Tag Archives: business consulting

The Mysterious Connection Between Physics and Society – Post #2

Over the last two years I became enthusiastic about the possibility to apply knowledge from physics, especially theoretical physics on the social life. In this post I am trying to compress all the knowledge I am familiar with, and expose you to those extremely promising fields of interest. Please note that this is the second introductory post for the topic. In the next posts on this series I will discuss real-life examples related to social deviance (crime) and economy (unemployment, stock prices), and the like.

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My previous post about the topic, dealt with systems thinking and its application on management. On this post, I will dive into a more specific field for knowledge, principally connected to geophysics and information. In the last decade, there is a group of scientist that are interested in applying mathematical models on social phenomena. The basic assumption is that social complex systems may exhibit similar behaviour to natural complex systems; and indeed Miller and Page (2009) found similarities between behaviour of animals, human beings, economy, politics, and physical systems.

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Melanie Mitchell, in her free online course “Introduction to Complexity“, touches many aspects of complex systems and shows stunning similarities between systems of birds, molecules, and other objects. She defines complex system as a system that consists of three elements: (1) components/agents; (2) nonlinear interactions between components; (3) no central control. Additionally, complex systems present an emergent behavior, and featured by: hierarchical organization; information processing – components do not make decisions, it is made collectively; complex dynamics – patterns in space and time – continually changing structure and behaviour; and evolution and learning.  Systems improve themselves to perform better, and computation helps to represent how it works.

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Additional important concept is Entropy. Entropy (firstly discovered by Boltzmann) is a measure of disorder / randomness. This degree of disorder cannot be 100% decreased, even when an intervention is performed to slow down molecules moving. On the contrary, entropy ALMOST always increases, however Newton’s second law of motion says motion is reversible. entropy can also be viewed as  hidden information, because the structure is too small and too numerous to keep track of it, but the info is never lost. You always know where you came from. The most striking element of entropy that cought my attention is its recurrence.  According to Boltzmann, fluctuations, recurrence are general property of a finite system, they will happen over and over again because of the finite number of options, and because of the fact the system cycle itself. Even though we are not living in a “finite system”, we can still keep recurrence in mind, when considering social complex systems. (for Shannonian information theory and more in-depth review – short online free course- please click here).

The last concept I would like to introduce today is Chaos. Chaos is one particular type of the dynamics of a system, and it has sensitive dependence on initial condition. It also holds the attribute of repeating behaviour – which is “universality“, things are repeating in chaotic systems. Additionally, a very helpful view of chaos is done by using bifurcation (the point it gets divided, and again and again) and roughness: The density of self-similarity. How much detail we can see when digging in more and more. Fractal-like dimensions exist everywhere in nature (such as tree. When we cut a small part and then a small prat from it, and repeatedly- we find the same structure). Therefore, iterations of simple rules can explain complex systems.

 

futures thinking

Applying the above into a general thinking about social-human complex systems leads us very fast to a feeling that those physical concepts may be relevant to human behaviour as well.

It is clear that social systems are complex. Hence, we can identify them by the Chaos theory, where we witness seemingly random behaviour. We can think of infinite variations in social life, where people tend to act in an unpredictable way. Is it?! The chaos theory makes some order in the entropy.

As said above, Chaos theory is looking into phenomenon which are dependent on a specific state at the start point. This theory argues that objects in the system will act with sensitive dependence on initial conditions.

In other words, social behaviour start point is when a healthy baby gets born. From this point, this baby interacts with others on the system. We can think about significant others for emotional and immediate needs, but we can also scale up and see other parts of the system. The larger family, the neighborhood, the political and economic situation at that time. We can even scale higher – global warming phase, earth and its relationship with the sun system, and so on.

This person will have a life full of interaction with enormous number of parts in the big system, and also affect and influence others who present some sort of relationship with him or her. However, given that we are trying to explain social behaviour by the Chaos theory, we assume that the initial condition has a life-long effect. Psychological as well as biological, and recently neurobiological theories are dealing with the question of “nature vs. nurture”, and nowadays the assumption is that the nature and nurture are working hand in hand to facilitate a regulated adaptive behavior (Spiegel et al., 2014). Hence, our biological systems cooperate with the social environment to create a dynamic and responsive behaviour.

We can continue thinking in this direction, and find that the above concepts actually make some order and make sense. In the next posts I will review recent scientific developments in respect to physical models on social-human behaviour; and their stunning ability to explain complex relationship between macro socio-economic variables.

