On October 27, 2016, the Mowat Centre, which describes itself as “Ontario’s Voice on Public Policy” (“Mowat”) released a report titled, “Unpacking Impact – Exploring Impact Measurement for Social Enterprises in Ontario,” (“Report”). The Report examines the challenges with developing effective impact measurement practices for social enterprises and provides specific recommendations to assist social enterprises in Ontario. Measuring the social impact of social enterprises is stated by Mowat to be a “persistent challenge”, but at the same time is “critical for building confidence, demonstrating accountability among potential funders and investors.” In preparation of the Report, Mowat undertook in depth literature reviews, informant interviews, and consultations with practitioners both in Ontario and globally, and in doing so identified a number of challenges, areas for improvement, and recommendations for improving impact measurement practices.
Some of the challenges that Ontario social enterprises face with respect to the quality and consistency of their impact measurement practices identified by Mowat include: capacity (e.g. lack of time, skills, resources), inconsistent and unreliable data, inaccessibility to privately held data, lack of funding for intermediaries, lack of funding specifically for impact measurement, inability to locate and implement certain methodologies and tools, lack of interpretation of intangible outcomes (e.g. qualitative data), undervaluation of impact measurement generally, cultural and philosophical differences, and a lack of uniform policies and impact measurement standards.
After identifying a number of the challenges of impact measurement, Mowat then listed a number of the leading global practices, but at the same time was careful to point out that one size does not necessarily fit all. Some of the key themes identified in the global practices, which Mowat suggests could be a “good starting point for Ontario”, include: developing a universal process that is flexible and adaptive, starting measurement with basic principles (e.g. what do you do, for whom, and why), the act of measurement visibly contributing to good management, allocating time and money on measurement that is useful and appropriate, balancing the costs against the benefits, and agreed upon indicators with key stakeholders, amongst other things. The Report further indicated that the key conditions for success include reliable data, technology, funding and capacity.
Mowat concluded its Report by making a number of recommendations for improving impact measurement practices for social enterprises in Ontario, which include: building from the bottom up and identifying a “backbone organization” that would “act as an advocate, convener, educator, and centralized resource library,” developing common practices based on international best practices, aligning key stakeholders on a common practice, prioritizing training, learning, and capacity-building, investing in shared infrastructure, providing funding specifically for impact management, in addition to establishing pilot projects to develop sector-specific impact measurement procedures. The Mowat Report is a very useful resource tool for anyone interested in learning more about the developing trend of social enterprises and their impact in Ontario.