Next Generation Consultants provides consulting services to organizations in the community investment and development sectors. They conduct research on global and local trends and forecasts in these areas. Their 2016/2017 report identifies several prevailing trends between 2013-2016, including the resource squeeze due to scarce funding, an upward spiral of increased need, and the need for advocacy to address systemic barriers. Other trends include demands for increased transparency about outcomes, acknowledging the true costs of operations and grantmaking, and greater scrutiny of governance and financial practices. The report also notes emerging issues like data visualization, online engagement, leadership and skills challenges, and experimentation with new organizational structures for social good.
2. Who we are:
Next Generation Consultants helps organisations to
become more responsible and sustainable.
In the community/social investment and
development sectors - we provide consulting and
advisory, research and engagement, training and
facilitation, impact assessment and due diligence
services.
We have developed the Impact Investment Index™
- a methodology that measures the impact and
return on investment of community/social
investment.
We are recognised as industry/subject experts and
thought leaders within the sustainable/social/
community development sectors.
2016/04/10 Next Generation Consultants 2
Please see: http://www.slideshare.net/Reana1/measuring-impact-and-return-on-investment-of-corporate-social-investment-and-community-development AND
http://www.slideshare.net/Reana1/evidence-of-impact-and-return-on-investment-40906503
3. Background:
• Our vision
• To continuously contribute to increased socio
economic impact and ensure enhanced shared value
• Our Context
• Global research – both developed and developing
countries with a specific focus on continental and
regional trends
• Local interpretation – considering emerging global
best practice and combining it with indigenous insight
and knowledge
• Research methodology - literature reviews, personal
interviews with key influencers and recognised leaders,
focus groups with intermediaries and beneficiaries,
internet surveys
• Benchmarked
• Our Impact Investment Index (III)™ also informs our
trend report. The III consists the outcomes of our
impact assessments which have considered over R3
billion worth of social/community investment. Over
600 programs, 15 focus areas, 15 dimensions of impact,
25 dimensions of return, and a library of more than
5000 indicators.
2016/04/10 Next Generation Consultants 3
4. To recap:
2013/2014
Trends
A brave new world - Evidence of
collaboration
Flipsides of the coin - Increased
giving/increased expectations
Lean and mean - Impact and
outcome of the recession
The next BIG thing - ESG, Impact
Investment, SharedValue, SED,
Social Entrepreneurship
The war on ideas -The growth of
flagship/signature programs
Green/Blue is the new black -The
rise of funding for the environment
Alphabet Soup -The rise of
governance and compliance
NewAge Stuff - SET committees,
Baseline Studies, Human Rights
based funding, Engagement, new
guidelines
Hindsight is perfect sight -
Spectacular failures, theory of
change vs theory of practice vs
theory of grantmaking
Dangerous half truths - Poverty
alleviation vs Poverty reduction vs
Poverty eradication
Fixation on Numbers - Overemphasis on
quantitative impact
Dichotomies - Scalability vs focus,
replicability vs results, responsiveness vs
responsibility
Keeping up with the Jones’s - New vs old
investment/development models
Volunteerism is cool - Growth in
employee/customer/supplier/network
involvement
Please give that man a fish -The end of
cliché’s
I know what you did last summer -
Community activism
Local is lekker - Local heroes/local place
based development
Status quo is not an option - Failure of current
M & E practices
A horse-A horse for my kingdom - Ethical
grantmaking
Two hills ahead
What we know vs what we don’t
know
What we say vs what we do
2016/04/10 Next Generation Consultants 4
Please see: http://www.slideshare.net/Reana1/csi-professionals-briefing-2014-trends
5. To recap:
2014/2015
Trends
Cross Roads orTipping
Point
Between the rock and
hard place – budget
cuts, program cuts,
resource cuts, new
competitors, legislation
and compliance
The good, the bad and the
ugly
The Good - Sweet spot
– integrating
economic,
environmental, social
development
The Bad – unsuccessful
development models,
lack of engagement,
lack of evidence
The ugly –
