This presentation follows on previous (2013,2014,2015) presentations and provides an overview of the latest trends as well insight into the future for social, community investment and development practitioners in South Africa.
2. Who we are:
Next Generation Consultants helps organisations to become more
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 Investment Impact Index™ - a methodology that
measures the impact and return on investment of
community/social/enterprise investments.
We are recognised as industry/subject experts and thought leaders within
the sustainable/ social / community development sectors.
We work across Africa in various development and investment sectors.
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
2016/05/05Next Generation Consultants
2
3. Background:
Our vision
To continuously contribute to increased socio economic impact and ensure enhanced value
and sustainability for all stakeholders across the continent
Our Context for the trend report
Global research – both developed and developing countries with a specific focus on
continental and regional trends
Local interpretation – considering emerging and global best practice and combining it with
indigenous insight and knowledge
Research methodology – country visits, literature reviews, personal interviews with key
influencers and recognised leaders, focus groups with intermediaries and beneficiaries,
internet (crowdsourced) surveys
Benchmarked
Our Investment Impact 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 / enterprise investments.
Our assessments includes evaluating more than 600 programs; across 15 focus/investment areas;
identifying more than15 dimensions of impact and 15 dimensions of return; culminating in a indicator
library with more than 5000 indicators.*
2016/05/05Next Generation Consultants
3
Please see our 2016 – Evidence of Impact presentation for the latest information of the III.
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, Shared
Value, SED, Social Entrepreneurship
The war on ideas - The growth of flagship/signature
programs
Green/Blue is the new black - The rise of
environmental funding/programs
Alphabet Soup - The rise of governance and
compliance
New Age Stuff - SET committees, Baseline Studies,
Human Rights based funding, Engagement, new
guidelines and frameworks
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
on the rise/decline
Two hills ahead
What we know vs what we don’t know
What we say vs what we do
Please see: http://www.slideshare.net/Reana1/csi-professionals-briefing-2014-trends
2016/05/05Next Generation Consultants
4
5. To recap: 2014/2015 Trends
Cross Roads or Tipping 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 (impact)
The ugly – discriminatory, unethical
funding, 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 – Pay for success.
Proof: Demonstrate impact, return, successful,
measurable, meaningful
Growing focus on issue based funding - Holistic,
integrated, systemic/sustainable development
Creating shared value - The business of business vs the
business of development
Follow the plan - Youth development plan, skills
development plan, infrastructure development plan,
local economic development plan, national
development plan
Please see: http://www.slideshare.net/Reana1/2015-trends-and-forecasts-corporate-social-investment-and-community-development
2016/05/05Next Generation Consultants
5
6. What's new: 2016/2017 Trends
The importance of dealing with the impact
of climate change has to be factored into
investment portfolio’s
Environmental investment and
development portfolio’s has become more
important
Ignore the youth at your own peril – the
rise and rise in importance of skills
development and job creation
Don’t forget to align to the SDG’s – it
provides not only baselines but also
measurable indicators to measure
progress against
The time for new development and
financing models is here – and very few
funders and development organisations
are ready for the change.
Governance, compliance, reporting and
risk management is equally important for
all stakeholders and actors in the sector
Measurement and Engagement are non
negotiable and not even up for
discussion/debate
Reconsider, recreate, refocus, realign – the
evidence suggest we are getting worse –
not better.
2016/05/05Next Generation Consultants
6
7. What is evident:
More of the same
won’t be good
enough
What is required:
New thinking –
new models –
new knowledge
2015/2016:
THINGS ARE NOT
CHANGING
THINGS ARE NOT
CHANGING FAST
ENOUGH
THINGS DON’T HAVE THE
IMPACT ENVISAGED
2016/05/05Next Generation Consultants
7
8. Global Megatrends affecting development:
ClimateChangeandresourcescarcity
As the world becomes more
populous, urbanized and
prosperous, demand for
energy, food and water will
rise, but the Earth has a finite
amount of natural resources
that can be used to satisfy
this demand.
