Honing your value proposition: SSTI Conference preview

This week we continue our four-part series focused on navigating innovation priorities in a variety of settings. Part 2 focuses on how to create and hone an effective value proposition for your organizations given different audiences, funding sources, public support and the needs of clients. SSTI spoke with Faith Knutsen, director of Social Entrepreneurship and Innovation, Ohio University Voinovich School of Leadership and Public Affairs; and Steve Glynn, director of Innovation, The Water Council.

The series features interviews with experts in the field, each of whom will also be presenting at our annual conference, where these topics will be explored in greater depth. Both presenters featured in this week’s Q&A said their session will be fun, personally and professionally engaging, and highly relevant to each participant’s own sector.  Click here for more information on the conference.

Q:  What do you believe is the role of an effective value proposition for a nonprofit organization?

A: Faith Knutsen - It doesn’t matter whether an enterprise is ‘non-profit’ (as in, the revenue/funding received doesn’t go into individual pockets but rather into the institution) or for-profit, it is essential that any viable enterprise understand their value for their beneficiaries (or clients), in accordance with what the latter need.  Whether one’s value is great widgets for eager widget-purchasers, community entertainment to summer theater attendees, social services to the underserved, or any wide range of other values, the value-providers must understand and match the needs of the recipients.  This is the key to a healthy enterprise, whether it’s a startup or a decades-old community staple.  Agile pivoting from an outdated value proposition is a vital role of any governing board and executive staff.

Steve Glynn - The value proposition for any organization becomes the focus of the “why” for what an organization does. It guides the organization forward to the point of prompting valuable, continuous conversations with stakeholders, employees, and customers to ensure the value proposition remains current and relevant.

Q: What are some of the mistakes you see in value propositions from organizations in the field?

A: Steve Glynn – For early stage entrepreneurs, I see a lot of assumptions based on their passion for the cause with little to no validations from actual users/customers.

Faith Knutsen - Just as in the for-profit realm, non-profit founders often mistakenly believe in “build it and they will come.” Similarly, leaders of well-established enterprises often view their original value proposition as appropriate for the current beneficiary — even if the latter weren’t born when the institution was created, and even if the needs of the beneficiary populace has shifted over that timeframe.

Q: What do you think is the most important element to remember when creating a value proposition?

A: Faith Knutsen – TEST the proposed value proposition with the anticipated beneficiaries, and then “pivot or persevere” in accordance with the feedback.  The key principles of the ‘Lean Launch’ framework for for-profit sector are very applicable to non-profits: test the market, and adjust the value accordingly.