discriminatory,
unethical, failed
programs
It’s all about business -The business
of funding vs the business of
development
It is not business as usual -
Accountability, transparency,
governance and compliance
dominates
Heightened focus on performance -
Proof: Demonstrate impact, return,
successful, measurable, meaningful
Growing focus on issues - Holistic,
integrated, systemic/sustainable
development
Creating shared value -The
business of business vs the business
of development
Follow the (development plan) -
Youth, skills, infrastructure, local
economic development, national
development plan
2016/04/10 Next Generation Consultants 5
Please see: http://www.slideshare.net/Reana1/2015-trends-and-forecasts-corporate-social-investment-and-community-development-40906549
6. Whatis
evident:
More of the
same won’tbe
good enough
Whatis
required:
New thinking–
newmodels –
new
knowledge
2016/04/10 Next Generation Consultants 6
THINGSARE NOT CHANGING
THINGSARE NOT CHANGING
FAST ENOUGH
THINGSARE GETTINGWORSE
8. Government:
The strategic goals of the
DSD is:
Review and reform
social welfare services
and financing
Improve and expand
ECD provision
Deepen social
assistance and extend
the scope of the
contributory social
security system
Enhance the
capabilities of
communities to
achieve sustainable
livelihoods and
household food
security
Strengthen
coordination,
integration, planning,
monitoring and
evaluation of services
More than half of all
households in SA
benefit from
government’s social
assistance program
SA’s social assistance
system is one of the
largest in Africa and is
government’s most direct
means of combating
poverty. Spending
accounts to 3% of GDP
and is projected to rise
from R118 billion in 2014
to R145 billion by 2016.
The child support and old
age grants are the 2
largest programs –
constituting about 75% of
total spending.
Others are the War
Veterans, Disability, Grant
in Aid, Foster Child and
Care Dependency grants
The NDA focus on food
security, ECD, ED and
income generation
programs
The NYDA focus on
national youth services,
education and skills
development
2016/04/10 Next Generation Consultants 8
Social Development: Pocket Guide 2014/2015
9. Funders:
Changing role of funders
Forecasters, particularly from northern Europe and the US, report
that ideas about the role of philanthropic capital are changing. 3
Distinct types of grantmakers are evident:
Reactive or Demand-led: Funders judge applications on merit
and are responsive to demand
Compensatory or Deficit-led: Strategy based on clear
‘deficiencies’ – which may have received little previous funding
Instrumental or Interventionist: Clear about project intent
and impact – funding is aligned with strategy.
Changing focus
Funding for HIV/Aids – this is no longer seen as a disease that
kills but instead about getting access to preventative
medicines – this changes dynamics and many funders are
pulling out of HIV funding, and the Global Fund is also shifting
its focus of countries and priorities.
Equality on grounds of ethnicity is coming back into the
spotlight.This is increasingly happening in the US, South
Africa, Brazil and parts of Europe.
2016/04/10 Next Generation Consultants 9
10. NGO’s:
Economic uncertainty – increased volatility and shocks
Board representation (demographics) is a concern - (youth,
diversity, inclusivity)
Changing relationships and responsibilities between
government, private sector and development sector – i.e.
government abdication of service roles, non-payment on
contracts, rise of social/impact investment/bonds
Increasingly competitive environment
Effectiveness of collaborating in networks are questioned
Changes in stakeholder accountability expectations
Advocacy – a role that needs to be taken up again
Changing customer demand and expectations
Rapid technological change
Demographic shifts
Evolving regulatory frameworks
Cyber security
2016/04/10 Next Generation Consultants 10
11. Wildcards:
There will be less support for ‘softer’ projects, as
part of a bigger trend.We may instead see more
specific big issue ‘harder’ projects.
Funders think many topics that are difficult to
fund (social justice and cohesion) and complex
(requiring multiple stakeholders/ long term/
systemic issues to address) will suffer from
reduced funds.
Issues affecting women are being downgraded in
importance and visibility.
Changing funding models - More participatory
funding vehicles will emerge in 2016, with a
particular focus on marginalised populations and
possibly as a way of hearing children's’ voices.
