PDF Summary:Lean Impact, by Ann Mei Chang

Nonprofits and organizations focused on social impact face unique challenges compared to profit-driven businesses. In Lean Impact, Ann Mei Chang adapts the principles of the Lean Startup methodology for the realm of social good. She explores how organizations can accelerate progress and drive meaningful change by combining an ambitious vision with rigorous experimentation, validated learning cycles, and continuous improvement.

Drawing on case studies across sectors, Chang demonstrates how mission-driven entities can dive deep to understand the people they serve, rapidly test ideas with minimum viable products, form cross-sector partnerships, and measure impact through comprehensive frameworks. It's a guide for amplifying social impact in a world that demands innovative, data-driven approaches.

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Chang underscores the necessity of meticulously evaluating hypotheses regarding anticipated actions. She cautions against relying solely on self-reported data, as individuals' forecasts regarding their actions can often lack accuracy. Ann Mei Chang emphasizes the importance of evaluating authentic user engagement through the trial of rudimentary product versions in real-world settings. Nexleaf Analytics noticed discrepancies between the data from wireless sensors and the self-reported statistics on cookstove usage, leading to improvements in the stove design and the implementation of the program.

Other Perspectives

• Human-centered design may not always be the most efficient or cost-effective approach, especially when resources are limited or when the needs of the many outweigh the preferences of the individual users.
• Staying too close to an issue can sometimes lead to a lack of objectivity or an inability to make tough decisions that may be for the greater good but unpopular in the short term.
• Organizations might find that too much interaction with communities can lead to a diffusion of their mission if they are pulled in too many directions by trying to meet too many specific needs.
• A deep understanding of a problem's basic components is important, but it can also be time-consuming and resource-intensive, which might not be feasible for all organizations, especially smaller ones with limited budgets.
• Immersion in affected communities is valuable, but it can also create dependency or hinder the empowerment of those communities to solve their own problems.
• While compassion and involvement are important, they must be balanced with objectivity to ensure that the solutions are effective and not just well-intentioned.
• User-centered design is beneficial, but it may not always capture the needs of future users or account for broader societal impacts that go beyond individual user experiences.
• Behavioral science can inform strategies, but over-reliance on nudging and similar techniques can be seen as manipulative or paternalistic, potentially undermining trust and autonomy.
• Strategies based solely on observable behaviors may overlook the importance of subjective experiences, values, and cultural differences that can also drive behavior.
• While testing product versions in real-world settings is important, it can also be expensive and logistically complex, and it may not always be predictive of long-term success or scalability.

The process involves brainstorming, crafting solutions, rigorously testing their effectiveness, and making necessary adjustments.

One should not fall into the trap of thinking that a single, all-encompassing idea will suffice; instead, one should increasingly rely on data and real-world observations to inform their approach.

We ought to concentrate on enhancing and refining established solutions instead of constantly pursuing new inventions.

Ann Mei Chang suggests that it's a mistaken belief to think that major advancements in the social sector depend solely on devising an entirely novel concept. Ann Mei Chang argues that although groundbreaking innovations are important, focusing solely on novelty can lead to missed opportunities to refine and scale up solutions that have already been proven effective. To effect significant transformation, one must build upon what already works, adapt methods to new contexts, and leverage existing networks or frameworks to broaden impact.

Chang showcases instances where organizations have successfully broadened their influence by embracing proven techniques. The initiation of the YMCA's Diabetes Prevention Program was driven by extensive NIH-funded studies demonstrating that alterations in lifestyle can markedly reduce the incidence of type 2 diabetes. The organization collaborated with experts to enhance the community distribution network, broaden the initiative's scope to a multitude of centers across the country, and eventually secured Medicare's support for the intervention. Evidence Action, an organization committed to applying strategies validated by thorough research, has scaled up and widely executed a variety of tactics initially developed within scholarly environments. For example, the initiative known as "No Lean Season" provides financial assistance for temporary employment relocation, a strategy inspired by the promising studies carried out by Ahmed Mushfiq Mobarak of Yale University.

Incorporating a variety of viewpoints in the initial and creation stages can expand the range of possible results.

