MEASURING IMPACT FOR SUSTAINABLE DEVELOPMENT INI ABIMBOLA Ini

MEASURING IMPACT FOR SUSTAINABLE DEVELOPMENT INI ABIMBOLA

QUOTES ON WHY WE MEASURE • “One of the great mistakes is to judge policies and programs by their intentions rather than their results” – Milton Friedman • “The pure and simple truth is rarely pure and never simple – Oscar Wilde • “True genius resides in the capacity for evaluation of uncertain, hazardous, and conflicting information” – Winston Churchill • “Fear cannot be banished, but it can be calm and without panic; it can be mitigated by reason and evaluation” – Vannevar Bush

UNDERSTANDING KEY ISSUES An approach to creating value that sustains or enhances the systems and resources upon which that value depends. Sustainable development is development that meets the needs of the present without compromising the needs of future generations to meet their own needs. Measure of the tangible and intangible effects (consequences) of one thing's or entity's action or influence upon another.

Impact is the difference made by an organisation or activity Ini Abimbola ⓒ 2017

PROJECT & PROJECT CYCLE Ini Abimbola ⓒ 2017

THE PRIMARY MOTIVATORS FOR EFFECTIVE IMPACT MEASUREMENT ARE: o Changes in funder’s requirements o Increased support for impact measurement from funders o Future project planning o Management decision making o Ability to attract new funding. Ini Abimbola ⓒ 2017

FROM MEASURMENT TO MANAGEMENT • WHAT IS IMPACT? • It measures the difference an intervention makes. • Impact assessment is the process of providing evidence that your organization or program is doing something that provides a real and tangible benefit. • WHAT IS RETURN? • It measures the funder’s benefit or gain from an investment. • WHAT IS AN IMPACT ASSESSMENT FRAMEWORK? • The activities an organisation carries out can have long-term effects on individuals, beneficiaries, their families and the broader community or social context. • An impact measurement process seeks to identify and quantify or qualify this impact or change. • An impact measurement framework provides the structure for assessing all aspects of impact.

WHY IS MEASURING IMPACT AND RETURN IMPORTANT? • It builds on the things you are doing well and provides learnings about the challenges you have faced. • It feeds into good practice and means the organisation will learn and improve ongoingly. • Just as financial accounts prove the viability of a business, impact measurement can show a robust and rigorous approach to providing sustainable community or social, economic or environmental benefits. • HOW IS IMPACT ASSESSMENT DIFFERENT? • In performance management, there are three broad concepts to explore impact – monitoring, evaluation and impact assessment. The table explains the differences:

ACTIVITY REPORTING VERSUS IMPACT REPORTING Ini Abimbola ⓒ 2017

UNDERSTANDING KEY ISSUES • Impact can be thought of as the long term results that your work has for your beneficiaries. • IMPACT is not OUTPUT Most organizations will be able to say how many people they have reached. They will probably be able to say how often or for what duration of time services are delivered, and what these services cost. This is not measuring impact. These are your outputs.

MONITORING Regular systematic collection and analysis of information to track the progress of programme implementation against pre-set targets and objectives. DID WE DELIVER? DETAILS • Clarifies programme objectives • Links activities and their resources to objectives • Translates objectives into performance indicators and sets targets • Routinely collects data on these indicators and compares results with targets • Reports progress to managers and alerts them to problems EVALUATION • Objective assessment of an ongoing or recently completed project, programme or policy, its design, implementation and results. • WHAT HAS HAPPENED AS A RESULT? • Analyses why intended results were or were not achieved • Assesses specific casual contributions of activities to results • Examines unintended results • Provides lessons, highlights significant accomplishments or programme potential and offers recommendations for improvement

DETAILS • IMPACT ASSESSMENT Assesses what has happened as a result of the intervention and what may have happened without it, at a specific point in time. Seeks to capture and isolate the outcomes that are attributable (or caused by) the programme Reviews all foregoing monitoring and evaluation activities, processes, reports and analyses Provides an in-depth understanding of the causal relationships and the mechanisms through which they operate Seeks to synthesize, compare and contrast a range of interventions in a region, timeframe, sector or reform area HAVE WE MADE A DIFFERENCE AND HAVE WE ACHIEVED OUR GOAL? Considers or identifies dimensions of impact and return on investment Provides insights, from strategy development, organizational management and operations to programme design, implementation, management and completion Makes recommendations for future improvement and

THE BASICS OF MEASUREMENT • The importance of measurement: • It provides the only consolidated source of information to showcase project progress. • It allows stakeholders to learn from each other’s experiences, building on expertise and knowledge. • It often generates reports that contribute to transparency and accountability, and allows lessons to be shared more easily. • It reveals mistakes and offers paths for learning and improvement. • It provides a basis for questioning and testing assumptions. • It provides a means for all stakeholders seeking to learn from their experiences and to incorporate insight into policy and practice. • It provides a way to assess the crucial link between investors, intermediaries and beneficiaries. • It adds to the retention and development of institutional memory. • It provides a more robust basis for raising funds and influencing policy.

