Q&A: Andrew Hening, MBA 17, on solving chronic homelessness

Andrew Hening, MBA 17
Andrew Hening, MBA 17, San Rafael’s director of Homeless Planning & Outreach

As director of Homeless Planning & Outreach for the city of San Rafael, California, Andrew Hening used what he learned in his Evening & Weekend MBA classes to spearhead programs that helped lead to a 28% reduction in chronic homelessness in just two years in Marin County.

We talked to Hening, MBA 17, who grew up in Richmond, Virginia, and previously aspired to be a lawyer, about how he created new approaches to homelessness and why he believes that housing people isn’t as intractable a problem as many people believe.

When did you get interested in working on behalf of homeless people?

After college, I moved back to Richmond to work as a paralegal and study for the LSAT. To my surprise, I quickly realized the law wasn’t for me, and I started taking time off to volunteer in the community. I’d done a lot with youth and tutoring, but then I participated with a Project Homeless Connect event, which is essentially a resource fair for people living outside. It was my first exposure to homelessness, and it had a huge impact on me. Between that experience and my dad, a carpenter, losing his job during the recession, I decided that I had to do something to help economically marginalized people. With that goal in mind, I found AmeriCorps VISTA, which is the domestic version of the Peace Corps, and accepted a job as Santa Clara County Project Homeless Connect Coordinator in 2010.

You’ve been at your current job in San Rafael since 2016. What were some of the challenges you faced after you started?

My first City Council meeting was standing-room-only for a hearing about whether or not the city should revoke the use permit for a local nonprofit. There was this polarized community conversation around whether we needed to provide more services in the community or get rid of existing ones because they were enabling the problem. The truth was somewhere in between. We realized community frustration was really stemming from a small minority of the homeless community – the long-term, chronically homeless. While just 20% of the overall homeless community, these folks often exhibit untreated mental illness and generate other nuisances like public defecation. Importantly, these are also extremely vulnerable people – dying over 20 years earlier than their housed peers. We knew all of these people by name, but year after year they weren’t getting prioritized. In fact, four or five agencies might be serving the same person. There was no coordination, no strategy. So we said if we can figure out a system for them, we can start to fix this.

What happened after you started identifying the chronically homeless?

Our new process is shockingly simple. First and foremost, we finally prioritized chronic homelessness. We made vulnerability the top criteria for getting housing placements, which put the chronically homeless at the top of our housing list. Next, for people at the top of our list, we provided housing subsidies using Section 8 vouchers, a government program that requires people pay a third of their income on rent while the subsidy covers the rest. Additionally, the county hired dedicated landlord recruitment staff with property management experience, which was 200 percent more effective than relying on social workers to recruit landlords. We’ve now brought together county supervisors and city council members and created a public-private coalition with the Marin Community Foundation and the private sector to create even more housing. Finally, every person that gets a housing voucher also gets intensive wraparound services. We like to say that housing is essentially healthcare for these high-needs people.

What are some of the outcomes that you’ve tracked?

During our 18-month pilot that started in March of 2016, we housed 23 of the most visibly, chronically homeless people in the community. After validating this approach, we scaled it and over the last two years housed over 170 of the most vulnerable people in our community. Ninety-five percent of these people are still housed, and in San Rafael we’ve seen a 54% reduction in EMS transports and an 86% reduction in police department calls after people are housed. Amazingly, providing services and housing is roughly 50% cheaper than letting people languish on the streets.

How did your MBA courses help you when you were both designing the new program and educating the community about what you were doing?

Sara Beckman
Sara Beckman, who teaches design thinking at Haas

Being in the EWMBA program was amazing because I was constantly bringing fresh ideas back to the team — so many things that seemed tangential to homelessness but weren’t.  For example, from our operations class, I was seeing ways to apply supply chains and turnover to our housing placements and the speed at which people become and resolve their homelessness.

I also had an incredible mentor in Sara Beckman. After starting to learn design thinking during Applied Innovation, I did an independent study with Sara and also took her course on slums at the Jacobs Institute. Seeing the big picture and using data to analyze it — that really made a big difference. For months I had a floor-to-ceiling sticky note map on the wall in my office trying to map the flow of people through our homeless system of care. It helped make the case to policymakers that the system needed to change.

Do you think that the success you’ve had in Marin County could be replicated in larger cities like San Francisco or LA?

That’s my hope. It’s hard to believe, but in 2017, just as our new strategy was scaling up, Marin County had the 7th highest per capita rate of homelessness in the entire country. We had success here because we got all of the partners in the same room. We identified the people we needed to house, made a list, and started housing them. That’s a lot harder in a big city, but I think it can be scaled by creating smaller jurisdictions inside a city, including smaller populations of a couple of hundred people, as well as leveraging technology to communicate and coordinate.

The other tricky part is staying focused on housing. Across California, only about 30% of people who are homeless have access to shelter. It’s a humanitarian disaster, but the solution is more than housing. To the extent that communities invest in emergency shelter, it comes back to the idea of the operational supply chain: what is the pathway to permanent housing?

You’re writing a book about what caused modern homelessness. What is the goal?

I started writing this book about what’s causing this modern homelessness crisis after I finished the EWMBA program. I spent two years researching and writing. Now I’m finalizing a book proposal. The goal is to get it out to the general public, providing stories and solutions to end this. It’s so easy to talk about the negative stuff. I’m hoping to make people feel empowered to make a difference.

 

Haas unveils revamped sustainable and impact finance program

Katharine Hawthorne, MBA 20, came to Haas to build a career in impact investing.

Katharine Hawthorne, MBA 20, came to Haas to build a career in impact investing.
Katharine Hawthorne, MBA 20, came to Haas to build a career in impact investing.

She’s found plenty to dive into so far—as co-president of the Haas Private Equity Club, a principal of the school’s student-run social impact fund, and a summer intern at Patamar Capital in Jakarta, helping to make investment decisions in high-growth companies in South and Southeast Asia.

Now in her second year at Haas, she’ll be able to go even deeper, in a newly expanded sustainable and impact investing program that Berkeley Haas rolled out last week. The program, called Sustainable and Impact Finance, or SAIF, is focused on three sectors: sustainable investment, impact investment, and impact entrepreneurship.

Moving to the next level

By creating the new pathways, the program will better position students who aim to work in sustainable and impact finance as public fund managers or private equity investors, or in the startup world.

Assoc. Prof. Adair Morse spent the past year developing the new program with Prof. Laura Tyson, faculty director for the Institute for Business and Social Impact (IBSI).

SAIF includes new courses, expanded activities, research projects, internships, and student investment fund management opportunities in impact finance, which differs from traditional investment finance because investors aim for both positive financial return and a positive impact on environmental, social, and governance (ESG) outcomes, as well as social justice. In class, students learn how to evaluate a company based on its ESG performance.

Assoc. Prof. Adair Morse
Assoc. Prof. Adair Morse, faculty director of the new Sustainable and Impact Finance program.

“With SAIF, we’re continuing the Berkeley Haas tradition of thought leadership in sustainability and impact in finance and entrepreneurship,” Tyson said. “There’s deep interest in sustainable and impact investing careers at Haas, and our existing courses and activities, including the student-run Haas Socially Responsible Investment Fund, have been enormously successful.  SAIF will build on this strong foundation, enabling us to move to the next level in an organized, targeted, and meaningful way that keeps pace with rapid changes in sustainable and impact investing and impact entrepreneurship.”

“Haas needs to continue to lead the way in these areas,” said Morse, faculty director for SAIF. “The world is changing and we have issues of climate change, supply chain transparency, gender diversity, and social justice to take care of and this should be fully integrated into the business curriculum.”

A pioneer in corporate social responsibility

Photo of Prof. Laura Tyson
“We’re continuing the Berkeley Haas tradition,” – Prof. Laura Tyson, who worked on the SAIF initiative for the past year.

In a recent Wall Street Journal article, Haas was ranked the top graduate business school in sustainable finance and investing, according to data from the QS World University Rankings. The school is a pioneer in social impact investing, with efforts beginning during the late 1950s when late Dean Budd Cheit launched the first courses on corporate social responsibility. Haas now offers a total of nine courses devoted to the topic, more than any other school, as well as several others that cover related topics such as social impact metrics and impact ventures.

SAIF’s three tracks are designed to emphasize different aspects of impact investing. The course pathways are:

  • Sustainable investment: This track trains students to be managers of and investors in sustainable/responsible/ESG investment portfolios, primarily in publicly traded stocks and bonds. First-year courses include “Financial Information Analysis” and “Sustainable Portfolio Construction,” followed by a full year of investment work with the $3 million Sustainable Investment Fund. The fund, formerly called the Haas Socially Responsible Investment Fund, was founded in 2007 and has graduated over 90 students. Enrolled students become fund managers, analyzing investments and constructing and managing a portfolio.

    Haas students who manage the sustainable investment fund.
    MBA students who have managed the Sustainable Investment Fund at Haas, formerly called the Haas Socially Responsible Investment Fund. Photo: Jim Block
  • Impact investment:  Impact investing, a term coined by the Rockefeller Foundation in 2007, includes investments that generate financial returns and create a positive impact. This track prepares students for investment careers in private equity, venture capital, and real assets. Courses include “Impact Finance & Entrepreneurship” and “Impact Venture Partners: Portfolio.” Another course, “Impact Investing Practicum,” places student teams with impact investors to complete pre-vetted projects. Haas has placed seven teams, a total of 20 students, over the past several years in projects for clients including Omidyar, Salesforce, Patagonia, Cambridge Associates, and Gratitude Railroad.

    Photo of Jessie Tang, MBA 20
    Jessie Tang, MBA 20, worked on an impact investing project for Gratitude Railroad.
  • Impact entrepreneurship: This track helps students understand social impact financing from both a fund perspective and a startup perspective. Courses include “Impact Startup Launchpad” (previously Social Lean Launchpad), and “New Venture Finance.” Haas entrepreneurship lecturer Jorge Calderon leads the pathway, which includes management of a new fund called Berkeley Impact Venture Partners. The fund has a dual strategy: The “catalyst fund” provides startup teams at the pre-seed stage with $5,000 grants, while the “scale fund” helps startup teams, on or off campus, that are further along in their development with larger market rate equity investments. Electives for students in this track include “Food Innovation Studio,” “Impact Disco,” and “Social Impact Metrics.”
Haas entrepreneurship lecturer Jorge Calderon leads the entrepreneurship pathway
Haas Lecturer Jorge Calderon leads the impact entrepreneurship pathway of the new SAIF program.

