Understanding Impact and Value, and the Different Types of Impact

This video establishes foundational concepts essential for assessing people practice effectiveness within organisations. It distinguishes between impact—the effect or difference created by a people practice activity on individuals, teams or organisational outcomes such as productivity, retention or customer satisfaction—and value, which evaluates whether the benefits gained justify the resources invested. The video examines how people practice creates value across multiple dimensions, including financial outcomes like reduced recruitment costs and non-financial benefits such as improved morale or employer brand, whilst emphasising that value is only realised when activities align with organisational strategy.

The video explores the multifaceted nature of impact by examining its different forms and temporal characteristics. It covers short-term impacts, which appear soon after an intervention, and long-term impacts, which emerge gradually and may be harder to link back to the original activity. It also distinguishes between positive impacts and negative impacts, recognising that organisational changes can produce unintended consequences requiring acknowledgment and mitigation rather than dismissal.

Additionally, the video addresses direct impacts, which result clearly and immediately from an activity, and indirect impacts, which occur through chains of effects and are often more difficult to measure despite potentially containing significant value. Understanding these distinctions—between short-term and long-term, positive and negative, and direct and indirect impacts—forms the conceptual foundation for designing measurement approaches and selecting appropriate evaluation methods in people practice.