VA Insights | Platform Transformation of Philanthropic Foundations II
Today, we will discuss the factors to consider during a foundation’s platform transformation
- Clarify the three main necessities
There are three essential conditions to become a platform foundation.
“Paving the way” means establishing a solid foundation for platformization. This involves researching issues, gathering and sharing fundamental data, and fostering industry talents.
“Setting the stage” means to strengthen the platform’s resources and consolidate its foundation, to prepare for issue development. The foundation must coordinate industry resources and connect various participants.
“Digging deep moat” involves the organization utilizing its expertise to construct core competitive barriers for the platform.
2. Plan the strategic layout
Planning a strategic layout for foundation platform transformation typically brings about a strategic transformation of the foundation. Incorporating ecological construction and platform development into the future strategy is a key consideration for foundations.
We have observed three different transformation paths in the industry:
1) platform foundations oriented towards the entire public welfare industry,
2) platform-type foundations that carry out ecological construction focused on certain issues.
3) Platform-type programs operated by foundations
At the same time, how to design the strategic transformation path, what kind of program matrix to form, and how to measure the impact are also issues that foundations need to focus on.
3. Restructure of the organization
The foundation needs to revamp its internal organizational structure. The focus of the work has shifted from executing and funding to constructing the industry ecosystem with initiatives such as creating more well-known public welfare projects, incubating and nurturing exceptional social organizations, and promoting efficient public welfare project management. At the same time, foundations should conduct internal capacity building or recruit professional talents to meet the foundation’s needs after the transition.
4. Strengthen Partner Management
The foundation requires a well-designed professional management system and standardized processes to operate efficiently and effectively. The four essential components are
Strategic Consensus:
Achieve a common strategic goal to drive collaboration among partners in constructing the industry ecosystem.
Elimination of Winners and Losers:
Establish entry requirements and partnership regulations, conduct frequent evaluations of partners, and implement measures to eliminate weak performers to foster the growth of a healthy ecosystem.
Foster Collaboration.
The Foundation must pair partners based on their respective developmental characteristics and needs and proactively encourage and facilitate their collaboration.
Effectiveness management:
The foundation will regularly and promptly track and evaluate projects and partners, with a particular focus on data management.