199. Bringing innovation to a not-for-profit setting
Mar 21, 2024
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Discover how the American Red Cross is embracing technology and data to enhance their missions, including disaster relief and blood services. Explore the challenges of implementing innovation in a non-profit setting and learn about the diverse services offered by Red Cross entities worldwide. Dive into the use of advanced analytics and AI in disaster response services and explore game-changing innovation ideas for not-for-profit organizations like the American Red Cross.
Innovation in not-for-profit organizations should focus on returns on mission over returns to shareholders.
Incorporating diverse stakeholder viewpoints leads to a holistic problem-solving approach and optimal solutions.
Deep dives
Importance of 360-degree Perspectives in Problem Solving
In problem-solving efforts, incorporating viewpoints from various stakeholders, including senior leadership and end users, provides a comprehensive understanding of the issue. This 360-degree view enhances insights into problem nuances and optimal solutions, as highlighted in the discussions with the American Red Cross's Chief Innovation Officer.
Innovation Focus on Technology and Data in Mission Delivery
The American Red Cross, a 142-year-old organization, has shifted its focus towards leveraging technology and data to enhance the effectiveness of its humanitarian mission. Through initiatives like using AI in blood services and other sectors, the institution aims to drive large-scale transformations and improve mission delivery.
Problem-Centric Approach to Technology Integration
The organization's approach to technology integration prioritizes defining problems before selecting suitable technologies. By deeply understanding the problems at hand, the American Red Cross aligns technology solutions to address specific mission challenges effectively, underscoring the importance of problem-centric innovation.
Impact-Driven Project Selection and Resource Allocation
The American Red Cross emphasizes impact as a crucial criterion for selecting and prioritizing innovation projects. Projects are chosen based on their potential to deliver significant value, whether tangible financial returns or qualitative improvements in fulfilling the organization's mission. This impact-focused strategy guides resource allocation and decision-making processes.
Innovation in a not-for-profit context involves measuring success in terms of returns on mission rather than returns to shareholders. In this episode, McKinsey innovation expert Erik Roth talks with Sajit Joseph, the chief innovation officer of the American Red Cross, about how the 142-year-old institution began and continues to carry out its innovation journey.