ADM4312 Managing in the New Economy Session 4: January 25th

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ADM4312Managing in the New EconomySession 4
January 25th 26th, 2007

• University of Ottawa
• School of Management
• Instructor Margaret Dalziel

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Course Updates

• Session 5, February 1st 2nd
• Read
• Kaplan Norton and Kaplan originally associated
  with Session 6 AND
• Sawhill Williamson originally associated with
  Session 7
• Session 6, February 8th
• 700 a.m. Breakfast with Nortel
  Networks CEO Mike Zafirovsky
• Assignment 2
• To accommodate two guest speakers Assignment 2
  presentations may be moved to February 15th
  16th

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Session 4 Agenda

• Social entrepreneurs, review of Session 3
  readings and worksheet
• Dees, The meaning of social entrepreneurship
• Economist, three articles
• Case study Bringing eyesight to the poor
• Srikiran Institute (Ray of Light Broadcast)
• Aravind Eye Hospital (Hospitals in 2007)
• Aurolab
• Assignment 2 Measuring impact

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Dees, The meaning of social entrepreneurship

• A mission to create and sustain social value
• Recognize and relentlessly pursue new
  opportunities to serve mission
• Engage in a process of continuous innovation,
  adaptation, and learning
• Act boldly without being limited by resources
  currently in hand
• Exhibit a heightened sense of accountability to
  the constituencies served and for the outcomes
  created

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Some numbers

• Population of India 1.1 billion (Economist)
• Percent blind
• 1.4 in 1976 (Lancet, 2000)
• 1.8 in 2000 (Lancet, 2000)
• Percent blind objectives
• 0.3 by 2000 (Lancet, 2000)
• Eliminate preventable blindness by 2020 (Vision
  2020)
• Number of cases
• 7 million new cases per year (CBC, 2005)
• 5 million treated cases per year (CBC, 2005)
• Percent of cases attributable to cataract 80
• Time for cataract surgery
• 30 minutes (Wikipedia, 2007)
• 2.5 3 minutes (CBC, 2005)
• Number of cataract surgeries performed per year
• 95,000 Srikiran Institute of Ophthalmology (CBC,
  2005)
• 250,000 Aravind Eye Care System (Aravind, 2007)
• Price per plastic lens
• 100 - 150 in US (Changemakers, 2003)

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Intraocular lens technology

• Aravind Eye Hospital circa 1993
• ICCE most widely used procedure in developing
  countries
• No microscope, 20 minutes
• No new lens, aphakic glasses required
• Gradual improvement over 3-5 weeks
• ECCE
• Microscope, 30 minutes
• New plastic lens, no glasses
• Immediate improvement
• Aravind Eye Hospital and Srikiran Ophthamological
  Institute circa 2005-2007
• All patients receive plastic lens
• Aurolab circa 2007
• Coming soon Folding lens

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Cataract blindness - challenges for the 21st
century

• Cataract prevalence increases with age. As the
  worlds population ages, cataract-induced visual
  dysfunction and blindness is on the increase.
  This is a significant global problem. The
  challenges are to prevent or delay cataract
  formation, and treat that which does occur.
• Genetic and environmental factors contribute to
  cataract formation. However, reducing ocular
  exposure to UV-B radiation and stopping smoking
  are the only interventions that can reduce
  factors that affect the risk of cataract. The
  cure for cataract is surgery, but this is not
  equally available to all, and the surgery which
  is available does not produce equal outcomes.
• Readily available surgical services capable of
  delivering good vision rehabilitation must be
  acceptable and accessible to all in need, no
  matter what their circumstances. To establish and
  sustain these services requires comprehensive
  strategies that go beyond a narrow focus on
  surgical technique. There must be changes in
  government priorities, population education, and
  an integrated approach to surgical and management
  training. This approach must include supply of
  start-up capital equipment, establishment of
  surgical audit, resupply of consumables, and
  cost-recovery mechanisms. Considerable innovation
  is required. Nowhere is this more evident than in
  the pursuit of secure funding for ongoing
  services.

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• Cataract Surgery
• Weaknesses and limitations in this area were
  noted (1) Insufficient number of surgeries in
  some areas. (2) Overemphasis on the number of
  surgeries and not enough emphasis on their
  quality. (3) The general approach does not
  sufficiently target vulnerable groups, especially
  women. (4) Lack of screening. (5) Many people
  with advanced cataract are not reached. (6) In
  many cases, data collection is largely from the
  public sector and it is difficult to include data
  from the private sector. In other areas, most
  data are from the private sector and do not
  include the public sector.
• Strengths in the treatment of cataract (1)
  Treatment is based on a cost-effective
  intervention with, generally, highly successful
  results. (2) There are some very successful
  programmes which can serve as models. (3) The
  most effective technology is now generally
  affordable.
• Opportunities for further action (1) Making
  links with primary health care and
  community-based interventions to strengthen
  screening and referral. (2) Making links with
  health insurance schemes to increase the
  affordability of surgical services for patients.

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An output measure
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Your mission

• You are Bill Gates and you want to support the
  reduction of blindness in India by supporting the
  work of organizations such as the Srikiran
  Ophthamological Institute and the Aravind Eye
  Hospital. You have asked applicants for your
  support to provide data on 10 measures that will
  allow you to gauge the effectiveness of their
  efforts to reduce the incidence of blindness in
  India. What are those 10 measures?

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Assignment 2

• Read
• Kaplan Norton
• Kaplan, and
• Sawhill Williamson
• Select an existing nonprofit organization
• Describe organization, mission, and program (5
  pages maximum)
• Identify the best 10 performance measures and for
  each
• Estimate its best, expected, and worst case
  values
• Assess its strengths and weaknesses in terms of
• Importance
• Scientific soundness
• Feasibility
• Summarize your approach by
• Organizing your measures into a Strategy Map
  (See Page 5, Kaplan)
• Organizing your measures according to the Family
  of Measures approach (See Page 4, Sawhill
  Williamson)
• Report should include a short introduction and a
  meaningful conclusion