Jessie Tang, MBA 20, said the pathways are a great way to formalize all of the program’s offerings. “I like that they’re trying to put more of a framework around this,” said Tang, who was on a team assigned last spring to an Impact Investing Practicum project with Gratitude Railroad, an alternative investment platform committed to solving environmental and social problems. “They’re working out ways to help the students navigate the course offerings in a better way.”

Growing interest in impact investing careers

Additional members of the SAIF team, who helped develop parts of the program and will also teach courses, include William Rindfuss, executive director of strategic programs, Julia Sze, a lecturer in social leadership, Ben Mangan, executive director for the Center for Social Sector Leadership, Nora Silver, founder and faculty director with the Center for Social Sector Leadership, and Assoc. Prof. Panos Patatoukas, who is launching new research on impact finance.

Tang, who will be the Graduate School Instructor (GSI) for the Impact Finance & Entrepreneurship class Morse is teaching this fall, is among a growing group of Haas students and alumni working in social and impact investing, including Patrick Hamm, MBA 20, who was a research analyst intern at Parnassus Investments, a pioneer in socially responsible investments, in San Francisco last summer; Adrian Rodrigues, MBA 18, who is co-founder and managing partner of Hyphae Partners, which works with businesses to develop and finance regenerative business models; Zeina Fayyaz Kim, MBA 16, an associate partner at NewSchools Venture Fund in Oakland, a national nonprofit venture philanthropy fund focused on public education; and Zach Knight, MBA 15, who is a co-founder and partner of Blue Forest Conservation, which works to protect forest health through a forest resilience bond.

Global Social Venture Competition celebrates 20-year anniversary

Pedro Moura and Jessica Eting, both EWMBA 18, started banking services startup Flourish Savings
Pedro Moura and Jessica Eting, both EWMBA 18, started banking services startup Flourish Savings.

Pedro Moura and Jessica Eting, both EWMBA 18,  built a rewards-based online and mobile savings account designed to appeal to people who underutilize banking services. Their hard work led to the launch of startup Flourish Savings, which has now earned a place at the April 5 Global Social Venture Competition (GSVC) finals.

“It takes a lot of expertise, research, and partnerships to tackle wicked problems like helping low-income and immigrant communities learn to trust banks, save money, and build credit,” Moura said. “We’re hoping that the judges will see how our idea has the potential to change the way people handle personal finance.”

The competition, which is celebrating its 20th year, will be held during the Future of Social Ventures Conference at Haas.

Flourish, along with Respira Labs, founded by Dr. Maria Artunduaga, UC Berkeley/UCSF MTM 18, Nerjada Maksutaj, MBA 20, and Nikhil Chacko, MBA/MPH 20, are the two Haas teams competing in the finals—among more than 20 global teams in this year’s competition.

L-R: Nikhil Chacko, MBA/MPH 20, Dr. Maria Artunduaga, UC Berkeley/UCSF MTM 18, and Nerjada Maksutaj, MBA 20. Photo: Yizhe Gu
L-R: Nikhil Chacko, MBA/MPH 20, Dr. Maria Artunduaga, UC Berkeley/UCSF MTM 18, and Nerjada Maksutaj, MBA 20. Photo: Yizhe Gu

A vision of a better world

GSVC has come a long way since its founding in 1999 by five MBA students—Lia Fernald, Alison Lingane, and Denise Yamamoto,  MBA 00, and Nik Dehejia and Sara Olsen, MBA 01. Their idea was to provide social entrepreneurs with mentorship, feedback, and a chance to hone their funding pitches.

Jill Erbland, GSVC’s program director, has watched the program’s number of partners and its international appeal to students grow since she arrived at Haas in 2007. This year, 11 partners hosted 12 regional semi-final events—and the competition had a record-breaking 692 applicants hailing from 67 countries. To date, GSVC has distributed more than $1 million in prize money, and helped more than 7,000 teams move closer to achieving their vision of a better world.

“In 1999, creating viable companies that had social impact was a nascent idea, even for Berkeley Haas,” Erbland said. “Our steady growth has been fueled by other universities prioritizing social impact and entrepreneurship educational programs.”

Following footsteps

The competition has launched a number of Haas student-led social impact ventures, including Indiegogo—co-founded by Danae Ringelmann and Eric Schell, MBA 08—and Revolution Foods—co-founded by Kristin Groos Richmond and Kirsten Saenz Tobey, MBA 06.

Flourish Savings’ co-founders are hoping to follow in their footsteps. Eting, the daughter of immigrants, and Moura, an immigrant himself, met in Senior Lecturer Sara Beckman’s Applied Innovation class. They soon discovered a common interest in helping people build savings habits, reduce reliance on debt, and achieve financial security. A pilot program demonstrated that participants saved an average of $192 in the first four months of using Flourish.

This is Eting’s second GSVC event. About 10 years ago, she was an attendee and guest of her boss, who had judged one of the regional competitions. “I was in awe of the people who were pitching, and I never once imagined it’s something I would be doing,” she said.

Meantime, Respira Labs aims to help people who struggle with chronic obstructive pulmonary disease (COPD), a progressive lung disease that obstructs breathing. The team is pitching a wearable lung-function monitor that that uses audio-signal processing and machine learning to alert patients, caregivers, and doctors when inhalers, medication, or medical care is needed. The data collected could be used to predict and prevent flare-ups of COPD, which afflicts 16 million Americans, according to the CDC.

Artunduaga met her Haas colleagues at Berkeley SkyDeck. Maksutaj said her family has been affected by COPD and was quick to embrace the startup’s mission. Chacko came to the team with a passion for solving health crises in low- and middle-income countries, to which the World Health Organization (WHO) attributes 90 percent of global COPD deaths.

“GSVC’s global focus is especially important to us because our long-term ambitions go beyond the U.S.,” Chacko said.

The full conference includes more than the GSVC final presentations and judging. This year’s sessions are organized around the theme “Technology for Good,” and sessions include “The Future of Food: A Design-Thinking Session with IDEO,” “Financial Inclusion and Technology” with speakers from Mastercard and PayPal, and “The Promise and Peril of Emerging Technologies in Social Impact.”

Attendees will also be able to watch presentations from all the finalists and meet GSVC co-founder Sara Olsen, who is serving as a judge this year.

Undergrads tie for win at National Diversity Case Competition

 (L-R) Advisor Mary Balangit with undergraduate students Alec Li, Claudia Diaz, Kiara Taylor, and Frances James.
(L-R) Mary Balingit, undergraduate assistant director of admissions, advised the National Diversity Case Competition winners Alec Li, Claudia Diaz, Kiara Taylor, and Frances James. Photo: Jim Block

A plan to build an inclusive new small-format Target store in Oakland netted a Haas undergraduate team a first-place tie with the host school at The National Diversity Case Competition (NDCC). The 8th annual event was held at Indiana University’s Kelley School of Business Jan. 18-19.

The Team: Team captain Claudia Diaz, BS 19, Kiara Taylor, Alec Li, and Frances James, all BS 20. The team’s advisor was Mary Balingit, assistant director of admissions & outreach for the undergraduate programs, and the undergraduate lead for inclusion & diversity. Faculty coaches were Haas Lecturers Steve Etter and Krystal Thomas, along with Erika Walker, assistant dean of the undergraduate program.

The Field: 168 undergraduates from 42 business schools around the country, competing for a total of $20,000 in prize money.

The Challenge: Choose a neighborhood and develop a strategy for the location, design, and merchandising of a new small-format Target store, as well as address ways to help the community integrate Target into their neighborhood. Target asked the students to consider community engagement, marketing, the supply chain, delivery options, finance & logistics, and diversity & inclusion.

The team’s plan: To build a small-format Target in downtown Oakland, called The Town’s Target, with a locally-owned café to be operated by a local food entrepreneur. The cafe would double as an incubator—a residency program that would allow that local entrepreneur to build clientele and develop an exit strategy to launch a business at the end of two years, at which time a new entrepreneur would take over the café. The café would include a mural painted by an Oakland artist collective, and a community space for local social justice organizations to meet. Electronic lockers in the store would house customer’s hot lunches or purchases and be accessible to people with disabilities and farmer’s market produce would be delivered daily, along with locally sourced products, like coffee, chocolate, and apparel.

Presenting their case at Indiana University
Frances James (speaking) and the undergrad team presenting at Indiana University’s Kelley School.

What made them winners: Storytelling, originality, and depth of content. Competition judge Zain Kaj, CFO of GE Global Supply Chain at GE Healthcare, said the team’s ideas were “creative and delivered with passion and a genuine sense of inclusion and celebrated what the weekend was all about.”

The competition provided the perfect platform for the team “to showcase how we’re living our culture out loud,” Walker said. “The Defining Leadership Principles were in full effect and I’m so proud of the team for its authentic approach and positive energy. It’s a well deserved win!”

James opened the team’s 15-minute presentation in a unique way—with spoken words.

Oakland
The land of culture, the home to change
The Brown Berets carried the torch for Chicano freedom
Black Liberation ignited
The voices of Malcolm X and Angela Davis heard loud and clear—they called for more
Oscar Grant killed, a flawed police force at fault
Black Lives Matter, they yelled, Black Lives Matter!
Tupac preached about changes, America needs change
Said forgive but don’t forget, always keep your head up
All of these voices came to form the Oakland we know
But it has become so much more…

A collage included in the undergrad students' presentation.
Alec Li’s collage included in the student’s presentation was an homage to Oakland’s rich history.

Li designed a stunning visual presentation, with collages representing Oakland’s rich history.  “We hit every emotion,” he said. “We made them laugh, and made them cry.” Taylor had great command and presence in the room, Balingit said.

The secret sauce: Diaz’s slow and steady delivery of her personal story of growing up in a low-income community in South Central Los Angeles—a food desert, she said, where your choices were either “McDonalds or Jack in the Box because there were no fresh strawberries or apples.” A Haas senior and a social justice warrior, Diaz served as team captain, and “the person who had to rally everyone together,” Taylor said.

The Haas Factor: Questioning the status quo. When the students read the case they boiled it down to one word: gentrification. Then they focused on Oakland, and how gentrification has impacted the city. That led them on a tour of Oakland with Balingit, where they drove past shuttered mom and pop stores and discussed the homeless problem and how lower income people were priced out. They decided that every aspect of their case must prioritize inclusion and the needs of the community. The approach was very “Berkeley,” Balingit said, referring to the focus on social justice.

Alec Li, Mary Balingit, Claudia Diaz, Frances James, and Kiara Taylor in Indiana.
Alec Li, Mary Balingit, Claudia Diaz, Frances James, and Kiara Taylor take a break in Indiana.

Most memorable experience from the competition: A standing ovation from the crowd. “We could not get out of that building when we were done,” Taylor said. “We were literally held back.”  At that moment, James said, “we knew we had made an impact.”

