The latest global trends in social impact measurement, management
Outcome metrics or Impact Metrics are, put simply, results. The measurement of outcomes illustrates the kind of impact that programs have had on communities served.
In this brief blog, we'll define the difference between indicators and outcomes, and delve into the steps organizations can take to properly define their outcomes.
No matter the size of your organization, with the strategies we discuss here you'll be able to get started on (or be equipped to redefine) your outcomes mapping strategy.
While solely measuring activities and outputs (indicators of change) is significantly more straightforward, these types of measurements deliver little insight into the results of social impact efforts. Such measurements may also inadvertently sway how an organization delivers impact programming.
For instance, if an organization is being measured for how many students are served rather than how many went on to find a valuable career post-graduation (the mission of the organization), that organization may begin expanding class sizes to serve more students, potentially diluting each student’s experience.
Taking the concept of indicators a bit further, many organizations use indicators as a way to imply impact without actually showing that any impact was actually created by the organization's activities. Not only can this be disingenuous but it can also create a false sense of impact achievement, thus hurting beneficiaries and putting at risk the ability to raise capital (impact investors, donors, and philanthropists are more and more sensitive to impact-washing).
Instead, Mission-driven organizations should focus on developing a strong social change strategy using a theory of change or logic model to build a strong evidence-based approach to scale social impact and to measure its effectiveness.
These organizations must develop strong outcome goals to be able to do the latter. Outcome metrics are metrics designed to demonstrate a change or outcome of a program, project, product or services. So, how do we select outcome metrics and to assess such outcomes?
To select outcome-oriented metrics one must first define an impact hypothesis by establishing a relevant Theory of Change (ToC). Once there is a clear understanding of all outcomes, outputs, activities, and inputs, a few things are revealed:
Above is the Theory of Change template found in the Actionable Impact Management (AIM) methodology for impact measurement. It is designed to deliver a clear understanding of the revelations outlined before (let’s recap):
A ToC starts with an outcome (long-term goal) and then maps backwards listing the outputs (indicators) that this outcome is coming to pass, then listing the activities necessary for those outputs to happen, and finally documenting the inputs (resources) needed for each of those activities. If the organization struggles to outline the best outcomes, check out this article to better understand types of outcome measures.
In this way, each outcome documented becomes a social impact metrics set. Its outcome and some of its outputs are transformed into metrics that measure for impact results.
This is one way to structure an organization's metrics selection process in a way that ensures a list of strategic outcome metrics linked to the organization's impact hypothesis. Once those metrics are outlined, they are ready to be built out to ensure that each one is well understood (See AIM Volume Two).
Listen to Chris Gaines discuss the best practices of choosing right standard, meta definition of impact metrics and types of metrics.
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