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If you can’t measure it, does it even exist?

Khanya Okumu is a 2019-20 Oxford MBA candidate and participant on our co-curricular Impact Lab programme. She reflects on one of the Impact Lab Masterclasses taught in the autumn term, an ever growing and popular discussion  by social entrepreneurs, impact measurement.

For quite a while now, in the world of ‘impact’, there have been many opinions on whether impact can be measured. Even more contentious views exist on how it should be measured and if there is scope for these measurement metrics to be standardized. To address this specific topic, the Skoll Centre for Social Entrepreneurship hosted a masterclass on the ‘Theory of Change and Impact Accountability’ as part of its Impact Lab Masterclass speaker series.

In a room of 100 people, less than a quarter were confident to admit they know everything there is to know about impact measurement and have the requisite skills to implement impact measurement well. This created fertile soil for speakers Nick Andreou and Francesco Valente (MBA 2018-19 candidates) to plant some ideas on how impact measurement works and how it should be applied to different initiatives.

The ‘why’ for impact measurement is relatively clear, imagine being a business owner or manager who did not monitor income, expenses, employee productivity or customer satisfaction, you would have no idea whether the business should continue or if you should just close shop. In the same way then it makes sense for social impact projects, programmes and investments to monitor and measure whether they are adding value in the way intended.

It’s the ‘how’ for impact measurement where things start to get blurry, and this is where a theory of change becomes important.

The logical steps in a theory of change start off with a needs assessment which identifies specific inputs or activities. These activities when done well lead to a specific set of outputs and outcomes. The result, therefore, should be impact.

I resonated with the initial definition provided by Nick and Francesco on what impact measurement is, as I am an accountant by trade, they defined it as ‘data collection and analysis – the accounting of the impact world’.

In order to do any kind of impact measurement well, the metrics need to be focussed on programme design, delivery and effectiveness. The three approaches covered in the masterclass are outlined in the figure below:

Figure table:

Impact (heading)
born ~50 years, example of bespoke study, focus on internal & external, is both quantitative and qualitative, has a low or different comparability, low to high rigour and very precise measurement.

Accounting (heading)
born ~20 years, example of GRI, ISO 26000,IRIS+ and more examples, focus on internal/external, is quantitative, has a high comparability, medium rigour and medium precise measurement.

Finance (heading)
born <5 years, example of Impact Money Multiple, focus on external, is quantitative, has a high comparability, low rigour and least precise measurement.

What is clear is that because of the varying outcomes to be measured different measurement tools such as reports, proxies and triangulation can be used. The challenges in adding rigour to the tools are the increase in costs and additional time required. Many ‘impact-first’ programmes tend to rely on external funding, funding which is intended to implement not necessarily for monitoring and evaluation. This is an opportunity for a work-around in the way funding is currently allocated by funds, donors and project sponsors.

By the end of the session, one thing was clear to me: there is a better understanding overall of impact measurement within the impact sector. Furthermore, our impatience with how metrics and measures could be standardised will draw us closer to a world where the metrics and measures are used in a way that adds value to all stakeholders.

The session noted above was part of a curated series of masterclasses for the Skoll Centre for Social Entrepreneurship’s Impact Lab 2019-20 cohort. This session was run by Nick Andreou and Francesco Valente and co-created by MBA students Marvin Tarawally and Aupah Makoond.

A new decade of impact investment: Three tactics to accelerate towards the SDGs

Tara Sabre Collier is not only a 2012-13 Skoll Scholar and Oxford MBA graduate- in 2019 she joined the Centre as a Social Entrepreneur in Residence. She has extensive experience in the world of social finance and international development, as a social entrepreneur and impact investment advisor.  As we begin a new year and decade, Tara Sabre shines a light on how far we’ve come (and how far we have to go) in achieving the UN SDGs.

This January kicks off an inflection point to consider the realities we have created since 2010 and those we aim to create by 2030. As of 2020, we now have ten years remaining to reach the UN Sustainable Development Goals, which serve as guiding pillars for envisioning a better future for the world.

Twenty years ago, the last time the UN set forth the ambitious Millenium Development Goals, we fell short of accomplishing some of the outcomes we envisaged. 2020 is different and can be a watershed moment for global development. Today, the private sector and public sector have partnered at historically unprecedented levels to tackle the world’s challenges. New allies have emerged, leveraging far greater amounts of philanthropic and commercial capital and every kind of vehicle in between. Impact investing, which was valued over $500 billion in 2018, continue to grow by leaps and bounds. By 2025, 30% of family offices expect to allocate 25% or more of the funds to social impact investments.

