So it might as well be the beginning. Starting up what's now known as social business 4 years ago this month in the UK. We'd actually started a lot earlier, with a business plan, before deciding a form of incorporation and were steered toward a guarantee company.

Within weeks, we'd discovered how that cut us off at the ankles. The coop movement told us directly they were only funding projects like ours for full cooperatives, the ethical banking sector wouldn't touch us and a company without shares left us high and dry for private investment.

Then our American founder was denied re-entry to the UK and I sought help. Wrote to my MP, members of the House of Lords and was ignored. Tried to continue our profit for social purpose advocacy contacting several All Party Parliamentary Groups, ignored there too. Except for the APPG on microfinance who too 6 months to decline the offer of a presentation on a successful initiative in Russia. Others just ignored me. My MP responded testily at being asked to help.

As we're working in Eastern Europe, I'd not be exaggerating to say that we made better progress against the Russian Mafia.

Just the other week, I remember a two year old unanswered letter to a local grant funded advocacy, I reminded then of my 2 year wait, they still didn't answer, but they did have a badge of approval scheme which would cost £5000 to be vetted for.

Social enterprise here is a hybrid vehicle, kind of band wagon meets gravy train...

I subscribe to a social enterprise business directory and they keep finding ways to tell me I don't qualify and removing my profile. I endure a smear blog, telling the world we're criminals as we try to raise awareness of neglect in care of disabled children.

Half of my customers find ways to avoid payment and several abandon us.

But we're still here. In spite of the multiple fiefdoms. That's the point. Social return on investment is coming in. Just yesterday we discovered that our activism to raise financial support for in-country adoption had been more than satisfied with an announcement of a doubling of allowances to 300 dollars a month in Ukraine.

That's what counts to us in the end, a social return on investment.

Wow! Jeff, that is a lot to deal with. Would you say that persistence and creativity are necessary to deal with fiefdoms? What were some of the creative steps you took to overcome some of the problems you encountered? At personal level how do you deal with it?

Hi Carlos,

What I've described above is my side of a small organisation and in all honesty, we'd not have lasted as a start-up, if we hadn't had the opportunity to migrate an existing business and customer base to our social enterprise. Where I can, I point out the hypocrisy via my MP. For instance being bumped out a contract with a government department who claims to support social enterprise, by a third party who demanded free service as tribute. Another government customer partners with a major foundation to fund a social enterprise network, but they owe me 2 years maintenance. Our health service promotes social enterprise trusts, but it's very much a one-way street when one becomes a supplier.

Yet what I've experienced pales in to insignificance compared with my colleague overseas who's been harrassed by Russia's FSB, drugged and arrested at gunpoint. Stood up to government minister and made them understand in very plain language that he wasn't going to entertain graft.

One of the fiefdoms he dealt with successfully was the case of someone deciding he was going to have a top job in a local university. The approach, in collusion with local law enforcers, was to throw a group of female students in police cells and threaten them with repeated rape unless they testified to a misdemeanor by the current job incumbent. He went in and made the whole thing public with the protection of a US passport. His philosophy - lift the rock and shine a flashlight, the insects always scatter.

We came across a situation in Ukraine where disabled children were being neglected to the point of starvation in care homes. He wrote up the story, of a visiting NGO entitled "Death Camps for Children". The smear campaign (hosted by Google no less) began almost immediately and at one point a UK barrister began harassing us, for attempting to reveal the anonymous source. They didn't present as a barrister using their professional name of course, but were daft enough to spell it all out on a genealogy website which rapidly vanished, but not before I had a copy.

So yes, we persist. Compared to what we deal with overseas, what we deal with at home isn't really much of an obstacle. We can do what we need to do with or without them.

Jeff

“Fiefdoms lack discipline” and that is how they are formed in community initiatives. Engaging the community requires a sense of openness, which aims to increase participation. In reality without thoughtful participation the loudest voices may lead to fiefdoms forming. To encourage openness and useful interaction a social entrepreneur should have a toolbox full participation and decision-making methods. One facilitator that I know uses play money as form of voting. In other words you have this budget, where would you invest it?