Demographicandsocialchange
Adding another billion
people by 2025 – making the
total estimate 9 billion.
At the same time, people live
longer and have fewer
children (in developed
countries)
In developing countries the
youth bulge will continue to
be challenges for
governments
RapidUrbanisation
The rise and prominence of
cities in the global economy
has been unprecedented.
50% of the worlds
population lives in cities.
Shiftsinglobalpower
The growth in the
developing (BRICS) nations
and the opportunities of
purchasing power will
contribute to a growing
middle class.
In 2015 Asia already had
more purchasing power than
Europe and America
combined
Technologicaladvances
Technology is one of the
biggest (ever) disrupting
forces. Globally, economies
and businesses are reshaped.
The growth of ordinary
citizens using technology to
make their world better is
the biggest influence on
development
2016/05/05Next Generation Consultants
8
9. Impact of Global Mega Trends:
Global institutions no longer fit for purpose
Business, government, civil society want more socially
responsible/inclusive models of investment, development,
governance and economic policy
The world is becoming hyper connected
The power of individuals as a virtual citizen is on the rise
Interest is growing in the importance of a values based culture in
society
Ethics, transparency, and accountability is of great importance in
business/development models
There is profound public pressure – and increasingly an economic
argument to pressing challenges of inequality
The issues of diversity, equality and inclusivity is rising in
importance across all sectors
Significant demographic shifts are underway which have yet to be
factored into economic, political and social systems
Dealing with the youth bulge, young vs old populations, job
opportunities and unemployment of the youth are the most
important global issues – which is also linked to education, skills
and employment strategies of both government, private and public
sectors
Widening trust deficit towards institutions and between sectors
Transparency and accountability are the two most critical
aspects for all institutions and prerequisites therefore for
collaboration and partnerships
Government facing fiscal pressures are scaling back social
service provision
The impact (and expectations) therefore on the investment and
development sectors are huge and increasing
Private sector players (donors) are increasingly developing
strategies to address collectively economic, social and
environmental challenges to deliver shared value for all
stakeholders
The development sector (civil society) therefore needs to be
able to provide and show expertise in all aspects of economic,
social and environmental development
New patterns on economic and political power are creating
shifts in the axis of development
North vs South and East vs West Africa is challenged by
geopolitical and economic shifts
Foreign Direct Investment in emerging economies are changing
and shifting dramatically from aid to trade
China’s economic and political investment in Africa is not
evident in social or environmental development
2016/05/05
9
Next Generation Consultants
10. Global Perspectives:
Global funders believe the over-arching issue
for them in 2016 will be global instability,
driving conflict and terrorism, the reality of
millions of refugees, and an ever more
restrictive environment in which they work.
Trend forecasters predict that this year will be
a year in which fear and anxiety compete with
vitality and innovation as the dominant trends.
There is evidence that most grantmakers have
a clear idea that the immediate crisis and
humanitarian needs of refugees are best
handled by governments and international
institutions, and that the niche for donors is to
address the longer term problems of
integration, and the host population’s attitudes
to new arrivals, expressed in suspicion,
hostility, xenophobia, and violence.
Insecurity and fear (Panama papers) - (hostility and
terrorism) driving are driving policy and continues to
exert a dramatic impact on cross border funding, not
just in the human rights field but also in the
development, environmental and humanitarian sectors.
This is seriously affecting the day-to-day business of
grant-makers.
Additionally climate change is also influencing how
grant-makers understand their role.
Different issues and causes will impact grantmakers
differently. The biggest disrupters are:
The struggle/quest for impact
Greater access to reliable information and new digital
architecture which on the one hand has reduced the time
and costs of collaboration, and, on the other, compacts have
broken down across all countries.
The premise that funders would take risks and catalyse new
models of development which governments would then pick
up and roll out through policy, no longer exists.
Please See: 2016 Ariadne Forecast for European Social Change and Human Rights Funders
2016/05/05Next Generation Consultants
10
11. Africa Trends:
Funding for Africa jumped between 2002 and 2014.
