Enterprise Management Consulting
Posted on: September 17th, 2014 | by: Ashley Kloczynski | no comments
Social Enterprise Business Models: Operations Efficiency Model
The first social enterprise business model covered by Professor Bentley is the Operations Efficiency model. In a typical operations efficiency model, a company takes advantage of certain efficiencies that may be uncovered by addressing social impacts. It is quite common to see this in energy costs and labor efficiencies. This type of model provides companies the opportunity to create positive environmental and social impacts.
For example, Wash Cycle Laundry, a company that utilizes the operations efficiency model, is a sustainable alternative to the traditional dry cleaning service. Unlike a traditional laundry service that uses trucks for delivery, Wash Cycle Laundry opts for delivery by bicycle. This alternative is considerably inexpensive compared to traditional distribution. Laundry is cleaned in energy efficient washing machines. The high energy efficient washing machines provide a great deal of environmental impact.
Wash Cycle Laundry also provides a great deal of social impact through their services by employing hard to employ populations who are ready to get back into the workforce. By providing employment for people transitioning out of other hard to employ situations-sex offenders, welfare recipients, etc. – make a company like Wash Cycle Laundry more efficient operationally. New efficiencies within the company are created by these different employment tactics.
A Great Deal of Impact
An operations efficiency model provides the opportunity for companies to create positive environmental and social impacts. Both the environmental and social impacts allow for a company to operate more efficiently.
In the next part of the September series, Professor Bentley will be discussing the Value Rub model, which also creates significant positive impacts.
Posted on: September 10th, 2014 | by: Ashley Kloczynski | no comments
Social Enterprise Business Models: An Introduction
Social enterprises provide a market-based solution that addresses a societal or environmental problem. In a typical social enterprise business model, the organization considers all of its stakeholders and looks to create value for multiple groups. Certainly, as a for-profit venture, social enterprises aims to generate returns for investors. However, in addition to money-making goals, they place high value on the interests of other stakeholders. Social enterprises integrate stakeholder value into the core business model, offering unique benefits to its employees, customers, and the surrounding community. Social enterprise business models provide compelling opportunities to entrepreneurs who want to do good.
Decreases Dependency on Donor Funds
If social enterprises successfully serve their customers and manage related costs, the for-profit model leads to financial sustainability. For organizations that are exclusively for-profit, this revenue generation eliminates dependence on donations and grants from a shrinking pool of nonprofit funding. For organizations that implement a hybrid model, integrating some for-profit activities within a larger nonprofit, it decreases dependence on these funding sources and provides the nonprofit with unrestricted operating cash. In both cases, the for-profit activities contribute capital that can be used for business expansion or other growth initiatives.
Increases Impact Potential
Beyond financial sustainability, a well-designed social enterprise business model can dramatically increase an organization’s overall impact. For one, the for-profit model provides flexibility and freedom for the organization to try new ideas that may better-serve its stakeholders. The steady income stream allows the organization to focus on its core mission and objectives, rather than fundraising. Finally, if the organization provides a market-based solution for a previously unsolvable problem, it offers an innovative model for others who wish to solve similar issues.
Common Social Enterprise Business Models
In this September series, Professor Bentley will cover three common social enterprise models, explain how they operate and provide an example of each. He terms the three models as value rub, operational efficiency, and mission market.
Posted on: July 29th, 2014 | by: Ashley Kloczynski | no comments
Fox Management Consulting is now accepting consulting clients for our fall 2014 programs. If you would like a team of dedicated, creative MBA students from the Fox School of Business to research a business challenge or question for your organization, please contact us at FoxMC@temple.edu or complete the form on the Contact Us page.
Posted on: October 21st, 2013 | by: Debora Charmelus | no comments
On October 17th, Management Consulting (Fox-MC) and Deloitte Consulting continued their long-lasting partnership with a session at Deloitte’s Philadelphia offices. For the past 7 years, consultants at Deloitte have helped the Fox-MC MBA student associates perfect their research analyses and presentations. During the event, Fox-MC teams present their findings and strategies to a group of seasoned executives led by Deloitte Senior Managers or Partners who then provides vital feedback on both content and form. The Deloitte consultants run the associates through the same rigorous review that they apply to their own teams.
