Reasonable ROI Tracking – Measuring Internal and External Impact

1. Reasonable ROI Tracking – Measuring Internal and External Impact Marie Beason Indiana Grantmakers Alliance

2. Section I: Introduction

3. Thesis of the Presentation Expectations for companies as responsible corporate citizens are rising, and stakeholders are demanding results. Clearly defined goals with strong social impact makes for a more compelling story to tell your stakeholders, resulting in greater impact for the business.

4. Telling a Compelling Story All of your stakeholders need some level of information.. the “story.”

5. Section II: Key Issues

6. Why Measure? Increasing Expectations • Internal and external stakeholders are demanding more “results” • Companies are expected to help address issues, not just give money • Employees expect their company to be a leading corporate citizen • Community Leaders expect a commitment to the community • Customers/Clients expect a company to meet standards Competitive Advantage • Most companies measure only outputs, not outcomes • Most companies are unable to articulate how CI affects their business (reputation and/or employee recruitment, retention, morale, etc.) • Trend is toward defining specific goals for major programs; opportunity still exists to be a leader in an industry or geographic area Program Improvement • Findings can be relevant, timely and useful

7. Which Programs Need to be Measured? APC focuses primarily on its headquarters community and where its employees live and work

8. Multiple Stakeholders withVarying Needs for Results Companies need to identify priority stakeholders, issues of concern to those stakeholders and then determine level of measurement needed for each stakeholder

9. Barriers to Measurement • Different programs have different expectations of “results”; lack of internal consensus on what to measure • Portfolio of programs – major initiatives require more rigorous outcomes measurement • Limited budgets or support for deep measurement and evaluation • Most companies have not engaged senior management effectively to gain support for increased measurement • Limited internal knowledge/capacity regarding measurement and evaluation • Most companies have limited staff and do not have the capacity or knowledge to measure their programs

10. Section III: Defining Measurement

11. How Can Measurement Data Be Used? Proactive Reactive vs.

12. What Can Be Measured? Inputs Outputs Outcomes Impact Monitoring: What is the quantity and quality of the resources we have invested in this program? Are they aligned with our program goals? Outcome measurement: What are the results for participants, grantees, employees, thebusiness, and other stakeholders? Impact study: What are the social and larger business impacts attributable to the program/ company? Performance measurement: What is the quantity and quality of the products or services we have delivered?

13. Methods of Measurement Impact study Monitoring Performance measurement Outcome measurement

14. Strategies for Measurement Low-Cost Strategies Develop a program model with clear and measurable goals Ensure that program vision, goals and objectives align Focus on measuring inputs and outputs Create a tracking system to regularly monitor and report progress (inputs and outputs) • Medium-Cost Strategies • Develop a program model with clear and measurable goals • Create a measurement framework that lays out key measurement questions, indicators, data sources, data collection methods • Focus on measuring inputs, outputs and short-term outcomes • Utilize data collection tools that have been developed or could be developed easily • Create a tracking system to regularly monitor and report progress • Higher Cost Strategies • Develop a program model with clear and measurable goals • Hire an external measurement expert to design data collection plans, systems and tools • Provide PD for grantee’s internal staff around data collection and measurement • Fund peer-to-peer exchanges re: measurement

15. Section III: Defining Your Approach

16. 1. What Can Be Measured? Inputs Outputs Outcomes Impact • All the resources needed to support a program: • People • Dollars • Marketing • Lines of business • The long-term and aggregate effect of the program on overall target audience and the company: • Social impact • Business impact (Reputation among key stakeholders) • The specific activities and/or programs that serve a particular target audience: • Signature programs • Focused giving • Employee engagement activities • Affects on target audience: • Community awareness, perception of company • Grantee knowledge, attitudes, behaviors • Employee morale, retention, engagement, team work, leadership, productivity

17. 3. What Level of Information Is Needed? Inputs Outputs Short-term Outcomes Long-term Outcomes Impact Programs

18. Levels of Information Needed by Stakeholders

19. 3. What Tools Can Be Used to Measure? In House: • Financial databases/reporting • HR surveys and data (recruitment, retention, morale, productivity, performance) • Gifts databases • Grantee reports • Line of Business systems and reports • Existing data (consider marketing and sales information) • Media Hits • Consumer data External: • Document/File Review • Surveys • Interviews • Focus Groups • Core Capacity Assessment Tool (CCAT)

20. How to Measure… An Example: APC

21. 4. What Resources Do You Currently Haveor Can You Leverage?

22. 5. Who Participates in Measurement? Reviewer Reviewer C-Suite Executives Senior Leaders and Managers Recipients of Findings Implementer / Coordinator Measurement Community Stakeholders, Grantees, Volunteers Community Involvement Staff

23. 6. How Much Will It Cost? Impact study 10% + Monitoring 1 – 2% Performance measurement 3 – 5% Outcome measurement 5 – 10%

24. 7. Evaluating Your Program Which resources were most important for providing “high-quality” service? Which strategies (program qualities) were most important for achieving the desired outcomes (including business outcomes)? Outcomes Inputs Strategies The key “learning-based” question The key “learning-based” question Did our business or employees change? Did our service recipients change? If so, how much and in what ways? What was the quantity and quality of the resources we used to implement our programs? How much service did we provide and what was the quality of that service? How were our employees involved (to what extent, in what ways)?

25. Key takeaways Maximize the resources you already have • People (time and expertise) • Money • Technology • Partners • Leadership • Existing data/ tools (Program participation, Program Reach, Marketing data, Company data, local data about the region and community) Leverage the resources of other departments • HR • Marketing Select your measurement level based on your resources, the program you want to measure, and the type of information you need for your targeted audiences

26. Resources • CEP website (foundations and strategy reports): www.effectivephilanthropy.org/index.php?page=publications • DHFS Evaluation Resource Guide. Wisconsin Department of Health and Family Services. Office of Strategic Finance Evaluation Section. Updated June 2006. http://dhs.wisconsin.gov/aboutDHS/OPIB/policyresearch/EvaluationResourceGuide06-06.pdf • Diversity in Philanthropy website: www.diversityinphilanthropy.org/news/case_studies/pdfs/DPP-Evaluation-Case-Study2.pdf • Davidson, Jane. ‘Evaluation Methodology Basics: The Nuts and Bolts of Sound Evaluation’: www.sagepub.com/authorDetails.nav?contribId=532276 • GEO website (see report on Foundations and Evaluation and the Change Agent Project): www.geofunders.org/publications.aspx • Joint Committee on National Standards: www.jcsee.org • Kellogg Foundation Program Evaluation and Logic Model Manuals: www.wkkf.org/~/media/475A9C21974D416C90877A268DF38A15.ashx • Mertens, Donna; and Ginsberg, Pauline. The Handbook of Social Research Ethics: www.sagepub.com/refbooksProdDesc.nav?prodId=Book230293 • RWJF Evaluation Series: http://www.rwjf.org/files/research/50349.quality.checklist.final.pdf