2016/04/10 Next Generation Consultants 11
13. Enough
evidence:
SILOED RESPONSES and PATHWORK PROJECTS
Social impact has been designed and is delivered across multiple
departments, sectors and jurisdictions, often without coordination
Short-term, ‘single-dose’ interventions, annual projects/ pilot projects
that do not take off and uncoordinated project funding have led to
patchwork responses with little significant impact
THE DESIGNOF PROGRAMMES IS MOSTLY BUDGET-DRIVEN
RATHERTHAN NEEDS-DRIVEN
Although differences between companies exist, the vast majority of SI
programmes are developed based on the available budget, rather than
what is needed to achieve a company’s social objectives.This is contrary
to virtually all other aspects of corporate operations, where the available
budget is determined based on what it takes to reach the proposed
objectives.
NON-ENGAGEMENTWITH STAKEHOLDERS
Programs designed ‘for’ communities dominate the service delivery
landscape.Consultation is often the apex of community engagement,
and users of services have little say in the ongoing design, learning and
evaluation of services that, in the end, are about affecting change in their
lives
LACK OF EFFECTIVE MEASUREMENT OF PROGRESS
Many services are not effectively evaluated, and if they are - the analysis
of their impact is not shared with other service providers or stakeholders.
Therefore it is hard to know if and how things are improving, and it is
harder still to learn from failures
2016/04/10 Next Generation Consultants 13
14. Let the
figures
speak:
Since 1994 – budget spend on social services has
increased by 15% from 45% to 60% (of total
national budget) in 2014/2015
Education accounts for 35% of the social services
budget DOWN from 49%
Health accounts to 21% of the total social services
budget DOWN from 23%
Social security (most of which is social grants)
accounts for 30% UP from 21%
It is predicted that in 2016/2017 18 million people
will receive social grants
In 2009 the number of people in receiving social
grants overtook the number of people employed.
By 2013 there were 90 people employed for every
100 people in receipt of social grants
2016/04/10 Next Generation Consultants 14
Source: Please sir, I want some more … IRR/CRA May 2015 Research
15. Let the
evidence
speak:
Education
85.5% of schools are no-fee schools attended by 73.2% of all
pupils
BUT more than 700 000 pupils drop out of the schooling
system per year
Health
Very little gains have been made
Severe malnutrition among under fives (below 60% of
expected weight for their age) have come down BUT 40% out
of every 1000 children still suffers from severe malnutrition
The proportion of households with adequate food access has
decreased by only by 2%
Maternal health – 2584 women died in child birth, during
pregnancy or during delivery or termination of pregnancy
SimilarlyTB has worsened – the infection rate has doubled
since 2012
HIV/Aids between 2002 and 2014 - the number of people living
with HIV increased from 4 to 6 million
Basic services –
The number of people receiving free water increased by 53%
The number of people receiving free electricity increased by
28%
2016/04/10 Next Generation Consultants 15
17. Top 3Trends:
1. THE RESOURCE SQUEEZE:
One prominent trend that began with the Great Recession will
continue its drain in 2016: scarce financial resources.
2. THE UPWARD SPIRAL OF NEED:
The dramatic decline in government funding increased
demand for services, as communities and individuals continue
to struggle and look to non-profits to provide basic services.
This trend continues notwithstanding increased social security
spending by government due to job losses, increased interest
rates, increased cost of living.
The upward spiral of need for basic services is likely only to
increase in 2016, while the resources that non-profits have
available to them will continue to be squeezed.
3. ADVANCING MISSIONSTHROUGH ADVOCACY:
The significance of the first two trends heightens the need for
both funders and intermediaries to advance their missions
through advocacy.
Advocacy is a means to address systemic changes and
influence policy.
It is now recognized and acknowledged that the greatest
barriers to progress are current government policy
environment and the current economic climate. If non-profits
and funders are serious about bringing things “to scale,”
advocacy is the way to achieve it.
