Understand, Manage and Repeat: 7 Steps to Measuring Your Impact
Making a positive impact on society is one of the primary goals of many impact-focused organisations, but how do you know if you're actually making a difference? Measuring your impact is an essential step towards understanding the effectiveness of your work and making data-driven decisions to improve and expand it.
Impact measurement journey
The purpose of impact measurement is to…
Share with primary stakeholders that an organisation has, and continues to, take the right steps towards long-term sustainable impact
Inform decision-making and strategy as it provides the internal team with an overview to identify any gaps in the work
Identify opportunities to learn and grow
Present an organisation’s social value framework to others in the ecosystem
The benefits of having an impact measurement strategy are to…
Build trust and credibility amongst peers
Position an organisation as thought leaders
Frame an organisation’s competitive advantage
Appeal to your target audience
Attract funding
We’ve put together 5 steps towards determining your impact measurement framework below.
Step 1: Define your impact goals
Before you can measure your impact, you need to have a clear idea of what impact you're trying to achieve. This involves defining your impact goals in specific, measurable terms, such as reducing carbon emissions by 50%, improving educational outcomes for 500 students, or providing access to clean water for 10,000 people.
Step 2: Build your Theory of Change
Building your Theory of Change is the most important framework for an impact business and is used as the foundation of your impact journey.
Learn here the steps to develop your own theory of change.
Step 3: Identify your metrics
Once you have defined your impact goals, you need to identify the key metrics that will help you measure progress towards those goals. These metrics are specific data points that allow you to track your performance and determine whether you are making progress towards your goals. Examples of metrics might include the number of tons of carbon emissions reduced, the number of students who have improved test scores, or the number of people who have access to clean water.
Step 4: Collect key data
Data is the backbone of impact measurement. You need to gather data on your metrics and analyse it to understand whether you're making progress. Data can come from a variety of sources, including surveys and interviews with your beneficiaries, or observational data, and third-party data sources.
Step 5: Conduct data analysis
Here you can use data analysis tools and techniques to identify trends, correlations, and patterns that will help you make informed decisions. This step alongside data collection usually takes the longest and is definitely the crux of impact measurement. It will take time to accurately and productively analyse data in correlation with your impact goals and key metrics.
Step 6: Report significant findings
Once you have collected and analysed your data, you need to report your findings to stakeholders. This includes sharing your results with funders, partners, and other stakeholders who are invested in your work. Reporting your findings helps to build credibility and accountability, and provides evidence of the impact of your work.
Step 7: Use data to learn and evolve your work
The ultimate goal of impact measurement is to use data to improve your work. By analysing your data, you can identify areas of your work that are working well and areas that need improvement. You can use this information to refine your approach, make changes to your programmes or services, and ultimately increase your impact.
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Measuring your impact can be a complex process, but it's essential for any socially-focused organisation that wants to make a positive difference in the world. By following these 7 steps, you can start to build a data-driven approach to impact measurement that will help you understand the effectiveness of your work and drive improvements over time.
Useful resources:
- SoPact: Impact Measurement Tool
