Impact management is working to improve your organization’s effect on the well-being of people and the planet.
The core process is:
1. Measure your impact. Consider your stakeholders. Who and what is significantly affected by your business. Measure what changes occur and the importance of those changes for stakeholders or to those who have deep knowledge of the issues at play.
2. Capture and analyze this information, as rapidly and at as low a cost as is prudent. 3. Use this information to improve results, increase trust in your management capabilities, get free marketing, build brand and goodwill, and grow income.
This process — a new business discipline, really — is impact management.
Impact management takes insights from scientific research and combines them with insights from market research, design, social media, information management, and finance to provide businesses of all types with timely information about what impact on people and the planet is actually resulting from their activities, and how important that is to those affected. Impact management makes strategic use of third-party certifications and standards such as B Corp Certification, LEED, Fair Trade and other ways of signaling your value to the public.
The discipline builds upon the core principles of Social Return on Investment (SROI) Analysis, which are:
- Involve stakeholders.
- Understand what changes.
- Value the things that matter.
- Only include what is material.
- Do not over-claim.
- Be transparent.
- Verify the result.