How to navigate this guide

Landscape Mapping for Impact Measurement and Management in South Africa

How to navigate this guide
Click the icons to explore the differences by stakeholder group: Click on the Next Slide and Dashboard buttons to navigate through the infographic Investees Investors Overall Results Intermediaries Next Slide Dashboard Click on icons throughout the infographic to explore relevant resources and hear more about what study participants had to say about each of the themes! Terminology: We use ‘survey respondents’ to refer to data collected through the online survey. ‘Interview participants’ refers to data collected through in-person or telephonic interviews. ‘Study participants’ includes all individuals and organisations engaged as part of the study. Dashboard Next Slide

Dashboard Are organisations measuring and managing impact?
Challenges with practicing IMM Why are organisations practicing IMM? Using data and reporting results Why are organisations not practicing IMM? Future of IMM What IMM techniques are organisations using? Resources Benefits of practicing IMM

Are organisations measuring and managing impact?
84% of interview participants and 66% of survey respondents reported having an impact measurement and management (IMM) practice Interview participants practicing IMM Survey respondents practicing IMM Overall Results Investors Intermediaries Investees All Respondents All Respondents Dashboard n = 31 n = 58

78% of investee interview participants and 50% of investee survey respondents reported having an IMM practice Interview participants practicing IMM Survey respondents practicing IMM Overall Results Investors Intermediaries Investees Investees Investees Dashboard n = 9 n = 8

88% of intermediary interview participants and 93% of intermediary survey respondents reported having an IMM practice Interview participants practicing IMM Survey respondents practicing IMM Overall Results Investors Intermediaries Investees Intermediaries Intermediaries Dashboard n = 8 n = 8

83% of investor interview participants and 73% of investor survey respondents reported having an IMM practice Interview participants practicing IMM Survey respondents practicing IMM Overall Results Investors Intermediaries Investees Investors Investors Dashboard n = 12 n = 8 Next Slide

Why are organisations practicing IMM?
Organisations recognise IMM as central to achieving company growth and organisational objectives Overall Results Investors Intermediaries Investees Dashboard

Investors identified IMM as central to achieving company growth and organisational objectives Overall Results Investors Intermediaries Investees Dashboard

While intermediaries emphasised the importance of IMM for increased buy-in from stakeholders and investors Overall Results Investors Intermediaries Investees Dashboard

Similar to investors, investees identified achievement of company growth and organisational objectives as the most important reason for practicing IMM Overall Results Investors Intermediaries Investees Dashboard Next Slide

Why are organisations not practicing IMM?
We asked survey respondents to indicate why they do not practice IMM. These are the top six-ranked reasons for why organisations are not measuring and managing their impact: 1 Insufficient financial resources 2 We don’t know what IMM is or how to measure impact 3 Insufficient human resources Overall Results Investors Intermediaries Investees 4 We haven’t set impact goals 5 We haven’t found the right tool 6 Impact is not a priority for our organisation Dashboard

1 Insufficient financial resources Training on tools to use to measure impact. We also require budget for implementing and maintenance of data. We might also need to get someone skilled to help us with the process. - Investee 2 We don’t know what IMM is or how to measure impact 3 Insufficient human resources No, we are not currently measuring impact because we don’t know how. This is an area that I am interested in but not familiar with so I don’t know how to get started. - Investee [We need] more human resources. - Investee Overall Results Investors Intermediaries Investees 4 We haven’t set impact goals 5 We haven’t found the right tool 6 Impact is not a priority for our organisation Dashboard

1 Insufficient financial resources 2 We don’t know what IMM is or how to measure impact 3 Insufficient human resources Overall Results Investors Intermediaries Investees 4 We haven’t set impact goals 5 We haven’t found the right tool 6 Impact is not a priority for our organisation As an organisation, we are still defining what impact means for us and what steps are needed in order for us to achieve impact. - Intermediary We are new to the space and no, we do not have a specific technique at the moment. - Intermediary Dashboard

