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CMG Measurement and CSR selected slides for SXSW Eco May 2013
 

CMG Measurement and CSR selected slides for SXSW Eco May 2013

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  • There are many reasons to invest in measurement.A favorite truism: you measure what you value and you value what your measure.
  • …Our experience at the Hewlett Foundation is that this usually takes us pretty far, but that sometimes we must make do with qualitative indicators of progress that fall far short of ultimate outcomes. Statistical analysis can provide a reasonable picture of the success of a de-worming program in Africa. But broad-scale social movements require long time horizons and patience with setbacks and periods of stasis.

CMG Measurement and CSR selected slides for SXSW Eco May 2013 CMG Measurement and CSR selected slides for SXSW Eco May 2013 Presentation Transcript

  • Corporate Social Responsibility:Components, ROI and MeasurementSelected Slides for SXSW Eco Panel PickerMay 2013
  • 2 © 2010-2013 Community Matters GroupStrategic Corporate Social Responsibility is the art ofmaking responsibility profitable and makingprofitability responsible.1CSR1012WhyMeasure3Nuts &Bolts4KeyChallenges5BuildingExcellenceAgenda
  • 3 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyEnvironmentalSustainabilityMoney,Resources &TimeEthics &TransparencyPeople(internal)LeveragingRelationshipsBusinessPractices1 Corporate Social Responsibility Components
  • 4 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyBusinessPracticesEnvironmentalSustainabilityMoney,Resources &TimeEthics &TransparencyPeople(internal)LeveragingRelationships1 CSR Component: Environmental SustainabilityCarbonFootprintGHGEmissionsWaste WaterPollution EnergyCustomers’ImpactSupply/Value-chain’s Impact
  • 5 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyLeveragingRelationshipsBusinessPracticesEnvironmentalSustainabilityMoney,Resources &TimeEthics &TransparencyPeople(internal)1 CSR Component: Business PracticesLoan Portfolio DepositPortfolioCRA Values-basedProductsThis is about the impact of coreoperations, products and services andas such, varies greatly by business.For a bank this could include to whomand how they lend, where they locatebranches, whether they help unbankedpopulations or are predatory, if theysupport green building, etc.
  • 6 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyPeople(internal)LeveragesRelationshipsBusinessPracticesEnvironmentalResponsibilityMoney,Resources &TimeEthics &Transparency1 CSR Component: Leverages RelationshipsB2CCustomersB2BCustomersSuppliers VendorsSphere ofInfluenceCompetitorsLeadingCollaborationsInspiringOthers
  • 7 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyEthics &TransparencyPeople(internal)LeveragesRelationshipsBusinessPracticesEnvironmentalResponsibilityMoney,Resources &Time1 CSR Component: People (internal)Fair Pay &BenefitsWork-LifeBalanceDevelopment &AdvancementDiversity &InclusionEmployee Health& SafetySupportingVolunteerismEmployeeAssistanceTraining
  • 8 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyMoney,Resources &TimeEthics &TransparencyPeople(internal)LeveragesRelationshipsBusinessPracticesEnvironmentalResponsibility1 CSR Component: Ethics & TransparencyBusinessEthicsGovernanceReporting Social& EnvironmentalImpactHuman RightsResponsibleInvestingAdvocacy
  • 9 © 2010-2013 Community Matters GroupCorporate SocialResponsibilityStrategyEnvironmentalSustainabilityMoney,Resources &TimeEthics &TransparencyPeople(internal)LeveragingRelationshipsBusinessPractices1 CSR Component: Money, Resources & TimeStrategicPhilanthropyNon-$ResourcesGrassrootsVolunteeringSkills-basedVolunteeringCauseMarketingStrategicSpendSponsorships In-kind Giving
  • 10 © 2010-2013 Community Matters GroupMeasurement is the first step that leads to control and eventually to improvement. If youcant measure something, you cant understand it. If you cant understand it, you cantcontrol it. If you cant control it, you cant improve it.—H. James Harrington, performance improvement thought leader1CSR1012WhyMeasure3Nuts &Bolts4KeyChallenges5BuildingExcellence
