SEA Measurements

Income & Outcomes: Innovative Data Management, Metrics, and

Models for Social Enterprise

Social Enterprise Alliance Summit

April 29, 2010

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Making Impact Valuable to Practitioners

• Visibility

• Know-How

• Capacity

• Technology

• Demand from Investors/Funders

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Know-How: Approaches

Global SROI NetworkSROI LiteSROI ToolkitSROI Calculator

Burgeoning Landscape

Technology: Cost-Savings

Demand: Leadership

Impact DashboardSM

…Not an exhaustive list…

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Measure, Manage & Communicate

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1Understanding organisation Analytical framework Define goals

Mission and venture coherence

2 Stakeholder analysis Stakeholder analysis

3 Scope of Analysis Scope of Analysis

4Income and cost analysis Measure costs

Brainstorm non financial impacts

Cost evaluation of inputs

Quantify non financial impact

Analyse costs

5 Impact value chain

Articulate theory of change and 3 key, practical indicators

Theories of change and impact value chain Impact value chain

6Identify and collect data

Translate impacts into financial terms Tracking Monetisation

Identify and collect data

7 Projections Projections Projections

8 SROI calculationCalculate enterprise value SROI calculationCalculate social purpose value Sum the cashflowsCalculate blended value

Discount the cashflows

Calculate enterprise returns Calculate SROI

9 SROI reportingGenerate SROI report Reporting SROI reporting

10Evaluation and monitoring

Effectiveness measures Evaluating

Implementation and integratio

qualitative value

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quantifiedvalue

financial value

narrative value

Impact Valuationthat reflects the full spectrum

©2007-2010 SOCIAL VENTURE TECHNOLOGY GROUP. All rights reserved. www.svtgroup.net

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Communicate Your Value Profile

Organization 1 Organization 2 Organization 3

Financial information

Monetizable

Quantitative

Qualitative

Narrative


Monetizable

Quantitative

Qualitative

Narrative


Monetizable

Quantitative

Qualitative

Narrative

e.g. Kiva e.g. YMCA e.g. South Pole


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Connect with Information Profiles

Organization


Monetizable

Quantitative

Qualitative

Narrative

Audience 1 Audience 2


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Pulse Project

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Metric Definition

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Investment Metrics

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Social Impact Measurements: Considerations/Issues for ZeroDivide

• Process and Impact Outcomes

• Individual, Organization, Community Outcomes

• Aggregating Results

• The Data Balancing Act

• Fear of Failure

• Social Return on Investment

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Change Agent Productions

Budget v. Actual

Year 1 v. Year 2

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SROI: Change Agent Productions

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• A coached process and 10-step tool for learning how to measure impact using SROI methodology

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• First steps are same as pretty much all impact measurement techniques

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• Impact differentiates between “what happened,” and “what would have happened anyway”

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Scenario planning

• Value can be projected over time and modeled by entering different assumptions

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Report is automatically generated

• Report includes an Impact Map that details underlying assumptions

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Manage What Matters

• The tactics of measurement should increase your ability to advance your mission.

• Evidence of your impact should be an artifact of doing your job.

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Family Service Agency

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The Context

We must declare what is valuable.

We must overcome…

• An inability to connect capital to outcomes• Market structures that discourage a free and

open flow of data

Poverty

Climate Change

Disease

Education ...Disaster Relief

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Transactional andCompetitive

• Transactions• Outputs• Accountability• Efficiency

Social andCollaborative

• Ideas• Outcomes• Social Change• Efficacy

Two Markets

Data and Measurement

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Social Impact Data The old way…

• Grant / Invest• Accountability• Scale• Social Change• Reputation

• Fundraise / Sell• Perform• Improve / Iterate• Social Change• Reputation

• “The Market”

• Value Realization

Funder / Investor

Social Actor / Entrepreneur

Research / Public Benefit

With rigor and comparability, social impact data will become a currency.

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Resources

• McKinsey “Learning for Social Impact” report

• Tools & Resources for Social Impact (TRASI) (database of 150 social impact measurement tools)

• FSG Finance “Breakthroughs in Shared Measurement & Impact”

• Zero Divide Case SROI Case Study

• Impact Reporting & Investment Standards (IRIS)

• Pulse

• Social eValuator

• Salesforce Foundation

• SVT Group

• ZeroDivide

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Contact info

• Laura Efurd - [email protected]; (415)773-0388 www.ZeroDivide.org

• Sara Olsen - [email protected]; twitter smolsen or svtgroup ; www.svtgroup.net

• Steve Wright - [email protected] ; (510) 282-4739 www.salesforcefoundation.org

• Paul Lamb – [email protected]; (510) 815-6091 www.manonamission.biz