 

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Miller, J. H., & Page, S. E. (2009). Complex adaptive systems: An introduction to computational models of social life. Princeton university press.

Spiegel, Ivo, Mardinly, A.R., Gabel, H.W., Bazinet, J.E., Couch, C.H., Tzeng, C.P., Harmin, D.A, Greenberg, M.E. (2014). Npas4 Regulates Excitatory-Inhibitory Balance within Neural Circuits through Cell-Type-Specific Gene Programs.  Cell , 157 (5), 1216 – 1229.

 

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PRACTICE THE DOING GOOD

In the last few months, I enrolled coincidentally and luckily to two free online courses, given by Coursera‘s top professors. One of them was “Effective Altruism” by Dr. Peter Singer, and the other was “A life of happiness and fulfillment“, by Dr. Raj Raghunathan. Both courses, in this way or another, are dealing with important questions of meaning and significance, and discuss ways to improve what we are doing in our day-to-day life, in order to be better personalities.
I also, somehow, found myself watching with my kids the fabulous, amusing, and lovely movie by Julie Andrews, called “The sound of music“…

As a result of the three, I watched several interviews with Andrews after her voice loss; I bought Singer’s new book “The most good you can do“, and talked to friends about happiness and the ways we ruin our happiness by our own very hands (I still have a bunch of recommended reading to complete in the next 20 years…).
Then, I have discovered a link between all of the ideas, a shiny bright thought came into my mind. In fact, it is not that hard to do good, it is not that impossible to be happy even if we are not that achieving and successful in terms of what we think we should have been achieving so far.

The major point of Singer’s message is the willingness to do good with your money or time. It is not just giving your spare money or time, but doing it wisely and efficiently. Think about what you are planning to give, to whom, why to do it, and what evidence are exist in order to support your choice of giving. According to Singer, giving should be done by everyone who has something spare (time or money), and the leading principle is the choice of the best cause.

Andrew’s message, conveyed in many interviews and talks, is more than inspiring in my opinion. She repeatedly says she enjoys the most of her ability of giving joy and happiness to kids, families, and adults who watch her films and shows. She had a rule to sing only happy songs, never take the negative side, and commit to roles she felt may bring lots of fun and happiness to her audience. Even after the loss of her voice, due to a surgery failure, which was a complete shock to her and the rest of the world, she still found a way to do the best she knows, and started to write children’s books, with great messages of self-acceptance, and finding fun in each of every moment.

Last but not least is Raghunathan’s lessons for a happy life. He insist we can all find happiness in very simple ways, as long as we practice them. He counts several steps to follow (are described here very briefly). First, get rid of our need for superiority (what a burden it is, indeed!); Second, express gratitude to people who made our life better (if you think about it – there are numerous of them); Third, think and write what is happiness for us in a short sentence or very few words (for example: joy, abundance), and what makes us feel happy (for example: giving to others); Forth and trivial – eat, move, and sleep well. Fifth, give to others, as act of generosity. Sharing is caring, etc.; Sixth, and the most important – practice all of the above on a daily basis.

When combining the three inspiring, fascinating, engaging messages, the only question which comes to mind is “Ok. what do I do next?”
The answer is PRACTICE THE GOOD. Practice your thinking of effective giving, and do it. Practice your viewing and common mistakes of happiness, and focus on the bright sides. As a result, you will start to experience a great fulfilling and happy life, and eventually and hopefully these great positive feelings will last and enlighten yours and others’ life.

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Investment Opportunities

This page briefly describes investment interests (investors who are currently looking to fund a project); and projects that are in need for investment. If your interests fit those directions, please contact me.

Investors who look for projects:

  1. Waste management, HVAC efficiency/green (Israel+Americas) (Seed/A)
  2. Agriculture, Cleantech (Israel+North-America) (Seed/A)
  3. Software (Israel) (A)

Projects in need for an investment:

  1. A new embedded pico projection technology aimed at mobiles devices, AR/VR and the likes. Technology differentiation compared to existing solutions: >98% efficiency, 200-500 lumen light output, small size and extreme low power consumption. PM me for details (early stage) ($5M)
  2. Canadian patented, efficient, green light switch startup is looking to start global sales for a strong market demand. In urgent need for an investor to support business operations.
  3. A successful microalgae project is looking to expend its business in China, and start sales. The product is oil, rich in EPA, for feed and food needs. The amount requested is ($4M)
  4. Provisional clinical device project is looking for $150-500K USD Seed investment (with potential government match) for clinical research. Final product aimed for insurance market.
  5. Smart City lighting brain (collects, analyzes, monetizes a variety of urban data) with 10 provisional patents is looking for ~$1M USD seed investment. Final product aimed for cities.
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Introduction to systems thinking & social theory and practice – post #1

In the following  series of posts, I will introduce, review, discuss, explain, and examine the wicked topic of systems, by integrating several disciplines of knowledge (such as physics and sociology).

