A Constituency Voice Tool

Developing a
Theory of Change

A Framework for Accountability and Learning

for Social Change

A Keystone Guide

Keystone operates on open source principles. We invite you to share your

experience and learning from use of this tool with us and other users
through our website at www.keystonereporting.org
Contents

1. What is a theory of change?

2. What are the benefits of a theory of change?
3. Some frequently asked questions
4. Activities to develop a theory of change
o Activity 1: Creating a ‘vision of success’
o Activity 2. Mapping ‘pathways of change’
o Activity 3. Developing indicators of success
5. Conclusion: From theory to planning

Glossary of terms

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What is a theory of change?
A theory of change is like a road map1. It helps us plot our journey from where we are now to where we want to
be. Or, to put it another way, it helps us answer the question: What is the change we are working for, and what
needs to happen for the change to come about?

But this is a little too simple to be really useful. So let’s briefly look at some of the elements that make up a
theory of change:

Question Element Example

Khanya Youth Training Project for ex-offenders
(KYTP)
What is the long term, A theory of change starts at the end of A vision of success for KYTP might look
sustainable social the change process: with a long-term like this:
change we want to vision of success. This needs to be Young ex-offenders in Johannesburg are
help bring about? more than just a general statement of a able to find secure, long-term employment
mission or goal – it needs too be a and become responsible citizens again.
detailed picture of what success would
look like.
What needs to happen The organisation then proceeds to KYTP identified the following pre-
for this change (or identify all the prior changes that must conditions for their vision of success:
vision of success) to happen if the vision of success to be • Youth have marketable vocational skills
achieved. These are necessary pre- • Youth have acceptable work habits and
come about?
conditions for success – which means culture
that they all have to exist if the long term • Attractive job opportunities are accessible
change is to be realised and • Youth have adequate counselling,
sustainable. housing and child care support
What needs to happen For each of the pre-conditions, the KYTP then identified a number of short
in order to achieve the organisation then creates a ‘pathway of term changes that would contribute to
pre-conditions? change’. This is a list of short term bringing about the preconditions. They
goals, or outcomes, that will help identified
achieve the specific preconditions of • The skills relevant for job opportunities in
success. the area
• What workplace habits and behaviours
are essential
• How to persuade employers to take on
youth
• What support services were needed
How will we know The final element of a theory of change KYTP then identified the evidence that
when these pre- is to identify indicators of success. would tell them that each of the changes
conditions have been These are specific, visible changes that had been successfully achieved. For
achieved? will tell us that success has been example, when we would know youth were
achieved. They are the evidence we sufficiently skilled, or displayed the correct
would see if we had been successful habits etc.

1 We are very grateful for the support and assistance of organisations like Actknowledge (www.actknowledge.org) who have been
pioneers of a theory of change approach for the last ten years. We hope they are happy with how we have developed their original
ideas.

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 The theory of change is a framework for strategic planning, dialogue and monitoring
What can WE do to Once there is a clear theory of change, Then they identified a range of skills training and life
help bring these it becomes possible to think about what skills programmes that they could offer that would
strategies and activities the equip youth for job opportunities in their area.
preconditions about? organisation can realistically undertake. but
They also realised that they could not do everything
A theory of change is also an excellent and so sought to identify and collaborate with other
reference point for involving actors who could provide the skills and services that
stakeholders and beneficiaries in the they could not themselves.
planning and monitoring of the
organisation’s work. It provides They shared their theory of change with other
framework for accountability and stakeholders, including the youth themselves, and
learning – as well as for understanding were able to revise their strategies in important
the ecosystem and collaborative ways that made them more responsive to the needs
partnerships. of youth and employers, and ultimately more
successful.

So, a theory of change is a formal tool to help us understand the real difficulties of bringing about lasting social
change in our world. It helps us understand everything that has to happen to bring about a long term goal. It
enables us to share these ideas with others and create a shared vision of the long-term change we all want to
see in a given community, how this change will be reached, and how we will measure our progress along the
way.

At Keystone we recognise that developing a good theory of change is not easy to start with. It requires
organisations to think and work very differently from what they may have been doing up to now. It might also
clash with the pressure they face from donors to think and plan in terms of short term projects using other
operational planning tools like logical frameworks.

