High Impact Corporate Programs: What Sets Leading Companies Apart

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Information about High Impact Corporate Programs: What Sets Leading Companies Apart

Published on January 29, 2016

Author: TCCGroup

Source: slideshare.net

1. Prepared by: What Sets Leading Companies Apart High Impact Corporate Programs Tom Knowlton, Partner; Erica Weinberg, Senior Consultant TCC Group

2. 2 AT TCC GROUP, OUR FOCUS IS ON HELPING ORGANIZATIONS ACHIEVE GREATER SOCIAL IMPACT. Our work looks at all aspects critical to success – from strategy to program development and implementation to evaluation and measurement. TCC Group: A Focus on Impact

3. 3 Our Clients

4. 4 ① Goals for the Meeting ② Framework for Successful Corporate Citizenship ③ High Impact Corporate Programs ④ Assessing and Developing Programs ⑤ Open Discussion Session Overview

5. Framework for Successful Corporate Citizenship

6. 6 Employee Engagement Stakeholder Trust Reputational Value Public Respect Corporate Citizenship Goals Business Goals are Realized by Achieving Social Impact Goals

7. 7 What Sets the Successful Companies Apart? The top corporate citizens have a culture that values corporate citizenship, and engaged leaders who reinforce it through their actions. o Citizenship programs are not conducted in isolation, but rather are developed within a broader citizenship strategy that is integrated throughout the company. o The strategy is driven by strong, engaged leadership, creating a culture that reinforces company values.

8. 8 ① Strong programs alone are insufficient for success. ② Effective citizenship strategy is informed by a broader context in which engaged leadership is the most significant element. Answer: 3 Key Takeaways ③ Companies should assess four elements critical to successful corporate citizenship before developing programs.

9. 9 Culture: Aligned with Values • Shared • Transparent IntegrationEngaged Leadership Programs • Stakeholder driven • Clear goals • Dual community & company ROI targets • “Internal shared value” • Clear stakes for all BUs, regions, and departments • Demonstrative • Continuous • Committed Programs and Strategy Must Be Informed by a Broader Context

10. 10 Effective corporate citizenship therefore requires four elements: ① Broad, organization-wide citizenship strategy ② Integration throughout the organizational structure ③ Engaged company leadership ④ A culture that recognizes the value of corporate citizenship What Sets the Successful Companies Apart?

11. 11 “Fundamental” Element: Strategy o Lack of clear goals o Unrelated issues o Focus on grantmaking o Stakeholder-driven goals o Issues aligned with company o Core resources leveraged

12. Community Impact Goals: Monsanto 1. Producing More: Developing improved seeds that help farmers double yields by 2030. 2. Conserving More: Developing seeds that use one-third fewer key resources per unit of output by 2030. 3. Improving Lives: Helping improve the lives of farmers and the people who depend on them, including an additional 5 million people in resource-poor farm families by 2020. 12

13. 13 “Fundamental” Element: Integration Top-down or driven solely by citizenship team Engagement & accountability from units across the company

14. Wells Fargo Structure: created/organized/led by Government and Community Relations Department (foundation, community relations, environmental affairs, stakeholder engagement) o Enterprise Stakeholders Council: Understanding and influencing reputation management issues company-wide o Enterprise Stakeholders Council Working Group: Resource for the ESC council; assess and gather research and information o Reputation Management Committees: Building reputation in local markets 14

15. 15 “Accelerator” Element: Engaged Leadership Leaders actions not communicating company values; citizenship seen by employees as lower importance Engaged leaders trusted and respected by employees and stakeholders

16. Dina Gerdeman, HBS, “Pulling Campbell’s Out of the Soup” March 2013; http://hbswk.hbs.edu/item/7133.html It was hard for me to imagine that we could inspire high performance with no employee engagement. “ ” I had to go out on a limb and talk about my vision for going forward in an uncomfortable way. “ ” Before you have the moral authority to lead your team, you have to inspire trust. “ ” … ‘winning’ on two fronts--in the workplace and in the marketplace. “ ” Campbell’s: Doug Conant, Former President & CEO 16

17. 17 “Accelerator” Element: Culture • Low employee engagement • Low motivation • Lack of credibility behind citizenship efforts • High employee engagement • Pride in company • Belief in company values