2016/04/10 Next Generation Consultants 17
18. Trends 4 – 6:
4. INCREASEDTRANSPARENCY ABOUT OUTCOMES:
Because of the intense competition for financial resources, and
donors’ desire to know where their contributed money is
going, it continues to be important for all stakeholders in the
value chain to be transparent about not only their finances, but
also their outcomes.
5. OWNING OUR COSTS:
In 2014, the overhead myth started to burst about how much it
really costs to run the operations of a non-profit.
Similarly in 2015, the real cost of funding and grantmaking
came to light because of reporting requirements.
In 2016, we anticipate there will be a growing awareness about
the need for both funders and non-profits to know and really
“own” the true costs of meeting their missions.
Underestimating and under-investing -The old saying
“Everything takes longer and costs more than you expect” is
very true when you are trying to drive social change.Yet donors
chronically underestimate what it will cost to create results
and, as a result, underinvest in the capacity required to make
those results a reality.When organisations receive less than
required to succeed, they underperform.
6. INCREASED SCRUTINY:
2016 will bring a continued focus on good governance.
Consider Principles and Practices/ Standards/Guidelines/
Frameworks that offer guidance for ethical and accountable
governance and financial practices.
2016/04/10 Next Generation Consultants 18
19. Trends 7 - 10
7. PICTURESTHATTELL STORIES:
If 2013 was the year of sustainability reports, 2014 the year of
integrated reports and 2015 was the year of the infographic, 2016 is
going to be the year of data visualization. Storytelling with pictures
will increasingly be the way we read and understand data, so having
the ability to communicate effectively with data will be important.
8. ONLINE EVERYTHING – GIVING/VOLUNTEERING/ ACTIVISM:
Campaigns going viral (Ice bucket challenge), crowdsourcing a
reality, activism a growing phenomenon (#generation), the growing
importance of social media, and an always connected environment.
This means that funders, non profits and communities need to be
aware – information and communication need to be optimised for
mobile devises therefore information and communication – and
(responsiveness and transparency) are critical
9.THE LEADERSHIP/SKILLS CHALLENGE:
At the core of this trend is the heavy burden placed on all resources
to be knowledgeable, skilled, experienced, in all matters social and
developmental. All resources need to be good managers of people,
gracious with demanding stakeholders, tech-wizards, advocates for
their missions, equally savvy with legal issues and social media, and
at the same time strategists able to keep their organisation ‘on
mission’.
10. WHAT IS IN A NAME – NEW FINANCING/ ORGANISATIONAL
STRUCTURES ADD CONFUSION:
A trend that will become much stronger in 2016 is experimentation
with legal structures designed to deliver social good.
New forms of entities that combine for-profit investments with
social benefit objectives. (Social Enterprises)
Social impact investment and the promise of “pay-for-
performance” are getting lots of attention, - as are concepts of
shared/blended value – commercially driven social solutions.
2016/04/10 Next Generation Consultants 19
20. The big
issues:
What we know:
We still have not reached pre-2007 funding levels
Notwithstanding innovation – new models of funding
and development – the number of
organisations/projects/programmes/communities
funded – declined – meaning there was no leverage of
partnerships, collaboration, technology – we are in
decline – all of us
What we don’t know:
Where were real change – impact – success –
sustainability
What we don’t know we don’t know:
Let the statistics/science/evidence speak
As much as in real life – few tax payers are carrying the
rest of society – we see the same in socio economic
development – a few funders contributing more than
75% of all funding and development
If the Mining Industry is responsible for more than 50%
of all CSI funding – what will happen when the industry
collapse?
