Bringing the Theory of Change of Financial Service Providers into the Business Strategy for Value Creation

Recommendations for Investors

In 2023, Cerise+SPTF joined forces with Abler Nordic, IFU, and Norfund to explore how investors can transform theories of change and outcomes management into actionable tools—fostering collaboration with financial institutions of all types and cultivating a culture where outcomes data drives decision-making.

Key takeaways of the project include:

  • A theory of change isn’t just a planning tool, it’s a strategic compass. It helps investors and FSPs align on what success looks like and how to get there.
  • Outcomes management is not about checking boxes. It’s about embracing messy realities, surfacing what works, and fixing what doesn’t, to improve outcomes while ensuring no harm to clients.
  • Most FSPs want to do this work but face internal barriers. Investors can unlock progress by co-creating realistic expectations, offering targeted support, and making it safe to be transparent.
  • Investors can use the ToC to prioritize, align, and recalibrate, while holding FSPs accountable for the outcomes they can control, without ignoring the complexity of clients' lives.

“This isn’t just a framework—it’s a culture shift. One that puts outcomes at the center of impact investing.”

Date of the report: 2024

Authors: Cerise+SPTF (Amelia Greenberg, CĂ©cile Lapenu, Fanny Le Maguet) and independent consultants from the SEPM Pro Network (Yamini Annadanam and Rakhat Uraimova).

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