Article | Harvard Business Review

The Ecosystem of Shared Value

by Mark R. Kramer and Marc W. Pfitzer

Abstract

Governments, NGOs, companies, and community members must all be involved in programs to create shared value, yet they work more often in opposition than in alignment. A movement known as collective impact has facilitated successful collaborations in the social sector, and it can guide businesses in bringing together the various actors in their ecosystems to help remedy some of the world's most urgent problems. In the process, companies will find economic opportunities that their competitors miss. Five elements must be in place for a collective-impact effort to achieve its aims: (1) a common agenda, which helps align the players' efforts and defines their commitment; (2) a shared measurement system; (3) mutually reinforcing activities; (4) constant communication, which builds trust and ensures mutual objectives; and (5) dedicated “backbone” support, delivered by a separate, independently funded staff, which builds public will, advances policy, and mobilizes resources.

Keywords: Social Entrepreneurship; Cooperation;

Format: Print Find at Harvard Register to Read

Citation:

Kramer, Mark R., and Marc W. Pfitzer. "The Ecosystem of Shared Value." Harvard Business Review 94, no. 10 (October 2016): 80–89.

About the Author

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Mark R. Kramer
Senior Lecturer of Business Administration

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