If the economy does not grow – poverty will increase -
profitability will be affected – which will affect
grantmaking – a vicious cycle
2016/04/10 Next Generation Consultants 20
22. New
Concepts:
New buzzwords in
2016/2017 to watch
out for:
Inclusive
economy
Circular
economy
Social capital
Social value
Conscious capital
Collective/social
impact
Old(er) news
Shared/Blended
value
Social economy
Social
entrepreneurship
Social innovation
Impact
investment
New drivers
The Sustainable
Development
Goals
Sustainability
and Integrated
Reporting
The forgotten
National
Development
Plan
2016/04/10 Next Generation Consultants 22
23. New
influences:
Big Data
Requiring practitioners to
collect, analyse, share,
distribute more robust data –
more effectively - and to use
qualitative analysis more
intelligently (not only
quantitative data)
Mission based investing
Using market based
techniques/tactics/ tools to
address specific societal
challenges in order to
increase/scale/replicate
programs and interventions to
achieve measurable
social/environmental and
economic ROI and impact
Dealing with the impact of
climate change and the impact
thereof on the quality of life of
communities
Crowdsourcing
The democratisation of
fundraising – everyone is a
funder/philanthropist – but they
also want to be involved
see/experience what their
contribution achieves
Human rights lens to
funding and development
Leading issues in
development include:
Women, children, people
with disability, LGBT,
demanding their human
rights to: education, health,
water, housing, basic
services, and addressing
issues such as human
trafficking, child labour,
etc.
Youth Bulge
Africa’s future: Un/under-
educated, unemployed,
marginalised, alienated who
are so aspiring, socially
conscious, and need to be
empowered
The seven million South
Africans between the ages of
16 and 24 who are neither in
school nor working and are in
danger of falling through the
cracks, with no pathway out
of the educational gap and
into the workforce.
Persistent issues
Increased HIV infections,
slow/declining economic
growth, limited foreign direct
investment, chronic
unemployment, unstable
political context, increased
violence and crime, gender
inequalities, etc.
2016/04/10 Next Generation Consultants 23
25. Trends 1-4:
The obvious
1.The impact of climate change
Water, Food, Energy = Blue/Green/Renewable
economies
Retail Sector: Food Security / Supplier Development
Financial Sector: Negative impact on profits / risk
mitigation strategy
2.Waste is wealth
Circular economy, inclusive economy/development,
shared value
Aspects of sustainability also becomes risk mitigation
strategy
Mining Sector – Recycling / Beneficiation / Local
Content Strategy
3. Activist youth
The # generation – Fees must fall/Rhodes must
fall/Zuma must fall
Skills development / bursary programs / tertiary
education vs ECD
4. Global development
The impact of the SDG’s
South Africa missing more than half of the MDG’s
2016/04/10 Next Generation Consultants 25
26. Trends 5-6:
The
emerging
5.The era of compliance and governance has arrived:
International Standards: United Nations Declaration
of Human Rights, the United Nations Global Compact,
the OECD Guidelines for Multinational Companies, the
IFC Performance Standards for Social and
Environmental Sustainability
Industry specific Standards: The Extractives Industry
Transparency Initiative,The International Council for
Metals and Mines, Better Coal Initiative, the KZN Coal
Hub Initiative, The Fossil Fuel Foundation
South African Legislation: The Constitution,The
Mineral and Resources-, Petroleum Acts,The
Mining/Financial/ICT/Retail Charters
Corporate Governance Frameworks: King IV,The GRI,
The IIRC,Accountability 1000SES, The Companies Act,
the JSE-SRI Index,The BBEEE Act, Social and Ethics
Committees
6.The era of reporting has arrived:
Reporting on input, activities and outputs – only
quantitative outcomes
The impact of business being mitigated through social
investment
Carbon offsetting, job creation, skills development,
enterprise development, etc.
Generation and sharing of energy and water
2016/04/10 Next Generation Consultants 26
27. Trends 7-8:
The hidden -
compliance
7. Donors of all sizes are focusing their giving, asking metrics-
focused questions about impact and are contemplating the return
on their philanthropic investment.
There is as much difference between qualitative and quantitative
impact as there is between impact and return on investment
Negative impact, unintended impact and indirect impact is also
impact – in development not all impact is positive – BUT it has
never been accounted for
Measuring both impact and return and reporting thereon
requires much more focus. The evidence is clear – both the
grantmaking and development sectors have not stayed on top of
reporting requirements – and as such their legitimacy is
questioned – and practitioners are earmarked as ignorant.