I will talk about actual consequences and implementations related to the social element in our life. By “social” I refer to the knowledge, perception, and practice about the human society. The materials I use are taken from academic books, lectures, YouTube videos, peer reviewed journals and so on.

 

Systems Thinking

 

The basic of systems thinking is that there is interrelationships between everything to everything. In simple words, what goes around comes around. This is not random this expression is using the round shape. It is circular. Think for a moment about earth, rounding around itself, rounding around the sun, other stars rounding around on the same system, the milky way within the galaxy, the galaxy within universe, and so forth. Step back, and see the same pattern for humanity. A child was born, circled by family, circled by broader family, circled by neighborhood, city, country, human beings, etc. now, add more components (let’s call them “agents”) to the system. Wild life, weather, forests, energy. Another frequent example is to imagine cloudy sky. We automatically know it’s going to rain, and then the sky will be blue again.

Russel Ackoff (2000) explains what is a system: “A system is whole which cannot be divided to parts, the system is dependent on how the parts interact, not how parts act alone. An example: life, our body; part of cars”.

We live in a never-ending system. In effect this is an infinite system, which is interrelated, and every agent is affecting other agents, and those relationships cause a dynamic change of the system. In fact, we are part of this complex dynamic system, and what we do is undoubtedly affecting other agents, in so many ways, shapes, and variations, but we tend not to see it, because we are not used to it, we think linearly.  We see straight lines. Cause and effect. A straight arrow from A to B. A led to B. we are having a hard time to internalize the obvious fact that it is a circle.

Systems Thinking

This may sound weird to you, but before getting familiar with Physics (especially quantum theory and information theory), and systems thinking in general, I was doubtful and considered myself a woman of facts and strong reality, with a special affection to multiple linear regression.

Therefore, repeatedly, Peter Senge introduced this topic of systems thinking in his book “the fifth discipline”, and in other lectures on (2014), with the very clear statement that Gut and heart are fundamental for every process of effective learning and action; and leader are the key. We firstly grasp it from the heart, then we translate it to thinking.

Ricardo Valerdi (2011) is convinced that system thinking is not a natural act. He explains that interruptions distract us from what we are doing; our brain is limited to boundaries of complexity and dynamics. As an example, he mentions Dan Ariely – “predictably irrational” book – on how people tend to wrong decisions because of abilities limitations.

In summary, systems thinking is not natural to us, we are not used to it, our school systems educate us to think linearly, however once we start seeing the patterns, interrelationships, grasp the complexity as a life fact, it is a matter of time, until we view the world utterly differently. Moreover, with enough practice, we can leverage our potential to achieve much better results, and avoid repeating problems.

As Senge says in his book “the fifth discipline” (1994): most of the problems we face as a humanity, reflect our inability to grasp and internalize complex problems.

 

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Regression to the Mean and its Implications on Program Evaluation

Background and Problem Identification

Most of the social / educational program are evaluated this way or another, and on this post I would like to focus on repeated measures of the same group of participants or individuals, as opposed to different groups comparisons or tests.

In many occasions we want to learn what is the impact of an intervention on attitudes, perceptions, and behavior; and by this we want to isolate the impact of the specific intervention, hence the program, and see how it changed the  attitudes, perceptions,  behavior, or a specific situation; in order to infer whether the intervention was effective or not.

Many of us will conduct t-test or repeated measures test. Another common way to  investigate those questions is using a linear regression model; and by this try to predict the change on our dependent variable by a series of controlled variables. However, here comes the “catch” –

Regression to the mean (RTM) is a statistical phenomenon that can make natural variation in repeated data look like real change. It happens when unusually large or small measurements tend to be followed by measurements that are closer to the mean.”
( Barnett et al., 2005)

The problem (RTM) may occur whether we measure an individual or a group, due to the random error (within-subject variance and between-subject variance).

