Strategy

A clear strategy is the foundation of impact management. Why do you do what you do, for whom and how? Only once you have clearly mapped this out for your organisation can you properly measure whether you are actually effective. Although many organisations have this described somewhere, it is still useful to critically review it again when you start working with impact management. Are our objectives still correct? Has the context changed in the meantime? Do we use the same definitions? What assumptions do we make?

Which steps can you take?

If you want to develop or sharpen an impact strategy, the following steps apply:

The first step is to make the organisation’s social mission and impact objectives explicit. For some organisations, this is already very clear. Others may still be at the very beginning, about to change course, or noticing that the context of the issue has changed. In that case, it is useful to carry out a thorough analysis of the societal problem you want to address. The aim is to better understand where the problem comes from and what is needed to solve it.

Next, you explore possible solutions. By engaging with stakeholders, experts and reviewing literature, you can better define the problem and shape possible solutions. Which existing approaches are effective, and can you deploy them? Which activities do you already carry out yourself and need adjustment?

Once it is clear which approach you will use, you can formulate your impact objectives. These may be ambitious, but also realistic within the resources available to you. You can refine your impact objectives over time based on research results and experience.

Which tools can you use?

Theory of Change

At Impact House, we like to work with a Theory of Change (ToC). In this model, you work out how you think you will achieve your intended goals. A Theory of Change clearly shows the causal relationship between activities and impact. You visually map which effects occur as a result of your activities and how these feed through to impact in the longer term. Drawing so-called change pathways provides a clear and comprehensive picture of your approach.

Components A Theory of Change can be structured in various ways and developed in different forms, but always consists of the following components:

  1. Input: what resources do you use to ensure you can carry out your activities effectively? (e.g. a training room and qualified trainers)
  2. Activities: what activities do you undertake (e.g. a training programme or practical coaching)?
  3. Outputs: what are the immediate results of your activities? (e.g. the number of participants in a training course)
  4. Direct effects: what changes result from the outputs? (for example: the training participant has gained more knowledge or skills)
  5. Indirect effects: how do direct effects translate into indirect effects (in the longer term)? (For example: better job prospects or more social contacts.) These are often the effects you hope to achieve. The higher up you go in the ToC, the less significant your influence becomes

When drawing up your ToC, it is important to be aware of assumptions and contextual factors:

  1. Assumptions form the link between different levels of impact. They describe the conditions required to achieve the desired change.
  2. Contextual factors are the external factors that influence the impact of your approach. Contextual factors can be positive (enablers) or negative (disablers).

The components of a Theory of Change

Legend:

External factors that influence the changes. These can be positive (enablers) or negative (disablers)

Assumptions: the link between levels of impact. Describe the conditions required to achieve the desired change.

Change theory at various organisational levels

A Theory of Change can be developed at various levels within an organisation. From the organisation as a whole to overarching programmes or specific projects. These levels should logically align with each other: an organisational ToC provides direction, while programme and project ToCs further concretise this based on local context. Together, they form one consistent whole that runs from strategy to execution.

Tips

Formulating a Theory of Change is a valuable process to do together. It ensures that you as a team share the same vision of the impact you aim to achieve.

It is also highly valuable to involve stakeholders from outside your team. This helps to avoid blind spots and increases support for your Theory of Change.

Review your strategy annually: does what is written still hold, or have lessons been learned in the meantime that require adjustments to the strategy?

Read how a.s.r. experienced this process: using theory of change for social programmes.

Read more

Example: An impact strategy helps a municipality to clearly articulate what it stands for, which societal goals it wants to achieve and what difference this should make for residents. A strong impact strategy aligns with political priorities, statutory responsibilities and the values that matter within the municipality, such as liveability, sustainability and social justice. By making deliberate choices about which themes and projects to invest in, the municipality strengthens its position and works towards visible improvements, especially for the groups that need them most. This same focus forms the basis for impact-driven grant funding: because it is clear which effects are central, grants can be targeted at initiatives that genuinely contribute to these outcomes. In Tilburg, we saw how this worked in practice: by first clarifying the societal challenges and then working together with grant partners to assess which activities actually contribute to those goals, the conversation shifted from “what do we do?” to “what difference do we make?”. In this way, an impact strategy and impact-driven grant funding reinforce one another.