How do you evaluate and improve your triple bottom line impact over time?

As a social enterprise, you want to create positive value not only for your customers and stakeholders, but also for the society and the environment. That's why you need to measure and improve your triple bottom line impact, which consists of three dimensions: social, environmental, and financial. In this article, you will learn how to define your impact goals, choose the right indicators, collect and analyze data, and communicate your results.

1 Define your impact goals

The first step to measure your triple bottom line impact is to define what you want to achieve and why. You need to align your impact goals with your mission, vision, and values, as well as with the needs and expectations of your target beneficiaries and customers. You also need to consider the broader context and challenges that your social enterprise is addressing, such as poverty, inequality, or climate change. Your impact goals should be specific, measurable, achievable, relevant, and time-bound (SMART).

Add your perspective

Stephen Waud

Chief Executive of the Business & Enterprise Finance Group
Report contribution
I would argue that defining your goals is not step one to improving bottom line, it is two steps down the line. Firstly, as an impact business, you need to be sure you know WHY you exist. You obviously realised that there is a mission need for your business, that will deliver impact and fill that mission gap. So be very clear about WHY you exist. Its all centred around the golden circle - SImon Sitek.

Like

2 Choose the right indicators

The next step is to choose the indicators that will help you track your progress and performance on each dimension of your triple bottom line impact. Indicators are quantitative or qualitative measures that reflect the changes or outcomes that you want to achieve. For example, you can use indicators such as number of jobs created, carbon footprint reduction, or customer satisfaction. You should select indicators that are relevant, reliable, valid, and feasible to collect and analyze.

Add your perspective

Stephen Waud

Chief Executive of the Business & Enterprise Finance Group
Report contribution
In order to be clear about the indicators - clarity over how you deliver the need to meet the mission gap comes next. How you deliver your service enables you to define the What which comes next. Foe example our organisation seeks to change communities for the better. How we do that is through the innovative use of finance, and the indicators we use are amounts and types of loans, into which particular areas of deprivation. Do you see how it works - the WHY leads to the HOW, which then delivers the WHAT 😉

Like

3 Collect and analyze data

The third step is to collect and analyze data on your chosen indicators. You need to decide how often, how much, and how to collect data from different sources, such as surveys, interviews, observations, or records. You also need to ensure that your data collection methods are ethical, transparent, and consistent. You can use various tools and techniques to analyze your data, such as descriptive statistics, trends, comparisons, or visualizations. You should aim to draw meaningful insights and conclusions from your data analysis.

Add your perspective

Adrian Ashton

an untypical enterprise consultant, helping people and organisations deal with uncertainty - sometimes a tiger striped chaise lounge with a flamingo cushion.
Report contribution
When you're starting to make sense of the data you've captured, try and always do 2 things with it: 1) benchmark it externally - what do other businesses 'score' in the same themes? You may think you're doing so well, but in comparison with others you may be excelling! 2) benchmark internally - if your 'scores' are different to last years', explore why this be to help you better use the findings to inform future planning.

Like

4 Communicate your results

The final step is to communicate your results to your internal and external stakeholders. You need to report on your triple bottom line impact in a clear, concise, and compelling way, using stories, numbers, and visuals. You should highlight your achievements, challenges, and learnings, as well as your plans and actions for improvement. You can use different formats and channels to communicate your results, such as reports, presentations, newsletters, or social media. You should also invite feedback and dialogue from your stakeholders to improve your impact measurement and management.

Add your perspective

Stephen Waud

Chief Executive of the Business & Enterprise Finance Group
Report contribution
It's all about impact - measure measure, and measure again. take that data and prove WHY you make a difference. Yes a good story always captivates the audience, but when you have told the story you can prove your worth, but the stats. So measure, measure and measure again - then stand upon roof tops and SHOUT it OUT.....let the world know.

Like

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

Stephen Waud

Chief Executive of the Business & Enterprise Finance Group
Report contribution
The other critical thing to impact measurement and delivering a true triple bottom line is that profit is not dirty, it liberates and provides the wherewithal to do good. So making money is not a bad thing - use finance and money for Good.

Like

How do you evaluate and improve your triple bottom line impact over time?

1

2

3

4

5

1 Define your impact goals

2 Choose the right indicators

3 Collect and analyze data

4 Communicate your results

5 Here’s what else to consider

Social Enterprise

Rate this article

Thanks for your feedback

More articles on Social Enterprise

More relevant reading