The Theory of Change forms the foundation of any social value measurement system. It provides a clear framework for understanding how a Social Enterprise’s activities lead to measurable outcomes and long-term impact. By defining the relationships between activities, outputs, and desired changes, the Theory of Change ensures accountability and effectiveness in achieving social impact.
A well-structured Theory of Change helps Social Enterprises:
The raiSE Social Enterprise Model Canvas (SEMC) supports the development of a comprehensive Social Enterprise strategy, including the articulation of the Theory of Change.
Identify the ultimate impact your Social Enterprise seeks to achieve for beneficiaries. Consider not just direct beneficiaries but also the broader effects on families, communities, and society.
Work backward from the desired long-term outcomes to determine the necessary preconditions and changes required to achieve them. This ensures that each step in your business activities is meaningfully connected to the intended impact.
Determine the specific actions within your business model that contribute to the desired social change. Clearly linking these activities to the long-term outcomes ensures strategic alignment and maximizes impact.
Collaborate with stakeholders to establish key performance indicators (KPIs) that will track progress. These indicators provide data to assess how effectively your enterprise is meeting its long-term objectives.
Clearly communicate your Theory of Change by explaining the rationale behind your objectives. A well-articulated Theory of Change provides clarity on how your activities contribute to meaningful, measurable, and lasting social impact.
By mapping out and regularly refining your Theory of Change, your Social Enterprise can strengthen its impact strategy, improve decision-making, and enhance transparency for stakeholders.
Once you are ready with your TOC and SEMC, upload your completed SEMC to the raiSE Membership Portal
If you are part of the raiSE Impact Community, we have designed a 7-step journey that would guide you towards strategic incorporation of social impact in your business.