Impact Management and Measurements

A study published recently by the Global Impact Investing Network (GIIN) found that measuring impact not only directly increases a company’s economic results, but also indirectly influences its long-term viability. Therefore, impact measurement data serves as a strategic and operational tool to drive business value for impact investors and their investees.

Specifically, the report zeroes in on five significant drivers of value that investors and companies get from impact measurement and management:
1 – Supports Revenue Growth as impact data helps companies understand their customers and, as a result, develop products and services better tailored to their needs.
2 – Improve operational effectiveness and efficiency because investors can use impact data to improve operational areas ranging from HR to accounting.
3 – Informs investment decisions because impact measurements help investors improve everything from deal sourcing to selection.
4 – Improve marketing and reputation building, as more effective marketing campaigns can be created by leveraging a better understanding of the customers acquired through impact measurement.
5 – Improve strategic alignment and risk mitigation since impact data can ensure that investor and company activities align with the mission and help identify risks early.