The Base of the Pyramid Impact Assessment Framework, as featured in the Harvard Business Review has been developed specifically to help address some of the shortcomings in the field. The framework is well recognized as a particularly useful tool by leaders in the development and corporate communities. It provides managers with a robust and systematic approach to understanding venture influence on the well-being of local buyers, sellers, and communities. The framework accounts for a variety of possible positive and negative poverty alleviation impacts of a venture by assessing three areas of well-being: economic, capability and relationship.
Using the framework, venture managers can conduct both (1) a strategic analysis to gain a deep understanding of their holistic set of impacts, and (2) a performance analysis to identify, track, and improve key indicators over time. While these findings can be shared with external stakeholders, a main objective of the framework is to guide managers in their efforts to improve performance. By implementing an approach for assessing and enhancing their poverty alleviations, BoP ventures can help maximize mutual value creation and develop more sustainable and scalable business models by enhancing positive impacts and mitigating negative impacts. The BoP Impact Assessment Framework is an iterative process (see Figure below) in which the findings of both the strategic analysis and performance analysis are meant to inform future business plans in innovation as well as inform future evaluation measures.
The BoP impact assessment framework is easily adaptable and is meant to be tailored to meet your needs based on the level of resources you have available and the types of questions you aim to answer. For more details on how to collect data after you’ve completed a strategic analysis by filling in the framework, see our video:
The WDI team has extensive experience providing training and on-the-ground support for understanding and implementing this methodology. The team has implemented and refined the framework with partners in the corporate, nonprofit, and development sectors in Africa, Asia and Latin America. We work one on one with ventures to assess their impact, click here to see past field based projects and click here to learn more about our impact assessment workshop. For more information on our impact assessment work or if you are interested in working with our team to measure your venture’s impact please contact Heather Esper at email@example.com
Click here to read more about the value for different stakeholders to conduct an impact assessment using the BoP impact assessment framework.