A community investment strategy for a local living economy is one way to engage the community. However, the idea seems so big that is un-manageable, but a good example of keeping it simple is the Seattle’s Foundation Framework for a Healthy Community. A framework provides a means to develop discipline amongst the various fiefdoms. For the social entrepreneur working with a healthy community framework can serve to prioritize their investment and energy.

Once the Federal Government announced its Homeless Initiative a Homeless Foundation faced a dilemma. Nonprofits began to argue about who was serving the homeless and the nature of their housing needs. Nonprofits serving single men and women, the people that most of us see homeless, argued that they should receive the lion’s share of funding.

Fortunately, a private sector board member suggested that agencies group themselves according to the populations they served. He also suggested that each group discuss the needs of their populations, which would be reported to the public and used for funding decision making. By implementing an organizing framework, the various fiefdoms had to learn how to play together.

To be successful in improving your community you may need to engage a variety of fiefdoms. You should be able to speak to them from three perspectives, affinity, social and economic. Your speaking points should be compelling enough to engage their self-interest.

For example; as a housing advocate one could say that providing a diversity of housing options helps individuals thrive, improves the quality of life of a community by reducing crime and contributes to economic growth by stabilizing the local labor force and reducing the societal costs of homelessness.

This was in fact how we approached things from the beginning, in the paper that founded our organisation. By pointing out that leaving people in poverty was a recipe for future acts of terrorism against ourselves. Had our founder been more influential, 9/11 may not have happened 5 years later. Taking the idea of economic 'Smart Bombs" into an Islamic community in crisis was a something of an alien concept back in 2002, now it's the very essence of what an influential think tank now describes as Smart Power. Advocating a business model for the elimination of poverty was really off the wall a decade ago, but only recently one of the wealthiest men in the world came on board with Creative Capitalism.

So, I'll endorse what you say 100%, but there are still fiefdoms who would rather not hear about this kind of achievement, unfortunately.

Jeff, I don’t know that creative capitalism is as necessary as getting away from lazy-economics and entrepreneurship. The fact that corporation or entrepreneur can launch a lousy product or continue business practices that undermine the common good simply because it has influence over public policy is what drives poverty growth.

The sub-crime mortgage crisis is a good example of lazy entrepreneurship. Has the need for sound credit products and housing alternatives disappeared? No! Those needs are still there. However, it is unlikely that lenders will step up to the plate to meet it, as it is easier to influence government to continue business as usual.

Personal fiefdoms are easy to develop in the nonprofit sector. Nonprofits are governed by volunteer board of directors, which influences the level of oversight. If the volunteers are highly committed and skilled then stewardship over the mission and operations of the organization can be effective. However, in community and collation initiatives board members can be individuals with limited oversight expertise.

In such instances it is possible for the executive director to develop a personal fiefdom. Such fiefdom may block creative solutions proposed by staff, cause turf battles (friends of the E.D. versus other staff), and encourage a stifling bureaucracy, as each action needs to be cleared by the executive. The signs that such fiefdom exists are high staff turnover, problems meeting program goals and stagnation in recruiting new board members.

It is difficult to correct such fiefdoms as volunteer boards don't like dealing with conflict. As well, Funding sources give gifts and are not motivated to review a nonprofit for operating effectiveness.

An executive director of a community coalition was credited with saving the organization from its demise. Tight control may have been what the organization needed to survive. However, once the crisis stage was overcome the executive continued to micro-manage staff.

The executive was the only one that knew all the answers, procedures and could give permission to proceed. The executive was unable to allow staff to participate in managing their domain because it could lead to change. Over a period of two years several new staff were hired but later were fired or left on their own accord. Most of the staff that remained had developed personal friendships with the executive.

Rather than hold the director accountable, for the organization’s poor performance coalition members choose to reduce their participation. The coalition’s members form the board of directors.

The leadership in a community initiative can avoid individual fiefdoms by; establishing a clear process and terms for board participation and board succession; recruit board members with complementary skills and business expertise; minimize fragmentation through collaborative decision-making; establishing protocols that avoid bottlenecks; provide training to enhance board members skills in oversight such as fund development, human resources and finance. Board members should participate in fundraising as it helps develop commitment to excellence.