The Gates Foundation dominated funding, but other foundations also increased support.
Africa-focused grant dollars jumped more than 400 percent, from $288.8 million to nearly $1.5 billion, during this period, while total international giving rose
185 percent. As a result, Africa accounted for 25 percent of international grant dollars in 2014, up from 14 percent in 2002.
The Bill & Melinda Gates Foundation, which ranks by far the largest funder, accounted for most of the increase in Africa-focused funding since the
early years of the last decade.
In 2002, the Gates Foundation awarded 30 grants totalling $69.1 million with a focus on Africa. By 2014, its commitment to Africa had risen to 249 grants
totalling over $1 billion. However, the Gates Foundation was far from the only factor driving the growth in giving focused on Africa. In fact, excluding Gates,
Africa-focused giving grew more than 90 percent, from $219.7 million to $422.1 million.
Most funding for Africa went to organisations headquartered outside the region. Share of funding targeting organisations headquartered in Africa
declined over past decade.
Among the reasons for funding via intermediary organisations include: Size of grant, specifically for large grants that require extensive financial and management
capacity, or limitations built into tax status or equivalents. Factors that might lead to directly fund organisations headquartered in Africa include an interest in
addressing issues from a local perspective, a desire to build organisational capacity, and/or an interest in providing funding directly to local groups. Other factors
are new organisational type structures or wide focused organisations such as the Glimmer of Hope Foundation and the Omidyar Network Fund.
Health captures largest share of Africa focused giving.
Excluding Gates, International Development and relief funding is the top funding priorities, followed by health (22 percent), education (11 percent), and public
affairs/society benefit (9 percent), which includes grants for public affairs, philanthropy, and general grants to promote civil society. Just over half of the funding
for education focused on higher and graduate education. Based on share of number of grants, which is less affected by large awards or a single funder,
international development and relief captured the largest share of Africa-focused funding, followed by health, education, and human rights funding.
Funding for Africa prioritizes children and youth and women and girls.
Most support for Africa funding targeted specific projects - (91 percent). In general, most support is aimed at research, followed by general or unrestricted
support (9 percent).
Please see: Funding for Africa: 2015 Edition: Produced by Foundation Centre
11
12. South African Perspectives:
Foreign development agencies
only go where
They are welcome (foreign
policy, government priorities
and relations), investment
climate
They can make a difference
(corruption and capacity)
They are assured of results
(capacitated/networked
organisations and reliable
results (M & E)
South Africa is losing development funding
2016/05/05Next Generation Consultants
12
13. Changes: The value chain
Government / Development Sector / Private Sector
The unholy tripartite
2016/05/05Next Generation Consultants
13
14. 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 has risen from R118 billion 2014 to R145
billion in 2016.
The child support and old age grants are the 2
largest programs – constituting about 75% of total
spending.
Others include 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
Please see: Social Development: Pocket Guide 2014/2015
2016/05/05Next Generation Consultants
14
15. Funders: (corporate and private)
Changing role of funders - 3 Distinct types of grantmakers are evident:
Reactive or Demand-led: Funders judge applications on merit and are responsive to demand/applications
Compensatory of Deficit-led: Strategy based on clear ‘deficiencies’ – issues which may have received little
previous funding – or where there are system breakdowns – i.e. education
Instrumental or Interventionist: Clear about project intent and impact – funding is aligned with business
strategy.
Changing focus
Funding for HIV/Aids – 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 and health
funding, due to shifting government priorities or failures.
