Alnoor Ebrahim, Associate Professor, Harvard Business School - PowerPoint PPT Presentation

1 / 22
About This Presentation
Title:

Alnoor Ebrahim, Associate Professor, Harvard Business School

Description:

It is early days (still) Though there is increasing understanding of social impact measurement, the practice is still under development. (Japan) – PowerPoint PPT presentation

Number of Views:81
Avg rating:3.0/5.0
Slides: 23
Provided by: socia70
Category:

less

Transcript and Presenter's Notes

Title: Alnoor Ebrahim, Associate Professor, Harvard Business School


1
The State of Impact Measurement An update for
the Social Impact Investment TaskforceGuildhall,
London, July 9, 2015
  • Alnoor Ebrahim, Associate Professor, Harvard
    Business School
  • Kelly McCarthy, Senior Manager, Global Impact
    Investing Network
  • Daniel Brown, Doctoral Candidate, Harvard
    Business School
  • Correspondence to aebrahim_at_hbs.edu

2
At a Glance G71
  • Mobilizing
  • Convene diverse players (Canada, France)
  • Influence legislation (Aus, Italy, Japan)
  • Build knowledge base via investor surveys
    academic centers (Aus, Italy, US)
  • Standardizing
  • Process guides (Japan, UK, Germany)
  • Process/assurance standards (Germany, UK)
  • Outcome standards by industry (France, UK)
  • Transparency/reporting (Germany, UK, US)
  • Financing
  • Pay for Success/SIBs (Aus, Canada)
  • Bank of unclaimed assets (Japan)
  • Catalyze philanthropic support (US)

Source National Advisory Board updates to Social
Impact Investment Taskforce (2015)
3
It is early days (still)
  • Though there is increasing understanding of
    social impact measurement, the practice is still
    under development. (Japan)
  • Need to develop an impact measurement culture
    before setting impact objectives to measure.
    (Italy)
  • Measurement of impact continues to vary on a
    deal-by-deal basis. (Canada)

Source National Advisory Board updates to Social
Impact Investment Taskforce (2015)
4
  1. Methods
  2. Adoption
  3. Ecosystem

5
Guidance (process)
JP Morgan (2015)
Impact Measurement Working Group Social Impact
Investment Taskforce (2014)
EVPA (2013)
6
Methods for different stages

Expected Return
SROI


Theory of Change
Logic Model
Mission Alignment
Social Value Criteria

Scorecards
Quasi-Experimental Experimental Methods
RCT

Historical baseline

Pre/post test

Regression discontinuity design

Difference in differences

Post-Investment
Pre-Approval
Due Diligence
Process Alignment
Source Ivy So Alina Staskevicius, (2015),
Measuring the impact in impact investing,
Harvard Business School, MBA independent project.
http//www.hbs.edu/socialenterprise/pdf/MeasuringI
mpact.pdf
7
Data Quality
GIIRS GRI SASB SROI
Materiality
Reliability
Comparability
Additionality
Universality
8
Data Quality
GIIRS GRI SASB SROI
Materiality v v v
Reliability v v v v
Comparability v v v (v)
Additionality v
Universality v v v
9
  1. Methods
  2. Adoption
  3. Ecosystem

10
EVPA Guidance Adoption
IRIS Metrics Adoption
How social/environmental performance of investees
is measured
11
  • So
  • Investors appear to be seeking and using
  • general guidance and some standardized metrics
  • But
  • What are they actually measuring?
  • How are they judging performance?

