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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…
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What differentiates a social business entrepreneur from a traditional entrepreneur?
The social mission
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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)”
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Measurem ent
Vision Outcomes Activities Indicators
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
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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
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Measurem ent
Vision Outcomes Activities Indicators
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
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Measurem ent
Vision Outcomes Activities Indicators
Build the outcomes map and identify which of the outcomes you will address
Precondition (early outcome)
Precondition (early outcome)
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
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Measurem ent
Vision Outcomes Activities Indicators
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.
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Measurem ent
Vision Outcomes Activities Indicators
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.
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Measurem ent
Vision Outcomes Activities Indicators
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
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Measurem ent
Vision Outcomes Activities Indicators
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
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Measurem ent
Vision Outcomes Activities Indicators
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.
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Analyzing your Results
Lean Analytics Stages
How do your indicators dictate your
business?
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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?
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Measurem ent
Vision Outcomes Activities Indicators
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
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Measurem ent
Vision Outcomes Activities Indicators
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’’?
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Existing Standards (IRIS)
Health Education Cross-sectors
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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
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Your turn!
2. Define your indicators
Indicator Initial value Year 1 Year 2 Year 3
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Your turn!