Nudging systemic change —A new era of social impact in India
In a world grappling with deep-rooted and complex social issues —poverty, inequality, and gender disparity— where systemic challenges require urgent solutions, a new breed of leaders is rising to bring scalable change. Trading the corporate world for the social good, they're leveraging their entrepreneurial spirit, problem-solving skills, and strategic thinking to address India's most pressing challenges, from poverty and inequality to education and healthcare.
The stakes couldn't be higher. As India positions itself as a global economic powerhouse, it also faces daunting challenges. While its youth bulge promises a demographic dividend, it also presents a daunting challenge: how to harness this potential to address the nation's pressing issues of poverty, inequality, and unemployment. Over 120 million young Indians will enter the workforce in the next decade, seeking not just jobs but meaningful opportunities. Meanwhile, millions of farmers struggle to eke out a living, and millions more remain trapped in the vicious cycle of poverty. These are monumental challenges that demand bold solutions and innovative thinking.
It's not just about policy; it's about people. Individuals who can bridge the gap between talent, technology, and capital to drive change.
Atul Satija left a flourishing career at InMobi to tackle poverty alleviation and started The/Nudge Institute in 2014. His story resonates with a growing cohort of India's top talent who are redirecting their expertise toward social good.
Krishna Raghavan, an HR leader with 25 years in corporate strategy, recently joined The/Nudge. Raghavan is particularly drawn to the organisation's focus on creating "resilient livelihoods," a strategy that empowers individuals to lift themselves out of poverty.
This shift to the social sector clearly shows more than a change in career paths. As Satija aptly puts it, "The migration of successful entrepreneurs and business leaders brings more than just skill transfer—it represents a fundamental reimagining of how we approach systemic change."
However, the journey is not without hurdles. It demands patience, a long-term perspective, and a willingness to navigate complex systems. But it also offers the chance to innovate, experiment, and drive real change. And these next-gen organisations are already creating impacts.
In a candid conversation, Atul and Krishna share the nuances of this evolution—exploring how their corporate crucible prepared them for social impact, the interplay between scale and sensitivity, and the emerging frameworks that could reshape India's social sector landscape.
Here are the edited excerpts.
Mastufa: How has the social sector in India evolved over the years –from addressing immediate needs to tackling systemic issues?
Atul: The social sector in India has a rich history, rooted in acts of kindness and community service. Early on, nonprofits focused on addressing immediate needs, such as providing food and shelter. However, as the sector matured, a new wave of organisations emerged with the ambition to tackle systemic issues at scale. Organisations like Akshaya Patra and Pratham exemplify this shift, leveraging systems, processes, and technology to reach millions.
A significant change has also occurred in the talent pool. Today, we see a growing number of individuals, particularly from the corporate world, drawn to the social sector. The pandemic further accelerated this trend, inspiring many to contribute their skills and expertise to social causes.
This influx of talent from diverse backgrounds, including engineers, technologists, and product managers, is reshaping the sector. It's enabling organisations to adopt innovative approaches and achieve greater impact.
However, challenges persist. Nonprofits must evolve their organisational structures and cultures to attract and retain top talent. Addressing the significant pay disparity between the for-profit and nonprofit sectors is also crucial.
Despite these hurdles, the future of the social sector in India is bright. With increasing philanthropic support and a growing pool of talented individuals, we can anticipate remarkable advancements in the coming days.
Mastufa: How are social impact organisations different from traditional NGOs, philanthropic foundations, and corporate social responsibility initiatives?
Atul: First of all, the space we operate in isn't new. In India, we witnessed the first wave of nonprofit action, where people began to think about scaling nonprofit efforts. Initially, many focused on smaller initiatives, such as food banks or blood donation drives. However, as society evolved, we saw the emergence of larger nonprofits aiming to solve significant issues—like cataract surgeries or poverty alleviation.
For example, organisations like Akshaya Patra were founded in the early 2000s, while others like Pratham emerged in the 1980s. These nonprofits aspired to scale their operations to have a more substantial impact.
From a talent perspective, the nonprofit sector is evolving. Many individuals with diverse backgrounds are increasingly motivated to contribute their skills to social causes, especially following the COVID-19 pandemic. We’ve seen an influx of professionals wanting to lend their expertise, whether it’s an engineer wanting to teach or a coder developing applications for nonprofits.
This shift is creating a new breed of social impact organisations. They are not just traditional nonprofits; they’re incorporating systems thinking, technology, and innovative processes. They attract a different kind of talent, which is essential for their mission.
Moreover, the way we approach funding has changed. Unlike traditional nonprofits, modern organisations seek unrestricted capital and innovative funding models. They aim to scale effectively, leveraging technology to solve social issues, which significantly distinguishes them from older models.
In terms of organisational frameworks, we've supported around 200 social enterprises through our incubator and accelerator programmes over the past five to six years. Each cohort offers a chance to support more organisations, but we've found that the applications we receive often exceed our capacity.
The entrepreneurial spirit among top talent in the social sector is rising with individuals contributing their skills to create meaningful change.
Mastufa: Do you notice a pattern in the mindset of people who are drawn to the social sector and the philanthropists who support it?
Atul: Absolutely. We often see a recurring pattern, especially among a specific subset of individuals. For instance, successful entrepreneurs who have built businesses based on risk-taking, problem-solving, and a fast-paced culture often gravitate towards the social sector. They find alignment with our approach to problem-solving and scaling solutions.
Similarly, senior leaders from corporate organisations who are seeking a second career often possess a similar mindset. They are accustomed to taking risks, thinking big, and approaching challenges with optimism. This shared mindset fosters trust and collaboration between philanthropists and social impact organisations.
