Every day, thousands of Americans apply for new credit cards, loans, and mortgages. In the decision-making process, banks use one number to review a person’s financial history and assess their likelihood to pay off debt: a credit score. Similarly, other industries are striving to mimic this approach by using algorithm-based data to predict future outcomes in various settings. Enter Mission Measurement, the social impact consulting firm attempting to change the way corporations, government agencies, foundations, and non-profits invest in philanthropic causes by using data to forecast social impact program outcomes.
Mission Measurement CEO Jason Saul and the architect of Pandora’s Music Genome Project, Nolan Gasser, have designed the Impact Genome Project, which seeks to assess philanthropic program outcomes based on the composition of a program’s design. The project was inspired by the work of Pandora and by the NIH’s Human Genome Project, the NIH project that mapped human genes to thoroughly understand the functionality of human genes and predict health outcomes.
The primary focus of the initiative is to analyze a set of factors about a social impact program. The factors correlate to understanding a program’s operation and its outcome potential. Using the information Mission Measurement collected from program evaluations, Saul developed a database consisting of 77,000 different data points. Mission Measurement began classifying the information and identified through their analysis that approximately 130 social outcome types exist. Subsequently, this data will be used to gauge programs; specifically, the likelihood a program will achieve a particular outcome, the average expected cost for a program to produce a single “unit” of impact, and the total number of people served by a program that are projected to achieve a particular outcome.
For example, in an analysis of STEM (Science, Technology, Engineering and Mathematics) grants, companies gained insight into how efficiently their investments impacted participants. With a focus on gauging programs by the likelihood they will achieve a particular outcome rather than via heterogeneous throughput metrics, Mission Measurement is able to create a standard for articulating and benchmarking program efficacy. By applying their propriety methodology, Mission Measurement helped firms make better investment decisions to maximize return on investment.
Similarly, other industries are now using algorithms to identify outcomes and forecast behavior. Take for instance the exploding trend of wearing devices to measure biometrics, such as fitness activity, sleep patterns, and calorie intake. With the ability to monitor these types of metrics, physicians and health insurance companies will have the ability to predict health outcomes and behaviors.
Mission Measurement is pioneering the movement for change with the Impact Genome Project. Other organizations such as Charity Navigator are making strides with their efforts to evaluate philanthropic programs; however, Mission Measurement’s methodology is unique in how they use predictive analytics to measure success. Ultimately, recognizing these valuable pieces of data will arm companies and nonprofits with smart, innovative tools to invest their money.
Roshni Chengappa currently works as a consultant in the healthcare industry and is an aspiring social entrepreneur with a passion for improving global health.
