[MUSIC] A logic model has five elements, inputs, activities, outputs, outcomes, and an impact. Let's go through each one of these critical elements. Inputs are those resources you need to do the work that you propose to do. The list of inputs varies from one organization to another, but most common are staff, volunteers, facilities, grants. Those things you need to make the organization work. Once you have resources, you're going to want to do work. Activities are the second piece of a model. The activities are your moment, where you're going to spell out, what are the programs, what are the different components of the enterprise that you're designing? And how are they going to actually work and practice. The activities are going to communicate to the world what it is that you're going to do. What the work is that you're going to undertake. Beyond activities are outputs. Outputs are the unit counts of the volume of work that you'll actually get done. It's great to say that you're going to do certain activities, but you need to be able to count them. Outputs are those things that give the world a sense of how much work got done, the number of clients that got served, the number of hours of service delivered. Outputs are unit measures of the volume of work that gets done. Knowing how much you're going to get done is good, but even better is how those volumes of work are going to translate into changes in the real world. Outcomes are that moment where you say, here is the way the world now looks different as a result of the work we're doing. Outcomes adhere to individuals or to communities. They can be short-term, medium-term or long-term, but at its core the outcome is a claim about a change in condition. The world looking differently as result of what you've undertaken. It is a change in the condition of a client or customer. It's a movement in the status of a community. It's a noticeable change in the world that you're affecting. Beyond the outcomes is the impact claim, the ultimate result of achieving your goal, your mission. The impact claim is where you sum it all up and tell the world why this matters, why what you're doing has made an impact on the world. It's the unitary claim of relevance and value. Put it all together, a value chain emerges leading from inputs to activities to outputs, outcomes and impact. It doesn't have to be complicated. Good logic models are simple and crisp. Let's take a look at one example so you have a concrete sense of what we're actually talking about. Blake Mycoskie is the founder of Toms shoes. Now he's added a line of eyewear. So it's shoes and eyewear, but it's built on one common model. You buy a pair of shoes or eye glasses and he gives away a pair of shoes or eyeglasses in the developing world to a person in need. In one page we understand what it is Toms shoes is trying to accomplish through its one for one program. On the left-hand side you'll see the inputs that are needed, shoes, education programs, program staff, logistics to move all of the eyeglasses and shoes around the world as needed. There's a set of activities that are undertaken in these countries in Latin America and Africa and beyond. Health fairs, education programs, rural outreach efforts and health programs that are aimed at families. Beyond those activities are set of outputs measures of the amount of work that gets done. They track the number of shoes and glasses given away, the number of children reached, the number of communities that are helped, the number of families that are part of the education programs. Counting the amount of work that gets done is good, but Toms wants to know something about how does the world look differently? How's there been a change? What has happened as a result of their work? There they're looking at outcomes in the terms of increase in school attendance by children because now they have shoes. They can walk to their classes. Improve sight by virtue of getting glasses that are needed. Increased protection against soil transmitted diseases, because now people are wearing shoes, they are protected. Increased emphasis and understanding of community health. All of these things are the changes that Toms shoes is trying to affect in the developing world, and they can track these things, and they can link them to the amount of work that they do, and the activities that they undertake. And then when it comes to the ultimate impact of this program, here they have broken it down to four main areas of impact. Health impacts, terms of improving community health. Education impacts in terms of improving achievement, cultural impacts in the form of greater awareness, and public health benefits to entire communities. What I like about this logic model is that for a global social enterprise aimed at helping children and families all around the world, we can in one page see how value is created. We can track how resources are translated into work. How work generates volumes of outputs, how those outputs change kids in communities and how it all amounts to social impact? In summary, logic models do three things. They tell the world what is it you do. They explain, how you're going to do it. And they tell a very simple story about why what you do matters. Put it together, having answers to those three questions, what, how, and why? And a logic model answers those three. Having good answers those questions, that's a fabulous starting point for a social entrepreneur, trying to communicate effectively why his or her organization is valuable. [MUSIC]