  • 11 © 2010-2013 Community Matters GroupMeasurement underlies twokey processes:Prove To stakeholders To the market To customers To influencers To employees Sharpen discussion Enable experimentation Support tools Link to continuous improvementIm2 Why Measure? Prove & Improve
  • 12 © 2010-2013 Community Matters Group2 Why Measure? More Details• Measuring inputs and outputs to confirm that you andyour partners are doing what has been agreed uponConfirmation• To assess the impact of your investments and learnlessons critical to improving your effectiveness, youneed measures of what has actually changed inaddition to inputs/outputsImprovement• Internally and externally, people believe that youmeasure what you value and you value what youmeasure―especially in a performance-based cultureCredibility• The act of measurement can be worthy of note, as canthe stories that emerge from the evaluative processPublicity
  • 13 © 2010-2013 Community Matters Group2 Why Measure? Generating External ROI• Based on existing research, current best practices andfresh creative thinking, identify a “Theory of Change”How Can WeMove theNeedle?• Test the “Theory of Change.” Did the strategic actionsachieve the desired results?Is This ―Theoryof Change‖Correct?• How much was achieved? Is there a way to improveeffectiveness?How Much DidWe Move theNeedle?• This process will help prove and improve the changegeneratedExternal ROI
  • 14 © 2010-2013 Community Matters Group2 Why Measure? Generating Internal ROI• Dupont has saved nearly $5B since 1990 throughefficiency improvements. Over a recent two year period,average annual internal rate of return was 75%.Efficiencies &Cost Reductions• Clorox Greenworks cleaning supplies: Sales of $60M+in 2010 (while that is a drop from 2008‟s peak, attributedto the recession, it is still significant).New Products &Services• By developing ways to add shared value with „bottom ofthe pyramid‟ consumers, Unilever projects 50% of itsrevenue ($20B+/yr) in developing countries.New Markets• There is growing research that customers are morelikely to patronize companies and brands that they seeas being responsible.Increased Sales• The CISCO Networking Academies initiative has solveda key restrictor to CISCO‟s growth―lack of qualifiedworkers to administer their networks.OvercomingChallenges
  • 15 © 2010-2013 Community Matters Group2 Why Measure? Generating Other Internal ROI• A key „intangible asset,‟ brand can be heavily influencedby CSR excellence, or lack thereof (eg, BCCCC State ofCorporate Citizenship Report).Brand/Image/Reputation• CSR can help measurably improve morale, recruitment,retention, productivity, and leadership (eg, Hill &Knowlton Study).Talent• CSR can create great value by improving relationshipswith key influencers (eg, Northeast Utilities reducedapproval times by engaging local politicians in CSR).Key Influencers• CSR can help improve exposure to regulation, lawsuits,competition, materials access, supply chain disruption,customer retention (eg, Panasonic lead-free TV).Risk Reduction• Failure at just one aspect of CSR can impact acompany‟s license to operate (eg, Enron; WaMu).License toOperate
  • 16 © 2010-2013 Community Matters GroupIndicators (or benchmarks) are measures which help quantify the achievement of aresult. They answer the question "How would we recognize these results in measurableterms if we fell over them?" So, for example, the rate of low-birthweight babies helpsquantify whether were getting healthy births or not. Third grade reading scores helpquantify whether children are succeeding in school today, and whether they were readyfor school three years ago. The crime rate helps quantify whether we are living in safecommunities, etc.—Karen Finn, Partner, Results Leadership Group1CSR1012WhyMeasure3Nuts &Bolts4KeyChallenges5BuildingExcellence
