The Impact Driver

STEP 2

Define a Theory of Change

The foundation for all of this work is a clearly articulated theory of change and logic model, which most institutions may already have clearly defined as it relates to their academic vision. For specific projects, programs, or interventions relating to your role as Impact Driver, your institution can implement a standard process to develop a theory of change and logic model to better align your work to the impact you want to make on your students, the community, and the world.

As stated in Step 1, a common pitfall is defining a solution that is looking for a problem. To set off on this work, it is important to clearly define the problem and exactly who it is affecting to ensure any solution ultimately helps address that problem and the target audience(s) experiences the benefit.

Once the problem and affected stakeholders have been identified, you can start to build out a theory of change and logic model outlining the impact you would like to have and how you can achieve that impact. The key components of a Theory of Change and Logic Model are:

Although your instinct may be to start with Inputs and Activities that you know exist, the preferred approach is starting with the Impact (aka, the ultimate goal), then working backwards to identify Outcomes, Outputs, Activities, and Inputs. This approach ensures that you are not only clearly defining your impact vision but also indicating specifically how you are going to measure it’s achievement. Once you have defined that end state and the measurable outputs and outcomes, you can then evaluate the Inputs and Activities that are proven to help you achieve them. It is incredibly valuable at this stage to explore evidence-based approaches and interventions that have been used to create this impact in other organizations and communities. 

There are myriad publications on this topic. Here are a few resources that can help with this exercise and a broader evaluation approach.

STEP 3

Select an Impact Measurement Framework(s)

Once you have defined your theory of change, your institution will be positioned to advocate for impact and provide the tools necessary to help measure it alongside local ecosystem members. Knowing where to engage requires an understanding of what kinds of impact metrics currently exist, what they measure, and how they align to the outputs and outcomes you have identified. In this section, we will explore the levels at which you can measure impact and  the existing frameworks and resources available.

There are myriad impact measurement frameworks that cover a very broad range of industries, service areas, and stakeholder groups. Here we lay out a few levels to be considered for impact measurement and some frameworks that are relevant/applicable to each. In subsequent steps, we will talk about how to build processes and systems to facilitate the collection, aggregation, and publication of these metrics.

At the end of the day, what framework you use and whether you even use a framework at all does not matter. What matters is that your institution—whether individually or part of a working group—is conscientious about the impact of projects on the community and tracks metrics that can gauge the success and the shortcomings of the projects. 

STEP 4

Define Goals & Ownership

Once you’ve established a theory of change, logic model, and impact measurement framework, now comes the hard part. Identifying goals, and clear ownership and reporting structures to ensure that over time you are achieving the impact you have envisioned.

If these responsibilities are placed on a select few, it will result in a culture of chasing people for data and updates, whereas if the impact strategy is embedded into the organization’s culture and standard operating procedures, less overhead will be required to deliver the same continuity and consistency of reporting. In addition, allowing functional, program, project, and community leadership to participate in the goal-setting process will ensure that there is buy-in by the staff and stakeholders that are expected to deliver on the results.

Although this step may seem operational in nature, it actually helps build a culture where all stakeholders are looking for ways to increase impact for the surrounding community laying the foundation for shared success, ongoing collaboration, and strong long-term relationships.

Many project teams look to set big, ambitious impact goals that may not always align to a discrete community need or benefit. In these cases, it is always beneficial to focus on the metrics that matter to the community and how they will measure or realize their success. In these cases, an agreed upon goal with the community will do far more to create goodwill and long-term partnership than an aspirational goal where the community does not see or experience the value.

Although goals will be unique to each intervention, there are some universal goals/frameworks that can be referenced to assist your organization in aligning goals to existing standards.