The students got to bring their whole authentic selves to the competition, Balingit said. “They brought such a fresh, innovative and risky approach but still won the hearts of everyone there,” she said. And another fun outcome: they all finish each other’s sentences now—and might just be friends for life.

New fund launches for social impact startups

Jorge Calderon, founder of the new Berkeley Haas Social Venture Fund, with Venture Fellow Jessie Tang, MBA 20,
Jorge Calderon, founder of the new Berkeley Haas Social Venture Fund, with Venture Fellow Jessie Tang, MBA 20. Photo: Jim Block.

Maggie Fried, MBA 19, spent years working for nonprofits before coming to Haas.

Now, Fried is getting a chance to make a different sort of impact as one of four Portfolio Fellows who are working to support social impact startups on campus through the new Berkeley Haas Social Venture Fund (BH-SVF).

Maggie Fried
Portfolio Fellow Maggie Fried

“I came to Haas to learn how to grow a business and provide strategic support,” said Fried, who is focused on food, water, and health-related startups. “To be able to put into play what I’ve been learning is so meaningful to me.”

The BH-SVF program’s mission is two-fold: it provides experiential learning opportunities for graduate students interested in impact investing, while also giving student-led social ventures financial support, mentoring, and resources.

Launched in spring 2018 by Haas entrepreneurship lecturer Jorge Calderon, the fund allots two types of awards: a resource award, which provides ventures with an expert network, mentoring from the Portfolio Fellows, and office space, among other benefits; and a financial award that grants up to $5,000 to social ventures developing businesses. Recipients also get three months of dedicated coaching from a network of advisors, who are primarily UC Berkeley and Haas alumni.

Fried is among four full-time MBA students who have been named Portfolio Fellows in the new program, which is an independent study course. She joins Stephanie Solove, MBA 19, who is focused on education and the workforce, Jessie Tang, MBA 20 (financial services and housing), and Sam Roth, MBA 19 (energy and the environment). Fellows are already experiencing the value of the new program. “I’m meeting people across Berkeley’s social entrepreneurship space, serving as an advocate, and supporting these entrepreneurs as they build out their ideas,” Tang said.

Portfolio Fellows conduct multiple rounds of due diligence and weigh in on financial award decisions made by the fund’s managing council, which includes Calderon as chair, and Haas Lecturer Julia Sze and Senior Lecturer Sara Beckman.

Jorge Calderon
Jorge Calderon says alumni will play a big role as mentors.

The first grant recipient is Pedi-Ed, a health education non-profit co-founded by Ahaana Singh, BS 19 (public health), Caroline McGuire, a senior majoring in integrative biology, and Boston University senior Adam DeAngelo. Pedi-Ed produces illustrated videos explaining severe health conditions to pediatric patients and their families. With their initial award, Singh said she hopes to hire full-time staff, increase outreach, and expand the range of medical topics in the startup’s video library.

Among the fund’s goals is to support 10 to 20 social venture startups per semester, said Calderon, who is also a social impact fellow at the Haas Institute for Business and Social Impact and a previous recipient of the Richard H. Holton Teaching Fellow Award.

“The fund addresses the growing interest Berkeley students and alumni have in pursuing careers that integrate positive social or environmental impact with business innovation,” he said. “BH-SVF joins a rich ecosystem of entrepreneurship and impact innovation, campus programs, clubs, and courses that are collectively preparing future leaders who go beyond themselves.”

Haas alumni play a critical role with the the new fund, Calderon added. “We are lucky that Berkeley alumni constantly offer to help our students,” he said. “The fund incorporates their interests by providing them with a unique way to be part of the learning process as not only donors, but mentors and advocates. ”

The fund’s first donor is the Sanaya Shah Memorial Fund, created by members of the Berkeley MBA for Executives class of 2017 in memory of the daughter of classmate Sumit Shah and his wife, Astha Shah. “They have been wonderful to work with on our shared vision and we appreciate their thoughtfulness and offer of support,” Calderon said.

In the future, there are plans to scale the program by partnering with additional alumni and others interested in expanding social entrepreneurship at Berkeley.

Startups interested in applying for a BH-SVF award must address a pressing social or environmental issue. Teams should include at least one current Berkeley student as a founder and should a demonstrate commitment to building their social venture.  The fund is open to both for-profit and nonprofit business models.

 

From improving safety to installing solar: social impact interns make change

As a social impact fellow, Claudia Luck, MBA 19, worked at Yellowstone National Park.
Claudia Luck, MBA 19, worked to improve visitor safety at Yellowstone National Park last summer.

Last summer Hugh G. Martin, MBA 19, made his inaugural trip to Africa, where he worked to equip off-the-grid homes in Tanzania with solar power.

“A highlight for me was seeing the looks on families’ faces when they used a TV in their homes for the first time,” says Martin, who worked for ZOLA Electric, which aims to bring solar power to one million homes in Africa over the next few years.

Hugh Martin worked for ZOLA Solar in Tanzania as a fellow.
Flanked by ZOLA Electric office managers Ana Uronu (left) and Jane Mercy (right), Hugh G. Martin (middle) brought power to homes in Tanzania.

Martin, who also traveled to Kenya during his internship, was among 13 students, all MBA 19s, who received summer internship stipends from the Haas Social Impact Fund (HSIF). Since launching in 2004, the fund has helped students interested in the social-impact sector close the gap between what they could have made at a corporate internship versus what they would make at a social-impact internship. Each applicant received $500 to $7,000 that could be used to pay salary, living expenses, or travel expenses.

Each spring the HSIF holds a fundraiser asking peers to donate one day of pay that they’d expect at a corporate internship, according to Kevin Phan, MBA 19 and the MBA Association’s vice president of community. Students raised about $25,000 this past spring.

Claudia Luck, MBA 19, spent her summer at Yellowstone National Park as a consultant, analyzing the impact an increasing number of guests are having on visitors’ safety within the park. Her project required the use of four park databases and interviews with dozens of stakeholders to help the park determine how to best organize the 100-plus members of its Visitor Resource Protection division.

Luck, who worked at Adobe as a client training manager before coming to Haas, said she interviewed rangers, emergency medical technicians, justice center specialists, detention center workers, and entrance station attendants to understand how an increase in visitors would impact the park workers’ time and resources.

“I just loved the idea of spending three months way outside of my box—pursuing my passion for hiking, seeing Yellowstone, and working for the government,” Luck says.

Hannah Levinson (third from left) with part of her Third Plateau team.
Hannah Levinson (third from left) with members of Third Plateau, which worked to refresh the SF Unified School District’s arts education curriculum.

For Hannah Levinson, MBA 19, an internship kept her closer to Berkeley. She worked for consulting firm Third Plateau on a mission to refresh the San Francisco Unified School District’s Arts Education Master Plan. For part of her work, she held focus groups with underrepresented minority students in the Bayview and Mission districts to better understand their arts education needs.

Levinson said she took away a lot about how to conduct unbiased interviews and construct questions through her Third Plateau consulting experiences. “For example, asking a leading question gets a biased response,” she says. “I made a point of getting feedback after every interview, and it helped me to shape my questioning.”

 

More HSIF student internship stories are available on ImpactMBA, the Center for Social Sector Leadership’s Medium channel.

Fundraising and applications for the Haas Social Impact Fund will open in April 2019, headed by Midori Chikamatsu, MBA 20, incoming vice president of community. Donations to the fund are accepted year-round here.

Enhancing financial inclusion among bottom-of-the-pyramid entrepreneurs in Mexico

Mexican street scene

On the corner of a bustling, working-class neighborhood in Mexico City, Maria González has run a small photography business for years.* Recently, she took out a bank loan to purchase a new digital camera and printer that enabled her to produce high-quality images and deliver them at a rapid speed. González’s clients noticed her improved service and spread the word—new customers flooded her store. A few steps down the same street, Andres Perez owns a bookstore that would benefit from renovations. While these improvements would presumably attract much needed customers, Perez refuses to take out a bank loan. He explains that bank loans are stressful, require too much paperwork, and are meant for people with money or assets.

Financial inclusion brings major benefits to individuals like González and entire economies. By allowing people to invest in their future, smooth consumption, and manage risk, access to and use of a range of financial services help reduce poverty and inequality. Yet, access to financial capital is often cited as a barrier to growth for microentrepreneurs in emerging countries. In these countries, 40 percent of formal micro-, small- and medium-size enterprises are financially constrained.

But, as Perez’s story demonstrates, unmet financial needs among microenterprise owners may also be a result of low demand for the formal financial services available to them. Despite the availability and benefits of loans through banks and microfinance institutions (MFIs) in Mexico, take-up rates of formal financial products among microentrepreneurs is often surprisingly low. For example, only 4 percent of eligible applicants take up the credit available to them from Mexican bank and MFI Compartamos Banco. A new report by the Institute for Business & Social Impact at the Haas School of Business, University of California, Berkeley, in partnership with the Mastercard Center for Inclusive Growth, surveys microenterprise owners clustered at the bottom of the pyramid in Mexico and investigates possible reasons for their disinterest in formal financial services.

Pen and paper shop in Mexico City_photo by Paul Sableman
Photo: Pen and paper shop in Mexico City by Paul Sableman, Creative Commons

The formal versus informal financial system

The new report presents evidence that small business owners in Mexico prefer informal financial networks to the formal financial system. In the sample of more than 1,300 Mexican microentrepreneurs, over 75 percent do not consider borrowing from the formal financial system in times of economic need. Rather than take out a bank loan or MFI credit, more than two-thirds of these entrepreneurs would prefer to draw from their personal savings or borrow money from a friend or relative, and about 10 percent would sell belongings in exchange for cash. Interestingly, this is true among microentrepreneurs in the sample across all levels of education, suggesting that it is not lack of information or understanding that is compelling these small enterprise owners to avoid formal financial products.

The report goes further, inquiring what features of formal bank and MFI loans are unappealing to microentrepreneurs. Their aversion to collective loans stands out as an explanation. To guarantee high repayment rates, discourage risky projects, and increase accountability, formal banks and MFIs will often require microenterprise owners to apply for credit with a group of peers or neighbors. All group members would be penalized if the loan is not fully repaid. While collective loans are designed by banks and MFIs to increase credit availability to microentrepreneurs without collateral or prohibitively high interest rates, this design feature appears to discourage eligible borrowers in Mexico. Even in times of economic distress, the majority of Mexican microentrepreneurs surveyed would prefer an individual loan, citing as reasons personal responsibility for repayment, flexibility of credit to individual business dynamics, difficulty in meeting group eligibility requirements, and higher loan amount disbursed.

These results suggest that specific design features of formal bank loans and MFI loans intended to serve microentrepreneurs clash with their preferences, and inadvertently keep them on the periphery of the formal financial system.