But we believe that the benefits this will bring to any organization working for lasting developmental social
change, the benefits of beginning to base their work on a plausible, achievable theory of change will make all
the effort worthwhile.

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What are the benefits of a theory of change?
Sustainable change in the ‘well-being’ of people and communities is complex and depends on many different
factors. Social change organizations need to plan for results that will contribute in meaningful ways to bringing
about sustainable long term solutions. But lasting solutions to problems and complex developmental change
are seldom achieved by one organization working in isolation.

A plausible theory of change helps organizations understand how their work and their relationships are
contributing to complex, long term social change. It provides a clear framework within which organizations can
plan their activities, conduct their stakeholder dialogue, learn and communicate their success.

A theory of change helps us to identify and explain the pathways of change or the ‘mini-steps’ that we need to
take in order to achieve our long term goals. This makes it much easier to measure our progress and
contribution to long term change. We are able to concentrate on the short term and measurable goals while not
losing sight of our ultimate destination.

A theory of change also helps organizations understand their own work in relation to the activity ecosystem in
which they operate. It provides the basis for a learning system that weaves organizations, their constituents and
their investors into a relationship of mutual accountability and learning. It helps the organization forge and
manage strategic collaborations and partnerships that can lead to greater impact.

Ending the tyranny of the ‘project’?

Because lasting social change is complex, it requires us to address many different factors, and
work closely with many different actors in finding lasting solutions. A theory of change allows an
organization to think and measure its work in terms of its contribution to a comprehensive
solution, rather than try to aim to bring about solutions on its own.

This is what makes it so powerful. A theory of change supported by informed by deep

accountability and learning is the most powerful weapon we have to change the way funding
decisions are made and cultivate new sources of funding for our work. It enables us to begin to
develop funding and organizational models that truly enable comprehensive solutions to social
problems. And perhaps we can begin to imagine a life beyond the tyranny of the ‘project’ and
the ‘log frame’.

Or rather, the project and the log frame will take their rightful place in development
management: as useful operational tools within comprehensive solutions and strategies. They
way they are used now actively prevents us finding comprehensive solutions.

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A good theory of change is plausible, achievable, and measurable.

When you have a good theory of change you have:

• A clear and testable hypothesis about how change will occur that encourages learning and innovation
and enables you to demonstrate accountability for your results.
• A visual representation of the change you want to see in your community and how you expect it to
come about.
• A clear framework for developing your strategies and a blueprint for monitoring your performance with
your constituents because measurable indicators of success identified have been identified.
• Agreement among stakeholders about what defines success and what it takes to get there.
• A justification for developing your organisational capabilities.
• A powerful communication tool to capture the complexity of your initiative.

You can use your theory:

• As a framework to check milestones and stay on course.

• To document lessons learned about what really happens.
• To contribute to social learning about what works in development
• To keep the process of implementation and evaluation transparent, so everyone knows what is
happening and why.
• To persuade donors to invest in longer term outcomes rather than short projects.
• As a basis for reports to stakeholders, donors, policymakers, boards.

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Some frequently asked questions

How is a theory of change different from a mission statement?

A mission statement is usually a short statement summarising the purpose of an organisation and its
philosophy of action. It does not explain how change happens, and what is required to succeed, in the same
detail as a theory of change.

How is a theory of change different from a strategic plan?

A strategy is the specific actions that you choose to adopt to reach a goal. A theory of change explains the big
picture. It provides the framework of understanding how change happens within which the organisation and its
constituents can formulate their strategy and plan their activities.

It is also more than a ‘contextual analysis’ or a ‘needs analysis’ because it focuses on causes and solutions:
what causes the problem, and what changes will address the problem.

How is a theory of change different from a logical framework?

The illustration above shows the basic format of a logical framework model – though there are many variations
on this theme as well. The table below allows us to compare the two models.

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 Logical frameworks Theory of change
Graphically illustrate program components, and Link outcomes and activities to explain HOW and
creating one helps stakeholders clearly identify WHY the desired change is expected to come about
outcomes, inputs and activities
Usually start with what the organization is doing – Start with outcomes and seek to work backwards to
its program activities – and illustrate its identify ALL causal factors before deciding what
components. programmatic approaches are needed. Allows for
dialogue on what success looks like and the
pathways to achieving success.
Clearly show how program components link to Develops a hypothesis of why one change leads to
each other, but don’t explain why activities lead another. Is more more suited to long term strategy
to outcomes – or the pathways that may need to development and learning about what works.
be followed.
Seldom includes indictors of success Includes indicators of success.

