panels and workshops
to help entrepreneurs practice their
pitches.
• Persist. Dealing with rejection is all
about passion and conviction and never
giving up. When Thomas Eddison, who
invented the light bulb, was asked what
it was like to have failed 1000 times in
trying to invent it, he replied that he didn’t
fail; he just found 1000 different ways
not to invent the light bulb. That sort of
analogy is what it’s about, that’s the way
we should view life. Successful social
entrepreneurs have two undeniable
qualities, determination and persistence.
Develop a ‘keep on keeping on’’ ability.
• Protect your idea before entering a pitch
situation by an NDA (Non-disclosure
Agreement). You may find templates
of such contracts if you make a simple
search on the internet.
• Keep calm. Take five seconds to breathe
and let your pounding heart to slow
down. Look down if necessary. Compose
yourself. Silence is fine. Then, spring into
life.
• Exaggerate! Know your figures inside
out and off by heart. Be realistic about
the risks your business faces and turn
yourself into an expert on how to deal
with them.
• Come unstuck. Know exactly what
you’ll be spending the invested money
on and provide realistic valuations and
projections.
• Stop using your imagination. Once
your business is up and running your
imagination will act as a catalyst for other
 people’s imaginations. As long as your
imaginative visions and ideas remain
deliverable and realistic. An imaginative
leader is encouraging to those around
them.
• Look un-inspirational. Make me like the
look of you. Don’t look like you’re utterly
desperate for money or that you’ve
just been dragged through a hedge
backwards because you’re wearing
ripped jeans and a t-shirt. Wear a suit.
• Be condescending. Have confidence in
your idea but do not patronise those you
are seeking investment from.
• Argue. Do debate. There is a fine
balance between debating and arguing
with somebody. The minute you start
arguing with a potential investor, you’re
now in a state of conflict and it’s going to
go wrong for you very quickly as nobody
is happy to take part in a conflict or to
witness one.
Pitching – the 12 second pitch
Let’s say you’re at a dinner party and one
of the guests asks you, “So, what do you
do?” Can you answer in one sentence so
that they understand your company?
Being able to distill your company into one
simple sentence is incredibly valuable. It
helps you, as an entrepreneur, focus on
exactly what you do and who you’re doing
it for. It also helps you clearly market your
business. A simple headline at the top of
your website or brochures will communicate
the core essence of your company and
generate interest in learning more about
what you do.
This synthesis cannot be obtained right
away, it requires an interactive and gradual
process, and the synthesis will get better
and better as it gets refined.
Examples of Elevator Pitch:
https://www.youtube.com/
watch?v=i6O98o2FRHw
https://www.youtube.com/
watch?v=3xn88qYx0OQ
An example of an almost perfect business
pitch:
https://www.youtube.com/
watch?v=hWuzKOz_o4Y
A pitch for a Venture Capitalist:
https://www.youtube.com/
watch?v=18H5FBoGL3o
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CASE STUDY- MEŞTESHUKAR BUTIQ

FROM IDEA TO SOCIAL INNOVATION

Meşteshukar ButiQ ( MBQ ) is a network of social economy enterprises and an active

supporter of Roma traditional crafts. Meşteshukar ButiQ managed to bring a fresh
vision on Roma crafts and revive traditional products and objects with contemporary
design. Meşteshukar ButiQ produces and sells premium products, manufactured
using time-honored techniques but with a contemporary design, with prices ranging
from 5 to 1000 euro. The product lines include jewelry, clothes and interior design
objects.
Intended to meet contemporary needs of life reconnection and protecting of the
natural environment, products and services offered by Meşteshukar ButiQ involve a
clean raw material, knowledge of the craft passed through a long trial time, skilful
hands and an immediate utility. Each product sold is a direct income for the crafts-
men producing it.

