A Case Study: The Foundation

1. A Case Study: The Foundation Lindsay McHone Kim Moody Diane Weaver

2. Listen and Learn http://www.arcticlanguages.com/language_examples_video_map.html

3. Description • Rosetta Stone Foundation, a nonprofit entity of Rosetta Stone • Preserves and revitalizes endangered languages • Technology is highly interactive and teaches by immersion …language meaning is not lost

4. Mission • …to promote language fluency in endangered language communities through appropriate and sustainable technologies • and…to enable intercultural communication and understanding through innovative and effective language-learning solutions where they are needed most

5. Innovation & Differentiation • Technology = “the missing link” • Not just documenting endangered languages! STOPPING & REVITALIZING the spread of endangerment by creating teaching software! • Collaborative Relationships = building on what has already been done!

6. Strategic Alliances • When two organizations go after the same objective, helping each one to achieve their own goals

7. Collaboration Possibilities Foundation For Endangered Languages (GB) The Foundation for Endangered Languages exists to support, enable and assist the documentation, protection and promotion of endangered languages. In order to do this, it aims: • To raise awareness of endangered languages, both inside and outside the communities where they are spoken, through all channels and media; • To support the use of endangered languages in all contexts: at home, in education, in the media, and in social, cultural and economic life; • To monitor linguistic policies and practices, and to seek to influence the appropriate authorities where necessary; • To support the documentation of endangered languages, by offering financial assistance, training, or facilities for the publication of results; • To collect together and make available information of use in the preservation of endangered languages; • To disseminate information on all of the above activities as widely as possible.

8. Collaboration Possibilities The Hans Rausing Endangered Languages Project (London) HRELP aims to document endangered languages, train language documenters, preserve and disseminate documentation materials, and support endangered languages. It operates from a donation of £20 million from Arcadia. HRELP is based at SOAS, University of London, and consists of three programmes: • The Documentation Programme (ELDP) is providing £15 million in research grants to document the world's most endangered languages • The Academic Programme (ELAP) Teaches postgraduate courses in language documentation and description, and field linguistics. It also hosts post-doctoral fellows, researchers, visitors, and conducts seminars and training • The Archiving Programme (ELAR) is preserving and disseminating endangered language documentation, developing resources, and conducting training in documentation and archiving

9. RSF Team • Organization Governance – 2-3 members of RS board, other 5 members newly selected • The Inside Team on payroll should be extremely committed to the mission, and the sustainability of it’s success. Diverse set of backgrounds, lead by someone with Non-Profit leadership experience

10. What is the Reward for the Funders? • Tax incentives • Pride of being part of something extremely different than many other non-profits • Possibility of language revitalization trips to work with groups using technology • Possibility of high profile events and name recognition (ie. Smithsonian, etc)

11. Strengths, Weaknesses, Opportunities, Strategy and Potential Threats • Unique relationship with software developer • 2nd Order Innovation: Technology + Research • Collaborative Relationships with other non-profit entities: SIL International and the Endangered Language Fund • Soft Advertising & Brand Recognition

12. Strengths, Weaknesses, Opportunities, Strategy and Potential Threats • Why is this important to investors? • Collaborative Innovation = Reaching across small network line • Pharmaceuticals, Bio-energy • Shakespeare Reference

13. Competitive/Collaborative Advantage • RS already demonstrates competency in language preservation with its ELP • Assessing the environment through a competitive lens (Porter’s 5 forces) isn’t enough anymore • Every company needs to watch the full stakeholder playing field carefully (Esty& Winston)

14. Collaborative Innovation • Language extinction is happening at an exponential rate • Preserving one or two languages at a time will have limited influence on the contextual environment in which RSF operates (Smith) • Assess stakeholders for collaborative partnerships • Serve as a network agent by connecting stakeholders interdependent on one another as they co-produce social change

15. “Value is created with the experiential learning that comes from examining value chains and developing strategy within a collaborative network of external thought leaders.” Chris Laszlo, 2008

16. Target Market/Priorities Language Types: Type I At risk w/ several million speakers Type II Seriously endangered w/ several thousand speakers Type III Nearly extinct w/ less than 100 speakers Where can RSF be most effective?

17. Target Market/Priorities • RSF’s inclination to focus on mid-range communities is wise • Trying to be all things to all people is a classic mistake that many businesses make • Start on a small niche when entering the market

18. Target Market/Priorities • Each new success will build the brand • Collins says, “…persistent efforts will lead to unstoppable momentum where potential supporters not only believe in the mission, but also in the capacity to deliver on the mission.”

