Are you trying to figure out whether you want to create social innovation through a non-profit, for-profit or a hybrid?
Stanford Social Innovation Review has just published an article called “In Search of the Hybrid Ideal” which focuses on the challenges and opportunities faced by ventures seeking to achieve both social impact and profits.
Highlight: Combining profit and impact
When we talk to entrepreneurs and students about hybrid organizations, a common theme that emerges is what we call the “hybrid ideal.” This hypothetical organization is fully integrated—everything it does produces both social value and commercial revenue. This vision has at least two powerful features. In the hybrid ideal, managers do not face a choice between mission and profit, because these aims are integrated in the same strategy. More important, the integration of social and commercial value creation enables a virtuous cycle of profit and reinvestment in the social mission that builds large-scale solutions to social problems.
Is the "hybrid ideal" a fantasy or is it possible?
Highlight: Building and sustaining the right culture
All hybrid organizations face the challenge of remaining focused on their missions. At early stages, the passion and dedication of the entrepreneur can organically communicate such commitment within the organization. But as organizations grow, the influence of entrepreneurs on new staff becomes less direct and powerful. When direct influence weakens, culture becomes a critical means by which beliefs and values are communicated and maintained. Hybrids face the special challenge of building an organizational culture committed to both social mission and effective operations.
How are you thinking about creating the right culture and values for your organization?