How do you communicate your theory of change and logic model to your stakeholders and funders?

I often call it the impact value chain in line with a couple of leading organizations in the impact measurement and management space in the private sector. I appreciate how this verbiage conveys that the focus is on value creation in terms of outcomes and impact that result from our activities and solve material challenges key stakeholders face, including people, businesses, and communities. It’s an opportunity to reflect on the assumptions in between. The impact value chain may not reflect all the complex connections across these domains as a theory would because the aim is for simplicity and a compelling story. It forces us to prioritize what we measure and to think carefully about what activities we focus on if our aim is impact.

To simply put, the theory of change (ToC) is a framework that tells you why a program or its objective should work or be achieved. At the same time, the logic model, the 3rd phase of the evaluation cycle, depicts a visual representation of the logic behind an idea. It shows relationships linking investments (inputs) to results (outcomes). They come in handy when trying to systematically communicate complex interventions with key stakeholders including funders, beneficiaries, etc.

You can make this by thinking about the main role your organisation plays, or start by building it programme by programme upwards. Many places find a metaphor to help them guide their Theory of Change is useful, for example a tree is often used with the roots being the input, the trunk being activity, the leaves being outputs, the shade being outcomes.

The Theory of Change (ToC) is vital for organizations to plan, implement, and evaluate their social impact initiatives. It goes beyond a visual diagram and acts as a guiding blueprint, providing insights into the effectiveness of programs and products and the outcomes for stakeholders. However, to truly unlock its value, the Theory of Change must be rigorously applied in daily operations. By adopting a well-designed data strategy that aligns with the theory of change, organizations can expedite their mission's progress and achieve their goals more efficiently. The key to a successful theory of change lies in starting small and embracing iterative growth.

Effective communication is crucial for stakeholders and funders to understand the drive behind a social venture. Hence, it is vital that a social venture proposal that will serve as a social enabler should make sense and convey pragmatic solutions to relevant social contexts. Simplicity is key for understanding the importance of the change required, what resources are needed and relevant timelines for actualising this social change that translates to impacts. It is essential to immerse oneself in the context and experience the repercussions of change proposed, to be able to convey accurate problem-solving frameworks to mitigate negative consequences. Understanding relevant contexts is important for communicating and actualising change.

The key to this is to right size it. Many people find a visual of a theory of change looks quite overwhelming. Decide how much you can simplify it, or have some sub visuals to drill down into core areas. This will make it easier to understand. Most people not in your organisation will want to see the headlines and the general direction of travel for the organisation, so try to emphasise this over details.

The Theory of Change (TOC) is a systematic approach that helps organizations define their vision for change, identify desired outcomes, and plan the necessary steps to achieve them. It provides a roadmap that shows the connections between inputs, activities, outputs, and outcomes, illuminating how change happens. This comprehensive understanding helps organizations plan their interventions effectively. Metrics that align with TOC are useful in defining key data and stakeholder surveys. By focusing on the most important metrics, organizations can define where the data will come from and how to collect it. Automated analysis from stakeholder feedback and other data can help program optimization, which helps optimize program goals.

Sense-making models are critical for effectively creating, communicating and implementing an array of change projects. With these models, one can easily communicate an idea and recipients can easily identify and understand the value of the ideas communicated. Also, performance metrics can be tracked easily with these models and tools. Thus, making it possible to make easy adjustments when needed.

In defining the Theory of change, a common challenge is defining baselines which help in measuring outcomes. This could be challenging in certain contexts particularly when data is limited, and data gathering is expensive. This could be overcome by sampling.

It is very useful to bring in a facilitator to help you develop this process. I prefer to use an ICA StickyWall and work in-person with a team of people to create the Theory of Change. That way people can move the data around and be more creative about how the relationships between different parts work together.

Understanding the social context that this model will be applied to is critical for its implementation and success. Thus, there is need to get immersed and engaged with diverse stakeholders and communities relevant for a social change whilst developing this model. Effective community engagement and participation in the development of this model in a social venture can help identify areas of interest, need, fragility and development. Also, this model can help promote needs and seek relevant buy-ins needed for the success of a social enterprise. Hence, an effectively developed TOC will be one that is built on the principles of openness,accountability and one where relevant stakeholders have ownership and take responsibility required.

Keep it as simple as possible, so it's easy for anyone to understand. Even though a lot of thinking goes to create Theory of Change, it should be easy to understand, use power of 3 to explain it.

You may have your main theory of change, but consider how you represent sub-areas of it to funders. For example, if you run a charity that delivers services and delivers training, you might want a separate theory of change for your training arm. If a funder wants to support Service X, but is not so interested in Service Y, be prepared to make a separate theory of change for Service X. Walk in their shoes and thinking about what is going to resonate with them, rather than thinking about what you want to tell them.

Simplicity, clarity and conviction is key to passing on crucial information regarding the practicality and feasibility of a proposal for a social venture using the Theory of Change and Logic models. Whilst it might seem like it is pivotal to communicate all the relevant numbers, feasibility studies and make references to other areas where similar ideas and concepts have been explored successfully, it is essential to keep the conversation focused on simple realistic goals and solutions proposed. Audio visuals are a great tool for communication and can bring to life essential insights and dynamics of a proposed project.