Integrating Impact Metrics as a Social Entrepreneur

A common theme of this week’s readings involved the challenges and limitations of impact metrics for social enterprises.  While many of the articles focused on measuring social investment from the perspective of funding organizations, like foundations and governments, I believe it is also necessary to consider impact measurement from the view of the social entrepreneur.  What metrics are most valuable to the social entrepreneur?  What measurements might influence social venture success? How does a social entrepreneur implement metrics?

From the perspective of a social entrepreneur, a strong understanding of metrics could be a significant success factor.  Ebrahim and Rangan made a case for operating organizations to focus on measuring inputs, activates and outputs, while using scope and scale to determine if outcomes are closely aligned.[1]  However, I feel that the What Impact? article did not address some important aspects of metrics for social ventures.

First, social entrepreneurs should be proficient at assessing and exploring opportunities that have potential to produce repeatable and scalable business models.  This means analyzing market viability and consumer needs.  Being able to effectively measure consumer behavior and identify suitable markets and segments could profoundly enhance a social venture’s appeal to fund providers and improve its chances of a successful launch.

Next, while I agree with the idea that social venture management teams should start with measuring inputs, activities and outputs, it is important to ensure that these measurements are meaningful to the mission and key stakeholders.  Collecting and analyzing data without a distinct purpose could be a waste of time, at the least.  Coordination of the venture’s mission with community groups, funders and governments, for example, could help to shape and define the most effective metrics for a specific activity or output, in order to inform an outcome.

Finally, social entrepreneurs should be engaged in projecting outcomes and impacts that might be affected through their activities and outputs.  While detailed evaluations of outcomes and impacts may be too complex for many social enterprises, an informed projection would help to align activities with other stakeholders.  Balancing and leveraging partnerships across non-profit, for-profit and government organizations could enhance a social venture’s ability to support the overall achievement and measurement of outcomes and impacts.

Devin Thorpe’s article at Forbes.com highlights early social venture measurement advice from an array of successful social entrepreneurs. Much of the advice from these experienced social enterprise leaders supports my points above.[2]  To effectively measure impact, social entrepreneurs should: apply metrics from the start, align measurements with the mission and coordinate with key partners.

 

[1] Ebrahim, Alnoor, and V. Kasturi Rangan. "What Impact?." California Management Review 56, no. 3 (2014): 118-141.

[2] Thorpe, Devin. "How Social Entrepreneurs Begin To Measure Impact." Forbes. March 23, 2017. Accessed September 24, 2017. https://www.forbes.com/sites/devinthorpe/2017/02/26/how-social-entrepreneurs-begin-to-measure-impact/3/#6ed0f866410e.