Nonetheless, the size of the impact investment required to reach the SDGs appears daunting in some cases. For example, achievement of SDG #7 (universal access to affordable and clean energy) would require $1.3-1.4 trillion per year until 2030. So how do we (the impact investment ecosystem) improve our odds of reaching the SDGs by 2030?

One important tactic that impact investors can take on is to pursue synergies across multiple SDGs. Researchers at Aberdeen University and University of Potsdam have already embarked upon fascinating research to analyze and forecast the synergies and trade-offs across the SDGs. This provides an evidence base for impact investors to accelerate and measure progress investing in multiple-SDG strategies, from gender-smart agribusiness development to climate-friendly infrastructure.

Another tactic is to innovate cross-sector partnerships. When impact investors pour capital into agriculture or education enterprises that impact SDGs, the business enabling environment can make or break the potential financial success and social impact of said ventures.  This is why alignment between impact investors and public sector will continue to be crucial; innovation can play a vital role in amplifying these alignments. Development impact bonds were the last decade’s major step towards innovating cross-sector alliances. The 2020s are an opportunity to bring technology, such as big data, blockchain and AI modalities, to continue innovating these alliances for more effectiveness.

Perhaps the most important tactic to accomplish the SDGs is to counteract “impact washing, i.e. the practice of funds or enterprises claiming impact in bad faith without generating any demonstrable social or environmental benefits. B Lab is one of the oldest sector-agnostic certification initiatives to bring accountability and transparency to the social enterprise ecosystem. And IFC launched their own impact investment standards in 2019. But for intentionally aligning impact investment with reaching the SDGs specifically, the Future Fit Business Benchmark is potentially one of the most powerful new tools for companies to understand and operationalize their impact.

Twenty years ago, there was no impact investment industry, no development impact bonds, no blockchain, no social impact certification agencies and barely any smartphones! And yet, despite the shortcomings, the period of the Millennium Development Goals was marked by biggest drop in global poverty in recorded history. Today, we have a fleet of new technological advancement, more supportive business enabling environments and a thriving new asset class supercharging our progress towards global development. Even with the enormous scope of the Sustainable Development Goals, with continued progress we may be on pace to accomplish them this decade.

How to Build a Purpose-Driven Venture

Mike Quinn is a 2007-08 Skoll Scholar and Oxford MBA alumnus, he is also the co-founder and former CEO of Zoona, one of Africa’s earliest fintech companies. With over 10 years of experience running a successful social business, Mike shares his hard-learned tips and experiences on how to get a purpose-driven venture started, built and scaled. This is the second article in the series, how to ‘build’.

In my last blog, I outline a three part strategy to starting a purpose driven venture:

  1. Start by falling in love with a big problem
  2. Pick the right co-founder(s)
  3. Rapid prototype to discover product market fit

If you get that far, you are well on your way and should be able to raise investment. The art of fundraising is a topic on its own that has been extensively covered, including this excellent piece by Y-Combinator’s co-founder Paul Graham. In this article, I’m going to assume you have some capital and now it’s time to build. Specifically, there are three critical foundations you will need to put in place in advance of scaling your venture (which will be the third part of this series).

Build a Model

I used to falsely believe that innovating means everything needs to be new and unique. A more mature approach is to first research what other models are out there that you can learn from. As John Mullins and Randy Komisar wisely advise in Getting to Plan B, start by finding successful analog models that you can emulate, and figure out how to copy and adapt them to your market. When launching Zoona, we studied M-Pesa’s agent and money transfer model in Kenya and figured out how to adapt it to Zambia where it didn’t exist. It’s a lot easier to build off of someone else’s successful innovation than to start from scratch.

Conversely, it is also useful to identify antilog models that are past their prime and explicitly define what you want to do the opposite of. In Zoona’s case, this was deploying entrepreneur owned and managed kiosks instead of branches as the banks and the post office were doing.

You will also need to figure out your growth levers, how you make money, and establish metrics and feedback mechanisms to track if your model is working. The faster you can learn and adapt, the greater the probability of success.

