Innovating at a local levelInnovating at a local levelpart one: methods

Geoff Mulgan Young FoundationGeoff Mulgan, Young Foundation

Steve Johnson, Capital Ambition

Daniel Oppenheimer, NESTA

29 June 2009

Social and Public InnovationSocial and Public Innovation –methods and tools

Geoff MulganGeoff Mulgan

Background – the Young Foundation

The field of public and social innovation – what’s happeninghappening

Methods and tools – what’s useable

Why systematic thinking and practice of innovation matters to London’s public services 

The example of health implications for otherThe example of health – implications for other parts of the public sector

Michael YoungMichael Young…

Thinker and writer (the RiseThinker and writer (the Rise of the Meritocracy, Family and Kinship in East London)

Creator of over 60 organisations

S b th ld’Seen by many as the world’s most successful social entrepreneur

History of turning ideas into reality tackling most acutereality, tackling most acute needs

Young Foundation approach ...

‐ beginning with observation, ethnography, engagement‐ design of new models with partners‐ fast testing, learning by doing, then l h h hlaunch as new organisations, whether NGOs, public or private sectorchange through example and action‐ change through example and action

• Local projects bringing together groups of local councils national governmentlocal councils, national government ... 

Examples: health &well beingwell‐being

• Health incentives company in Birmingham• Emotional resilience – 4000 pupils age 11‐12 Tynesidepupils age 11 12 Tyneside, Herts, Manchester• Living life to the full – with l t ll ivolunteer counsellors in 

Manchester• Active Community Living in Brent•Neuroresponse in London

Examples: education• Studio schools – new small schools 

integrating work and learning for 14‐19 year olds; seven in first phase

• Fastlaners for unemployed graduates

Uprising f 18 25 ld• Uprising for 18‐25 year old young leaders

• Faking it – based on successful TV gseries aimed at young unemployed

• Web‐based projects ...

School of everything  ‐ where everybody can teach and everybody can learn y y

•II

How do they happen?

H d th ?How do they grow?

What makes them tick?

…………

EU – Barroso commitments, EIB etc

Obama – Office of social innovation, education innovation fundseducation innovation funds

Pioneering work in Korea DenmarkPioneering work in Korea, Denmark, Finland, Brazil

Mondragon/MIK (Spain)

Innovation Networks for Communities (US)

TESE (Portugal)

Hope Institute (S.Korea)

( d )

Center for Social Innovation (Canada)

Communities (US)

CCCPE (China)

Mindlab (Denmark)

Heategu (Estonia)

MaRS  (Canada)

Sitawi (Brazil)

SEKN (L. America)

Doors of Perception (Int.)

Tallberg Forum (Sweden)

Kennisland (Netherlands)Heategu (Estonia)

Lien Foundation (Singapore)

SITRA and STAKES

Shuttleworth Foundation (S. Africa)

ASIX

A t li C t f S i l

Social Innovation Generator (Canada)

OECDSITRA and STAKES (Finland)

MIK/Mondragon (Spain)

Fuping Development

Australian Centre for Social Innovation

Monitor Institute (US)

Sustainable Everyday Project

Civicus (Int.)

BEPA/European Commission

World Health OrganisationFuping Development Institute (China)

Mandag Morgan (Denmark)

Sustainable Everyday  Project (Italy)

Euclid (Europe)

Young Foundation (UK)Cisco 

Philips Design

Macquarie Bank

Young Foundation (UK)

Innovation Unit (UK)

NESTA (UK)

DIUS (UK)Sciences‐Po (France)

Kellogg Foundation (US)

DIUS (UK)

• A series of research studies

l– social innovation

– public sector innovation

– patterns of growth

– what makes localities innovative

– the role of business and venture capital

– next steps on social enterprise policynext steps on social enterprise policy

1.Innovation comes from connecting bees (small groups, individuals , social entrepreneurs ith i i ht d id ) d twith insight and ideas) and trees 

(big organisations ‐ governments, companies foundations with powercompanies, foundations with power and money).   

