Date: 2024-12-26 Page is: DBtxt003.php txt00005336
Peter Burgess LinkedIn Dialog
Impact Investing Forum
Role of metrics & what is the right metric? ... How Do We Create a Culture of Measurement?
Burgess COMMENTARY
Peter Burgess
Follow vijay role of metrics & what is the right metric.... How Do We Create a Culture of Measurement? skollworldforum.org In an effort to capture the latest thinking and doing in metrics and evaluation, the Skoll World Forum partnered with the Aspen Network of Development Entrepreneurs Metrics Conference held just a few weeks ago, and … 3 days ago Like CommentUnfollow Flag More Nguyen Linh likes this 6 comments
Michael Walsh Follow Michael Michael Walsh • A great majority of investment measures are relative to other alternatives and conventions So any new area needs agreed and firm definitions and conventions SRI investing has got there in about 10-15 years It takes time and respect for current conventions Imagine a CFA subject on imact investment and you are on the right track 2 days ago• Like
Andrew Deitz Follow Andrew Andrew Deitz • Agreed we live in an information economy yet we struggle to measure sustainability and lack the data infrastructure to account for the environment. A systematized approach to Natural Capital Accounting provides leading companies the ability to ability to make more informed economic decisions and better manage resources across corporate value chains. 1 day ago• Like
Debbie Campbell Follow Debbie Debbie Campbell •
Yesterday I had conversations with several thought leaders who share my passion for improving the way that sustainable sources of capital flow into various instruments for social change...not just affordable housing finance and preservation. The discussions focused on the push for measurement of the social ROI in addition to financial earnings. Of course, the social ROI can, in many cases, be monetized to create a clear understanding of how costly it is to simply do nothing. Part of the discussion was fueled by a Bill Moyers segment that I shared yesterday that focused on 'community ownership' and its link to equitable housing. It was particularly interesting to me because it caused the question of whether compelling anecdotal stories of individuals were enough, or if it was important for the affordable housing finance space to bring together or create the studies and analytics to quantify and prove the monetary benefit of the social good resonate.
This is a throw back to the private sector and my experience at a company that was as passionate about quality as it was in measurement to inform its marketing claims, and competitive and business decisions.
Then, another friend, @Thomas FitzGibbon and I were talking and he mentioned an article from a past issue of The New Yorker, titled Million Dollar Murray. I don't know how I had missed it, but it hit home the lessons learned about the 'price of non-conformance' and 'Quality is Free' from my days in the private sector, and left me confident that we can do a much better job. An important message is being lost. The big difference is that in the private sector it was more about widgets and higher profit margins and in this context it is about humanity and practical solutions. Later I talked to another friend about what and how, or even if we need to be measuring and he knew both proponents and opponents; explaining the the opponent thought that the time should be spent doing rather than measuring.
A valid point with so much suffering all around us and every minute we spend measuring could be a minute that we are not doing. However, for me it came back to a need to communicate value both to investors focused on the fiercely competitive choices of where invest their money and to the general public about how and why addressing the affordable housing crisis in a well informed and purposeful way makes sense for humanity and the economy. It provides both a financial and social ROI that everyone should care about.
I would be interested to hear from group members, especially about other articles and reports that may be out there, or studies that are on-gong or pending. While I believe that information is one of the keys, duplication is not, so your assistance and observations will be greatly appreciated. I have started to compile what I have found on the Investor Gateway portion of our web site under News & Resources for those who are interested at www.communityhousingcapital.org 1 day ago• Like
vijay rajkumar Follow vijay vijay rajkumar • Debbie, to me the debate is not about whether to measure or not to measure. It is about what you measure and how you use the results. If we are clear about what we are measuring and how we are going to use it. It definitely helps us do what we are doing better in addition to using it for profiling, marketing, where to invest or any other use. Just having our hearts in the right place is not enough, we need to know if our efforts are delivering the desired results and the make the required course correction if it is not. 6 hours ago• Like
Michael Walsh Follow Michael Michael Walsh • I have a simple compass Investment has a return that is measurable, SROI ok Philanthropy has an impact, which may be measurable A strong and clear distinction between investment and philanthropy is vital _ both can lead to great utcomes That's the stuff of our civilization Cheers 5 hours ago• Like
Peter Burgess Peter Burgess •
I have a passion for metrics, but it is important that we measure what matters. If one listens to the conversation about economic performance (Bloomberg, CNBC and so on) there is constant chatter about (1) money profit for business; (2) stock prices for investors; and (3) GDP growth for policy people. GDP growth makes it easier to have money profit growth and stock price rises. There is no chatter about any metrics that get to the core issues that are the cause of unsatisfactory socio-economic performance.
As a former CFO I am aware of the huge amount of data that is available inside the corporate organization that can be mobilized to do analysis for optimizing corporate profit performance. As a mere observer of the technology scene I am aware of the amount of data that are now in existence and could be mobilized to improve socio-economic performance. We don't yet have an easy framework for analysis of these data and reporting in ways that would result in appropriate accountability for decision makers throughout the economy and society.
The Triple Bottom Line (TBL) is a step in the right direction, but it is not enough. In TBL analysis the subject of analysis is people, profit and planet but the perspective is still that of the organization. I want to see more. I want analysis of impact on people, place, planet and profit and to see the causality linked to organizations, place and product.
All economic activity is located in a place. In many, if not most, cases the implementation and financing is associated with organizations, the impact on people (jobs, quality of life) is associated with place, and the impact on planet (use of resources, environmental pollution, etc) is also associated with place. Because of the structure of the modern organization and its supply and distribution chains, it is also necessary to associate impact on people and planet with product.
When people are able to associate impact on society (people, place and planet) with product, they will be enabled to make informed decisions. Corporate organizations know the power of product information ... that is what advertising is all about. Publicity around the impact of product on society can make a big difference. The web ecosystem already carries product reviews gleaned from social media, it would not be a big step to enable a similar technology to inform consumers of the standing of a product with respect to its impact on society.
There are all sorts of possibilities based on big data, existing data and data that could be mobilized if those in leadership positions were serious about measuring impact and using impact data for decision making.
Peter Burgess TrueValueMetrics 2 seconds ago