In today’s rapidly evolving world, the significance of social impact in construction projects cannot be overstated.
The construction industry is one of the major driving forces behind economic growth and development, with a direct influence on the well-being of communities and the environment.
Social impact encompasses a wide array of factors, such as job creation, community engagement, cultural preservation, and environmental sustainability.
As such, measuring social impact has become a crucial component of construction projects, allowing stakeholders to assess the long-term effects on society and make informed decisions that foster positive change.
But before we dive into how to measure social impact, we must ask:
What is social impact?
Social impact is the effect of an activity, project, program, or policy on society and the environment. It can be measured in terms of its positive and negative effects on people, communities, businesses, and ecosystems.
Measuring social impact can help organisations identify how their activities are making a difference. It’s also essential for demonstrating to stakeholders how an organisation is achieving its mission or objectives.
By adopting a holistic approach, industry professionals can ensure that projects contribute to the overall betterment of the communities they serve, while simultaneously addressing concerns related to socio-economic disparities and resource scarcity.
It’s common for social delivery to be placed in the same conversation as social value, and it’s easy to understand why. After all, they both focus on how a project can affect and improve a wider community.
However, the key difference between social impact and social value is that where social value focuses on the short-term benefits a project can provide to a business and its community, social impact takes a wider look at the long-term effects a project can have.
What is social impact measurement?
Social impact measurement is a systematic and comprehensive approach to assessing and quantifying the long-term effects and consequences of an organisation’s activities, projects, programs, or policies on society and the environment.
This process involves the identification, collection, analysis, and interpretation of qualitative and quantitative data to establish the extent to which an organisation is contributing to the well-being and sustainability of its targeted communities and ecosystems.
A robust social impact measurement framework may encompass various tools, methodologies, and indicators, such as Social Return on Investment (SROI), impact assessment models, stakeholder engagement techniques, and sustainable development goals.
This rigorous evaluation enables organisations to:
- Make data-driven decisions
- Optimise resource allocation
- Enhance accountability and transparency
- Demonstrate the value they create for their stakeholders, ranging from investors to policymakers and beneficiaries
By measuring social impact, organisations can also foster innovation, stakeholder trust, and long-term resilience in an increasingly complex and interconnected world.
How to measure the social impact of a project
Measuring social outcomes is a crucial step in understanding the success of an organisation’s activities and their impact on society. Here are nine ways to measure social impact:
1) Decide on a structure to use
Before you do anything, you must first decide on which framework you will use to create social impact with your project. This framework acts as a structure to measure the effectiveness of your performance.
Some of the most common structures used are:
- Sustainable Development Goals: Developed by the United Nations, this is a set of 17 goals developed by the United Nations to provide direction for global development.
- Impact Assessment Model: This model developed by B Lab focuses on the direct and indirect effects that your project has in its targeted communities. It can help you identify, analyse, and interpret how change happens as a result of your activities.
- Social Return on Investment: This methodology assesses the economic, social, and environmental benefits of a project to determine its overall value. IT was developed by REDF.
2) Identify Goals
The next step to measuring social impact is identifying goals that align with your organisation’s values and mission. This can be done through consultations with stakeholders, interviews with potential beneficiaries, or by reviewing existing research.
During this step, you will also identify the metrics you will use to measure the success of your program, and what the expected output and outcomes will be.
For example, in a construction project, the goal could be to reduce energy consumption in low-income neighbourhoods. The metrics might include an increase in energy efficiency and a decrease in monthly electricity bills.
3) Develop Indicators
Developing social impact indicators is a vital component in measuring the social impact of a project, as it provides a quantifiable means to track progress and assess outcomes.
These indicators, often derived from the project’s goals, serve as tangible representations of the desired social change. They enable organisations to monitor the effectiveness of their interventions and evaluate their success in achieving the intended social benefits.
These indicators allow stakeholders to make data-driven decisions, refine strategies, and ultimately maximise the positive impact on targeted communities and the environment.
Examples of social impact indicators may include the number of jobs created, improvement in educational outcomes, or a reduction in greenhouse gas emissions.
4) Collect Data and track participation rates
The next step in measuring the social impact of a project is collecting data that acts as a comprehensive understanding of the project’s actual social impact.
Collecting this data and gaining an understanding of how many participants were involved in this process allows organisations to gain insights into the project’s efficacy, inclusivity, and overall contribution to social change. From here, they can make more informed decisions and maximise their positive contributions to society and the environment.
Examples of social impact data collected during a construction project may include the number of affordable housing units built, local employment opportunities generated, and the percentage of materials sourced sustainably.
