Table of Contents · 2020-08-02 · concerns that BiH’s youth unemployment crisis threatens to create a “brain drain” of millennial workers, undermining national educational

0 D 2 I N T E R N A T I O N A LCopyright © 2019 Deloitte Development LLC. All rights reserved.

Building Bosnian Entrepreneurship: How the Mozaik Foundation relationship developed Deloitte’s talent and drove social impact

December 2019

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Copyright © 2019 Deloitte Development LLC. All rights reserved.

I. Letter from the D2i Program Sponsor……………………………………….2

II. Introduction…………………………………………………………………………………3

III. Mozaik Foundation: Accelerating Impact in a Recovering Nation…………………………..….4

IV. Deloitte’s Role in the Transformation from Nonprofit to Social Enterprise…………………6

V. Enduring Business Value……………………………………………………………………………………….…..12

VI. Contact Information……………………………………………………………………13

Deloitte established a longstanding collaborative relationship with the Mozaik Foundation to guide the transformation of a nation through social entrepreneurship while developing Deloitte’s talent and capabilities.

Table of Contents

D 2 I N T E R N A T I O N A L


Dear Reader,

In 2014 I had the good fortune of meeting Zoran Puljic, founding director of the Mozaik Foundation. Like all Bosnians, Zoran’s life was forever changed by the devastating events that took place in Bosnia during the 1990s. This tragic point in history left Bosnia with a scarred landscape and massive unemployment that has ranged between 25%-40% overall and an astounding 50%-55% for youth.

I find it hard to convey just how tough this can be to grow up in this kind of environment. It’s difficult to truly understand how hopeless it can feel or how exhausting it can be to labor for years to try to make things just a little better. I often tell the story of meeting a young college student in Bosnia who was getting close to graduation. When she asked me for my honest advice about her career and life, I recall feeling dejected realizing that my best advice for her might be to leave the country.

Unlike many others, the inspiring people that work at the Mozaik Foundation choose to stay and give the youth of Bosnia a future. In such a challenging environment though, it takes more than just desire. It takes creative thinking about how the private sector can work with the social impact sector and it takes smart strategies about how to bring out the best that private industry has to offer. This document represents how Deloitte’s D2International (D2i) program approached a collaborative partnership with the Mozaik Foundation.

And while challenges still exist, I’m impressed by what a difference we have made. Since D2i began working with Mozaik, investments have flowed in, thousands of youth have been trained in business skills, jobs have been created and there is more hope for the future.

This document tells a story of a six year journey for Deloitte D2i in Bosnia. I am grateful for the young professionals of D2i who have worked so hard for years on this cause and for the leaders of Mozaik who have shown me what courage looks like. I’ve experienced an inspiring lesson of what can be done when we work together and when we challenge each other to believe that we can make a difference.

Kind Regards,

Peter Liu

Managing Director

Deloitte Consulting, LLP

Letter from D2i Program Sponsor


D2i Theory of Change

A powerful force exists within Deloitte and across the private sector for driving exponential social impact. At Deloitte, this force hasinspired in-house social impact programs to connect to external social sector organizations with the common goal of doing good forthe world while solving some of today’s most pressing challenges. Beyond creating social impact around the globe, the relationshipsformed through these programs present exciting possibilities to develop Deloitte’s people while also innovating new capabilities acrossDeloitte’s Offering Portfolios. Our collaborative relationship with Mozaik, detailed in this paper, serves as an exemplary model for otherDeloitte social programs as they seek to build mutually beneficial relationships with likeminded organizations.

In 2014, Deloitte’s D2international (D2i) Fellowship engaged with the Mozaik Foundation, a social enterprise incubator focused onidentifying, empowering, and investing in young entrepreneurial leaders in Bosnia and Herzegovina (BiH). D2i, a program dedicated tocatalyzing meaningful change at the intersection of people, professional services, and international social impact, saw high potentialand mutual exchange with Mozaik.

