Exploring the Intersection of Design and Impact at SOCAP23
Authored by Carol Rossi
I had the privilege of representing Allelo Design at the prestigious SOCAP conference, a global gathering of impact investors, startups, and advocates for a more equitable and sustainable economy. Allelo tasked me with exploring the nexus of design and impact within the realm of impact startups and investors. My role involved immersing myself in panel discussions, engaging in one-on-one conversations, and identifying areas for further exploration of the powerful relationship between design and impact.
My passion lies in uncovering uncharted opportunities and pioneering new territories. I've grown increasingly disillusioned with the conventional approaches of tech companies to product development, so I was intrigued by the potential for design to drive meaningful impact in this emerging field. Then when I met Allelo's CEO Nicole Dery and Research Director Adam Gamwell, we forged an immediate connection. I eagerly embraced the chance to contribute to their mission.
Like in any emerging field, there are challenges to measuring impact:
The value of measuring impact still isn’t clear to everyone. There can be a lack of discernment and curiosity among investors (and in turn, startups) about the value of measuring impact. Even at a panel discussion centered around measuring impact for women-led social initiatives in LATAM, an audience member asked “yea, but why wouldn’t I just spend all my time creating more programs.” As one panelist said: we have a value creation problem. Sadly, this mirrors what we see in some established tech companies as well: impact is only measured according to financials unless teams are incentivized to understand broader impact beyond immediate short-term revenue and engagement metrics.
Measuring impact requires too much effort / cost by startups. This is very related to the last point about the perceived value of measuring impact. Our friends in the EU are a bit ahead here, there are standards in place for all social and climate startups to measure impact. However, they still face a challenge in that measurements can become a check-the-box activity rather than being about getting meaningful data and then acting on it. As one startup CEO told me, “We’d need too much data, I’m not sure it’d be worth it.” A lack of standards coupled with weariness over data requirements for adequate measurement can be a paralyzing combination.
There’s no agreement on what the measures should be beyond financial impact. It can require a lot of effort to identify appropriate measures per organization. Further, deeply meaningful metrics are harder to measure as they can take a long time to manifest. Another challenge is that when early stage companies start to measure impact, there can be a tendency to go wild and try to track too many things. One panelist recommended starting with a maximum of four social metrics.
Some measures on the surface seem like they’d be beneficial to recipients but they can be net neutral or even harmful. There’s plenty of opportunity to educate on the real value of behavior change. For example, on the surface it seems like a good idea to buy an electric car, but that only lowers a person’s environmental impact by 2%, whereas eating a plant-based diet reduces it by 20%. When I asked one CEO leading an org that builds charter schools in urban areas how they measure impact, he said: “We’re probably resting on our laurels. I mean we’re building schools for poor kids.” Without meaningful impact measures, even a seemingly good practice may not be getting the desired results and it’s hard to know how to iterate.
Yet there are also so many opportunities:
Create meaningful measurement through the act of understanding real user experiences. Some organizations who are further ahead in thinking about measuring impact say things like they get meaningful data through the activity of doing the measurement. A panelist from an impact-measurement agency that interviews users to understand their experiences first-hand talked about “speaking to actual human beings, hearing their stories and their experiences” as an approach to identifying the value of measurement as well as the measures themselves.
Be curious and adopt a learning mindset. Taking a “what can we learn from this data” perspective rather than an “I need to report some numbers” perspective is crucial. Then commit to making material changes to the offering based on what’s learned.
Make it easy for busy entrepreneurs to measure and know what to do with measurement or impact data. Clearly, tools/processes/guidelines are needed that are integrated with existing platforms and approaches. The challenge is how to do this at low cost and with a low time commitment - at the speed and resource level of a startup. The key is triangulating all the data that’s available, and doing so in a way that makes it clear to startups how to tell a full story about the experience they’re offering.
Use language that resonates. As researchers and designers we use terms like “research,” “qual,” “quant,” “insights,” etc. In talks I heard people say “quant” a couple of times, but no one said they were doing “qualitative research,” even the org whose entire role is to have 1:1 conversations with users. We need to listen and learn how these leaders are talking about the work of measuring impact and use their language rather than imposing our own.
People who are thinking about design and its relationship to impact are thinking deeply about both the value of measurement and the relationship of design to impact. I happened to sit next to the CIO for a health tech company and when I asked how they thought about design in relationship to impact he said “I think about it a lot.” They have a product on the market that successfully tests for disease in underdeveloped countries. The test kit relies on plastic parts, and the plastic must be burned after use because it touches blood. They’re looking for an alternative plastic but “no one has a good solution.” This is what’s keeping him up at night. I met another CEO of a 7-year old data platform that integrates all data sources, making it easier for startups to see all insights in one place. I spoke to an investor who said “we’re not thinking about design and impact as much as we should - that’s the future of our field.” These are the people at the cutting edge.
What I learned about myself
Delving into this emerging frontier with so much untapped potential was invigorating. Whether by serendipity or plan, the opportunity to connect with like-minded individuals discussing a subject close to my heart was a stroke of fortune. Witnessing the collective effort to unravel complex challenges reaffirmed my unwavering commitment to prioritizing people over products. ~Carol
Image by Rafael Albornoz