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Measuring Impact

NGO’s and non-profits have developed a system of tracking their activities and outcomes as they relate to a specific objective. By adjusting this method, we can help businesses measure the real value that they bring to the world.

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Define Objective

Many businesses provide vital products and services for people, but usually fail to acknowledge the true benefit their organization brings to the world, instead focusing on revenue earned instead of lives touched. If companies would evaluate their business and define their organization’s core objective in terms of real value they bring to the world, they would see their company in a different light. For example, Apple could define their objective as “Providing innovative technology to meet the needs of common people.” An ordinary farmer’s objective could be “Providing quality grain for the world.”

Measure Outcomes

By defining a core objective, businesses set up a basic parameter for measuring success. If Apple’s objective is truly to “provide innovative technology to meet the needs of common people,” their success would be measured by the number of people using Apple’s products and services. A farmer who defines his objective as “providing quality grain” would measure success by the amount of grain produced, and the equivalent people fed. This gives a truer picture of an organization’s growth from year to year.

Adjust Activities

Once there is a clear picture of an organization’s true impact, they can adjust their activities accordingly. Revenue is not seen as the end goal, but a means to further grow the company’s impact. If Apple’s objective was to “Provide innovative technology,” they would focus on making their products and services more accessible for everyone, instead of getting more money from existing customers. A farmer who truly wants to “Provide quality grain for the world,” would look for long term, sustainable ways to produce more grain.

Other Factors

There are other factors that also contribute to an organization’s benefit to the world. The number of jobs provided, as well as charitable contributions. These can be taken into account as well, along with the organization’s environmental footprint.

How does your concept celebrate, identify or inspire for-profit businesses that act as agents of world benefit?

This provides a framework that's helps their company identify themselves as "agents of world benefit," and gives them a framework to understand the impact they're having using numbers that in most cases, the company should already know. This allows them to change their focus and how their organization defines growth, and set goals for the future.

How will your concept help us create or leverage stories of world benefit that are sticky and shareable?

This concept backs up already existing stories with hard data, making them easier to understand, and share with others.

What will it take to scale your concept so that its reach is global and widespread?

For concept to scale up, there needs to be incentive for companies to measure the "good" their doing in the world. By providing incentives discussed in other concepts, such as tax relief, publicity, or access to low interest loans, the competitive nature of business is redirected to bring real value to the world.

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DeletedUser

Completely agree about the revenue recognition and the value should be placed on the positive impact their revenue has for global betterment. How do we encourage companies to redefine their objectives?

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