Most useful when you want to: Most useful when you want to
• Summarise inputs, outputs and outcomes of • Design a complex initiative and want to have a
a pre-defined project at a glance. rigorous plan for success.
• Manage the inputs and outputs of a project. • Engage in dialogue and learning with
stakeholders.
• Evaluate appropriate outcomes at the right time
and the right sequence.
• Explain why an initiative worked or did not work,
and what exactly went wrong.

Logical frameworks have become the most popular planning and reporting tool in development work today.
They can be very useful as a planning and monitoring tool for short term specific projects where the objectives
are clear, the resources known, the activities planned in advance and the expected results are clearly defined.
However, many people feel that logical framework models are seen as too rigid to use for planning and learning
around complex long term solutions.

The problem comes when we try to use a tool designed for managing projects to develop comprehensive, long
term strategies.

How deep and detailed should we go?

Some people find developing a theory of change too complex and difficult to be helpful. This is probably
because they have tried to cram in too much detail. A theory of change should reflect the true complexity of
change, so that you can take into account all the things that you cannot do or control so that you have a
realistic sense of what is possible. But it should try to stick to the main outcomes the factors that cause them.

It is difficult to prescribe a rigid rule, but if you find yourself making long lists of detailed preconditions that you
lose the clarity of focus, then you are probably going too far.

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Activities to develop a theory of
change2
o Activity 1: Creating a ‘vision of success’
o Activity 2. Mapping ‘pathways of change’
o Activity 3. Developing indicators of success

The activities that follow are written so that they can be partially completed in a single initial
workshop.

But developing a full and comprehensive theory of change will take longer than this.

We recommend that an organisation begins this activity with a full day induction workshop
attended by all relevant staff at which they make a start on each of the activities.

Then a smaller group can develop the comprehensive theory of change in manageable stages.
A theory of change is a constantly evolving working document that should be the focus of
regular reflection and revision with staff, constituents and other stakeholders.

2We have drawn on the example of one of our pilot partners in the Philippines to illustrate some of these processes. The Cartwheel
Foundation is a small NGO running educational programmes for marginalised indigenous minorities in the Philippines. The examples
are as they came out of the workshop – incomplete, unpolished – but even so they have already helped the organisation rethink many
of its strategies.
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Activity 1: Creating a ‘vision of success’

The purpose and “aha” moments we are seeking in this activity are:

Purpose
• To generate an initial statement of a long-term “vision of success” for the
organisation that is plausible, achievable and measurable.

Aha!
• The kind of clarity that comes when people clearly describe a set of specific,
measurable long term ‘outcomes’ at which they can aim their interventions. When the
complexity becomes manageable – and there is something concrete to aim for, and
you can know when you’re making progress towards it.

1a. An epitaph for the organisation (60 minutes)

As an introductory activity, we recommend that the facilitator begins with a fun and challenging activity that gets
people thinking – and expressing themselves succinctly and clearly – getting to the core of their purpose and
reason for being – but in lively every day speech – not the formal language of a mission statement.

Organisations are living things – they are born, they grow, they work and they die. Participants are asked to
imagine, in the vast graveyard of dead CSOs, what they would like to have inscribed on their tombstone (or
other non Christian equivalent were appropriate).

What would you like the world to remember you for? The epitaph should be a very, very brief statement
that captures as briefly as possible the difference they have made in the world. They could start by
brainstorming some of the changes that they would like to see in their community.

The facilitator should capture whatever people blurt out on cards or on a flip chart. For each statement they
could ask things like:
• If you read this on a gravestone, would you stop and want to know more?
• Is it powerful and snappy enough to be on a grave stone?
• Does it really say what you’d like to be remembered for?

An epitaph needs to be a short, striking, memorable statement – one

that would grab the interest of a passer-by in the cemetery and make
them stop and think “This sounds like a really interesting organisation –
I wonder what its story is?”

After a while the facilitator should begin to draw the different thoughts together into a single coherent statement.