The Deloitte-Fox School alliance began when Rich Cohen, a Principal at Deloitte ], visited Fox-MC to listen to the students present their research findings. He and TL Hill, the Managing Director of Fox-MC, came up with the idea of Deloitte hosting reviews for the teams – an idea that has been evolving ever since, from three or four teams once a year to five to nine teams twice per year.
The Deloitte review is hugely important for the Fox-MC students who receive expert advice from seasoned professionals and often find themselves challenged and empowered to deepen their research and sharpen their insights. Perhaps surprisingly, the review is also popular among Deloitte consultants, many of whom return year after year, even as others sign up. The benefits for the Deloitte consultants genuinely enjoy helping MBA students tackle real problems for client firms: What the consultants have to say is valuable and the students listen!
Over the years, Deloitte and Fox-MC have adjusted the sessions to make the experience more collaborative, improving the experience for both the students and consultants. Deloitte has also been able to provide valuable suggestions for improving the Fox School’s MBA program, while hiring several graduates. Looking ahead, Cohen sees the members of Deloitte becoming more involved with both Fox-MC and the Fox MBA as they continue to flourish.
Posted on: September 18th, 2013 | by: Debora Charmelus | no comments
“Students realize the critical role social entrepreneurship plays in addressing the world’s problems. They recognize the importance of giving back, and they want to contribute…”- Anne Bayless, Associate Director, Fox Board Fellows
Philadelphia is a city that cares. Many of its residents demonstrate their commitment to their neighbors and communities by donating time and money to local non-profit organizations. The Fox School of Business supports this type of social responsibility and volunteerism through its Fox Board Fellows program, which is a collaboration with Fox Net Impact. Graduate students who enroll in the program, the FBF fellows, take a course on non-profit management, serve as non-voting board members with local non-profits, complete a project for their sponsoring non-profit, and in exchange, receive one-on-one mentoring from an experienced member of the non-profit’s board. Through this experiential learning opportunity, students use business skills to provide fresh insight to non-profit leaders, while learning what it takes to lead an effective non-profit organization and serve as a productive member of the board. Both the students and the boards also expand their networks. Anne Bayless, Associate Director for Fox Board Fellows, explains that the program is designed to offer a meaningful experience for both the fellows who enroll in the program and the non-profit organizations that support them. “The Fox Board Fellows program is great for students who enjoyed volunteering in the past but now have less time for their passion” says Farrah Al-Mansoor, Fox ’14 MBA Candidate and Vice President of Fox Net Impact.
When Fox Board Fellows initially launched in 2009, 6 students were placed on the boards of various non-profit organizations such as Girls Inc., Make a Wish Foundation, Operation Understanding and Fair Food. For 2013-2014, there are 23 students serving 20 different organizations across the city in various ways!
Each non-profit crafts a distinct project for its Fox Board Fellow. For example, one students helped Habitat for Humanity develop a social media presence, while another helped Habitat refine its Re-Store business model. A Fellow placed with Philadelphia VIP helped create an analysis of their case load that became one of the foundations of a new strategic plan.
The collaboration between Fox Board Fellows and Net Impact works well for both programs. Fox Board Fellows maintains relationships with local non-profit organizations, while Net Impact recruits new Fellows each academic year. Together, Fox Board Fellows and Net Impact dream up new ways to serve both students and the non-profit community.
Although Fox Board Fellows has come a long way, there are refinements in the works. Bayless wants to create an Alumni Advisory Board for the program, so that alumni who have completed the program will guide the students currently in the program as they navigate the complexities of board governance, a volunteer project, the rest of their classwork, and of course their work and family lives. Further, in the coming year, Bayless hopes to find a corporate sponsor for the program, which will support additional networking opportunities, speakers, and other events that benefit the fellows and their non-profit sponsors.
Beyond Fox Board Fellows, Bayless hopes that one day the MBA program at Temple University’s Fox School of Business will become the quintessential program for those interested in non-profit management. The combination of the Fox Board Fellow experience, other social entrepreneurship classes, Fox Management Consulting, and participation in Net Impact will give students the necessary skills and reality-driven experience to succeed in a career in non-profit management.
