Social impact measurement is important for both nonprofit organisations and beneficiary communities. Measuring social impact helps us understand how impact programs are changing the lives of communities.
Social impact firm follow a detailed process to measure social impact and to guide CSR efforts in the right direction. This guide will walk you through the steps to measure social impact in ways that will aid program improvement and sustainable impact.
Step 1 – Choose the Right Framework
There’s no shortage of social impact measurement frameworks, but M&E experts must make a choice that best reflects the outcomes and impact of their programs. Different indicator frameworks serve different purposes. The best framework creates evidence-based results. It helps stakeholders make decisions. We outline a few frameworks here that are used to assess social impact programs.
Theory of Change
Theory of Change (ToC) is a widely known and used social impact measurement framework in the social impact field. ToC maps everything from the activity stage. It also accurately tracks outputs, outcomes, and long-term impact. If your program must be split into stages to measure its effectiveness, use ToC as your framework. Theory of Change is also good for programs that are in their initial stages and need to map every activity, output, and foreseeable outcome.
Logic Models
If your program needs a new way to measure social impact, try a logic model instead of a traditional Theory of Change map. A logic model is a visual tool to map out the relationship between resources, activities, outputs, and outcomes. Logic models provide the logic between each stage of the program. For example, they show whether the activities make sense to achieve outputs and so on.
Read more here: Difference Between Theory of Change and Logical Framework
Social Return on Investment (SROI)
SROI helps in measuring CSR impact by calculating the returns on the amount invested in social impact programs. It assesses the return in various ways by tracking the progress of communities. For example, the SROI framework shows if communities have gained more resources, learned new skills, or improved their lives. This change is directly related to the monetary amount invested in the impact programs.
Results-Based Accountability (RBA)
RBA focuses on population-level outcomes and emphasises the difference between how much you did, how well you did it, and whether anyone is better off. This social impact measurement framework is particularly valuable for collaborative initiatives that address complex social issues. Results-based accountability is also recommended for larger projects working with large populations.
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Step 2 – Define and Select Your Metrics
Once you’ve established your framework, the next critical step is to identify social impact indicators to track the program’s progress effectively. The metrics you select will shape the impact story of your programs. Selecting metrics is a very delicate task and, therefore, must involve M&E experts. Below are different types of social impact metrics to measure program success.
Output Metrics
Output metrics measure the direct products of program activities. Outputs show how many people were served, workshops held, and meals provided. While these numbers are vital for operations, they don’t reveal real change or impact. Outputs are different from outcomes as they only reflect the direct effects of activities in your the social impact evaluation studies.
Outcome Metrics
Outcome metrics go a step further and focus on the changes experienced by your beneficiaries. These changes reflect the direct impact of the outputs on measuring social impact. For example, if your output is the number of workshops conducted, then your outcome will be improved skills as a direct result of those workshops. Outcomes connect outputs to their final impact. They show how activities and outputs lead to work that can change lives.
Impact Metrics
Impact metrics capture the long-term, sustainable changes created by your social impact programs. These social impact metrics are often used in the last stage of your Theory of Change (ToC) framework and explain the overall impact of your interventions and how it has made a difference in the lives of people.
Use the SMART indicators method to pick the right metrics for your programs:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
It’s crucial to incorporate quantitative indicators (numerical data) along with qualitative measurement techniques, such as collecting stories, observations, and experiences, for accurate social impact evaluation. Avoid the temptation to measure everything. Focus on a manageable number of key indicators that truly reflect your mission and theory of change.
Step 3 – Collect Data Effectively
Effective data collection requires careful planning, appropriate tools, and timing. It’s also important to consider your beneficiaries’ comfort and capacity to provide data for your programs. Minimising survey fatigue is essential to collecting data effectively.
Moreover, it is also important to adhere to cultural appropriateness, protect privacy, and, whenever possible, demonstrate how their input contributes to program improvement.
Step 4 – Analyse and Attribute Results
Data analysis transforms raw information into actionable insights. It requires careful attention to your data versus correlation or coincidence. Attribution is the process of assessing whether the observed changes and impact are a direct result of your social impact interventions. Attribution is vital. It shows that programs are reliable and helps remove outside influences.
Social impact consultants will have to track the external influences in addition to program impact for accurate data attribution.