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FINANCING
Mesteshukar ButiQ opened a store in down-
town Bucharest and an online store, mbq.ro.
The business strategy includes direct sales
b2b, special orders from design or architec-
ture studios, as well as resale partnerships.
In addition to the sales revenue, we receive
support from the ERSTE Foundation, CCFD-
Terre Solidaire and NESsT Romania in order
to fund our development and expansion.
In 2016, the sales revenue reached 60.000
euro. At an annual revenue of 70.000 euro,
the store in Bucharest is expected to be fully
self-sustainable in 2017.
PROMOTION
We’ve chosen two communications direction
for the Meşteshukar ButiQ. The first present
the social impact of our business, but also
on other social issues. The second one is
purely commercial, where we concentrate
on the products, the craftsment and the de-
signers. This is also our main focus in com-
munication.
We do public relations activities, we or-
ganize annual events in the store to mark
the launch pf the collections, as well as an
anniversary event. We also attend a series
of other renowned events such as Roma-
nian Design Week, Vienna Design Week
or Stockholm Design Week. In Romania,
we have participated in several editions of
the contemporary jewelry exhibition AUTOR
when launching our jewelry collections.
We are active on social media on Facebook
and TripAdvisor, in order to stay in touch
with our clients and especially to gather
feedback about our products and approach.
SOCIAL IMPACT
In Romania, the Roma population rep-
resents 6% of the total demographic and its
unemployment rate is 5 times higher than
that of the rest of the population. In terms
of social impact, right now we measure 3
major indicators*:
1. The number of craftsmen in the MBQ net-
work: 21 – 6 women and 15 men, plus 3
other people of Roma origin as members of
our team.
2. Number of MBQ clients: 904
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3. The value of sales revenue for the crafts-
men (money MBQ has paid for the products
sold). In 2016, this value was 148,500 RON
(33,000 EUR), approximately 130 euro/per-
son/month.
2. I would recommend that anyone who
would like to set up a social business try to
focus on the added value provided by their
target group. A social business is not a char-
ity.

*data available for 2016

A LESSON LEARNT

It is important to consider two things:

1. Although you might have a social

mission, without a business approach you
will not succeed. It is very easy to become
emotionally involved when working with
people who face various types of hardship.
A business mindset and the motivation to
make things work benefits everyone.

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CASE STUDY- NOD MAKERSPACE

FROM IDEA TO SOCIAL INNOVATION

The idea of launching a makerspace came from the awareness of the need of all
those who want to start doing something but they do not have the proper resources
to do that such as space, tools, financing, and people to work with or to learn from.
The need started from a large group of friends who are architects, urban experts, and
designers, a group of which Florin Cobuz (co-founder of Nod Makerspace) is also a
part, with whom we carry out many projects, one of them being Calup – a project on
urban regeneration, and we have noticed this need in a more open space through
Start Design-Up Campaign of 2014 held at Mincu workshop, in the Faculty of Archi-
tecture. The campaign was a call to designers for projects/objects that deserve being
made but which cannot be carried out due to the lack of courage or money.

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FINANCING
The total investment amounted to about
120,000 Euros out of which 40% were
sponsorships received from our partners in
the form of constructions materials, tools
and equipment. Saint Gobain – glass, plas-
terboard, cinder wool, Hornbach – materi-
als and tools, Epson – printers, plotter and
projectors, Telekom – free of charge infra-
structure and internet, For IT- computers,
Transparent Design – glass wall mounting,
MSL Group The Practice – PR consulting. We
subsequently invested about 15,000 Euros
in equipment.
We have not recovered our investment yet,
everything we earned was reinvested in de-
velopment and we will probably continue
our approach next year, too.
Last year turnover was 950,000 RON, and SOCIAL IMPACT
this year we expect an increase by 20%.
The long-term goal of this project is to cre-
PROMOTION ate opportunities for the improvement of
the local and global life standard and for
MSL Group The Practice helped us design the establishment of a strong open-source
an adequate communication and promo- community.
tion strategy, but we have not launched yet
an intensive promotion campaign. We have
used the media channels to tell about our
Nod project and positive answers have start-
ed to come, thus proving that the project is
a benefic one for the creative community.
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Our objectives for the next 3 years are as A LESSON LEARNT

follows:
The most important lesson was that money
• the development of the component re- is not as important as we thought it to be in
lated to learning (courses, workshops) the launching and development of a busi-
that may support the access of the pro- ness. The team and the synergies among
totypes produced within Nod on the de- its members are much more important. He
sign market; who wants to take up social entrepreneur-
• ship must put aside the thought of making
• the development of the incubator func- a large profit as soon as possible, must trust
tion for the business created within the their idea, inspire others with the dedica-
community; tion with which they start things and build a
• competitive team.
• the establishment of some synergetic
relationships with other activities in the
cotton industry.