Finally, the contract with the executive director should be directly linked to meeting the organizations outcomes. For example, the type of capital raised should meet the needs of the initiative, which would help avoid developing programs simply to chase dollars.

A community may face a burning issue, such as housing or access to credit. Similar groups may sprout up to tackle the issue. Often this may be reflected by existence of two or more committees or consortiums to address the same issue. These peer fiefdoms can reduce the impact on how effective a community can be in addressing a particular issue.

Peer fiefdoms form to capture specific funding sources without regard to an effective solution for the common good. The Government of Canada Federal Homeless Initiative discouraged fiefdoms by requiring a comprehensive community plan with matching sources of funds from local donors and governments.

The growth of silos, fiefdoms, and new ways to reinvent the wheel, is a problem that has existed for a long time, maybe back to the Biblical days. Lots of money and time are spent on social issues because of this. I've often used the anology that compares solving a social problem to building a building. A building starts with concepts, financing, then a set of blueprints that show step by step what needs to be done from the beginning to the end, so that the building is completed as it was designed. On every page of the blueprint, certain people with specific skills need to do their work, in concert with others. They all need to be paid.

I've not found many blueprints on the internet for helping kids in poverty be starting jobs by age 25, or for ending the water and environmental crisis that persists in many parts of the world. Perhaps because these are complex problems where many different skills are needed, for many years, in every place where the problem persists.

The role I've taken focuses on collecting and sequencing knowledge related to helping inner city youth in Chicago get the adult help they need to assure that more who are born today (first floor of the building) are starting jobs/careers by age 25 (top floor?).

Rather than say "I know all the answers" I start with a concept map showing all of the groups who I think are trying to address this issue, and build links to those groups on my web site, and use forums like this and others to try to connect people from each group with each other. If a new player starts a new fiefdome, I just add their link to the mix, so even if they don't reach out to others doing similar work, I'm connecting others to them.

I'm beginning to use concept maps to illustrate this. Here are a couple: http://cmapspublic.ihmc.us/servlet/SBReadResourceServlet?rid=1204924874855_1541438276_17785&partName=actualhtmltext

http://cmapspublic.ihmc.us/servlet/SBReadResourceServlet?rid=1180992855988_1452846006_54245&partName=htmltext

As I share my own thinking, I'm hoping to find others who are using maps and blueprints in a similar way, and that we can link our thinking, to create larger networks of understanding, that draw more people from their silos and fiefdoms, to places where the begin to converge on common goals, with a focus on all of the places where the same help is needed.

Can you point to any other examples where these types of maps are being created with a networking and collaboration purpose?

Thanks for the thoughtful post. Nice work! Maps like that can certainly help the social entrepreneur to identify where their energy could be best invested. I would use such map to imagine business models that respond to the needs identified. In some cases it may not be a business model but advocacy for change in public policy.

I also find it useful to use something like the Healthy Community Framework or the Federation of Canadian Municipalities Qualify of Life Reporting System. This approach helps explore areas where it is possible to exercise influence and areas of concern, but we would be unable to influence. As well, as develop arguments to attract investment or promote policy change.

Another example; is Planning for Real a technique developed in the UK to revitalize mining communities. It uses a scale model of the community and open houses to facilitate dialogue and collaboration leading to specific projects. The difficulty to overcome in collaborative planning is moving from the abstract to concrete action while obtaining cooperation from the various fiefdoms.

I wondered about hosting this forum since fiefdoms seem to be a natural human tendency. It would be unfortunate if being an entrepreneur were solely defined as an individual only interested in profit. That is as futile as a hunter saying, “better bag me tiger before they are extinct”. Certainly being entrepreneurial has to have more meaning than profit.

Being an entrepreneur is about finding satisfaction in your creative and productive capacity. So, my hope is that entrepreneurs would consider doing business in a way that improves our communities and contributes towards local living economy. I don’t expect that there is a perfect way to achieve this. I only hope that 20% of entrepreneurs choose to ask themselves, how does my business contribute towards a local living economy? If they can pick one project each year, then perhaps we could create enough change to tip change in the various fiefdoms.

