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Social Impact Measurement
by Jamil Alkhatib
17/1/2018
Session Content
• Introductions and definitions
• Why measure the social impact
• How to measure
• The right questions (Setting the Objectives)
• Measures levels
• Social Return on Investment
IMPACT
Impact Definition
• The action of one object coming forcibly into
contact with another.
• A marked effect or influence
Areas of Impact
Economic
SocialEnvironmental
Why measure the impact?
Why measure the impact?
• Communicate your value to stakeholders
• Improved programme management
• Enhanced attention to the social, economic and environmental
What Gets
Measured,
Gets Valued
Before We Measure
OUTCOMES
INPUTS
ACTIVITIESACTIVITIES
OUTPUTSOUTPUTS
IMPACTS
Social value
Possible targets for measurement in a
social enterprise
We expect accountability from
social enterprises, to show us
they are accountable they invest
in evaluation to measure
outcomes or impact and this
informs about the enterprise
effectiveness.
Definitions
• Inputs - resources invested in your activity
• Outputs - the direct and tangible products from the activity,
i.e., people trained, trees planted, products sold
• Outcomes - changes to people resulting from the
• Activity, i.e., a new job, increased income, improved stability
in life
• Impact = Outcomes (less) an estimate of what would have
happened anyway
Impact Tree
• Impact
• Outcome
• Output
• Activities
• Input
How do we measure outcomes & impact?
• Continuous measures
–Precise, numeric measures using quantitative data
• Rating scale
–For example, a five-point scale from “very effective”
to “very ineffective”
• Binary
–A “yes or no” choice: did something occur, or not?
How do we measure outcomes & impact?
• Developmental
–Comparing performance to the schedule or timeline in
a business plan.
• Benchmark
–Comparing performance to another organization, like a
leader in the field
• Historic
–Comparing performance to an organization’s own past
achievements
Social Return on Investment (SROI)
• Social Return on Investment or SROI attempts to
quantify both economic and social impacts of social
enterprises
• Two components of SROI:
–Enterprise value
–Social purpose value
Calculating SROI
• Enterprise value
+ Value of sales
- Cost of good and services sold
- Operating expenses
• Social purpose value
+ Grants and gifts
- Fundraising and grant writing costs
+ Social cost savings
- Social operating costs
+ Increase in tax revenue
- Debt carried by social enterprise
• = Blended value
Program Innovation and Entrepreneurship
(PIE)
German Jordanian University
Building M, Office 003 and 006 (Ground
Floor)
Tel. +962-6-429-4882
/GJUPIE
@GJU_PIE
PIE GJU
Pie@gju.edu.jo

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Social Impact Measurement

  • 1. Social Impact Measurement by Jamil Alkhatib 17/1/2018
  • 2. Session Content • Introductions and definitions • Why measure the social impact • How to measure • The right questions (Setting the Objectives) • Measures levels • Social Return on Investment
  • 4.
  • 5. Impact Definition • The action of one object coming forcibly into contact with another. • A marked effect or influence
  • 7. Why measure the impact?
  • 8. Why measure the impact? • Communicate your value to stakeholders • Improved programme management • Enhanced attention to the social, economic and environmental
  • 11. OUTCOMES INPUTS ACTIVITIESACTIVITIES OUTPUTSOUTPUTS IMPACTS Social value Possible targets for measurement in a social enterprise We expect accountability from social enterprises, to show us they are accountable they invest in evaluation to measure outcomes or impact and this informs about the enterprise effectiveness.
  • 12. Definitions • Inputs - resources invested in your activity • Outputs - the direct and tangible products from the activity, i.e., people trained, trees planted, products sold • Outcomes - changes to people resulting from the • Activity, i.e., a new job, increased income, improved stability in life • Impact = Outcomes (less) an estimate of what would have happened anyway
  • 13. Impact Tree • Impact • Outcome • Output • Activities • Input
  • 14. How do we measure outcomes & impact? • Continuous measures –Precise, numeric measures using quantitative data • Rating scale –For example, a five-point scale from “very effective” to “very ineffective” • Binary –A “yes or no” choice: did something occur, or not?
  • 15. How do we measure outcomes & impact? • Developmental –Comparing performance to the schedule or timeline in a business plan. • Benchmark –Comparing performance to another organization, like a leader in the field • Historic –Comparing performance to an organization’s own past achievements
  • 16.
  • 17. Social Return on Investment (SROI) • Social Return on Investment or SROI attempts to quantify both economic and social impacts of social enterprises • Two components of SROI: –Enterprise value –Social purpose value
  • 18. Calculating SROI • Enterprise value + Value of sales - Cost of good and services sold - Operating expenses • Social purpose value + Grants and gifts - Fundraising and grant writing costs + Social cost savings - Social operating costs + Increase in tax revenue - Debt carried by social enterprise • = Blended value
  • 19. Program Innovation and Entrepreneurship (PIE) German Jordanian University Building M, Office 003 and 006 (Ground Floor) Tel. +962-6-429-4882 /GJUPIE @GJU_PIE PIE GJU Pie@gju.edu.jo