ecorl developing-and-measuring-social-impact-deepenings

Developing and Measuring Social Impact Erasmus Plus ECORL Project

Reminder: What is a social business?

Yunus Social Business 2

• Investors can have their capital repaid, but all profits or returns beyond the original investment

amount are reinvested in this or another social business, to further address social problems

…but profits are reinvested, not distributed.

• Its revenues cover its costs, or there is a clear business plan to reach break-even within a

reasonable timeframe; can be financed by investment, rather than depending on donations

Financially sustainable…

• Product/service, or operating model of the company itself, solves a social or environmental

problem: e.g. healthcare, access to renewable energy, employment of marginalized groups…

…created specifically for social benefit.

• Sells a product or a service, is customer-oriented and market-based, has one or several owners

A business…


What differentiates a social business entrepreneur from a traditional entrepreneur?

The social mission


Measurem ent

Vision Outcomes Activities Indicators

Social Impact Definitions

European Commission defines Social Impact as

“the reflection of social outcomes as

measurements, both long-term and short-term,

adjusted for the effects achieved by others

(alternative attribution), for effects that would

have happened anyway (deadweight), for

negative consequences (displacement), and for

effects declining over time (drop-off)”


Measurem ent


Social Impact Definition

Changes to one or more of the following...

People’s way of life

Culture, community and political systems

Environment

Health and well being

Property rights

Personal happiness

Fears and aspirations – security, conflict


Theory of change: a tool to help you develop and formalize your social mission

• A Theory of Change defines all building blocks required to bring about a given

long-term goal

• A casual framework of how and why a change process will happen in a particular context

• A pathway of change that shows the connections between long term, intermediate and

early outcomes

• Rather than projecting outcomes from your activities, it is a reverse process that

focuses first on what outcome you are seeking then considering the preconditions

and the required activities

Vision Outcomes Interventions

/ Activities Indicators Measurement


Measurem ent


Determine the vision

• Concrete

• Invcluding all stakeholder

• Icluding the final product

• One Key Metric : every acticity t

provides insipration for the team

All low-income students have

access to university


Measurem ent


Build the outcomes map and identify which of the outcomes you will address

Precondition (early outcome)



Vision (ultimate outcome)

Long term outcome

Mapping a causal pathway can

be complex…

… but is logical

• https://www.youtube.com/watch?v=YJSMa7

AA3cU&feature=youtu.be

http://www.youtube.com/watch?v=YJSMa7

http://www.youtube.com/watch?v=YJSMa7


Measurem ent


Define your activities and interventions

• Activities are designed to achieve

particular outcomes

• Activities follow outcomes (not vice

versa)

• By indentifying activities supporting a

particular outcome, it helps focus on

what actually has to be done and who

is best to do it

• Activities generate results

• Weekly classes on college

vocabulary, admission

requirements, financial

literacy, career exploration, …

• Quarterly parent education

sessions and family meetings

• College tours to visit a range

of higher education institutions

• Etc.


Measurem ent


Select your indicators to measure the results of your activities

Useful

• Simple

• Relevant – causal link between the

activity and the variation of the indicator

Available

• Easy to collect

• Limited cost of measurement

Reliable

• Transparent

• Number of attendants in the

weekly courses in the quarter

• Number of families who

attended the parent education

sessions in the last quarter

• Etc.


Measurem ent


Defining your indicators

1. Objective

2. Related to the input and results

3. Linked to the underlying

cause

4. Easy to capture and

analyze

5. Observable within a limited

time

6. Specific number


Measurem ent


Why is it difficult to measure social impact?

The time horizon for

measuring the

impact is often long

The evaluation is

costly in terms of

time, money and

resources

There is a wide range

of diversity among the

activity sectors

It is difficult to define a

pragmatic and practical

measurement method

It is difficult to correlate

precisely the social

impact to the activities of

the project


Measurem ent


Define how you will measure the indicators

• What measurement tool to use

• When to measure

• Who will do the measuring

• Which resources are required

Baseline surveys, annual

evaluation surveys, attendance

lists, reporting templates, etc.


Analyzing your Results

Lean Analytics Stages

How do your indicators dictate your

business?


Factors of Good Indicators

Simple -- You shouldn’t have to explain it to your staff

Immediate -- Avoid Lagging Indicators wherever possible…

Actionable -- Can you make a Decision? Does it change Behaviour?

Comparable -- Look at Changes and Patterns, not Absolutes.

Fundamental -- How does it relate to your Success?


Measurem ent


Why is it important to measure social impact?

• Provide evidence of the social impact to the teams and the investors by

estimating how much the Social Business has contributed to the change

vs. the initial situation

• Enable investors to choose and justify their investments

• Increase your impact by improving the efficiency of your activities

• Guide your strategy and pilot your activities in an continuous

improvement philosophy

• Strengthen internal and external communication by increasing the

visibility of your actions

• Increase buy-in of your teams and value their work

• Ensure continuous commitment of stakeholders

Prove the relevance

of your Social

Business

Improve your

activities and your

strategy

Communicate and

federate


Measurem ent


Why is it important to measure social impact?

• How do donors and grant makers alike, provide funding?

• How do we know if the organisation is actually making a social

impact?

• How can we measure best practices?

• How can investors know whether they are helping or hindering

progress

• How can organisations themselves know if their work is ‘’worth it’’?


Existing Standards (IRIS)

Health Education Cross-sectors


Your turn!

1. Define your theory of change

Vision

Long term outcome

Long term outcome

Long term outcome

Precondi

tion

Precondi

tion

Precondi

tion

Precondi

tion

Precondi

tion

Precondi

tion

Precondi

tion

Precondi

tion

Precondi

tion


Your turn!

2. Define your indicators

Indicator Initial value Year 1 Year 2 Year 3


Your turn!