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Despite all the demands that agents of change must meet, impact monitoring and evaluation are now unavoidable. And that's one of the focuses of Transforma.aí's work.
It's common for us, as active agents of change, to be focused on our tasks, which in most cases involve juggling tight budgets, managing minimal staffing levels in our organizations, and remaining committed to our causes.
It turns out that, whether due to pressure from funders or a push from the ecosystem itself, the fact is that monitoring and evaluating the impacts generated by our projects is here to stay!
The focus of Transforma.aí's work is to transform realities, and we know that, to achieve this, it's essential to plan the impacts we intend to promote. Therefore, in this first article, produced collaboratively by our team, we share our experience working alongside Casa do Impacto, which accepted the challenge of better understanding the impacts they promote within the ecosystem of entrepreneurship and social innovation in Portugal.
Before we dive into the process, we'd like to point out that there's no one-size-fits-all approach to assessing the impacts. There's what's possible and what we can monitor, depending on the size of our legs.
Having said that, we invite you to learn about the four steps we took towards planning and evaluating the impact of Casa do Impacto. They're: Diagnosis; Theory of Change; Indicator Matrix and Balanced Scorecard (BSC).
1 – Diagnosis
In the initial phase, it's crucial to understand where the organization is currently positioned. In this sense, our methodology considers diagnosis as the first step. Through analysis of the information provided, as well as interviews with leadership and key representatives of the organization, it was possible to understand the current scenario and the main opportunities to maximize impact.
“Creating an impact assessment strategy for a Hub like Casa do Impacto is fundamental to measuring the effectiveness of our initiatives, ensuring concrete results, continuous improvement, and the generation of positive and sustainable changes in the community and the environment,” says Inês Sequeira, Founder and Director of Casa do Impacto.
2 – Theory of Change
The diagnostic phase allowed us to define the next step: the construction of the Theory of Change. You've probably heard of it; it's a tool that's gaining traction in the world of impact initiatives.
In short, the Theory of Change aims to strengthen organizational transparency, as well as its relevance, commitment, and the construction of a clear narrative that communicates the impacts generated.
In this stage, we worked with Casa de Impacto for three intense days to co-create a theory suited to the reality of their field of activity.
“The creation process was intense and rich in learning. The methodological approach was essential to promote a deep understanding of the complexities inherent in developing a solid transformation strategy that will certainly provide a significant, positive and lasting impact from CI's initiatives,” explains Nuno Comando, Head of Incubation, Acceleration and Communication at Casa do Impacto.
3 – Indicator Matrix
After constructing the Theory of Change, which involved an initial diagnosis and the definition of the impacts and the paths needed to achieve them, we moved on to developing an Indicator Matrix. This tool enables the measurement and monitoring of short- and long-term results, thus highlighting the impacts that the organization is promoting.
“It was a demanding, introspective, and simultaneously strategic process, essential for any organization to evaluate its direction and the changes it produces in society,” declares Gustavo Freitas, Head of Impact Investing at Casa do Impacto.
4 – Balanced Scorecard (BSC)
We sought a tool in business management that ensures the project development and selection process is aligned with the organization's strategic planning and lines of action. Our customized Balanced Scorecard (BSC) not only measures the supported projects but also provides managers with the necessary evidence to justify investments made, ensuring transparency and governance.
Casa do Impacto's about to test a tool that will give the organization the opportunity to guide its operational strategies, considering projects that are already being implemented and new initiatives that will be supported in the country.
Our experience has shown us that the path towards standardizing the impact assessment process is long, questionable, but, on the other hand, entirely possible!
May we ensure that our actions not only make a difference in the world, but also that this difference is measurable, sustainable, and truly transformative!
Positive impacts in 2024!