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 Case example: An epitaph for the Cartwheel Foundation (a small organisation working
with indigenous communities in the Philippines)

Some of the ‘brainstorming’ ideas that emerged in the discussion:

- That we were there first organisation in the area

- We empowered 1,000 young people
- We helped indigenous people stand on their own
- We brought them into the modern world
- We helped empower indigenous people through education to stand up on their own (What
would it look like when they are standing on their own?)
- Helped them attain cultural richness
- Helped them have control of their own future
- Live a good life free from poverty, violence, ignorance

CARTWHEEL’S EPITAPH

The Cartwheel Foundation empowered indigenous people to live a good life free from
poverty, violence, ignorance.

1b. What would success look like?

This activity moves from the epitaph to a fuller description of a vision of success.

Define the range and scope (10 mins)

What is sufficiently long time to be able to see the deep social change you are working on? What would you like
to see that will indicate that you have succeeded?

Choose a time horizon. It could be, say, five or ten years.

Define the geographical range of your work. This could be within a specific a community, a region, or a sector.
Describe your primary beneficiaries and stakeholders.
How would you describe the field of work that you are in?
Briefly identify what you think are the primary causes of the issue or problem you address – if this is
appropriate.

Brainstorm the vision (1 hour)

Now try to imagine and describe what success would look like for you as an organisation, if you had all the
resources you needed and there were no major disasters to derail you from your path. If the visitor who was
fascinated by your epitaph went to visit your community, what would you want them to see?
This activity continues the epitaph brainstorm, but is much more specific and precise.

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A variation of this activity is called the helicopter activity. Participants are asked to imagine they are flying above
the community in a helicopter. They are asked to imagine the changes they would see on the ground if they had
been completely successful.

Here are some questions that will help participants describe the changes they would see in specific detail. It is
important that the changes are always written in the form of outcomes or results.

1. What material conditions have changed in the lives of your beneficiaries and stakeholders?
2. To what extent have they become active participants in their own development rather than just
‘beneficiaries’?
3. What has changed in their ‘environment’?
4. How have relationships changed between people, groups and institutions like government, business
and CSOs?
5. What new opportunities exist for whom?
6. How have you as an organisation changed?
7. How has your role changed?

Do not be satisfied with vague and general goals.

Describe the changes specifically in terms of specific constituents. Each

statement must be written in the form of an outcome: a changed situation that
can be described and measured.

After a period of brainstorming, all the thoughts should be brought together into a statement – which is
recorded. This statement must be written in the form of an outcome: a changed situation that can be described
and measured. It should be much more specific than a general aim. The role of the facilitator in this activity is to
constantly ask: ‘Is this plausible?’ and ‘Is this measurable – what evidence would tell us that we have
succeeded?’

In their first Keystone workshop in 2005, the Cartwheel Foundation expressed its vision of what success would
look like thus:

Empowered indigenous communities

Indigenous communities have the individual capabilities and the
collective capacity (through education) to act independently and take
meaningful control of their own development.

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They then proceeded to identify indicators of success – what success would look like over a 10-15 year
horizon. This gave them a far more specific set of developmental outcomes to aim for as they planned their
interventions. Their first draft indicators were:

Extract from Cartwheel’s brainstorm:

What would you like to see that will indicate that you have succeeded?
Indigenous People Wider Society Us
College scholars are leaders and Indigenous people are fully We have a large volunteer base
change agents in the community. represented in the different sectors within our partner communities.
of society
Community leaders are better We enjoy longer term, more
trained and more effective. Indigenous individuals occupy key sustainable funding relationships
posts in organisations and public with at least half our budget as
Leaders have meaningful offices multi-year grants with core
relationships with local support
government over services Indigenous interests are present in
policy-making bodies Greater collaboration with other
Traditional and modern rights actors in govt and civil society and
and values are in balance Rights of indigenous communities business to achieve outcomes.
to land guaranteed

The vision of change exercise often forces an organisation to begin thinking outside of itself and into seeing
itself as one actor in a wider activity eco-system. Real and lasting social change seldom comes about as a
result of a singe organisation working in isolation – it is usually the result of complex interrelated interventions.
The Keystone method requires organisations to map the actors in its activity eco-system AND the possible
relationships that might develop over time for more effective change processes.

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Activity 2. Mapping ‘pathways of change’
– how we think change happens in our context.

A theory of change, at its most basic, is a road map of how we think we will get most effectively from “where we
are now” to “where we want to be”.