TOOLS FOR IMPACT MEASUREMENT v Theory of change - often the first step in

THE THEORY OF CHANGE WHAT IT IS: A Theory of Change (To. C) shows an organisational or programme path from needs to activities, outcomes and impact. It describes the desired change and the steps involved in making it happen. Theories of change also depict the assumptions behind developmental reasoning, where possible backed up by evidence. • A good To. C can reveal: • whether your activities make sense, given your goals • whethere are things you do that do not help you achieve your goals; • which activities and outcomes you can achieve alone, or not on how to measure your impact

THE THEORY OF CHANGE Theories of change are often shown in a diagram, allowing you to see the causal links between all the steps. The development sector is complex and messy to reflect comprehensively in a diagram. But that is where the To. C approach has real value: it forces you to take a clear, simple view, crystallising your work into as few steps as possible to capture the key aspects of what you do. Theories of change grew out of evaluation planning techniques, such as logic models. They were designed to be more helpful in planning complex interventions than other methods, because they show a more detailed causal model to explain why a strategy or intervention will work.

THEORY OF CHANGE ELEMENTS Ini Abimbola ⓒ 2017

DEVELOPING A THEORY OF CHANGE What is the problem you are trying to solve? Who is What is Which What is What are What is your key your steps are the wider the audience? entry point needed to measurab benefits of long-term to bring le your change reaching about effect of work? your change? your aim for? audience? work?

USING A THEORY FOR CHANGE FOR EVALUATION Understanding all outcomes Ensuring that outcomes are realistic Understanding how outcomes are connected Understanding progress towards the final goal For an evaluation or measurement framework to be successful, it must measure the right things. Typically, a To. C shows what an organisation is trying to achieve (e. g. improve science and maths pass rates) and how it is planning to get there (e. g. through teacher interventions). Organisations can then determine if they are achieving their intended outcomes. If measurement is not based on a To. C, it risks not measuring the most important things and can therefore waste money. A To. C can identify key outcomes that must be measured. These might be intermediate outcomes that lead to many other outcomes, or they might be outcomes that distinguish this intervention from the usual practice. Many organisations have grand aims, such as alleviating poverty. Aims like these are too large for an organization to achieve on its own, so it is not sensible to think about how to measure them. A To. C helps organizations focus on concrete, defined aims and outcomes that are potentially measurable. Organizations that base their measurement on a To. C can understand how as well as whether change is happening. This means that outcome measurement can feed into the organizational strategy, to ensure that resources are allocated well. It also means that organizations can adapt their programs to what works and predict what will happen because of their activities. Some organizations' final goals cannot be measured easily. They involve change that happens too gradually or takes place in the lives of people who are difficult to track. Because theories of change show all the intermediate steps that lead to the end goal, they can help organizations work out whether they are making a difference towards that end goal. The To. C provides evidence for why these intermediate outcomes are a good way to achieve the longterm goal. This can reassure funders that the organization is making progress and can help them work

IMPACT VALUE CHAIN Inputs Activities Outputs Outcomes What is put into the venture Venture’s primary activities to produce financial and social value Results that can be measured by the venture = “social indicators” Changes (increases or decreases) to social systems Goal Alignment How well outcomes align with intended goals; activity and goal adjustment 22 Based on Clark, Rosenzweig, Long and Olsen, 2003.

IMPACT = DIFFERENTIAL CHANGE Inputs Activities Outputs Outcomes What is put into the venture Venture’s primary activities Results that can be measured Changes to social systems Essential!!! Based on Clark, Rosenzweig, Long and Olsen, 2003. Goal Alignment Activity and goal adjustment What would have happened anyway = IMPACT 23

PUTTING IT ALL TOGETHER: SOCIAL IMPACT ASSESSMENT TIPS The goal is to make a compelling case about actual value creation, NOT to achieve the largest number. • Show you will track performance and calculate impact over time. • Where are your risks and biggest challenges, are they reflected in your social impact figures? • What are your biggest causal assumptions? How will you test them? • How does your growth plan impact your SROI? • Who is your competition (the industry standard) and how do you compare? 24

Stakeholders for Impact Ini Abimbola ⓒ 2017

DEVELOPING A SUSTAINABILITY STRATEGY Ini Abimbola ⓒ 2017

SUSTAINABILITY ØWhenever the topic of Sustainability arises, the focus is on money. ØBut after several decades working in the development sector, I know without doubt that sustainability is about so much more than money. Ini Abimbola ⓒ 2017

