THEORY OF ACTION
This is one scenario that defines how our intended outcome resulted from the initiative. In reality, the theory of change models is more complicated. They take into account all the possible scenarios (good or bad) and highlight all possible assumptions taken and prerequisites needed for us to achieve the objective.
For example, what if increased public accessibility to employment increases competition and lowers payscale? In the absence of enough land/infrastructure in the industrial areas and outskirts new companies might not be attracted thus, there will be more competition for existing jobs and no social or economic benefit from our investment.
This immense complexity in defining and implementing the Theory of Change models requires us to use specialized tools to back up our thought process and result in a working model. Today, software like ImpactCloud are not just able to build Theory of Change models but also connect them to Impact Metrics hence, resulting in a 360-degree view of the planned action to the intended goal.
In this article, we will see how Impact Cloud® helps at different stages of Theory of Change implementation all the while exploring the model in further detail. Let’s dive in.
To start with building a TOC model you can refer step by step guidance in Actionable Impact Management Guidebook Volume One: Groundwork
Each step works as a guideline and should be executed in the order suggested. Skipping steps can result in inconsistencies in the social impact measurement strategy you are designing. You can also use the templates provided in this Guidebook.
Read More: 5 Ways to Improve Your Non-Profit TOC Model
Impact Statement & Outcome Mapping for TOC Software
Impact Statement is a foundational impact principle for an organization, program, or project. We recommend creating a precise "impact thesis."
Where do you start?
- Define your mission
- Define your vision
- How to define mission and vision?
The groundwork eBook gives you a step by step process to create a mission & vision. Click below the e-book guide to create your Mission & Vision.
As you create a theory of change (TOC) Wizard, your first step will be to define an Impact Statement as follows.
Impact & Outcome Mapping - Theory Of Change Map
As you define a detailed theory of change, you will need to define a complete impact map. Impact Map in Impact Cloud guides you through the following steps. As you create an impact map you can link between each area:
- Impact
- Outcome
- Output
- Activity
- Input
Theory Of Change Diagram
The key steps for the theory of change diagrams are
- Aligning impact map or theory of change map
- Aligning impact indicators
- Aligning with risk, assumptions, and other documentation
- Aligning with the Sustainable Development Goals
Theory of Change Software in 2020
Impact Cloud provides a unique theory of change wizard that starts with impact strategy and ends with impact reporting and facilitates improved outcomes iteratively. The TOC Wizard is an innovative product designed to build a strategy for
Aligning with Social Impact Indicators
Standard Impact Indicators
The Theory of Change Wizard facilitates rapid alignment of your theory of change with global impact metrics defined by various standard bodies - for
Also, TOC Wizard lets any certified social impact practitioners save and publish the
Impact Cloud is continuously updating new impact metrics. A list of current metrics list can be found here.
Custom Impact Indicators
While we recommend using standard metrics for communicating with funders, it is necessary to establish more common metrics and program-specific metrics for internal performance.
Within any custom metrics set created, users can also manage metadata for dynamically creating both qualitative and quantitative reporting documents with over 20+ reporting formats. These reporting formats act as validation rules when collecting external partners' results on a pre-defined frequency or ad-hoc basis.
Also, data strategy encourages intelligent alignment with:
Data Strategy:
- Impact Thesis
- Data Sources
- Create smart formulas to collect results on a pre-defined frequency (weekly, monthly, quarterly, etc.)
TOC to Data Strategy
Perhaps the most important and innovative aspect of building impact strategy in these ways is that you can instantaneously align your current data with a theory of change.
With this approach:
- Metrics can be aligned using formulas with all data sources.
- Data collection gaps can be easily uncovered.
- The best strategy for input, output, and outcome-related data can be identified.
The following steps indicate how you can align with any of your external or internal data. These data are collected in Project Portfolio. Data can be in the form of data from outside sources, internal data in Impact Cloud, third party surveys, or Impact Cloud surveys for measuring outcomes.
The best part is that users can preview all the results as soon as they link them using a formula.
