How does portfolio level impact management differ from investment-level? How can the impacts of individual investments be aggregated to the portfolio level?
Module 3 provided an overview of impact-financial integration. Determining which investments are more or less aligned with your impact and financial goals reveals investment-level insights that help you move your portfolio towards the efficient impact frontier.
Before we dive into integrated analysis and decision-making, however, we must start from first principles: what kind of impact does your organization want to create through its investments?
- Articulating your portfolio level impact goals in terms of the What, Who, and Contribution dimensions of impact helps facilitate integrated performance management at both the portfolio and investment levels
- Creating a dashboard of portfolio level impact and financial metrics, and setting performance targets for those metrics, facilitates integrated portfolio management alongside integrated investment-level decision-making
Portfolio-level Impact Goals & Integrated Dashboards
Defining your portfolio level impact goals in terms of the What, Who, and Contribution dimensions can guide both portfolio level and investment-level impact management. This worksheet can help you get started.