This document tells the story of the strong relationship between these organizations, beginning from their first engagement in 2014 tocontinued collaboration in 2019. The paper outlines Mozaik’s organizational journey – from a community-based non-profit to aregionally recognized social enterprise entity that has provided in-depth training and support to the leaders of over 91 prototypeinvestments and invested in over 27 promising social businesses to date – and Deloitte’s innovative solution delivery that helped drivethat journey. Overall, this sustained relationship demonstrates both Deloitte’s capacity for long-term social impact, its potential forincreased business value to the organization, and a model for other Deloitte programs to emulate.

• Deloitte provides Mozaik resources and experience from across the public and commercial spheres that are typically difficult for them to access

• Mozaik provides Deloitte’s rising leaders opportunities to lead challenging real-world projects, develop innovative capabilities, and cultivate relationships with external leaders while expanding their personal (and the organization’s) social impact footprint

This unorthodox relationship between a large professional services organization and an emerging social enterprise supports both organization’s strategic priorities:

Introduction


55% of youth

unemployed

25% national

unemployment

950kyouth

population

BiH faces staggering unemployment rates, with 25% of the generalpopulation and 55% of youth unemployed—the third highest youthunemployment rate in the world as of 2017.1 These statistics driveconcerns that BiH’s youth unemployment crisis threatens to create a“brain drain” of millennial workers, undermining national educationalreforms and further decreasing opportunities for innovation andeconomic prosperity. These economic woes have been furthercomplicated by persisting issues related to the country’s armedconflict that occurred from 1992-1995.

Responding to an urgent need for social change and economicstability, Zoran Puljic co-founded the Mozaik Foundation in 2002. Itaimed to strengthen rural communities through programs thatmobilized local resources and promoted sustainable socio-economicdevelopment. Initially, Mozaik solely engaged with entrepreneursthrough grant-based awards, supporting youth groups andorganizations running projects to create economic and communitybenefits. While its model proved successful, Mozaik had a vision ofbroader social and economic transformation in BiH. Inspired in partby founding director Zoran Puljic’s residency at Harvard BusinessSchool, Mozaik captured this broader vision in its initial 10-YearStrategy an has sought to realize by implementing two majortransformations to its business model in 2014 and 2018.

Challenges facing BiH

Deloitte saw in Mozaik a collaborator that was ambitious, visionary, unafraid of change, and capable of carryingforward new solutions. Deloitte began its relationship with Mozaik in 2014, supporting Mozaik’s first majorbusiness model transformation which pivoted the organizational strategy from a community-based grant-makingmodel to an ambitious model that provides a spectrum of services including education, incubation, and seedfunding to aspiring social entrepreneurs in BiH. This shift increased Mozaik’s impact considerably, as theorganization has now provided resources and education to the leaders of 91 prototype investments, andinvesting in over 27 promising social businesses that have in turn created new jobs across BiH. Over the next sixyears, the collaborative relationship between Deloitte and Mozaik matured, providing mutual benefits andcarrying both organizations into a new frontier of social impact.

Today, Mozaik is a leading social enterprise organization in the Balkans and receives international recognitionfrom organizations including the Schwab Foundation for Social Entrepreneurship, United States Agency forInternational Development, the Swedish International Development Cooperation Agency, and the Swiss Agencyfor Development and Cooperation. Mozaik continues to evolve as it seeks to realize the 10 Year Strategy itdeveloped, undergoing another business model shift in 2018 that included a major digital transformation to scaleits impact using an online community to reach greater numbers of youth in the Balkans; despite the changes,however, it remains laser focused on its vision of “Bosnia and Herzegovina – where the economy is good for all.”The next section outlines in greater detail this continuous evolution as well as the important role Deloitte hasplayed throughout.

Creators of “Good Economy”

1The World Factbook: BOSNIA AND HERZEGOVINA. (2018, July 12). Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/bk.html; Unemployment, youth total (% of total labor force ages 15-24). Retrieved from https://data.worldbank.org/indicator/SL.UEM.1524.ZS?year_high_desc=true.

