Interactive resources for incubators and accelerators
Interactive resources for incubators and accelerators
Interactive resources for incubators and accelerators

FI Guide

Dimensions of Impact

This section provides an overview of a framework from the Impact Management Project (IMP) – a forum for building global consensus on how to measure, manage and report impact. It looks at the IMP’s five dimensions of impact and the data needed to make an assessment of each. It also looks at three types of impact and how they relate to the intentions of the intermediary or enterprise.

The Five Dimensions of Impact

After hundreds of in-person and virtual conversations, the IMP reached a consensus that impact can be deconstructed into five dimensions: What, Who, How Much, Contribution and Risk.

WHAT

Tells us what outcomes the enterprise is contributing to, are they positive or negative, and how important the outcomes are to stakeholders.

Data needed to make an assessment:

Outcome level: The level of outcome experienced by the stakeholder when engaging with the enterprise

Outcome threshold: The level of outcome that the stakeholder considers to be positive or ‘good enough’

Importance of outcome to stakeholders: The stakeholder’s view of whether the outcome they experience is important

WHO

Tells us which stakeholders are experiencing the outcome and how underserved they were prior to the enterprise’s effect.

Data needed to make an assessment:

Baseline: The level of outcome experienced by the stakeholder prior to engaging with the enterprise

Stakeholder characteristics: Socio-demographics and behavioural characteristics of the stakeholder

Boundary: The area or location where the stakeholder experiences the outcome

HOW MUCH

Tells us how many stakeholders experienced the outcome, what degree of change they experienced, and how long they experienced the outcome for.

Data needed to make an assessment:

Scale: The number of individuals experiencing the outcome

Depth: The degree of change experienced by the stakeholder

Duration: The time period for which the stakeholder experiences the outcome

CONTRIBUTION

Tells us whether an enterprise’s and/or investor’s efforts resulted in outcomes that were likely better than what would have occurred otherwise.

Data needed to make an assessment:

Depth counterfactual: The estimated degree of change that would occur anyway for the stakeholder

Duration counterfactual: The estimated time period that the outcome would last for anyway

RISK

Tells us the likelihood that impact will be different than expected, and that the difference will be material from the perspective of people or the planet who experience impact.

Data needed to make an assessment:

Risk type: The type of risk that impact is exposed to

Risk level: The level of the risk

The Three Intentions of Impact

The IMP states that an enterprise’s intentions relate to three types of impact: A, B or C

A: Avoid Harm

At a minimum, enterprises can act to avoid harm for their stakeholders.

For example, decreasing their carbon footprint or paying an appropriate wage.

Reflection

Such ‘responsible’ enterprises can also mitigate reputational or operational risk (often referred to as ESG risk management), as well as respect the personal values of their asset owners.

B: Benefit Stakeholders

Enterprises can actively benefit stakeholders.

For example, proactively up-skilling their employees, or selling products that support good health or educational outcomes.

Reflection

These ‘sustainable’ enterprises are doing so in pursuit of long-term financial outperformance (often referred to as pursuing ESG opportunities).

C: Contribute to Solutions

Many enterprises can go further — they can use their capabilities to contribute to solutions to pressing social or environmental problems.

For example, enabling an otherwise underserved population to achieve good health, educational outcomes or financial inclusion, or hiring and skilling formerly unemployed individuals.

Reflection

A fourth category includes enterprises that do cause harm, or that may cause harm that they aren’t aware of because they do not measure for it.

TOOL / EXERCISE

B Impact Assessment

  • 1.

    A tool for companies to measure their impact across five key impact areas:

     

    – Community

    – Environment

    – Workers

    – Governance

    – Customers

     

    Why should you use it?

     

    Comprehensive: Considers all stakeholders and focuses on the positive impact created (or potential for positive impact).

     

    Objective and aspirational: Questions are verifiable, stakeholder-driven, and independently governed.

     

    Standard yet adaptive: Tailored based on a company’s sector, size, and location. Benchmarks are set for impact area, topic and question.

     

    Operations and business model: Includes questions on the operations of a company and questions relating to the business model impact.

     

    Source: B-Lab

Resources

  • Impact Management Project - Resources

    A database of IMP resources

    View

  • Impact Management Project - WHAT

    An in-depth look at the ‘What’ dimension

    View

  • Impact Management Project - WHO

    An in-depth look at the ‘Who’ dimension

    View

  • Impact Management Project - HOW MUCH

    An in-depth look at the ‘How Much’ dimension

    View

  • Impact Management Project - CONTRIBUTION

    An in-depth look at the ‘Contribution’ dimension

    View

  • Impact Management Project - RISK

    An in-depth look at the ‘Risk’ dimension

    View

  • B Impact Assessment

    A B-Corp tool for companies to measure their impact

    View

  • Content Contributed By

    The Impact Management Project (IMP) is a forum for building global consensus on how to measure and manage impact. They convene a Practitioner Community of over 2,000 organisations to debate and find consensus on technical topics, as well as share best practices. They also facilitate the IMP Structured Network – an unprecedented collaboration of organisations that, through their specific and complementary expertise, are coordinating efforts to provide complete standards for impact measurement and management.

     

    impactmanagementproject.com

     

     

    Spring exists to change the world through entrepreneurship. A certified B Corporation, Spring supports entrepreneurs who are using business as a force for good through incubation, acceleration, leaders roundtables, funding training, workshops, and ecosystem development advisory services. Headquartered in Vancouver, Canada, Spring supports entrepreneurs via City Partners in over 10 countries around the world. Spring has supported more than 700 entrepreneurs to launch more than 300 businesses in less than five years.

     

    spring.is

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Value for Money

A method to measure how efficiently a program converts inputs into outcomes