“How can I know that my ventures are actually creating a social impact?”

If you’re a social entrepreneur or an impact investor, you’ve probably asked yourself how you can make the most of your efforts and resources to drive change.

Impact management is the key: It’s a continuous journey of learning, adapting, and maximizing the positive effects on people and the planet.

So, how can you ensure that you’re managing impact effectively?

Here are six core principles that can guide you along the way:

1. Impact management is more than reporting

Impact management goes beyond simply reporting on your results.
It involves the drive to act, using data to make informed decisions rather than relying on intuition or gut feelings alone.

It’s also a practice that involves engaging with stakeholders and addressing their needs at the right time, rather than waiting for a final report to understand what didn’t work.

2. Start measuring from day one

Many people believe that you can measure impact only once you have outstanding results to show. Yes, reaching your impact goals takes time, but you’re making a difference along the way.

Start measuring your impact today to demonstrate your potential, track your progress, and understand what works.

The later you start, the harder it gets, and you risk missing valuable data that could improve impact performance and alignment among stakeholders.

3. You’re in control: managing impact in-house

Effective impact management begins with a caring mindset that considers the effects on people and the planet in all we do.

Owning your impact strategy and applying it daily doesn’t have to be hard. It will ensure that impact is an integral part of your organization’s culture, rather than solely relying on external entities.

4. Intentionality is crucial, but it’s not enough

Some investors and entrepreneurs might think measuring impact isn’t necessary if it’s embedded in the business model.

But we can’t improve what we don’t measure. Data is essential to make better decisions and drive meaningful change.

5. Embrace the 80/20 principle

You don’t need to measure everything or optimize all processes and results.
It’s impossible to avoid every single negative effect.

However, by measuring just a few key metrics and being aware of your project’s main effects, you can already make a significant difference.

6. Manage impact outside the spreadsheet

Tracking data is crucial, but its real value lies in taking action.

Once you’ve set up your impact management system, you’ll see that managing impact is about more than the spreadsheet — it involves relationships, daily processes, and decisions.

Impact management is a practice.