Mozaik Foundation:Accelerating Impact in Bosnia



2014 – YEAR 1 Supported operating model transformation, delivered Innovation Tournament

2015 – YEAR 2Continued development of Innovation Tournament strategy

Deloitte’s involvement with Mozaik provided criticalexperience to support realization of the strategy Mozaikdeveloped and resulted in considerable impact towardsMozaik’s transformation. Over the past six years, the solutionsdelivered to Mozaik represent the strategic blend ofcapabilities that make up Deloitte’s Offering Portfolios. WhenDeloitte first engaged with Mozaik in 2014 with support fromthe partner firm Deloitte Bosnia and Herzegovina, Mozaik wasat the edge of scaling its operations and impact goals. Today,this scaling is solidly progressing and Mozaik has pivoted itsstrategy to support aspiring social entrepreneurs in BiHthrough education, incubation, and seed funding. To supportthis shift, Deloitte developed and delivered innovativesolutions in the areas of Workforce Strategy, OrganizationalStrategy, Operating Model Transformation, EntrepreneurSupport, Customer Strategy, and Innovation. Since 2014, thesustained relationship allowed Mozaik to fully capitalize onDeloitte’s innovative solution delivery, ranging across offeringsincluding Organizational Design, Learning & Development,Strategic Growth, and Data & Analytics Modernization. Thefollowing section details the capabilities D2i delivered eachyear and their ensuing impact to Mozaik.

Overview

2017 – YEAR 4Strengthened youth innovation capabilities and supported social impact assessment methodologies

2018 – YEAR 5Guided a digital transformation with data analytics strategy and scalable mentorship program

2016 – YEAR 3Delivered ecosystem approach, shaped funding and mentorship strategies

“THE SECRET OF CHANGE IS TO FOCUS ALL YOUR ENERGY, NOT ON FIGHTING THE OLD, BUT ON BUILDING THE NEW.” - SOCRATES

Deloitte’s Role in the Transformation

2019 – YEAR 6Explored new opportunities for LONAC growth and refreshed marketing and branding assets


Fellowship

With the support of roughly 50 Deloitte practitioners,the 2014 D2i fellowship supported Mozaik’s leadershipwith strategic guidance on how to craft a businessmodel that would reflect the organization’s newoperational model as a social business incubator.Leveraging experience in Enterprise Model Design,Deloitte practitioners worked with Mozaik to execute anoperating model transformation that reoriented Mozaikto function as a social impact investment non-profit.This transformation included collecting inputs from keyMozaik stakeholders and building consensus around ashared organizational vision, shifting resources toachieve new goals, and building out entirely newbusiness processes that would facilitate theidentification and development of successfulentrepreneurs through a Mozaik-run incubator.Additionally, the team helped create a robust ImpactMatrix for Mozaik to monitor its progress anddemonstrate its impact to external stakeholders.Continued implementation of the new model will allowMozaik to pursue its regional ambitions, as it intends toscale and serve an increasing number of buddingentrepreneurs across the Balkans in years to come.

Additionally, the 2014 D2i fellowship designed and facilitated an Innovation Tournament focused on increasing Mozaik’s socialinnovation capacities. The Innovation Tournaments convened young leaders from Mozaik’s Youth Bank (YB) programs throughout BiHto collaborate in designing, developing, and presenting new business ideas. The success of these Innovation Tournaments inspired theMozaik management team to make the Tournaments an integral part of the organization’s ambitious 10-year strategy to develop ageneration of socially innovative youth who would generate jobs and serve as role models in their communities. The initial fellowshipproved so impactful that Deloitte committed to working with Mozaik over the following years with targeted teams of five to sevenpractitioners.

1 3 42 5

D2ipresented trainings and

materials

D2i fellowshosted working sessions with YB

members

Participants presented pitch

to panel of Judges

Winning team chosen for grand

prize!

D2i picked up YB members from across the country

Innovation Tournament

TalentStrategy “What are

the skills and abilities that we want to grow in

BiH future leaders?”

Entrepreneur Support

“How can weeffectively and

impactfully support social

entrepreneurs?”

Curriculum Strategy

“How do wecultivate

skills and abilities that we want togrow in future

leaders?”

Impact Analytics“How can we collect useful,

reliable data to measure the

effectiveness of our programs?”

Innovation Tournament “How can we

increase innovative

Capacity within BiH?”