A similar problem is identified as “a standard error of measurement (SEM), which refers to the standard deviation of an individual’s observed scores from repeated administrations of a test (or parallel forms of a test) under identical conditions”
(Koizumi et al., 2015)

The problem: variations in data sometimes DO NOT reflect a real change, but a correction of a previous random error.

 

In other words, we jump too fast to define a correlation as a causation, without checking carefully it really is!

Indeed, research conducted to investigate these measurement errors in social implications shows that many changes are accounted for RTM or SEM, and do not reflect a real change (Marsden amd Torgerson, 2012; Koizumi et al., 2015).

Ready to Think Regression to the Mean

Solutions and Food for Thoughts:

Be careful when you aim to predict something. Do not assume a vacuum. On the contrary, plan the study cautiously and take into account alternative explanations, and different routes for interpretation. In fact, there is some good advise on how to reduce the chance your study’s results will be affected by natural errors such as RTM.

Research Design:

  • assign participant randomly for all groups
  • make sure groups are the same size
  • always include a control group
  • control for alternative variables
  • use tools with high reliability
  • control for background variables and context

Data Collection and Analysis:

  • conduct more than one pretest
  • collect two or more baseline data
  • control for baseline average / st. dev. by adding the group mean to the equation (either on regression or Ancova)

(Koizumi et al., 2015; Bonate, 2000; Marsden and Torgerson, 2012)

 

Implications on Program Evaluation

Many social and education program seek to change an attitude or perception, and assist participants in gaining knowledge of certain areas (such as financial literacy or second language).

Evaluation for these program usually focuses on perception measurement using a  before-after design. Most of the time, RTS is not taken into account, and therefore interpretation of  program impact may be wrong. Needless to say, designs without a “before” measurement worth NOTHING in terms of explaining program impact or change. In addition, there is a second aspect to emphasize which is the presence of a control group. Very often it is very difficult to compose a group of participants just for the sake of evaluation; however you should take into account that if you do not do it, you will never be able to correctly assess neither a baseline nor a change in your group of study.

In short: be cautious, plan and conduct evaluation carefully, when bearing in mind that a change in attitudes, perception, behaviour or knowledge, can be explained by a variety of explanations, that may be slightly different than the intervention you evaluate.

 

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Subscribe if you liked (:

…and feel free to contact me regarding program evaluation consulting projects

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References:

Barnett, A.G., Van der Pols, L., Dobson, A. (2005). Regression to the mean: what it is and how to deal with it. Int. J. Epidemiol. , 34 (1):215-220.

Bonate, P. L. (2000). Analysis of pretest–posttest designs. Boca Raton, FL.

Guisasola, J., Solbes, J., José-Ignacio, B., Maite, M., Antonio, M. (2009). Students’ Understanding of the Special Theory of Relativity and Design for a Guided Visit to a Science Museum. In: International Journal of Science Education 31(15), 2085-2104

Koizumi, R., In’nami, Y., Azuma, J., Asano, K., Agawa, T., Eberl, D. (2015). Assessing L2 proficiency growth: Considering regression to the mean and the standard error of difference. Shiken, 19(1).

Marsden, E., Torgerson, C. J. (2012). Single group, pre- and post-test research designs: Some methodological concerns. Oxford Review of Education, 38, 583–616.

 

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Good Managers Make Decisions

I have not been in a writing mood for a while, and every time I was thinking of getting to write in my blog, I have decided that there was not a good enough story to share. I met only good managers, only ones who work hard to achieve organizational goals… (:
However, in the last days, the very simple yet extremely important idea of how to make decisions was striking me again and again, so here we go…

Every one of us, has been in a situation in which we were expected to make a decision, which will influence the future. Most of the time we do it without hesitation; however how many of us have had to make a critical decision that will impact the life of many? isn’t it the time when we start shaking, revisit, revise, analyze the data from a different aspect, consult again, and rethink if we are going to make the right decision?! I am not sure what about you, but I certainly was part of this group…

DSC05907

..and here is the important lesson I have learned… you make a decision, and THIS IS IT. Given that you already searched, researched, discussed the topic on management meetings, and you have a good understanding of what may happen in every option, you just need to jump the last step – DECIDE. EXECUTE. Do it.

The lesson above in very strong not only in terms of good and efficient management, but also in terms of our managerial ability to get improved. Once we learn to make decision efficiently, the organization can scale and grow; and our managerial skills are higher and better.