18. Aetna & John W. Rowe, Former Chairman & CEO Katzenbach, Steffen, & Kronley, Harvard Business Review, “Cultural Change that Sticks”, July/Aug 2012 … Leverage...the employees who are already aligned with their strategy and desired culture. “ ” … Culture as a competitive advantage—an accelerator of change, not an impediment. “ ” You can’t trade your company’s culture in as if it were a used car. “ ” Culture must be measured and monitored.“ ”

19. High Impact Corporate Programs

20. Criteria

21. 21 BUSINESS RELEVANCE • Meets/exceeds stakeholder expectations • Issue(s) are/is a priority to stakeholders, particularly employees • Alignment with company focus and strengths • Alignment with/relevance to the company and its business model (consider resources, externalities, physical presence, capacity/skills, etc.) STRATEGIC GOALS AND CLEAR METRICS • Impact potential and ROI • Clearly defined goals with realistic potential to achieve (or evidence of achieving) results (social and business) that can be measured on the targeted issue(s) STRONG CAPACITY • Capable Partners • Strategic leveraging and selection of partners including grantees (considering business and social implications simultaneously) that help achieve social impact goals. • Internal Capacity • Programs are aligned with internal capacity around leadership, culture, and integration STAKEHOLDER ENGAGEMENT • Communications – internal and external • Transparency and strategic messaging that informs and engages in a credible way Characteristics of Impactful Programs

22. Best Practice Examples

23. High Impact Program: Unilever Lifebuoy: Help a Child Reach 5 1. Background: 1,600+ children under five die each day from diarrhea caused by the inter-related issues of poor sanitation, hygiene and unsafe water. Washing hands with soap is one of the most effective and inexpensive ways to prevent disease 2. Aim: Reduce diarrheal disease by changing the handwashing behavior of 1 billion people in Asia, Africa, and Latin America by 2020 3. Method: Utilize Unilever’s strengths as a CPG provider and established brand to promote the benefits of using soap and washing hands through consumer, employee and public policy advocacy programs

24. BUSINESS RELEVANCE Meets/exceeds stakeholder expectations • Four years of double-digit growth for Lifebuoy Alignment with company focus and strengths • Increased hand washing  Increased soap use • Uses core product to decrease preventable disease STRATEGIC GOALS AND KEY METRICS Impact potential and ROI • 257 million people reached since 2010, (74 million were reached in 2014) • Soap consumption growth of 11% after rural community outreach program STRONG CAPACITY Capable Partners • USAID (distribution expertise) • Maternal and Child Health Integrated Survival Program (community health expertise) • Events partners (increased visibility): • UN General Assembly • Regional water, sanitation and hygiene summits Internal Capacity • Understanding of triggers, barriers and motivators that generate sustained behavior shifts STAKEHOLDER ENGAGEMENT • Reach stakeholders in villages: children, teachers, parents, expecting mothers, community members High Impact Program: Unilever Characteristics of Impactful Programs

25. MEETS/EXCEEDS STAKEHOLDER EXPECTATIONS • Handwashing program has driven four years of double-digit growth for Lifebuoy ALIGNMENT WITH COMPANY FOCUS AND STRENGTHS • As a CPG provider, Unilever benefits directly from the increased soap usage aligned with increased hand washing and can decrease preventable disease with one of its core products • Unilever’s strength in innovation makes hand hygiene easier and more interesting for children, so that they are more likely to adopt good handwashing practices from a young age. High Impact Program: Unilever Business Relevance Increasing handwashing will further increase the use of Lifebuoy Stronger business performance will enable delivery of better hygiene to more people Vision for more hygienic, healthier and ultimately more vital communities through increased handwashing

26. IMPACT POTENTIAL AND ROI • Goal: Change the hygiene habits of one billion people in Asia, Africa and Latin America by 2020 • 257 million people reached since 2010, of whom 74 million were reached in 2014. High Impact Program: Unilever Strategic Goals and Key Metrics Example 1: Uttar Pradesh, India •Soap consumption grew by 11% after a rural community outreach program was implemented, compared to a 1% growth in soap consumption in a similar, neighboring state where the program was not implemented. Example 2: Malaysia •From March to June 2011, 80 “Little Doctors” were recruited to educate 150,000 children. The program was backed up with mass media and involvement by celebrities and key opinion leaders to raise the profile of hygiene in Malaysia generally, with the campaign reaching an audience of over 14,000,000. Make a positive contribution to society while protecting the planet for future generations Draw resources and innovation to make program even bigger, benefitting both businesses and communities Deliver better hygiene to more people If more people buy soap, the market for this product increases

