How to Measure Your Social Impact

Last month, we asked the question: what is social innovation? Social innovation means different things to different people, but what it really comes down to is making a social impact. So how do you know if you’ve made a succesful social impact? Measuring social impact is almost as tricky as defining social innovation. As we’ve discussed here, measuring any kind of impact from innovation can be complicated. Innovation, by nature, moves quickly. This means that testing assumptions and measuring the actual impact of your work also needs to move quickly as well. In order to move forward in the most effective way, you need to find an effective way to measure your impact.

1. Define what you are measuring

What problem is your innovation trying to solve? For example, if your product is affordable eyeglasses for people living in under-developed countries, you are not measuring how many eyeglasses you have sold, but weather or not having access to eyeglasses has improved the quality of life of the customers.

This is a key distinction between a social enterprise or innovation and a traditional for-profit company. If many people are buying your eyeglasses but their quality of life has not improved, you may have a successful business but you have not created a positive social impact.

This is important, because you want to measure your social impact, not your profit. Think about what your goal was when starting the project, as well as what assumptions you made about the benefits of your project.

2. What is the purpose of your measurements

Is the measurement of impact solely for internal purposes? Or do you need to show donors or external stakeholders the results as well? While your measurements will help shape the direction of your product or company, it is also a piece of marketing material. When potential donors, investors, or customers are interesting in purchasing your product or investing in you, they will want to see some proof that there is going to be accountability for the money.

Even if the measurement is only for internal purposes, it is helpful for team members to see the direct impact they are making in the lives of others.

Once you’ve decided who the impact report will be for, it will help you shape which metrics and which presentation form you use.

3. What metrics should you use

There are many metrics you can use to measure your impact. The best strategy is to use several different measurements. Combining both qualitative and quantitative measures will go the farthest. Delivering numbers and statistics to show your impact is great. For example, communities with eyeglass shops have 10% lower unemployment rates due to improved vision is a useful measurement. However, using stories and case studies always adds more meaning to a report.

4. Develop an ongoing system for review

In the world of innovation, we are always looking for ways to do things better. Even if you have measured a positive impact after a trial of your product or service, it doesn’t mean you should stop looking for ways to do things more efficiently. Developing a system for monitoring your impact over time will allow you to quickly implement new ideas and see what works and what doesn’t. Allowing community members and volunteers to be a part of this process- viewing progress and inputing their own ideas, can help your innovation grow exponentially.

It’s important to remember not to get to bogged down in the process. The reason why we love open innovation is how quickly things can move when you eliminate the gate keepers. However, measuring your impact is important to the longevity and success of your project.

How do you measure your social impact?

For more resources on measuring your social impact, check out this informative book on measuring and improving social impacts