Maximizing Philanthropys Effectiveness During Tough Economic Times

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Maximizing Philanthropys Effectiveness During
Tough Economic Times

• The Role of Measurement and Evaluation
• October 28, 2009

Susan L. Santos, Ph.D. FOCUS GROUP Risk
Communication, Health and Environmental
Management Services 29 Welgate Rd. Medford, MA
02155 USA Ssantos.focusgroup_at_comcast.net www.focus
groupconsulting.com
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Companies Invest Heavily In Philanthropy To
Support Citizenship
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But Companies Need To Know The Value/Impact Of
These Initiatives

• Contributors and CC efforts need to operate more
  like a business unit -- the language of business
  is measurement!
• In todays economic climate we need to be able to
  demonstrate the strategic link between Corporate
  Citizenship/Philanthropy efforts and the business
• Measurement enables you to communicate the
  impact/value of programs and initiatives to key
  stakeholders
• Evaluation helps to ensure programs deliver
  maximum business and social value
• Why measure? To maintain/increase your budget in
  tough economic times

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Key Trends

• In spite of the investments made in Philanthropy
  over the years- historically measurement has not
  been a top priority
• The economic downturn has resulted in fewer
  overall resources - and staff
• Focus has been on counting activities and
  outputs rather than measuring outcomes and
  impacts

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Key Trends

• Few companies look at overall Philanthropic
  contributions and Citizenship initiatives

• Some companies have looked at social impacts of
  major program initiatives
• More companies are partnering with non profits to
  obtain measurement information

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Measurement vs. Evaluation

• Evaluation or Program Evaluation is the process
  whereby you seek to determine how well specific
  program(s) are performing whether they are
  achieving objectives the benefits and ultimate
  impacts
• Program Evaluation data is used to improve
  decision making and foster continuous improvement
  of programs
• Program Evaluation can be for a single program or
  portfolio
• Should be done for significant dollar amounts
  or flagship initiatives or prior to replicating

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Measurement vs. Evaluation

• Performance Measurement focus is on valuing the
  business or social change you seek to create
• Look at overall philanthropic efforts vs. single
  program
• Attach metrics to outcomes you value vs. programs
• Focus on the outcomes and impacts of strategic
  importance to your company (performance
  indicators)

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There Are Many Frameworks For Measurement
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CI/CC vision mission
Assessment, analysis, problem definition
Outcomes Impacts
CI/CC programs and goals
Program Planning and Evaluation Logic Model
Evaluation Measurement
Specific program objectives
Outputs
Inputs
Activities
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Logic Model Key Concepts
ACTIVITIES
INPUTS
OUTPUTS
OUTCOMES IMPACTS
The direct products of program activities
Resources dedicated to or consumed by the program
The tasks and actions needed to implement program
and achieve objectives

• Can be short, intermediate or longer term

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Logic Model Key ConceptsMeasuring Impact What
Difference Did It Make?

• Impacts can be shorter or longer term. Benefits
  may be derived for participants,
  society/community and/or the business. For
  example
• New knowledge, increased skills
• Opinion/attitudes changed
• Modified behaviors
• Improved conditions (altered status)
• Acquired permits/received approvals
• Improved name recognition, reputation
• Increased trust
• Increased sales/market share

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Levels of Impacts

• Initial (sometimes referred to as outcomes)
• Benefits most closely related to programs
  outputs
• The first benefits or changes participants
  experience
• Usually changes in awareness, knowledge,
  attitudes, or skills
• Not an end but a means to an end

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Levels of Impacts

• Intermediate
• Changes in behavior that result from
  participants new knowledge, attitudes or skills
• Link a programs initial outcomes to the desired
  longer term impacts
• Long-term
• Ultimate impacts a program desires to achieve for
  the community, participants, or company

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Measuring ImpactsLogical linkages Series of
if-then relationships
INPUTS
ACTIVITIES
OUTPUTS
OUTCOMES/IMPACTS
Adapted from Greater Newark AIDs Initiative
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The Measurement and Evaluation Process
Step 1 Determine your specific goals (program
specific or overall contributions) Step
2 Determine what specific impacts (or longer
term outcomes) you want to measure (Ask what do
you value?) Step 3 Determine what measures
(data) you need to demonstrate those outcomes and
impacts and select the appropriate
tools/methods Step 4 Collect data and analyze
results Step 5 Report findings, decide how you
will use the information to improve, make
decisions
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Identifying Goals Impacts that Matter - The Key
Step

• Examples of goals
• Our CC/Contributions programs will contribute to
• Building corporate reputation
• Building brand awareness and consumer attraction
• Building community support for key operational
  issues or policy issues (protect license to
  operate)
• Recruiting and retaining employees
• Creating social value (for individuals or
  organizations)