 

 

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3 Nonprofit Issues to Reflect and Ponder on

Nowadays I am involved in some very exciting projects, and would like to share with you some thoughts. By reflecting on the following issues, I have no intentions to convince you to adapt my view, and have no meaning to advocate for any system or line of operation; I rather wish to give you some food for thought. Something to reflect on when you have free time, some topics to discuss with colleagues, co-workers, directors, stakeholders, clients, etc. Ready To Think?! I hope you will also enjoy (:

1. Politics:
Well, this is quite a sensitive issue, but since we all have some sort of relation to politics – I would like to raise the question:
How much time do we invest in politics, and how much time is really required for making good out of it?
By asking this question, think, and ponder on, I am trying to count, quantify, and evaluate the output of the time I invest into the issues such as:
* What belongs to whom, and why?
* Why X obeys to Y?
* Is a specific type of relationship between stakeholders really necessary?
* What structure brings the most powerful results?
* How much does crony capitalism (of any sort…) affect the organization?
The last question I ask myself is – what questions are relevant to my organization, and what is the benefit from discussing it?

Not for profit management

2. Collaboration and collaborative action
This is another sensitive issue, but collaboration is a vital part of every organization, even if you do not realize it at first. You always want to leave doors open, you always want to collaborate, you can always share, and you do not have to always spy for sharks. They are out there, no doubt, but you can always find the benefit for the organization to grow from EVERY collaboration. Quit thinking in ego terms, and forget the matching part. Yes, do not forget if someone shuts the door on your face; BUT if they reopen it – go in and present yourself. Collaborate with similar organizations to learn and absorb; collaborate with complementary organizations to provide a better service to your clients; and collaborate with different organizations to amplify your impact and open your organizations to new directions. Forget, get read of competition terms, and find the benefit in collaborations. Believe me it works BIG time, even if not immediately.
The question is how and why do we invest on this connections, and how do we value them? 

3. The board role
The fact that businessman basically manage the nonprofit world is pretty precise. But given this fact, there is a bunch of benefits and opportunities for every nonprofit organization. You can advocate for your organization and get support, you can learn some business methodologies, you can learn business terminology, you get to understand business way of thinking. Until here I counted what YOU can learn. But there is another side, not less exciting – you can teach new methods, you can advocate for compassion, you may teach some beneficial terminology, you may convince to think in a social profit terms, you can gain more support on your side. Yes you can. Use your board, and make them work for the organization.
I would ask myself, over and over, what can I do more in order to engage relevant individuals in helping the organization out? How can I engage relevant individuals on pursuing some issues? Trust me, when you start interview and engage board members out of the board room, aiming to address a specific need or a topic, you get to discover a treasure of opportunities.

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In summary, I wrote about three issues only, whereas there are hundreds of them. However, my goal is to suggest a different way of reflection and analysis to managerial issues in nonprofits, and I trust my reader to interpret it their own way (:

Thank you again for reading and thinking.

 

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The Power Of Passion

Yesterday we had good friends for coffee and laughing… and high conversation… and when I woke up I just knew it, I knew that I am going to post about the passion of doing what you love, nothing but what you love (:

All of us, at some point of our life, or should I say many times on our life… feel stuck. Stuck in what we do, who we are, who with share our life with, our career, our children, you name it… But since my blog is focusing on management – let’s focus on “problematic” points in management, such as employees who resist to change, organizational stress, impossible deadlines, large projects that go nowhere, and so on…

Ready to think - management insights

Well, I have noticed two types of coping with those feelings:
* Fight it, and change things the way YOU prefer
* Accept it, and wait for this to disappear, or stay, or whatever

In my opinion, there is no doubt. I choose the first. I choose it because this is the way a manager is going to succeed. You cannot just accept things because you feel weak or lazy at some point, if you do that – you miss good things, if you choose it as a routine, then you lost it all. Fight to get things done the way you view it.

How?
* Face reality – describe the problem for yourself (pen and paper please)
* Focus on specific spots which cause the most of the mess
* Consult with relevant managers – always have another set of eyes, and someone who is willing to give a good advice
* Write a plan how to change route, fix cracks, etc. If you need to research it – then do it. It is much better to copy others’ successful ways of coping.
* Always have plan B and C. I usually find that three plans is a good number of alternatives.
* Do it, never give up. It will happen eventually.

