The Five Most Important Frameworks for Impact Assessment | Zion Garcia

As a CEO, CFO, or other executives, you are always looking for ways to improve your company's bottom line. But in today's socially conscious world, it's not enough to simply make a profit; you also need to show that your company is having a positive impact on the world. That's where impact assessment comes in.

Impact assessment is the process of measuring and evaluating the social, economic, and environmental outcomes of a project or policy. It helps decision-makers understand whether a project is achieving its desired outcomes and identify areas where improvements can be made. There are many different frameworks for impact assessment, but some are more commonly used than others. Here are five of the most important ones:

1. Theory of Change

2. Logical Framework Approach

3. Social Return on Investment

4. Multi-Criteria Analysis?

5. Cost-Benefit Analysis?

Theory of Change

The theory of change is a framework that is often used in the social sector to assess whether a project or program is achieving its desired outcomes. It involves mapping out all of the activities and inputs that are necessary to achieve a particular outcome, as well as the assumptions that underpin this thinking. This approach can be used to assess both short-term and long-term outcomes.

Logical Framework Approach

The logical framework approach is another common framework for impact assessment. It is often used in international development projects because it helps to ensure that all stakeholders have a clear understanding of the objectives and expected outcomes of the project. This approach also allows for easy monitoring and evaluation by breaking down the project into its component parts.?

Social Return on Investment

Social return on investment (SROI) is a framework that assesses the social, economic, and environmental outcomes of a project or policy against its costs. It is similar to a financial return on investment (ROI) calculation, but it takes into account non-financial factors as well. SROI can be used to assess both direct and indirect impacts.?

Multi-Criteria Analysis

Multi-criteria analysis (MCA) is a framework that helps decision-makers take into account multiple factors when making decisions about complex issues. MCA can be used to assess projects, policies, or programs with multiple objectives—such as those with social, economic, and environmental objectives—by weighting the different criteria according to importance.?

Cost-Benefit Analysis

Cost-benefit analysis (CBA) is a framework that assesses whether the benefits of a project or policy outweigh its costs. It involves quantifying all of the costs and benefits associated with an initiative in order to compare them directly. CBA can be used to assess both financial and non-financial impacts.?

Conclusion:?

These are just some of the most important frameworks for impact assessment; there are many others out there as well. The key thing to remember is that no single framework is perfect, and each has its own strengths and weaknesses. The best way to choose a framework for your needs is to consult with experts who can help you select the right one for your specific situation.