Impact Measurement and Management Process
09 August, 2024
Material created with the support of EVPA
The European Venture Philanthropy Association (EVPA) has developed a five-step process for measuring and managing impact, which can be utilized by both investors and investees. This system is a cyclical process that organizations should repeatedly go through to continually improve their impact strategies.
- Step 1: Setting Objectives. Organizations need to establish long-term goals at both the investor and investee levels, with a clear understanding of the expected outcomes, including the motivation, resources, and timelines for measuring impact.
- Step 2: Stakeholder Analysis. At this stage, it is crucial to engage all key stakeholders who are or could be involved in the project. Investors should decide how and when to interact with them.
- Step 3: Developing the Evaluation Methodology. The process of measuring achievements is based on long-term goals and includes defining intermediate and final results, initial resources, and selecting SMART indicators to measure progress.
- Step 4: Verifying and Assessing Impact. Investors can use this stage to refine their target outcomes and corresponding metrics to enhance the level of social impact. It is important to involve key stakeholders, including the ultimate beneficiaries, who can best determine the value of the achieved results.
- Step 5: Reporting. This involves continuous monitoring and reporting, through which investors transparently demonstrate to stakeholders and the public whether the achieved progress aligns with the set goals
Implementing this system promotes more transparent and effective impact management, aiming to achieve long-term social goals and harmonize international standards in the field of social investing