Mexico City street scene by Paul Sableman, Creative Commons
Photo: Mexico City street scene by Paul Sableman, Creative Commons

Technology and financial inclusion

Cell phones and digital technologies are likely to provide the platforms necessary to increase financial inclusion for microentrepreneurs in the informal and formal economy. The report finds that over three-fourths of microenterprise owners in the sample own a cell phone. However, only 14 percent of cell phone owners use their mobile device for business-related transactions. Mobile channels—perhaps developed by formal financial institutions—could be used to track transactions, customers, and revenue to determine eligibility for individual loans, as well as monitor credit dispersion and repayment rates. Targeted programming that encourages business-related cell phone usage and training could lead to efficiency gains and unleash potential for microentrepreneurs. The cell phone market in Mexico is projected to keep growing, providing opportunities for value-added services that have the potential to increase financial inclusion and market share for microenterprise owners.

These findings suggests that digital technologies might enable banks and other financial institutions to design better products that encourage microentrepreneurs to engage in the formal financial system. Indeed, mobile money and other forms of digital finance are likely to be the major channels for accelerating progress on financial inclusion in Mexico and other emerging market economies. Of course, in addition to technology, there are various factors that influence a microentrepreneur’s demand for a loan, including low trust in formal banks and the government, fear of debt, sensitivity to interest rates, and lack of information.

Strivers in Mexico

To facilitate smooth transactions between banks and microentrepreneurs, banks must be familiar with microentrepreneurs’ business profiles, characteristics, and motivations. The report points out that microenterprise owners in Mexico vary significantly with respect to their level of education, number of clients per week, volume of sales, and amount of loans received in the past year. These findings indicate that it might be possible to determine the demand for financial products by individual microentrepreneurs based on their level of education or the size of their business.

As financial inclusion increases, some microentrepreneurs may be especially well positioned to benefit. The report proposes a framework to identify and classify this particular category of microentrepreneurs, termed “strivers” by the Mastercard Center for Inclusive Growth. Strivers are operating enterprises with two to 10 employees in rapidly growing market segments. They are poised to thrive and contribute to inclusive employment and economic growth within their communities, but are lacking the tools to increase their competitiveness and fully realize their business potential. The majority of respondents (60%) surveyed in the report are strivers by this definition.

Strivers, like most of the microentrepreneurs in the sample, prefer informal and individual loans, and are likely to own a cellphone. For strivers in Mexico, mobile devices may serve as important tools for information, training, and capital that lead to growing market share. The majority of the Strivers in the sample chose to be entrepreneurs over pursuing formal jobs; have a distinct sense of agency in their lives; and, as a result, believe that they have more control over their business outcomes.

Going forward

This report provides an initial window into the lives and decisions of microentrepreneurs and strivers in Mexico. It highlights their need for credit to stimulate growth; specific barriers that keep them from taking-up loans from formal financial institutions; and the potential for mobile phone technologies to increase their engagement with these institutions. Impact-oriented design and evidence-based evaluation of financial products tailored to the needs of microentrepreneurs have the potential to vastly increase financial inclusion in emerging economies around the world. Bold approaches are necessary to realize the vision of sustainable growth for this promising segment of the economy.

*Names have been changed to maintain anonymity.

 

RESOURCES

Download the full report.

Download the report appendix.

 

Laura D. Tyson is Interim Dean of the Haas School of Business and Faculty Director, Institute for Business & Social Impact, University of California, Berkeley.

Byron Villacis is a PhD candidate, University of California, Berkeley.

A handout or a helping hand? How we judge others guides how we help others

Asst. Prof. Juliana Schroeder_headshotCharities often emphasize the desperation and dependence of those they assist—as in heart-tugging videos of starving children in Africa. Yet a focus on helplessness may change how we choose to help those in need, and not necessarily for the better, according to research by Berkeley Haas Asst. Prof. Juliana Schroeder.

“Charities want to motivate people to give more, but they may also make people think poor people don’t have the ability to take care of themselves,” says Schroeder, a social psychologist who studies judgment and decision-making as well as interpersonal and intergroup processes. “If you perceive of someone as having less mental capacity to think or feel, then you are subtly degrading and dehumanizing them.”

In a study published in the Journal of Experimental Psychology, Schroeder and co-authors Adam Waytz of Northwestern University and Nicholas Epley of the University of Chicago found that people act more paternalistically towards those they believe have lower mental capacity. What’s more, they found, people often believe they have more mental capacity than do others.

Their findings reveal fundamental truths about how people think about giving and receiving aid. These insights have implications not just for international charity, but also for policies on a wide range of issues, from soda taxes to gun control.

Paternalistic aid_Juliana Schroeder researchPaternalistic aid

Schroeder and her colleagues conducted a series of nine experiments, making a distinction between paternalistic aid, in which givers make a decision about what recipients need, and agentic aid, in which recipients can decide for themselves what they need.

In the first experiment, they asked people to rate their perceptions of poor people in Kenya and Uganda, using an eight-point scale that measured perceived self-control, memory, planning, thoughtfulness, and cognition. They then asked subjects to decide whether they’d rather contribute to a charity called GiveDirectly, a relatively agentic charity which transfers money to poor people with no strings attached, or to a more traditional, paternalistic charity such as the Red Cross, which provides food, medicine, and other services.

They found that those who rated the mental capacity of the African aid recipients more highly were also more likely to choose GiveDirectly, and less likely to believe the recipients would waste the money. “When you think of a person having less self-control and willpower, you think they will make bad decisions and will be more likely to waste the aid,” says Schroeder. “They don’t know what is good for themselves.”

(Schroeder’s study didn’t examine which charity was actually more effective, focusing rather on which charity people thought would be better. However,  a controlled experiment  by Princeton professors Johannes Haushofer and Jeremy Shapiro found no evidence that recipients of GiveDirectly’s unconditional cash transfers waste the money; rather, the cash transfers measurably increase food security and economic and psychological well-being. A group of researchers, including Berkeley’s Michael Walker and Ted Miguel, are currently conducting a larger study on the program.)

Helplessness vs entrepreneurial spirit

Moreover, the researchers found that people’s ideas about aid recipients’ mental capacity could be easily manipulated. In another experiment, they gave more than 500 visitors to Chicago’s Museum of Science and Industry a token representing a dollar, and then asked them to drop it in one of two slots—one for GiveDirectly and the other for OxFam, a more paternalistic global charity that seeks to alleviate poverty.

Beforehand, they gave participants one of two descriptions about charity recipients: one highlighted their drive and entrepreneurial spirit; the other, their neediness and resignation. While overall, 58 percent of participants gave to OxFam versus 42 percent to GiveDirectly, those who were told of the recipients’ pluck were 23 percent more likely to choose GiveDirectly. “Even when the recipient group is exactly the same, the information you give someone about them meaningfully influences their giving behavior,” Schroeder says.

Different rules for ourselves

Schroeder and colleagues also found that when it comes to themselves, however, people tend to prefer a more hands-off approach. In another set of experiments, they presented participants with a series of policies on issues including healthy eating, credit card debt, retirement savings, and gun control. They then asked them whether a paternalistic or agentic policy would be more effective for the average citizen, as well as which policy would be more effective for themselves.

Participants were much more likely to choose the paternalistic policy for others. For example, 35 percent recommended a ban on unhealthy foods over a policy of listing calories in restaurants for others, whereas only 28 percent recommended it for themselves. Likewise, 55 percent recommended mandatory retirement accounts rather than optional accounts for others, versus 39 percent for themselves. A similar 55 percent recommended bans on certain firearms over a gun safety course for others, but only 39 percent for themselves.

Using statistical analysis, the researchers found that the results were largely determined by how people rated others’ mental capacities versus their own. “People are pretty convinced they have a lot of willpower, while others don’t have the same level of self-control,” Schroeder says.

Thinking twice about assumptions

In yet another experiment, however, researchers found this assumption too is changeable. The day before Thanksgiving, the researchers asked participants whether they had high willpower; they then asked a different group of people the same question the day after Thanksgiving—presumably after they’d had one or two extra helpings of turkey and apple pie. The second group not only rated themselves as having lower willpower, but they were also more open to paternalistic policies on healthy eating, both for themselves and others.

Schroeder points to the fact that such perceptions are malleable as a good reason to question how our perceptions of ourselves and others may affect the way we behave. Charities that emphasize the helplessness of aid recipients may unintentionally send a signal they have low mental capacity. “When you dehumanize an individual or a group it can affect how you help them,” Schroeder says.

Meanwhile, those donating to charities or setting policies for fellow citizens may want to think twice about the assumptions they are bringing to their own altruistic impulses, and what is most likely to empower those they seek to help. “People can be more cognizant about the ways they are thinking about their own mental capacity and that of others,” says Schroeder, “and pause to get more information before they start helping.”

More research by Asst. Prof. Juliana Schroeder:

Donald or Hillary? Why listening to them matters to voters.

 

 

 

MBA seminar builds skills to talk about race and racism

When Anne Kramer, MBA 18, attended the first session of a new seminar called “Dialogues on Race,” she was surprised to learn she’d spend the initial two weeks in a group with other white students. They were asked to discuss the first time they realized they were white, past experiences talking about race, and hopes and concerns for the class—before coming back together with the diverse class group.

“It felt weird and uncomfortable (for students to be divided up by race), but it made it very real,” Kramer said. “We were there not to ignore differences, but to understand differences and then have a dialogue about them.”

The Dialogues on Race Course teaches students how to talk about race
Kenny D’Evelyn, left, listens and Erin Gums (center) shares her perspective in a Dialogues on Race session. (Photo by Caron Creighton)

Reflecting on identity and power

Bringing that discomfort into the open was exactly the point of the student-led independent study seminar, launched this fall in the Full-time MBA Program. A survey led by MBA students in the Race Inclusion Initiative last year found that while 90 percent of their classmates believe that understanding racial dynamics is a key component of effective leadership, less than half say they are comfortable talking about race.

Inspired by a class called “Diversity in the Workplace,” Liz Koenig, MBA 18, drafted a plan to push classroom discussions on race even further. That became “Dialogues on Race,” a ten-week seminar aimed at creating a safe space for students to develop better skills for engaging in these conversations in their careers and lives.

“The ability to reflect on identity and power is a core competency, certainly for being a leader of any kind, or a manager of human beings,” said Koenig.

Pete Johnson, Assistant Dean for the Full-time MBA Program & Admissions, said the seminar builds on elective MBA courses such as “Diversity in the Workplace,” “Groups and Teams,” and “Business Case for Investing in Women,” which all explore ways to understand diversity and help students to develop management skills. Berkeley MBA students can develop student-initiated or independent study courses under the guidance of a faculty advisor.