Posted on: August 21st, 2013 | by: Debora Charmelus | no comments
You might be surprised to hear that Alexander Osterwalder, entrepreneur and noted business scholar, believes that many firms focus too much attention on selling their products and services. Instead, he encourages them to take a more holistic view, shifting focus from building a better product to building a better business model. Firms that do this typically out compete firms that simply offer a “better product,” and ultimately, they create lasting value for themselves and their customers.
In this interview with Fox School of Business faculty member Dr. Andrew Maxwell, Osterwalder discusses his method for building effective business models. To Osterwalder, the right business model can be the difference between success and failure, citing Nestle’s Nespresso as an example. When Nestle launched the Nespresso brand, it nearly failed, until the firm adjusted the business model to suit market realities. With changes in place, Nespresso was a success.
Osterwalder examined alternate business models of hundreds of large and medium companies to develop this framework. Its biggest benefit, Osterwalder notes, is not establishing an optimum business model, but exploring alternate business models that highlight the different outcomes of the firm’s choice. In this way, the business model canvas helps organizations build consensus on the business models that best fit their firms.
Fox Management Consulting (Fox-MC) emphasizes Osterwalder’s approach within its consulting and MBA capstone course. Through Fox-MC, MBA student teams conduct rigorous market research and use those findings to evaluate and develop business models that highlight new opportunities for clients.
This video is product of a collaborative partnership between Canadian Innovation Centre and Temple’s Innovation and Entrepreneurship Institute. If you are interested in learning about business models, consider the Fox’s Masters of Science in Innovation Management & Entrepreneurship.
Posted on: August 5th, 2013 | by: Debora Charmelus | no comments
Michael Mittelman, MBA ‘10, is a busy man.
When we connected with him to discuss his career path after graduating from the Fox School, he had just finished mentoring young adults on the upsides and pitfalls of entrepreneurship. The right candidate for the job, Mittelman knows what it takes to transform an idea into a business.
Mittelman’s company, PHmHealth began with his own experience. After his grandmother became seriously ill, he saw how difficult it was to oversee her home health care. This led him to create a system that helps home health care agencies increase credibility and maximize patient care. PHmHealth’s smartphone app allows a patient’s friends and family to be able to manage the care of their loved ones even from afar, and most importantly, helps healthcare providers focus on patients. Instead of staring at laptop, trying to shuffle through loads of red tape, healthcare providers can now clock-in by using Near Field Communication technology, a radio frequency technology that is in most Android devices.
In 2012, Mittelman and PHmHealth won the Fox School of Business’s Be Your Own Boss Bowl, which validated the concept and provided a boost to the company. The competition provided him with mentorship from experienced professionals and a cash prize. During our interview, Mittelman emphasized the importance of vetting an idea. To win the Be Your Own Boss Bowl, Mittelman had to conduct market research, understand the funding structure of his business and put together the right team. These are principles that he learned while completing his Fox Management Consulting capstone project, as a Fox School Student.
During his time at Fox Management Consulting, Mittelman, a team of students and an executive project manager developed a market entry plan for a Japanese firm. Since the company did not yet have a US presence, Mittelman and his teammates functioned as the firm’s ground team. The team conducted high-quality primary and secondary research, and developed an innovative use for the product – one that would fair well within the US market. This was a lesson that Mittelman claims to have helped him as his own business is approaching the market.
The experiences Mittelman gained at Fox Management Consulting resonated with him when he was competing in the Be Your Own Boss Bowl. Through Fox Management Consulting, Mittelman learned how important product differentiation can be. The knowledge he gained by completing hands-on market research also taught him the value of understanding his product, his market and his competitor. Perhaps the most important lesson he learned during his time at Temple’s Fox School of Business was how funding is the crux of any start-up.
Mittelman uses some of the lessons he learned from Fox Management Consulting and as an entrepreneur to teach to those in the QED program at the Science Center. ”Our Fox Management Consulting clients and professors expected us to demonstrate leadership and innovation,” Mittelman states. ”These lessons have really helped me develop my own business.”