Good luck (-:

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Being good is good for you

Quite corny, but always ends as pure true. Doing good to others is doing good to yourself.
Got to confess, I did not hold this opinion for all of my life. I sometimes fall into the evil trap, I sometimes do not believe there is good; however, when I eventually go through challenges, I am a better person, and so you are.

You are a better person, because you did good – you helped someone. So in fact you improved a bad situation. Most of the good people do not even know they incredibly helped someone, watch St. Vincent and judge for yourself…

The movie deals with “A young boy whose parents have just divorced finds an unlikely friend and mentor in the misanthropic, bawdy, hedonistic war veteran who lives next door.

I am sure he did not plan to be that positively influential, but so you are when you are doing without planning. You never know how much and why you influence someone’s life.

So next time you are somewhere, try to do good to others intentionally, be aware of your unlimited opportunities to sprinkle good and positive around you. Help someone on the road (even when giving them the option to change a lane safely), on the supermarket (you may entertain a kid when his parent is trying to pack, push, put, pay, etc.), you may even consider raise your hand and ask why if you think your company will do harm to the environment.

Just do good, it pays. It pays because it makes you a better person; and when you do good intentionally, you will do it also unintentionally (-:

 

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Not-For-Profit BUT Yes-For-What: Reviewing The Solution Continues… (part 2)

Ahhmmm…. got to tell you I am excited.
In the past weeks, I have had the opportunity to meet many professionals virtually, especially thanks to our lovely brother LinkedIn. I found myself in a process of learning, that I missed so much! well, enough with the introductions, let’s start thinking (-:

Just a short summary to get you to the point I am in now, in case that you did not read (you missed!) or do not remember (that’s fine (: )…
My first post on this issue dealt with the hard question – what are nonprofits for…and the essential need to connect doing to impact.  My second post in this regard dealt with impact measurement, and my suggestion for three elements in metrics: Usefulness, Friendliness, and standardization.
I have got lots of feedback, and it led me to a cross-way:
One group of people maintained the operational aspect, as the main weakness. The other group agreed on the need of impact measurement, however everyone is kinda not sure what is exactly the thing needed to complete the mission.

ready to think - management consulting

The Operations Aspect

I would like to take it one step ahead, and correct me if I am wrong, the operations-minded people are usually dealing with something we can touch, or at least can see impact simply just by looking what the organization does – water, agriculture, farms, vaccines, you name it. The impact measurement in this type of organizations is a short and sweet ROI analysis. Efficiency, effectiveness, benchmark, and performance measurement are relatively easy to conduct, as well as goals and objectives setting.
Another important suggestion was to collaborate and cooperate, and even amalgamate organizations that do the same/similar work. I agree with this way of thinking but would like to ask you managers – will you work on your ego and let another organization to work with you or instead of you? Think about it. If it works – there may be great, extremely successful models of business supply chain management, which employ this attitude – more for less – by a chain of organizations. Phrase it like this:
The bottom-line is the VALUE profit. As long as there are organizations which may do the same, or even better than your organization – the real impact will be achieved by working together, and collaborate. It also saves you money, and reduces costs!
I know it is the hard part of managers’ ego, but probably one of the realistic ways to save the sector alive in terms of impact.
In short, the question to ask yourself is this – What is your organization’s unique selling proposition? What is your competitive advantage on others? What is the special value your organization creates? You supposed to have a very good answer to this question.
An additional note in this regard, is Collective Impact. Someone referred me to the collective impact website. I researched it, and browsed the web, and I must compliment them for doing the first operations step – creating coalitions and collaborations in order to increase the impact. However, this is only the first necessary step. The sector is getting shrunk, and will continue this trend, therefore there is a vital need to amalgamate or eliminate ineffective programs, not just collaborate.

The Social Value Impact Aspect

The problem of impact comes to life again when we deal with the social hot potato, and you know what?! I am dealing with it!
There is certainly a broad agreement on the need, although I must admit that I am still shocked to see huge foundations refuse to measure themselves (ego and power issues??)… But let’s put it aside. Just another small reference – social enterprises are a relatively small part of the nonprofit sector. I will never call them the “forth sector”, because they are not. I will never agree that they act differently than the third sector, they are value-driven, and this is the crucial aspect. They DO NOT care about money more than value, and DO NOT care about profit and value the same way. Therefore they DO NOT have double bottom-line, but one, and the last is very similar to the pure nonprofits. I can count few real social enterprises, but they will be again the ones we can touch – bakery, restaurant, agriculture, cafe, and the like.
Show me one social services enterprise… it ain’t exist, because it is impossible, and here comes the social impact measurement to  help us.
Nonprofits consulting - ready to think

So, based on my criteria – usefulness, friendliness, and standardization, and since I got no criticism on that (-: , let’s start.