“I’m thrilled that our students are using the independent study option to further enhance their ability to lead diverse teams and organizations,” Johnson said.

Gabriela Belo Soares (center) shares her perspective as Ejede Okogbo and other MBA classmates listen. (Photo by Caron Creighton)

Balancing the class

Koenig and co-facilitator Om Chitale, also MBA 18, actively recruited a broad cross-section of students, and chose the class times based on when the most representative groups were able to enroll. There was so much interest that they added a second section, facilitated by Atim Okorn, MBA 18, and alum Patrick Ford, MBA 17, who had co-led the Manbassadors male ally program as a student. Asst. Prof. Drew Jacoby-Senghor acted as faculty sponsor.

In the end, the classes included about 60 percent white students and 40 percent students of color—a ratio similar to the racial and ethnic breakdown of the US population. Aside from two students with scheduling conflicts, all 28 students who applied were able to enroll.

“We didn’t want to end up in a situation where there was anyone who felt like they had to speak for a group,” said Koenig.

Erin Gums, MBA 18, said she enrolled because she realized she had a part to play in the conversation. Growing up identifying as both black and Pacific Islander, and working for years in education, she had thought about and talked about race her entire life—but was not having those conversations with her white peers, she said. This was a group she trusted enough to open the conversation.

“This experience was something I will always remember as a very important part of my time here at Haas,” said Gums, who also serves as VP of Diversity for the MBA Association. “I have chosen to be in the business world and be a business leader, and I have chosen to play a role in pushing for a less racist society. This course helped me put words to some ideas that I’d never articulated clearly, and to practice skills to have these sensitive conversations with people in less comfortable environments in the future.”

Burning questions

According to Chitale, the class took on a life of its own. As students provided feedback from week to week, the facilitators adjusted the course content and structure—for instance, by replacing one of the final sessions with an open two-hour discussion of “burning questions.”

“One thing that was interesting was how the goals of the class evolved,” said Adrian Williams, MBA 18. “At first it was giving people practical, tactical tools on how to attack issues of diversity and inclusion outside of the classroom. Over time, we realized some of the issues were a lot more nuanced than we thought. It also became apparent that I had some blind spots that required me to think through some of my arguments.”

Talking about race
Facilitator Liz Koenig leads students in a reflection. (Photo by Caron Creighton)

For Kramer, this class was the first opportunity she’d had to engage in deliberate conversations on race. “The concept of race in the US was something that I didn’t see in my everyday life growing up,” said Kramer, who spent much of her childhood in London and Hong Kong. “Conversations that I might have shied away from before, or uncomfortable things that people might have said before, now I’m willing to actually ask: ‘What makes you think that?’”

Kim Ayers, MBA 18, said it was eye-opening to learn that her classmates of color were dealing with hurtful interactions related to their race on a regular basis. “The fact that I was largely blind to that until we directly engaged in this conversation was really powerful to me,” said Ayers.

Awkward and intense moments

Gums said there were some awkward and intense moments—which she believes are inevitable for change to occur. “My fluency with these topics is going to be greater than that of people who have just started thinking about these issues for the first time in their lives, and that’s okay,” she said. “We need to recognize that people will mess up and say the wrong thing, but that shouldn’t prevent you from continuing to have these difficult conversations.”

Ultimately, “issues of race and racism are so complex and messy—there’s no one approach or one good way to solve it. If it were that simple we would have figured it out by now,” Gums said. “There are many roles we need people to play to address systemic issues.”

The course is one of several student-led initiatives aimed at helping students develop more fluency in addressing racial dynamics. Students in the Race Inclusion Initiative—a research-based MBA student effort to increase the number of underrepresented minorities in the program and make the climate welcoming for all—organized “Dialogues over Dinner” this month, where students were asked to read an article or watch a short video on a race-related topic and then discuss it over small group dinners. All ten of the dinners were facilitated by students from “Dialogues on Race” eager to put their learning into practice.

Koenig and her co-facilitators are planning to lead “Dialogues on Race” again in the spring. It garnered rave reviews, and they’ve received over 47 applications for the spring section. “My hope is that we get to a place where this is considered core to the fabric of any MBA program,” she said.

“Businesses have power and influence in society,” said Chitale, the co-facilitator. “If we can get business leaders to be open and vulnerable on ideas of identity and power and privilege, I truly believe that’s going to have an impact on society.”

Patrick Awuah, MBA 99, founder of Ashesi University, receives WISE Prize for Education

Watch a documentary of 2017 WISE Prize for Education recipient Patrick Awuah, MBA 99, founder and president of Ashesi University in Ghana.

Her Highness Sheikha Moza bint Nasser, chairperson of Qatar Foundation, presented the prize to Awuah on Nov. 15 at the Opening Plenary session of the 8th World Innovation Summit for Education in Doha, Qatar, before an audience of 2,000 people from 100 countries.

New Center for Gender, Equity & Leadership to launch at Haas

<em>Assoc. Adj. Professor Kellie McElhaney will serve as founding director of the new Center for Gender, Equity &amp; Leadership.</em>
Assoc. Adj. Professor Kellie McElhaney will serve as founding director of the new Center for Gender, Equity & Leadership.

Kellie McElhaney has for years built the case that when businesses fail to diversity their leadership, or don’t treat men and women equally, they risk their bottom line. Now, she’s launching a breakthrough new center to put that data—as well as the deep Haas faculty research expertise—to work.

“The economic case for supporting workplace diversity and women in business has never been stronger,” said McElhaney, an associate adjunct professor at Haas, who is launching the new Center for Gender, Equity & Leadership (CGEL) on Nov. 6. “Women, underrepresented minorities, and the LGBTQ community face systemic structural, cultural, and individual barriers to opportunities and advancement. We will work to identify and tackle these problems and develop an evidence-based playbook.”

The center’s goals include bringing leaders from diverse political and corporate backgrounds together to discuss advancing gender and diversity in policy and business; engaging male and female allies and uniting people at the intersection of all ethnicities, races, and classes around a shared goal of gender and diversity equity; and developing leaders who understand that gender is a spectrum, not a binary construct.

Four alumni who are active in gender and equity leadership will speak at the launch event: Larissa Roesch, MBA 97, vice president and portfolio manager at Dodge & Cox; Nikita Mitchell, MBA 15, founder of Above the Bottom Line & senior manager of strategy & planning at Cisco; Kate Morris, MBA 14 lead, people & inclusion at Adobe; Brandon Doll, MBA 14, vice president, strategy and business development for the Oakland Raiders. (RSVP for the launch event here)

Tapping Haas faculty research expertise

McElhaney’s leadership team includes Prof. Laura Kray, who studies gender stereotyping and negotiations, and Prof. Laura Tyson, faculty director of the Institute for Business & Social Impact, who has written extensively about how gender equality worldwide is associated with better education and health, higher per capita income, faster and more inclusive growth, and greater international competitiveness.

While the center will support and explore new research, existing research by Haas faculty members runs deep.

McElhaney, who currently teaches a course called “The Business Case for Investing in Women,” conducted 2016 research with Genevieve Smith on the zero percent pay gap between men and women at the Gap, Inc. Meantime, research by Prof. Clayton Critcher detailed the multiple negative consequences of concealing one’s sexual orientation at work; Kray’s recent work outlined how fixed beliefs about gender roles preserve the status quo; and Prof. Jennifer Chatman detailed how political correctness in the workplace encourages men and women to be more creative by reducing uncertainty in relationships.

Moving the needle

McElhaney came up with the idea for the center four years ago, and raised funds with the encouragement of Dean Rich Lyons. “I started doing research on what other schools were doing, and what we could do to truly move the needle and be disruptive,” she said. “While other schools are focusing more on diversity or counting the heads, we are focused comprehensively on inclusion in our classrooms—through our cases, our choice of course speakers, our faculty teaching methodology, and our student culture.”

McElhaney’s successful campaign led to $1.6 million in donations, including a founding corporate gift from the Gap Foundation.

CGEL has no shortage of timely issues to focus on, from pay inequity to maternity leave to the continued low representation of women in leadership roles—not to mention the daily headlines revealing the latest sexual harassment accusations in the business world. Only 5.6 percent of CEOs at S&P 500 companies are women (and as of March 2017, only two were women of color). Women account for only 20 percent of board seats and 20 percent of C-suite positions in these companies.

“The majority of CEOs include gender equity among their Top 10 priorities, yet boardrooms and C-suites are not changing quickly enough,” Lyons said. “While the commitment to diversity and an inclusive work environment is there, too few have a handle on solutions. Our new center will work toward immediate change in these areas and pave the way for future generations.”

Jamie Breen, assistant dean of the MBA program for working professionals at Haas and a CGEL founding advisory council member, said she’d like to know why the drop-off rate for women on the path to upper leadership tracks increases significantly at the VP to SVP level.

“We used to think that getting women into very senior leadership positions was a pipeline issue—if we got women into the pipeline, it would take care of itself,” she said. “We now know that is not the case. We have systemic issues, and we need to understand the unwritten rules and practices that drive these outcomes and, more importantly, how to make them explicit and change them.”

To help make these changes, the center will invite corporate leaders for round table discussions, sponsor new research, work with teams of student consultants on real-world business challenges or case competitions, place faculty as conference speakers, and provide scholarships/fellowships.

Classified: The slam-dunk case for investing in women in business

“Classified” is an occasional series spotlighting some of the more powerful lessons being taught in classrooms around Haas.

Kellie McElhaney teaches her course, "The Business Case of Investing in Women.
Assoc. Adj. Prof. Kellie McElhaney teaching a session of her course, “The Business Case for Investing in Women”

Class discussions about sex trafficking, crash test dummies designed to match male—but not female—physiology, and the challenges a breast pump company faced in attracting venture capital were unsettling.

But it wasn’t until the conversation turned to the relatively mundane acts of sexism women encounter daily—such as unwanted advances at business dinners—that Federico Locatelli, MBA 18, spoke up.

“I didn’t really understand before what women have to deal with,” said Locatelli, one of the ten men in Kellie McElhaney’s class “The Business Case for Investing in Women.” “It’s been completely mind-blowing.”

For McElhaney, an associate adjunct professor who created the course four years ago, Locatelli’s discomfort isn’t a reason to stop the conversation, but rather a justification to blow it wide open.

“This is about pushing people out of their comfort zones so that they can then become leaders who can handle uncomfortable discussions later on,” McElhaney said.

The business case for investing in women
A student makes a point during a class session.