8. Community stakeholders are a critical part of any program yet
continue to be seen as merely ‘recipients/beneficiaries’ of
interventions
Can you prove engagement with stakeholders
Can you prove/guarantee scientific outcomes
Can you provide evidence of impact/return
Is your data assured/verified?
2016/04/10 Next Generation Consultants 27
28. Trend 9:
Relationship
Challenge
9. If “donor-centric” was the buzz term of 2015,
2016 will be the year of making good on the donor-
centric promise. Organisations will invest in
cultivating only critical relationships. How?
To get in the door – is a challenge
To get an interview – is a miracle
Direct mailing – is old fashioned
Donor priorities are shifting
Refugees/migrants (global) – gender based funding
(women/girls empowerment (Africa)
Dealing with the impact of climate change
Dealing with the impact of unemployed youth
It now about 1) relationships 2) evidence
The rules are being made by funders – and others
simply have to follow
2016 is where forward-thinking organisations will
implement strategies that are truly donor-centric.
2016/04/10 Next Generation Consultants 28
29. Trend 10:
Winner takes
all – the
brand war
10. In a race to build a compelling business social
brand – that can stand against competitors –
provide differentiation – uniqueness and
consumer/customer/employee appeal – the one
who wins the race or the war will be able to provide:
The unique program
That raises the profile and brand of the funder
That speaks to the business objectives
That supports competitiveness and differentiation
Provides opportunities for new products, services
and markets
Supports market/ leadership positioning
Can be scaled – replicated – implemented
nationally
Provides detail of impact and return
Will be the winner – no matter the cost or budget!
2016/04/10 Next Generation Consultants 29
30. Trend 11:
The wild card
Financing
Models
The social finance and social innovation tipping point
For many organisations, 2016 will mark an important
“tipping point” for social innovation and social finance. The
social innovation ecosystem has experienced significant
growth in the last several years, generating new networks,
grant programs, policies, and innovation labs across the
continent.
The concept of Impact Investing have demonstrated strong
thought leadership on a sector-wide level, but many
organisations are looking for support and resources to apply
social innovation tools and concepts on a smaller scale to
improve their day-to-day operations and strategic planning.
Case studies and success stories are important in
demonstrating impact, and in 2016 non-profit leaders and
policymakers will continue to seek examples, models, and
templates to help embed social innovation tools in their day-
to-day work.
Social impact bonds and other social finance tools are also
experiencing an important tipping point, and 2016 will be an
important year of critical uptake to bridge the gap between
exploration and implementation:
Will social finance ”mainstream’” in SouthAfrica?
What government direction, if any, will government provide?
As social impact bonds in international jurisdictions mature
and continue to report on their initial results, national
government will have SouthAfrican context.
2016/04/10 Next Generation Consultants 30
32. What we
know:
Funding Sector
Continues broad focus,
multiple focus - short-
term funding/program
cycles
Lack proper measurement
and evaluation tools,
processes and
methodologies
Continues low-level
investment in NGO
capacity building
Limited application of new
tools and innovation in
program design or funding
models
Lack of collaboration
Lack of communication
Development Sector
Development lessons, lessons
learnt and insights or low impact
development programs not
shared for risk of future funding
Interventions are not based on
community engagement/input
or scientific research or baseline
data
Monitoring and evaluation
expertise is not a given or
funded, neither is development
based on international/
academic/scientific (best of
breed) practices
The sustainability of the
development sector continues to
be challenged as funding for
core operational expenses are
limited - affecting the outcome
and impact of interventions
2016/04/10 Next Generation Consultants 32
33. What we still
don’t know:
How to address systemic social issues singularly
How to ensure/guarantee development models will
provide the right outcomes and impact
How much resources will be required to affect real
change
The sustainability of non-profit organisations
continues to be challenged as funding for core
operations and capacitating is limited. What
happens if the funder disappears – what happens if
the community burn down the project. What are
the risks associated per program, organisation,
community, intervention?