Sample Goal Frameworks

• UN Sustainable Development Goals: The UN SDGs have several ambitious goals defined that can serve as guiding principles depending on the areas of focus your organization chooses.
• B-Corp Assessment: The BCorp Assessment actually gives you the ability to set and track to targets that you have for each of their assessment criteria. Benchmark Documents – Future-Fit Business: Future-Fit Business breaks their goals down into two categories, Break-Even and Positive Pursuit. In some cases, a first step needs to be a change in current behaviors to set the organization up for future success.

STEP 5

Implement & Publish Reporting

Data Collection

Once goals and clear ownership of those goals has been identified, organizations can focus on incorporating impact metrics and reporting into their existing systems, such as finance and accounting, human resources, vendor management, facilities, etc., to reduce the overhead required to consistently track and report on impact metrics. A small investment of time and energy to incorporate metrics into existing systems upfront will facilitate consistent, accurate, and streamlined reporting in the long term.

In addition, the organization can assist its other stakeholder groups in doing the same. For example, it can work with project teams to implement reporting at the front end of projects to make recurring reporting easier throughout the project lifecycle. They can work with vendors to request employment and diversity data, and they can work with partners to capture specific program level data.

All of this is to say, once you’ve identified what you want to measure and who owns each metrics, you can work within existing teams and systems to report on those metrics in a repeatable, scalable way.

Impact Reporting

Each stakeholder group will have its own interest and audience when it comes to impact reporting. For the institution, the most effective tact is to determine a recurring reporting scheduled, e.g., quarterly briefs, annual reports, and define a report that satisfies the majority of audiences. In most cases, highly specialized reporting is only required in a select few instances where specific financing requires it.

The most effective impact reports combine quantitative and qualitative results. The quantitative versions typically include a dashboard style report highlighting progress towards goals stated in the theory of change and logic model, which is then supplemented by specific project/program data highlights. The quantitative portion should be focused on telling the stories of each stakeholder group and how the impact delivered through the metrics was realized in the benefits they experienced.

In multi-party engagements, the partners should agree on the recurring reporting schedule and clearly define what will be published collaboratively and what will be published by each participating organization.

National Data Registry

At present, there is no national data repository around completed Opportunity Zone projects. Local market makers (like Opportunity Alabama) are working with the Economic Innovation Group and the Sorenson Impact Center to aggregate as many known data points as possible into some kind of central hub – but those efforts are preliminary and need a strong, national coalition in support. If you want to be a part of the team that helps to build a voluntary dataset reporting on common metrics (particularly for real estate projects or Opportunity Zone deals), please have your list of projects ready and reach out to us.

STEP 6

Improve Impact

Once you’ve extracted enough impact data about a project to determine its potential benefit to a community, get faculty, staff, and even students engaged in thinking about how to make that same project even more impactful. On real estate deals, this could mean anything from hiring more minority and women contractors and integrating green design elements to adding a space for childcare or requiring tenants to pay retail employees a living wage. On operating business deals, it could mean creating upskilling programs for low-wage employees or switching to more eco-friendly vendors up the supply chain. Tools like Shift’s Impact Appraisal or university-led impact charrettes can help bring community, higher ed, and project teams together to think through how a project can better meet local needs. 

This process can and should be integrated with recurring performance and project reviews and stakeholders should be encouraged to identify opportunities for improvement and those improvements should be tracked and celebrated. With each success in creating more impact, stakeholders relationships will strengthen, and the commitment to the community will only increase over time.

STEP 7

Influence Policy

There is an incredible opportunity for institutions to advocate for and influence policy as it relates to their adjacent communities and neighborhoods that could have far reaching implications for underserved communities nationally if implemented successfully. Institutions like The Beeck Center at Georgetown University have demonstrated national leadership in helping to inform policy reform through initiatives like User-Centered Policy Making.

Within your community, you can start by understanding local policy barriers or challenges, and advocating for their change, to support projects and programs not only within the institution but across your stakeholder groups. Using your presence and staff to help local non-profits, partners, and advocacy groups advance community-supporting policy could provide long-term benefits to your community and improve the strength of stakeholder relationships.