Building a case

The idea for an MBA course focused on gender equity first came to McElhaney about a decade ago while she was serving as director of the Center for Responsible Business at Haas. McElhaney had uncovered a correlation between Fortune 500 companies’ performance on a closely-watched sustainability index and the presence of women directors on its board. That data point alone suggested there was a business case—not just an ethical one—for gender diversity in the workplace.

Kellie McElhaney teaching her course, "The Business Case for Investing in Women"Over the next few years, as the cultural conversation around women at work gathered momentum, companies started asking McElhaney for more proof of a bottom-line payoff to hiring women.

Students, too, wanted to see data. “In a very constructive way, students would say, ‘Show me the proof that gender equity really matters to a company’s overall success.’”

So, McElhaney gathered statistics which suggested companies with greater numbers of women in leadership have higher share prices and better returns on equity and investment than companies with fewer women. She cites companies like Patagonia, which has publicly detailed how its on-site childcare nearly pays for itself.

When McElhaney started the course in 2013, she structured it almost entirely around the data. The class proved so popular that students awarded her an Earl F. Cheit Award for Excellence in Teaching. Next month, McElhaney is also launching the Center on Gender, Equity & Leadership to take her work to the next level.

“Kellie is a firecracker—passionate, smart, challenging, and funny,” says Jennifer Hoss, MBA 18. “She takes a very pragmatic approach of ‘nobody is asking for any favors.’ At the same time, this class is a great exercise in empathy.”

Hoss said she enjoyed seeing the diversity of opinions, even among women. “You realize that each person experiences gender issues in a different way. We have 30 different women and 30 different viewpoints on how wrong or not-wrong a situation is,” she said.

A student in Kellie McElhaney's course, "The Business Case for Investing in Women"

Exploring intersectionality

The course also delves into the added challenges that minority women encounter. McElhaney shared a breakdown of data showing that white women are making most of the workplace gains while minority groups either are flat-lining or losing ground.

Victoria Whittaker, MBA 18, who is African-American and Latina, said that when it comes to gender, race, and sexuality, “we tend to separate the issues.”

Shedding light on the intersectionality of an issue like gender helps raise awareness that there can many different experiences and perceptions that influence people’s world views, she said. “As business leaders and managers, it’s imperative that we start to recognize, think about, and appreciate all the different facets people bring when they walk into the workplace,” she said.

Are diversity and inclusion valued?

Many of McElhaney’s students, including Locatelli, are intent on using their newfound awareness to advocate for women. “Students—and this is also true for the companies I talk to—understand the data,” McElhaney said. “Now they want tools to create change.”

One assignment McElhaney gives students is to write formal assessments of a company’s track record on the hiring, retention, and promotion of women. The head of global HR at Airbnb was so impressed with a student presentation—which McElhaney sent unsolicited—that she asked the students to speak to company executives about it.

Students also discuss real-life workplace issues with guest speakers.

In October, a speaker admitted how shocked he was when a valued female executive at his company disclosed in her exit interview that she didn’t feel as though diversity and inclusion were valued. Looking to uncover insights like these sooner, he instituted “stay” interviews for current employees.

A student in Kellie McElhaney's course "The Business Case for Investing in Women"

Designing a personal leadership strategy

McElhaney also challenges students to consider their own experiences with gender discrimination or harassment, including how they’ve responded to past incidents and how they could have reacted differently. For a session that delved into how men impact gender issues, students were required to bring a male friend to observe the class.

Finally, students create a detailed personal leadership strategy.

“You’re at Haas to learn about business strategy,” McElhaney tells students. “You’re also here to learn leadership skills. So, how are you going to build gender awareness into your leadership style?”

Lydia Cole, EWMBA 18, came to the class looking for facts and figures to help her self-advocate in her career. She’s learned instead that proof of women’s value in the workplace won’t be as important as her ability to lead by example.

“My attitude before was cynical,” said Cole. “Kellie’s class has taught me how to be a better employee, a better manager, a better leader, and a better person.”

Berkeley Board Fellows program: training students to dive deep on boards

Joleen Ruffin

The Berkeley Community Fund’s Joleen Ruffin chats with board fellows Ryan King and Justin Zhang, both MBA 19s.

As a rising executive at education nonprofit 114th Partnership, Laura Hassner, EMBA 18, found a perfect opportunity to gain a deeper understanding of how boards work as a Berkeley Board Fellow.

“This program is a natural fit, as it provides a professional opportunity to support a board and a way to become a better board member myself,” said Hassner, who is working with the board of 10,000 Degrees, which helps students from low-income backgrounds to complete higher education. “I’ve already been able to apply my classroom learning in real time and I’m able to do it to help underrepresented kids succeed in college.”

Hassner, who is a president of her EMBA class, is one of 70 Berkeley graduate students who will serve on nonprofit boards of directors this fall as part of the program, which is operated by the Haas School’s Center for Social Sector Leadership. Founded in 2003, the program has placed a total of 875 fellows on nonprofit boards.

Laura Haasner
Laura Hassner, who is working with the board of 10,000 Degrees. All photos: Bruce Cook.

The fellows—which this year include 30 students from the full-time MBA program, six from the evening & weekend program, and five students from the executive MBA program—will volunteer on the boards of 35 Bay Area nonprofits.

Students were introduced to their boards at an Oct. 11 event, attended by Dean Rich Lyons. Organizations participating this year include The Bread Project, Freight & Salvage, Destiny Arts Center, Meals on Wheels of Alameda County, The Jewish Community Center of the East Bay, the East Bay College Fund, the Alameda Point Collaborative, Mission Neighborhood Centers, and Goodwill.

“We’re so excited to launch our 2017 group of fellows into the nonprofit community,” said Ben Mangan, executive director of the Center for Social Sector Leadership. “Collectively, our fellows have had such a positive impact on Bay Area boards through their work—and our nonprofit partners, in turn, have provided an invaluable educational resource to our students.”

Projects that create change

Board fellows receive training at Haas, attend board meetings, and spend about eight hours per month completing a project requested by the boards. This year, Ryan King and Justin Zhang, both MBA 19s, (in top photo with Joleen Ruffin) have been asked by the Berkeley Community Fund‘s (BCF) board to work on a project to evaluate the best practices of career development support services for first-generation college students at organizations similar to BCF’s—and to recommend a framework to establish a similar program.

“Justin and Ryan will find out about the resources available that we can tap into or identify what we can develop ourselves,” said Joleen Ruffin, executive director of the Berkeley Community Fund, which provides support and college scholarships to Berkeley public high school graduates.

This project builds on the 2016 student project that explored the effectiveness of relationships between community mentors and BCF’s scholars. These relationships often weakened over the course of four years, Ruffin said, and the board fellows, through interviews and working with the board, found out why—and identified ways to help the mentors feel more useful to the students and the students to feel more supported.  “We started to implement solutions right away which was fantastic,” Ruffin said.

Learning from their “fellow fellows”

Berkeley Board Fellows in Chou Hall
Berkeley Board Fellows gathered in Chou Hall.

For many nonprofits and students, the program offers the opportunity to gain a deeper understanding of board governance and build relationships that continue after the projects are done. It also opens the door for fellows, to serve on boards in the future.

“Every year most fellows tell us they are likely to join a nonprofit board within five years,” said Cathy Garza, program director with the Center for Social Sector Leadership. “It’s my goal and hope that the program continues to seed the world with knowledgeable board members who will make a measurable difference in the world through board service.”

Oseyi Ikuenobe, MBA 15 and a product manager at Square, is a former fellow who is now a full Berkeley Community Fund board member. Tyler Swain, MBA/MPH 18, also a former fellow, serves on the board of the Huckleberry Youth Programs.

One change to the program this year is the hiring of a new staff program fellow, whose role is to build community and provide mentoring to the group of fellows.

“We received feedback that the students wanted to learn more from their fellow fellows,” said Kate Chadwick, a program manager in the Center for Social Sector Leadership. “They wanted to know more about the projects that other students were working on and how their boards worked, because every nonprofit board experience is different.”

Mary Ellen Harty, MBA 18, will serve in that role. Harty completed the program last year and returned because she wanted to help improve it. “I felt there was opportunity for the fellows to connect more outside of the kick-off and finale session, and leverage each other’s strengths and experiences,” she said. Harty will host office hours and brown bag lunches, and has created a Slack channel and Facebook group for the fellows.

 

On the ground in Greece, MBA students test tech to help refugees

MarHub team
Intern Ramah Awad, Jerry Philip, EWMBA 19, and Sarrah Nomanbhoy, MBA 18, at the Ritsona Refugee camp on mainland Greece.

(Note: The first names of the refugees mentioned in this article have been changed to protect their privacy.)

In the sweltering June heat inside a refugee camp on the Greek mainland, Sarrah Nomanbhoy, MBA 18, listened closely as Khadija and her teenage son Tariq answered her questions about their family’s refugee odyssey.

Khadija’s family fled Syria’s civil war in 2015, heading for Turkey. A year later, they hired a smuggler who took them across channel to the Greek island of Chios in an overcrowded dinghy. They’d hoped to reach an uncle in Germany within three days by traveling through the Balkans, but found the borders had closed. Tariq searched his smartphone to figure out what to do next, but found that the information from humanitarian agencies too general, and that social media was filled with unverified rumors.

“They’ve now been waiting in Greece for over a year and a half,” Nomanbhoy said.

Nomanbhoy is not naïve enough to think that technology could remove the obstacles and traumas that this family and millions of other refugees on the move are facing. But she was there in the camp to find out whether she and her team—working on a startup called MarHub—could build a tool that could help refugees navigate the grueling asylum process.

“Lots of people have shown up in Greece with the ‘next app’ so there is a lot of skepticism,” says Nomanbhoy, a Silicon Valley native whose parents are both immigrants. “Refugees aren’t using these apps. We want to build something they will use.”

Over two weeks, three members of the MarHub team—which included Jerry Philip, EWMBA 19, and intern Ramah Awad—conducted interviews and tested their prototype with refugees in Athens, Ritsona, and in the Souda camp on the island of Chios.

Interviewing refugees

Souda camp
A view of the Souda refugee camp on the Greek island of Chios.

In interviews, the asylum seekers, many Syrian, but also Afghan, Pakistani, Nigerian and Moroccan, discussed the most challenging and uncertain aspects of the asylum process. Many shared that they were ill-prepared for the unexpectedly grueling asylum interviews. They were also largely unaware of their legal rights during the interviews, including the option to replace a translator or to review the interview transcript for inaccuracies. About 70% of asylum seekers receive negative decisions after this first set of interviews, and many are now in limbo pending the outcome of the appeal process, Nomanbhoy said.

Many face dire living conditions, violence within the camps, and racism from the local residents. “Witnessing the level of racism that asylum seekers are facing on a regular basis was really shocking,” says Nomanbhoy, recalling a few incidents where her team and asylum seekers they were interviewing were kicked out of local cafes on Chios.