27. CAPABLE PARTNERS • NGO partners provide monitoring/evaluations; Governments/schools increase ability to scale • Event partners such as the UN General Assembly; regional water, sanitation and hygiene summits, Global Handwashing Day, World Toilet Day, and International Women's Day provide visibility INTERNAL CAPACITY • As a leading producer of consumer goods that people use every day, Unilever brings its understanding of the triggers, barriers and motivators that generate sustained behavior shifts. High Impact Program: Unilever Strong Capacity Partner Example 1: Neonatal Program • USAID provides distribution expertise • Maternal and Child Health Integrated Survival Program provides community health expertise Partner Example 2: Water & Sanitation for the Urban Poor (WSUP) • WSUP provides implementation expertise and engenders local trust • In Bangladesh, WSUP helped the Lifebuoy brand launched its 21-day School of 5 activation pilot campaigns in urban and rural areas • In Kenya, the Lifebuoy brand team co-hosted a workshop with WSUP, attended by key government sanitation and education departments to discuss and agree the best way to implement the Handwashing Behavior Change Program in Kenya. Internal Capacity Example: Unilever 4-Step Process • New methodology to drive sustained behavior change. • Developed using the Lifebuoy brand’s experience gained over many years through its programs in Asia and Africa, the new approach ensures that people not only understand why washing hands with soap is important but also rewards them for practicing the new habit over 21 days.

28. • By running behavior change programs among all the main stakeholders in villages – schoolchildren, teachers, parents, expecting mothers, community members – Unilever has been able to achieve a dramatic reduction in disease • By partnering with other Unilever brands, Lifebuoy is able to offer key stakeholders, such as schools, governments and NGOs, a comprehensive and cost-effective package of behavior change to address fundamental health needs • Lifebuoy continues to establish mutually beneficial partnerships with private and public sector organizations worldwide, which are key to a successful delivery of the behavior change agenda • Shared commitment to health and hygiene • Throughout the Lifebuoy brand’s heritage of running hygiene promotion programs, the Lifebuoy brand team has built valuable hygiene marketing skills; In order to share its knowledge and skills with public sector partners, the team has developed a skills development program to illustrate that, by working together, Lifebuoy campaigns can have a greater impact on promoting positive behavior change. High Impact Program: Unilever Stakeholder Engagement

29. High Impact Program: Pfizer Alliance for a Healthy Border 1. Background: Nationwide, Hispanics are almost twice as likely to have diabetes as non-Hispanic whites. In some border locations, the diabetes rates are 2.5x the national average. – Cardiovascular disease accounts 31% of all deaths in the Hispanic population nationwide with the highest rates occurring in the border region 2. Aim: To reduce modifiable risk factors associated with diabetes and cardiovascular disease along the U.S. - Mexico border. – To establish and/or expand existing cardiovascular disease and diabetes prevention program targeting the Hispanic and Latino population along the border and to promote best practices in the prevention of these diseases – Align with CDC’s cardiovascular health goals 3. Method: Provide support to 12 federally qualified community health centers and six community foundations in selected cities along the United States- Mexico border to help them establish or expand programs designed to prevent diabetes and cardiovascular disease among the Hispanic population.

30. BUSINESS RELEVANCE Meets/exceeds stakeholder expectations • Focus on elimination of health disparities through community investment Alignment with company focus and strengths • Focus on relevant diseases to core business • Leverage company resources and knowledge to decrease preventable diseases STRATEGIC GOALS AND KEY METRICS Impact potential and ROI • Positive behavioral changes that lead to improved health outcomes • More than 4,000 adults received intensive intervention and participated in the evaluation • Over 48,000 persons screened during community health fairs or other community outreach activities STRONG CAPACITY Capable Partners • Federally qualified U.S. community health centers and community foundations • Community foundations and state secretaries of health (Mexico) • Events partners (increased visibility): • American Diabetes Association, American Heart Association, CDC, National Association of Community Health Centers, Pan American Health Organization, US Mexico Border Health Commission • Congressional Hispanic Caucus, Governors, League of United Latin American Citizens, La Raza Internal Capacity • Understanding of disease states and prevention measures STAKEHOLDER ENGAGEMENT • Build partnerships with stakeholders in health and advocacy organizations High Impact Program: Pfizer Characteristics of Impactful Programs