I agree with your observation about finding satisfaction in what you do. We each measure profit in many ways. It's not always money.

I've created an innovation tool box that contains links to web sites that inspire me, and that I feel might be useful to anyone else innovating for change or to do good in the world. The web site is interactive, so you and others can add new links, or rate exisiting links. Thus as we learn to innovate, we can also learn to share our secrets so that we influence how others work as well. Here's the link: http://www.tutormentorconnection.org/TMLearningNetwork/LinksLibrary/tabid/560/rrcid/13/rrepp/20/Default.aspx

I like to think of communities as gardens. The role of the social entrepreneur is then to cultivate the garden towards health and sustainability. The cultivating can take many shapes, for profit, nonprofit, charity, advocacy, community organizing, etc. Just like in a garden, you have to take into account the ecosystem you live in. In this case I would call it the ecology of the community. Fiefdoms are part of this ecology.

Divisional fiefdoms exist in large organizations with multiple product or service lines. In this case each division starts acting as its own entity without synergy or interaction with the rest of the organization. Large nonprofits are likely experience divisional fiefdoms.

For the purpose of our discussion consider divisional fiefdoms in a community context, for example, a city’s planning department, economic development authority or police department. As each of these fiefdoms acts on their own accord they can undermine the quality of life of the community. For example a police department that takes a hard line on immigrants in a city that is loosing population every year. Businesses and farmers may face a labor shortage as result, diminishing the economic prospects of the community.

A top tier fiefdom is cut off from reality to such extent that it no longer recognizes its inability to function for the common good. In the nonprofit sector top tier fiefdoms occur at the board and executive level. Board members or the executive of the organization may have a specific plans but don’t share them with staff or their supporters. In other instances the founder’s continue business as usual, which may be at odds with their ability to raise funds or attract supporters. If you ask questions you are likely to get vague answers or told not to ask questions.

Top tier fiefdoms are difficult to alter. If you work in an organization that has a top tier fiefdom start looking for another job. It is not likely that you can alter their direction or lack of it.

Group fiefdoms are where a relatively small group of people forms around a common task, responsibility or objective. Group fiefdoms are extremely harmful to organizations and the common good. In nonprofits group fiefdoms may exist at the board or staff level. Group fiefdoms are aggressive, secretive and fight against oversight to maintain their independence.

For example, a community development organization received 40 million dollars to establish a loan fund to assist small businesses relocate due to a public works project. Board members opposed any protocol that could expedite relocations or provide the best use of funds to the small-business owners.

Instead their goal was to keep as much of the 40 million as possible by waiting until the relocation period expired. Then they would argue for re-allocation of the funds and use them in projects they favored. The majority of small-business to be relocated where owned by minorities or immigrants.

Robert J. Herbold writes, “Protected Fiefdoms occur when a top executive or a board sanctions, harbors, or even creates a fiefdom and provides long-term protection of the fiefdom by sheltering it from financial or strategic scrutiny and, in general, ensuring a hands-off approach to it” A very accurate description.

A recent trend in the nonprofit sector is for boards to sing a “hands-off approach” contract to managing the organization with the executive director. While it is always difficult to determine how to conduct organizational oversight, it is always a good practice and worthy investment. It helps protect the board if a liability due to the executive director’s actions should occur.

Many emphasize financial oversight, yet, just as important is human resources. In particular as there are many more women working in the nonprofit sector, while most executive directors’ are a male. A woman may complain of abusive behavior by the executive director to a board member but see no change in his behavior, which creates a liability. Poor oversight of human resources practices is just as harmful to the organization as a financial scandal.

Navigating organizational & environmental politics is probably one of the most frustrating responsibilities that we have to deal with, but it a reality, and one that we must address to meet our mission.

The chain of political roadblocks sometimes seems endless... other organizations that see your programming as a threat, entrenched community leaders that aren't receptive to new ideas or leadership, partners and colleagues working to advance their own individual agendas, and just general resistance from the status quo.

I think that building effective relationships both inside your organization and outside your organization is critical, and it is based on communicating one key message:

"Both you and I will benefit from our working together... and additionally we'll meet our respective goals."

