Impact and return on investment assessment
Impact assessments assess individual programmes, investment portfolios or sector-specific focus areas. They determine the impact on and return on investment for individuals, communities, development sectors as well as investors. An impact assessment is a tool to help organisations plan better, implement more effectively and bring initiatives to scale, while facilitating organisational learning, accountability, stakeholder communications and scarce resource allocation.
Next Generation’s Investment Impact Index TM is an integrated process that (among other aspects):
- provides validation of investment decisions
- contributes to better financial, project and risk management
- provides guidance for future strategies
- identifies development practices that yield low return and impact
Return on investment assessments
Return on investment (ROI) assessments help decision-makers gauge how well a project is performing overall. It is a tool to compare efficiency against alternatives and can even aggregate ROIs across multiple projects, investment portfolios and industry sector investments.
Existing ROI methodologies include cost benefit and efficiency analysis, but both address the return of investment of an intervention on external stakeholders and not what is gained by the investor.
Next Generation developed a new methodology to also address the evidence of internal impact. Research confirms a link between social, community and sector investment and benefit for the investor, such as enhanced employee engagement, improved reputation and increased profitability as well as improved compliance.