Theory of Change
The concept of “Theory of Change” underpins logic models; which are handy little tools to outline nonprofit programs. Theory of Change can be traced to management guru Peter Drucker (we wrote about him before!) and his articulation of Management by Objectives. In other words, as nonprofit executive directors, we are trying to always determine the higher-level goals against the lower-level objectives. The trick being, if the objectives are met, the goals will follow right behind. Theory of Change is a concept that states we can demonstrate not only what makes a program effective, but we can outline the methods that make it effective.
The Power of the Logic Model
I love logic models for two very important reasons. Before I get excited to undertake a new initiative (or any member of my team for that matter), we run it through a logic model so we have a clear understand of not only what the activity will do, but also what is required and what we expect the outcome to be. Once we work this idea through the model and our heads are still shaking that it’s a good idea, we work towards making it happen using the model.
The second reason I love logic models is that there is no better tool for large-scale program evaluation. On one page, I can document the activities, the resources needed, the outputs, the outcomes and the goals for the activity in an easy-to-understand and read format. It’s a pretty powerful tool.
What the Logic Model Tells us?
Before we begin developing a logic model, it might be helpful to look at the four main sets of basic information that the logic model has and what the model tells us.
First, the logic model tells us what is the problem we are trying to solve? We aren’t going to create a new program for creation’s sake. We need to know what is that itch we are trying to scratch. What is that nagging concern we need to address. What is worthy of resources to try to solve.
Second, the logic model explains what is the work that we are going to do? What are the resources that are necessary, and what are the activities and processes that are going to be implemented to help solve the problem?
Third, we begin to look at the end results. What re the outputs we expect to deliver? What kinds of services will be offered and how many people will be served? We also look at outcomes. What are the short-term (most immediate and measurable) outcomes we can expect from those that benefitted from the activity? What are the long-term (hard to measure and hard to control) outcomes we expect to see?
Finally, what are some of the assumptions we have about our project, our participants and how change will be realized. We really need to know our people to know if we can make this program work.
Creating your Own Logic Model
Creating a logic model can be a powerful tool for nonprofit leaders to clarify their organization's operations, illustrate how its activities relate to its mission, and enhance communication with stakeholders. Here’s a concise guide to help you develop an effective logic model for your nonprofit organization:
Step 1: Define Your Purpose
Begin by identifying the specific purpose of your logic model. Are you aiming to refine your program strategy, enhance communication with stakeholders, or secure funding? A clear purpose will guide the entire process and help keep your model focused and relevant.
Step 2: Gather Information
Collect data about your organization's resources, activities, and previous outcomes. Engage stakeholders—including staff, donors, and beneficiaries—in this process to ensure all perspectives are considered and to enhance the accuracy and comprehensiveness of the model.
Step 3: Develop Components of the Logic Model
A typical logic model includes the following key components:
Inputs: These are the resources required to run your program, such as staff, volunteers, funding, and materials.
Activities: These are actions or events that utilize the inputs to fulfill your organization's mission. Examples include educational workshops, advocacy campaigns, or outreach programs.
Outputs: Tangible products or services resulting from your activities. For instance, the number of workshops conducted or brochures distributed.
Outcomes: The short- and long-term effects of your activities on your target audience. Short-term outcomes might be changes in knowledge or attitude, while long-term outcomes could be changes in behavior or condition.
Impact: The broader or ultimate effects that reflect your organization’s mission, such as reduced poverty rates or improved environmental conditions.
Step 4: Map Out the Relationships
Illustrate the logical connections between inputs, activities, outputs, outcomes, and impact. Show how each element feeds into the next. This mapping will help you visualize how resources and activities lead to desired goals, providing a clear pathway from investments to impacts.
Step 5: Validate and Refine
Review the draft logic model with different stakeholders to validate the accuracy and feasibility of each component and connection. Seek feedback to identify any gaps or unrealistic assumptions. Refining your logic model may involve several iterations.
Step 6: Use the Logic Model
Implement your logic model as a management and communication tool:
Management: Use the model to monitor program implementation and progress towards outcomes. It can guide strategic adjustments and help align team efforts with organizational goals.
Communication: Share the logic model with stakeholders to explain how your program works and the value it creates. It can be a compelling tool for reporting to donors and engaging the community.
Step 7: Review and Update Regularly
As your nonprofit evolves and external conditions change, revisit and update your logic model. Regular reviews ensure that it remains relevant and effective in guiding your organization and communicating its value proposition.