Net Hope Chairmans Report Net Hope Annual Meeting
- Slides: 29
Net. Hope Chairman's Report Net. Hope Annual Meeting November 4, 2009 Ed Granger-Happ Collaborate or Perish as Irrelevant
A Question to Frame the Day What if we got so good at cutting IT costs we had nothing left to move our mission forward? Collaborate or Perish as Irrelevant 2
Interesting Times • Save the Children (US) – Canceled raises (2 years) – 10%+ HQ staff cuts; early retirement packages • CARE (Atlanta) – ~70 staff laid off, including ~60 people in HQ – Salary Cuts: executive by 10%; other staff by 4% • World Vision (US) – 50 staff laid off ~ 5 % US workforce; Eliminated 25 vacant positions – Reducing benefits (retirement match down 50%; co-pays up) – Freezing salaries/Canceling raises • Ford, Kellogg, RWJ Foundations – Offering buyouts to 30 -50% staff – Closing offices and cutting travel • Museums and Art Orgs – Layoffs; furloughs; and program scale-back/elimination Collaborate or Perish as Irrelevant 3
IT Departments Have Been Hit Hard • US NGOs with mandated cuts: 79% • Average cut from IT Budget: 24% --US NGO-CIO Cost Cutting Survey, April 2009 Collaborate or Perish as Irrelevant 4
A Parable He CUT COSTS Collaborate or Perish as Irrelevant 5
Are we moving in the wrong direction? In this recession, the trend is to retreat to lights-on operating mode and focus on driving out costs Collaborate or Perish as Irrelevant 6
So what type of IT are we going to be? Increasing Impact to Children • Are we going to be about only saving costs or saving twice the children? • That fundamentally is the key, the hinge on which NGO IT strategy turns. Collaborate or Perish as Irrelevant 7
A Word About Strategy 8
What’s the single most important strategic question? 9
What’s my destination? 10
Sometimes we’re distracted from our destination “The pilots of the commercial jetliner that last week overshot its destination by about 150 miles have said they were using their laptops and lost track of time and location, federal safety officials said Monday. ” –CNN, October 27, 2009 Collaborate or Perish as Irrelevant 11
And we get great about lesser things “Many IT organizations have great landings, but at the wrong airport. ” --Dave Aron, VP of Research, Gartner Group, CCit. DG Conference, October 8, 2009 Collaborate or Perish as Irrelevant 12
Increasing Impact for Beneficiaries NGO IT Strategy: Moving the Agenda Up the Pyramid Competitive or Leading BENEFICIARY “Differentiating” Beneficiary & Field Facing PROGRAM “Improving Program Delivery” Efficient OPERATIONAL “Helping the Organization Run” Donor & HQ Facing FOUNDATIONAL “Keeping the Lights On” Collaborate or Perish as Irrelevant 13
Net. Hope is Broadening Its Strategic Reach Customer Members Beneficiaries Net. Hope is addressing the bottom and top of the strategy pyramid Prime Members Domain (e. g. development programs) New Net. Hope growth area (e. g. ICT 4 D) 3 2 Secondary Net. Hope Domain (e. g. Shared Services) Primary Net. Hope Domain (e. g. Phase II VSATs) 4 1 Vertical Horizontal 1 Net. Hope began in quadrant 1, for example providing connectivity to members 2 Primary growth area for Net. Hope leveraging strength in quadrant 1 3 Net. Hope’s supports and enables through technology but does not provide programs to the beneficiary since this is the members’ role 4 Secondary growth area for Net. Hope (e. g. program sectors) (e. g. tools & platforms) Strategic Thrust Collaborate or Perish as Irrelevant 14
Net. Hope Addresses Five Critical The Board Needs Endorsed these 5 pillars at our June Retreat Rationale: Minimal communications available in remote parts of the world with limited (or no) infrastructure Connectivity Emergency Response Rationale: Faster, better coordinated response by agencies and NGOs to man-made and natural disasters Field Capacity Building Rationale: Lack of ICT training and skills is the number one obstacle to effectiveness in the field Shared Services Rationale: Leverage applied to common operational problems will help close the “Humanitarian Productivity Gap” Innovation for Development Rationale: Creativity is required to deliver effective, practical ICT solutions for healthcare, education, agriculture, conservation and financial programs Collaborate or Perish as Irrelevant 15
Corporate indicators? 16
What if we continue down the path of following our for-profit colleagues. Will the tried and true work for the NGO world? 17
The Problem: NGOs invest a fifth of corp. IT 5 x 18 x 4 x Collaborate or Perish as Irrelevant 18 18
Non Profit IT Departments Can’t Play the Odds IF • 57% of ERP projects don't realize their ROI (Nucleus Research) • 66% IT projects fail (Standish Chaos DB) • NGOs spend a 20 th what corporations do (Tuck survey) • And we are spending donors’ dollars THEN • We must find a better way. . . Collaborate or Perish as Irrelevant 19 19
Key Conclusion: we can’t do it alone Even if we tripled IT spending, we will still be playing catch-up for just keeping the lights on. And… 20 20
Keeping the Lights-On is Irrelevant It’s more a commodity each day “We can't get close to what Google and Amazon can do in their data centers” –Peter Cochrane 21
Increasing Impact for Beneficiaries We Need to Push the Pyramid at Both Get in Ends Competitive or Leading BENEFICIARY “Differentiating” Beneficiary & Field Facing PROGRAM “Improving Program Delivery” Efficient OPERATIONAL “Helping the Organization Run” Donor & HQ Facing FOUNDATIONAL “Keeping the Lights On” Get out 22
Bottom line? What if we got so good at cutting IT costs we had nothing left to move our mission forward? We would perish as irrelevant IT But that’s not the last word! Collaborate or Perish as Irrelevant 23
Net. Hope Vision Connected Together, Changing the World Net. Hope is the Eight-Year Collaboration that Works! To be a catalyst for collaboration in the International NGO community and enable best use of technology for connecting in the developing parts of the world Collaborate or Perish as Irrelevant 24
Collaboration 2. 0 We need to bring together more of the resources Universities Corporations Social Impact Governments NGOs Collaborate or Perish as Irrelevant Funders 25
Net. Hope Values – Guiding Principles • Technology (ICT) Matters – NGO Effectiveness depends on technology and capacity building • Benefiting all benefits one – Benefiting one also Benefits All • Learn through collaboration – Learn by doing • Build for the Field – IT solutions are deployed solutions • Bias for action – The need for speed, especially for emergencies Collaborate or Perish as Irrelevant 26
Net. Hope Values – Guiding Principles • Technology (ICT) Matters – NGO missions depend on effective technology & capacity building • Benefiting all benefits one – Benefiting one also Benefits All • Learn through collaboration – Learn by doing • Build for the Field – IT solutions are deployed solutions • Bias for action – The need for speed, especially for emergencies Collaborate or Perish as Irrelevant 27
Further Reading • Blogs: http: //eghapp. blogspot. com/ http: //granger-happ. blogspot. com/ (Dartmouth Fellowship) • Web site: http: //www. fairfieldreview. org/hpmd/EGHprofile. nsf • Email: ehapp@savechildren. org • Twitter: @ehapp • And the book: Managing Technology to Meet Your Mission, chap. 11. Collaborate or Perish as Irrelevant 28
Questions? Collaborate or Perish as Irrelevant
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