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How StrataMetric works

What StrataMetric can do now

Developing an accurate measure of social impact is complex and we are improving the algorithm regularly.

The current StrataMetric release is 2020-A (“SM 2020-A”). This means the current algorithm was released in 2020 and is the first release of 2020. Each release within a given calendar year adopts a new letter “A”, “B”, “C” etc.

A starting point to understanding how StrataMetric 2020-A works is that is takes into account:

  • Number of People Directly Affected ~ This is the number of direct individual beneficiaries of the project.

  • Probability of Effect ~ This factor relates to the probability of the project significantly helping any individual beneficiary.

  • Level of Relief ~ This factor relates to the level of relief that can be expected by individual beneficiaries with respect to the underlying problem.

  • Seriousness ~ This factor relates to how serious the problem is the project seeks to address.

  • Duration of Relief ~ This factor relates to the time for which the beneficiary is expected to receive the relief.

Developments being included in a future release

Upcoming algorithm and platform developments include:

  • Define new dynamic form expansion conditions - the specific details of a programme can be captured to greater precision.

Limitations of SM 2020-A

The following limitations have been identified:

  • Does not measure second etc. order / indirect beneficiaries. For example, if the project is a new hospital ward, the algorithm does not take into account new employment opportunities for hospital staff.

  • Does not measure second etc. order / indirect benefits. For example, for a project that makes a vaccine available to a group of people, it does not take into account the positive effect this would have on the families of those treated or on society more generally.

  • Assumes the project will be successfully executed (i.e. it doesn’t take into account the risks associated with project fulfillment).

  • Does not take into account how the funding might be leveraged more in one project than another, for example, by empowering volunteers, supporting commerical entities, or using it as anchor/matched funding to raise other funds.

  • Cannot be used where the number of beneficiaries is unknown.

  • Relies on accurate (unbiased) user input. As in all software solutions, the output is only as good as the input.

  • Does not capture the full possible range of probability of effect and level of relief (these can vary dramatically between scenarios).

Project Type Specific Limitations:

  • For the funding of capital the beneficiaries are taken to be the number of people who will make use of the capital over its useable life.

  • For the funding of personnel (support staff / contractors), the beneficiaries are taken to be the number of people who will directly benefit from the funding of the personnel for the duration of the funding.

  • For the funding of medical research, the beneficiaries are taken to be the number of people who suffer from the medical condition which is the subject of the medical research.

  • An adjusted number of beneficiaries can only be estimated given the precise degree to which a capital/personnel upgrade will affect the overall programme/existing infrastructure.

Please contact us if you have any queries about limitations.