Business Model for a Think Tank

Clay M. Christensen and others suggest that a business models is made

up of four elements:
A customer value proposition
A profit formula
Key resources
Key processes
With some modification, these elements or criteria can be instructive for
think tank leaders in evaluating their organisational systems.
A value proposition:
Outputs: Research papers, Articles and interviews, Policy
dialogue, Training manuals, Convening capacity
Services: Workshop and conference organisation
services, Research consultancies, Educational services, Project
management:
A funding formula:
Revenue: Individual or organisational donors (local,
international, private or public sector donors), Membership
fees, Speaker fees, Event fees (for example, annual
conference; topic specific events), Government, local or
international consultancy
contracts, Subscriptions, Subsidies, Other research funding
Costs: Staff, Infrastructure, Travel, Administration
Key resources:
People: Researchers, Policy
experts, Administrators, Communicators, Management, Board
Research resources: Publications, Libraries, Internet, Data
collection and analysis tools
Equipment: Phones, Computers, Office furniture, Office space
Collaborations: Local/international, Funding
partnerships, Intellectual or knowledge production
partnerships
Brand: Logo, Materials, Reputation and goodwill
Key processes:
Research: Methodologies, Communication of
research, Research management, Proposal writing and costing
Human resource: Employment policies, Travel, Performance
monitoring and evaluation, Reward systems
Communication: Radio, television, print media, Website and
social media, Publications (books, reports,
brochures), Marketing

Find an approach to start with

Some think tanks want to start big. They seek lots of funds to plan and
deliver huge research projects that they hope will earn them top marks
and credentials. This is one approach but the sources of funding for it are
quickly drying up and, in any case, few funders re willing to wait months
for the first outputs. The problem is that this usually involves going away
with lots of money for 6 months to a year to deliver a think book or report
that may be worth every penny but isnt enough to make a difference or
draw anybodys attention. Your think tanks approach should try to get it
into the spotlight and stay there for a very long time.
The idea is simple. To begin with, the think tank should establish a way of
working that can be quickly identifiable by its audiences. One way of
doing this is to develop one or more (depending on the size) approaches
to its work that deliver outputs fast and frequently -and of an increasingly
better quality:
1. A package of outputs: The first thing any new think tank can do
is define a package of outputs that can be produced and delivered
on every one of the policy issues it chooses to study. For instance. A
new think tank can repeat the same approach (one after the other)
for all the topics it wishes to address (every repetition is an
opportunity to learn about each and get better that them) by
producing:
1. First a literature review, plus blog posts for each key paper or
study reviewed
2. Then publishing a background document, plus a blog post
3. Followed by 3 policy briefs, plus three blog posts
4. Then launching the briefs in an events series (one for each
brief), plus accompanying blogs, videos, and media coverage.
2. Large synthesis and annual reports: There is nothing like a big
report to draw the attention of lots of very important people. Putting
together large systematic reviews on key policy questions and/or
producing a high profile annual report on the state of a sector or
challenge can be a great way of launching a think tanks. As in the
case of the package of outputs approach, these reports can (must)
be accompanied by a package of other outputs.
3. Initiatives: The Center for Global Development has written about
this approach that remains one of the most interesting ones; but
may demand more management competence than you may think.
In my view, new think tanks should avoid, at all costs, starting by working
on one large very academic research project that will demand that they
go away for months or years before they can deliver their first output.

People, people, people

There are different staffing models for think tanks. Especially when it
comes to research, a new think tank may want to consider:

Working with associates: they are probably employed

somewhere else and therefore bring their credibility and expertise to
the new organisation, plus, they wont cost the think tank much (or
anything). It may be harder to plan and coordinate things with them,
however.

Combining a few senior researchers (associates, for

instance) with young (and relatively inexpensive) research
assistants: some of the best work in think tanks is done by young
researchers keen to make a name for themselves after university
and work with well known policy entrepreneurs in think tanks. Young
research assistants may not stay long but they can be relied on to
work hard. Furthermore, they will be more likely to know how to take
full advantage of all that digital tools have to offer.

Work in partnership: many think tanks and academic research

centres are not very good at (or do not want to) communicating
their research. You may be able to offer them a service by taking
care of this while they focus on their research. It will be hard to
develop a cohesive agenda for your think tank but it should
guarantee good content and networks.

Combine consultancy with thinktankery: some think tanks try

to combine income generating research consultancy with think tank
type communication and outreach work. This works most of the time
but it can be challenging to maintain the right balance for the
organisation. Under this model, the think tank could attract
consultants interesting in playing a more public role in society by
allowing them to raise their own income in exchange for an
overhead charge that pays for central costs.