Build a Team

Your ability to build a motivated, aligned and high-performing team will make or break your venture. This is one of the most important jobs of an entrepreneur and ironically one of the easiest to screw up. When there is so much work to do, it is extremely tempting to hire the first person who walks in the door and leave her alone to sink or swim. I have learned that it’s much more effective to be purposeful and systematic every step of the way. Here is a checklist I use when building a team:

  • Do you really know what roles you need, and have you defined them as clearly as you can?
  • What roles can you outsource or make part-time to avoid taking on too much fixed cost?
  • Have you defined what values, abilities, and skills (in that order of importance) are required for each role?
  • Do you have a clearly defined Employee Value Proposition to attract the right people? (i.e. Why would anyone want to work for you?)
  • Do you know where to find potential candidates? (The good ones most likely already have jobs). Have you looked within your organization?
  • Do you have a non-biased process to assess candidates?
  • Have you thoroughly checked their references to identify red flags and validate their track records?
  • Can you “try before you buy” by starting new hires off as consultants?
  • Have you defined clear 30/60/90/180/365 day objectives and key results that will determine if the new hire is performing?
  • Do you have a process to give and receive regular and honest feedback?
  • Do you have a simple and effective performance management system?
  • Do you have a process to identify exit the wrong people?

The last point on identifying and exiting the wrong people is as important as hiring the right ones. A mentor once told me that the best recruitment firms in the world will only get it right 75% of the time, but the best companies in the world are those that efficiently deal with the other 25%. If you want to build a great team, learn how to compassionately offboard people who stand in the way of that goal.

Build a Culture

With the right people in the right roles, amazing things are possible. But for anything to be achieved, those people also need to exhibit the right behaviors, which is where your culture comes in. As with all my advice, the starting point is to be purposeful about designing what culture you want and then taking steps to shape that. If you don’t do this purposefully, a culture will emerge anyway, and it may not be one that is productive or that you want.

  • Have you defined your purpose, values and principles?
  • Do you live your purpose, values and principles?
  • Do you reflect and learn from failure?
  • Do you celebrate your successes and acknowledge achievements?
  • Do you care about your people and their well-being?

The golden rule for building an effective culture is “do what I do, not what I say.” As a leader, everyone will watch how you behave for signals on how they should behave. As Ben Horowitz rightly titled his latest book about creating culture, “What You Do Is Who You Are.” With any purpose-driven venture, time and energy spent designing and improving your model, team and culture will be time well-spent. It will pay off in multiples when you enter the next phase: scaling.

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My journey from Sydney to Oxford

Rangan Srikhanta is a 2019-20 Skoll Scholar and MBA. He is dedicated to equal and fair education for all as a catalyst for future progression and access to opportunities for the world’s most marginalised communities. Rangan shares the story of how this came to be his passion and how he ended up at the University of Oxford doing his MBA.

My journey to Oxford isn’t a typical one, but then again – as I soon found out, no one’s is!

Born in Jaffna, Sri Lanka, my family and I fled a civil war that would change the lives of millions of people. Arriving in Australia, it took me many years to realise that social disadvantage transcends nations and disproportionately affects minorities.

Many government policies when combined with externalities, in whatever their form, first manifest as minor differences in education and health in early childhood, but snowball into much wider social divides later in life (lower life expectancy, lower employment opportunities and so on). Layer in the rapidly changing landscape, thanks to technology – a fast forming digital divide, would also become synonymous with an opportunity divide.

As fate would have it, in 2005, I found an opportunity to do something to contribute to improving access to educational opportunities for thousands of children by closing the digital divide. One laptop per Child (OLPC), was a partnership among businesses, NGOs, and governments to produce the world’s least expensive laptop and to distribute that device to children all around the world. I was intrigued by OLPC’s vision of bringing those sectors together to solve social problems. I was equally impressed by the low-cost laptop that OLPC proposed to create.

Rangan Srikhanta is Ceo of One Education, an offshoot of the One Laptop Per Child scheme.

The device, which came to be called the XO, would cost just $100 a piece to manufacture, had free and open software, ultra-low power usage, a sunlight-readable screen and be field repairable.

Inspired on so many levels, I chose action over theory, opting to make numerous late-night phone calls to MIT to figure out what we could do to bring the project to Australia. Armed with what would be my greatest asset, my child like naivety on how these projects came in to being, I set upon a journey that would not only improve educational opportunities for thousands of primary school children but also change my entire trajectory in life.