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CASE STUDY- SOCIAL TEA HOUSE

FROM IDEA TO SOCIAL INNOVATION

Asociatia Training Store/3ning Store was set up in 2012 as an NGO operating in the
educational field which has developed so far programmes and projects dedicated to
the rural environment, entrepreneurship, and personal and professional develop-
ment. In 2014, after a training experience on entrepreneurship for the young people
of Bucharest, we identified a financing source dedicated to SOP HRD beneficiaries
– social economy willing to develop social economy structures that may integrate
people from vulnerable groups into the labour market. Starting from the idea of de-
veloping an interactive space that may also integrate cultural, educational and social
events adapted to different categories of beneficiaries – children, adults, young peo-
ple, we developed a teahouse that includes spaces for events. The people who have
worked since September 2015 in the social economy structure of teahouse/café type
that we have developed are individuals belonging to vulnerable groups – single-par-
ent families, families having more than 2 children and individuals who dropped
school early. The sustainability of the structure must be kept until December 2018.

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FINANCING
The initial investment was estimated to
about 500,000 lei with 2% co-funding from
the association and it was actually spent in
proportion of 70 % during the project pe-
riod. The financing came from SOP HRD
– the axis dedicated to social economy and
the integration of vulnerable individuals
into the labour market.
Now at about 1 and a half year since the
launch of the social economy structure, we
are in the period of investments made by the
founding members so that the part of eco-
nomic activity – in our case the teahouse,
may be kept afloat and cover some of the
current expenses of the location.
PROMOTION
The social impact is obvious by the fact that
the teahouse provides support to the vul-
nerable persons integrated in the labour
market – 4 individuals have been employed
until this date (April 2017) and they come
into contact with different persons, events,
and opportunities for training in the field
of food service, they have integrated into
the community; therefore, we may identify
progress factors in terms of the communi-
cation with customers, the spirit of initiative,
professional training as a commercial work-
er and management, and so on.
SOCIAL IMPACT
The social impact is obvious by the fact that
the teahouse provides support to the vul-
nerable persons integrated in the labour
market – 4 individuals have been employed
until this date (April 2017) and they come
into contact with different persons, events,
and opportunities for training in the field
of food service, they have integrated into
the community; therefore, we may identify
progress factors in terms of the communi-
cation with customers, the spirit of initiative,
professional training as a commercial work-
er and management, and so on.
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A LESSON LEARNT development because they may need sup-

port and invest a lot of time in it.
The experience of developing this type of
business – social economy structure of café/
teahouse type within a NGO taught us, as
experienced implementers, how important
the business vision is from the very begin-
ning – what we have developed along the
way, how important is to know the business/
domain you are developing and, above
all, how useful internal and external part-
nerships are in the development of such
a structure. The piece of advice given to a
young person interested in social entrepre-
neurship is to design a clear and well docu-
mented plan connected to the reality where
the business they want to develop is going
to operate, to identify the partners, the sup-
pliers and the people involved in business

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TEAHOUSE-1419690518285693/?FREF=TS

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CASE STUDY- MAMA PAN

FROM IDEA TO SOCIAL INNOVATION

MamaPan is a bakery with a social mission set up with the goal of creating jobs for
the women coming from economically and socio-professionally vulnerable groups
– mothers who raise their children by themselves and mothers having more than 2
children, single mothers belonging to the Roma ethnic group and having a difficult
life situation. The family situation, the appurtenance to the Roma ethnic group, the
social-economic difficulties, the lack of care services for children and the high costs
thereof, the discriminatory attitudes and the gender inequality lead to the difficulty
of finding a job and keeping it by bringing these persons in situations of marginal-
ization and exclusion. MamaPan has addressed the needs of this target category by
providing free of charge professional training as a baker, professional training at the
workplace and employment in the bakery by offering decent wages and a friendly
work environment. The bakery has established some atypical business hours for the
field of bread manufacture in order to allow its employees to manage their family
issues.
MamaPan also carries out “Pâinea este dar” programme of product donations for
women, children and families in difficulty which we are implementing as a CSR proj-
ect together with private companies.

