UNSW Masters of Commerce COMM5030 Project Report 2019 - Forward Thinking Design Food Based Social Impact Case Study
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UNSW Masters of Commerce COMM5030 Project Report 2019 Forward Thinking Design Food‐Based Social Impact Case Study
‐1‐
Preface note from Forward Thinking Design
We've recently worked with UNSW Masters of Commerce students, to assess the impact
of our pro bono work in providing consultancy services to food‐based, not for profit
entities undertaking built asset improvement projects. This is the first report of what we
hope to be an ongoing collaboration with UNSW in gathering our client case studies and
setting parameters for our social impact assessment. Forward Thinking Design would like
to thank the following UNSW Masters of Commerce Students and their teacher Heather
Bailey for this report:
Xiaoqing Tang
Master of Commerce
Specialized in marketing and innovation
entrepreneurship
Saher Madain
Master of Commerce
Specialized in accounting and finance
Ying Li
Master of Commerce
Specialized in marketing
Jingxin Zhang
Master of Commerce
Specialized in business analyticsForward Thinking Design Food Based Social Impact Case Study ‐2‐
Contents
Executive Summary 03 Social Achievements 07
Project Process 04 Conclusions
& Recommendation 13
Financial Highlights 05
Appendix 14
SROI 05
Changes in accounts 06 References 15Forward Thinking Design Food Based Social Impact Case Study ‐3‐
Executive summary
This project report is about the evaluation of It was established that each recipient
the social impact created by Forward Thinking organization was able to meet its short‐term
Design (FTD) through supporting community financial obligations, in addition to using its
food initiatives. assets to generate revenues, at the time of
reporting, after Forward Thinking Design’s
Forward Thinking Design facilitates the
involvement.
improvement of restaurants & co‐ops by
providing creative, strategic retail & hospitality Based on a balanced scorecard, FTD has
fitout design solutions, and project successfully created positive social impact by
management support. In this report, UNSW helping the recipients attract more financial
students assessed FTD’s projects with Alfalfa donors and new customers through
House Food Co‐op, Lentil As Anything (not for improvements in their fitouts, products and
profit restaurant) and Manly Food Co‐op in service.
order to determine the level of social and
Forward Thinking Design is an Australian‐based
financial impact created. The assessment
brand strategy and interior architecture
focussed on both qualitative and quantitative
company. The company maintains exemplary
indicators to evaluate the level of social impact
ethical standards and both time and cost
success resulting from FTD’s involvement. This
efficiency in delivering highly effective design
assessment is important in determining if FTD is
solutions that result in positive social and
meeting its social objectives as a B Corp
commercial impacts. As outlined by FTD’s
certified social enterprise. Thus, the paper
Managing Director, Vanessa Cullen, the
entails a discussion of the inputs and outcomes
company also recruits other donors, from its
of these projects and how these impact the
supplier and associate network, in supporting
recipient organizations performance.
community projects, thus creating an even
greater social impact.
“As an organization that has really good ethics, a good educational program, and really great
products, we also have to have a shop that people want to spend time in. That’s why FTD
were so important to us; because everything only gets better as we finish implementing their
design.” ‐‐‐ Maurice Cabrera, Manager of Alfalfa House
“After the renovations, our volunteers are able to serve more people in less time, so we have more
patrons coming in.” ‐‐‐ Nicole Khoury, Manager of Lentil As AnythingForward Thinking Design Food Based Social Impact Case Study ‐4‐ Project process Our team was allocated to this inspiring project on 7th of January, 2019. In the first stage, we had a one hour scoping meeting on Skype with Vanessa Cullen, Managing Director of FTD, to understand the enterprise in detail, the challenge faced by the business in evaluating their social impact and what deliverables they required from us. After that, we designed an implementation plan with a specific timeline. The first step was that we contacted four of the ‘not for profit’ food based clients of FTD and we received three responses. Then we visited two of the clients (Alfalfa House and Lentil as Anything ) face to face with prepared interview questions for the managers, and a questionnaire for employees, volunteers and customers. We interviewed the third client through email (Manly Food Co‐op). We bought some products in Alfalfa House and had lunch at Lentil in order to better learn about the customer experience. Afterwards, the collection and analysis of relevant data and information were processed during several following group meetings. Simultaneously, a few business concepts and models were considered and applied to support and develop our solutions. Then the Final Project Report with in‐depth analysis of project deliverables was delivered.