As in science and medicine intermediaries are key – but often l kilacking.

2. Growth depends on effective supply and effective demand , and the right organisational forms (loose diffusion, franchising, licensing, organisational growth)

3. Many social innovations cross sectoral boundaries as they grow ‐ no analytic methods or policy tools which are y g y p ysingle sector will be fully effective

4. The field is rich in ideas and methods (from crowd sourcing to user‐led service design,  social incubators to RCTs) but largely unaware of them

1 Prompts

2 Proposals2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

UK health system 2009

• Attempting a comprehensive innovation system in public service with 1.2m employees

• Recognition of need for fundamental change – to roles of hospitals, primary care, chronic diseaseI i l f i ti th h• Improving supply of innovation through: a series of funds – for public sector workers, social entrepreneurs (grants, loans, guarantees, equity), prizes, festivals, g , q y), p , ,investment in spin outs alongside classic R&D, some targeted to strategic priorities (egobesity) some open

• Support for incubators pilots zones• Support for incubators, pilots, zones, venturing, Randomised Control Trials, collaboratives, service design

• Formal management and accountability forFormal management and accountability for pipelines, with open innovation model

Improving demand (diffusion, adoption &c)... 

• Reshaping commissioning, purchasing to be pro‐p g g p g pinnovation, with commissioners performance managed according to support and demand

• SHA ‘duty to promote innovation’

• Annual Innovation Reports 

• Work on metrics &c to capture social value and ‘Invest to save’ options (eg Social Impact Bonds)

Health – regional innovation funds

Supporting SHA strategic priorities on Quality, Innovation and Productivity

Strategicfocus

Pre‐investmentactivities

Post‐investmentactivities

Maximising impact of investments through support and evaluation

Attracting, selecting and investing in a portfolio of 

innovative initiatives to drive dramatic improvement in quality 

and productivity* activities activitiesand productivity*

B ildi

Organisation structure& capabilities

Governance,  performance management & lesson l i

Building an organisation and 

broader ecosystem with the capabilities 

and capacity to 

Performance managing the funds appropriately 

30

& capabilities learningsupport innovation

* Initiatives may include new services, for profit or social businesses, new community services or partnerships

Select ideasAttract ideas Invest Exitor

1 2 3 7

Evaluateinvestments

Supporti t t

46Evaluation “stage gates”, leading to eithermore support or exit if:▪ investment objectives 

Ideas may be at every stage of Darzi evolution:

* investments investmentsare achieved, and investment is sustainable without RIF support, or

▪ additional support

▪ Birth*▪ Growth▪ Diffusion

Manage investments

5additional support will not provide value for money

31* Described as the “Identification” stage in NSR

Where next?Where next?

• Spread of new units within governments – offices of p gsocial innovation in the White House, Cabinet Office

• Spread of incubators, investment programmes (Barrosod EU) d i t di iand EU) and intermediaries

• Spread of departmental innovation capacities (Denmark) • National recovery plans adding innovation elements (eg• National recovery plans adding innovation elements (egUS $700m education innovation fund)

• A 1% norm for public budgets?p g• A field becoming more self‐aware, more systematic and more effective at innovating in critical fields from ageing t li t hto climate change

“It is common sense to take a method and try it. If it fails, admit it frankly andand try it. If it fails, admit it frankly and 

try another. But above all, try thi ” F kli D R ltsomething.” Franklin D. Roosevelt

Questions for discussion

• What methods are used – and should be used?• What methods are used – and should be used?    Eg for more efficient models of eldercare; more effective job creation for 18‐24 year olds?effective job creation for 18 24 year olds?

T t id l f id ?– To generate a wider pool of ideas?

– To prototype and test?

– To embed and then scale?

Innovating at a local levelInnovating at a local levelpart one: methods

Geoff Mulgan Young FoundationGeoff Mulgan, Young Foundation

Steve Johnson, Capital Ambition

Daniel Oppenheimer, NESTA

29 June 2009