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FINANCING
MamaPan bakery was set up within a Euro-
pean funding project that provided a sub-
sidy of about 180,000 Euros for a 6-month
period until November 31st 2015. The sub-
sidy covered all bakery’s operating costs
(personnel-related costs, the rent, utilities,
operational leasing, raw materials and
packaging, branding and promotion costs)
and a component of the necessary invest-
ments (purchase of oven and mixer). Cen-
trul Parteneriat pentru Egalitate Foundation
financially supported the setting up of the
bakery both by the co-funding brought to
the project in amount of 3600 Euros, and
by supporting other investment costs that
were not included in the project budget, in
amount of 20,000 EUROS.
Centrul Parteneriat pentru Egalitate Foun-
dation has been the only financier of the
bakery since December 1st 2015. After the
completion of the financing from European
funds, CPE invested into the bakery the sum
of 38,000 EUROS necessary for the opera-
tion thereof.
We estimate that the investment will be fully
recovered after 3 years since the beginning
of this business. Turnover is currently about
13,000 Euros/month, but this is an evolving
figure if we take into consideration the fact
that Mama Pan has not turned 2 years yet
since its establishment.
PROMOTION
Promotion is mainly carried out by:
• The Facebook page where we post the
events we take part into and the new
products we launch. The page has 6000
fans and counting;
• Participation to fairs specialized in
healthy and handmade food: Dichisar,
Agenda Bio, Bounty Fair, Raw Genera-
tion, etc;
• Tasting session and sales in companies;
• Organizing the Open Days every month,
an activity which includes dough model-
ing workshops for children.
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SOCIAL IMPACT
We currently have 6 female employees in
different situations of vulnerability, and a
number of 10 day-care centres to which
we donate bread and bakery products each
week.
As for the future, we intend:
• to increase the number of female
employees in different situations of
vulnerability from 6 to 10 (7 persons for
production and 3 persons for distribution/
sale).
• to keep the current salary level or even
to increase it and to create other facilities
for our employees.
• to develop and expand the system of
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product donations either directly to A LESSON LEARNT
women and families being in social
difficulty or by increasing the number of It is important to provide high quality
customers who may buy our products in products and/or services and to have a
order to donate them, at their turn, to constant market for what you supply. These
some social cases. two elements represent premises for a
• to make the large public aware of social sustainable business beyond the social
entrepreneurship with the benefits dimension.
and obstacles it encompasses, and to
encourage ethic consumption.
• to change mentalities in terms of the
people coming from vulnerable groups
who may be desirable employees if they
are offered a proper context.
• to carry out a sustainable business that
might support other activities of the
foundation (empowerment programmes
for girls being in vulnerable situations).
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STUDY VISIT OVERVIEW

INTRODUCTION

As part of the Social Innovators Programme, in late March 2017, 20 participants

from Romania and the Czech Republic were selected to participate in an internation-
al mobility, a study visit in Edinburgh, Scotland.

The study visit was structured to build upon the training programme delivered in
Romania and Czech Republic and to offer individuals additional learning to enhance
their learning to date, to give physical examples of social innovations that are al-
ready occurring and to make contacts that will be available for future mentoring.

The study visit was a mixture of meetings, presentations (from social innovators in
Scotland and from the participants about their social innovations), self study and
leisure activities.

The 9 day study visit allowed the participants to get fully immersed in the social
innovation “scene” in Edinburgh, Scotland, to integrate with delegates from each
country, creating real long term cross border relationships, and enjoy the exceptional
cultural opportunities available.

The use of ice breakers/energiser sessions was also essential in order to break down

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MAKE UP OF THE PROGRAMME WELCOME AND RECAP

The objective of the opening day was to

set the scene for the study visit, to answer
any questions and hand out materials that
would be useful over the subsequent days.

This was also where the training materials

developed, translated and delivered were
reviewed and evaluated.

The afternoon session of this day was where

the participants presented the social inno-
vation businesses they were in the process
of establishing, giving people a chance to
ask questions and feed back.