19. Cost Allocations • “Take stock of the organizational capacity” (Oster, 2004) • Including: • Resources • Staff • Management • Outsourced Resources • Profit vs. Mission • Timeline & Measures of Success

20. Economic Profitability and Sustainability • Little contribution from communities • “reframe the mission to reach across small network” (Smith, 2009) • Language Learners = Sustainability

21. Stewardship Principles Balance • Board composition • Indigenous language w/ need for intercultural communication Interdependence • RS & RSF relationship • RSF & Donors

22. Stewardship Principles Regeneration • Preservation of language and culture • Donors help protect their own livelihood Diversity • Multilingualism instead of monoculture • Diverse funding base • Board composition

23. Stewardship Principles Succession • Young people care about their heritage and pass it on! BIRDS

24. Sustainable Value Chain • Business Context: Broaden spectrum to include intercultural communication technology and programs. In conjunction with language learning software. • Brand/Culture: Develop software that is easy to use, and easy to teach with so that it will create a culture of “Learning Leaders” within communities. Build on brand already established by RS to be the best in big and small communities! • Market: Look and Listen! Who needs the product the most? Who will be most likely to use it to help learn and teach, rather than just document and learn? • Product: Creating a Product that is good for both Rosetta Stone AND the community members (especially the younger generation). Base products not only on what has always been sufficient for RS customers – but also for those who may not be used to technology. • Process: Reducing “process costs” when developing software. Working to develop software in the most efficient way so that exorbitant costs aren’t transferred to communities or foundation contributors. • Risk: Adhering to IRS rules for allocating costs of services or resources from Rosetta Stone to the Foundation. Adhering to appropriate IRS reporting measures.

25. First Order Innovations First Order Already Completed • Growing the “parent company” Rosetta Stone to 800+ employees and offices in 6 areas across the globe: BRAND RECOGNITION AND GROWING SIZE OF COMPANY • Launching three endangered language programs from 2006-2009: CREATING A FOUNDATION & GROWING PROGRAM FROM 0 TO 3 • Hiring 3 FTE’s to begin the process of starting the non-profit: INCREASED QUANTITY First Order to Complete • Couple with more endangered language communities to create software for other languages: QUANTITIES • Add more staff to the non-profit / couple with additional Rosetta Stone staff to create products in a more timely fashion: SPEED

26. Second Order Innovations Second Order Already Completed • Launching 2 grant programs in 2007: WORKING WITH ALTERNATIVE SOURCES OF FUNDING / MULTI-DISCIPLINARY • Thinking to use the parent software engineering company to create programs (and serve the mission of the non-profit): MERGING THE EFFORTS OF TWO SEPARATE ENTITIES / CROSS FUNCTIONAL • Creating a dual mission statement: promote language fluency of endangered language communities through use of appropriate and sustainable technologies AND enable intercultural communication and understanding through innovative and effective language-learning solutions: POSSIBLY CREATING NEW ALLIANCES WITH PEACEBUILDERS ACROSS THE GLOBE.

27. Second Order Innovations Second Order to Complete • Is there new technology that RSF can consider when bringing language teaching technology to those in areas of endangered language? Do they use the same computers? Are these computers reliable? Can we play software on smaller devices? What do these communities feel is the best way to learn? We need to “go out, to look, to ask, to listen” (Drucker, 1985, p135). • Apply for more grants with foundations with similar mission statements (without language software piece). Could the competitors become allies? Could the source of innovation be a process need, redesigning the processes of other organizations (who are currently just recording the language) by supplying the missing link (the technology to teach the languages rather than let them go extinct) (Drucker, 1985, p69)?: QUANTITIES/SIZE • Creating partnerships with communities and/or other organizations to make this cost-neutral for RSF: NEW ALLIANCES

28. References • Bittinger, M. (2009, July 16). Rosetta Stone Foundation, EMU MBA 658. Harrisonburg, VA. • Collins, J. (2005). Good to great and the social sectors. Boulder, CO • Drucker, P. F. (1985). Innovation and Entrepreneurship. New York, NY: Harper and Row. • Esty, D., Winston, A. (2009). Green to Gold: How Smart companies use environmental strategy to innovate, create value, and build competitive advantage. Hoboken: John Wiley. • Laszlo, C. (2008). Sustainable Value, how the world’s leading companies are doing well by doing good. Stanford, CA: Stanford University Press. • Oster, S. M., Massarsky, C., W., Beinhacker, S. L. (2004). Generating and Sustaining Nonprofit Earned Income. San Francisco, CA: Jossey-Bass. • Smith, Anthony E. (2009). Stewardship Design Principals. Harrisonburg: Virginia: Eastern Mennonite University. • Smith, Anthony. (2009). Shakespeare and the Spirit of Innovation. EMU MBA 658. Harrisonburg, VA. • http://www.ogmios.org/manifesto.htm