Building on our recent article exploring the importance of impact tracking for VCSEs, we have compiled a set of practical guidance notes to help organisations begin their impact evaluation journey.
Measuring your impact can feel like a daunting undertaking, and there is no single prescribed approach. Options for a credibly and robust external evaluation range from commissioning a specialist social impact consultancy, like RealWorth, to developing an in-house evaluation framework. For organisations that want to dip their toe in before committing more thoroughly, the following five steps provide a straightforward and accessible starting point before reaching out to an external consultant.
Define your theory of change: Begin by clarifying your organisation's ultimate goals: what changes do you aim to create for your stakeholders, and what activities are you undertaking to bring those changes about? This will form the foundation for identifying the outcomes you need to track. See here for tips on how to write your theory of change.
Audit your existing data: Review the information you currently collect and assess whether any of it speaks to your impact. Where relevant data already exists, consider how your current processes could be strengthened or extended to incorporate more impact-focused measures.
Identify stakeholder touchpoints: Map out the key moments within your project or programme at which it would be appropriate to gather feedback from stakeholders about the changes they are experiencing. Build data collection opportunities directly into these touchpoints.
Begin gathering evidence: Deploy your chosen data collection methods, which may include paper or online surveys, structured interviews, or observational techniques. Do this at regular intervals throughout the project lifecycle (ideally at the beginning, midpoint, and end).
Collate, analyse, and interpret your findings: Bring together the data collected and examine how stakeholders' experiences have evolved over time. Look for patterns across different groups, taking into account factors such as demographics and geography.
These five steps represent a practical and proportionate approach to impact measurement. By maintaining a clear focus on the tangible changes your work creates in stakeholders' lives, you can build a meaningful picture of your social impact, one that goes beyond financial outputs.
For organisations with greater capacity, more sophisticated methodologies such as Social Return on Investment (SROI) may be worth exploring. However, this framework offers a solid and accessible foundation for VCSEs operating under budgetary constraints who want to dip their toe in before committing more thoroughly
To discuss your organisation's approach to impact measurement in more detail, please do not hesitate to contact us at askus@realworth.org.