2014: Building the Foundation


2015

2016

D2i continued to work with Mozaik to further develop the Innovation Tournament framework and strategy in 2015. To increase theimpact of the tournament, the team identified best practices and recognized methodologies to enable Mozaik to better inspire andguide aspiring entrepreneurs through the tournament. As a part of this, Deloitte designed detailed labs for Mozaik to leverage infuture engagements with entrepreneurs along with other materials to train Youthbank participants on key business and socialentrepreneurship concepts. The Lean Startup methodology inspired the work, with a framework to prioritize rapid development andmaximum flexibility for entrepreneurs. The impacts of the Lean Startup resources delivered by Deloitte, such as the Business Canvasstool, continue to this day, as the methodology influences numerous elements of Mozaik’s engagement with its entrepreneurs.

As operations further developed, Mozaik looked to expand its networkof stakeholders to include academia, media, government, and funders,each of which required a different mindset than operating a traditionalorganization. In 2016, the D2i team identified opportunities for Mozaikto better achieve its objectives through engaging new partners andstrengthening current relationships. This culminated with anestablished plan of action for Mozaik to assume their desired role. Tosupport this evolution, the team shaped funding and mentorshipstrategies for the businesses. The approach equipped Mozaik with abetter understanding of the funding options available to socialenterprises as well as models to establish an external mentorshipcommunity.

“I have been working with aid organizations for over 20 years. I have never seen impactdone so effectively and passionately. Our team and community is inspired by D2i.”- Zoran Puljić, Mozaik Foundation Director

91%Mozaik staff reported better understanding of how Mozaik can support entrepreneurs in BiH.

93%Mozaik staff reported better understanding of the value and application of business analytics for Mozaik’s 10-year strategy.

As the relationship continued in 2017, the D2i team once again focused on the Innovation Tournaments and developed an innovationframework. The framework helps coaches better conceptualize innovation while also serving as a guide that helps coaches moreeffectively facilitate conversations to help participants strengthen ideas. This “Train the Trainer” workshop utilized the Ten Types ofInnovation toolkit, a Deloitte-owned framework created using a proprietary approach to assess a list of more than 2,000 successfulbusiness innovations. In addition, the team provided solutions on social impact assessment methodologies and tools to determinehow Mozaik-funded businesses could accurately measure, monitor, and evaluate social impact and effectiveness.

2017

2015 - 2017: Increasing Impact and Capability



Entrepreneurs understand Mozaik and the concept of

social business

Entrepreneurs create a LONAC

account

Entrepreneurs begin to develop and validate social

business model

Entrepreneurs enter the Social Business Incubator and utilize

resources to develop their business models and create a

minimum viable product

Mentees further refine business models and prepare for business

pitches in Demo Day II

Entrepreneurs graduate from Incubator, register

business, and begin operations following Mozaik investment

Business Innovation Tournament

Enter LONAC

Incubator: Develop MVP

Registration / Maintenance

Incubator: Pitch for Investment

KM

Discovery Develop Business Model

Demo Day I

Demo Day II

A Social Entrepreneur’s Journey

Mozaik stands at an exciting crossroads as it prepares to aggressively scale by leveraging a new, increasingly digital operating model.Having already magnified its impact as it transitioned from a grant-awarding organization to a social enterprise-focused organization,Mozaik has proven itself capable of reinventing itself to better serve the vision of “BiH – where the economy is good for all.” ThroughLONAC, Mozaik will expand its reach regionally and influence more budding entrepreneurs by offering resources in a flexible, digitalmanner. The maturation and profitability of Mozaik-funded businesses also offers promising potential for the organization’ssustainability and growth, as Mozaik’s equity in those businesses will directly fund investment in new ventures started by futureentrepreneurs in Mozaik’s incubator.

To expand its reach and drive toward its ambitious 10-yearstrategy, Mozaik conceived of and developed an online learningplatform coined LONAC, thus catalyzing a digital transformation.LONAC will not only create an on/offline community to better andmore effectively serve entrepreneurs, but also will enable Mozaikto adopt more flexible operations.

