This module tackles the How Much dimension of our impact rating template. The How Much dimension can be thought of as an extension of the What dimension: here, we consider how much of the kind of impact – the What – associated with an investment has happened, is happening, or is expected to happen.
Different outcomes lend themselves to different units of measurement and different scales, depths, and durations of impact. As such, how you set up the What dimension of your impact rating will inform how you set up the How Much dimension.
Some investors evaluate the How Much dimension of an enterprise’s impact by using current performance as a proxy for future performance. Others may build projection models to estimate expected future performance.
Key concepts in the How Much dimension:
Scale: the number of individuals that are experiencing or are expected to experience an improved outcome
Depth: the degree of change in outcome that stakeholders experience or are expected to experience
Duration: the length of time over which stakeholders experience or are expected to experience the change in outcome
Key Concepts: Scale vs. Depth vs. Duration
‘How much impact is this enterprise creating or expected to create?’ As it turns out, there are three different ways one might answer that question. And we will build all three into the How Much dimension our impact rating.
Building an Impact Rating: How Much
Not all impacts are measured with the same yardstick. For this reason, how you set up the How Much dimension of your impact rating will depend in part on how you set up the What dimension.