1 Insufficient financial resources 2 We don’t know what IMM is or how to measure impact 3 Insufficient human resources Starting IMM is a distinct challenge for an emerging [investor]. We don’t have the resources. - Investor Overall Results Investors Intermediaries Investees 4 We haven’t set impact goals 5 We haven’t found the right tool 6 Impact is not a priority for our organisation This would need to become the industry standard and a requirement of external investors (funders/LPs). - Investor Dashboard Next Slide

Effective communication of results
What IMM techniques are organisations using? We started by understanding whether study participants’ use of IMM techniques varies according to the investment cycle. This is because different techniques, whether standardised or custom, can be used for different objectives based on the stage of the investment cycle. However, only 22% of survey respondents report that their approaches vary according to the investment cycle. Evaluating Impact To prove social impact, exit investment and adjust investment thesis Forecasting Impact For investment selection and due diligence “The intention is to go right through the [IMM] cycle. For instance, pre-investment, we screen companies. During forecast and planning, we look at specific data and goals to get a better understanding of where a company is and what percent of impact we can look to improve over time…” Establish impact mandate and investment thesis Evaluate performance against impact mandate & investment thesis Develop impact metrics Effective communication of results Track and manage investment performance “No, our approach is consistent across the cycle… We’re mainly just tracking the businesses that have been created.” Develop measurement framework and tools Planning Impact For investment management Monitoring Impact To improve performance Overall Results Dashboard Click on the coloured arrows to see examples of different approaches that can be used in each stage of the investment cycle!

What IMM techniques are organisations using? We started by understanding whether study participants’ use of IMM techniques varies according to the investment cycle. This is because different techniques, whether standardised or custom, can be used for different objectives based on the stage of the investment cycle. However, only 22% of survey respondents report that their approaches vary according to the investment cycle. EVALUATING IMPACT Expected Return: Social return on investment (SROI) Theory of Change: Logic model Quasi-experimental and Experimental Methods: RCT Historical baseline Pre/post test Regression discontinuity design Difference in difference (DID) Evaluating Impact To prove social impact, exit investment and adjust investment thesis Forecasting Impact For investment selection and due diligence Establish impact mandate and investment thesis Evaluate performance against impact mandate & investment thesis Develop impact metrics Effective communication of results Track and manage investment performance Develop measurement framework and tools Planning Impact For investment management Monitoring Impact To improve performance Overall Results Dashboard Click on the coloured arrows to see examples of different approaches that can be used in each stage of the investment cycle!

What IMM techniques are organisations using? We started by understanding whether study participants’ use of IMM techniques varies according to the investment cycle. This is because different techniques, whether standardised or custom, can be used for different objectives based on the stage of the investment cycle. However, only 22% of survey respondents report that their approaches vary according to the investment cycle. FORECASTING IMPACT Expected Return: SROI Theory of Change: Logic models Quasi-experimental and Experimental Methods: RCT Historical baseline Pre/post test Regression discontinuity design Difference in difference (DID) Evaluating Impact To prove social impact, exit investment and adjust investment thesis Forecasting Impact For investment selection and due diligence Establish impact mandate and investment thesis Evaluate performance against impact mandate & investment thesis Develop impact metrics Effective communication of results Track and manage investment performance Develop measurement framework and tools Planning Impact For investment management Monitoring Impact To improve performance Overall Results Dashboard Click on the coloured arrows to see examples of different approaches that can be used in each stage of the investment cycle!

What IMM techniques are organisations using? We started by understanding whether study participants’ use of IMM techniques varies according to the investment cycle. This is because different techniques, whether standardised or custom, can be used for different objectives based on the stage of the investment cycle. However, only 22% of survey respondents report that their approaches vary according to the investment cycle. PLANNING IMPACT Theory of Change: Logic model Mission Alignment Methods: Social value criteria Scorecards Evaluating Impact To prove social impact, exit investment and adjust investment thesis Forecasting Impact For investment selection and due diligence Establish impact mandate and investment thesis Evaluate performance against impact mandate & investment thesis Develop impact metrics Effective communication of results Track and manage investment performance Develop measurement framework and tools Planning Impact For investment management Monitoring Impact To improve performance Overall Results Dashboard Click on the coloured arrows to see examples of different approaches that can be used in each stage of the investment cycle!

