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Impact Measurement - Theory of Change



Setting sustainability initiatives and impact projects is great, but understanding how your activities produce results that contribute to achieving your intended impacts is a critical first step. 


Although there are several tools for impact measurement, at Colectivo, we particularly like UN's “theory of change”. Here's why!


What is a theory of change?

A theory of change is a method that explains how a given intervention is expected to lead to specific development change, drawing on a causal analysis based on available evidence. It has become extremely popular across sustainability initiatives, given the ambiguous nature of impact-based solutions, which we can't always capture by measuring outcomes, but rather we can design our impact with the outcome we wish to achieve in mind. 


This element of impact measurement is driven by analyses, consultation with stakeholders, and learnings from the experience of partners. The practicality of this theory lies in the capacity to identify solutions and effectively address the cases of problems that hinder progress and guide decisions on which approach should be taken moving forward. It also helps identify underlying assumptions and risks that will be vital to understand and revisit throughout the process to ensure our intervention will contribute to the desired change. 


A theory of change is a building block for impact evaluations and should be used in some form in every impact evaluation. It is particularly useful when the intention is to learn from an impact evaluation conducted once which we wish to apply elsewhere. In the end, this is what we strive for with sustainability initiatives, to build, enhance, scale and dispatch solutions wherever possible. 


Why and when to use a theory of change

Development and sustainability challenges are complex, often caused by a myriad of factors, and the involvement of several layers of society. Understanding the underlying causes of these challenges and how to effectively address them will inherently maximise the impact of sustainability initiatives. Additionally, we have to praise the versatility of this theory, as this approach can be developed for any level of intervention - an event, a project, a programme, a policy, a strategy or an entire organisation. 


Regardless of the application, the theory of change can contribute towards:

  • Systematically addressing underlying and root causes of development and sustainability  challenges

  • Building frameworks for learning and making course corrections

  • Fostering consensus and motivating stakeholders

  • Setting a basis for effective and unified communication



How to Develop a Theory of change framework 

Developing a theory of change aims to bring improved clarity and quality to the process of programme design and implementation using a simple, flexible methodology. According to the UNDAF, there are four key principles to consider when developing your impact measurement theory of change. 

  • It should be developed consultative to reflect the understanding of all relevant stakeholders

  • It should be grounded in, tested with, and revised based on robust evidence at all stages

  • It should support continuous learning and improvement from programme design to closure


If you reached this stage, and you understand the foundational principles for developing a theory of change, the steps towards implementation will come along intuitively. UNDAF’s methodology recommends a four-step sequence to initiate your framework for impact measurement: 

  1. Focus on the high-level change you wish to contribute to 

  2. Identify needs for the desired development change/sustainable transition to happen

  3. Establish and make explicit the related key assumptions and risks 

  4. Identify relevant partners and stakeholders


Figure 1 represents a schematic depiction of the methodology, starting with the desired impact, and moving all the way down to implementation strategies and relevant stakeholders. 



Bridge the gap 

Translating theory into practice can be the most challenging part of measuring impact, but it is essential for achieving real change. Remember that the theory of change revolves around causal evidence that we have available at the time. Therefore, a crucial step in making this happen is to validate and quality assure everything from our partner's involvement, assumptions, risks, and the proposed solutions that came from the general framework. 


Once the branches of the issue tree are coherent, and aligned with the core challenge we are solving, we then go into each problem branch, validate and hopefully start flipping branch by branch into a solution tree.


Validating the focus, solutions, assumptions, risks and partnerships from our theory of change model is what ultimately brings it to life. As a result, you end up with a new measurement tool in your arsenal, no matter the scale of your initiatives, or the complexity, a theory of change framework can provide a systematic map to address any problem piece by piece.


Learn more about the theory of change by following the official UN channels as well as Colectivo on LinkedIn! https://www.linkedin.com/company/colectivo-impact/






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