Lecture Notes on Theory of Change and Impact Measurement

Introduction

• Speaker: Chris Gaines, Lead Trainer at SoPact.
• Audience: Non-profit social enterprises, accelerators, or impact funds.
• Purpose: To build an effective impact strategy using the Theory of Change (TOC) framework.

Frameworks for Impact Measurement

• Primary Frameworks:
  • Theory of Change (TOC)
  • Five Dimensions of Impact by the Impact Management Project

Theory of Change (TOC)

• Definition: TOC documents the impact an organization seeks to achieve and details the intermediate steps.
• Importance:
  • Foundation for mission-driven initiatives.
  • Should be defined before starting any project and revised periodically.
  • Aligns activities and resources with desired change.

Steps to Create a Theory of Change

Step 1: Impact

• Definition: Long-term systemic change expected.
• Characteristics:
  • Takes years to manifest.
  • Difficult to measure but foundational for defining measurable outcomes.

Step 2: Outcomes

• Definition: Intended and unintended changes experienced by stakeholders.
• Characteristics:
  • Includes long-term, midterm, and short-term outcomes.
  • Example: Job placement increase in a skills development program.
  • Requires stakeholder surveys to measure changes at different stages.

Step 3: Outputs

• Definition: Immediate results of activities or products.
• Characteristics:
  • Indicators that outcomes are on track.
  • Example: Increase in business training graduates.

Step 4: Activities

• Definition: Actions needed for outputs to happen.
• Characteristics:
  • Directly align with outputs and outcomes.
  • Examples: Training, resume preparation, interview prep.

Step 5: Inputs

• Definition: Resources or investments needed for activities.
• Characteristics:
  • Examples: Course materials, skilled trainers, venues.

Key Points and Recap

• Components of TOC:
  • Inputs, Activities, Outputs, Outcomes, Impact.
• Alignment:
  • TOC should align with the mission and project scope.
• Monitoring:
  • Focus on outputs and outcomes with relevant metrics.
• Stakeholder Involvement:
  • Include demographic data and feedback in measurements.

Implementation Tips

• Stakeholder Engagement:
  • Involve stakeholders and communicate intent clearly.
• Change Management:
  • Emphasize benefits of changes to the organization.

SoPact Platform

• Developed to streamline impact measurement and management, starting with TOC.

Conclusion

• Engage with challenges and discussions about defining TOC.
• Resources available: Free actionable impact management ebook.
• Reminder to subscribe and engage with future content.