Forward Thinking Design Food Based Social Impact Case Study ‐5‐
Financial Highlights
The key financial indicators used in evaluating FTD’s impact on Alfalfa House’s performance include
revenues, profits, operational efficiency, capital efficiency, and liquidity. The analysis will focus on
Alfalfa’s social return on investment (SROI) resulting from the renovation works towards which FTD
donated their design, donor recruitment and project management consultancy services.
Social Return on Investment (SROI)
SROI measures the social and environmental value impacted by the invested resources (Maier et al.
2015). This financial indicator assigns a monetary value to the level of change in an organization (as
reported by the organisation). Comparison of inputs and outputs is used in determining the ratio of
the social value created. The tables below display the value of the organisation's social inputs and
outcomes.
Investment value provided by FTD Value of outcomes to Alfalfa
Social Input Value Outcomes Value created
Experienced designers and $12,860 Sales growth $55,193
consultants
Organisation scaling $12,860
Network resources $34,193
Workers benefits $10,233
Total $47,053
Total $78,286
$ ,
Social Return on Investment (SROI) = = = 1.66:1
$ ,
The social return on investment implies that for each dollar invested in the business, it generates a
social value of 1.66 dollars.
Note: Lentil as Anything & Manly Food Co‐op were not able to provide sufficient financial data for SROI
to be measured at this time.Forward Thinking Design Food Based Social Impact Case Study ‐6‐ Changes in Accounts After assessing Alfalfa’s social return on investments, it is essential to examine its overall performance efficiency. The co‐op’s efficiency is summarized in the table below in terms of changes in accounts. Account Percentage/ Amount of change Increase/ Decrease Sales 4.7% Increase Profit from operation $18,600 Increase Operating expenses ‐7% Decrease Additional revenues $5,000 Increase New membership 643 members*$20 = $12,860 Increase The company's scorecard is attributed to an increase in financial donors, new customers, and product and service quality. In addition, the co‐op’s internal processes improved in relation to product diversity and proper communication strategies.
Forward Thinking Design Food Based Social Impact Case Study ‐7‐
Social Achievements
Increased membership/donors
Customer experience
Workshop provision
Community awareness:
According to the information we have collected from Alfalfa House (Alfalfa), Lentil As Anything (Lentil)
and Manly‐Food‐Co‐Op (MFC) there have been significant improvements in local community
awareness after FTD’s support through 2 indicators; including increased members/patrons and
increased donations/turnover.
Increased membership:
Alfalfa House had increased patronage by 643 new subscribed members, demonstrating
achievements in stimulating community development, fostering community spirit and promoting
sustainable living amongst socially responsible families. Their post renovation marketing effort led to
significant improvement in brand recognition through monthly member eNews, Instagram and
Facebook promotion. Alfalfa’s Instagram following tripled to 3228 followers, and their Facebook
following had grown by 292 new followers. This data demonstrates good signs towards Alfalfa’s
primary purpose to benefit the local community in providing affordable, ethical and organic food in
minimal packaging.Forward Thinking Design Food Based Social Impact Case Study ‐8‐ Lentil as Anything has increased to serving around an additional 100 vegan meals per day which helps to directly mitigate the diet problems amongst under‐employed, homeless and refugee patrons, as well as the general public diners. Manly Food Co‐op (MFC) had signed up 180 new members within two weeks post renovation/relocation due to a more central location and a significant reduction in the membership fee. In contrast, before re‐opening, there were only ten new members every fortnight. Aesthetics and operations: FTD helped Alfalfa House in re‐designing the existing store layout and improving their displays, so Alfalfa had more space to fit in a new freezer line. Due to the new freezer line, Alfalfa could refrigerate the storage of perishable food, and introduce more variety of products to support additional local farmers. The wall painting ideas from FTD’s design become Lentil’s iconic representation which attracts more of a younger generation to come and visit. MFC has re‐opened in a much more central and un‐ cluttered location which is more convenient and attractive for their customers. Product diversity and range: For both Alfalfa and MFC, FTD helped them to redesign the shop layout with more space to expand their product range. Alfalfa currently has more than 20 types of fresh products displayed in their new freezer line. An additional 2 to 5 customers come each day to specifically purchase products within the freezer resulting in an increased $5000 revenue monthly. Alfalfa’s manager indicated that they have recently supported eight new suppliers, including