12
Top 10 IRIS metrics
Rank Registered Users Metric
1 57 Client Individuals Total (PI4060)
2 50 Full-time Employees Total (OI3160)
3 44 Jobs Created at Directly Supported/Financed Enterprises Total (PI3687 )
4 42 Permanent Employees Total (OI8869)
5 41 EBITDA (FP1657)
6 41 Net Income (FP1301)
7 37 Client Individuals Female (PI8330)
8 30 Net Income Before Donations (FP3274)
9 30 Units/Volume Sold Total (PI1263)
10 29 Part-time Employees Total (OI8864)
166 registered users
13
Top 10 IRIS metrics
Rank Registered Users Metric
1 57 Client Individuals Total (PI4060)
2 50 Full-time Employees Total (OI3160)
3 44 Jobs Created at Directly Supported/Financed Enterprises Total (PI3687 )
4 42 Permanent Employees Total (OI8869)
5 41 EBITDA (FP1657)
6 41 Net Income (FP1301)
7 37 Client Individuals Female (PI8330)
8 30 Net Income Before Donations (FP3274)
9 30 Units/Volume Sold Total (PI1263)
10 29 Part-time Employees Total (OI8864)
166 registered users. Financial
14
Top 10 IRIS metrics
Rank Registered Users Metric
1 57 Client Individuals Total (PI4060)
2 50 Full-time Employees Total (OI3160)
3 44 Jobs Created at Directly Supported/Financed Enterprises Total (PI3687 )
4 42 Permanent Employees Total (OI8869)
5 41 EBITDA (FP1657)
6 41 Net Income (FP1301)
7 37 Client Individuals Female (PI8330)
8 30 Net Income Before Donations (FP3274)
9 30 Units/Volume Sold Total (PI1263)
10 29 Part-time Employees Total (OI8864)
166 registered users. Financial, Operational/HR
15
Top 10 IRIS metrics
Rank Registered Users Metric
1 57 Client Individuals Total (PI4060)
2 50 Full-time Employees Total (OI3160)
3 44 Jobs Created at Directly Supported/Financed Enterprises Total (PI3687 )
4 42 Permanent Employees Total (OI8869)
5 41 EBITDA (FP1657)
6 41 Net Income (FP1301)
7 37 Client Individuals Female (PI8330)
8 30 Net Income Before Donations (FP3274)
9 30 Units/Volume Sold Total (PI1263)
10 29 Part-time Employees Total (OI8864)
166 registered users. Financial, Operational/HR,
Social (output)
16
Top 10 IRIS metrics
Rank Registered Users Metric
1 57 Client Individuals Total (PI4060)
2 50 Full-time Employees Total (OI3160)
3 44 Jobs Created at Directly Supported/Financed Enterprises Total (PI3687 )
4 42 Permanent Employees Total (OI8869)
5 41 EBITDA (FP1657)
6 41 Net Income (FP1301)
7 37 Client Individuals Female (PI8330)
8 30 Net Income Before Donations (FP3274)
9 30 Units/Volume Sold Total (PI1263)
10 29 Part-time Employees Total (OI8864)
166 registered users. Financial, Operational/HR,
Social (output/outcome)
17
Performance challenges
Source GIIN, J.P. Morgan 2015
Given these challenges, how satisfied are
investors with the social performance of their
portfolios?
18
Performance relative to expectations
19
Measurement Conundrum
  • Many challenges to measuring social impact
  • Yet investors are satisfied with social
    performance!
  • Highly idiosyncratic practice limited
    convergence
  • Little external scrutiny or reporting obligations
  • Few incentives or demands for systematized
    information

See GIIN/J.P. Morgan 2015 EVPA 2014.
Investing for Good, Esmée Fairbairn, Big Society
Capital (2015), Oranges and Lemons. New
Philanthropy Capital (2014), Smart Money
Understanding the Impact of Social Investment.
20
  1. Methods
  2. Adoption
  3. Ecosystem

21
A Growing Ecosystem
Guidance
Metrics
Standards Ratings
22
Where are we?
Standardization
Integration
Emergence
Convergence
  • Convergence on
  • Process guidelines
  • Data quality (except additionality)
  • Not on
  • Metrics (by industry, investment stage, or
    investor type)
  • Performance of investees or investors

Impact Measurement Working Group, Social Impact
Investment Taskforce, 2014
Write a Comment
User Comments (0)
About PowerShow.com