3 Steps for Private Foundations to Start Measuring Impact
Navigating the complex world of impact measurement can often leave private foundations in a quandary. This article demystifies the process, offering practical steps drawn directly from the wisdom of seasoned industry experts. Dive into the essentials of focusing on real-life outcomes, the importance of listening to the target audience, and aligning measurements with organizational goals.
- Focus on Tangible, Real-Life Outcomes
- Listen Deeply to Your Target Audience
- Measure Outcomes Aligned with Organizational Goals
Focus on Tangible, Real-Life Outcomes
Start by focusing on real, tangible results. Don't get lost in complex reports, look at the direct changes happening in the lives of those you serve. For example, if your foundation funds a reading program, track if kids are actually reading more and if their skills are improving. Small, everyday metrics like this can paint a clear picture of success. The key is to connect your efforts to real-life outcomes. Talk to the people benefiting from your programs and observe changes in their lives. This approach will give you a more accurate and meaningful measure of impact. Focus on what really matters – how your work is making a difference day to day – and you'll be able to prove and improve your impact.
Listen Deeply to Your Target Audience
Start with listening. Whether your target audience for a service is voters, parents, farmers, patients, or anyone else, the end user is the true expert. We've long understood that asking people about their own lived experiences with services meant to help them is the right thing to do. Increasingly, the data shows that listening is also the smart thing to do. Feedback Labs has compiled case studies showing that listening and responding to constituent feedback is linked to improved outcomes across a range of sectors, including education, health, and local infrastructure. As a nonprofit executive, I have seen the impact that deep listening can have in identifying barriers, unintended consequences and unexpected benefits, and actionable ways to improve outcomes.
What does good listening look like? Drawing on the field of leadership coaching, we understand that asking open-ended, non-judgmental questions fosters rapport, demonstrates empathy, and creates a vast space for exploring a customer's experience. Paying attention to both the emotions expressed and what customers say--or don't say--can provide valuable insight. Using "What" questions can be especially powerful, like: 'What is different for you because of this experience with XYZ service?' By supplementing open-ended questions with quantitative ones, such as the Net Promoter Score--'How likely are you to recommend this service or organization to a friend?'--you can benchmark performance across services and industries, and track progress over time.
Ultimately, what we do comes from what we hear. Deep listening to the customers we're serving is a necessary starting point to learn faster and do better.
Measure Outcomes Aligned with Organizational Goals
A key strategy for maximizing your foundation's impact is not only showcasing the output goals of your community partners but also demonstrating a robust ability to measure program outcomes aligned with your organizational goals and objectives. While anecdotal success stories can be compelling, it is critical to connect program activities, objectives, and measurable outcomes to the tangible ways your investments are strengthening communities.
Furthermore, it is essential to clearly define what sets your foundation apart within the communities you serve. With thousands of nonprofits competing for support, articulating your organization's unique impact and the long-term change it drives will distinguish your work. What specific strategies, partnerships, or innovations make your approach stand out?
To enhance accountability and impact measurement, engage directly with your nonprofit partners, including Executive Directors and Development Directors, to discuss the outcomes of your investments. By understanding how your funding supports their work and amplifies their mission, your foundation will gain deeper insights into its overall effectiveness and community impact.