What IMM techniques are organisations using? We started by understanding whether study participants’ use of IMM techniques varies according to the investment cycle. This is because different techniques, whether standardised or custom, can be used for different objectives based on the stage of the investment cycle. However, only 22% of survey respondents report that their approaches vary according to the investment cycle. MONITORING IMPACT Expected Return: SROI Mission Alignment Methods: Social value criteria Scorecards Evaluating impact To prove social impact, exit investment and adjust investment thesis Forecasting Impact For investment selection and due diligence Establish impact mandate and investment thesis Evaluate performance against impact mandate & investment thesis Develop impact metrics Effective communication of results Track and manage investment performance Develop measurement framework and tools Planning Impact For investment management Monitoring Impact To improve performance Overall Results Dashboard Next Slide Click on the coloured arrows to see examples of different approaches that can be used in each stage of the investment cycle!

What IMM techniques are organisations using?
Only 32% of survey respondents report that they align to formal impact measurement techniques These were the most commonly cited techniques from the survey and interviews: Overall Results Investors Intermediaries Investees However, few of the study participants who identified these formal techniques were applying formal techniques in full. Instead, these participants noted that their organisation adopts standardised techniques where relevant, and then builds on these formal techniques with custom or in-house developed techniques. For example, 42% of survey respondents who reported to use standardised metrics indicated that they use a “combination of some already established metrics and internal metrics to account for unique product / services offered.” Interview participants explained that the benefit of combining standardised and custom techniques is that they are able to create a more structured IMM practice while accounting for adaption to context. Dashboard n = 38

Only 31% of investee survey respondents report that they align to formal impact measurement techniques These were the most commonly cited techniques from the survey and interviews: Overall Results Investors Intermediaries Investees While these techniques were most commonly cited across stakeholder types, there was limited convergence in techniques used by investees. Most commonly, investees were familiar with their funders’ reporting requirements, but did not identify or attribute those requirements to a specific technique. Dashboard n = 16

Only 31% of intermediary survey respondents report that they align to formal impact measurement techniques These were the most commonly cited techniques from the survey and interviews: 1 Overall Results Investors Intermediaries Investees 1 We are drawing on the DCED standard – it is so pragmatic. It provides a useful frame to think about our results chain and what we are doing… However, this is selective adoption of DCED where relevant. - Intermediary Dashboard n = 8

Only 38% of investor survey respondents report that they align to formal impact measurement techniques These were the most commonly cited techniques from the survey and interviews: 2 Overall Results Investors Intermediaries Investees 3 4 2 3 4 No investment will be considered without an ESG and impact assessment. - Investor IRIS is built into our database where there was natural alignment. But I find IRIS quite unwieldy and difficult to work with. - Investor The SDGs provide a good platform to promote impact and sustainability. - Investor Dashboard n = 8 Next Slide

However, 68% of survey respondents were not aligning to standardised techniques, but using in-house, custom IMM techniques. Similarly, the majority of interview participants were also using in-house techniques. While some interview participants indicated that their organisation has a clear theory of change and aligned metrics… …Many expressed that they do not have a clearly articulated theory of change, but that they are tracking internally developed metrics. Dashboard Click on the bubbles to explore relevant resources!

However, 68% of survey respondents were not aligning to standardised techniques, but using in-house, custom IMM techniques. Similarly, the majority of interview participants were also using in-house techniques. While some interview participants indicated that their organisation has a clear theory of change and aligned metrics… …Many expressed that they do not have a clearly articulated theory of change, but that they are tracking internally developed metrics. Having an explicit theory of change is advantageous in that it encourages investees, intermediaries and investors to probe their impact thesis and to identify and understand potential challenges and underlying assumptions. Additionally, theories of change also enable organisations to select key metrics based on an understanding of the intended impact pathway, or interconnected chain of results. Ultimately, theories of change encourage organisations to be judicious in pursuing business activities and/or investments to ensure that these are in line with the impact that they aim to achieve. Dashboard Click on the bubbles to explore relevant resources!