Chang emphasizes the importance of fostering imaginative thought to devise innovative solutions, while warning against restricting input to a narrow, uniform group of individuals sharing similar perspectives. She underscores the significance of uniting varied viewpoints to discover truly groundbreaking methods. Incorporating a variety of individuals from different sectors, disciplines, and backgrounds can expand the spectrum of potential solutions. Engaging community members right from the beginning ensures that strategies are tailored to honor cultural nuances and meet the unique needs of the area. Incorporating insights from technologists, behavioral scientists, or artists might reveal novel approaches and tactics that were previously unconsidered.

Ann Mei Chang uses the story of the elephant and the blind men to illustrate how a narrow perspective can limit understanding. Every person, upon encountering a different part of the elephant, develops a markedly different understanding of what an elephant is. To gain a comprehensive grasp of the subject, one must synthesize these diverse interpretations. She underscores the importance of collaborative endeavors spanning various sectors to propel innovation forward. The partnership with IDEO.org and the Bezos Family Foundation yielded an influential framework that incorporates parental engagement and combines the principles of human-centered design with an in-depth understanding of social and emotional development.

Using the simplest versions of products, known as MVPs, allows for an economical and effective assessment of the core assumptions regarding their worth, scalability, and the effect they have.

MVPs reduce risk by allowing organizations to fail early and cheaply before scaling.

Chang defines the minimum viable product (MVP) as the simplest, cheapest, and quickest version of a solution that allows teams to test key assumptions and gain customer feedback. The aim was to rapidly gain understanding while prioritizing the preservation of resources necessary to identify potential weaknesses. Organizations can conserve resources by beginning with small-scale projects and rapidly adapting, enabling them to solidify effective methods and, if necessary, decisively pivot to an alternative approach.

The author examines how a range of groups have utilized the concept of Minimum Viable Products to accelerate their learning, mitigate risks, and develop solutions that have a greater impact. Harambee launched its training program by initially focusing on a small cohort of job seekers and a few employers, targeting specific job roles and industries before broadening the scope to include a more diverse range of employment opportunities. FoodCorps validated its approach to engaging students with healthy food choices by using simple vegetable preference surveys and visually comparing lunch trays before and after participation in its programs.

The approach of continuous improvement is defined by formulating hypotheses, testing them through the development of Minimum Viable Products, gathering data, and refining strategies based on the insights gained.

Chang emphasizes the ongoing process of gaining validated knowledge. It's an ongoing cycle of identifying assumptions, forming testable hypotheses, building MVPs, collecting data, and drawing conclusions. This cyclical method demands modesty, an openness to making mistakes, and the resolve to discard approaches that fail to satisfy predefined benchmarks for success. She cautions institutions against "confirmation bias," a tendency to favor a particular strategy that may lead to the intentional use of specific data or the neglect of possible issues.

Ann Mei Chang champions a methodical strategy where every Minimum Viable Product is treated as a carefully controlled experiment. Before introducing a minimum viable product, teams should define their expected outcomes and determine the metrics for measurable achievement. She distinguishes between superficial metrics that typically reflect the degree of involvement and those that evaluate innovation by examining its efficacy, productivity, and worth. Metrics of innovation are crucial for assessing advancement and propelling enhancements forward. Chang showcases instances where organizations such as Harambee, CareMessage, and Revolution English have utilized a data-driven strategy to broaden and amplify their impact.

