NGO Consultant

NGO Consultant
Odisha NGO Consultancy Services

Thursday, October 23, 2014

Engaging the private sector: 10 lessons for NGOs

At CSR Asia over the last couple of years we have found ourselves working with a number of NGOs, helping them with their private sector engagement strategies. With dwindling resources from governments, NGOs are looking for resources elsewhere. But our starting point is always to say to NGOs that if they are looking for easy financial handouts from the private sector, they may well be wasting their time and if a fruitful relationship with a business is to be developed it needs a proper strategy of engagement.

Therefore, in this week’s article I am suggesting my top ten tips for NGOs that want to engage with business and ways in which NGOs can develop partnerships to meet shared objectives:

1. Make a compelling business case: Too many NGOs who care about their causes have an “entitlement mentality” and feel that the private sector simply “ought” to support them. With competing demands and limited resources, this is not the case. The private sector will need to be convinced of the benefits of engaging with NGOs. The most strategic thinking businesses will want to see a link to their core business, the involvement of some of their staff and reputational benefits for their business. Businesses will be more likely to support projects that are aligned with their own values and the interests of their workers.

2. Match assets and expertise (not just money): Businesses are more interested in projects where they can use their own assets, expertise and skills rather than simply writing a cheque. Traditional philanthropy has a role to play, but sophisticated businesses are looking for more. They have other resources that they might usefully contribute including staff time, expertise, knowledge, products and services, management skills and even influence. Going to a company with a package of opportunities rather than a request for funding is more likely to be successful.

3. Include volunteering opportunities: Companies are increasingly looking at ways in which to engage their staff in innovative initiatives that will help with team-building, increase staff satisfaction, personal development opportunities and loyalty. Many staff now look for wider aspects of satisfaction from their employers and therefore NGOs need to look at the ways in which they can use staff time, skills and knowledge to contribute to meeting objectives in ways that excite and engage people. In the private sector, there is a rapidly growing interest in skills-based volunteering where members of staff can contribute their particular expertise and knowledge to a project so think about what can be leverages from people other than just time.

4. Differentiate your offering from others: It is easy to do the easy stuff, but doing the same as everyone else is not going to get a company noticed. NGOs need to offer companies opportunities for engagement that are innovative and “stand out” from the crowd. The more common a project, the less likely it is going to give the business the reputational benefits that they want to achieve. Approach businesses with innovative ideas to address your objectives with will be original and will get noticed.

5. Be clear about timescales: There is often a mismatch between what NGOs and businesses consider to be a long term commitment. Many NGOs working on development agendas will often talk about 10 year plans, yet for the private sector, even a commitment to a three year project is seen as pretty long. Businesses want to see results fast and sometimes that is difficult to achieve, but at least there is a need to be clear about time frames to avoid unrealistic expectations from businesses. Companies are increasingly used to reporting on their social responsibility on an annual basis and that means they need to have something new and significant to say at least once every 12 months. Help them to tell an interesting “story”.

6. Be clear about what the different partners bring: An effective partnership is likely to bring together different resources, expertise, knowledge, time and commitment. It is important from the outset to be clear who does what and when. Partnerships often fail because of differing expectations on both sides of the relationship and this therefore needs to be carefully planned from the outset and monitored as the project progresses.

7. Make sure that projects resonate with employees: Companies often want to get their staff involved in projects and the NGO will benefit from that staff time and expertise. Yet unless a project actually resonates with staff they are unlikely to engage enthusiastically. Requiring staff to volunteer is a stupid (but all too common) strategy by some businesses that results in animosity and creates negative impacts for the NGO. Be sure, therefore, that any project really does have a cohort of willing, able and enthusiastic staff members that are genuinely interested in being part of it.

8. Meet a social or environmental need that is clearly articulated: Too many NGOs are simply looking for general funding to support their operations. This will not attract the private sector. Businesses want to understand exactly what they are supporting and what the outputs and outcomes of that support are likely to be. Businesses and their staff want to see that they have made a clearly identifiable difference that they can talk about. Thus it is important to identify the specific needs that a project seeks to address and to identify the ways in which meeting such needs can be verified.

9. Measure impacts: Ultimately, we only know if a project has really made a difference if we are able to measure its impacts. Whilst this is not always easy, ensuring that a project does have a positive impact is likely to cement a partnership and take it forward into a longer term relationship. Businesses will want evidence that the different types of resources that they have provided have made an identifiable and measureable impact. In any project planning there needs to be a methodology for assessing impact.

10. Communicate success: There is increasing pressure on businesses to demonstrate their corporate social responsibility and disclose the initiatives that they have been involved with along with their impacts. NGOs can therefore play a key role in helping companies to report and communicate their initiatives. NGO support, testimonials and even the link to the NGO brand can help the company to demonstrate its corporate commitments to a wide stakeholder base.

Source: http://csr-asia.com/csr-asia-weekly-news-detail.php?id=12427