Unfortunately, for many people we deal with, their past experiences with other colleagues tell them otherwise.

Like most small business, we operate in a competitive environment... the one unique challenge to social entrepreneurs is the fact that we must work cooperatively with groups, people, and institutions that would normally be considered our competition.

I've discovered the following rules of organizational diplomacy...

1. Networking is key. Build relationships agressively as if your future depends on it - it usually does. 2. Create incentives for each of the players in your major projects. 3. Most organizational gatekeepers can be sidestepped. You may have to look outside of the organization or network, but there is always an alternate route to where you want to go. 4. Most power struggles are over control of things that aren't important to your success. Offer creative control to partners and colleagues. You can always use them to springboard your own project.

Thank you! Jonathan, the rules you offer make a lot of sense. In some ways it is about learning to sell your project with integrity. Conceptual Selling by Miller Heiman and Tuleja provides similar advice to what you propose. Learning to talk about your project in a way that it attracts positive interactions is key, in which case diplomacy is essential.

There is always another way to get things done, thinking abundantly, imagination to find your way around and persistence also help.

Hi Carlos,

To break out of fiefdoms that put the "self" at the centre and to "cultivate the garden " I believe prosperity consciousness is needed. My take on social entrepreneurship is that we are in an energy universe so to engage the imaginations of communities, we need to tap into the philosophies that motivate change in an ecosystem of interactions. When we feel abundant we act out of our own inspiration. In this scenario everyone is a winner.

Jo, thank you for your comment. Beliefs and values that motivate change are certainly important. Yet, we need to be careful not to become to dogmatic. Because in a global economy our communities are likely to include a wide variety of beliefs. Perhaps the underlying belief is that we can have a livable planet if we can act together, which requires respect for other beliefs and cultures.

Carlos & Jo, thanks so much for your thoughts on this. I definitely agree that a mindset of prosperity is key to solving one of our biggest obstacles: the concept of ownership, be it ownership of an idea, a resource, a set of talents, etc.

Ownership focus will almost inevitably lead to "protection" of an asset for self-interest, while collaborative creativity will benefit everyone it touches, leading to true positive change. As you said, everyone wins!

The first step is to imagine that you can live in a local living economy. Then explore what a local living economy could mean in your community. Learn as much as you can about your community by talking to as many people as you can. Your goal is to find other people who value the idea. They may not have the same values as you, but that is okay, diversity creates more life and opportunities.

You will know you are getting somewhere when you have a core-group of committed individuals. As core-group then your aim is to develop the necessary community-will to take action.

Developing the necessary community-will for a local living economy means you need to inspire people to consider the possibilities. Use a framework to screen the possibilities for action. Ask yourself, in which issue can my skills and social networks influence change? Distinguish the issues from those you can influence and those that are areas of concern but cannot influence effectively.

For example I am very committed to change in housing for two reasons; one, I believe the structure of the labor market has changed. There are now fewer jobs with livable wages and benefits. Providing housing opportunities that can be afforded by a variety of income types can strengthen the well being local businesses. As affordable housing increases disposable income, which gives individuals to access other opportunities for well-being. Research shows that workers with stable housing are healthier and more reliable, no doubt Sherlock!

Two, energy costs will continue absorb an increasing share of people’s income. A tax credit for at least $5,000 for landlords and median to low-income homeowners to reduce their housing’s energy costs by 40%, would improve the sustainability of our local economies and our planet. Combine that with supportive capital from philanthropists and market capital to increase the number of households. The improvements would be simple, change the windows, insulate the basement and attic, up-date appliances and bathroom and lighting fixtures. The goal is 40% of residential buildings. I doubt we would be having a recession if such program were to be implemented.

But I can’t create that type of change as I am not a voter in the US. So, instead I think of small business ideas that can have the same effect but are implemented locally

To avoid fiefdom syndrome in your initiative be open, transparent and clear about your purpose. Have a clear strategy and implementation plan. Use it as a road map, not a taskmaster. Be open to change in tactics, so you can learn from others. However, always strive to stay true to your intentions. Find a mentor whom you can trust and be open too. Build a support network that is diverse in skill, believes and social contacts.