To support Mozaik with these digital growing pains, the 2018 D2iteam focused on two critical areas for improvement from thepoint of view of aspiring entrepreneurs (Mozaik’s customers):analytics and entrepreneur mentorship. The analytics team initiallyprovided an overview of commonly used analytic

capabilities, which illuminated how the increased use of datacould strengthen Mozaik’s business model and support decisionmaking across the organization. This led to the development of aninitial analytics strategy and allowed the team to establish acustomer journey map to identify the key mission-focuseddecision areas across the entrepreneurial journey. This analyticsstrategy outlined the steps for collecting relevant data throughLONAC as well as new entrepreneur focus groups, which willprovide insights into the effectiveness and impact of Mozaik’sprograms. Through the delivery of these solutions, Deloittebrought Mozaik closer to realization of its long-term goals byequipping it with the roadmap to become a data drivenorganization.

Along with the analytics efforts, the team utilized Human CenteredDesign methodologies to refine Mozaik’s mentorship program inthe face of rapid growth in the number of entrepreneurs served,both online and offline. This included the development of amentorship roadmap to help Mozaik execute on this vision, whilealso defining how the mentorship program would transform long-term as LONAC became the central platform for the organization’soperations.

2018: Supporting Digital Change


Given Mozaik’s continued maturation and the wide range of opportunity areas for the organization, the 2019 team elected to divide efforts into 3 discrete workstreams. Together these elements will help Mozaik navigate the challenges faced by an increasingly eminent social enterprise by enabling the organization to better tell its story and strategize about future growth. ‘

Over the past several years Mozaik’s development of its own online community platform LONAC has sparked a digital transformation for the organization. With nearly 21,000 registered users to date, LONAC allows Mozaik to streamline existing processes while supporting entrepreneurs in new ways. To support this ongoing transformation, the Deloitte team helped Mozaik explore new opportunities for LONAC both internal and external to the organization. Leveraging Customer-Centric Design principles and insights drawn from real-life users, the team assessed the platform’s current state to help illuminate strengths and opportunity areas encountered by users. This assessment, in addition to a brainstorming session to realign Mozaik’s collective vision for LONAC, helped Mozaik prioritize improvement areas to address. The second half of the LONAC Strategy engagement centered on considerations of growing LONAC beyond Mozaik itself through sales to or partnerships with other organizations. The Deloitte team conducted extensive market and customer research to help Mozaik understand the existing ecosystem of similar platforms and how LONAC compared. Through this research and the ensuing discussions, Deloitte prepared Mozaik to rigorously assess potential external opportunities for the LONAC platform and how these opportunities contribute to the organization’s existing strategy.

As Mozaik has been expanding its horizons, so too has Deloitte. Deloitte recently established its Advertising, Marketing, and Commerce capability as part of its Customer and Marketing Offering Portfolio. Given the importance of messaging and branding in the nonprofit space, Mozaik asked Deloitte to elevate their brand to strategically position them for years to come. To achieve this, the team completed a comprehensive brand audit for Mozaik, leading to a brand evolution. To enable this evolution, Deloitte helped Mozaik craft its brand story through stakeholder interviews and a curation of experiences unique to Mozaik. As a result of this effort, Deloitte provided Mozaik with elevated logos, brand guidelines, and a bespoke visual identity system that can be used to activate multiple channels of engagement, including digital, print, and social media. The impact of these contributions will continue for years to come as Mozaik continues to leverage the collateral resulting from the engagement with Deloitte.

As part of Deloitte’s push into Advertising, Marketing, andCommerce capabilities, Deloitte Digital’s “Video Experience” teamtraveled to BiH in 2019 to produce an inspirational videoadvertisement about Mozaik. The piece aims to reach potentialdonors and aspiring entrepreneurs alike by showcasing BiH as aplace of exciting, forward-thinking change, enabled by thecommunity-minded entrepreneurship championed by Mozaik.The Deloitte video crew traveled over 350 miles to 5 cities tocapture footage of entrepreneurs at work, the daily operations ofMozaik, and the look-and-feel of life in modern Bosnia. Deloittewon a 2019 MarCom Gold Award for the video, which is both anew way for Mozaik to tell its story and a showcase of the creativemuscle Deloitte brings to clients worldwide.

