Pivot, Proceed, or Quit?: Lean Metrics for the Social Sector

Pivot, Proceed, or Quit?: Lean Metrics for the Social

Sector

Michel Gelobtermichel@leanchange.net

@lean_changeAuthor of Lean Startups for Social Change

What’s a Customer?• Private Sector = Someone Who Pays You• Social Sector = It’s a Lot More Complicated

The Customer…

Purchases program services

• Membership organizations (NRA, Sierra Club, Kids' sports leagues) that provides services to members based at least partially on dues

• Dues-paying member

Changes because of program • Political campaigns • Voters

Adopts behavior because of program

• Boycott campaigns • Consumers

Receives goods or services from program

• Food distribution programs• Hospitals

• Homeless people• Sick people

Uses program or its outputs• Federal Aviation

Administration• Airlines

Supports program 

• Foundations • Actual funders

Testing for What?• Graphic for Multi-Sided Market

Making a Difference: The Value Hypothesis & MVP

Goal Hypothesis MVP

Stop Global Warming States can cut emissions The Clean Power Plan

End Mortal Racism (a.k.a. lynching)

Media exposure can slow police murders

Black Lives Matter

End Homelessness Focusing on housing can reduce homelessness

100,000 Homes Campaign

Making Enough Difference: Growth Hypothesis

Goal Growth Hypothesis Necessary Scale

Stop Global Warming Congress passes climate legislation

15 Senators; 40 Congresspeople

End Mortal Racism (a.k.a. lynching)

Disproportionate violence ends Mizzou x ??

End Homelessness Campaign Zero 40 Cities?

Sustainability Hypotheses• Funders• Political Capital• Social Capital

Fail Fast! Wait…• Failure often NOT an option in the social sector: the Problem isn’t

going anywhere

• Paradox: Failing fast is even more important because:• Donor Regrets (a.k.a. moral opportunity costs)• Limited Social and Political Capital (newpaper headlines here)

The End

Michel Gelobtermichel@leanchange.net

@lean_change

leanchange.net/buy