How to start measuring impact, the basics - what your business can learn from the world of non profit
Impact is a cornerstone of the third sector. And, if you are a purpose-driven company, it should be for you too.
93% of businesses claim to be on the purpose journey
2/3rds do not believe their company has a positive impact on society
In reality, few are planning, measuring, and communicating their social impact.
Purpose & impact go hand in hand
Take Lloyds as an example, their purpose is to Help Britain Recover. They focus on key areas where their business can have the greatest impact. All their initiatives, internal and external, support their purpose. This includes their work with non-profit. Needless to say, they measure their impact.
Purpose, planning, and stories
Sure, you’re not Lloyds. You don't have a CSR team. You aren't going to be creating a lengthy ESG report. But, there are some basics that are worth bearing in mind.
Here are some easy ways to get started, taken from the world of non-profit.
Tie your impact measures to your purpose
What change do you want to see? What activities have you planned to help you get there? If purpose (beyond profit) is about creating a positive impact in society, all activities should support this journey. As with the Lloyds example, evidence helps reinforce their commitment and progress to ‘Help Britain Recover’
Measure the right stuff
Think about your audience priorities. What story are you trying to tell about your business? As RNIB say, ‘The first stage of impact is not measurement, but planning’. Too many businesses we see measure charity partnership inputs (time and money) not impact (outputs and outcomes).
Move beyond numbers
I'm a big believer in the power of stories to convey information (and impact). They breathe life into numbers. Most charities use a combination of human stories and numbers to communicate the need and impact of their work.
Lastly, remember impact measurement is a journey, not a destination. As the diagram shows, the aim is to document your progress, learn and improve.
As mentioned in this post here, businesses are now waking up to the fact that it is better to be imperfect and transparent than quiet. That's the best way to build trust.
At Cause for Change, we believe in creating more impactful partnerships between business and non-profit. If you are interested in finding out more, we’d love to hear from you.