two local farmers and six retail sources of whole food so that the customer can have more choice over the low‐cost, ethically‐produced and plastic‐free‐packaging products. MFC has a similar situation, the larger and brighter shop environment has also allowed the manager to improve product range. Members have received a wider variety of packaging‐free products and this raises awareness in the local community to live single‐use plastic free and pursue a more planet‐friendly life. Positive customer experience: According to Kulbyte (2019), businesses invest in customer experience to pursue improvement in customer retention and improvement in customer satisfaction. All three of FTD’s recipient organisations improved their customer environment. The rearrangement of products and shelving provided Alfalfa with more space for circulation, leading to decreased customer complaints from two
Forward Thinking Design Food Based Social Impact Case Study ‐9‐
per day to zero. The shop can now hold 12 people at the same time in comparison to 6 before the
renovation. Lentil’s dining environment became cleaner, brighter and tidier than before and more
customers became willing to revisit. FTD’s initiated wall painting idea has revitalised the restaurant to
become more creative and fashionable while attracting more pedestrians to walk in and experience
the restaurant’s vegan meals.
Kulbyte (2019)
Improvements of internal communication:
FTD considered the employees’ working experience and work health and safety requirements. After
renovation, Alfalfa House has a better layout, creating ten more square metres of active space. This
proper layout solves the problem of narrow space and communication isolation in the working areas,
allowing better communication among staff members. A good communication environment maintains
the enthusiasm of employees and their basic social needs. Effective communication can connect the
employees, and is an essential step in building up a good team. This shows Alfalfa House and FTD care
about the employees and wish to make positive impacts on the workplace. Staff retention has
improved as a result.
Increased productivity:
The improved layout increased the productivity of Lentil as Anything after renovation. Lentil is mostly
run by volunteers. Numbers of volunteers in Lentil did not change, but the restaurant could serve 100
meals more per day in the restaurant after renovation. A better workplace improved the capacity of
outputs and the quality. Importantly, more food is now rescued and consumed in an eco‐friendly way,
as a result, leading to a reduction in food waste and CO2 waste prevention.Forward Thinking Design Food Based Social Impact Case Study ‐ 10 ‐ The average number of additional meals served per day could be used to measure the social impact of how much food was rescued. Serving more meals contributed to a steady increase in the restaurants donations. The donations go back into the restaurant, sustaining the restaurant and improving its facilities. Reduced work injuries At all three client premises, a tidier and more functional workspace has allowed people to walk around more easily. Notably, the coffee area was redesigned in the Lentil as Anything restaurant. The coffee machine used to be in a difficult position, and the coffee area is small, so the staff had little space to work around. Since some staff at Lentil suffer mental and physical illnesses, it was particularly imperative that the space be improved to support their movement, safety and communication around hot liquids. The new, more functional coffee workplace in the restaurant has fulfilled the needs of operation so that work injury rates have now been reduced. Volunteers and other staff in the restaurant now benefit from working in an extremely safe place. Learning and growth For social enterprises, it is imperative to evaluate the learning and growth development of employees and volunteers within the organisation. Neelam et al. (2013) argue that organisations investing in adequate training and development tend to achieve both short and long term benefits. Two aspects of this perspective were significantly improved after FTD`s pro bono revitalisation work with its clients. Improved educational program Owing to FTD`s assistance, Alfalfa House and Lentil as Anything both now enjoy much better conditions for training and education at their venues. In the past, Alfalfa House could only hold meetings in a quite small indoor space or the backyard. After the professional design and renovation work of FTD, the store itself can be easily converted into a larger, flexible space for training, meetings and workshops. The store used to accommodate up to six people sitting down simultaneously, and now 12 people can share the comfortable environment together for better training, learning, communication and team building. Mr M. Cabrera, Manager of Alfalfa House, said in an interview on 24 January 2019, that by implementing the design changes that FTD proposed to them, not only can they do staff meetings in the shop now, they can also hold public workshops. They have the ability to teach people how to buy packaging‐free, local food, how to cook it, and how to grow their own. Alfalfa House currently holds several different workshops; such as their ‘How to grow mushrooms’ workshop and ‘Customer Reception’ workshops, which could not be realized before FTD assisted