Equality on grounds of ethnicity is coming back into the spotlight. This is linked to the global migration
issue – and is true in South Africa as well (xenophobia and racism)
Changing budgets
A decline in profits – leads to changing priorities – leads to changes in programs and budgets (as well as
outcomes) (in general a decline in sustainable development)
2016/05/05Next Generation Consultants
15
16. The Development Sector: (NGO/NPO’s)
Faces 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 contribute to a fragmented, pressured
sector)
Increasingly competitive environment – (for profit vs not for profit organisations)
Effectiveness of collaborating in networks are questioned
Changes in stakeholder (accountability) expectations
Advocacy – the step child of development – is gaining popularity over program based
organisations
Changing customer (donor/government) demands and expectations
Rapid technological changes – social media impacts fundraising
Demographic shifts – age, gender, race, religion, location (urbanisation)
Evolving regulatory frameworks – King IV
2016/05/05Next Generation Consultants
16
18. Enough evidence: More of the same is
not good enough
SILOED RESPONSES and PATCHWORK 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 DESIGN OF PROGRAMS IS MOSTLY BUDGET-DRIVEN RATHER THAN NEEDS-DRIVEN
Although differences between funders exist, the vast majority of CSI programs are developed based on the available
budget, rather than what is needed to achieve social objectives or specific development/community needs.
NON-ENGAGEMENT WITH 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/programs are not effectively evaluated, and if they are - the analysis (knowledge) of the 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
2016/05/05Next Generation Consultants
18
19. Let the figures speak:
Since 1994 – budget spend on social services has increased by 15% from 45% to
60% (of total national budget) - 2014/2015
Education - accounts for 35% of the social services (budget DOWN from 49%)
Health - accounts for 21% of the total social services (budget DOWN from 23%)
Social security - (most of which is social grants – accounts for 30% of total budget) 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. In 2013 there were 90 people employed for every 100 people in
receipt of social grants
Please see: Please sir, I want some more … IRR/CRA May 2015 Research
2016/05/05Next Generation Consultants
19
20. 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 – in 2014 - 2584 women died in child birth, during pregnancy or during delivery or
termination of pregnancy
Similarly TB 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%
2016/05/05Next Generation Consultants
20
22. Top 3 Trends:
1. THE RESOURCE SQUEEZE:
The most prominent trend that began with the Great Recession (2007/2008) 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 and is exasperated notwithstanding increased social security spending by government
due to job losses, increased interest rates, increased cost of living, declining FDI, etc.
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 MISSIONS THROUGH ADVOCACY:
The significance of the first two trends heightens the need for all (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 two greatest barriers to progress are the current government
policy environment and the current economic climate. If non-profits and funders are serious about bringing
things “to scale,” advocacy is how to achieve it.
2016/05/05Next Generation Consultants
22
23. Trends 4 – 6:
4. INCREASED TRANSPARENCY ABOUT OUTCOMES:
Because of the intense competition for financial resources, evidence of change and impact is critical as it is important
for all stakeholders in the value chain to be transparent about not only their finances, but also their outcomes and
impact.
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. (cost of
resources, process, systems, reporting and communication)
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 requires a continued focus on good governance. Considering new Principles and Practices/
Standards/Guidelines/ Frameworks that offer guidance for ethical and accountable governance and financial
practices will require not only risk management, compliance and governance, but strict oversight and scrutiny.
2016/05/05Next Generation Consultants
23
24. Trends 7 – 10:
7. PICTURES THAT TELL STORIES:
If 2013 was the year of sustainability reports, 2014 the year of integrated reports and 2015 the year of the infographic, 2016 is
going to be the year of data visualisation. Storytelling with pictures and graphics 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:
Campaigns going viral (Ice bucket challenge), crowdsourcing (fundraising) 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 and knowledgeable. 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/stakeholders 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)
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.
2016/05/05Next Generation Consultants
24
25. The big issues:
What we know:
We still have not reached pre-2007/2008 funding levels
Notwithstanding innovation – new models of funding and development – the
number of organisations/projects/programs/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
2016/05/05Next Generation Consultants
25
26. “
”
2016:
Theme of the Year:
Disruptive Development
Fear and anxiety compete with
vitality and innovation as the
dominant trends.
Two contradictory forces drive today’s economy:
One – information is about abundance
Two – sustainability is about scarcity and resilience
2016/05/05Next Generation Consultants
26
27. New Concepts:
New buzzwords in 2016/2017 to
watch out for:
Inclusive economy
Circular economy
Social capital
Social value
Conscious capital/investment
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
2016/05/05Next Generation Consultants
27
28. 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 also want to be
involved see/experience what their contribution
achieves
Human rights lens applied to funding and
development
Leading issues in development include: Women,
children, people with disability, LGBT, demanding their
human rights to: education, health, water, equality,
housing, basic services, and addressing issues such as
human trafficking, child labour, access to
justice/information/services, 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.
