Outcome investing (OI) - Bill & Melinda Gates Foundation

Report
OUTCOME INVESTING (OI)
Results-based approach to designing and managing investments
Strategy, Measurement & Evaluation
© Bill & Melinda Gates Foundation
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INTRODUCTION
 The foundation has streamlined
the process and approach we
use for making and managing
investments, both grants and
contracts.
 The goal is to reduce non-value
added time in processing
investments and provide more
time to think, innovate and build
strong relationships with our
partners, ultimately helping us
to achieve better results for the
people we serve.
INVESTMENT WORKFLOW AND OUTCOME INVESTING
Investment Workflow is the process we use at the foundation to make and manage investments, aiming to strengthen
partnerships, set clear expectations, reduce opportunity costs and focus on outcomes.
Outcome Investing is the approach we use within the Investment Workflow to enable a focus on measurable results.
Outcome Investing has three defining characteristics that build over the four phases of the Investment Workflow.
Investment Workflow
PHASE 1
PHASE 2
PHASE 3
PHASE 4
CONCEPT DEVELOPMENT
PRE-PROPOSAL
INVESTMENT DEVELOPMENT
MANAGEMENT & CLOSE
• Develop Proposal
Package
• Determine Funding
Decision
• Develop Agreement
• Manage Investment
• Measure Progress
• Generate Ideas
Outcome Investing
• Develop
Concept
• Identify Partners
Outcomes at the Outset
Logical Design
Upfront collaboration between the Program
Officer and prospective grantee to articulate
and align on the few, most important and
measurable results.
Co-development of a larger
set of logically-connected
results (and associated
measures) that are on the
pathway toward achieving
the investment outcomes.
Managing toward
Results
Track progress towards
achieving the investment
results (not activities),
and manage toward
those results.
© 2014 Bill & Melinda Gates Foundation
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IMPLEMENTATION OF OUTCOME INVESTING
 The Investment Workflow process includes key Outcome Investing tools that help to
enable a focus on results and measurement.
•
Results Framework – captures the logical relationship between the expected
investment results (outcomes and outputs), and the strategic goals to which those
results contribute
•
Results Tracker – supports planning for how results will be measured and tracked over
the course of the investment timeframe
•
Measurement and Evaluation Planning Module – enables planning for measurement
of the expected results and for anticipated evaluations, including any needed resources
or support
© Bill & Melinda Gates Foundation
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OI practice – it’s
about more than just
the tools
Outcome Investing can help us drive towards clear, explicit and agreed
upon outcomes, freeing up staff and grantees to do what they do best –
collaborate to produce catalytic change. Specifically, OI enables:
 Clear expectations around what success looks
like for the investment
 Greater flexibility for partners to innovate on how
they will achieve outcomes
 Investments designed toward measureable
outcomes
 More effective measurement for the foundation
and our partners
Clear
Expectations
Greater
Flexibility
Measurable Outcomes and
Effective Measurement
OI ENABLES…CLEAR EXPECTATIONS
•
•
The Outcome Investing approach is a partnership
between the funder and grantee that starts by
taking the time upfront to identify what success
looks like.
Although it can take time to do well, translating
success into specific, measurable outcomes
enables both sides to understand the
expectations associated with an agreement
(whether it’s a grant, contract or program-related
investment).
Clear
Expectations
Greater
Flexibility
Measurable Outcomes and Effective
Measurement
OI ENABLES…GREATER FLEXIBILITY
•
We’re optimistic that moving away from a focus
on activities can give partners the flexibility to
innovate and problem solve, and enable a
foundation approach that is more consistently
about identifying catalytic solutions.
Clear
Expectations
Greater
Flexibility
Measurable Outcomes and Effective
Measurement
OI ENABLES…EFFECTIVE MEASUREMENT
•
•
Taking the time to specify and align around
investment outcomes and the few, essential
outputs required to produce them has positive
consequences for measurement because the
more specific the result, the easier it is to
measure and check its alignment to strategy.
Managing and monitoring progress with essential
results data rather than ticking off process or
activity-based milestones also provides grantees
with more time to focus on achieving impact.
Clear
Expectations
Greater
Flexibility
Measurable Outcomes and
Effective Measurement
HOW TO CRAFT A QUALITY OUTCOME
•
•
An early critical step to practicing Outcome Investing is to align with our partners on the few,
measurable outcomes that define what success looks like.
When we talk about outcomes, we mean the key changes we expect to see within the timeframe and
context of the investment. Outcomes are the ‘so-what’ of our work.