Whatever the approach, a new think tank should try to keep their
initial staffing costs low and flexible. You should not be forced to close
because you cannot pay salaries. Subcontracts, partnerships, short-term
consultancy arrangements, project specific contracts, and other
contractual arrangements are preferred to full-employment-cost contracts.

Get started before you need to seek big funding

If necessary, you should not wait until you have funds to start. By taking
advantage of a light and flexible governance structure and a high visibility
approach (like the package of outputs one) you should be able to start
with at least some outputs.

Publish while you read: If you and your partners are interested in
a topic you are likely to read about it. Every time you read a paper
or book or article, post a short review of it on the new think tanks
blog/website. Each post can be simply tagged under your think
tanks key policy topics; e.g. Education, Health, etc. After a while,
the site will contain an important repository of content on these
issues and you may be able to put together a background post that
summarises or draws from these previous posts from the literature.
You can add an opinion post as well. These are all outputs that
feel more like the outputs of think tanks.

Publish other peoples ideas if you agree with them: Using

content produced by your board members, associates, and even
third parties is a perfectly valid way of producing content. Think
tanks often miss the opportunity to be present in policy debates
because they want to wait until they have something to say.
Windows of opportunity can open at any time and if a think tank is
not ready to say something it will miss it altogether. There is nothing
wrong with saying: As so and so said, the best solution is to .

Produce events and create new content: Producing an

event series can be a very cost effective way of drawing attention to
your organisation and producing new content.
There are many free venues in town: universities often lend
empty rooms to their alumni, staff or students (your
researchers may be university staff or still be students). You
could co-organise with another think tank (if you do all the
work they may be happy to lend you the venue). Even coffee
shops, restaurants and other businesses may allow you to use
their venues in exchange for paying customers. Be creative.
Nobody expects a lavish hotel or conference venue for an
event to talk about policy and research.
Events, also, do not have to be too elaborate and full of pomp.
Three chairs for a small panel and room for 25-50 people
should be enough. There is no need to offer expensive food or
fancy drinks. Attendants, if they go to an event, go for the
ideas, not for the food.
Keep them simple and to the point (your point -i.e. as made in
your reports and briefs): make sure the speakers are briefed,
that they only talk a few minutes, and that there is always
time for the public to engage.

Use the events as a way of producing new content: 1)

webstream and record the event (and upload right away) -do
not worry too much about film quality, use your phone or the
webcam on your computer; 2) live tweet before, during and
after the event, 3) record audio and upload as a podcast; 3)
upload any presentations or documents shared; 4) write an
event report/blog post; 5) interview the panelists for 1-2
minute films (on your phone, it is enough); 6) interview
members of the audience; 7) register those in attendance and
add to your data-base; etc. You can then publish all of this
over the course of weeks if not months while you and your
researchers are busy tackling some other policy issue.

Use research you have done before: New think tanks sometimes
say that they have little need for a website because they have little
to publish; or that starting with an event is not possible because
they do not have any research to present. This is not exactly true.
Think tanks are all about their people and it is unlikely that the
people making up a new think tank (however young they are) do not
have any previous work and ideas -published or not. All of this can
and should be used by the new think tank. You do not have to take
credit for it (say, if a paper was written by the director or a
researcher while working for another think tank do not delete their
logo) but can certainly republish it and add it to the list of studies
written by the think tanks staff. An event, too, can be organised to
broadcast the guests work via the new think tanks YouTube
channel or website. You are not stealing; you are helping to give
old researcher a longer shelf life. And this is great.

None of these things cost too much (in fact, there are free digital tools for
every one of these tasks). They can be done on the side to other work
and do not demand great skills. But they will go a long way in attracting
the attention of funders when you do go looking for funds. And more
importantly, your think tanks URL will not lead to a under construction
site that will disqualify you from the start.

Find your most appropriate governance arrangement

There are different governance arrangements available for think tanks.
Coming up with one that works for everyone is probably harder than
finding a way to measure a think tanks influence. Still, all arrangements, I
think, should consider:

A board or governing body that is independent from the

management of the think tank and that is ultimately responsible for
its long term vision.
A competent executive direction including a competent
manager at its centre.
A tier of senior managers or researchers that is responsible
for oversight of the three main aspects of any think tanks work:
research, communications, and management.
How will researchers be associated to the think tank: permanent
staff, associates, etc?

To keep costs low, I would start with a small group of senior research
associates who bring their own expertise and work (form other
organisations, for example) and who may form the basis of a senior
management team, each leading on a policy issue, for instance. They do
not have to be full time members of staff and therefore would not be a
cost on the new think tank. I would include a senior (in terms of
responsibility at least) communications manager right from the start. Do
not be fooled by the idea that you can wait to deal with communications
later on.