PPQ extras Issue 6, ESSAY ONLY | Page 5

As one respondent put it: “Impact measurement information is a great motivator for the staff team, validating their work and helping them make the case for changes they see as important to improve services provided.” Notably, only 28% of respondents stated that impact information was crucial to their board, with some larger organisations for example establishing Impact Committees as subcommittees of the board. These can play a useful role in analysing impact information and using this to help shape business strategy. Almost half of organisations responding produce an annual social impact report; around a fifth of these are externally verified. This likely reflects the larger size of organisations responding. Almost half of the organisations thought periodic external verification or assurance would be valuable for reporting to external stakeholders and slightly fewer thought it would be of value internally; just over one-third did not think that this would be useful or were unsure. However, the cost of external verification was seen as a major barrier. There were also fears about standards being imposed from outside. Consolidation of tools and approaches: The last decade has seen the growth of specialist organisations and an infrastructure to support impact measurement (much of it building on long established approaches for monitoring and ONLY evaluation), but many practitioners find the range of options confusing. There was a call for more standardisation and consolidation. As one FIND IMPACT respondent put it: “A simple and consistent MEASUREMENT EASY method of evaluation needs to be introduced and not every Tom, Dick and Harry coming up with their own version and trying to convince the world their one is best.” Others highlighted the need to support organisations in selecting the most appropriate impact measurement approaches and tools that fit with the operational reality of organisations: “There is a huge burden to find the right 2% produce an annual social impact report; around a fifth of these are externally verified. measurement tool for the organisation and context, which means that it can fall lower down on the priority list as it’s hard to achieve.” There have been some notable (and well-accessed) resources developed to support this process, for example in Inspiring Impact (www.inspiringimpact.org), the ‘Prove/Improve’ website (www. proveandimprove.org) and Big Society Capital’s Outcomes Matrix (www.bigsocietycapital.com/impact-matrix). However, it seems that more is needed in this area to fit tools with purpose and capacity, and to provide independent guidance on how to select the appropriate approach for the organisation that is seeking to measure impact. The terminology and technical focus of impact measurement can also be alienating. Several respondents highlighted the need to build the capacity of charities and social enterprises to be able to use the available tools. There was a call for “impact measurement costs to be allowed within funding bids” and to focus on developing the impact measurement skills of charity and social enterprise staff “rather than growing an industry of consultants retaining knowledge and expertise”. That is not to say specialists are not needed. Nearly 40% of respondents had received external technical assistance to develop an impact assessment framework. However, only 2% find impact measurement easy. For the majority (85%) it is challenging but worthwhile and for 11% too complex and difficult. THE ESSAY ­— ADDRESSING THE CHALLENGES OF IMPACT MEASUREMENT Whilst we see relatively high levels of awareness, recognition of importance, collection and use of impact data, several challenges were made about current approaches to impact measurement. These do not claim to be representative of the views of charities and social enterprises in general, rather they were raised as comments by survey respondents. Our aim is to share these voices as a reflection of frontline perspectives that we believe are a constructive contribution to the debate and development of impact measurement and management. Almost half of organisations responding Need for Proportionality: Often the literature on impact measurement fails to distinguish between what’s appropriate for different types of organisation and different stakeholders. For example, a community enterprise may have a very different need to measure its impact compared to a large-scale charity delivering a commissioned service that claims better outcomes or a social business operating at scale to tackle a specific social problem that has raised significant investment. As one community enterprise put it: “We are a successful small social enterprise but we do not have the resource to commit too much time to measuring our impact. We have no investors nor shareholders and the community we serve do not ask any questions regarding social impact.” This begs the question: what is the role of impact measurement for this organisation? Getting clear on motivation – why an organisation wants to measure its impact – is an important first step in deciding what makes sense to do given the form and stage of development of the organisation. PPQ | 49