Social impact assesment

Impact reporting is the systematic measurement, analysis and communication of the effects of an organisation on society. This can be about social, ecological or economic impact. The goal is to look beyond just output, such as the number of participants in a project, and focus on the actual change that is being realized. Think, for example, of improved living conditions or increased self-reliance.

Within the public sector, the importance of impact reporting is growing rapidly. Government institutions, municipalities, healthcare organizations and educational institutions are increasingly being held accountable for the social value they create. Whereas previously the focus was mainly on the implementation of policy and compliance with rules, attention is now shifting to the question of what policy actually delivers for citizens.

Output of impact?

A frequently asked question is whether it is always necessary to report hard impact figures. The answer to that is nuanced.

Output refers to the direct results of an activity or intervention. Consider, for example, the number of people who have followed a training, the number of aids provided or the number of home visits carried out. This is concrete and measurable data that shows what has been done.

Impact goes a step further. It describes the actual change that occurs as a result of those activities. For example, whether participants are better able to find work after the training, or whether the health of clients has improved. Impact therefore says something about the effect on people's lives and on society as a whole.

Not every organization or project needs to demonstrate measurable impact right away. Sometimes it is more realistic to focus on output, especially when the contribution to social change is indirect or part of a larger whole. Ultimately, it is all about the effectiveness of the resources used. What does an investment yield, and does it contribute to achieving social goals? In doing so, it is important to look carefully at the extent to which an organization can and may claim impact. If the organization is one of the actors in a chain, how much output from the entire chain can you claim?

Finally, it can be valuable to also provide insight into the broader social value of an intervention. Think of methods such as Social Return on Investment (SROI), which help to map the social benefits of investments. This does not always have to be accurate to the decimal point, but it can give direction to strategic choices and accountability.

What are the benefits?

Reaching and involving stakeholders

A crucial step in impact-oriented work is to properly identify and reach stakeholders. Who are the people or groups who are affected by policy or projects, and how do you ensure that their voices are heard? Think of social organizations, companies and other governments. Each of these parties has its own interests and perspectives. By actively engaging in dialogue, a richer picture is created of what is going on and what really matters, but more importantly, what stakeholders want to be informed about.

Communicating impact: focus and credibility

Impact communication is more than just sharing numbers. It's about telling a credible and relevant story. It is important to bring focus. Don't try to highlight all sub-areas at once, but choose those themes where your organization makes a difference. Transparency about choices, limitations and learning points contributes to trust and legitimacy. A good impact story makes the mission tangible and convincing for citizens, policymakers and funders.

Learning, improving and substantiating

Impact reporting is not only an accountability tool, but also a powerful tool for learning and improving. By systematically measuring what works and what doesn't, public organisations can adjust their approach. At the same time, a solid foundation is created for evidence-based policy, with which better informed choices can be made.

Curious about how impact-oriented working can take shape within your organization? Or do you want to explore how you can better reach stakeholders and integrate their interests into your policy and communication? At Forvis Mazars, we like to think along with you. Our consultants combine substantive expertise with a pragmatic approach and support you in setting up, substantiating and carrying out impact reports and stakeholder analyses that really make a difference. Feel free to contact us for a no-obligation consultation.