Posted on: July 15th, 2013 | by: Debora Charmelus | no comments
What is perhaps the most compelling part of Fox Management Consulting is the knowledge of our program’s staff. Whether the topic is entrepreneurship, leadership, or planning, those who are a part of Fox-MC are more than willing to share their expertise when confronted with a question. Keeping this in mind, Fox-MC wanted to provide a way for any person to connect to our executive-level faculty in the most efficient way possible. This is why we are introducing the new hash-tag #askfoxmc.
The knowledge within our practice is not limited to just business but also encompasses graduate and undergraduate studies, sustainability, innovation and social entrepreneurship. Those who use this tag on social networking sites can #askfoxmc about business planning, university programs, and so on and receive a response almost immediately. Students who are a part of Fox-MC can use the hash-tag to talk to project managers and exchange ideas with other students. Our clients can use the hash-tag to obtain updates on their projects. Those who want to know about MBA programs can receive honest information from faculty. Business owners and entrepreneurs who may not be familiar with Fox-MC can receive reputable business consulting- all in 140 characters or less.
Posted on: July 11th, 2013 | by: Brandon Lausch | no comments
MidAtlantic Farm Credit, a local agricultural lender, has announced new financing and credit options for new-generation farmers and local food-system organizations through its Farm Fresh Financing program.
MidAtlantic Farm Credit, along with Fox Management Consulting (Fox-MC) at Temple University’s Fox School of Business, conducted market research in 2012 that showed that many new-generation farmers and local food-system organizations – such as community supported agriculture programs and marketing consortiums – do not utilize traditional financing options due to weak collateral, poor or inadequate credit histories, and/or cultural disinclinations to borrow money.
Fox Management Consulting is a six-credit, strategy-consulting course for MBAs that integrates academic instruction, work on a live client project and coaching from an executive mentor.
“We’re very happy to see the local food movement continue to grow and attract new growers in new areas,” MidAtlantic CEO Bob Frazee said. “Our Farm Fresh Financing program is designed to help additional producers enter the market, as well as to help current producers grow their businesses to meet a growing demand.”
“The Farm Fresh Financing program is designed to overcome the challenges that typically confront new-generation farmers,” added Frazee, referring to producers who distribute their products through local food channels, and who practice sustainable farming methods, often on a small-scale basis. “Farm Credit has a mission to serve all of agriculture, and we’re excited about the ways our new finance program can help this growing market.”
Sandy Wieber, senior vice president of marketing at MidAtlantic Farm Credit, said the Fox-MC team, through quantitative and qualitative research, helped define the diverse group that Farm Fresh Financing can benefit.
“The students were amazingly, wonderfully professional and listened very well to us,” Wieber said. “They packaged their research together, including identifying the unique challenges for this group. The students conducted detailed interviews that really captured the flavor of the market.”
Farm Fresh Financing coordinates with the lender’s existing StartRight program, which provides resources and financing for young, beginning, small and minority farmers. MidAtlantic Farm Credit is an agricultural lending cooperative owned by its member-borrowers. It provides farm loans for land, equipment, livestock and production, crop insurance, and rural home mortgages. The co-op has more than 10,500 members and approximately $2.1 billion in loans outstanding.
Farmers who are interested in applying for a loan through MidAtlantic Farm Credit’s Farm Fresh Financing program may call 888-339-3334 or visit mafc.com.
Posted on: May 15th, 2013 | by: Becca Zinn | no comments
Geoff Kalish, partner of global private-equity firm Aquiline Capital Partners, entertained the pitch with caution.
James W. Hutchin, an insurance-industry veteran who landed a faculty position at Temple University’s Fox School of Business, was proposing that Aquiline sign on to an experiential learning program, the Enterprise Management Consulting (EMC) Practice, in which MBAs consult for paying clients.
“We pride ourselves on being a specialist investment manager, and we think that the domain knowledge we have is part of the appeal to our limited partners,” Kalish said recently at firm headquarters on Madison Avenue in New York. “The notion of utilizing MBA talent, who may or may not have any background in financial services, to do something useful for us? I was a little skeptical.”
