Could This Business Model Change the World?

Businesses are built to generate value. NGO’s are built to generate change. Team them up, and you usually get a bad compromise. Until now…

More and more businesses are exploring ways to do good,
whether it be by behaving with greater social conscience, seeking to lessen
their environmental footprint, or both.


There’s only one problem with this business-as-savior
model. That is, businesses weren’t designed to be saviors.

Certainly, you can tweak the model, introducing measures
that write sustainability and social conscience right into the company DNA.

But you keep bumping into the fact that businesses are
best when they’re focused on building shareholder value.

Audette Exel

This fact wasn’t lost on Audette Exel. A no-nonsense Kiwi
with an incredible pedigree as both a banker and lawyer, Exel wanted to make a
positive impact but kept running into the limitations of the business model.

At the same time, she knew NGO was not the way to go.
Although they seemed to have a better grasp of the complex systems that
enveloped social or environmental problems, NGO’s couldn’t realize their potential
because they were constantly strapped for cash.

So, in a move that underlined her common sense and can-do
attitude, Exel built one of each.


Chocolate, meet peanut butter

The ISIS Group includes several businesses that operate
in niche areas of legal, consultancy, and corporate finance. The
ISIS Foundation
, meanwhile, is a not-for-profit that focuses on improving the
lives of children in the developing world.

ISIS Foundation

Here’s where the real innovation comes in. The Group is
also the “engine” that funds 100% of the administration, infrastructure, and
emergency project costs incurred by the Foundation. Both the business and
not-for-profit are run from the same offices, with day-to-day involvement by
the same management teams.


As Exel says “This enabled us to tap great finance people
who wanted to do good. Instead of sending them to build homes for the poor, we
told them to simply continue doing what they did best–making money.”

The millions of dollars they made went directly into
projects to help children. As a result, ISIS has saved, or dramatically
improved, hundreds of thousands of young lives.

Exel likens it to Venus and Mars thinking. Alone,
businesses and NGO’s can’t grow beyond their natural scope. Blended, they end
up compromising their original strengths. But co-existing and working together
toward a common goal, they can truly perform as unique partners.


So why isn’t everyone doing it?

Exel is the first person to acknowledge hers model is far
from perfect.

“You need enlightened people on both sides to make it
work. Even so, there are big differences that need to be overcome.”


Businesspeople, for example, often fail to appreciate
that humanitarian solutions are more complex than business solutions. And NGO
thinkers have a hard time seeing businesspeople as partners.

Issues like compensation are also thorny. As Exel says
“How do you value the money maker, versus the money spender?”

Still, in a world grappling with conscious capitalism,
the ISIS model is a great step in the right direction.


Why didn’t I think of that?

Exel’s business model seems self-evident–in hindsight.
But in fact, it was the result of great innovation thinking.

And like every great innovation, it comes with learnings:


* Every innovation starts with an insight. And every
insight comes from an unmet need. Learn how to find those unmet needs.

* A great insight needs to be answered with a great idea
to blossom. ISIS answered the need for social enterprise with a solution that
enabled both its Foundation and business to shine.

* Fail fast, fail forward. Audette Exel knows her model
isn’t perfect. Every day, she challenges her team to hone it.


About the author

Marc Stoiber is a creative director, entrepreneur, green brand specialist and writer. He works with clients to build resilient, futureproof brands. Marc's leadership positions have included VP of Green Innovation at Maddock Douglas, President and Founder of Change Advertising, National Creative Director of Grey Canada and Creative Director of DDB Toronto