  • 17 © 2010-2013 Community Matters Group3 Theory of ChangeActivitiesExpectedResultsTheory of Change―Theory of Change‖ =―If we do this, we expectto get that result.‖
  • 18 © 2010-2013 Community Matters Group3 Measurement Drives Strategy3 Design strategies to achieve desired results6 Adjust and continuously improve2 Develop ―Theory of Change‖5 Measure and evaluate the impact1 Identify desired results4 Invest and test ―Theory of Change‖Some measure what they already do andtry to capture their activities and impacts.But to really drive change, you need to:
  • 19 © 2010-2013 Community Matters Group3 Types of Measures: Broadly Speaking• Eg, $50K donated to an afterschool college/careerpreparedness program• Eg, 100 employees volunteered 1 hour a week for 9months as academic coachesInputs(things you do)• Eg, $50K enabled afterschool program to engage 100additional students in a college/career preparednessprogram for 2 hours/day, 3 days/week for 9 months• Eg, 900 hours of academic coachingOutputs(what is donewith theresources)• Eg, participants showed a 30% improvement in overallgrades (vs a 2% improvement for nonparticipants)• Eg, 30% increase in morale indicators and 20%increase in retention rates for employee volunteersOutcomes(what haschanged,impacts)
  • 20 © 2010-2013 Community Matters Group3 Types of Measures: Yet Another Way To Look At It• “What are we doing?”Activity• “How well are we doing it?”Quality• “What has changed as a result?”Change
  • 21 © 2010-2013 Community Matters Group3 Types of Measures: More Specifically• Eg, inputs, outputs, direct outcomes like number ofparticipants getting into college, dollars saved, etc.Direct Measures• Eg, there is no “employee morale thermometer” tomeasure morale, but there are causally relatedmeasures like timeliness, attrition and sick daysProxy Measures• Proxy measures alone can be imperfect. Individually,timeliness, attrition and sick days don‟t measure morale,but they have different “noise patterns” and triangulatingthem can create a good indicator of moraleTriangulatedMeasures• There can be deep persuasive power in anecdotes.Individual stories of the impact on people, communities,departments, etc. can be incredibly potentAnecdotalMeasures
  • 22 © 2010-2013 Community Matters Group3 Techniques for Gathering & Analyzing Data• Sampling: Identify representative sub groups and usedata gathering techniques (eg, observation or surveys)to glean data that can be applied to the whole group• Census: Collect data from an entire populationSampling &Census• Identify an existing “longitudinal divergence” in thepopulation that you can use as a natural experiment―or―design an intentional experiment, comparing awell-matched control group and experimental groupExperiments• Often, relevant data is already being collected (eg,annual employee surveys, a nonprofit‟s own researchon their impact, data collected by government agenciesand advocacy groups, etc.)Found Data• Regression• Bayesian Statistics• Difference in Differences Analysis, etc.StatisticalAnalysis
  • 23 © 2010-2013 Community Matters Group―That’s the beautiful thing about data – it can either back up your instincts or provethem totally wrong.‖—Susan Wojcicki, Senior Vice President Marketing, Google1CSR1012WhyMeasure3Nuts &Bolts4KeyChallenges5BuildingExcellence
  • 24 © 2010-2013 Community Matters Group4 Key Measurement Challenges & How to Overcome• Many nonprofits lack the expertise and capacity tomeasure impact, and often face demands for varyingmetrics from multiple funders• Many companies have limited budget for measurementCapacity/Resources• It appears difficult to measure the value of less tangiblevariables (eg, morale), but it is possible• Not measuring gives them the only value that weabsolutely know they can„t have: zeroIntangibility• Eg, decisions on having more efficient data centers thatonly look at the power cost reductions miss most of thebenefit (75% of the ROI is from rent/space savings)• Unknown relationships (eg, tree coverage reduces crime)Hidden Value• Standardization• Systems Integration• Establishing & RefiningNew MetricsOvercomingTheseMeasurementChallenges• Triangulation• Data Excavation• Uncovering Hidden Value• Investment & Training
