A New Breakthrough in Tracking Social Entrepreneurs

I’ve always valued metrics but remain wary of the extent to which numbers can be used to reveal the whole picture. Hearing about the new Portfolio Data Management System (PDMS) – an online database tracking social entrepreneurs – is proof that there is progress in the effort to measure social impact. A variety of organizations came together for this massive effort: Acumen Fund, Salesforce.com Foundation, Skoll Foundation, Lodestar Foundation, along with programmers from Google. How does the PDMS work? BusinessWeek explains:

A common set of metrics will be recorded for each organization so donors and investors can check regularly and track their progress or spot trouble. Social entrepreneurs will be able to benchmark their results against those for similar organizations around the world.

The system will allow foundations and other donors see what the return on their investment is, and compare it against other similar organizations to see if real progress is occurring. I can imagine that not only will the information be useful to investors, though, but also to other stakeholders – partner organizations, beneficiaries, almost anyone involved the same field who wants to stay informed of the value of programs and money.

Since social enterprises are relatively new entities, standards and benchmarks are not common or shared. A specific metric that one enterprise decides to use may differ with the next. The PDMS offers a solution to the current haphazard situation… Continue reading