Why is government ‘missing in action’? Not part of
discussions, not part of program implementation,
program design or reporting on program outcomes
2016/04/10 Next Generation Consultants 33
35. 2016 –
Funders:
Think local first - NDP/IDP/LED/SED/SLP
integration and alignment
Think global second - the SDG’s
Don’t get confused = shared value is not CSI –
blended value is a philosophy
Social innovation is not another way to make
money from ‘the poor at the bottom of the
pyramid’
Not every NGO is a social enterprise
Stop delegating responsibility to NGO’s - they
cannot save the world in isolation or change
systemic issues singlehandedly
Advocacy funding must return to investment
portfolios in order to affect systemic change
2016/04/10 Next Generation Consultants 35
36. 2016 –
NGO’s:
The odds are against you:
If you function on your own, if you pursue
strategies that lack the infrastructure to affect
systemic change, the cloud to influence
government, or the scale to achieve
national/sustainable impact – you are not going to
make it
There is no chance/assurance/evidence with all the
money in the world or the most
dedicated/hardworking staff – you can save the
world with unscientific, underfunded, non-
collaborative and unaccountable approaches
2016/04/10 Next Generation Consultants 36
38. 2016/2017:
Trends to
Watch:
Funders
1. Falling trust in grantmaking
2. Impact investment – evidence of impact is building
3.Watch out for diversity/equality/ inclusion/inclusive/
human rights based funding – new portfolio growth at
the expense of other portfolio’s
4. Educational funding needs to change – will funders
however change approaches? Changes from education
to skills development to combat youth unemployment?
5. Health funding – going nowhere slowly?
6. Environmental investment and development areas –
ready for take off – but very few programs/initiatives –
scientific evidence of change
7. Big Data – what do you know about it –
Gather, analyse and synthesize data - Data on gaps,
eco systems mapping - Baseline data – Comparative
data - Benchmarking data -Triangulated data
2016/04/10 Next Generation Consultants 38
39. 2016/2017:
Trends to
Watch
Development
Sector
1. New opportunities for civic engagement – youth groups,
advocacy, green economy, climate change, entrepreneurship
2. Increased use of protests, actions, # generation – using
technology and social media to gain support, visibility, action,
fundraising
3. Collaboration, sharing economy and network approach in a
resource constraint environment to scale interventions and
geographies
4.Work harder to dispel the ‘overhead myth’ and focus on
raising funding for capacity building and integrated services
5. Find new sources of revenue – social entrepreneurship,
impact investment, crowdsourcing, viral marketing campaigns
6. Be ready to provide evidence of impact – more demand for
outcomes requires more due diligence, information and data
management, new competencies and skills – create own
theories of change, provide baseline data, conduct M & E
7. Learn to advocate for the sector as well - not just causes and
projects
8. Be ready for comparisons and benchmarking – based on
science and evidence – outcome and impact
9. Become more strategic – both for own organisations and
programs – as well as income and funding/capacity strategies
2016/04/10 Next Generation Consultants 39
40. Forecast 1:
The obvious
Re-strategise
Theory of change / theory of practice / theory of
grantmaking
Do you have the knowledge/insight/understanding
of complex and connected/interdependent social
issues
Do you have a theory of development
Do you have a measurement framework
Scalability and replicability
Do you have the resources/competencies required
to ensure sustainable
development/outcomes/impact and return
Have you defined sustainable development
Collaboration and partnership
Are you willing and able to do what it takes to affect
real change
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41. Forecast 2:
The
emerging –
Re-organise
Development cannot happen without:
Engagement
Collaboration
Knowledge
Stakeholder pressure/expectations will persist and
increase
Performance based trust
The development sector will have to demonstrate
credibility and capability
The investment sector will be challenged to
demonstrate creative and innovative programs that
affect real impact and return
Stakeholders will keep developers and investors
accountable and reporting will drive transparency
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42. Forecast 3:
The hidden –
Re-Create
Be ready for:
Compliance to regulation – be ready to provide
evidence
The importance of monitoring, evaluation and
impact assessments cannot be emphasised enough
The moral market place – be ready to be exposed
Ensure governance, compliance, standards,
frameworks and guidelines are encapsulated in risk
management strategies
Consider both competitive and comparative
