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
Free Three-Part 2014 Webinar Series
Assessing Multidimensional Poverty Impacts: Techniques that are Easy-to-Implement and Customizable
This series is targeted to development practitioners, managers of social enterprises, impact investors, CSR managers, and evaluation officers. Over three free webinar sessions, we along with guest speakers, will introduce the concept of measuring multiple dimensions of poverty alleviation through qualitative and quantitative methodologies. The first webinar will explain the importance of not only measuring the economic impact of a venture, but also changes in capabilities (i.e. knowledge, health, aspirations, self-esteem, empowerment, etc) and relationships well-being (status, social support, social networks, violence, local environment, etc) of local stakeholders including buyers, sellers, and communities. In the second and third webinars, the finer, nuanced details of qualitative and quantitative methodologies to capture these multidimensional impacts will be discussed using our real-world project examples. These techniques can be used across many business sectors and geographies. Best practices and challenges will be shared and each webinar will leave adequate time for attendee questions and answers.
For details on the series and on individual webinar sessions, please click here.
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Click here to read more about the value for different stakeholders to conduct an impact assessment using the BoP impact assessment framework.