Social Impact2 Social Impact2
Aligning Social Impact Measurement with Your
Business Model
Talk for Schulich School of Business’s Social Entrepreneurship Course
By Paul Bakker
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More than one model of social entrepreneurship
More than one approach to measuring social impact
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A Multitude of Approaches
Appreciative Inquiry
Most Significant Change Outcome Mapping
Experiments Realist Evaluation Cost-Benefit Analysis
Contribution Analysis
Four-Level Model
Developmental Evaluation Theory Driven Evaluation
Empowerment Evaluation
Goal Free Evaluation
Balanced Score Card
IRIS B-Corp
Social Return on Investment ETC.
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Selecting the Right Approach
Ask:
Who are primary audiences/users
How will they use the information?
– What decisions do they want to make?
– What decisions do you want them to make?
What types social impact information will most likely lead the desired actions/decision?
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Social Impact Evaluation & Business Models
Different business models: • Different target audiences
• Needing to take different actions
• Different information needs and preferences
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Social Impact Evaluation & Stages of Development
For-Profit Non-Profit Start-up, Proto-type, R&D
Pilot program, Demonstration
Small business On-going program
Franchise, (mutli)national corporation
Best Practice Program
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Inputs
Good/Services
Social Impact
Activities
Change Model
Profit Bottom Line Only (Traditional Business)
Social Bottom Line
Investment for Cost of Production
Income (Donations/Grants)
Manufacturing, Marketing, Sales, etc
Distribution of Needed Goods, Social Services
# of Goods & Services Sold
(Income, Profit)
# of People Receiving Goods & Services
Change in People’s Lives
Goal
Goal
Positive Change in People’s Lives
For & Non-Profit Business Models
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Target Audiences
For-Profit Non-Profit Yourself
Investors Donors/Funders
Regulators Regulators
Consumers Clients
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Investors
Social Impact (Information) Preferences
Impact on Evaluation Approach
Traditional Investors - just not harmful or ethical investments
Unnecessary expense
Impact Investors – Want to invest in social like invest in business
SROI, Standardize Metrics, Benchmarking, B-corp/GIIRS
Social value vs. personal value
Focus on outcomes rather than dollar value.
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Consumers
Social Impact (Information)
Preferences Impact on Evaluation
Approach
Some care about social impact. Won’t read a full report.
Short social impact statements backed up by independent third party/accreditation
Need to believe will work for them
Use stories of individuals they can identify with
Motivate head and heart
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Regulators
Social Impact (Information)
Preferences Impact on Evaluation
Approach
Need to prove that product/ service does not cause harm. Most often require rigorous
experimental methods and environmental impact assessments
(In some cases) Need to prove claims of social benefit.
Motivate by logic
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Institutional Funders
Social Impact (Information) Preferences
Impact on Evaluation Approach
Mandate is social well-being Social impact measurement most often required
Evidence requirements varies greatly
Gear approach to expectations of your funder(s)
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Donors
Social Impact (Information) Preferences
Impact on Evaluation Approach
Some (high $) donors care about ensuring donations lead to the most impact
Experimental methods and SROI may motivate them.
Other (low $) tend to donate to causes that appeal to their heart
Qualitative stories often good enough. SROI metrics may not motivate them.
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Nonprofit Clients
Social Impact (Information)
Preferences Impact on Evaluation
Approach
Most often already convinced of social value
Unnecessary
Give hope. Success rates, Realist Evaluation, Qualitative case studies,
Right for them?
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Yourself
What are your social impact priorities?
How much resources can you invest in evaluation?
What questions do you have/decisions you need to make?
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Audiences’ Different Evaluation Needs
Questions?
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Types of Evaluation
Patton (2011) Developmental Evaluation: Applying Complexity Concepts to Enhance Innovation and Use.
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Choosing the Right Approach
Will help you:
Improve your social impact
Prove your social impact
Gain more support/investment/sales and scale your impact
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Choosing the Wrong Approach
Will result in:
Loss of credibility
Lower social impact
Less support/investment/sales
Wasted resources
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Do Your Market Research
Think of Social Impact Measurement as a product or service:
What is the market for it?
Who are the target audiences?
What do they need /want?
What will get them to buy-in?
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Use a Social Impact Measurement Toolkit