31. MEETS/EXCEEDS STAKEHOLDER EXPECTATIONS • Build and strengthen relationships with key stakeholders (health and governmental organizations,, politicians, advocacy groups) • Position Pfizer as a credible partner in addressing health disparities ALIGNMENT WITH COMPANY FOCUS AND STRENGTHS • Focus on relevant diseases to core business • Leverage company resources and knowledge to decrease preventable diseases High Impact Program: Pfizer Business Relevance Allocate resources to focus on health disparities Enhance reputation and gain credibility with key stakeholders Position Pfizer as a strong partner in addressing health issues in underserved populations

32. IMPACT POTENTIAL AND ROI • Goal: reduce modifiable risk factors associated with diabetes and cardiovascular disease along the U.S. - Mexico border. • Discover which programs had positive health outcomes and then find best practices from those programs that could be shared (e.g. bilingual layperson intervention and follow-up) • Signal to key stakeholders and public at large that Pfizer has a vested interest in prevention High Impact Program: Pfizer Strategic Goals and Key Metrics Example 1: Decreased Body Mass Index (BMI) • After 6 months, 77% of all participants had decreased BMI from baseline Example 2: Decreased Fasting Glucose • After 6 months, 61% of all participants reduced their fasting glucose Provide support to proven programs in each community ($160K per health center over two years) Focus on individual behaviors toward physical activity, nutrition and disease prevention Deliver culturally- sensitive educational programs Behavioral changes leading to improved health outcomes like lower glucose level, BMI and cardiac risk factor

33. CAPABLE PARTNERS • Federally qualified community health centers are trusted organizations in communities • UT Pan-American is a credible evaluation partner in the region • Partners such as ADA, AHA, National Council of La Raza and Congressional Hispanic Caucus provide visibility INTERNAL CAPACITY • Leverage resources and leadership position to highlight health disparities and share knowledge to prevent disease and improve health outcomes High Impact Program: Pfizer Strong Capacity Partner Example 1: Congressional Hispanic Caucus •Testify before the Caucus to draw attention to and highlight the issue of health disparities •Share best practices to promote prevention of diabetes and cardiovascular disease Internal Capacity Example: Alliance for a Healthy Border Conference •Pfizer-sponsored conference for grantees and other organizations •70 community health centers and organizations, CDC, US Mexico Border Health Organization, National Hispanic Caucus State Legislators, Health Secretaries of Mexican Border States

34. • Supporting trusted healthcare providers was key in achieving positive health outcome changes • Assist health centers with capacity-building • Partner with key stakeholders to highlight issues of disparity and promote best practices • Leverage Pfizer’s position to bring issues to the forefront High Impact Program: Pfizer Stakeholder Engagement Example 1: Events with Health Centers and Key Political Figures •Bill Richardson and a community outreach event in New Mexico •Surgeon General Carmona as keynote speaker at Alliance for a Healthy Border Conference Example 2: Promote the Initiative at National Conferences •National Hispanic Medical Association Annual Conference, LULAC’s National Convention & Exposition, La Raza’s Annual Conference, National Community Health Center Week, the Congressional Hispanic Caucus Public Policy Conference and the Bi-National Health Week

35. Assessing Your Program

36. 36 Each of the Four Elements Brings a Crucial Attribute to the Citizenship Efforts LEADERSHIP Supported STRATEGYImpactful CULTURE Credible INTEGRATION Aligned

37. 37 Assessing Strength of the Framework Strength of the Accelerators (Culture & Engaged Leadership) Strength of the Fundamentals (Integration & Strategy) Fundamentals outpacing accelerators = UNSUSTAINABLE PROGRAMS Accelerators outpacing fundamentals = UNUSED POTENTIAL SUCCESSFULLY ALIGNED PROGRAM

38. 38 BUSINESS RELEVANCE • Meets/exceeds stakeholder expectations • Issue(s) are/is a priority to stakeholders, particularly employees • Alignment with company focus and strengths • Alignment with/relevance to the company and its business model (consider resources, externalities, physical presence, capacity/skills, etc.) STRATEGIC GOALS AND CLEAR METRICS • Impact potential and ROI • Clearly defined goals with realistic potential to achieve (or evidence of achieving) results (social and business) that can be measured on the targeted issue(s) STRONG CAPACITY • Capable Partners • Strategic leveraging and selection of partners including grantees (considering business and social implications simultaneously) that helps achieve social impact goals. • Internal Capacity • Programs are aligned with internal capacity around leadership, culture, and integration STAKEHOLDER ENGAGEMENT • Communications – internal and external • Transparency and strategic messaging that informs and engages in a credible way Assessing Programs Against Criteria

