Measuring Social Outcomes

The impact on the social value of those starting ventures is the driving force behind the origination and, most likely, the passion of the founder. While critical to all social ventures, measuring this social value and determining when a value inflection point has been reached is the basis upon which our social venture is based. We receive income based upon meeting predefined social value levels. The question then becomes at what level to value such outcomes, how to transparently and consistently measure these outcomes, and of course the particular methodology used for measurement. 

Value, in economic terms, can be thought of in different ways. The article, "Measuring Social Value," has proposed that value is best measure as the point at which supply and demand meet. The question then becomes for us, what is this point and who is supplying and who is demanding? Certainly, the demand is through the community and taxpayers, represented by a proxy in government. however, this has made me think - other civic institutions could use our services. It would only be limited by creditworthiness. As it is essentially a contract, any party that is legally allowed to enter such agreements could be a demanded of our services. The same could be said for suppliers. While we generally think of non-profits as providing the the social outcomes through funding, any party could be a group that could do the work promoting social value. Finally, we have a second set of demanders - the investors. They could be desiring to promote social good, or promote a certain program over others, speculating or even hedging. While lots of competing dynamics and interests are at play, the one constant is the need to measure - to measure accurately, transparently, and consistently.

Because there is money involved that may or may not changed hands based upon predetermined measurement, this measurement must be supplied in a transparent and consistent manner outline prior to the disbursement allowed by the contract. This brings in the idea of proper methodology. How do we measure these outcomes? What is a legitimate measure of outcomes? Do they get discounted if they are in the distant future. Can we be sure they are even realized in the distant future? As this is a crux of out business model, we need to start developing a rigorous methodology, because with out being able to present this, we have nothing to stand upon. The article really help me take a new line of thinking about how to measure these outcomes. Initially, I thought I would just use raw numbers and develop statistical inference from it. However, other items like a Public Value Assessment or Life-Satisfaction assessments may very well have place in our measurements. I think we need to do a more thorough and deep dive in to how social value needs to be measured.