In a recent meeting with a bunch o' foundation folks, we were talking all around the issues relating to impact. The conversation moved in a lot of different directions talking about things like philanthropy markets, and identifying a "unit of good", and how it is impossible to identify a unit of good, and accountability and transparency and who is accountable to whom and who needs to be transparent... As the conversation rambled, I began to crystallize how I think about this.
The End Game
A just and equitable world without suffering. To understand if we are moving in the right direction we need a lot of data and we need to all (philantropists, nonprofits, clients, and observers) be the solution we want to see.
A Reference Grid
I believe that we need to fight against the reflex to apply a financial metaphor to understand comparative good. The financial metaphor is attractive because it gives us the ability to compare the goodness of one organization with the goodness of another. However, this comparison is only relevant from the perspective of a donor. And, it is only relevant to a donor that is concerned with the specific effect of his unique contribution. It is this paradigm that drives the marketplace metaphor where product is packaged to be digested by the consumer. Unfortunately, in this paradigm, the consumer is the donor; therefore, the product is marketed to him. The goal is to create an environment where everyone is focused squarely on solving social problems without the noise that is created when two masters (donors and progress towards solution) compete for attention.
So, what I have tried to create in the graph is a way to examine efficacy along a three dimensional grid. Efficiency speaks to transactional cost. Impact speaks to social outcomes. And, transparency speaks to an individual's or organization's ability to play well with others. The more transparent you are, the better able you are to collaborate on solutions, to iterate through possibilities and improvements and to aggregate data so that regional and global progress can be made visible.
The nexus of the grid represents zero where there is no Efficiency, Impact or Transparency. The negative side is also important to examine. For example, the negative end of the transparency spectrum moves from opaque to obfuscation.
We can plot an individual or an organization on this grid or it can be used as a way to understand more generalized progress towards solutions. It is critical that we move beyond the granular approach of following a dollar from privilege to impact where accountability structures focus on the transactional layer, completely missing the donors and only tangentially focusing on solutions to problems. Instead, we need and hold everyone as accountable to creating solutions. We can only be successful if we are all impactful, efficient and transparent.