Aligning Social Impact Measurement with Your Business Model · Patton (2011) Developmental...

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Social Impact 2 Social Impact 2 Aligning Social Impact Measurement with Your Business Model Talk for Schulich School of Business’s Social Entrepreneurship Course By Paul Bakker

Transcript of Aligning Social Impact Measurement with Your Business Model · Patton (2011) Developmental...

Page 1: Aligning Social Impact Measurement with Your Business Model · Patton (2011) Developmental Evaluation: Applying Complexity Concepts to Enhance Innovation and Use. 17 . Social Impact2

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Aligning Social Impact Measurement with Your

Business Model

Talk for Schulich School of Business’s Social Entrepreneurship Course

By Paul Bakker

Page 2: Aligning Social Impact Measurement with Your Business Model · Patton (2011) Developmental Evaluation: Applying Complexity Concepts to Enhance Innovation and Use. 17 . Social Impact2

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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

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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

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Thank You!

[email protected]

www.socialimpactsquared.com

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