Performance Measurement In The Social Sector:Recent Trends In The Impact Assessment Process

Starting from the concept of social entrepreneurship, organizations operating in the social sector face several challenges due to the recent expansion stage of the phenomenon and the absence of standard approaches. Focusing on performance measurement, the review of the literature, after an in depth analysis of consolidated methods, reveals that organizations find difficulties in searching and applying the proper impact assessment tool that fit the most with undertaken initiatives. In addition to that, social value created is often difficult to measure because of its frequent intangibility. Through a mix method approach, qualitative and quantitative analysis are conducted in order to address three research questions on recent trends regarding impact assessment:which tools are organizations using in performance measurement? How do they communicate results achieved? Is there a best practice? The research starts with five in depth interviews to the representatives of foundations, consultancy companies and a no profit organization. To confirm the results of the interviews, a survey was conducted among fifteen organizations operating in the social sector with a focus on youth. Finally a case study, Midnight Basketball (a sport project for young people at risk by Laureus Foundation), is presented as a best practice example. In conclusion, results show that organizations in the social sector recognize the importance of impact assessment and communication of results. Even if they face several challenges, they are willing to find and apply more standard tools such as SROI and CBA in order to communicate generated impacts via reports and presentations.This thesis aims at analyzing performance measurement in the social sector, underlying the importance of social impacts assessment and of communication of results in order to correct the action and spread the concept of social entrepreneurship.