It seems that the longer a technology hangs around on the market, the cheaper it gets. The reason, says Robert Searle in this talk sponsored by the Stanford Social Innovation Review, is because as companies do things over and over—like making computers—they get better and better at them. Learning how to produce higher-quality items more effectively leads to lower costs both for businesses and consumers.
This "experience curve" happens not just for companies, but also for nonprofits, argues Searle, who explains how such organizations can get more "outcome" for the same amount of money. He suggests key outcome metrics funders and nonprofits should focus on, and considers the implications of the experience curve for grantmakers and organizations.
Robert Searle is a partner in the Boston office of the Bridgespan Group, a consultancy to nonprofits. He leads Bridgespan’s efforts on environmental issues, including work on climate change, ocean ecosystem health, and land conservation strategies. Prior to Bridgespan, he worked at the consulting firm AT Kearney, where he served clients in the pharmaceutical, transportation, and retail industries. He also was a manager of business process redesign at Staples. Searle has held staff positions at social service and arts organizations, including Ronald McDonald House and the Greater Boston Youth Symphony, as well.
Searle is the author of several articles and case studies, including “More Bang for the Buck,” published in the Stanford Social Innovation Review (Spring 2008), and “Moving Eco-certification Mainstream.” He holds a bachelor’s degree in music performance from Boston University, where he graduated magna cum laude, and an MBA from Tuck School of Business at Dartmouth, where he was an Edward Tuck Scholar.
Resources
This free podcast is from our Stanford Social Innovation Review series.
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