Our methodology was designed by an award-winning social impact accelerator to cut through the complexities of the space and offer founders a clear, simple approach to begin to put social impact analysis numbers on paper. Whether you have primary impact data or not, this framework allows you to begin to make some initial assumptions, understand your company’s impact mechanics, and refine your assumptions over time. These practices are well known with early stage financial modeling. We enable founders to practice impact modeling too - at the earliest stages - so they can begin to grasp their impact potential under various scenarios. It’s incredibly powerful, and more than just a static impact evaluation snapshot.
Our unique business impact analysis template is called the xModel framework, and consists of three phases: Definition, Attribution, and Valuation. First, we define a company’s core impact metrics. These are the measurable expressions of impact - a reflection of a company’s value proposition and core mission.
Then we move into Attribution. In this phase of an impact analysis, we evaluate a product’s contribution to a problem compared to a baseline. We evaluate both unit-level impact efficacy and total impact outcomes over a five year projection. Fundamentally, we relate revenue to impact, enabling the integration of impact outcomes into a company’s revenue model.
Finally, in the Valuation phase, we translate the impact into financial terms, capturing value that is often not reflected by a company’s revenue. We evaluate new value created or cost savings that result from impact creation. CO2 emissions, for example, have a known social cost. Every ton of CO2 abated, therefore, has cost savings. We integrate this external value into your business impact analysis.
These three phases allow ImpactableX analysts to build a company’s custom impact model and compute groundbreaking analytics that allow them to truly differentiate among customers and investors alike.