The Nonprofit Incubator

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In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the "strategic plan." While strategic planning may be used to effectively plot a company's longer-term direction, one cannot use it to reliably forecast how the market will evolve and what issues will surface in the immediate future. Therefore, strategic innovation and tinkering with the 'strategic plan' have to be a cornerstone strategy for an organization to survive the turbulent business climate. Evidence-Based Programming The Importance of Evidence Based Social Interventions Non-governmental and governmental organizations worldwide implement programs to combat social problems, including poverty and lack of adequate health care. However, the programs are often designed and executed based on assumptions rather than based on data and facts. In her TED talk entitled “Social Experiments to Fight Poverty,” MIT economist Esther Duflo compares the implementation of social programs that are not evidence based to the use of leeches by doctors in the medieval period. Doctors used leeches due to prevailing assumptions about the body and illness during that period. Sometimes the leeches worked, but they were oftentimes ineffective. In some cases, the leeches caused blood loss that exacerbated the patient’s condition. Centuries later, evidence-based medicine and rigorous analysis became central to medical practice. Until recently, social policies and interventions have been developed and implemented based on assumptions rather than evidence. Evidence-based [Social Interventions] are [now] essential. The nonprofit organization Innovations For Poverty Action further explains that “Two voids exist in developmental policy: insufficient incorporation of results from social science research, and insufficient evaluation (in particular, replication of studies) to learn concretely what works, what does not, and why.” Some organizations and research centers have recently begun conducting evaluations of various interventions to determine their efficacy in practice rather than in theory. Their overall goal is to positively influence the design and implementation of policies and programs by international organizations, non-governmental organizations, and governments. Page 38 of 89
Design of Evaluations and Sample Interventions When developing new interventions or programs, it is important for program implementers to utilize existing research to determine “how people make financial decisions, adopt new technology, use social networks to help survive crises, respond to incentives, decide how much education to acquire, etc.” This application of academic theory is needed to develop sample interventions. Evans et al. note that “Better understanding of the barriers (at the person, family and provider level) is essential before strategies can be devised, and these strategies need to be evaluated carefully. Only then can we know if we are doing more good than harm and spending limited resources wisely.” Abdul Latif Jameel Poverty Action Lab in Boston integrates social and behavioral sciences and public health research, which were previously primarily confined to academia, into policy design. This type of important research allows program designers and implementers to determine the expected efficiency, effectiveness, and potential impact of a new program idea prior to implementation. After a program has been implemented, it is crucial to implement ongoing assessments and evaluations. Randomized evaluations, which are used extensively by the Abdul Latif Jameel Poverty Action Lab (J-PAL), are a type of impact evaluation. A randomized evaluation may also be known as randomized controlled trials, social experiments, random assignment studies, randomized field trials, and randomized controlled experiments. J-PAL emphasizes that randomized study designs provide the most accurate, unbiased, and reliable statistics out of all other impact evaluation options. In order to determine a program’s impact, it is essential to have a randomly-selected control group of participants who are statistically identical to the experimental group. Both of the groups are considered microcosms of the larger population and therefore equal in representation to each other. When applying this design, any changes between the control and experimental group can be attributed almost solely to the effects of the program. For more information on randomization and reliable data, see Validity of Research and Quality Health Data. The Purpose of Evaluation Abdul Latif Jameel Poverty Action Lab discusses the goals of evaluation: "If thoughtfully designed and implemented, it [randomized evaluation] can answer the questions, how Page 39 of 89
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