ILSS Conversation
Repurposing Livelihoods, Transforming Lives
In a recent #ILSSOnline session on ‘Leadership Lessons,’ ILSS Founder-CEO, Anu Prasad, facilitated a thought provoking discussion with Jayant Rastogi, Global CEO, Magic Bus India Foundation, and Arun Nalavadi, Executive Director – Sustainability and Livelihoods at Magic Bus India Foundation. The discussion delved into Magic Bus’ efforts to empower young people from underserved communities and uplift them, providing key insights into their strategies for navigating challenges, building sustainable models, and scaling impact. Here are some edited excerpts from the enlightening conversation.
Anu: Tell us about the two main programs that Magic Bus runs.
Jayant: We have two main programs under the ‘Childhood to Livelihood’ initiative. The first is the Adolescent Programme which helps adolescents complete their education and gain skills for employment, breaking the cycle of poverty. We focus on adolescents, especially girls, who often drop out due to their distance from schools and lack of safe spaces. Our goal is to help them complete school. The second, the Livelihood Programme, assists youth in entering the workforce by enhancing their life and employability skills and connecting them to sustainable job opportunities. We operate the programs across 23 states and union territories and have empowered the lives of nearly 34 lakh young people over the last 25 years.
Anu: Let’s discuss the four Ps that guide Magic Bus’ journey. How did you achieve excellence at scale?
Jayant: Let’s start looking at the four Ps step by step. First is ‘People’; we need aligned and passionate people. The second P is about the ‘Process’. You should be able to measure your internal impact. You can only scale up when you start working on your backend systems like HR, finance, communication, technology, etc. The third P is ‘Program’ and impact. The last P is your ‘Partners’. They are the fuel essential for building a diversified funding portfolio. As we scaled, our overhead costs reduced, which is now amongst the lowest in the sector. Technology has been the key. To improve program efficiency, we introduced technology for accurate, timely data collection, including GPS tracking with time-stamped photos. Despite initial
Anu: What is ‘Vision 2030’ for Magic Bus?
Jayant: I believe in the country’s vision of a $30 trillion GDP by 2047. We aim to contribute to it by building a collaborative ecosystem. Hiring new talent is our biggest challenge as we expand. There is a shortage of skilled individuals in the sector, especially ones with skill sets that align with Magic Bus’ needs and aspirations. We are developing our own talent through learning and development programs. This provides a great upskilling opportunity for our employees and helps bridge the talent gap in the sector. We are also working on bringing about a systemic change for adolescents. We are collaborating with Bain & Company to create a white paper, which will be launched soon. Our first brainstorming session in Mumbai included 31 NGOs, founders, and senior leaders. Overall, these initiatives are exciting and allow us to contribute to our country and make a positive impact in our own small way.
Anu: Tell us about the ‘fourth P’ and some of the challenging and rewarding partnerships you have built.
Arun: Collaboration is key for us, as we build ‘Partnerships’ with donors, valuing their involvement in our programs. 95% of our partners, including major corporates, have been with us for over five years, investing significant amounts due to our reliability and collaborative nature. Employee volunteering is crucial, with support from companies like Accenture and Fidelity. Despite challenges in meeting reporting standards, we maintain close relationships and improve through feedback.
Jayant: We collaborate with 5000 employers, including Cognizant, who provide job opportunities for the youth. Strategic partner organisations help onboard LGBTQIA+ employees and knowledge partners like Bain and Accenture support our work. Government partnerships ensure ecosystem integration, contributing to our success.
Anu: Technology can be overwhelming and costly. How did you innovate and develop it from the beginning?
Jayant: We began small due to limited funds, initially implementing an internal system to monitor ground activities. Despite employee scepticism, we laid emphasis on trust and accountability. Over time, we adopted ERP and HRMS to streamline processes. As we scaled and gained credibility, our funding for technology increased, exemplified by the $5 million investment in our FutureX platform. Our tech expertise has made us a preferred partner for companies like AWS and Microsoft. Now, 95% of our reports are automated. We haven’t increased manpower; it’s efficient, and funders are happy. Our partners, Bain, McKinsey, Sattva, and Dasra are always helping us out.
Anu: Could you share your experience working with your board? A strong board can make a significant impact on an organisation.
Jayant: Our board has remained mostly unchanged since 2016. The board members have diverse expertise and are leveraged for guidance and support on matters such as finance, audits, compliance and communications. Over time, the board has witnessed Magic Bus’ success and developed trust and confidence in us. Initially, there were challenges in meeting the board’s expectations of being strategic while also being involved in operational matters. However, we prioritised the need to be hands-on, and the board ultimately supported this approach.
With Section 135 of the Companies Act 2013, every month 500 reports are being generated for these funders. We can’t expand our team at the same rate. So, we have started incorporating AI.
Audience Question: What advice would you give to young leaders and entrepreneurs who want to make a difference in the social sector?
Jayant: My biggest learnings can be summarised into – ‘don’t overthink’ and ‘don’t over analyse’. Also when you are young, you can afford to take more risks. As you grow older, your responsibilities and dependents increase, and you owe it to them not to deprive them of the lifestyle that you’ve promised them. To make a difference, rolling up your sleeves is essential. For example, my driver used to frequently fall ill and claim to be given glucose, but it turned out he was actually receiving steroids. This inspired me to take action and start my own healthcare initiative. However, despite my noble intentions, it did not work out.
Audience Question: Why is leadership capacity building crucial for the sustainability and growth of organisations in the impact sector?
Arun: The challenge is that the sector often struggles to attract and retain talents, unlike corporations that have more resources and attractive reward systems. At Magic Bus, with 3000 employees focused on livelihood and adolescent issues, effective leadership is crucial. Strong leaders are essential for program efficiency, providing solutions and support. Despite funding challenges, Magic Bus established a learning and development cell to foster leadership growth. In conclusion, leadership is as important in the social sector as it is in the corporate sector. Social sector organisations should prioritise leadership development to ensure the efficiency and effectiveness of their programs, even with limited resources.
Audience Question: How do you secure funding for capacity building?
Arun: Fundraising for organisational capacity building can be a challenge as donors tend to prioritise program funding over building the organisation itself. To overcome this, it is crucial to diversify funding sources, including unrestricted funding from retail and institutional donors. Scaling up can attract institutional donors who provide substantial funds to develop human resources and institutionalise the organisation. Organisations in the same sector should pay attention to talent development and utilise resources like pro bono support and employee volunteering to build capacity. Investing funds when available is also recommended. Building skills in the technical domain and leadership will bring long-term benefits to organisations.
Audience Question: Why do we need good leaders?
Jayant: I have seen poor teams blossom under good leadership. The challenge is that the sector often struggles to attract and retain talents, unlike corporations that have more resources and attractive reward systems. We implemented two initiatives to improve performance. The first was a performance leadership program aimed at addressing organisational issues. We selected the top 40 individuals and provided them with resources to help solve any issues. This program allowed them to gain a deeper understanding of the organisation’s challenges and encouraged them to plan for its future. We also introduced the CEO Circle, a platform that holds individuals accountable and promotes a culture of meritocracy. To recognise innovation, we established an innovation award open to all employees, regardless of their position. We believe that even small improvements can contribute to innovation and can be nominated at an individual or process level. Ultimately, our goal is to transform the behaviour and mindset of the entire organisation.
To know more about Magic
Bus visit www.magicbus.org
(The interview is edited by Aashi Sengar.)