Using iPads, the team showed refugees a prototype of the chatbot they developed, the first phase of MarHub’s crowdsourced information platform.

The chatbot allows a refugee to type questions through Facebook messenger and receive automated answers related to their asylum process based on where they are from, where they landed, and what their legal information needs are.

Creating a powerful tool

Marhub team
MarHub intern Ramah Awad (left), and Jerry Philip, EWMBA 19, (next to Awad) show MarHub’s prototype to NGO staff in the Ritsona refugee camp

It also enables them to connect to legal aid volunteers for additional assistance. As more refugees use the chatbot, the data collected will enable more accurate, timely responses, Nomanbhoy said. It is this crowdsourced information that will give the tool its power.

“Our goal is to help refugees feel informed and help them prepare for their asylum interviews,” said Philip, a product marketing manager at Cisco who grew up in Abu Dhabi and India and moved to the U.S. a decade ago. Philip says he and the rest of the team have all experienced the limbo of visa applications and understand the pain points and the tedious aspect of waiting.  “The hard part psychologically is not knowing how long the wait is going to be. Time moves very slowly when you’re waiting in a queue, but imagine not knowing whether you’ll be stuck for two months or two years.”

For Nomanbhoy, MarHub is a passion project that evolved from her interest in international migration. Growing up in the Bay Area, she saw immigrants driving entrepreneurship and making lasting contributions to the economy.

Before arriving at Haas, she launched a seed accelerator for startups in Sri Lanka and worked on a social enterprise to help migrant workers in Thailand send money home. Returning for an MBA was about getting the tools to start a company that could help change the way international migration is managed.

MarHub evolved from last year’s prestigious Hult Prize Challenge on Refugees. Nomanbhoy heard about the $1 million contest on a Friday night in November. By Monday she had met her co-founders—Philip; Peter Wasserman, MBA/MPH 18; and Srinivas Vaidyanathan, EWMBA 18.  They put together their pitch within a week. After edging out 50,000 entrants, the team made it to the last round of the competition’s regional finals. Encouragement from judges, support from their advisors, Assoc. Adj. Prof. Thomas Lee and UC Berkeley Law Prof. Katerina Linos, along with a $5,000 Dean’s Seed Fund grant and the $5,000 Hansoo Lee Fellowship, helped the foursome launch MarHub. Nomanbhoy also won a $12,500 Jack Larson Scholarship, enabling her to work full-time on MarHub over the summer.

The chatbot’s usefulness expands

After seeing MarHub’s prototype, many of the refugees asked the team how to sign up for the service. “The work feels really urgent now,” said Nomanbhoy.

The team expects to roll out a pilot service in partnership with Greece-based organization RefuComm in the fall and then go on to raise seed funding. The Haas students on the team have chosen courses this year—including Descriptive & Predictive Data Mining, Startup Sales, and Lean Product Management—to align with the needs of their startup, which they hope to work on full-time after graduation.

While MarHub is now limited to the public Facebook site and the chatbot, the team is building an interactive mobile platform that will enable refugees to view, evaluate, and comment on information from humanitarian agencies, volunteers on the ground, and other asylum seekers.

Nomanbhoy said she sees the company moving from helping people navigate the interview appointment and asylum system to a long-term goal of using data to help improve migration management.

Lee, who teaches Product Design at Berkeley-Haas, praised the team for taking what they learned in class and applying it in Greece. “I think there’s a stereotype about the Bay Area that we’re solving first-world problems for the millennials, but the real issue is the next billion users, and, in some sense, that’s what Sarrah’s team is focused on,” he said. “They really got their hands dirty and went to these refugee camps to get a sense of the real problems for refugees. They’re applying lessons from class to understand those problems.”

— Krysten Crawford contributed to this story.

Berkeley-Haas Names First Winner of New Investment for Impact Prize

Job applicants will accept lower wages in order to work for a socially responsible employer, according to research by the winner of the newly launched Investment for Impact Research Prize.

Berkeley-Haas created the prize last year to encourage new academic research on the social and environmental effects of capital investment.

The competition drew a total of 48 papers. A team of 11 judges from the academic, investment, and nonprofit world selected the winners.

Vanessa Burbano
Vanessa Burbano

The first-prize winner, Vanessa Burbano, an assistant professor of management at Columbia Business School, won for her paper, Social Responsibility Messages and Worker Wage Requirements: Field Experimental Evidence from Online Labor Marketplaces.

“This paper is important because it speaks to a transition we’re seeing in the labor market,” said Adair Morse, the award’s faculty co-director (with Assoc. Prof. Ayako Yasuda of the UC Davis Graduate School of Management) and an associate professor of finance at Berkeley-Haas. “It shows that the social–plus-economic agenda, as opposed to a purely-profit agenda, can be a powerful way to understand individuals’ decision-making.”

The winning paper presents the results of two experiments in which workers applied for short-term jobs online and, in some cases, were given information about the employer’s charitable giving. In the first experiment, this information prompted applicants to accept slightly lower payments on average, with the highest performing workers responding most strongly.

In the second experiment, prospective workers submitted 44% lower bids for payment after getting information about the employer’s philanthropy. Burbano described the study as one of the first to show that social responsibility messages prompt workers to accept lower compensation. In the case of corporate social responsibility and wages, it’s hard to demonstrate cause and effect, she noted. “But, by using online labor markets, we have a clean causal story.”

Using capital for public good

The new award was created when Haas alumnus Allan Spivack, MBA 80, and CEO of RGI Home, offered last year to help the school finance a social impact research prize.

The Center for Responsible Business at Berkeley-Haas focused the prize on research into ways that capital can be used for public good, including social entrepreneurship and sustainable capital investment. The award complements Haas’s Moskowitz Prize, which concentrates on social responsibility at traditional investment funds.

“We award these prizes because Berkeley has always been a thought-leader in this space,” Morse said. “Thus, we at Berkeley-Haas want to continue to encourage rigorous scientific studies of how social agendas matter in broader contexts of economics, finance, law, management, or other social sciences.”

Two teams were awarded second prize, including Alexander Dyck of the University of Toronto, Karl Lins of the University of Utah; Lukas Roth of the University of Alberta; and Hannes Wagner of Italy’s Bocconi University, who found that institutional investors from countries with strong social responsibility values significantly influence the social and environmental performance of the companies they own. Caroline Flammer of Boston University, Bryan Hong of Ontario’s Western University; and Dylan Minor of Northwestern University showed that linking executive pay to a company’s social and environmental performance creates benefits ranging from lower carbon emissions to greater stock market value.

 

Berkeley-Haas MBA Students Work to Unite Youth Cyclists

Across the country, scores of youth cycling organizations are working separately on the same big goal: to get more kids safely riding bikes. How much more effective could they be if they had a way to pool resources and work together?

Berkeley-Haas MBA students
MBA students from the Social Sector Solutions class gathered with their client on last night of class.

That was the vision that the Youth Cycling Alliance (YCA) brought to Berkeley MBA students in the Social Sector Solutions (S3) course in spring 2017. It was a daunting task that would involve compiling information on the country’s 12.5 million young riders, creating a national database, and developing common best practices to unite the disparate groups.

Peter Severson, MBA 18
Peter Severson, MBA 18, discusses the youth cycling project findings.

“I was pushed out of my comfort zone,” said Peter Severson, MBA 18, who served as team lead on the project. “Too often leadership opportunities are in title only. But in this role, I was pushed to design and execute a work plan for our team, partner with our nonprofit client, and resolve conflicts as they arose throughout the semester.”

The S3 course, co-taught by Adj. Prof. Nora Silver, faculty director of the Center for Social Sector Leadership at Berkeley-Haas, and Adjunct Prof. Paul Jansen, a former director at McKinsey & Co., is designed to solve problems for nonprofit clients. It brings together diverse teams of students–typically three MBAs, one student from another graduate program, and an undergraduate.

Past clients have included the Golden Gate National Recreation Area, the Berkeley Food Institute, and the Cool Climate Network.

This year’s project emerged after 11 youth cycling organizations from across the country met in Las Vegas last September, discussing how they could work more closely and effectively together to get more kids on bikes. While cycling is the most popular outdoor recreational activity in the US, only 24 percent of kids aged 6 to 17 participate, according to a 2016 Outdoor Industry Association report.

Out of the Las Vega meeting, the groups formed the Youth Cycling Alliance (YCA), with an aim to get more kids on bikes.

Customizing the model

The S3 project called for market analysis and interviews with cycling organizations and chapters. The first phase was research-heavy, involving a lot of internet searching, report reading, and deep-dive interviews with the 11 national youth cycling organizations, about everything from their struggles to meet program demands and provide experienced youth coaches to how to track success metrics of their programs for potential funders.

The second phase was forward-looking, as the team mapped recommendations for the group’s new network. Models for nonprofit networks are new and evolving. Nahry Tak, MBA 18, said she researched what nonprofits in the conservation space were doing, and also interviewed and read existing research from both Silver and Haas Senior Fellow Jane Wei-Skillern. “You don’t want to copy others,” Tak said. “You want to learn from the best practices of others and then customize your model and shape it.”

The students concluded that YCA needed to align on a shared vision, establish a culture of trust, and form immediate partnerships. They recommended six “quick wins” to immediately get more involvement in youth cycling.

For Severson, the project was socially and professionally worthwhile. “Through our successes and failures, I forged skills that I will employ throughout my career in whichever direction it takes me,” he said.

In addition to Severson and Tak, the team included Kyle Koning, and Federico Picca, both MBA 18, and Amy Traver, MBA/MPH 18.

Students Focus on Better Farming Methods in Patagonia Case Competition

UC Berkeley’s Team Greenscape members: Adrian Lu, PhD 18, Ali Ticker, MBA 18; Michael Fleischmann, MPP 18; Olga Ballard, MBA 18; and Ryan Peterson, MDP (Master of Development Practice) 18; competed in the case competition. (All photos by Manali Anne Sibthorpe)

Ali Ticker and Olga Ballard, both MBA 18, took the stage at the Patagonia Case Competition last Friday, pitching the judges a land-financing idea for the outdoor apparel company’s sustainable food division.

Their target was Patagonia Provisions, which sells responsibly sourced food and drink, such as ale made from a grain planted to reduce erosion and jerky made from bison whose grazing is helping to restore the prairie. Their idea was for the company to create or invest in a real estate investment trust that would encourage farmers to shift from conventional to regenerative and organic agriculture (ROA) methods that bring soil back to health after years of heavy pesticide and fertilizer use.

