It's common for those of us who are active agents of change to be focused on our tasks, which in most cases involve juggling lean budgets, managing the minimum number of professionals in our organisations and remaining committed to our causes.
It turns out that, whether due to pressure from funders or an impulse 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, in order to do this, it is essential to plan the impacts we want to promote. So, in this first article, produced by several hands by our team, we share our experience with Casa do Impacto, which accepted the challenge of understanding more and better the impacts they promote in the entrepreneurship and social innovation ecosystem in Portugal.
Before we dive into the process, we'd like to point out that there is no ready-made recipe for evaluating impacts. There's what's possible and what we can monitor, depending on the size of our legs.
That said, we invite you to learn about the four steps we took towards planning and evaluating the impact of Casa do Impacto. They are: Diagnosis; Theory of Change; Indicator Matrix and Balanced Scorecard (BSC).
1 - Diagnosis
In the initial phase, it is essential to understand where the organisation is. In this sense, our methodology includes diagnosis as the first step. By analysing the information provided, as well as interviews with the organisation's leadership and key representatives, it was possible to understand the current scenario and the main opportunities for boosting impact.
"Creating an impact assessment strategy for a Hub like Casa do Impacto is fundamental to measuring the effectiveness of our initiatives, guaranteeing 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 diagnosis phase provided the basis for the next step, the construction of the Theory of Change. You've probably heard of it, it's a tool that is gaining ground in the world of impact initiatives.
In a nutshell, the Theory of Change aims to strengthen the organisation's transparency, as well as its relevance, commitment and the construction of a clear narrative that communicates the impacts generated.
At this stage, we worked with Casa de Impacto for three intense days to co-create a Theory that was appropriate to the reality of their area 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 of CI's initiatives," explains Nuno Comando, Head of Incubation, Acceleration and Communication at Casa do Impacto.
3 - Indicator Matrix
After building the Theory of Change, which involved an initial diagnosis and defining the impacts and the paths that will be needed to achieve them, we moved on to developing an Indicator Matrix. This tool makes it possible to measure and monitor short- and long-term results, thus pinpointing the impacts that the organisation is promoting.
"It was a demanding, introspective and at the same time strategic process, essential for any organisation to assess its direction and the changes it produces in society," says Gustavo Freitas, Head of Impact Investment at Casa do Impacto.
4 - Balanced Scorecard (BSC)
We turned to business management to find a tool that ensures that the process of developing and choosing projects is aligned with the strategic planning and lines of action of the organisation itself. In addition to measuring the projects we support, the BSC, which we customised, provides managers with the necessary evidence to justify the investments made with transparency and governance.
Casa do Impacto is about to test the tool, which will give the organisation the opportunity to guide its action strategies, taking into account the projects that are already being carried out and the new initiatives that are yet to be supported in the country.
Our experience has allowed us to see that the journey towards standardising the impact assessment process is long, questionable, but, on the other hand, completely 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!
Good impacts in 2024!