Whilst our early days were focused on advocacy, it wasn’t until after our volunteer group formalised into One Laptop per Child Australia that I realised that the OLPC initiative needed a re-think to some of its core principles.

After delivering computers to many remote communities, it was clear that flying in, dropping off computers for free and then leaving was not sustainable and would undermine our ability to improve access and usage.

A major challenge facing remote schools in Australia is the tenure of teachers. On average teachers last 8 months. Any model that required face-to-face training was not scalable, would only serve to build a dependency relationship on our organisation, and do little to build local capacity to overcome teacher turnover.

In fact, we found there were many dependencies on suppliers (by design) that resulted in schools being forced to come back for repairs, support etc. This was a market failure that increased the cost of technology and reduced access to those that needed it most.

After evolving our programme over 10 years, raising just under $30 million to train over 2,000 teachers and deliver over 70,000 computers, it became clear that I needed time and space to reflect on my journey into the future.

Truth be told, after the management rollercoaster I’d been through over the past decade, I wasn’t convinced I needed an MBA. But to classify Oxford’s MBA with its deep connection to the Skoll Centre as ‘just another MBA’ is a career limiting move for anyone who wants to lead an organisation deep into the 21st Century. It forms the reason why I wanted to come here – this MBA, is a place to consider how externalities need to be core business for all executives.

One thing I didn’t anticipate was how the power of such a resilient institution like Oxford could be a catalyst for my own change. In my short time on campus, not only have I been able to reflect on why I came here, but have also started to reflect on where I will be going.

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The windy road from Kenya to Oxford University

Dr. Diana Esther Wangari is a current 2019-20 Skoll Scholar and Oxford MBA. She is the co-founder of last mile health venture, Checkups Medical Centre in Kenya where she dedicates her work to treating those who need it most. Read more about what led her to Oxford.

How does a young Kenyan doctor, who through her earlier years dreamt of being a neurosurgeon, end up at Saïd Business School, University of Oxford?

The answer to this – oddly enough – is a question. And this question is, “Do you want your life to count for something – or not?”

Here’s my story.

In my fourth year of medical school, I stood in the middle of a pediatric ward, having failed to resuscitate a young boy of four years and I knew he did not have to die.

John died from a case of complicated pneumonia. We could treat pneumonia. He could have been treated from his own village; he didn’t have to travel over 300 kilometers to seek care. That time taken led to complications. He did not need to be in my ward.

On that day in the middle of the pediatric ward, I asked myself one question, “Who am I? What am I doing here?”

I was in the biggest referral hospital, but majority of our patients, consisted of those who didn’t need to be there. They had preventable and very treatable conditions that could have been handled in a facility in their towns or villages. And by the time they got to us, the case had often complicated.

But childhood dreams are not easily abandoned.

And thus, it was not until my fourth year in medical school that I was able to accept a stark fact of the health sector in a developing country like Kenya – that no matter how hard I worked, treating the patients that came to me, would not be enough. My clinical practice would not be enough.  And, specifically, if I specialized in neurosurgery, I would cut myself off from the millions of Kenyans who would never in their lives encounter a neurosurgeon.

The kind of people whom I met every day as a fourth-year medical student – people whose courage in the face of adversity and extreme neglect sometimes moved me to tears – would no longer feature in my working day.

I suppose I should also be grateful that I was not only a medical student. Beginning from my second year, I had become, out of necessity, a fulltime journalist duly accredited by the Media Council of Kenya, having worked with Radio Netherlands and Reuters Foundation.

But between what I was learning from my colleagues in the newsroom and the unforgettable exposure to what ordinary Kenyans go through in their efforts to get treatment at a public hospital, a strange change came over me.

I began to feel that I would have to regard myself as a failure in life, if, as and when, my time was up, I had not made a tangible contribution to improving the quality of healthcare available to ordinary Kenyans.

Naïve as it will sound; I want my life to count for something. Naïve as it will sound; I believe I can have an impact, which will touch on not tens of thousands, but millions of lives. And naïve as it will sound; I believe that this is an ambition that is within my reach.

Isaac Newton said, “If I have seen further than others, it is by standing upon the shoulders of giants.”

I knew that Oxford University has historically been the abode of giants; and that it is a place where I too, can hope to stand on the shoulders of giants, and expand my vision of what I can do for my country and my continent.

So “Who am I? What am I doing here?”

