Social Impact Strategy – Impact Measurement & Impact Management
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Social Impact Strategy – Impact Measurement & Impact Management


SoPact: How can you expect investors to fund
your project when you can’t show them impactful results? SoPact: Hi everyone. My name is Chris Gaines, lead trainer at SoPact,
and today, I’ll be sharing eight principles to building an effective impact strategy to
get the funding your project needs to truly make a difference. But before we start, be sure to subscribe
and click the notification bell down below, so you’re always alerted when we release new
videos about how you can create a global social impact. SoPact: Let’s start out with a question about
you. Are you a mission driven organization? Are you an asset manager? Social impact fund? Accelerator? Do you work with stakeholders like nonprofits
or businesses? Does raising capital play an important role
in your initiative’s success? The place to start in all of these positions
is your impact strategy. If you’re a startup and you want to raise
capital, where do you begin? You always begin with the business plan. You formulate your business from scratch,
from your team to your marketing plan, to your revenue streams. Then you go and build a pitch deck, and you
go raise capital. I’ll walk you through all eight steps so you
can be fully prepared for when you do go on to investors. SoPact: Number one, don’t start from scratch. Chances are that someone in the impact community
has already built out something that could be useful to your organization. For example, as an impact investor, you have
to look no further than GIIN. GINN recently released a host of impact themes
and IRIS profiles that you can utilize for your own organization. Simply pick the metrics that are relevant
to your costs, discard the ones that aren’t, and you have a beautiful profile ready to
start with. SoPact: Number two, the theory of change as
a foundation. While the theory of change is something you
might not be familiar with, this is an extremely important foundational element to anyone who
wants to demonstrate the evidence of the impact that they’re creating. The first step to building a theory of change
is your impact statement. Just start by asking yourself the simple question,
“What is the problem we’re trying to solve?” Your impact statement is often derived from
your mission statement and your vision statement, but it’s very definitive. Your impact statement will lead to impact,
output, outcome, activities, and input. Building this out creates a systematic theory
of change for your project. You can use our free actionable impact management
ebook to go through this process step-by-step. The link will be in the description below. The design of your theory of change will lead
to principle number three. Impact metrics. SoPact: Impact metrics are extremely important
in designing a program that creates an effective change that you desire. They’re also extremely important in communicating
progress to funders. Standard metrics are a great place to focus
if you’re truly making progress towards your impact statement. For example, impact investors often use IRIS.
metrics corporations use GRI or SASB to designate materiality. While standard indicators are often useful,
they’re not sufficient by themselves. Often, many internal impact metrics and operational
indicators need to be synchronized before you can get a true snapshot of what’s happening
in your impact management portfolio. SoPact: Principle number four, the quality
of your indicators. The next step in improving and refining your
strategy is determining the quality of the indicators that you’ve selected. Ask yourself a few questions. Are they measurable? Are they definitive? Do you have a good balance in your overall
selection between quantitative and qualitative indicators? These are all important things to think about
when you look at how your indicators interact as a whole. SoPact: Principle number five, the context
of your indicators. One important thing to keep in mind when choosing
metrics, one dataset can be interpreted in many different ways. While impact metrics are defined from one
particular lens, they might have different meanings to different stakeholders. For example, the metric low-income stakeholders
could be interpreted differently in different parts of the world. Hence, it’s very important to specify exactly
what you mean in the context of each of your indicators and metrics. This means providing definitions, providing
help links with context, showing calculations as to how you reached that specific data point. Is it low-income stakeholders, someone who
has less than $100,000 involved, or is it someone who has less than $10 million involved? SoPact: Number six, aligning with sustainable
development goals. When you finally start reaching out to investors,
one of the things you always want to make sure you do is take into account their perspective. In this case, sustainable development goals
or related initiatives. Investors are often looking for alignment
with their sustainable development goals and indicators. In fact, without this alignment, most funders
won’t start a true conversation with you about your project. SoPact: Number seven, alignment with your
impact management project. Impact management project defines five dimensions
that allows both investors and entrepreneurs to further understand stakeholders, types
of impact, depth of impact, contribution, and risk associated with impact. SoPact: Number eight, finally, the last and
most important principle is to align your data sources for different programs, stakeholders,
outcomes, surveys, and operations with your selected impact metrics. Aligning data with your metrics allows you
to monitor the progress of key indicators, build robust impact evidence, and track the
outcomes of stakeholders on a regular basis. The question is, once you’ve collected all
of your data, how do you present it in a way that showcases impact evidence? SoPact: Be sure to subscribe and be on the
lookout for more videos in the future where we dive deeper into this topic. By mastering these principles and building
them into your strategy, you will be able to ensure success for your project. SoPact: Do you agree with these principles? Do you have any other ideas? Leave a comment down below and let’s discuss. We’re really looking forward to diving deeper
into the impact management community and seeing how we can work together to build a better
world. We’re going to talk about a ton of different
topics here on the SoPact channel, so stay tuned. Thanks for watching, and I’ll catch you next
time.

About Ralph Robinson

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5 thoughts on “Social Impact Strategy – Impact Measurement & Impact Management

  1. Great tips Chris! Very helpful for my non-profit to use these tips to start building impact strategy and manage impact evidence to fundraise.

  2. Thank Madhu and Hetal. Yes, the impact journey starts here! There are many new insightful videos will be published regularly, so stay tuned and subscribe to channel.

  3. Designing a systematic impact strategy, and a sound social impact measurement framework, from the outset, is a must. Any impact-focused organization benefits from having this clearly defined, especially the following organizations. Learn more: https://www.sopact.com/social-impact-strategy

    More about the theory of change can be found here: https://www.sopact.com/theory-of-change

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