We believe that social entrepreneurs can create transformative change if given the right combination of financial and strategic resources, along with access to critical networks.
Our approach to portfolio management focuses on integrating these critical components to help organizations develop and grow sustainable models of impact and deliver superior results. Navigating Growth
New Profit has built a framework for understanding and evaluating an organization's progress on the path to becoming a high-impact, sustainable institution. Our framework—The Growth Diagnostic—defines three stages of growth post start-up phase. Characteristics of each growth stage include:
- Growth Stage 1: honing the program model; experimentation and testing of the innovation to determine which program elements drive social impact
- Growth Stage 2: building the delivery model; developing and testing an efficient, scalable delivery model; deepening understanding of program elements that drive social impact
- Growth Stage 3: scaling for widespread impact; building the organizational systems and processes required to grow and drive widespread social change
We work with organizations as they navigate challenges and track their progress along this trajectory based on five major areas—impact and innovation, growth, leadership and governance, organizational strategy, and metrics. The Growth Diagnostic Tool enables portfolio managers to assess the development of each portfolio organization, and to then prioritize and focus strategic support where it is most necessary. Resources for Strategic Support
New Profit provides each organization with a dedicated Portfolio Manager and access to Monitor consulting support. Each New Profit portfolio manager takes a board seat and acts as a day-to-day advisor to the organization, building a partnership with the social entrepreneur and creating an action plan tailored to the organization's needs. The strategic support each portfolio manager provides assumes a variety of forms, from refining the social change model and helping source talent, to helping to develop and coach the board. In addition, our partnership with Monitor Group enables us to bring additional support to bear, including and strategic growth planning and executive coaching for the social entrepreneur.
This combination of resources is deployed to provide support in the following areas:
- Social Change Model Development: clarifying beliefs about the target problem, long-term vision, barriers to change, and approach to creating the desired impact
- Growth Planning: developing a multi-year plan for growth of direct and widespread impact; helping inform a growth capital campaign
- Performance Management: establishing enterprise-level performance targets using the Balanced Scorecard
- Leadership Support and Organizing for Growth: facilitating the recruitment and development of the senior team and board of directors; designing organizational structure, decision rights, and processes to support growth
In addition to these areas of support, portfolio organizations are given access to critical networks through the Action Tank. At the annual Gathering of Leaders
, social entrepreneurs connect with New Profit investors, philanthropists, foundation leaders, policymakers, and business leaders to remove organizational and national barriers to growth and impact. The America Forward initiative brings social entrepreneurs together to advance a policy agenda and create an infrastructure for social entrepreneurs and government to act together to scale the impact of solutions that work.