2016/05/05Next Generation Consultants
28
30. 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. Link to Global development
The impact of the SDG’s – leads to a change in funding priorities and focus/investment areas
2016/05/05Next Generation Consultants
30
31. 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,
New Equator Principles
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, outputs, impacts (across the value chain) – that contributes to value
generation – not only quantitative outcomes
The (negative) impact of business being mitigated through social investment
Carbon offsetting, job creation, skills development, enterprise/supplier development, etc.
Generation and sharing of energy and water competing with traditional development portfolio’s
2016/05/05Next Generation Consultants
31
32. Trend 8: The hidden
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
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/specific outcomes and impact?
Can you provide evidence of impact/return?
Is your data assured/verified?
2016/05/05Next Generation Consultants
32
33. What we know:
Funding Sector
Continues broad focus, multiple focus -
short-term funding/program cycles
Lack proper measurement and
evaluation tools, processes and
methodologies
Lack of large scale high impact
programs
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 are not shared
for risk of future funding
Interventions are not based on community
engagement/input or scientific research or baseline
data – relevance of programs questioned
Monitoring and evaluation expertise is not a given
or funded, neither is development not based on
international/ academic/scientific 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
2016/05/05Next Generation Consultants
33
34. What we 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?
2016/05/05Next Generation Consultants
34
37. 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 – Funding NGO’s is too limiting – both on
impact and evidence
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 – are you prepared to take the risk?
2016/05/05Next Generation Consultants
37
38. 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 – or
guaranteed scientific development models - 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
2016/05/05Next Generation Consultants
38
39. 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/systems
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 the outcomes of sustainable development
Collaboration and partnerships
Are you willing and able to do what it takes to affect real change
Do you have the courage and are you prepared to take on more risk to ensure
sustainable development
2016/05/05Next Generation Consultants
39
40. Forecast 2: The emerging – Letting Go
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
Community Stakeholders will keep developers and investors accountable and reporting
will drive transparency
2016/05/05Next Generation Consultants
40
41. Forecast 3: The hidden – Re-Creation
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
– and may/will demand changes to investment/development strategies and portfolios
2016/05/05Next Generation Consultants
41
42. Forecast 4: Re-Consider
Focus Areas Changes = Fewer
Programmes = Fewer Partners
From education to skills development to
job creation
Focus on YOUTH
Winners and losers: Health, security,
safety, art, sport, housing to more
immediate/urgent issues
Focus on FOOD, WATER, #issues, climate
related issues
Investment Changes = Less Funding =
Less Resources – how can you do more
with less
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 (guaranteed success)
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 givingNext Generation Consultants
42
43. The dichotomy of development
Change will affect us all
Fewer programs - Just not enough resources
Balance between (company) flagship 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
2016/05/05Next Generation Consultants
43
44. 2016/2017:
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
2016/05/05Next Generation Consultants
44
45. 3 Scenarios to consider:
If you don’t change direction, you will end up where you are headed.
1. The Professionalisation 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.
2. 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.
3. 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 from other disciplines/ sectors 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.
2016/05/05Next Generation Consultants
45
46. 3 New Classifications 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/programs 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 and business
challenges. Catalysts (interventions) for
transformative social and business innovation to
ensure lasting change i.e. sustainable
outcomes/communities
Catalytic
Strategic
Responsive
2016/05/05Next Generation Consultants
46
48. 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
2016/05/05Next Generation Consultants
48
49. 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 fundraising 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 diligently
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
2016/05/05Next Generation Consultants
49
50. The future: What I know
2.
More giving leads to
greater impact
3.
Greater impact leads to
sustainable development
1.
Measurement leads
to more giving
2016/05/05Next Generation Consultants
50