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Microfinancing
I’m having a great time completing preparation for my workshop at the National Performing Arts Convention in Denver next week.
As a "teaser" for the workshop, here's an idea that comes from Jane Hirshberg, Managing Director and CEO of the Liz Lerman Dance Exchange. She's one of the most truly innovative culture workers I know.
Jane has embedded a process aimed to help achieve two current company priorities. The first, to increase earned income. The second, to develop new work by younger company members.
It's a microfinancing scheme. As such, it essentially provides small amounts of seed money to entrepreneurs.
In this case, the entrepreneurs are members of the Dance Exchange. Anyone can propose a project to the company, requesting resources in time, cash, or space. For example, a dancer who is also a hiker may start up classes in speed hiking.
Ideally, that dancer's enterprise becomes money-making. She then repays the amount of the loan and splits the ongoing profits with the company 50/50. The dancer's profits are not paid in cash; rather, they are reserved as "funding" (such as the costs of studio space or dancers) for artistic projects that the dancer wants to initiate in the future.
There are many smart things about Jane's innovation. Most of all, it demonstrates two basic principles of innovation:
- innovation only makes sense in service of your mission and strategic priorities
- fresh ideas often come from outside your own domain