Making the case for custom metrics: deep listening for impact measurement

Common Approach emphasizes that impact measurement should be driven by those most affected by an organization’s actions. However, Common Approach’s own consultations indicate that while 60% of social purpose organizations (SPOs) engage in some form of impact measurement, most do not meaningfully involve those impacted in the process.

Deep listening, as demonstrated by Omidyar Network India, offers a pathway to bridge this gap. Their approach enables organizations to:

1. Capture lived experiences: AI-driven voice and text analysis reveals not just what people say, but how they say it.
2. Identify impact-market fit: Understanding whether a company’s strategy aligns with its intended impact ensures that investments truly serve people’s needs.
3. Adapt and refine: Listening over time allows organizations to make informed adjustments to their strategies.

A recurring challenge in impact investing is the tension between uniform and custom metrics. Investors often favour standardized metrics for their comparability across a portfolio. However, when uniform metrics fail to align with an organization’s strategy or context, they risk measuring the wrong thing.

Custom metrics allow organizations to:

1. Align measurement with strategy and community priorities.
2. Ensure data collection is useful rather than burdensome.
3. Capture meaningful nuanced impact beyond what standard metrics can measure.

The deep listening approach detailed in the article highlights the value of custom metrics. For example, deep listening with Entri, an online learning platform, revealed that job readiness—not just job placement—was the key impact driver. This insight, missed by traditional metrics, helped refine Entri’s approach to scaling impact.

Common Approach supports a flexible measurement system that allows for both standardization and relevance. Investors are increasingly recognizing that relevant data provides better insights than strictly comparable metrics.

To improve impact measurement, we must embrace both deep listening and custom metrics. This shift requires:

1. Integrating qualitative insights into measurement frameworks to better capture the voices of those most affected.
2. Encouraging investors to support custom metrics that reflect meaningful impact rather than relying solely on standardized measures.

This article demonstrates that human-centred measurement is not only possible but essential. By shifting from static, standardized metrics to dynamic, participatory methods, we can create an impact measurement ecosystem that is both rigorous and responsive to the needs of those it aims to serve.