Forward Thinking Design Food Based Social Impact Case Study ‐ 11 ‐ them. In light of this, personal development in the organization and community can now be supported and achieved to a considerable extent. High degree of staff satisfaction Our consulting team conducted a questionnaire facing FTD`s three clients` working staff to identify the degree of their satisfaction after renovation. We have collected answers from five persons, and the result shows that they unanimously define the degree as ‘extremely positive’ regarding the following items: community pride, level of motivation of working, innovation, improved community culture and environmental conditions of the workplace. The high degree of staff satisfaction resulting from FTD`s efforts is further reflected in these two points: Increased staff numbers and low rate of turnover Cabrera (2019, intv., 24 January) stated one of the ways they measure how well they are doing is not just how much money they make, but by how many new people come to join their organisation. In December 2016, Alfalfa House had 46 volunteers, and the number increased to 81 in December 2018 after FTD redesigned the store. As for Lentil as Anything, Khoury (2019, intv., 24 January) told us that after the renovation, their volunteers have been wanting to serve longer shifts per day. The further impact derived from this is that more and more people are gaining social interaction and training, and becoming capable of gaining benefit from work. Volunteering or working at any of the 3 organisations (Alfalfa, Lentil and Manly) also provides access to healthy, affordable local food. Cabrera (2019, intv., 24 January) emphasised that part of what FTD presented to them is to have stability because of more team supportive environment. Since the renovation at Alfalfa House, no one has resigned. Emotional boosts Emotional boosts could play an essential role in promoting organisation cohesion, which is one of the most outstanding influences that FTD has brought to its clients. FTD uses community engagement and co‐design processes in their work to empower all stakeholders to actively participate in creating change. The managers of FTD`s clients illustrate that their employees and volunteers are full of enthusiasm at work after the redesign and renovations. They are proud and excited to introduce customers and members to the new spaces. Due to lack of space, Alfalfa House used to have only voluntary staff meetings and now they have paid staff meetings once every three months due to the larger space, which makes the employees generate more motivation to devote themselves to their work. Furthermore, the larger scale of labour resources now enables the organisations to reach more
Forward Thinking Design Food Based Social Impact Case Study ‐ 12 ‐ vulnerable groups and help staff and volunteers to develop greater self‐worth. Alfalfa House and Lentil as Anything have volunteers who suffer depression or disabilities and both the design/renovation process, and their spaces now support these people to acquire a greater sense of equality and pride; which creates a significant impact on their physical and mental health.
Forward Thinking Design Food Based Social Impact Case Study ‐ 13 ‐ Conclusion and recommendation In conclusion, this project report provides practical and tailored assessment methods, including both quantitative and qualitative approaches, for Forward Thinking Design to measure the social impact it has generated with the selected clients. With the aid of the models of Social Return on Investment and Balanced Scorecard, the pre and post revitalisation performance levels for social impact could be quantified and evaluated by indicators in four perspectives: financial, customer, internal process and learning and growth. For the customer perspective, the influences caused by FTD`s redesign could be highlighted in the increasing awareness and customer satisfaction reflecting in increased membership, increased donation, shop attraction, product diversity and positive customer experience. From the point of internal process perspective, the significant enhancements could be captured in the improvements of internal communication, increased productivity and reduced work injuries. Last but not least, improved educational programs and a high degree of staff satisfaction (including increased staff members and low rate of turnover, emotional boosts) are strong evidence to demonstrate FTD`s achievements with these clients/recipients of their services.
Forward Thinking Design Food Based Social Impact Case Study ‐ 14 ‐ Appendix Logic model for Alfalfa House Analysis: Logic model for Lentil as Anything Analysis:
Forward Thinking Design Food Based Social Impact Case Study ‐ 15 ‐
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