Stakeholder Impact Analysis

As with any activity your organization performs, it should be done with a clear strategic purpose, not just because it seems like something you should do. With that strategic perspective in mind, here are a few ways to make sure you leverage those interactions with constituents.

• Keep it periodic but not constant. 

  For most beneficiaries, you don’t want to invade their life with data requests completely. Doing so can overwhelm and hurt their willingness to be a part of that process. Ask yourself, given the impact outcomes we are targeting and our program design, when are key moments we should be “checking in” to get feedback from our beneficiaries? Of course, if it is unclear, ask the beneficiaries themselves!

• Have an analysis plan in place.

  You conduct dozens of interviews and even more online surveys. Great, but what are you going to do with those data? Do you have the expertise to analyze it properly? The time? Program design shouldn’t just be about creating an effective intervention; it should also include how you will hold yourself accountable for making that intervention an effective one. Because if you are ultimately unable to utilize constituent feedback to assess and improve, you run the risk of wasting not just your time and energy but that of your beneficiaries as well.

• Tell stakeholders how it helped you!

  A great way to achieve buy-in from stakeholders in terms of their willingness to be a part of the data collection process is to explain clearly how such data will be used. And most importantly, follow up with those communities after analyses have been conducted to show how constituent voice contributed to understanding the impacts created and potential design improvements moving forward.

A stakeholder impact analysis can be conducted at a variety of times throughout the life of an intervention. At the outset, such an analysis serves to support the feasibility testing and initial design. During and post-intervention these analyses serve to assess impacts created and eventually how to improve the intervention design.

According to the Impact Management Project, there are five key dimensions of impact which should be taken into account in any stakeholder-centered analysis (seen below).

Source: Impact Management Project

Stakeholder Analysis is critical for understanding Impact Outcomes. Building a useful stakeholder survey is difficult and a must. What is Social Impact? As a mission-driven organization, how do I understand my Social Impact? How can I manage social Impact effectively?

To understand any impact on people or the planet, data is needed across five dimensions of Impact. The following article will discuss how you can build an impact evidence-based due diligence survey that aligns with five dimensions of Impact based on the Impact Management Project and Lean Data approach from 60 Decibel. This approach is relatively new and provides a great start if you begin to establish an impact measurement process for your projects. According to the impact management project, to effectively measure and understand the Impact, data needs to be collected across all five dimensions.

Learn Step By Step Example 

Qualitative vs. quantitative analysis of stakeholders

It is important to distinguish between the two main types of analyses available to impact practitioners. A quantitative analysis takes raw numbers and calculates outputs, determines probabilities or percentages, and enables practitioners to make inferences based on those results. A qualitative analysis primarily takes data from subjective self-reporting of stakeholders and uses various methods to extract insights.

A breakdown of the different data types can be seen below, taken from a recent report on using self-reported data:

Source: Using Self-reported Data

When to use a quantitative vs. qualitative evaluation

A quantitative approach is best used when specific, precise, and easily obtainable information can be collected from a stakeholder group, for analyses that seek to compare between time periods (for example, before and after) or between groups (for example, an experimental and control), quantitative approaches are often the most useful. Also, in evaluating outputs and frequency of activities, a quantitative approach is usually the most feasible.

A qualitative evaluation assesses contextual factors, usually from the subjective view of primary stakeholders themselves. Qualitative approaches take into account how such individuals evaluate their own experiences and potential impacts perceived. This approach is best used when the objective of the evaluation is to assess the needs, desires, and expectations of a group and how they feel about impacts generated.

While there is no one way to conduct a stakeholder analysis, there are, of course, best practices to be followed and common tools that can be used to get the most out of the time invested.

For a useful introduction to the processes involved in raising stakeholders' voices and how to do so effectively, we recommend reviewing “Using IRIS+ to Incorporate Stakeholder Voice,” a report published by the Global Impact Investing Network (which takes the investor engagement perspective). But it will also help general impact practitioners in any role, especially those wishing to dive further into the world of standardized metrics (IRIS+), which can be essential in various types of analyses of stakeholders.

Here are a few of the key takeaways of the report to get you started effectively incorporating stakeholder's voice:

• Transparency: Be clear about why you are doing things the way you are doing them (or the way you intend to) and ask stakeholders for feedback in an authentic way -- in other words, build trust by actually using that feedback reporting back. 
• There is no one-size-fits-all approach: Context. Context. Context. Be aware of just how much beneficiaries are willing and able to be a part of your analyses. Take those contextual cues directly from them and plan your engagement accordingly.
• Embrace an open-source mentality. The learnings you glean from those hard-earned moments with stakeholders and subsequent analyses may help other organizations make better decisions from the outset of an initiative and enable the social sector at large to operate more effectively and efficiently.