advantages – be ready with new investment AND
development models
Reconsider your theory of change (what you
do/fund) / theory of practice (how you do it) / theory
of grantmaking/development (what you are trying to
achieve)
Community / stakeholder driven development
Engagement and activism will influence future
development agendas – at SHORT notice
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43. In
conclusion:
Re-Consider
Focus Areas Changes =
Fewer Programmes =
Fewer Partners
From education to
skills development
to job creation
Focus onYOUTH
Winners and losers:
Health, security,
safety, art, sport,
housing to more
immediate/urgent
issues
Focus on FOOD,
WATER, #issues
Investment Changes =
Less Funding = Less
Resources
Focus on integrated
development -
ECONOMIC,
ENVIRONMENTAL and
SOCIO ECONOMIC
Development Changes =
Performance based Funding
= More measurement and
Reporting
No investment without
research or baseline
studies to provide
evidence for impact
No investment without
return to provide shared
value for all
Focus on INDICATORS to
measure impact and
return
Strategic Changes
Engagement lead
development:
Communities –
expressed needs
Employees –
expressed priorities
Government –
expressed
expectations
Fewer focus areas -
Fewer long term
programs = Less Cash –
More volunteering and
non-cash giving
2016/04/10 Next Generation Consultants 43
44. The
dichotomy of
development
Change will affect us all
Fewer programs - Just not enough resources
Balance between (company) flagship programs and
community needs
Back to shorter term programs
Need flexibility – emergency response
Need evidence – importance of performance to build
trust
Global influence
Understanding the link between the SDG’s and local
development
Good news – development is aligned – globally and
locally
Bad news – development is influenced by specific
issues
Ugly news – change will affect all of us – we need to
ensure that we have the right resources, knowledge
to ensure and affect sustainable development
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45. 2017:
There is no place left to hide – whether you are on
the investment or development side – it does not
matter
In the age of transparency – responsibility is
measured by accountability
Accountability is measured by performance
Performance measures impact and change
The circle is complete
2016/04/10 Next Generation Consultants 45
46. Will
tomorrow be
much better?
If you don’t change direction, you will end up where
you are headed.
The Professionalization Map.
In this view, grantmaking needs to gets its act together
and act like a real profession. It needs clear standards of
ethics and performance, transparent information and
widespread knowledge sharing. Institute these
reforms, and development will become not only much
more effective; it will police itself and keep the
regulators at bay.
The Social Justice Map.
In this view, what’s wrong with development is that it
isn’t democratic enough. It doesn’t listen to a wide
variety of stakeholders. It doesn’t represent the
changing diversity of the African landscape. It doesn’t
target its efforts toward the deep inequalities that allow
it to exist in the first place. Fix these things, and
development will be much more accountable. It might
even be transformed.
The Performance Map.
In this view, development isn’t enough like business. It
needs strategies based on value creation and focused
activities, all expressed in clear goals against which
performance can be measured. It needs to borrow tools
and techniques that will help donors see themselves as
investors, which in turn will encourage them to use their
money more effectively and efficiently in support of
social goals.
2016/04/10 Next Generation Consultants 46
47. New
Classification
and not just
focus areas:
Responsive
Value: Taking care of
communities where you
are – helping to sustain
communities for the
immediate and short
term, respond to crises,
linked to employee giving
and volunteerism. Broad-
based support –
demonstrating caring and
responsiveness
Strategic
Specific investments to
achieve results aligned
with and material to
business strategy by
extending expertise and
other resources to achieve
a bigger social impact and
profile
Catalytic
Support for large scale,
holistic and integrated
initiatives to meet
complex social challenges.
Catalysts for
transformative social and
business innovation and
ensuring lasting change
2016/04/10 Next Generation Consultants 47
Catalytic
Strategic
Responsive
48. ThankYou
Reana Rossouw - Next Generation Consultants
Next Generation Consultants are internationally
recognized and have published extensively and
spoken at local and international conferences.
Copies of these articles, research papers,
presentations, whitepapers and awards are
available on:
Website: www.nextgeneration.co.za
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2016/04/10 Next Generation Consultants 48