I am the future of the Kenyan healthcare establishment. I feel like that who have come before me, have done their best but there is a lot more that still needs to be done.

So “Who am I? And what I am doing at the Oxford University’s Saïd Business School?”

I am Dr. Diana Wangari, a doctor, a journalist and a healthcare entrepreneur. As co-founder of Checkups Medical Centre, a health tech startup that operates a network of rapid outpatient clinics to drive last mile distribution of drugs and healthcare services.  This is not just a Kenyan issue; we operate in four African countries and plan to scale across Africa through partnerships and investments.

From what I have seen this far of the Skoll Network, the Saïd Business School and Oxford University Community, I am in the right place.

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My journey from Nepal to Oxford

Tsechu Dolma is a current 2019-20 Skoll Scholar on the Oxford MBA. She is the founder of the Mountain Resiliency Project to help build resilient refugee communities through women’s agribusinesses. She reflects on her lived experience and how it led her to an impact career and an MBA at Oxford.

There are 25.4 million refugees in the world; children make up half of them; 3.5 million school-age refugee children do not go to school, and only one percent of refugees enroll in higher education. I was born into these statistics.  I grew up in a Tibetan refugee camp and spent the first half of my life as a stateless person. Fleeing the civil war in Nepal, my family sought political asylum in the United States.

After becoming a new American, receiving my education there, then going back, I realized that my refugee community back home was stuck in a culture of waiting that international agencies had perpetuated and we had enhanced upon. Our community has been plagued with development barriers such as heavy youth outmigration, low student retention, poor water access and ethnic marginalization. But we were not working on solving our problems; instead, we waited for outsiders to bring in poorly designed, implemented and costly projects that would only last for a year or two. Inside the past decade, climate change and globalization has made living in the high-Himalayas increasingly more difficult and we cannot afford to wait. I made a risky leap so that we can reverse this development trend, and instead take a grassroots approach to foster local ownership, inclusion and capacity.

(Photo Credit: Mountain Resiliency Project) The majority of the villages Mountain Resiliency Project (MRP) works with do not have road access. They are some of the most remote settlements in the Himalayan range. Foot and pack animals travel is the lifeline of our communities. In this photo, Tsechu Dolma is traveling to one of MRP’s sites in Manang, Nepal, where the nearest road is a four-day hike away, plus a another 20 hours bus ride from Kathmandu, crossing a pass 16,814ft above sea level.

My entrepreneurial spirit brought me back to the refugee camps I left behind to start a social enterprise. I founded Mountain Resiliency Project six years ago while I was an undergraduate student. We have a proven track record of improving food security, women’s economic empowerment and leveling patchy development for 15,000 displaced farmers in Nepal. Our average families have increased their annual incomes by 200 percent. Most importantly, 80 percent of our family’s earned income is spent on their children’s continued education and the remaining is reinvested in their trade.  I realize the value of hard work and grit in achieving our true potential. Our work has received international awards and recognition for making strides. Today, we have 15 full-time staff leading our work in Nepal. I am rethinking the underpinnings of development in my community that has continued to perpetrate marginalization and dispossession. My vision is to scale Mountain Resiliency’s work worldwide. We want to grow out of South Asia to become the first-ever global network of refugee communities producing and selling goods to the mainstream market. Being a Skoll Scholar has supported my growth as a social entrepreneur and broadened my scope of advocating for and strengthening displaced communities.

Tsechu Dolma in camping tent, with background of mountain scene

The Skoll Scholarship aligns with my lifelong values of growing into an effective leader with the grit, vision and communication skills to be a steward to my community and environment. For me, it is the tool to address inequities, development gaps and improve livelihoods. From my work at Mountain Resiliency, I have firsthand experience of how effective social enterprises that are deeply rooted in empathy and relationship building can transform lives. Social entrepreneurship is the best amalgamation of my passion and skills for how I want to influence the world. My experience with displaced communities has taught me that when the system is broken and continues to perpetrate disenfranchisement to the most vulnerable, the solutions must come from the unconventional. On my journey through different landscapes, I seek connections with the human and natural world to find my place and understand economic development. The literature on human, nature and policy has allowed me to use ideas from development discourse, like ‘participation’ and ‘sustainability’ in a way that is both effective and critical. Displaced communities worldwide have little to no political leverage and only extractive industries and projects are in their region; resulting in inconsistent, patchy development. I intend to change this.