First-generation impact assessment platforms focus on gathering governance, environmental, and social policies to assess entrepreneurs or Small Medium Business (SMB) or Small Growing Business (SGB). Let's look at three examples -
1. MIX Markets: For Microfinance Institutes
2. AERIS Cloud: For CDFI Institutes
3. B-Assessment: Impact on its workers, community, environment, and customers.
4. B-Analytics: For investors, supply chain managers, business networks, and governments in helping companies to measure and improve their positive impact.
There is a major theme behind these first-generation impact assessment. Their main goal is to provide bench-marking to institutes that they focus on.
The problem is that they try to use "impact assessment" with a broader brush. Reality is impact is a context sensitive and cannot be measured through ratings!
Impact Scorecard
Impact Scorecard is a reporting mechanism designed to communicate and track impact results by asset managers and assets. Impact Scorecards are designed based on a theory of change with key metrics, each tracked to measure performance based on baseline, target, forecast, and actual results to ensure proper social performance.
Tools like Clear Impact allow public agencies, often healthcare organizations, to create an impact scorecard. At the same time, scorecard-based reporting is helpful in public agencies where regulatory reporting is important.
Benefits for Tools:
- Easier to use
- Simpler Reporting
- Useful in a public agency where regular reporting is required from different agencies
Challenges:
- Every organization must select its metrics
- Data collection, management, and aggregation are not included, hence everyone has a different process
- Inconsistent reporting
- Rigid reporting
- Do not provide feedback about the outcome to the organization
Example:
- Clear Impact: Web-based application for all things measuring and reporting.