Context

• A Minimum Viable Product (MVP) is a basic version of a product with essential features for early users to provide feedback. It helps validate assumptions, gather insights, and guide further product development. MVPs are about launching quickly, learning from user feedback, and iterating to improve the product efficiently. The concept is widely used in startups and product development to test ideas, reduce risks, and focus on delivering value to customers.
• The National Institutes of Health (NIH) is a prominent U.S. government agency focused on biomedical and public health research. It conducts scientific research through its Intramural Research Program and provides substantial funding for research outside its own facilities through the Extramural Research Program. The NIH is known for significant scientific achievements, such as the development of vaccines and contributions to various medical breakthroughs. It comprises 27 institutes and centers specializing in different biomedical fields.
• IDEO.org is a non-profit design organization that focuses on solving social challenges through human-centered design. It is a sister organization to the design and consulting firm IDEO, known for its innovative approach to problem-solving. IDEO.org collaborates with nonprofits, governments, and social enterprises to create solutions that have a positive impact on communities around the world. The organization applies design thinking principles to address issues such as healthcare, education, and poverty alleviation, aiming to create sustainable and scalable solutions for social good.
• The Bezos Family Foundation is a philanthropic organization established by Jackie and Miguel Bezos in 2000, focusing on supporting education and various charitable causes. Jackie and Miguel Bezos, parents of Jeff Bezos, the founder of Amazon and Blue Origin, are major donors to the foundation. In 2023, the foundation appointed John Deasy as its new president, with Jackie and Miguel Bezos transitioning to co-chairs of the board of directors.
• Harambee is a Kenyan tradition of community self-help events, often involving fundraising or development activities. The term means "all pull together" in Swahili and has historical significance in Kenya as a way to foster unity and support local projects. Harambee events can vary from informal gatherings to formal, multi-day affairs, serving as a means to strengthen communities and promote collective action. The concept was popularized by Jomo Kenyatta, Kenya's first President, to encourage collaboration and resource mobilization for national development.

Transforming the community by systematically changing the system and rigorously evaluating the outcomes.

Enduring social transformation often stems from collective efforts to tackle inherent deficiencies in both market systems and policy frameworks.

Mission-oriented organizations play a crucial role in demonstrating viable solutions and advocating for fundamental shifts at the systemic level.

Chang acknowledges that although the work of individual entities is praiseworthy, creating lasting solutions to social and environmental issues requires an approach that takes into account the whole system. Businesses often face amplified challenges, not just due to economic constraints that limit the delivery of profitable services to specific demographics, but also because of government policies that turn out to be insufficient or unsuccessful in achieving the intended outcomes. She argues that entities guided by a unique purpose have an intrinsic edge in demonstrating innovative approaches, mitigating the dangers linked to new tactics, and advocating for substantial systemic transformations.

For example, VisionSpring initially focused on providing affordable eyeglasses in developing countries and realized that broader accessibility issues were linked to deficiencies in market operations and administrative structures. VisionSpring effectively broadened its influence and fostered international collaborations through the incorporation of vision services into pre-established community health structures, in cooperation with BRAC, an organization dedicated to the progress of Bangladesh. VisionSpring established the EYElliance, a collective that includes diverse participants, with the goal of encouraging businesses to focus on markets with lower economic prosperity, prompting governments to adopt policies for social protection, and motivating nonprofit organizations to improve their application of existing models.

Building partnerships across different areas is essential for magnifying the effect by leveraging shared assets and resources.

Chang emphasizes the importance of joint initiatives across different sectors in order to effect significant systemic transformations. Nonprofit organizations possess the ability to nurture innovation, highlight their successes, and draw the interest of diverse stakeholders. Companies possess the financial acumen to ensure stability and can provide expertise in operational matters, in addition to leveraging their well-developed networks for product distribution. Governments can shape policy, allocate funding, and adopt proven solutions at scale. Foundations are able to promote investment, provide flexible funding, and support research and development endeavors.

Chang illustrates various cases where collaborations spanning various industries have greatly amplified their effects. The Global Alliance for Vaccines and Immunisation (Gavi) has brought together a diverse coalition of stakeholders such as government bodies, branches of the United Nations, philanthropic groups, and vaccine manufacturers, which has been instrumental in substantially improving vaccination rates for children, thereby saving numerous lives. Blue Meridian Partners, a large donor collaborative in the United States, provides both flexible capital and strategic guidance to high-performing nonprofits to support their growth and leverage government funding streams. The initiative known as Project Last Mile, spearheaded by the Coca-Cola Company, partners with governments in Africa to leverage its extensive cold-chain distribution channels to ensure vital medications and immunizations reach remote areas.

Evaluating the impact of initiatives designed to improve society is crucial, but it introduces unique challenges that are not encountered when measuring business performance metrics.

Organizations can amplify their effectiveness by consistently applying strategies that confirm their achievements in multiple aspects, while employing a methodical strategy for transformation.