39. Business Relevance: Identifying Priority StakeholdersPower/Impacton Company LOWHIGH HIGHLOW Stakeholder Interest in Corporate Citizenship Local Communities Consumers Government NGOs Employees Scientists Stakeholders can be prioritized by many different variables, depending on your company’s situation and the pressures it faces: • Level of power/impact on the company; level of publicity/ability to influence others; value of relationship to the company • Level of interest in corporate citizenship issues Example:

40. 40 Prioritization of expectations Issue selection Clear Goals with buy-in from senior leaders EFFECTIVE CITIZENSHIP STRATEGY leveraging company’s unique assets EMPLOYEES External Stakeholders Engaged Leadership External Stakeholders Respect and Trust Company Engaged Employees With Pride in the Company Business Relevance: Meeting Stakeholder Expectations PROGRAM STRATEGY

41. 41 Strategic Goals and Clear Metrics: Aligning Program Goals with Company Goals Corporate Citizenship Vision Corporate Citizenship Issues/Focus Areas Environmental Sustainability Diversity & Inclusion Responsible Bus. Processes: Compliance, Ethics, Political Involvement Health: Alignment with Business Focus on Health Issues Community: Consistent Regional Approach Employee Engagement: Recruitment, Retention, Morale WHAT ARE THE COMPANY’S ACTUAL GOALS FOR EACH OF THESE ISSUES?

42. 42 Strategic Goals and Clear Metrics for Programs IMPACT If these benefits to clients are achieved, then certain changes in organizations, communities or systems will occur OUTCOMES If you accomplish your planned strategies, then clients will benefit in certain ways OUTPUTS If your strategies are fully implemented and of high quality, then the amount of service/product will be produced STRATEGIES If you have the necessary resources, then you can use them to implement the strategies RESOURCES/INPUT Resources needed to operate your program effectively and efficiently External Influences & Related Programs IMPACT EXAMPLE: Clean, sustainable environments for the communities in which we operate; Improved reputation with priority stakeholders

43. Developing a New Program

44. 44 Building a Major Program/Initiative Strategy: Outline Analyzing/Understanding the issue • Working with internal and external experts to assess and understand the issue Defining outcomes and metrics • Utilizing an outcomes framework Developing the strategy • Assessing possible approaches/options • Developing the strategic approach Building the implementation plan

45. 45 UNDERSTAND THE ISSUE AND THE LANDSCAPE: • Issue Expertise - Consider working with an advisor or issue-based expert to identify levels of the problem, priority needs, potential solutions, and metrics for progress • Do you have internal knowledge and expertise on the issue? • Do you need credible advisors to better understand the issue and engage with stakeholders? • Landscape Assessment - Assess the landscape of organizations and companies addressing the issue • What are your competitors doing? • What roles are needed to address the issue effectively? • What are the strengths and weaknesses of the organizations currently addressing the issue? • What is the potential role for your company? What is the potential for significant impact? Assessing the Issue

46. 46 IDENTIFY POTENTIAL STRATEGIC APPROACHES: • Compile a list of possible interventions and the role your company could play to address the issue taking into account the following factors: • Business Relevance • Relevance to your assets • Relevance to your expertise • Impact • Potential impact from your company in this role • Geographic scope necessary for impact • Need • Need for new entrants • Capacity • Potential partners • Resources • Financial commitment • Time commitment Steps for Moving From Outcomes to Strategies: Identify Strategic Approaches

47. 47 Business Relevance Social Impact Need Partner Capacity Resources Alignment with stakeholder expectations Relevance to expertise and assets Potential company impact on issue Geog. scope Need for new entrants Potential partners Financial commit Time commit APPROACH #1 Lead role Partner role Supporter/ funder role APPROACH #2 Lead role Partner role Supporter/ funder role Selecting Your Strategic Approach: A Decision Scorecard

48. Open Discussion

49. 49 THANK YOU Tom Knowlton knowlton@tccgrp.com

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