2019: Looking Forward and Telling Mozaik’s Story

Revamped Mozaik Logo

Updated Mozaik Color Palette

Overview

LONAC Strategy

Marketing & Branding

Mozaik Video


Deloitte’s people and services helped support thestrategic vision developed by Mozaik and drive Mozaik’sorganizational transformation , which in turn contributedto Mozaik’s work to create systemic change at a nationallevel through social entrepreneurship. This changemanifested itself both in the form of tangible, shorter-term impacts such as new companies and jobs createdthrough Mozaik’s guidance and in less visible, longer-term impacts such as the development of a newunderstanding of the possibilities offered by socialentrepreneurship.

Beyond the solutions delivered to help Mozaiktransform and better execute its mission of improvingBiH’s economy, Deloitte’s engagement has andcontinues to be an important element of Mozaik’s abilityto secure funding from international donors. Deloitte’swork to help Mozaik transform its operating model,along with its knowledge of the donor sector, provedcritical in helping to secure funding from internationaldonors such as the Swedish and Swiss governments.Additionally, the highly focused impact areas of the 2019team will help Mozaik meet key performance indicatorsthat will sustain and even increase donor funding.

As Deloitte’s work with Mozaik resulted in tangible impact to Mozaik and BiHwrit large, the business value to Deloitte also consistently grew. Throughthis enduring engagement, Deloitte has improved its capacity to pilot anddeliver innovative solutions for clients, strengthened its reputation as aglobal corporate citizen through joint engagements at internationalconferences, and attracted and retained high-potential future Deloitteleaders.

The relationship also provides a roadmap for how engagements betweenDeloitte and similar organizations can evolve. Every relationship is unique,and not all organizations possess the visionary leadership and practicalmaturity of Mozaik that proved critical to the success of the collaboration.Nonetheless, this model provides an example of how large private sectorcompanies can deliver transformational work. This starts with an initialproject, which the organizations refine and then build organizationalcapacity through sustainment projects before eventually shifting into atrusted advisor role providing specialized skills or expertise. Such a modelcan be beneficial for both Deloitte and the collaborating organization, as itfosters both increased local capacity, a prerequisite of sustainabledevelopment, and the delivery of more specialized skills or offerings, whichbetter prepares practitioners for complex client delivery projects acrossDeloitte offerings. This impact and value to Deloitte may be replicatedoutside of the relationship with Mozaik and practitioners may emulate thisengagement in other social impact projects. While they require substantialtime, trust, and commitment from both parties, such collaborativerelationships prove that the oft-repeated adage that “doing good is goodbusiness” can in fact be true.

SOCIAL IMPACT ORGANIZATION

DELOITTE

MOZAIK RESULTS TO DATE:

118 SOCIAL BUSINESSES invested in

1,157 GRANTS DISTRIBUTED to Bosnian youth

20,930 LONAC REGISTRATIONS since platform released

1 SOCIAL ENTREPRENEUR RECOGNIZED by United Nations #WEEmpower SDG Challenge

Enduring Business Value

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Please reach out to any of the individuals below for more information regarding Deloitte Social Impact, Mozaik, and/or D2i.

Contact Information


Peter LiuManaging DirectorDeloitte Consulting LLPTel/Direct: [email protected]

Amy Lawson-StoppsManagerDeloitte Consulting LLPTel/Direct: [email protected]

Sam WolterConsultantDeloitte Consulting LLPTel/Direct: [email protected]

Ryan CounihanSenior ConsultantDeloitte Consulting LLPTel/Direct: [email protected]

Helen RobertsonSenior ConsultantDeloitte Consulting UKTel/Direct: +44.20.7303.4421 [email protected]

Claudia GilesDigital ConsultantDeloitte Consulting LLPTel/Direct: [email protected]

Turner SwicegoodStudio SeniorDeloitte Consulting LLPTel/Direct: [email protected]

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This publication contains general information only, and none of the member firms of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collective, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP and

their respective subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2019 Deloitte Development LLC. All rights reserved. Member of Deloitte ToucheTohmatsu Limited

Table of Contents · 2020-08-02 · concerns that BiH’s youth unemployment crisis threatens to create a “brain drain” of millennial workers, undermining national educational

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