Below are a few techniques used for data attribution:
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Comparative Analysis
As the name suggests, comparative analysis involves comparing your results with similar social impact programs, historical trends, and other environmental factors. Comparative analysis gives a clearer picture of how your interventions have affected the beneficiaries by comparing similar influences in their lives. This approach helps social impact consultants to contextualise your achievements and identify areas for improvement.
Triangulation
Triangulation means examining several data sources to confirm findings from your data analysis. Triangulation may involve observational data collection while also implementing survey methods to assess the attribution rate of your programs. It involves analysing large amounts of data to prove the effectiveness of your overall analysis.
Interesting reads: 5 Signs You Need a Monitoring and Evaluation Consultant
Step 5 – Time Your Measurement for Maximum Insight
Appropriate timing for social impact measurement is one of the most underrated factors. Most programs need continuous measurement, starting right before the intervention with a baseline assessment. The assessment then needs to move forward during the program and after the program as well.
Many organisations and impact consultants make the mistake of only measuring social impact as their program is nearing its final stages. However, to truly evaluate the impact of any interventions, it’s crucial to measure the impact before, during, and after the program.
When social impact measurement is conducted throughout the program cycle, it allows for real-time adjustments and early identification of challenges or unexpected outcomes.
Step 6 – Value and Integrate Qualitative Insights
Quantitative data often gets more focus in measuring social impact. But qualitative insights are just as crucial. They add context, depth, and understanding that numbers can’t show alone.
Qualitative insights for a social impact program can be measured in multiple ways, such as photovoice, testimonials, videos, and the Most Significant Change (MSC) technique.
The Most Significant Change technique involves collecting and analysing stories of change from beneficiaries and staff, then having stakeholder groups discuss and prioritise which changes they consider most significant.
Step 7 – Stay Accountable and Transparent
Accountability and transparency in impact measurement build trust with stakeholders. This goes beyond simply publishing reports and involves creating systems for continuous dialogue and change.
It’s important to implement regular reporting mechanisms for feedback and course correction. Consider different formats and frequencies for different audiences. For example, funders may want detailed quarterly reports while community members might prefer annual summaries with visual elements.
Step 8 – Learn, Adapt, and Improve
The ultimate goal of impact measurement is to learn, adapt, and improve programs to make a difference in communities. Hence, it is important for social impact measurement systems to have continuous feedback loops and improvement strategies for sustainable impact.
Learning from hurdles experienced and sharing them with different stakeholders is vital for program sustainability. Such transparency builds credibility with stakeholders who value honesty and continuous improvement.
Tools and Platforms for Measuring Social Impact
Selecting the right tools and platforms will determine the success of your social impact measurement exercises. Tools and platforms for measuring social impact must be determined after careful consideration of your organisation’s needs, capacity, and resources. Below, we outline a few such tools and platforms:
Comprehensive Platforms
Comprehensive platforms are end-to-end solutions that offer various tools from survey design to data analysis and reporting. These platforms often include features like automated calculations, visualisation tools, and stakeholder portals all under one roof. Many organisations these days are moving toward comprehensive platforms given their efficiency. If your team is struggling to manage several different impact measurement tasks, then turning toward comprehensive platforms may be a good option.
Survey and Data Collection Tools
Many platforms specifically aid with data collection and surveys. KoBo Toolbox, SurveyCTO, or Typeform provide specialised capabilities for gathering primary data from beneficiaries.
Many organisations also prefer to use pen and paper for data collection as it helps them collect data from low-connectivity areas. Determining the right data collection tools is also crucial for social impact investing, as it determines the overall return value of the programs.
Data Analysis and Visualisation Software
Data analysis can be conducted via basic Excel and Google Sheets, and also more sophisticated options like Tableau or Power BI. Data analysis and visualisation platforms can help to create a narrative story about a social impact program. Hence, determining the best option for your program will help you not just in measuring social impact but also in creating a compelling story of change. You can also read our new blog on how data analytics tools to improve rural health care.
Conclusion
The eight steps in this guide offer a roadmap. But keep in mind, impact measurement is about learning and improving, not about being perfect. Begin where you are. Use what you have. Focus on creating systems that help you understand and improve your impact over time.
4th Wheel Social Impact provides tailored impact consultancy services through customised evaluation studies. Contact us today to learn how we can support you in your M&E journey.