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Example Nike Global CC

• Three high level goals
• Bring about systemic change for workers in the
  footwear, apparel and equipment industries
• Create sustainable products and business models
• Let Me Play unleashing potential through sport

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Nike Corporate Citizenship Linking Goals To
Business Performance
Business Performance
Protect Licenseto Operate
Bolster Brand Reputation
Inc. ProductionEfficiency
Create sustainable products and business models
Bring about systemic change for workers in the
footwear, apparel and equipment industries
Let Me Play Unleash human potential through
sport
Considered Design Index Overall Score
Nike total contributions (cash, product, in-kind)
Tailored human resources management program in
contract factories
Environmentally preferred materials in equipment
product
Considered Design Index Footware Waste
Social impact (tbd)
Climate neutral facilities and business travel
Implement Freedom of Association educational
program in contract factories
Considered Design Index Apparel Waste
Inbound logistics CO2 emissions footprint
Survey contract factory workers on empowerment
satisfaction
Considered Design Index Packaging P-of-P Waste
Footwear manufacturing CO2 emissions footprint
Volatile organic compounds in footwear
Develop multi-brand collaboration in contract
factories
Volatile organic compounds in equipment
Eliminate excessive overtime in contract factories
Environmentally preferred materials in footwear
product
Environmentally preferred materials used in
apparel product
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Example Nike FoundationGirls An Unexpected
Answer

• Foundation sought to make greatest impact and
  decided to focus on adolescent girls
• They discovered that only a half of cent of
  international development were spent on girls.
  99.4 of funding goes elsewhere
• Nike Foundation saw this as an opportunity for
  change and to make a significant difference in
  the lives of adolescent girls in developing
  countries
• Four years of targeted investment have
  demonstrated that when girls have resources,
  they invest them in their families and
  communities

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NIKE The Girl Effect
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Nike Foundation Measurement Efforts Show the
Impact

• Work with the International Center for Research
  on Women to measure impact of grantees work
• Work with Save the Children and MIT Abdul Latif
  Jameel Poverty Action Lab (J PAL) to
  systematically evaluate multiple programs in
  100s of villages in Bangladesh to determine
  which programs have most effect on girls and to
  determine ripple effects in communities
• Now considering business benefits and how to
  measure

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Determining the Impacts to Measure Example
Financial Services Company for Car Manufacturer

• Assumption Companies have found that long-term
  affiliation with certain issues or organizations
  related to core business interests help them
  differentiate themselves from competitors, and
  carve out their own niche in the marketplace

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ProgramsExample Financial Services Company for
Car Manufacturer
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Example Financial Services Company for Car
Manufacturer
Measures to Demonstrate Impact of Programs
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Be Selective You Cant Do it All Priority
Measures
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Your Philanthropic Initiatives Can Create
Business Value

• Sales
• Recruiting
• Retention
• Brand/Reputation
• Skills
• Morale
• License to operate
• ROI

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And Social Value

• Education
• Literacy
• Health care related
• Environmental
• Building Capacity
• Improving lives
• Creating connections
• ROI

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Deciding What To Measure?

• What should our funding priorities be? How can we
  best resource priorities?
• How are our programs providing benefits to
  society? Which benefits do we care about enough
  to measure?
• How are our programs benefiting the business?
  Which benefits do we care about enough to
  measure?
• Demonstrate the correlation between positive
  changes to participants, community, company and
  your initiatives

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Identifying Your Impacts Deciding What to
Measure
Community
Business
Employee Relations
Support Individuals
Brand
Business Strategy
Support Organizations
Impact Areas
Build effective organizations
Improve quality of life (alter status)
Align with business strategy
Maximize human resources
Strengthen brand and reputation
Create Sustainable Programs Ensure Effective
Management Accountability Strengthen
Grantee Brand Reputation Build Grantee Skills
Competencies Support Growth Leverage
Investments
Engage Employees in CI Efforts Improve
Retention Improve Recruitment Build
Skills Improve Productivity Improve Morale
Build New Business Opportunities (Partnerships
or Marketing and Sales) Influence Public
Policy Develop New Products Build/Improve
Customer Supplier Relationships Preserve
License to Operate
Improve Awareness of an Issue Increase Access to
Services Build Skills Knowledge Enable Use of
New/ Existing Technologies Provide Direct
Services Alter Status Modify Behaviors
Improve Brand Recognition/ Awareness Improve Bran
d Reputation Improve Customer Loyalty
Retention
Priority Outcomes
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Which Impacts Do You Value? HR Impacts

• Recruitment
• Job satisfaction
• Employee morale
• Team building
• Leadership skills

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Possible Measures Employee Job Satisfaction