That was 2008 – and five projects ago.
Aquiline, a $2 billion fund, now ranks among EMC’s strongest clients, one that offers a wide variety of projects for students.
“Industry partners such as Aquiline are invaluable to EMC, as they provide the access, guidance and opportunity for our students to meaningfully impact business processes and strategy,” Fox School Dean M. Moshe Porat said.
In return, Aquiline and its portfolio companies receive cost-effective consultants who are enthusiastic and driven and who can leverage their student status to get results. Under the guidance of project managers, either full-time faculty or industry executives, the students work to produce professional-grade reports on issues ranging from market-entry strategies to mergers and acquisition opportunities.
“Bright. Got access to people, and in the end information, that we probably wouldn’t have on our own,” Kalish said of EMC students. “Jim’s pitch was, is and will be, I’m sure, that people talk to MBA students differently than professionals who might be gathering information from a competitive standpoint. The MBA students seem to get access to good information.”
How it began
It all started in 2008 with a Full-time MBA project, managed by Hutchin, examining the environmental insurance market and brownfield redevelopment opportunities. The four-person team presented its research findings in a comprehensive 200-page report at the end of its first semester and designed a strategy, in light of its research findings, in a 30-page scenarios report the second semester. The team also developed a 45-page business plan. The team’s project summary noted positive client feedback: “the work was commercial grade and actionable.”
Two years later, a team of International MBAs explored market-expansion opportunities for Wright Risk Management Holding Company, comprised of two subsidiaries: Wright Risk Management, a fee-service insurance agency, brokerage and consultancy arm; and WRM America Indemnity, an insurance underwriting arm.
In 2011, International MBAs consulted for Clear2Pay as it considered introducing ClearPark Payment Processing, a payment gateway service, into the U.S. market, and last year’s Aquiline-commissioned project involved identifying growth opportunities for Fidelity National Flood Insurance. The latest project, ongoing in the Spring 2013 semester, focuses on a market-entry strategy for one of Aquiline’s financial technology holdings.
Walker Tompkins, retired president and CEO of American Express Credit Corp., has more than 35 years of experience in banking, marketing, liability and money management. He oversaw both the Clear2Pay/ClearPark project and Aquiline’s current project.
Tompkins said the ClearPark assignment distinguished itself because, at the time, its focus on mobile-payment technology was brand new and ever changing.
“One week you’d decide on a strategy and the next week it basically blew you up,” he said. “Every time they reached a conclusion or thought they had a direction, they had to change again. So it was very real life. The world around you is fluid, it’s not static, and the fact that things weren’t static, it was a challenge for the students.”
Pooja Bhalla, IMBA ’11, who worked on the project, said the team had to navigate its own group dynamics while managing a relationship with a European client and ultimately deciding whether investment or a strategic closure was the best option.
“EMC is one of the most important experiences you can have at Fox because it forces you to apply everyday coursework with real clients,” said Bhalla, now a segment marketing manager at a global natural catastrophe modeling company based in Boston. “Overcoming obstacles and executing meaningful deliverables at every stage provided a sense of true achievement.”
Teammate Dominick Chillemi, IMBA ’11, saw Aquiline’s ClearPark project as his first choice because he wanted to work in private equity after graduation. He now does, and he credits his preparedness and professional success to Tompkins and Fox faculty.
“Anything that I handed in for the EMC with Walker I was much more nervous about than anything I hand in to my bosses today,” Chillemi said. “The EMC experience was harder on me than anything I do professionally. And I say that with no reservation. I literally pull out a lot of my EMC notes during projects now.”
Chillemi said EMC taught him to ask as many questions as necessary to get the information needed – and to not be afraid while doing it. “The smartest person in the room is often the one who is least concerned about looking stupid,” he said.
He also grew to appreciate the less glamorous side of consulting, describing his EMC experience through the reaction of an immigrant after reaching Ellis Island. “‘I’ve learned three things: the streets aren’t paved with gold; they aren’t paved at all; and they expect me to pave them.’ That’s exactly what it’s like being a consultant.”
- Article written by Brandon Lausch