sivakumar @ ubs cle 11 sep 2008

8/9/2019 Sivakumar @ UBS CLE 11 Sep 2008

1/16

Community Leadership Experience

2008 Workshop

Hyderabad, 11 September 2008

Keynote by Sivakumar, ITC Limited


2/16

Challenges outlined by the Participants

1. Attracting, training and retaining right quality of

human resources

Including strong second line

2. Raising the required financial resources

3. Managing operations professionally

Efficiently utilising human & financial resources

4. Engaging the Board effectively5. Promoting leadership at the community level

6. Scaling up the Organisation


3/16

Themes Covered in Various Sessions

Leadership Governance

Financial Management


4/16

What should I cover in the Keynote?


5/16

No problem can be solved

from the same level of consciousness

that created itEinstein / Emmet Fox


6/16

In that context,

,

which are off-beat


7/16

The Two Thoughts

Create Wealth(not rely entirely on grants)

Leverage Partnerships(beyond grant makers)


8/16

Creating Wealth

Traditionally, most non-profits relied on resources

donated by people & institutions beyond their control

More recently, some non-profits have tried to support

their mission by creating wealth themselves

It comes not from gifts, grants, annual dinners,

auctions, and bake sales

but from profitable enterprises and partnerships,

revenue sources similar to those of an ordinarybusiness but directed to social betterment rather

than shareholder value


9/16

The Best Practice

Community wealth building usually begins with a two-part process

First identify assets that you can use to raise revenue

and then find opportunities to so use them Assets should be viewed broadly, both as things

you have and as things you do.

- ,buildings, and work space certainly make the list

But so do intangible assets such as brands,methodologies, expertise, access to markets,

distribution systems, and a particularly skilled orinexpensive workforce

Other ideas, such as a consulting service or a retailbusiness, lend themselves to direct business

ventures by nonprofits


10/16

A Template (by Bill Shore, McKinsey)


11/16

Non-profits and Businesses should be partners

In the market economy that has historically excludedseveral segments of the society, non-profits play thecritical role of bridging the divides and catalysing

balanced development

In most instances where development succeeded,business played the role of an engine, as business kick-

starts a virtuous economic cycle new enterprises are formed, new jobs are created,

new skills are gained, and incomes begin to rise

Growth and productivity follow, spurring more

innovation and efficiency and generating the productsand services that people want and need

In parallel, people gain opportunity, empowerment,and dignity


12/16

But, why dont we partner enough?

Because we fail to see the simple truth that there is no hope for development without

business,

and in the long term there is no hope forbusiness without development

says, Rajat Gupta of McKinsey


13/16

Fundamental Mistakes by Businesses

Obvious moral mistake of seeing profits but not

people

And a mana ement mistake, of investin onl

where there is a short-term return failing to build long-term markets and long-

term opportunities, the crux of business

success


14/16

Fundamental Mistakes by Non-Profits


15/16

In Sum

Partnerships for Better World


16/16

Thank You

sivakumar @ ubs cle 11 sep 2008

Documents