While this trend is encouraging, it's important to note that not everyone fits this mold. A diverse range of individuals and organisations contribute to the social sector, each with their unique perspectives and approaches.
Mastufa: How has your perspective on the social sector evolved over the past decade, particularly since joining The/Nudge Institute five years ago?
Atul: One of my earliest realisations was the significant constraint on resources in the social sector compared to the corporate world. This led us to create a non-profit incubator and accelerator, recognising the importance of nurturing talent and capital. And the pandemic solidified this understanding, highlighting the critical role of talent in driving social impact.
Another key insight was the divergence in economic models. In the corporate world, a company can scale by building a good product and attracting paying customers. However, in the social sector, the economic model is often inverted. Donors provide funds, but there are constraints on how those funds can be utilised. This can hinder scaling and long-term sustainability.
The true impact of a social impact organisation may not always be directly measurable through traditional metrics. It often lies in influencing systems, policies, and behaviours. By working with governments, businesses, and other stakeholders, we can create a ripple effect that leads to widespread positive change.
For example, through our work with social organisations, we've collectively reached millions of people. This impact is amplified when governments and other institutions adopt our approaches and scale them up.
Mastufa: Krishna, you recently joined Nudge. What are your initial impressions of the social sector?
Krishna: While the core principles of problem-solving and systems thinking are universal, the social sector presents unique challenges and opportunities.
One significant difference is the complexity of the problems we address. Social issues are often interconnected, requiring a holistic approach that considers multiple factors. This necessitates long-term, sustainable solutions.
Securing adequate funding and attracting top talent are also critical challenges. While these are important for any organisation, the social sector often faces unique constraints. However, the passion and dedication of individuals working in this sector are truly inspiring.
I'm optimistic about the future of the social sector. By fostering collaboration, innovation, and data-driven decision-making, we can create a more equitable and sustainable future.
Mastufa: Let's discuss your programme development process. How do you identify and prioritise potential initiatives, especially considering the complex landscape of social issues in India?
Atul: We prioritise programmes that are both impactful and scalable. We focus on interventions that can be replicated and adapted to different contexts.
One of our key strategies is to identify promising pilot projects and scale them up. We work with organisations to refine their models, improve their impact, and expand their reach. For example, our India Plus Five initiative aims to improve literacy rates by providing additional years of education to underprivileged children.
We also recognise the importance of addressing the underlying systemic issues that contribute to social problems. This often involves engaging with policymakers, businesses, and other stakeholders to create enabling environments. Our work in the area of political economy aims to influence policy decisions and create a more conducive ecosystem for social change.
Ultimately, our goal is to create a virtuous cycle where innovation, collaboration, and impact reinforce each other. By supporting promising initiatives, investing in talent, and advocating for systemic change, we can drive significant progress in addressing India's most pressing social challenges.
Mastufa: Could you share your experiences in partnering with government agencies and the challenges you've encountered?
Atul: Our interactions with the government have been a mixed bag. We've been impressed by the talent pool and the genuine desire for positive change. However, bureaucratic hurdles and frequent transfers can hinder the implementation of long-term solutions.
We've learned that successful partnerships require a deep understanding of the government's priorities and constraints. It's essential to be flexible and adaptable and to find ways to work within the system.
We've drawn inspiration from successful public-private partnerships, like the Unified Payments Interface (UPI). This initiative demonstrates the power of collaboration between the government, private sector, and technology providers.
Mastufa: What are some of your proudest accomplishments at The/Nudge Institute, so far?
Atul: One of our greatest achievements is the impact we've had on the lives of millions of people. Over the past nine years, we've supported over 200 organisations, which collectively reach millions of individuals. It's incredibly fulfilling to see the positive changes these organizations are driving in communities across India.
Another source of pride is the strong culture we've built at The/Nudge Institute. We've fostered a team of highly talented and passionate individuals who are committed to making a difference. Our focus on continuous learning, innovation, and impact has enabled us to attract and retain top talent.
We're also proud of our partnerships with government agencies, donors, and other stakeholders. These collaborations have been instrumental in scaling our impact and achieving systemic change.
Ultimately, our success is about the power of human ingenuity and the collective will to make a positive impact.
Mastufa: How do your programmes differ from traditional corporate objectives, and what sets the culture of The/Nudge Institute apart from a typical corporate environment?
Krishna: The social sector, especially at The/Nudge Institute, operates on a fundamentally different set of principles. While profit is important, the primary focus is on creating positive social impact. This requires a long-term perspective, a deep understanding of systemic issues, and a willingness to take risks.
The culture at The/Nudge Institute is characterised by a strong sense of purpose, collaboration, and innovation. We encourage a growth mindset and empower our team members to take ownership of their work. We also prioritise work-life balance and promote a supportive and inclusive environment.
Atul: The increasing awareness of social and environmental issues is driving a significant shift in corporate behaviour. Companies are recognising the importance of sustainable practices and social responsibility. This is evident in the rise of corporate social responsibility (CSR) initiatives and the growing emphasis on ESG (Environmental, Social, and Governance) factors.
However, there's still a long way to go. We need to move beyond tokenistic CSR efforts and embrace a more integrated approach to business. This involves aligning business strategies with social and environmental goals and building strong partnerships with civil society organisations.
One of the key challenges is to ensure that social impact initiatives are not just a PR exercise but are deeply embedded in the core business strategy. By measuring and reporting on social and environmental impact, companies can hold themselves accountable and drive meaningful change.
In the coming year, we aim to support 250,000 families and 100 social entrepreneurs. We're also committed to building strong careers for our team members. By creating a nurturing and inspiring work environment, we hope to attract and retain top talent who are passionate about social impact.