Impact management and measurement can be a daunting process for a social enterprise. Social impact consulting brings expertise and technology to streamline impact work. Here are 4 reasons your social enterprise needs impact consulting.
- What is a social impact consulting?
- Lean strategy
- Better technology
- End-to-end efficiency
What is a social impact consulting?
Social impact consulting helps social enterprises (SEs) and nonprofits measure the effect they have on the community and environment. Social impact consultants bring strategic and technical expertise in impact management and measurement (IMM).
IMM is complicated. There is no global consensus on what IMM means nor how to do it. There is, however, an ever-increasing need to demonstrate impact to both funders and stakeholders. For Social Enterprises, impact measurement and management is more challenging than simple financial returns. Tracking and management of social enterprise impact factors consume precious time and money resources.
Social impact consultants can be useful at any stage of social enterprise development. SEs often seek consultants when their in-house expertise has difficulty identifying outcomes, collecting data, and reporting efficiently. Starting out with social impact consulting can save time and effort in the long run.
1. Lean strategy
Social impact consulting helps your social enterprise at a strategic level. Often, SEs don’t know where to start with developing a Theory of Change, or conversely, may dwell too much on it. Too many outcomes and metrics can be just as crippling as none at all.
Social impact consultants help your social enterprise develop a strategy that is both executable and actionable. This “lean” approach allows a social enterprise to experiment with impact on a small scale. Bit by bit, the social enterprise can move forward with a basic Theory of Change, focus on the most important outcome, take stock of existing data, and collect the additional data necessary to show progress.
At a strategic level, reaching out to consultants will help align your impact measurement and management with frameworks such as the 5 dimensions of impact. Because organizations learn by doing, favoring a lean approach allows a social enterprise to get going with IMM right away.
Read More: WHAT IS LEAN DATA MANAGEMENT?
2. Better technology
Technology is a critical tool as your social enterprise grows. Social impact consulting connects you with the right technology to optimize your IMM and streamline your processes.
One-size-fits-all data management systems are created for enterprise corporations. Most social enterprises have to hire data teams to tailor these platforms and launch training regimens so that staff can manipulate them towards impact outcomes. Traditional platforms like this carry an unexpected price tag. It can easily run $20k - $800k for a social enterprise to conduct data collection and impact evaluations without an impact-specific build. Remember that IMM is a continuous learning process, not a one-and-done ex-post evaluation.
Social impact platforms, such as Sopact’s Impact Cloud®, strategically align your outcomes and indicators as a social enterprise. It is technology built and developed specifically for social enterprise work, reducing the cost and time required to measure impact.
Impact-focused technology ensures that your teams are following the right practices from the start. The right platform establishes a systematic data pipeline, collecting data directly from stakeholders. This technology is able to track impact using visual dashboards and reporting, the analysis needed to automate the lean learning process.
Hiring an external impact team brings this kind of technology onboard. It takes a costly and complex process and makes it simple.
At Sopact, we look at each social enterprise based on the level of maturity and complexity of impact management and business analytics solution. To further understand, Sopact has partnered with Miller Center Santa Clara University to build the impact management capacity of 300+ social enterprises. We believe that social enterprises should dedicate enough budget from $1K-$100K/year depending on the level of maturity. For established social enterprises this range can be even higher as impact data analytics and business data analytics are core to their business model.
For a social enterprise in concept and pre-revenue, often best advise is to start with the theory of change examples describe on this page.
For post-revenue startups and early growth, we recommend building a comprehensive impact management strategy. By engaging qualified social impact consultants, social enterprises can not only achieve faster product-market fit but also be on a faster path to raise seed funding to Series A.
For established data analytics is often at the core of their business model. We recommend building unified impact management and business analytics.
Your social enterprise must be able to scale before it grows. These are not the same thing. Growth is expanding your market reach and staying profitable. Scaling means having the systems and processes in place to prepare for a long-term trajectory.
Social impact consulting streamlines and automates your IMM process. By reducing resources spent on IMM, your social enterprise can focus on “big picture” strategy, learning, and development.
Most importantly, with a continuous data pipeline, you will be in regular communication with your stakeholders. Insight into stakeholder needs is critical to understanding your SE’s role in creating social value for them as well as increasing revenue. Scaling your social enterprise means scaling a positive impact on society.
4. End-to-end efficiency
Technology alone is not enough for effective IMM. A high-quality advising process from a social impact consulting team leverages the technology for social enterprises. Integrated advisory with the right technology platform optimizes IMM for better results.
The real opportunity is in end-to-end impact management efficiency. Social impact consulting can advise you through the entire process of IMM:
- Understanding the right outcomes
- Identifying different data sources
- Aggregating multiple data sources
- Driving better data science for decision-making
At its core, IMM is a learning process for a social enterprise. Social impact consulting brings technology alongside to optimize the social enterprise’s impact and continued growth.
Read More: 3 TIPS FOR MEASURING SOCIAL IMPACT PROJECTS
Optimize your impact
Social impact consulting provides the right expertise to help you optimize your IMM process. High-level advising in conjunction with technology platforms such as Sopact’s Impact Cloud® generates great results for social enterprises and the stakeholders they serve. Learn more in our webinar with Efiko Academy about Using Tech for Impact Management.