By Jocelyne Daw
Welcome to the age of Community-Business InnovationFive Trends that Matter for 2013!As we begin 2013, JS Daw & Associates has identified the top 5 trends that will matter for community-business innovation. Based on the power of “&” we will see the amplification of:1) Purpose & Performance = Increased impact and enhanced value2) Nonprofits & Impact = Greater value and differentiation as the sector continues to grow3) CSR & Innovation = The new business imperative4) Business & Community Collaboration = Shared value and impact5) Social Media & Community Engagement = Greater influence and broader reachIn 1995, Peter Drucker (management guru and thought leader) identified what he termed “The Age of Social Transformation”. He argued that The Age of Social Transformation would see the growing potential and creativity of both nonprofit and for-profit organizations to solve social and economic challenges.Almost 20 years later, the age of social transformation has evolved to what we, at JS Daw & Associates, call "The Age ofCommunity-Business Innovation" (CBI). The age of CBI will be a time when innovation in these two sectors will be vital to solving social, economic and environmental challenges. Scaling sustainability will be the great aspiration in the corporate arena. Scaling impact will be what matters for the nonprofit sector and community investment field.In this first post of 2013, we highlight the top 5 trends that will matter for you and your organization.1. Purpose & Performance = Increased impact and enhanced valueIf 2012 was the year of purpose, 2013 is the year of “purpose + performance”. At a time when there is a high demand for transparency, easy access to any type of information, and ever-savvier stakeholders; defining, measuring and communicating your impact is just as important as your purpose.In 2013, good intentions and purpose alone will not be enough. Purpose will not solve disease, poverty, social injustice or any vitally important cause. Purpose + performance is the new imperative to deliver the increased impact and enhanced value critical to meet the challenges of today.2. Nonprofits & Impact = Innovation and new approaches as the sector grows and donations decline. The trends that stood out in 2012 were the continued growth of the nonprofit sector paralleled with a decline in philanthropic giving (click infographic for more). What will this mean?A focus on results and solving societal challenges will be vital. Business as usual will not be sustainable. We can no longer ask for support, we need to invite people to join our organizations to invest in smart solutions! Measuring and communicating results will be in. We predict that 2013 will be a time of innovation and boldness. Organizations that boast a strong value proposition, communicate their results, and deliver strong social outcomes will stand out.3. CSR & Innovation = Sustainable brands, the new corporate imperativeSocial innovation and responsibility are becoming more transparent and pervasive. There were a number of reports in 2012 that demonstrated the connection between robust sustainability practices and more impressive bottom lines. Of particular note was the Massachusetts Institute of Technology’s third annual Sustainability and Innovation Global Executive Study, released in January 2012.The world as we know it is at a pivotal point in history and humankind is now faced with an unprecedented challenge. The social, environmental, and economic implications of population growth, over consumption of resources, and threats to biodiversity demand a dramatic shift from ‘business as usual’ for all of us. The rules of the game are changing, as economic, social and environmental pressures come together. This demands a new strategic imperative for society is needed, along with new ways to think about how we make and use things, and how we relate to each other.4. Business & Community = Cross-sectorial partnerships as key driver to enhance shared value and tangible impactToday’s complex issues require greater collaboration. Done well, they can enhance value and deliver greater results. We must build a better understanding of the systems at work in our world, as well as communities of collaborators with a shared vision and commitment to act. Imagine the possibilities when communities of action, with a common goal are inspired and equipped to collaborate.Watch for a special announcement from JS Daw & Associates on an innovative and internationally developed Partnership training program in the coming months.5. Social Media & Engagement = More fundraising, greater influence, and broader reach as social media impact continues to ramp up .For nonprofit organizations that used social media this past year, likes and retweets meant more than being popular, they meant increasing their fundraising revenue – with significantly increased outcomes.In an exciting and insightful research study, MDG Advertising looked at the social media trends of nonprofits in 2012 and found that the organizations taking advantage of social media tools boosted their fundraising and friendraising results. For more information on this study, click on the infographic to the left.Social media for CSR communications will gain momentum. Because CSR reports are stagnate, communicating through social media creates pathways for stakeholders to interact directly with a company about its CSR program. Through social media, companies gain a following of people who are interested in their CSR performance and can monitor, engage, and share in key relevant CSR related information and sentiment on any emerging issue.