However, 68% of survey respondents were not aligning to standardised techniques, but using in-house, custom IMM techniques. Similarly, the majority of interview participants were also using in-house techniques While some interview participants indicated that their organisation has a clear theory of change and aligned metrics… …Many expressed that they do not have a clearly articulated theory of change, but that they are tracking internally developed metrics We observed through discussions that the levels of the theory of change are often used interchangeably, indicating that many study participants appeared unclear about the “impact chain,” cascading from outputs, to outcomes and impact. Lack of clarity and consistent understanding of these terms can be a challenge to the extent that it may inhibit meaningful engagement between stakeholders and interrogation of theories of change. In general, the metrics that organisations are tracking are at the output and outcome levels. Few organisations were tracking longer-term impact metrics. Dashboard Next Slide Click on the bubbles to explore relevant resources!

Benefits of practicing IMM
Most survey respondents indicated that the top benefit of IMM is being able to demonstrate how their organisation makes a difference Overall Results Investors Intermediaries Investees Dashboard

There was less variation among investees, with the top benefits of IMM related to demonstrating the difference made, achieving the organisational purpose, and improving policies and practices in the organisation Overall Results Investors Intermediaries Investees Dashboard

Among intermediaries, the top benefits of IMM are related to demonstrating the difference made and achieving organisational purpose Overall Results Investors Intermediaries Investees Dashboard

Among investors, the top benefit of IMM is related to demonstrating how their organisation makes a difference Overall Results Investors Intermediaries Investees Dashboard Next Slide

Challenges with practicing IMM
Balancing measurement and reporting requirements when there are two or more funders/supporters Determining a clear impact definition and how to measure impact Challenges in data collection and reliability of data Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Balancing measurement and reporting requirements when there are two or more funders/supporters Determining a clear impact definition and how to measure impact Challenges in data collection and reliability of data As an organisation, we are still defining what impact means for us and what steps are needed in order for us to achieve impact. - Intermediary Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Balancing measurement and reporting requirements when there are two or more funders/supporters Determining a clear impact definition and how to measure impact Challenges in data collection and reliability of data Some data are very clean, and I assume people know how many people they employ, for instance, and what percentage of those people are female, so I think those data are fairly straightforward and clean…Some [clients] are really good at capturing data, some are really poor, so where does their information really come from? Is somebody just going with a calculator and spitting out some nice numbers? So, with a bit of caution on the reliability of the numbers. - Investor Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Balancing measurement and reporting requirements when there are two or more funders/supporters Determining a clear impact definition and how to measure impact Challenges in data collection and reliability of data It is challenging for start ups and educating funders on the potential impact of this type of support to informal businesses. Also, [it’s challenging] when we need to work on aligning to what the each of the funders are looking for. - Investee Dashboard Next Slide Click on the bubbles to see what study participants had to say about each of the themes!

Using data and reporting results
Overall, investors are the most important audience for IMM data and results 1 Investors Most Important 2 Customers 3 Internal Team 4 Beneficiaries 5 Board of directors 6 Executive Team and Senior Management 7 General Public 8 Individual Least Important Dashboard Next Slide

Most important consumers of data --- Least important consumers of data
Using data and reporting results While investors are overall the most important consumer of data collected through IMM practices, results varied by stakeholder group External users Internal Users Beneficiaries Customers General public Individual Investors Board of directors Executive team Internal team Intermediary 6 4 1 8 2 5 3 7 Investee Investor Other Legend 1 2 3 4 5 6 7 8 Most important consumers of data --- Least important consumers of data Dashboard Next Slide

