Making the case for custom metrics: deep listening for impact measurement
Impact measurement seeks to paint a full picture of the change being created. Data is a key part of this picture, but numbers alone don’t tell the whole story. Understanding impact requires listening—not just to numbers, but to the people those numbers represent. Deep listening, with the help of AI-driven text and voice analysis, offers an avenue to do just that.
The article Deep listening for impact measurement from the Stanford Social Innovation Review resonated with us in its discussion of AI-driven text and voice analysis as used by the Omidyar Network India. Common Approach is committed to building impact measurement standards that place the power with operating charities, social-purpose businesses, and those they serve. This article presents AI-driven deep listening as a way to give power back to those served by centering those most affected by the impact being measured.
Engaging with those most affected: a core practice
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:
- Capture lived experiences: AI-driven voice and text analysis reveals not just what people say, but how they say it.
- Identify impact-market fit: Understanding whether a company’s strategy aligns with its intended impact ensures that investments truly serve people’s needs.
- Adapt and refine: Listening over time allows organizations to make informed adjustments to their strategies.
The role of custom metrics in effective impact measurement
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:
- Align measurement with strategy and community priorities.
- Ensure data collection is useful rather than burdensome.
- 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.
Moving towards a more nuanced impact measurement system
To improve impact measurement, we must embrace both deep listening and custom metrics. This shift requires:
- Integrating qualitative insights into measurement frameworks to better capture the voices of those most affected.
- 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.
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