IMM Q&A: How do I get started with impact measurement?

Inspired by the wonderful questions in AVPN’s Ask the Expert Session#1: Jeremy Nicholls, this article answers the following questions about getting started with impact measurement and management (IMM):

1. Where and how do I set metrics to start measuring impact?
2. How may we guide younger startups/social enterprises to incorporate impact measurement, set progress targets, and report regularly in a way that does not take too much resources?
3. In introducing impact measurement and management to a program or organization, what are the pros and cons of doing a complete overhaul vs. gradual tweaks over time?

1. Where and how do I set metrics to start measuring impact?

There are generally 3 ways you can start setting metrics and tracking impact: 1. manually using a spreadsheet such as Excel, 2. utilizing an online service such as Cheeri, or 3. hiring an external expert. In any of these methods, you’ll need to follow these steps:

1. Clarify your mission and goals: Begin by revisiting or clarifying your organization’s mission, vision, and specific social or environmental goals. Ensure you have a clear understanding of what you aim to achieve.
2. Identify key impact areas: Determine the areas or domains where your organization’s activities have the most significant potential for impact. For instance, if you’re a food bank, your key impact areas may include reducing food insecurity, minimizing food waste, and promoting nutrition.
3. Conduct stakeholder analysis: Identify and engage with stakeholders, including beneficiaries, donors, employees, and partners. Understand their perspectives on what impact means to them and what outcomes they expect from your organization.
4. Develop a Theory of Change: Outline how your organization’s activities lead to intended outcomes. A Theory of Change or Logic Model helps map out the causal relationships between inputs, activities, outputs, outcomes, and impacts. With Cheeri, you can specify the Theory of Change in one simple step.
5. Select relevant custom or standard indicators: Based on your Theory of Change, choose relevant metrics as indicators to track the outcomes you aim to achieve. Consider leveraging existing impact measurement standards and frameworks like the Global Reporting Initiative (GRI), Impact Reporting and Investment Standards (IRIS), B Impact Assessment. To support this process, Cheeri uses AI to recommend relevant indicators from the most used frameworks based on your organizations’ details and Theory of Change.
6. Distinguish outputs from outcomes, short-term from long-term: Differentiate between outputs, outcomes and impact. Also, set short-term indicators to track immediate outputs and outcomes, while use long-term indicators to assess broader impacts over time. For more, see link.
7. Set baselines and targets: Establish baseline data to understand your starting point. Then, set realistic targets for each indicator. Targets should be specific, measurable, achievable, relevant, and time-bound (SMART).
8. Ensure data accessibility and collection: Determine how and where you’ll collect data for each indicator. As mentioned, you can do this yourself, use an online tool, or work with an external consultant. Ensure that data collection methods are feasible and align with your available resources. The benefit of using an online tool such as Cheeri is the ability to streamline data collection, storage, analysis and reporting in a single platform.
9. Collect both quantitative and qualitative data: Balance quantitative data (e.g., numbers, percentages) with qualitative data (e.g., stories, testimonials) to provide a holistic view of your impact.
10. Communicate impact: Share your impact data with stakeholders through reports, presentations, and storytelling. Effective communication helps build trust and support for your organization’s mission. Cheeri lets you create unlimited impact reports using with qualitative and quantitative data.
11. Monitor, evaluate and iterate: Implement a regular monitoring and evaluation process to track progress and assess the effectiveness of your activities in achieving the desired outcomes. Be open to adapting your indicators over time based on what you learn from your data. Continuous improvement is key to effective impact measurement.

Remember that impact measurement is an ongoing process. It’s essential to continuously assess the relevance of your indicators and adapt them as your organization evolves and matures. Start with a manageable set of indicators that align with your mission and gradually expand as you gain experience and resources.

2. How may we guide younger startups/social enterprises to incorporate impact measurement, set progress targets, and report regularly in a way that does not take too much resources?

It takes both knowledge and discipline to incorporate impact measurement into the demanding startup/social enterprise journey. Online tools such as Cheeri aims to demystify and simplify this process by providing a step-by-step, easy-to-use platform for younger startups, social enterprises and NGOs to set targets in the form of Theory of Change, pick relevant metrics/indicators using AI, submit impact data online, analyze outcomes in a dashboard, and create regular impact reports for internal uses or for stakeholders such as funders.

Cheeri’s step-by-step process of measuring impact

3. In introducing impact measurement and management to a program or organization, what are the pros and cons of doing a complete overhaul vs. gradual tweaks over time?

Introducing impact measurement and management (IMM) to a program or organization can be approached through a complete overhaul or gradual changes over time. The choice depends on factors such as the organization’s size, resources, culture, and urgency for change. Here’s a breakdown of the advantages and disadvantages of each approach:

Complete Overhaul

Pros:

1. Fresh start: A complete overhaul allows for a clean slate, enabling the organization to design and implement a comprehensive IMM system tailored to your organization’s most specific needs and goals, without the burden of legacy processes or data.
2. Alignment with current vision: An overhaul can ensure that IMM aligns seamlessly with your organization’s latest mission, values, and long-term vision. It also offers an unique chance for your organization to realign with the visions and values of your beneficiaries, donors, employees, and partners.
3. Quick transformation: Not being bogged down by past practices, this approach can lead to faster results and a more visible impact as your organization fully commits to the new IMM practices.
4. Stronger foundation: A new, integrated IMM system can provide a solid foundation for future growth and expansion, accommodating changing needs more effectively.

Cons:

1. Resource intensive: A complete overhaul requires significant resources, including time, money, and staff commitment, which might be challenging for some organizations.
2. Disruption: Drastic changes could disrupt ongoing programs, operations, and staff routines, potentially leading to resistance and disengagement.
3. Learning curve: Staff might face a steep learning curve in adapting to the new processes and technologies introduced during the overhaul. Cheeri is exactly designed to flatten this learning curve.
4. Risk of failure: There’s a higher risk of implementation failure if the organization doesn’t have the necessary capacity, expertise, or buy-in from stakeholders.

Gradual Tweaks Over Time:

Pros:

1. Less disruptive: Gradual changes are often less disruptive to ongoing operations, minimizing resistance and allowing staff to adapt at their own pace.
2. Resource management: This approach can be less resource-intensive since changes are implemented incrementally, spreading out costs and efforts.
3. Learning and iteration: The organization can learn from each iteration and make improvements based on real-world experience, leading to a more tailored IMM system.
4. Cultural adaptation: Gradual tweaks allow the organization’s culture to adapt naturally to the changes, reducing the shock of sudden shifts.

Cons:

1. Slow progress: Progress might be slower with incremental changes, and the impact might not be as immediately visible as with a complete overhaul.
2. Fragmentation: If not carefully managed, a series of small tweaks might result in a fragmented and disjointed IMM system.
3. Resistance to change: There’s a risk of inertia or complacency, as the organization might not fully commit to transformative changes.
4. Alignment challenges: Gradual changes might not fully align with the organization’s evolving goals, potentially leading to misalignment over time. It may also make be harder to align your IMM with the visions and values of your beneficiaries, donors, employees, and partners.

In conclusion, the decision to pursue a complete overhaul or gradual tweaks depends on the organization’s context, goals, resources, and appetite for change. While a complete overhaul can lead to rapid and comprehensive transformation, it also comes with higher risks and resource demands. On the other hand, gradual tweaks offer a more manageable and adaptable approach, but progress might be slower and less dramatic. Organizations should carefully assess their situation and consider a hybrid approach if appropriate, combining elements of both strategies to find the right balance for their unique needs.

No matter which approach you choose to introduce IMM, Cheeri’s flexible plans will support you every step of the way.