• Higher productivity
• More innovation, problem solving, personal
  ownership for results
• Lower turnover, absenteeism, illnesses
• Compare retention and absenteeism rates for those
  most aware vs. those least aware of CI/CC
  activities
• Other

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Possible Measures Leadership or Team Building
Skills

• Compare development of employee skills and
  competencies through volunteerism vs.
  non-volunteerism
• Identify specific skills to be achieved and
  measure whether employees achieve them
• Cost of skill development through traditional
  training versus volunteer experiences

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Which Impacts Do You Value?Marketing and
Brand/Reputation

• Corporate image/reputation
• Customer retention
• PR opportunities
• Sales possibilities
• Expand business network

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Possible MeasuresMarketing Sales

• Awareness of community programs
• Measures of dimentionalizing the brand
• Comparison aware vs. unaware groups on
  purchasing behavior measures of quality
  product/service etc.
• Track the return of donating to a non-profit
  which then becomes a new customer
• New customers or sales lead from CC efforts

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Possible Measures- Reputation

• Measure attitudes of key stakeholders who are
  aware of the CC programs toward the company as a
  corporate citizen vs those who are not aware
• Testimonials/Awards
• Unsolicited Praise
• Measure over time differences in
  company/foundations ability to leverage
  resources (e.g. who else you get to invest in the
  social programs you prioritize)
• Other??

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Possible MeasuresLicense to Operate

• Compare approval rates with and without
  philanthropy or citizenship programs for similar
  projects
• Calculate revenues gained by a business line
  starting a project earlier than anticipated due
  to community support
• Track the approval/regulatory process (e.g. ease
  of obtaining approvals, length of hearings,
  number of interveners, the lack of negative push
  back, and protests and boycotts)
• Look at the success of legislature initiatives
  public support in line and facility siting cases
  connected to philanthropic programs and
  relationships built

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Making Measurement Work
Picking the right measures begins during program
planning phase

• Clarify project goals and objectives This is
  key!
• Determine realistic indicators (baseline against
  which to measure progress (and business/social
  impacts)
• Identify metrics that are monetizable costs,
  cost savings (including risk reduction) or
  revenue
• Identify which metrics are non-monetizable (but
  measurable) drivers of financial value (e.g.,
  brand reputation, team work, employee
  satisfaction)
• Piggy-back onto existing measurement regimes
  (e.g., mktg, sales, HR, environmental, grantee
  efforts)

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Questions to Ask Yourself

• What data already exists?
• Who has the data?
• What new types of data do you need to collect?
• What data can your community partners/grantees
  collect?
• Do you need outside experts or partners to
  collect the data?
• What story are you trying to tell? What data do
  you need to tell it?
• Will I use the data I collect?

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How Rigorous Do You Need To Be?

• Questions to consider
• Resources
• cost
• time
• level of expertise required
• Organizational culture / requirements of key
  internal stakeholders
• Your comfort level!
• How you will use the data for decision making

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Group Exercise

• Identifying Your Priority Outcomes and impacts

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Identifying Your Impacts Objectives
Community
Business
Employee Relations
Support Individuals
Support Organizations
Brand
Business Strategy
Build effective organizations
Improve quality of life
Strengthen brand and reputation
Align with business strategy
Impact Areas
Maximize human resources
Priority Outcomes
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Case Study Home Depot and KaBoom Measuring the
Social and Business Impact
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Key Company Facts Home Depot
Source BCCCC Analysis
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Strategy KaBoom! And Home Depot
Kaboom! and Home Depot partnership executed three
pillars of strategy focused on building,
scaling, and advocacy.
Source Home Depot, BCCCC Analysis
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Theory of Problem KaBoom
Lack of play linked to important social problems
Play on the decline
Community inaction
Undermining the well-being of children health
of community

• Obesity-related health problems (2nd leading
  cause of death in the US, costing 117B)
• School underachievement (1 out of 3 public high
  school students fail to graduate)
• Youth violence crime (Black Hispanic teens
  are 4 more likely to be arrested for violent
  crimes
• Effects of Poverty(12.9 M children live in
  poverty)

• Lack of Playspaces
• Unsafe playgrounds
• Sedentary lifestyles (TV, Video games)
• Over scheduling structured activities
• Decline in school recess
• Only 65,000 safe playgrounds in US

• Civic withdrawal
• My-backyard perspectives
• Unawareness of plays importance
• Too few local advocates
• Lack of confidence in community action
• Community-corporate divisions