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FURTHER TRAINING
Although optional for a study visit, we
believed that this was a chance to add in
a further training session and give people
additional tools to use.
The session was delivered as a workshop
with a lot of participant involvement and
materials available to be taken away for
use.
PRESENTATIONS BY SOCIAL
INNOVATORS
We planned 2 half day sessions with a chat
show approach to learning. With 4 social
innovators per session talking about the
journey they had made from start to present
day and allowing for questions and answers.
Feedback from this session was that it was
useful because this was real people talking
about the real situation and the delegates
could relate to this.
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Another positive outcome from this session
was the idea to replicate one of the projects
in Czech Republic and the contact made
was essential
PLACEMENTS
The idea behind this day was to offer learning
from social innovators in organisations
closely matched to those of the delegates.
The partners in Romania and Czech Republic
provided lists of delegates and their social
innovation idea or business in advance and
this was used for setting up placements in a
1-to-1 (or 1-to-2 in some cases) setting, in
their work places, giving a greater insight
into the running of the social innovations
and how the social innovators operated.
This took the learning from hearing to
seeing.
FOLLOW THE MAP!
EDInet developed walking maps around
central and north Edinburgh for the
delegates to visit customer facing social
innovations and see what they did and ask
questions.
The delegates went around in groups of
4 (2 x Romania and 2 x Czech Republic)
and started at different times and points to
ensure that the social innovations weren’t
over faced, and also so that the delegates
could debate the social innovations amongst
themselves.
The idea was to put the delegates in front
of as many social innovators/innovations
as possible and again see rather than just
hear, and make contacts for future dialogue
and potential collaboration.
COMPETITION ACTION PLANNING

Having spent the week seeing and hearing, The final session was to get the individual
we decided to finish off the learning part of delegates to assess what they learned during
the study visit by running a competition. the study visit and how they would use this
after they return home with any follow up
Social Innovation Competition - working in support they needed.
groups of 5/6, come up with innovations in
products, technologies, services and models
that can support the integration of refugees
and migrants. Ideas around:
• education and skills development
• employment and entrepreneurship
• access to appropriate housing/health
• safety and human rights
• community cohesion/cultural
diversity.

All groups presented their solutions and

how to get them to market and a prize was
awarded for the best solution offered.

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SIP GUIDE UK

SUMMARY OF KEY LEARNING

ë
Social innovations, that are both good for society and enhance society’s capacity to
act, take time to develop, grow and start to deliver positive outputs and outcomes
SUMMARY with the individuals and communities they work with.

Social innovators include founders who have direct experience of disadvantage such
as having experienced poverty, being disabled, having poor mental health, being
from an ethnic minority, being LGBT or having no formal qualifications.

In the spirit of true social innovation, organisations need support to help them get
started up, scaled up and sustaining.

The lead agency for social innovation in Scotland is The Melting Pot, Scotland’s
Centre for Social Innovation who aim to help communities generate their own
solutions to societal problems and stimulate the development of a genuine ‘melting
pot’ of talented social innovators.

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Research undertaken outlines four conditions
which are required to support the growth of
social innovations:
• effective demand
• effective supply
• effective strategies that connect ‘pull’ to
‘push’
• learning and adaptation
Barriers may emerge on a recurring basis
and thus call our attention to them. Four
specific challenges have been identified
that need to be addressed in order for social
innovation to thrive, offering support to
actors at all stages of the ‘Social Innovation
Spiral’:
• Exploring opportunities and challenges;
generating ideas:
• Developing and Testing; Making the case
• Delivering and implementing; growing,
scaling and spreading
• Changing systems
Any support provided (such as the Good
Ideas Academy from The Melting Pot) has
a policy fit with EU, UK, Scottish and local
governmental policy areas including:
community empowerment, economic
strategy, sustainability, social enterprise and
volunteering amongst others.
• Scottish Government’s Social Enterprise
Strategy 2016-26, which highlights need
• Scottish Government’s publication of
Scotland CAN DO followed by the Action
Framework
• TMP’s successful operation as a social
enterprise reflects the SG approach towards
Social Enterprise support and Place Making
aspiration for creative, collaborative,
development, renewal and regeneration of
urban and rural built environments.
• Other SG policy fields including the
Community Empowerment agenda;
• Social Enterprise in Scotland: Census 2015
Organisations involved in supporting social
innovators look to address the societal
needs surrounding poverty and exclusion by
harnessing and promoting social innovation
more effectively within the Scottish
ecosystem.
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SOCIAL INNOVATORS PROGRAMME – our story

COORDINATOR AND PARTNERS Rotaract Bucuresti (RO) together with Edinet (UK)
and Ustav (CZ)

IMPLEMENTATION PERIOD The Social Innovators Programme Training Guidelines

(SIP E-Guide), a complete training manual for organizations to use in order to pro-
vide social innovation and social entrepreneurship trainings for young people.