Verb Indicating
Change
What Changes
Examples:
• Increased
• Decreased
• Improved
• Reduced
• Adopted
• Established
• Used
• Integrated
Examples:
• Coverage
• Behavior
• Knowledge
• Technologies
• Models
• Data
• Systems
• Policies
Who Changes
Additional
Specificity
(when relevant/feasible)
Examples:
• Individuals
• Communities
• Populations
• Governments
Examples:
• Where you expect to
see this change?
(include geography)
• By when you expect to
see the change?
(include date)
• How much change you
intend to see? (include
target)
© Bill & Melinda Gates Foundation
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EXAMPLE INVESTMENT OUTCOMES
Verb Indicating
Change
What Changes
Who Changes
Additional
Specificity
o
Improved early care-seeking practices for pneumonia and diarrhea among
caretakers of children under 5 years old from two regions in Nigeria by year 3 of
the project.
o
Adoption of national sanitation and hygiene policies and strategies (including
non-sewer basic sanitation) in four countries classified as fragile by 2015.
o
Increased use of self-paced math programs among 25 school districts in
California by 2018
© Bill & Melinda Gates Foundation
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TERMS & DEFINITIONS
Investment Results
BMGF
Strategic
Goals
The 3-5 year results
of a BMGF initiative,
sub-initiative or
portfolio to which the
investment
contributes most
directly
Primary
Outcomes
The overall
change(s) in
technologies,
systems,
populations or
behaviors the
investment seeks
to achieve within
the investment
timeframe
Intermediate
Outcomes
Output
Activities
The changes in
technologies,
systems,
populations or
behaviors that
need to be
achieved to realize
the primary
outcome(s)
The goods,
services, events or
deliverables
produced during an
investment
The actions taken or
work performed to
produce goods,
services, events or
deliverables
© Bill & Melinda Gates Foundation
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EXAMPLE RESULTS CHAIN
Investment Results
BMGF
Strategic
Goals
Improved market
enablers that allow
smallholder farmers
to interact more
efficiently with
markets
Primary
Outcomes
Increased sales of
produce by
smallholder
farmers in the
major production
zones of West
Africa by year 5
Intermediate
Outcomes
Increased sales of
hermetic produce
storage bags by
merchants in the
major production
zones of West
Africa by year 4
Output
At least 400
village-level
demonstrations of
hermetic produce
storage bags held
in the major
production zones
of West Africa by
year 3
Activities
Train bush
technicians to
effectively hold
village-level
demonstrations of
hermetic produce
storage bags
© Bill & Melinda Gates Foundation
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CHARACTERISTICS OF QUALITY RESULTS
Aligned with
strategic
goals
Achievable
within the
investment
context
A set of
investment
results
should be …
Measureable
Distinct
from
activities
Logically
connected
to each
other
© Bill & Melinda Gates Foundation
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QUALITY RESULTS ARE…ALIGNED WITH STRATEGIC GOALS
The results will help contribute to
the achievement of the
foundation’s strategic goals
Aligned
with
strategic
goals
Achievable
within the
investment
context
A set of
investment
results
should be …
Measureable
Distinct from
activities
Logically
connected
to each
other
© Bill & Melinda Gates Foundation
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QUALITY RESULTS ARE…DISTINCT FROM ACTIVITIES
Aligned with
strategic
goals
Achievable
within the
investment
context
A set of
investment
results
should be …
Measureable
Distinct
from
activities
The results tell us what is
either produced or achieved
by the investment, NOT what
the investment will do
Logically
connected
to each
other
© Bill & Melinda Gates Foundation
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QUALITY RESULTS ARE…LOGICALLY CONNECTED
Aligned with
strategic
goals
Achievable
within the
investment
context
A set of
investment
results
should be …
Measureable
Distinct from
activities
Logically
connected
to each
other
The results have a causal, or
if/then, relationship between
one another
© Bill & Melinda Gates Foundation
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QUALITY RESULTS ARE…MEASURABLE
Aligned with
strategic
goals
Achievable
within the
investment
context
The results are clear,
specific, and measurable
A set of
investment
results
should be …
Measureable
Distinct from
activities
Logically
connected
to each
other
© Bill & Melinda Gates Foundation
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QUALITY RESULTS ARE…ACHIEVABLE
Aligned with
strategic
goals
The results can feasibly be
achieved within the timeframe
and the resources available
Achievable
within the
investment
context
A set of
investment
results
should be …
Measureable
Distinct from
activities
Logically
connected
to each
other
© Bill & Melinda Gates Foundation
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THANK YOU

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