Collective Impact Framework

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Collective Impact Framework

🔥 Creating shared value, both financially and socially, has recently become an imperative for corporations, for two reasons:

• The legitimacy of business has often been put into question, with companies seen as developing and prospering at the expense of community.
• At the same time, many of the world’s problems are impossible to be addressed without the expertise and scalable business models of the private sector. Examples around the world have demonstrated that for-profit organizations are able to pursue financial success in a way that also yields societal benefits.

However, businesses inevitably confront many challenges when pursuing shared value strategies as they don’t operate in isolation. Societal conditions, government policies, cultural norms are among a range of conditions that may impact the businesses efforts while being out of the control of any company. In other words, governments, NGOs, companies, and communities all have essential roles to play in the ecosystem of shared value.

Kania & Kramer (2011) introduced a Collective Impact framework that facilitates successful collaborations in the social sector allowing companies to not only advance social progress, but also find economic opportunities that others miss. The framework is based on the idea that social problems exist because of a complex combination of actions and role players from all sectors, therefore they can only be solved by the coordinated efforts of these players.

THE FIVE ELEMENTS OF COLLECTIVE IMPACT

1. A COMMON AGENDA. Before employing a collective impact approach, each players has typically treated the problem solely from its own perspective. This framework fosters a shared understanding and requires a shared vision for change and joint approach to solutions. The agenda must take each stakeholder’s perspective and interests into consideration.


2. A SHARED MEASUREMENT SYSTEM. A short list of indicators on performance measurement should be agreed by all parties. This can help formalise the common agenda, establish a basis of common understanding on what works and what doesn’t work as each participant takes action, and set the stage for ongoing course corrections.


3. MUTUALLY REINFORCING ACTIVITIES. Each participant plays a different role in collective impact efforts, so the engagements for each are different. As a part of the effects, each participant should focus on what it can do best that mutually reinforces the effects.


4. CONSTANT COMMUNICATION. All stakeholders should engage in frequent and structured communication to build trust, review progress, and solve problems with a joint effort. In addition, effective group communication can foster legitimacy, momentum, and learning.


5. DEDICATED COORDINATOR. A separate, independently funded staff to support and coordinate the project is needed to guide the strategy, provide support, review progress, coordinate resources allocation, and keep various working groups aligned and informed.

Companies that use a collective impact frame to achieve their shared value are able to address the question of legitimacy of their business, create competitive advantages while implementing social progress with other involved parties, and improve their financial prospects by justifying the company’s investments.

Sources:
Kania, J. & Kramer, M. (2011). Collective Impact. Stanford Social Innovation Review.
Kramer, M. & Pfitzer, M. (2016). The Ecosystem of Shared Value. Harvard Business Review, 94 (October), 81-89.

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		0 Daniel Adanri Student (Other), United Kingdom
	Collective Impact: Stakeholder Collaboration and Synergy Porter's Shared Value concept emphasizes the interdependence between business success and societal well-being. "Collective Impact" takes this idea a step further, focusing on the transformative power of collaboration and synergy among diverse stakeholders to tackle complex challenges and create lasting positive change. Core tenets of collective impact 1. Common Agenda: All stakeholders involved share a clearly defined and measurable goal that addresses a specific social or environmental issue. 2. Shared Measurement Systems: Agreement on the ways success will be measured and reported. 3. Mutually Reinforcing Activities: Each stakeholder contributes unique skills, resources, and perspectives, creating a synergistic effect that amplifies the impact. 4. Continuous Communication and Learning: Open communication, data sharing, and ongoing evaluation ensure adaptation and improvement throughout the process. 5. Backbone Support Organization: A dedicated staff separate from the participating organizations who can plan, manage, and support the initiative. Benefits of collective impact 1. Holistic Solutions: By addressing the root causes of problems, collective impact initiatives create sustainable and systemic change. 2. Increased Efficiency and Effectiveness: Collaboration leverages diverse expertise and resources, maximizing impact while minimizing duplication of efforts. 3. Enhanced Legitimacy and Trust: Stakeholder involvement fosters buy-in and ownership, leading to greater public trust and support. Examples of collective impact in action 1. Strive Together: This initiative in Cincinnati, Ohio, unites businesses, non-profits, and government agencies to improve the lives of children in poverty. 2. 100 Resilient Cities: This Rockefeller Foundation program supports cities around the world in developing resilience to social, economic, and physical shocks. 3. The End Malaria Movement: This global partnership has significantly reduced malaria deaths through coordinated efforts across sectors. Sources for further exploration: John Kania and Mark Kramer (2011)), "Collective Impact" (Stanford Social Innovation Review). Mark Cabaj and Liz Weaver (2016), "Collective Impact 3.0" (Tamarack Institute)