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.