Monitoring & Evaluation as Instruments in Achieving the Goals of the Social Enterprise

by Mariel Josh Tiongson and Lemuel Sugui

The Philippines’ business sector is composed of 90 percent micro, small, and medium enterprises (MSMEs). Among these MSMEs, there are around 164,000 social enterprises (SEs) based on the 2016 study of the British Council, and this number is continuously growing. What makes an SE a unique type of business is its desire to create positive change. In a more technical sense, their business and impact goals are one and the same. However, SEs most often prioritize establishing their operations and government compliance as a legally operating entity to the extent that capital and labor resources are barely allocated for monitoring and evaluation (M&E). But this should not be the case. M&E plays a huge role in ensuring that SEs reach both their business and social impact goals. 

Like projects and programs, SEs also follow a project cycle or process comprising of three major components namely: planning, monitoring, and evaluation. Planning is the phase wherein social entrepreneurs determine their goals and their milestones. It is composed of internal and external activities to be conducted at a certain period and, when completely conducted, will create their desired impact.  Monitoring is the periodic process of gathering feedback towards the goals and objectives of the SE. Evaluation, lastly, is an external assessment on the activity that leads to decision points and ways to move forward. It is in these recurring phases, most especially in M&E, where SEs determine which among the Sustainable Development Goals (SDGs) they align with, what activities would utilize their resources efficiently to achieve their target profit and impact, and what activities would help them measure their impact.  

Rewards of being evidence-based 

In implementing projects and programs, implementers typically follow an M&E system or a set of rules and principles that will guide their M&E activities. For SEs, using an M&E system can also help them achieve their business and impact goals as it fosters a culture of being evidence-based. According to the book published by the Philippine Institute for Development Studies (PIDS) titled Unintended Consequences: The Folly of Uncritical Thinking, the lack of evidence-based critical thinking contributes significantly to the adoption or advocacy of policies and programs that have unintended adverse consequences to the society. Much like projects and programs, SEs that do not have a system in monitoring and evaluating their progress can lead to poor definition of interventions or product/service, low stakeholder/customer engagement, and poor results/impact communication. 

“The gains of a community or beneficiary is the greatest achievement of a social enterprise, and telling their story is the best way to highlight this especially when told through their voices.”

Internally, having an evidence-based culture embedded in an SE leads to more informed decisions eventually increasing the business’ chances of achieving planned results. Because of data gathered directly from their stakeholders, the social entrepreneurs behind the business can decide confidently, apply lessons learned, and achieve both its short-term and long-term goals. 

M&E also provides external benefits to SEs, particularly on allowing the business to communicate their impact or results to their partners, stakeholders, and beneficiaries. Communicating results from the M&E perspective is not focusing on the “mine” aspect of accomplishing targets but about “their” story. And, when we say “their”, we talk about the communities that SEs serve. The gains attained by a community or beneficiary is the greatest achievement of a social enterprise, and telling their story is the best way to highlight this especially when told through their voices. For the SE, successfully telling stories of impact can lead to increased stakeholder engagement, partnerships, and opportunities to support more communities/beneficiaries.  

An example of an SE that is reaping the rewards of having a culture of being evidence-based is Coffee for Peace (CFP). CFP saw the quality of the coffee beans grown in Mount Apo in Southern Mindanao and believed in its potential to be commercially-viable both locally and internationally. They did not just buy the community’s produce, but also they empowered them by supplying trainings and facilities for them to use. Upon meeting the locals, they discovered that more than focusing on the production, they needed to change the farmers’ mindsets—enabling the community to stand on its own. It was also through feedback that they learned the perspective of the farmers when it comes to producing coffee—that it was considered as a low value crop. CFP began to instill the product’s market potential, and became an instrument to connect the community to different markets and suppliers. Looking back, if CFP only focused on trainings and did not get feedback, they would not see the ripple effect of their initiative at a larger scale. 

Results-based management: a collaborative effort 

ISIP revisits social enterprises that underwent the Social Impact Accelerator to determine significant changes that the project was able to make on them and their beneficiaries. [ISIP File Photo]

There are various frameworks in M&E that can guide SEs, but one of the common ones is the Result-based Management (RBM)  System. It aims to improve performance and achieve specific, measurable, achievable, relevant and time-bounded (SMART) results. It has three principles: depth of ownership, engagement of stakeholders, and focus on results. In the Innovation for Social Impact Partnership (ISIP) project, we monitor and evaluate our activities using the principles of this system. [READ: ISIP Strengthens Commitment to the SDGs on Year 2, Improves Support to the Philippine Social Enterprise Ecosystem]

The ISIP project was able to grasp the ground-level situation of the SEs, public and private sector partners because of our M&E activities. Aside from ensuring that target results are attained, the ISIP project embraces a culture that all project stakeholders appreciate the value of M&E and know the RBM system. This culture of transparency in monitoring activities and shared responsibility in accomplishing the commitments of the project increases the accountability and credibility of every member of the team.  

Aside from that, our focus on results helps us ensure that both micro and macro information are included when we report our accomplishments. Micro information are those targets indicated in a results framework, while macro information are the stories behind the targets, emphasizing on data gathered directly from stakeholders. This practice enables us to understand the pressing needs of our stakeholders. Concurrently, it provides a perspective to also understand the dynamics of the sectors that the SE is working with, allowing us to develop a policy agenda that would not only help our direct beneficiaries but the whole SE ecosystem as well.  

 
Revolves around one cause 

ISIP conducts interviews with beneficiaries of the social enterprises as part of the project’s M&E activities. [ISIP File Photo]

“...the story we tell is and should not be about us. It’s about the story of our community partners/beneficiaries. ”

Planning, monitoring, and evaluation are interrelated phases that guide SEs in achieving their business and impact goals. However, as much as social entrepreneurs exert effort in planning activities and achieving targets, they must also be mindful that it is always about the lives they intend to change. And change can only materialize if there is evidence that their products and services address the needs of their community partners/beneficiaries.  

To successfully execute M&E, social entrepreneurs must be able to understand and put forward the best interest of their community partners/beneficiaries without sacrificing the essence of their business. As an enterprise that do not only intend to make profit but also create lasting impact, M&E makes a critical aspect in the way they do business.  

Monitoring and evaluation can be considered as both a science and an art. The science is the mastery of the “basics” of M&E which includes theory, systems, and rules, while the art is the ability to follow the system and the application of appropriate tools with the goal of bringing about the desired results or impact. For SEs, much like any other development projects or programs, the story we tell is and should not be about us. It’s about the story of our community partners/beneficiaries.