Ann Mei Chang acknowledges the difficulties in measuring the success of social endeavors, as they cannot be evaluated by straightforward financial metrics such as revenue or profit. Assessing the effectiveness of purpose-led organizations, especially in the philanthropic field, often necessitates a sophisticated and detailed method that might take years or even surpass a single generation to be completely recognized. However, she contends that the intricacy of the situation does not justify shirking from thorough impact assessment. An organization must assess the lasting value it delivers to its beneficiaries by considering more than just the initial outcomes, the resources expended, and the straightforward activities undertaken.

Chang recommends establishing a transparent structure that explicitly maps out the relationship between projects and their outcomes, and systematically identifies and prioritizes the key assumptions that need to be confirmed. By breaking down a complex theory of change into smaller, testable hypotheses, organizations can employ a tiered validation approach that starts small and iterates rapidly. The method's flexibility allows for essential modifications without risking significant commitment to a plan that may turn out to be ineffective. Ann Mei Chang highlights the One Acre Fund's dedication to enhancing and enlarging its programs for smallholder farmers through continuous improvement of agricultural resources, educational services, and financial structures, drawing on lessons from initial endeavors.

Randomized control trials have limitations, and organizations must balance the need for evidence with the imperative to continuously innovate.

Chang recognizes that while randomized control trials (RCTs) are often praised as the gold standard for evaluating social initiatives, they do have their drawbacks. In certain cases, especially in the context of influencing intricate policy decisions or evaluating shifts in social conduct, conducting a randomized controlled trial may not be feasible or ethically defensible. Ann Mei Chang advises skepticism towards relying heavily on the outcomes of rigorously designed experiments, highlighting that the effectiveness of a method may vary because of contextual disparities, meticulousness in implementation, or changing circumstances.

Instead of considering RCTs as the sole measure of success, Chang recommends incorporating them into a broader, iterative learning cycle that benefits from rapid techniques such as MVPs and A/B testing. By testing and validating key assumptions through less expensive, quicker experiments, organizations can enhance the effectiveness of their interventions prior to investing in a large-scale RCT. They also possess the ability to continuously improve the program while in-depth evaluations of the effects are underway.

Chang encourages mission-driven organizations to strike a balance between accountability for results and adaptability in their innovative approaches. She advocates for creating a nurturing atmosphere that promotes openness about all successes and challenges, coupled with a steadfast commitment to continuous learning and enhancement.

Context

• BRAC is a non-governmental organization based in Bangladesh. It is one of the largest NGOs in the world, known for its wide-ranging development programs focusing on poverty alleviation, education, healthcare, and empowerment of marginalized communities. BRAC works extensively in Bangladesh and several other countries, aiming to create sustainable solutions for social issues through innovative approaches and community engagement.
• Gavi, the Global Alliance for Vaccines and Immunisation, is a public-private global health partnership that aims to increase access to immunization in lower-income countries. It brings together various stakeholders like governments, international organizations, philanthropic foundations, and vaccine manufacturers to support vaccination programs. Gavi helps to provide vaccines to children in developing nations, contributing significantly to reducing child mortality rates and improving public health outcomes worldwide. The alliance focuses on ensuring that life-saving vaccines reach those who need them the most, especially in underserved communities.
• Project Last Mile is an initiative led by the Coca-Cola Company that partners with governments in Africa to leverage Coca-Cola's extensive distribution network to improve the delivery of vital medications and immunizations to remote areas. The project focuses on utilizing Coca-Cola's logistical expertise in supply chain management to help ensure healthcare products reach underserved communities efficiently. By collaborating with governments and leveraging existing infrastructure, Project Last Mile aims to address healthcare access challenges and contribute to improving public health outcomes in Africa.
• One Acre Fund is a social enterprise that provides smallholder farmers in East Africa with asset-based financing, agriculture training, and market support services to improve their livelihoods. They offer farmers a bundle of services including seeds, fertilizer, training, and market facilitation to increase their productivity and income. Farmers join village groups supported by One Acre Fund field officers to access these services and repay loans flexibly. The organization operates in several East African countries and aims to reduce hunger and poverty among rural farming communities.
• A/B testing, also known as split testing, is a method used to compare two versions of something to determine which one performs better. It involves showing variant A to one group and variant B to another, then analyzing the outcomes to see which variant is more effective. This method is commonly used in marketing, web design, and product development to make data-driven decisions and optimize results based on user responses. A/B testing helps businesses understand what resonates with their audience and improve their strategies accordingly.