Measuring What Matters: Standardized Versus Customizable Impact Measurement Tools

Abstract

Tharani addresses critical management decisions for implementing high-quality impact measurement that relates to choosing the right tool for the right purpose. She introduces standardized, customizable, and hybrid approaches to impact measurement, and systematically analyzes the benefits and limitations of each approach. Her analysis draws on collaborative testing of all three approaches with multinational corporations from different industries. In addition, she reflects on their suitability for meeting different impact measurement objectives, such as reporting on sustainability impacts, enabling organizational learning, improving sustainability management systems, and supporting strategic decision making within companies. Tharani offers actionable recommendations for when to use each kind of approach and what to consider when interpreting the results.