At Atland, we’re often asked about measuring impact, the reasons behind it, and the best ways to do it. That’s why, when I came across an insightful article in the Harvard Business Review by Robert S. Kaplan and Constance Spitzer (Kaplan and Spitzer, 2024), I was curious to learn how the experts from the leading institution in business management tackle those questions. The authors discussed “a better way to measure social impact,” highlighting some insightful case studies. It was indeed thought-provoking, but I would like to add a slightly different angle.

Let’s address one of the key questions first: Why measure impact in the first place? As with any other topic of such complexity and magnitude, there is no single answer. It could be to tap into new investment opportunities, improve ESG ratings, save on operational costs, or access new markets. Measuring impact can also demonstrate to stakeholders that the organisation is committed to creating positive social and environmental value beyond financial returns.

With the introduction of EU regulations such as the CSRD Corporate Sustainability Reporting Directive, Non-Financial Reporting Directive (NFRD), Sustainable Finance Disclosure Regulation (SFDR), and the Green Deal, business owners are now dealing with a myriad of metrics and rules to track. It can feel overwhelming, especially when they keep changing, and impact lacks clear reporting standards.

Turning back to the referenced article, Kaplan and Spitzer provide great examples of social impact measurement in action. Let’s examine the referenced case study and analyse why it’s an excellent example of impact measurement yet may not be applicable to the majority of organisations.
In 2018, Bayer funded the Better Life Farmin (BLF), which supports smallholders – small-scale farmers who manage small plots of land, often relying on family labour, and play a crucial role in local food production and rural economies – in opening businesses and create new positions for agri-entrepreneurs. To show BLF’s social impact and ways the organisation changed lives, they collaborated with 60 Decibels, a social impact measurement firm, to directly gather feedback from smallholder farmers involved in their BLF program in India.
Over two years, they surveyed 1,000 farmers, collecting data on both economic and non-economic impacts. The findings provided a holistic view of how the program improved lives. Armed with this data, Bayer expanded the program to new regions, using impact evidence to justify the expansion.
While this is undoubtedly a great example of comprehensive impact measurement, it’s not realistic for most organisations, especially those on a tight budget. Most Small and Medium Enterprises (SMEs) don’t have the resources to hire external contractors and reach thousands of stakeholders over several years. However, there are several lessons that can be learned and applied to smaller-scale organisations.
How Can SMEs Measure Impact on a Budget?

How Can SMEs Measure Impact on a Budget?

1. Why are we doing this, and who does it matter to? The first question to ask yourself is why are you measuring impact? Are you trying to enhance your public image, obtain government funding, or attract new customers? Identifying your goal will help to focus on the right audience and understand what is it that it cares about.
2. What are we good at, and how can we show it? Once you know your goal and audience, the next step is figuring out how to demonstrate that you, in fact, have exactly what they want. This is where you will need to dig into your business model and talk to the stakeholders. The answer is likely already there, waiting for you to find it.
3. Choose a theme. Everyone loves a theme, and your impact assessment is no different. Based on your goal, audience, and business model, identify the specific impact you want to investigate. Your theme should:
   • Align with your business model,
   • Show how you meet your target group’s needs,
   • Be backed by reliable data.
4. Work with the data you have. If you are on a budget, you might not be able to conduct large-scale studies. Instead, take advantage of publicly available reports or run smaller research projects

Case Study: IJM
Let’s look at a real-life example that shows those steps in action. International Justice Mission (IJM), a global human rights organisation, simplified its approach to measuring impact. It identified its donors as the target audience – people who clearly care about human rights and hopefully, reducing the amount of their violation. By doing so, IJM focused on key metrics such as reducing violence and increasing convictions to show their success in protecting vulnerable people. It analysed human rights-related crime rates before and after its intervention, demonstrating measurable impact in a cost-effective way.
If IJM’s goal was to obtain government funding, it could have presented its impact differently, for instance, showing how reduced violence lowers the costs related to the criminal justice system – for example prison expenses and victim support – thereby justifying the investment.

In Conclusion
It’s clear that with ongoing regulatory changes and emerging trends, there will be an increasing push for organisations to demonstrate their impact. Experts suggest that to effectively manage an organisation, you must understand and measure its impact. If you want to do so while being budget-constrained: działania

1. Know what you want to achieve,
2. Understand your audience,
3. Align your efforts with your strengths,
4. Focus on a theme that ties it all together,
5. Collect data that’s relevant, credible, and actionable.

If you are not sure where to start when designing an effective impact measurement strategy, reach out to Atland! Our team of experts will assist you throughout the process.