Additionally, data on the community’s engagement, such as public consultations and feedback sessions, and the project’s contribution to local infrastructure improvements, like access to public transport.
5) Calculate return on investment (ROI)
Calculating the return on investment (ROI) is a crucial component in measuring the social impact of a project, as it provides an insightful, quantitative analysis of the efficiency and value of the resources invested.
However, when it comes to social impact, it is people that are at the core of the analysis. This is why, when calculating ROI for social impact, it is important to collect qualitative data if you truly want to understand how the project has affected the community.
This could include qualitative data on the lives of beneficiaries, the opinions of locals on the project, or the perception of the organisation in its target areas. This storytelling data will then act as a baseline to measure the impact and provide a more holistic view of ROI.
By comparing the monetary and non-monetary benefits generated by a project to its costs, the ROI calculation offers a tangible representation of the effectiveness of interventions and their overall contribution to long-term societal benefits.
6) Report Results and Make Recommendations
Reporting results and making recommendations is a critical aspect of measuring the social impact of a project, as it centralises the findings, highlights key insights, and proposes strategic guidance for future actions.
A comprehensive report containing both quantitative and qualitative data can demonstrate the magnitude, diversity, and depth of the project’s influence on society.
Singular claims of making a difference are no longer being seen as sufficient enough evidence of creating an impact. Instead, compiling a wealth of positive qualitative data highlights that your project has actually made an impact to the community.
By suggesting recommendations based on these results, organisations can further optimise their strategies and create a greater impact on their projects by targeting areas or targets that were not met.
7) Monitor Progress over Time
Following on from our last point, evidence-based recommendations enable organisations to refine their strategies, improve their interventions, and maximise their long-term positive influence on the targeted communities and the environment.
By consistently evaluating the progress against established benchmarks and indicators, organisations can identify trends, measure the effectiveness of their interventions, and analyse the long-term consequences of their actions.
This continuous assessment not only ensures that resources are efficiently allocated, but also enhances stakeholder communication and promotes transparency, thereby fostering trust and credibility.
Furthermore, tracking progress over time facilitates the identification of best practices, the mitigation of potential risks, and the maximisation of positive social outcomes for the targeted communities and the environment.
8) Look for Opportunities to Improve Impact
Actively seeking opportunities to enhance social impact is another important part of ensuring the continuous growth and effectiveness of a project’s goals.
By consistently analysing the data collected and incorporating feedback from stakeholders, you can identify potential gaps or shortcomings and make necessary adjustments to current and future projects.
Moreover, by engaging diverse perspectives, organisations can cultivate a more inclusive environment, which ultimately leads to better decision-making and more equitable outcomes.
Embracing this proactive approach to improving social impact not only amplifies the overall social impact but also strengthens an organisation’s reputation and stakeholder relationships, leading to an enduring commitment to social responsibility and long-lasting positive change in the targeted communities and the environment.
9) Share Findings and Learnings with the Community.
Lastly, sharing findings and learnings with the community is a vital aspect of improving social impact during a construction project, as it fosters a transparent and collaborative environment that values stakeholder input and empowers local communities.
By actively engaging with the community and disseminating project information, you can gain invaluable insights into local concerns, expectations, and potential opportunities for positive social transformation.
For instance, sharing data on a construction project’s sustainability efforts can encourage local suppliers to adopt greener practices, leading to a reduced environmental footprint.
Furthermore, involving the community in decision-making processes can foster a sense of ownership and pride, ultimately resulting in enhanced social cohesion and a more resilient local infrastructure.
Organisations can learn from the community’s experiences, cultural knowledge, and historical context, enabling them to better tailor their interventions to the specific needs, challenges, and priorities of the target area.
By embracing a culture of openness, dialogue, and shared learnings, construction projects can actively contribute to the creation of more inclusive, equitable, and sustainable communities, thereby amplifying their overall social impact.
Best social impact measurement tools for a construction project
Now you know all about social impact, it’s time to look at the best available tools you can use to monitor your progress.
We may be biased, but if you’re looking to track the social value delivery of your project, there is no better platform than Compliance Chain.
With a buyer membership to the Compliance Chain platform, you can set and lock your social value goals and track delivery against national measures.
From here, you can keep track of your project’s progress and discover ways in which you can amplify your social value delivery to achieve social impact.
Better yet, with the Compliance Chain platform, buyers within the construction industry can gain access to a wealth of tools to aid project management, supply chain management and much more.
Contact us or sign up with Compliance Chain today to learn more.
Beth supports users to optimise solutions, ensuring the success of clients’ projects. She actively listens to industry feedback, contributing to the ongoing development of software solutions.