How to develop the landscape further?
Future of IMM Partnerships and collaboration for capacity building 4 1 3 2 Data-driven investment and decision-making How to develop the landscape further? Better IMM resources Evolved, yet pragmatic approaches Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Future of IMM Partnerships and collaboration for capacity building 4 1 3 2 Data-driven investment and decision-making Many large corporations consider strong IMM to be critical to unlocking funds and growing the sector. - Intermediary How to develop the landscape further? They (grant makers) want to understand the impact that you are having on your community. It comes into every grant making applications, impact is probably 25% of decision-making for grant giving. - Investee Better IMM resources Evolved, yet pragmatic approaches Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Future of IMM Partnerships and collaboration for capacity building 4 1 3 2 Data-driven investment and decision-making How to develop the landscape further? My feedback is trying to make this as practical as possible. So, I think just getting more people who can learn how to do it themselves, even if it’s at a basic level, and then improving the standard of M&E. People who are part of the industry need to be thinking differently and not making it bigger, more complicated, and more expensive. - Investor Better IMM resources Evolved, yet pragmatic approaches Focus on using IMM to do things better. Be pragmatic and relevant. - Intermediary Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Future of IMM Partnerships and collaboration for capacity building 4 1 3 2 Data-driven investment and decision-making How to develop the landscape further? There is a lot of information. [We] need to make data readily available and understandable to the end receiver. It would also be helpful knowing what is out there as a base to start from. - Investee Better IMM resources Evolved, yet pragmatic approaches It needs to be completely demystified. I don’t know what metrics we’re supposed to be using, what are we supposed to be doing? We need some guidelines. - Investor Dashboard Click on the bubbles to see what study participants had to say about each of the themes!

Future of IMM Partnerships and collaboration for capacity building 4 1 3 2 Data-driven investment and decision-making The last issue is how to have this conversation and move our investees forward on this topic. There is not a meaningful conversation behind why. Showing that to our investees and saying, “This is how we do it,” would help that conversation. Just like board level, “This is what we do. What do you do?” - Investor How to develop the landscape further? Learning is important for us as well, to look at what other people have achieved, then emulate and learn from their lessons to try and involve this in other programmes as well. - Intermediary Better IMM resources Evolved, yet pragmatic approaches Dashboard Next Slide Click on the bubbles to see what study participants had to say about each of the themes!

Resources Links can only be accessed with a live internet connection
Bertha Centre for Social Innovation and Entrepreneurship. Innovative Finance In Africa Review. Cape Town: Graduate School of Business UCT, 2016. IRIS Metrics, Impact Reporting and Investment Standards (IRIS), 2018, Available: (accessed April 01, 2018). BetterEvaluation, Randomised Controlled Trials, Available: (accessed June 04, 2018). Jackson, Edward T, “Interrogating the theory of change: evaluating impact investing where it matters most,” Journal of Sustainable Finance & Investment, 3:2, (2018) Available: BetterEvaluation, Social Return on Investment, Available: (accessed June 03, 2018). Khandker, Shahidur R., Koolwal, Gayatri B., and Samad, Hussain A., Handbook on Impact Evaluation: Quantitative Methods and Practices, The World Bank: Washington DC, 2010 Available: (accessed July 11, 2018). BetterEvaluation, Theory of Change, Available: (accessed April 01, 2018). Reisman, Jane, and Olazabal, Veronica. Situating the Next Generation of Impact Measurement and Evaluation for Impact Investing. New York: The Rockefeller Foundation, 2016. Donor Committee for Enterprise Development (DCED), Measuring Results & the DCED Standard, Available: (accessed April 01, 2018). Skopos Impact Fund and Bridges Impact+. More than Measurement, A Practioner's Journey to Impact Management. Amsterdam: Skopos Impact Fund and Bridges Impact+, 2016. Global Impact Investing Network (GIIN) The Landscape for Impact Investing in Southern Africa. Global Impact Investing Network (GIIN). TONIIC. Insights from the Frontier of Impact Investing. San Francisco: JP Graphics, 2016. United Nations Department of Economic and Social Affairs, Sustainable Development Goals (SDGs) Indicators, 2019, Available: (accessed April 08, 2018). The GIIN. The State of Impact Measurement and Management Practice. First Edition. (2017). Available: (accessed November 22, 2018). Verrinder, Noel Blais, Zwane, Kagiso., Nixon, Debby. & Vaca, Sara, “Evaluative tools in impact investing: Three case studies on the use of theories of change,” African Evaluation Journal 6(2), (2018). Available: International Finance Corporation (IFC), Performance Standards, 2019, Available: (accessed April 22, 2018). Dashboard Links can only be accessed with a live internet connection

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