Source KaBoom
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Budget KaBoom! and Home Depot
Snapshot Cash and in-kind Commitments to the
KaBoom! Causes 2005
Source Home Depot
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Impact KaBoom! and Home Depot
The Home Depot (THD) has six core objectives for
the partnership that illustrate the value the
company realize from the relationship.
1
2
3
4
5
6
Source KaBoom, BCCCC Analysis
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KaBoom and Home Depot Measurement Framework
Monitored by Board of Directors (Home Depot and
other investors)
Results Mission Indicators
Strategy Strategy Indicators LEAD SEED RALLY
Activity Program Indicators
Manage Manage-ment Indicators
Value
Efficiency
Leverage
Benefits to Society
Monitored by Management (KaBoom)
Adopted from Dupont formula to illustrate
KaBooms return on eqity is the product of the
firms operating profit margin, asset turnover,
and leverage ratio.
Source KaBoom
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How?
KaBoom! - Social Impact Value Chain
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Key Operational Measures KaBoom
Home Depot relied on KaBoom! team to develop
successful program performance measurement system.
Source KaBoom
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Key Program Performance Measures KaBoom
Examples of Operational Data Collected by KaBoom!
Source KaBoom
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KaBoom! Measurement Formula
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What value is KaBOOM! creating for
society? (Vision Mission)
X
2
How efficiently do we use our internal resources
to create value?
KaBOOM! Formula
X
3
maximum perform-ance
How well do we leverage external resources to
amplify our value?
Source KaBoom
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Adobe Youth Voices
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Adobe Youth Voices (AYV)

• Launched in June 2006
• AYV is Adobe Foundations global signature
  philanthropy program designed to provide youth
  in underserved communities with the critical
  skills they need to become active and engaged
  members of their communities and the world at
  large.
• Goal is to empower youth in underserved
  communities around the globe with real-world
  experiences and 21st-century tools to communicate
  their ideas, exhibit their potential, and take
  action in their communities

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Adobe Youth Voices Measurement and Evaluation

• The Adobe Foundation is collaborating with
  Education Development Center (EDC) on an ongoing
  evaluation of AYV over the five years of the
  initiative (2006-2010).
• Evaluation focuses on measuring the impact and
  the effectiveness of the program with regard to
  intended outcomes for teachers and students.

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Adobe Youth Voices Measurement and Evaluation

• Youth measurement outcomes include
• - a deepened interest and engagement in
  education and career development
• - the acquisition of relevant 21st-century
  skills
• - increased self-confidence and pride in their
  abilities among youth.
• Teacher outcomes include
• - gaining skills in effectively using digital
  tools with youth
• - increasing the use of digital tools to teach
  across content areas
• - capitalizing on the learning opportunities
  presented when youth use media to express
  themselves.

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Intel Computer Clubhouse Network

• The Intel Computer Clubhouse is an after-school
  community-based technology learning program that
  enables youth in underserved communities to
  acquire tools necessary for personal and
  professional success
• http//www.intel.com/educa
  tion/icc/

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Intel Computer Clubhouse
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Intel Computer Clubhouse Network

• The philosophy of the Intel Computer Clubhouse
  Network is beyond access. Provides a place
  where young people use professional hardware and
  software to create computer-based projects
  inspired by their own ideas. The Computer
  Clubhouse Network operates as a program of the
  Boston Museum of Science in cooperation with the
  MIT Media Lab.
• What impact areas does this program likely
  target?
• What might be the priority outcomes at a facility
  level?
• Corporate level?

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Intel Program Evaluation

• Intel enlisted the participation of the Center
  for Children and Technology, Educational
  Development Center (EDC) to evaluate whether and
  how participation at Computer Clubhouses is
  helping young people achieve the goals set by the
  program. The Intel Computer Clubhouse learning
  model is expected to impact young people by
  building competency in five areas

• Ability to express oneself using technology
  (technological fluency)
• Ability to collaborate, communicate and work in
  teams
• Ability to solve complex problems
• Ability to develop, plan and execute complex
  projects
• Development of self-confidence and self-efficacy

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Intel Computer Clubhouse Program Results

• Initial Program Evaluation identified the factors
  that contribute to successful clubhouse
  implementation
• Local understanding of the program vision and
  goals
• Strength of local leadership and local initiative
• Stability of youth attendance
• Adequate, reliable on-site technical know-how
• Results suggest that Clubhouses are moving along
  a development progression, building their
  programs over time, at different rates, and in
  different ways.
• A second study focused on understanding the
  impact of the program on young people by
  examining work young people produced in four
  clubhouses. It described whether and how these
  young people are engaging with the program goals
  and the specific qualities of Clubhouses that
  best support young people as they build
  technological fluency.

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SummaryMeasurement Take Aways

• Measurement is a valuable tool especially in
  tough economic times
• Aligning program goals with company mission is
  key
• Determine impacts and outcomes of importance
  early - i.e. plan for measurement!

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SummaryMeasurement Take Aways

• Be selective in your measures. Which do you
  really need to tell your story?
• Look for opportunities to partner in measurement
  (internal/external)
• Start small and build upon measurement successes!