Social Innovation in Romania

According to the European Commision social innovation means developing new

ideas, services and models to better address social issues. It invites input from public
and private actors, including civil society, to improve social services.

Social Innovators Programme began 2015 as an entrepreneurial education proj-

ect developed by AsociaTia Rotaract Club BucureSti (Romania) in partnership with
organizations from Scotland (European Development Innovation Network) and the
Czech Republic (Ustav socialnich inovaci funded through the Erasmus+ program, as
a strategic partnership in the field of Youth.).
PROJECT ACTIVITIES
1. Social Innovators Programme – our story
Social Innovators Programme began 2015 as an entrepreneurial
education project developed by AsociaTia Rotaract Club
BucureSti (Romania) in partnership with organizations from
Scotland (European Development Innovation Network) and the
Czech Republic (Ustav socialnich inovaci).
2. Educate to innovate in 3 steps – Piloting, Training,
Implementing
Over the course of two years, we have worked to create a
training manual on social innovation and social entrepreneurship
by transfering know-how from Scotland to the Czech Republic
and Romania, adapting the information received to the social
and economic context of the two countries, but more importantly,
to the local reality of young people.
• We have had 3 transnational meetings – in the Czech Republic
(2015), Scotland (April 2017) and Romania (November 2017)
• Creating, translating, adapting the training materials and
menthodology – December 2015 – July 2016
• Piloting the training materials and methodology –September
2016 – July 2017
Rotaract Club Bucuresti and Ustav socialnich inovaci organised
3 training sessions, supporting young people to develop their
social innovation projects.
• Study visit in Scotland – March-April 2017
20 young people, selected based on the project proposals
from among the participants in the training sessions, went to
Edinburgh, Scotland, for an advanced 9 day training course
during which they met entrepreneurs and discovered social
innovation projects
• SIP Ideas in Action – June 2017 Social Impact, Leadership and Communication, Pitching and
Multiplier seminar with over 45 people presents, representatives Public Speaking
of youth organizations and young people interested in 3. On-site visits to social innovation initiatives.
developing social innovation projects. The agenda included a
project presentation followed by sessions dedicated to the Social Future perspectives
Innovators Programme Training Guidelines (SIP E-Guide). A
similar multiplier seminar was organized by Ustav socialnich We encourage organizations to use the Social Innovators
inovaci in the Czech Republic. Programme Training Guidelines (SIP E-Guide) and organize
• Social Innovation Day – final conference – November 2017 social innovation and social entrepreneurship trainings for young
The final conference brought together stakeholders involved in people.
social economy and youth education in order to support young Reach out to us via the website and we will answer your
people in developing their own social innovation projects. questions, provide information and offer support to help you
implement a social innovation training course for young people.
3. Social Innovation and entrepreneurial education
workshops Young people + education + social innovation
The project result is the Social Innovators Programme
Training Guidelines (SIP E-Guide), a complete manual which
= Change makers!
organizations can use to implement social innovation and social
entrepreneurship trainings for young people.
The SIP E-Guide features:
• Theoretical materials on: Social Innovation, Marketin
and Branding, Financing, Legal and accounting for socia
initiatives, Social Impact, Leadership and Communication,
Pitching and Public Speaking,
• Training methodology using non-formal methods of
education, and not only Social innovation case studies from
Scotland, the Czech
• Republic and Romania.
The training course format is structured as follows:
1. Non-formal education activities,
2. Speaker sessions on Social Innovation, Marketing and
Branding, Financing, Legal and accounting for social initiatives,
  “This project has been funded with
support from the European Commission.
This publication reflects the views only
of the author, and the Commission
cannot be held responsible for any use
which may be made of the information
contained therein.”