People at the bottom of the pyramid represent $5 trillion in purchasing power. And international NGOs understand that market. Karl Hofmann, President and CEO of PSI, says that by working directly with local communities to improve health outcomes, his organization is reaching those target customers.
Shared value creation requires thoughtful partnerships between businesses and nonprofits. For that reason it’s an asset at PSI, which has been working with the private sector for 45 years: "Shared value is a priority for PSI because it's an opportunity to leverage unbelievable strength," says Hofmann.
In the video below, Hofmann discusses the immense opportunity in nonprofit-corporate partnerships to reach customers at the bottom of the pyramid and improve millions of lives. His notable caveat: Shared value must be treated as a “grown-up investment.” Partners should be prepared to fail fast and agree on how to measure success. “If you want a hug, go somewhere else,” he says. “If you want measurable impact, then figure out how to partner with us.”
Hofmann joined the CEOs of Eli Lilly and Discovery in the keynote, Building Healthy Shared Value Strategies at the Enterprise Level, at the 2015 Shared Value Leadership Summit: View Event Recap.