“It’s a solution that will scale,” said Ticker, who shared the stage with fellow Team Greenscape members Ballard, Adrian Lu, PhD 18, Ryan Peterson, MDP (Master of Development Practice) 18, and Michael Fleischmann, MPP 18. The group was among 10 finalist graduate school teams—culled from a total of more than 70 teams—selected to pitch last week at Berkeley-Haas.

Patagonia leaders joined forces with Berkeley-Haas last year on the case competition, which grew out of a conversation between the company and Robert Strand, executive director of the Center for Responsible Business at Berkeley-Haas.

“The goal is to take our most intractable environmental problems and bring them to the best young minds in the world,” said Patagonia CEO Rose Marcario, who also served as an event judge. “We have real business problems and we use this work and we put it into action.”

“Patagonia demonstrates such leadership by putting its greatest sustainability challenges out there in the open and humbly asking for help,” Strand said. “The sustainability challenges we face are simply too big for any single company to effectively address alone. It takes confidence without attitude to acknowledge this and open oneself up as Patagonia has.”

Ali Ticker and Michael Fleischmann of Team Greenscape head to the case competition.

Last year’s competition focused on finding an alternative to widely used but potentially toxic poly-fluorinated chemicals (PFCs) which apparel makers add to their water repellant gear and clothing.

The winning University of Michigan team pitched an entirely plant-based nontoxic solution composed of materials from soy beans, potatoes, rice and corn, called the ‘SoyShield.’ Patagonia connected the team to the company’s material innovation engineers and Beyond Surface Technologies, one of Patagonia’s venture portfolio companies, to work on developing SoyShield. Phil Graves, managing director of Tin Shed Ventures, Patagonia’s venture capital arm, said the goal is to understand whether SoyShield will be commercially and technically viable.

This year’s case is a nod to Patagonia founder Yvon Chouinard’s focus on the critical role that food will play in solving the world’s environmental crisis. In the 25-minute documentary “Unbroken Ground,” the company argues that the vast majority of our food is produced using methods that reduce biodiversity, decimate soil, and contribute to climate change.

Competing teams in this year’s agriculture case competition pitched a variety of ideas, from scholarships for the children of farming families to mobile apps for farm expense tracking. Aside from UC Berkeley, competing teams included Yale, Cornell, Harvard, Babson, University of Virginia, MIT, University of Pennsylvania, Columbia, and the University of Michigan.

Patagonia CEO Rose Marcario (third from left) with Team Greenscape

The 2017 winning teams included:

Yale’s Plant Power Team (first place): Plant Power offered regenerative recommendations to optimize soil quality management from Oregon to Iowa. The plan included health metrics and benchmarks, and addressed both cost and cultural barriers to adopting these practices. The team also recommended forming a network of ambassadors to evangelize regenerative practices.

UPenn’s (Re)Generation Y Team (second place): The team proposed Field ExChange, a mobile learning exchange that would provide a checklist to guide farmers through the steps to shift to regenerative farming. A financial and environmental impact calculator would help farmers develop business plans with financial projections; and a social network would connect key partners and promote information sharing.

MIT’s FARM Fair Agriculture and Resource Management Team (third place): Team FARM recommended a scholars-and-research fellows program for small family farmers and their communities. Other ideas included purchasing farm equipment to be shared in pilot community programs, and growing the company’s network through a new mail delivery service (like Blue Apron) and dinner parties.

The top three teams won a trip to Patagonia headquarters in Ventura, Calif., to present their proposals and—as a bonus—to do some surfing with Patagonia employees.

Three Berkeley-Haas Social Impact Startups Take Top Honors at LAUNCH

Three Berkeley-Haas teams focused on social impact took top honors at the recent finals of LAUNCH—University of California, Berkeley’s, Startup Accelerator and competition.

Taking advantage of the program’s new social track, the teams, LiftEd, Butterfly Medical, and Dost, participated in LAUNCH’s intensive three-month accelerator before going on to win the grand prize, second place, and second place (social category) awards, respectively. The third-place winner, Players’ Lounge, has Berkeley-Haas connections.

 

Now in its 18th year, the LAUNCH competition attracted close to 150 entries that were narrowed down to 19 teams, all of which participated in Demo Day on April 28.

The event, organized by Berkeley MBA students and sponsored by the Berkeley-Haas Entrepreneurship Program, included a startup showcase expo, keynote speeches from high-profile LAUNCH alumni, and fast-paced final pitches in front of judges, VCs, and an audience of more than 300 people. A total of five winners took home a total of $85,000 in cash and prizes.

The top three winners joined three other social impact startups in a new LAUNCH accelerator specially designed for social enterprises, which includes the Social Lean LaunchPad course taught by Jorge Calderon, a lecturer in the Haas Entrepreneurship Group.

Last week’s LAUNCH Demo Day included keynotes from previous competition winners: Brett Wilson, cofounder and CEO of TubeMogul, and MBA 07, and Nick Sturiale, Managing Partner at Ignition Partners, founding CEO of Timbre Technology, and MBA00.

The Winners

Grand Prize ($30,000 plus $15,000 in legal services from WilmerHale): LiftEd, which makes an iPad application that helps education professionals accurately measure and reliably report the progress of special education students. There are nearly seven million pre-K to grade 12 students in the U.S. with legally diagnosed disabilities. LiftED enables educators to personalize student learning goals, analyze learning trends to make real-time adjustment to teaching methods, and share progress with school districts and parents. The team includes co-founder and CEO Andrew Hill and Amy Chou, both MBA 16. LiftEd also took first place in the “Information Technology for Society” category and second place in the “Campus & Community Impact” category on grand prize pitch day at the 2016 Big Ideas competition earlier this month.

Second Prize ($15,000): Butterfly Medical, which has developed an implantable device for the treatment of Benign Prostatic Hyperplasia (BPH), the non-cancerous enlargement of the prostate, which the company says affects 50 percent of men over age 60. The team includes CEO Idan Geva, MBA 09.

Second Prize (Social) ($15,000): Dost, which built a mobile phone platform that helps break the cycle of illiteracy by delivering early education content and activities to low-income moms. Dost was also a finalist in the 2016 Global Social Venture Competition. The team  (in photo, left) includes Founder and CEO Sneha Sheth, MBA 16; Sindhuja Jeyabal, MIMS 16, I School; and Devanshi Unadkat, PhD candidate, UC Berkeley Graduate School of Education. Dost was also a category winner at the 2016 Big Ideas competition. (“Mobiles for Reading” category).

Audience Choice ($5,000): Innovein, which provides a prosthetic valve for the veins that helps cure venous leg ulcers, a condition that affects roughly four million people in the United States.

Third Prize (six months of free work space at WeWork): Players’ Lounge, a social video gaming startup that provides gamers with a platform to play their favorite sports games for cash and prizes. The team includes co-founder and CFO Mark Murphy, MBA 17.

 

Classified: Measuring the Effectiveness of Nonprofit Programs

By Charlie Cooper

In our ongoing series of “Classified” articles we spotlight some of the powerful lessons being taught in classrooms around Haas.

MBA students enrolled in the Social Impact Metrics course at Haas spent the fall semester wrestling with a challenge that’s puzzled management experts for decades: How do you go about measuring the effectiveness of a nonprofit program?

In an era of algorithms and analytics, where almost anything can be measured, there’s a growing push for metrics that will help donors know whether programs are effective—and whether they’re getting their money’s worth.

To get a better idea of what works and what doesn’t, the Center for Social Sector Leadership at Haas formed a multi-year partnership with Amgen. The partnership centers on an interdisciplinary, graduate-level Social Impact Metrics course on measuring outcomes of cancer patient advocacy education and support programs.

“I want our students to be savvy about the claims that organizations make, and to be able to separate what is really working within the nonprofit sector from activities that may feel good but aren’t having much real impact,” said Lecturer Colin Boyle, (pictured), who teaches the course and also serves as deputy director of UCSF Global Health Sciences.

Amgen awarded $35,000 each to four cancer patient advocacy groups participating in the project—Bladder Cancer Advocacy Network, Cancer Support Community, Chris4Life Colon Cancer Foundation and Critical Mass.

In the class, 28 students broke into four teams that worked with the nonprofits to study the specific metrics challenges they faced. The goal was to come up with a plan of action by the end of the semester, when the class presented recommendations to their clients: four cancer patient advocacy education and support programs.

During the semester, the students evaluated the methodologies that the nonprofits might use to vet a program’s effectiveness. They also worked to identify signs that a program was succeeding or veering off track.

Many of the nonprofits were offering the same services—peer counseling, help lines, and webinars to educate people. But as Boyle noted, they weren’t learning from each other about how to do this more effectively.  The course presented a new opportunity to foster greater sharing of best practices within the nonprofit community, he said.

“If everyone has a different help line, then let’s learn from each other so that we can do it as successfully as we can,” Boyle said.

Brigid Warmerdam, MBA 16, worked with the Cancer Support Community, a non-profit that operates a cancer support helpline focused on improving the livelihood of cancer patients and their families.

Her group was charged with making recommendations on how to best measure the helpline’s impact. At the end of the course, they recommended that the non-profit differentiate callers based on their reason for the call— for information, logistics, or emotional support —and to ask callers if their needs were met. The nonprofit could then use aggregate data to inform their program changes.

Warmerdam, who is a vice president at Wells Fargo, took the class hoping to learn more about measuring shifts in attitudes and behaviors, so she could apply this to both her job and her activist work. (One of her initiatives as a diversity leader was to launch a company-wide outreach program to engage LGBT team members with LGBT “allies” to promote diversity at the company).

“Measuring impact is a big challenge and the skills required are not obvious,” she says. “You need be a good listener, get comfortable with ambiguity, and work as a team. To me, this is the solution to doing the best job for your client.”

Chelsea Samuel, a master’s candidate at the Goldman School of Public Policy, who worked with Warmerdam on the project, said the course allowed them to apply principles from class in a real world setting, “with real constraints on their personnel and resources.”

“It was also fascinating to see how they intended to use the metrics,” she said.

Students who worked with the Bladder Cancer Advocacy Network came up with an entirely new approach for the non-profit, centered on the impact of bladder cancer treatments on sexuality.

The data the students gathered is also valuable for grant-pitching purposes, said Stephanie Chisolm, director of education and research for the Bethesda, Md organization.

“When we go to our partners in the pharmaceutical industry, they want a good estimate of whether what we’re doing will have an impact, and to know that we’re going to be able to report the results,” Chisolm said. “Ratcheting up our metrics is going be a huge benefit.”

Scott Heimlich, vice president of the Amgen Foundation, said many non-profits lack the resources to collect this sort of data.

“Our hope is that this work will go toward helping all patient advocacy organizations measure their effectiveness, and to help the larger nonprofit sector do what it does better,” he said.

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