I did not define Standardization last time, so here it is: in my opinion is needs to be simple. The metrics should include up to 4 core elements, which will be relevant across the sector. By this, there will be an option to compare between one organization to another. There is an option to add as many as indicators you like and want, and it won’t harm the metrics, but will give your organization the specific information you are looking for.

So, this is my review, happened somehow to be very small and narrowed…
I rank tools in 1-3 scale. 1=low, 2=medium, 3=high. Hence, the highest total score is 9.
I try to keep it as simple as possible, so do not rank 1-10 or something like that.

An important note! If your organization does not have a work plan which included vision, goals, and objectives, you cannot employ social impact measurement at this time. You MUST define the above in advance. Do not know how to do it? Drop in my post on setting goals, and keep up the good work!

SROI  
I love this measure, however and in short, this does not apply in many social services and education nonprofits. If you are dealing with employment or any other outcomes which involve money, this may be the measure for you.
Usefulness (1): Applies to a narrow type of organizations (usually employment services, financial assistance, micro finance, and similar)
Friendliness (1) If you do not learn it thoroughly, and gain lots of knowledge – you probably won’t be able to conduct a reliable SROI analysis
Standardization (2) T
his part gets high score, because lots of research has been done, however there is no option to apply it broadly enough.
Total score: 4/9, 44%/100%

GRI / IRIS
I like the business attitude. This metrics will not save your life, but definitely will give you a way to benchmark your organization. This tool is used by many for-profits in order to monitor their performance, so I would rank it as the following:
Usefulness (1): it gets a low score here, because I am not sure how it is going to help many organizations in their day-to-day management in terms of measuring social outcomes. However some organizations might fall under the suggested social objectives, so I suggest to check it out.
Friendliness (2): the tool seems to be highly recommended and highly used by a variety of organizations. It does not gain the 3 points, because it does not fit every organization.
Standardization (2): you win the entire pot here. The tool is absolutely standardized, and you may feel free to compare your organizational performance to similar organizations in the industry. It is a huge advantage. I ranked it 2, because it does not apply in every field.
Total score: 5/9, 55%/100%

Social Impact Bonds (SIB)
I like the idea of social finance, because it makes much sense. It really builds a reputation for impact investing. In short, the system is designed to invest money in social projects, in order to PREVENT problems from reoccurring in the future (such as second-generation issues, recidivism, unemployment in specific sectors, etc.). The model briefly works by this: funding is given > intervention is made > evaluation of outcomes is conducted > in case of success (i.e. less recidivism, more employment) the government returns money to the investors. Even though I like the idea, I have no clue regarding the metrics and indicators they are using in order to evaluate social programs… it does not seem standardized or friendly, but it is just my outsider opinion.
Moreover, in my opinion, the social impact bonds model seems to fit to a narrow type of outcomes, kinda similar to SROI.
Total score: Unknown!
Ready to Think -Dikla Yogev

My list is much shorter than expected. I reviewed over 10 tools and methodologies, but did not like them at all, so why to mention them?

With that said, when it comes to social services and education, and other soft, hard-to-touch outcomes, the measures and indicators become useless. No usefulness, no friendliness, no standardization. Nothing helps. Therefore we must agree that there is another way to measure, and you know what?! it is not the kind, the gentle one… it is about achieving your objectives, measuring your VALUE. It is that simple.
Your objectives include “improvement of students’ grades”?
Show the improvement, between the beginning of the year and the end.
Your objectives include “women’s empowerment”?
Define what empowerment is, let’s say, they will be more responsible for their day-to-day tasks.
Show they have changed their behavior/attitudes.

Do not use excuses like “they are happy”, “their self esteem is higher”, “I feel it”… these are NOT your objectives, and therefore not the social value you wanted to create.

You will probably need a professional to help you with evaluation, it is impossible to do it alone, if you are not having a certain set of skills and knowledge (p.s. – yes, you may contact me if you need help with evaluations matters… (-: )

My next post in this topic will summarize my insights, and suggest a short-clear way to evaluate social impact; and yes – I am open for your comments and knowledge – just contact me and let me know.

I will be happy to get your comments, likes and shares. In the meantime… live beautifully (-:

 

 

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