Scale vs. Systems Change: How Social Impact Organizations Can Drive Both Growth and Transformation

In the evolving landscape of social impact, organizations face a crucial question: Should they focus on scaling their solutions or driving systemic change? The answer, increasingly, is both. While traditional scaling metrics might show impressive growth without addressing root causes, many social challenges persist unchanged. Here's how impact-driven organizations can pursue both scale and systems change effectively.

The Scale vs. Systems Change Dilemma

Social enterprises often fall into the trap of scaling their interventions without addressing systemic barriers. Take Toms Shoes, for example. While they successfully scaled their "buy one, give one" model to distribute millions of shoes, this approach didn't address the underlying causes of poverty that made shoes unaffordable in the first place. This realization has led to a sector-wide shift in thinking about impact.

Three Key Strategies for Dual Impact

1. Define Your Endgame Through Multi-Dimensional Scaling

Successful organizations approach scaling through three distinct dimensions:

Scaling Up: Influencing power structures and policy

- Example: Grameen Bank didn't just provide microloans; it influenced banking regulations and challenged traditional banking systems to better serve those with limited economic means.

Scaling Out: Multiplying solution reach

- Example: Khan Academy transformed educational access by open-sourcing their content and building a platform that reaches millions globally.

- Scaling Down: Changing hearts and minds

- Example: The Fair Trade movement didn't just create a certification; it transformed consumer consciousness about ethical consumption.

2. Embrace Lean Experimentation

Modern impact organizations are adopting startup-style lean methodologies to test assumptions quickly:

Real-World Testing: Spring Impact's "test, don't debate" approach emphasizes rapid experimentation over theoretical discussion.

Success Story: Harambee Youth Employment The accelerator in South Africa exemplifies this approach:

- Conducts 3,500+ daily interactions with unemployed youth

- Uses call center data to identify systemic barriers

- Continuously iterates solutions based on real feedback

New Players: Companies like Too Good To Go are using similar approaches to tackle food waste, combining a scalable app-based solution with advocacy for policy changes around food labeling and waste regulations.

3. Redefine Success Metrics

Traditional metrics often fail to capture systemic impact. Progressive organizations are adopting new measurement frameworks:

Beyond Numbers:

- Instead of: "Number of people served"

- Consider: "Changes in employer mindsets"

- Measure: "Policy engagement levels"

- Track: "Ecosystem development indicators"

-Example Metrics in Practice:

- Patagonia measures not just sales but its influence on industry sustainability practices

- B Lab tracks how many companies adopt B Corp certification and the resulting policy changes

- The Ocean Cleanup combines plastic removal metrics with data on behavior change and policy adoption

Overcoming Implementation Challenges

Organizations pursuing both scale and systems change face several hurdles, including:

Funding Challenges

- Traditional investors often see systems change as a distraction

- Philanthropic funders rarely provide the necessary long-term, flexible capital

- Solution: Organizations like Acumen and New Profit are pioneering new funding models that support both scaling and systems change

Operational Complexity

- Managing dual focus requires different skill sets

- Time horizons for success vary significantly

- Solution: Organizations like Ashoka support hybrid approaches through their fellowship program

The Path Forward

Success in combining scale and systems change requires:

1. A precise strategic alignment between immediate impact and systemic goals

2. Patient capital that understands the dual timeline

3. Strong measurement frameworks that capture both direct and systemic impact

4. Organizational culture that values learning and adaptation

Companies like Interface (sustainable carpeting) and Warby Parker (eyewear) demonstrate that building profitable, scalable businesses is possible while driving systemic change in their industries.

The future of social impact lies not in choosing between scale and systems change but in finding innovative ways to pursue both. While challenging, this approach offers the best chance of creating lasting social transformation.