A strategic approach to social impact measurement of social enterprises: The SIMPLE methodology

Abstract

Purpose

The purpose of this paper is to develop a coherent and robust methodology for social impact measurement of social enterprises (SEs) that would provide the conceptual and practical bases for training and embedding.

Design/methodology/approach

The paper presents a holistic impact measurement model for SEs, called social impact for local economies (SIMPLEs). The SIMPLE impact model and methodology have been tried and tested on over 40 SEs through a series of three day training courses, and a smaller number of test cases for embedding. The impact model offers a five‐step approach to impact measurement called SCOPE IT; MAP IT; TRACK IT; TELL IT and EMBED IT. These steps help SE managers to conceptualise the impact problem; identify and prioritise impacts for measurement; develop appropriate impact measures; report impacts and embed the results in management decision making.

Findings

Preliminary qualitative feedback from participants reveals that while the SIMPLE impact training delivers positive learning experiences on impact measurement and prompts, in the majority of cases, the intensions to implement impact systems, the majority feels the need for follow up embedding support. Paricipant's see value in adopting the SIMPLE approach to support business planning processes. Feedback from two SEs which has receives in‐house facilitates embedding support clearly demonstrates the benefits of working closely with an organisation's staff team to enable effective implementation.

Research limitations/implications

Some key future research challenges are identified as follows: systematically research progress in implementation after training for those participants that do not have facilitated embedding; to further test and develop embedding processes and models (using SIMPLE and other methods) with more SE organisations to identify best practices.

Originality/value

The SIMPLE fills a gap as a tool for holistic impact thinking that offers try and test accessible steps, with robust measures. The innovative steps take SEs through all key impact thought processes from conceptualisation to embedding guidance, feeding into business planning and strategic decision‐making processes. The comparison between the limitations of stand alone impact training and the benefits of facilitated embedding processes is instructive.

Citation

McLoughlin, J., Kaminski, J., Sodagar, B., Khan, S., Harris, R., Arnaudo, G. and Mc Brearty, S. (2009), "A strategic approach to social impact measurement of social enterprises: The SIMPLE methodology", Social Enterprise Journal, Vol. 5 No. 2, pp. 154-178. https://doi.org/10.1108/17508610910981734