STRATEGIES FOR SUSTAINABILITY • Strategy No. 1: Balance the Core Elements (Infrastructure) • Too often, nonprofits focus all their time and attention on two of the core elements of a successful nonprofit: Programs and resource development (fundraising). Ignoring the other four can be disastrous when trying to build sustainability. • Strategy No. 2: Establish Clear Vision and Mission (Infrastructure) • When was the last time you really looked at your vision and mission? Are you sure they are relevant? Vision is why your nonprofit exists and mission is how you achieve the mission. • Strategy No. 3: Embed Metrics throughout the Nonprofit (Infrastructure) • How will you know if you are doing a good job if you do not have a way to measure effectiveness in everything you do? That means establishing measurable outcomes and assessment processes for each one of the core elements, even within internal operations or administration. Ini Abimbola ⓒ 2017

STRATEGIES FOR SUSTAINABILITY • Strategy No. 4: Implement a Never-Ending Strategic Planning Process (Infrastructure) • Unless your strategic planning process allows for annual assessments and updates, it probably is inadequate and will not meet the rigors of the twenty sustainability strategies. • Strategy No. 5: Establish Outcomes Measurements (Program) • You must have a way to evaluate and measure the effectiveness of programs with researchbased outcomes measurements. • Strategy No. 6: Build Relevant Programs (Program) • Obviously, you cannot build relevant programs until you have a way to measure their effectiveness. But once you have those measurements, you will be better able to adapt programs to the needs of your clients and community. Ini Abimbola ⓒ 2017

STRATEGIES FOR SUSTAINABILITY • Strategy No. 7: Diversify Funding Sources (Resource Development) • If you have more than 20 percent of funding coming from any single source, you are putting your nonprofit in jeopardy if the source dries up. • Strategy No. 8: Evaluate Fundraising Cost vs Fundraising Income (Resource Development) • Too many nonprofits keep using the same fundraising strategies without considering the ratio of the costs to raise the funds compared to income raised, including staff costs. Evaluate all resource development strategies (at least annually) to make sure you are getting a valid return for the costs. • Strategy No. 9: Implement a Senior Staff Succession Plan (Administration) Ini Abimbola • Too much turnover in staff will hurt sustainability, so always work to train staff to fill the next ⓒ 2017 level up.

STRATEGIES FOR SUSTAINABILITY • Strategy No. 10: Establish Institutional Memory Procedures (Administration) • If you are hit by truck tomorrow, will anyone know enough about your nonprofit’s policies and procedures to immediately take over? Therefore, written policies and procedures are essential. • Strategy No. 11: Implement Accelerating Technologies (Administration) • Implement technology and software upgrades, which is keeping pace with strategic implementation of the vision and mission of the nonprofit across all six core elements. • Strategy No. 12: Outsource (Administration) • Based on cost benefit analysis, figure out when it makes sense to outsource: web management, property management, accounting, consulting, facilitation, Human Resources, Ini Abimbola ⓒ 2017 etc.

STRATEGIES FOR SUSTAINABILITY • Strategy No. 13: Implement a Succession Plan (Board and Volunteer Development) • As with staff, many volunteer positions will benefit from succession planning, sometimes three to five years in advance. • Strategy No. 14: Establish Regular Board Training (Board & Volunteer Development) • Board members are responsible for the legal governance of your nonprofit. Doesn’t it make sense to provide them with regular reminders of their responsibilities? • Strategy No. 15: Recruit High Capacity Volunteers (Board and Volunteer Development) • Highly educated and experienced volunteers can be invaluable to your nonprofit if you provide them with meaningful experiences. But that requires solid recruitment, training, recognition and dismissal policies and procedures for all three types of volunteers: Board, Ini Abimbola ⓒ 2017 committee and program.

STRATEGIES FOR SUSTAINABILITY • Strategy No. 16: Integrate Marketing and Brand Identity Throughout the Organization (Marketing) • It isn’t just about publicity, but about marketing the passion, vision and mission of what you do and how well you do it. • Strategy No. 17: Demonstrate Value to the Community (Marketing) • What does the passion and mission of your nonprofit mean to the community? What difference does it make? • Strategy No. 18: Build Competitive Advantage (Community Involvement) • What sets you apart from other similar organizations? Build on that advantage. Ini Abimbola ⓒ 2017

STRATEGIES FOR SUSTAINABILITY • Strategy No. 19: Leverage Assets Through Collaboration (Community Involvement) • Become a part of cross-sector, community problem-solving efforts to enhance what you are doing and to bring more resources to the table. • Strategy No. 20: Establish Leadership Role in Primary Mission (Community Involvement) • If you are good at what you do, then figure out how to become a community leader in that issue. • When you look closely at these 20 strategies, you can see they are probably things you already know, but did not realize how collectively they can greatly increase sustainability for your nonprofit. Unless you consciously try to address each one in your strategic planning and daily work plans, you will be wondering why your nonprofit is on life support and not Ini Abimbola ⓒ 2017 sustainable for the long haul.