Social Innovation, Inc.: 5 Strategies for Driving Business Growth through Social Change [Hardcover]

Finally a book that shows doing social good isn't just a PR strategy, its a business strategy that can drive social change AND generate profits. Author Jason Saul offers novel ways to think about responsible business, giving readers many largely unknown examples of innovative companies driving business growth through social change. What is important about the book and all the very tangible examples, is that the companies presented pioneered a business strategy that leveraged social change as a way to drive profitable business growth. It was part of the core business. It was not charity. Nor was it traditional CSR initiatives - many of which aren't tied to business objectives. The businesses showcased developed products and/or services that added real value to society, helped to create social change AND was tied to business objectives, profits and growth.

Saul navigates through 5 social innovation strategies that businesses should consider, describing how firms can create revenues through sub-market products and services; entering new markets through backdoor channels; building emotional bonds with customers; developing new pipelines for talent; and influencing policy through reverse lobbying.

This is a must-read book. It's new thinking about social issues as corporate strategy. It provides a practical and actionable framework to generate real business value through positive social change.

For as long as I can remember until recent years, corporate philanthropy was related to a company's strategic objectives only to the extent that the financial commitments were to communities in which the company employed people. This was good citizenship based almost entirely on geography and available pre-tax dollars. In recent years, enlightened corporate leaders have correctly realized that it is not only possible but highly desirable to have social objectives and business objectives that are mutually beneficial. Substantial amounts of money are involved, as in years past, but also more, much more, notably evident by the active involvement of a company's people who serve as volunteers at all levels within community organizations.

What we have in this volume is Jason Saul's thoughtful and thought-provoking examination of what he characterizes as "The New Social Market" in which, to a significant extent, business strategies and social strategies are synonymous, if not identical. First, in Part I (Chapters 1-3), he establishes a context, a frame-of-reference within which to formulate "a new way of thinking about social change." Then in Part II (Chapters 4-8), he identifies and explains "Five Strategies for Corporate Social Innovation" by which to "create revenues with submarket products and services, enter new markets through backdoor channels, build emotional bonds with customers, and influence [public] policy through reverse lobbying." Finally, in Part III (Chapters 9-11), Saul provides a "Roadmap to Social Innovation" that focuses on the practical realities of crafting and implementing social innovation strategies. These initiatives will produce what he characterizes as a "culture of social innovation" based on a "formula for social innovation" which has significant implications for the aforementioned Social Capital Market.

Of special interest to me is the material provided in Chapter 7 as Saul explains how the fourth strategy can develop new pipelines for talent. He cites Travelers Insurance and its support of a program based on a "school choice model": themed programs that offer more personalized learning environment such High School, Inc., established on the Travelers campus in Hartford (CT). The program is part of a much more comprehensive program, with Travelers playing a leading role, joined by Wachovia, Webster Bank, and The Hartford in association with the National Academy Foundation, a network of 500 high school career academies throughout the U.S. Saul quotes Michael Klein, a senior Travelers executive, noting "We view it as a down payment on our potential future workforce" but the "we" refers both to Travelers and to the insurance industry.

What has driven companies (in all industries and urban areas) to support development of social innovation strategies that focus on education? Klein provides one reason. Also, the inadequacies of the public school education system to produce job-ready talent in sufficient number, in conjunction with the increased number of middle-skills jobs. How to create the right kind of talent pipelines? Saul suggests a five-step process: build the business case, leverage core competencies, select the appropriate pipeline for the given strategic objective, demonstrate verifiable ROI, and get to scale quickly, expanding and extending what works while eliminating or improving what doesn't. As for the inevitable pitfalls, Saul cites three: Don't conflate pipelining with philanthropy (i.e. "don't try to boil the ocean"), Don't craft a 15-year plan (rather, focus on near-term, albeit it incremental results), and "Don't fall in love with your partners" (rather, "fall in love with outcomes" by investing in results, not good causes). The school project in Hartford is only one of hundreds of examples of enlightened corporate self-interests served effectively by what Saul describes as a "social contract" although, throughout the social contract strategies are not relevant in a social capital market. However, that said (again), I agree with him that "the same trend that is fueling the social capital market - the sheer size of corporations and their ubiquity in our daily lives - is also increasing the importance of corporate responsibility and ethics.

This brilliant book will prepare decision-makers in any organization (regardless of size or nature) to understand how and why effective execution of strategies such as the five Jason Saul proposes can drive business growth through social change. This book will also prepare the same business leaders to recruit, enlist, and then energize others in co-creation initiatives to achieve strategic goals that have bottom-line impact in a business context, but are also goals that have significant social value.

Bravo!

This book is all about the successful combination of business goals and social good. Saul demonstrates how corporate social responsibility, often disconnected, does not have to be that way. In fact, with this book, he shows how several firms have aligned CSR with their business goals and delivered astonishing value benefiting society as well as employees and shareholders.

Furthermore, Social Innovation Inc. lays out a clear prescription for success. If your game is innovation... or you plan on starting a business or shaping the strategy of the one you are in, this book is for you.

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