  • 25 © 2010-2013 Community Matters Group4 Key Measurement Challenges & How to Overcome• It can be challenging to attribute specific impact• It can be difficult to demonstrate direct causalityAttributingImpact &Causality• Many larger challenges (eg, persistent poverty) arecomplex and are influenced by a wide set of factors (eg,education, transportation, job availability, etc.) andactors (government, foundations, nonprofits, etc.)Complexity ofChallenges• Too often, those asked to measure are not involved indesigning the measurement and evaluation planLack of Buy In• Make larger investments• Utilize proxy measures• Acknowledge uncertaintyOvercomingTheseMeasurementChallenges• Find discrete indicators• Engage all stakeholders• Fund measurement
  • 26 © 2010-2013 Community Matters GroupHave we done what we set out to do? If we’re working with a nonprofit, and they say―we’ll train 20,000 individuals and take 5,000 into jobs‖, then we want to know whetheryou’ve hit that metric... (Beyond that) what is happening that you did not imagine wouldhappen, both positive and negative, so that you can then mitigate that or enhance it inthe next round of funding or support?—Akhtar Badshah, Senior Director for Global Community Affairs, Microsoft Corporation1CSR1012WhyMeasure3Nuts &Bolts4KeyChallenges5BuildingExcellence
  • 27 © 2010-2013 Community Matters Group5 Building Excellence: Key Scoping Questions• Why do you want to measure and evaluate your efforts?Confirmation? Improvement? Credibility? Publicity?What do you want to see in return?Why• What do you want to measure and evaluate? Outputsand inputs? External impact? Internal ROI? Overallimpact and/or impact of specific initiatives?.What• What depth of measurement do you want to engage infor each of these?Depth• How much money/time do you want to invest inmeasurement/evaluation?Investment
  • 28 © 2010-2013 Community Matters Group5 Building Excellence: Key Scoping Questions• What are other similar companies doing vis-à-vismeasurement? Do you want to lead or follow?CompetitiveBenchmarking• What is the capacity of your partners to help youmeasure your activity and impact?PartnerCapacity• What are you already measuring? Where can you findexisting measures (found data)? What is your currentbaseline?ExistingMeasures• For all your existing data (and any new measures youdecide to create), how good are the ABCDEs?Availability; Believability; Coverage (broad enough?);Depth (can you drill down far enough?); ExecutionABCDEs
  • 29 © 2010-2013 Community Matters Group5 Building Excellence: Key Steps for Success• Based on the answers to the previous scopingquestions, build into the next strategic plancomprehensive measures and evaluation aligned withthe plan‟s specific goals and targetsBuildinga Plan• Start by measuring inputs and outputs• If desired, measure external impact and internal ROI• Evaluate the success of your efforts against goalsMeasuring &Evaluating• Use measurement and evaluation to inform strategyadjustments and continuous improvements• Report and communicate your results transparentlyContinuousImprovement &Reporting• Robust measurement and evaluation that drives ROI(internal & external), supports continuous improvementand helps capture compelling storiesEnd Game
  • 30 © 2010-2013 Community Matters GroupCMG Contact
  • 31 © 2010-2013 Community Matters GroupCMG Core CompetenciesCSR Strategy &ImplementationStrategicPlanning toDrive ExternalImpact &Internal ROIRigorousMeasurement ofExternal Impact& Internal ROIInternal &ExternalStakeholderEngagementCommunicationwith ExternalStakeholders,Employees, &ExecutivesImplementation(eg, FlagshipPartnershipManagement)CreativeSolutions toCSR ChallengesMeasurementStrategyEngagingStakeholdersMeasuringOutputs &OutcomesDevelopingMeasuresExternal ROIMeasurementInternal ROIMeasurementDirect, Proxy,& AnecdotalMeasuresSampling,Census, &ExperimentsDataExcavation &TriangulationStatisticalAnalysis