The question we now need to ask ourselves is: What needs to happen for the change we envisage to take
place – both what we do ourselves directly, and what others in our activity system do – and how we can best
align our efforts.

The purpose and “aha” moments we are seeking in this activity are:

Purpose
• To map, designing back from the vision of success, some broad ‘pathways of
change’ that lead from where we are now to where we want to be.

Aha!
• When participants ‘see’ a clear pathway of change – where a long-term outcome can
be achieved by bringing about a number of prior, more easily achieved and
measured, outcomes.
• When they see themselves in relation to other actors in an activity system and can
identify strategies and relationships between actors that can bring about more
effective interventions and more lasting results.
When they see their theory as an as the basis for learning, and turning information into
knowledge – as an emerging hypothesis based on a sound rationale to be strengthened
through stakeholder dialogue and to be tested in practice, constantly reflected on and
revised.

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2a. Brainstorming preconditions (30 minutes)
The group now works systematically backwards from the long term strategic vision and identifies
preconditions - changes and processes that are necessary for the long-term change to be achieved.

Question: What changes have to happen for your vision of success is to come about?

Participants should brainstorm all the preconditions that they can think of that are NECESSARY for the long-
term change to take place. These are written onto cards and stuck on the wall.

As they are presented, test the pre-condition by asking: Does this statement describe clear, achievable and
measurable outcomes.

Preconditions and indicators must be

specific and describe

• What?
• For Whom?
• How many?
• How good?
• By when?

2b. Grouping and identifying the primary preconditions

Now the group attempts to group the ideas into broadly related groups. Whatever seems to make the most
sense.

Within each group, participants should now seek to define ONE primary precondition that captures the main
ideas of the group. This may be one of the ideas that has been put forward in the brainstorm, or it could be a
composite of a number of those suggested. Primary preconditions are themselves medium to long-term
preconditions of the long-term change – but they are more specific than the long-term vision. These are then
placed at the top of the wall space, just beneath the vision of success.

The remaining preconditions in the group can then be grouped, and rewritten, as secondary preconditions of
the primary outcome. They may need to be rewritten slightly for this purpose.

In this initial activity, organisations do not break down these preconditions any further. They are listed as
necessary and sufficient secondary preconditions in the change pathways map. However, as the
organisation works and develops its theory of change, it may choose to break down some of these further, or
elevate a secondary precondition to become a primary one.

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The facilitator’s role here is to ensure that
• the preconditions are also written as outcomes that are plausible, achievable and measurable
• there is a clear, logical link between the pre-condition and the long-term outcome
• the precondition is at the right level - i.e. that primary preconditions sit above the secondary ones – and
are precondition of the long-term change rather than a precondition of some of the secondary pre-
conditions.

2c. Mapping the secondary preconditions

Now participants look at what is left, and slowly arrange these preconditions to create a flow chart of clear,
logically linked outcomes leading to the primary precondition of that group. The example of Cartwheel’s change
pathways map on the next page shows how this can be done.

In the initial workshop itself, it will only be possible to map secondary preconditions for one or two of the primary
pre-conditions. In most cases, completing the social change pathways will be done by the organisation outside
of the induction workshop. A smaller group should be tasked with completing the pathways map.

Over time, the organisation should meet to discuss the emerging theory of change and to refine it. In particular,
it will require time to identify the indicators of success that will help them in the planning and monitoring of their
strategies and programmes as they slowly align these to their theory of change.

Road maps, rationales and indicators of success

The basic statement of a theory of change takes the form of a ‘Pathways of change’ diagram. There is an example
of Cartwheel’s Pathways of change diagram on the next page. When this is complete, it functions as a clear and
accessible road map. You should probably not try to clutter this pathway diagram with rationales and indicators.

However, every outcome that is mapped in the pathway of change must have a clear rationale – or explanation – of
why it is a necessary pre-condition for success. After all, the only reason short term outcomes are useful is if we can
argue that achieving this goal takes us closer towards the comprehensive solution we are ultimately aiming at.

However, there should be background documentation for each pathway in which the rationales are recorded together
with the indicators of success. This is especially important for reflection and learning with stakeholders, and for
justifying your decisions in evaluations.

Remember though, a theory of change should always be seen as a working hypothesis which should be adapted and
changed as you learn from experience.

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 Empowered indigenous communities
Indigenous communities have the individual capabilities and
Cartwheel’s Pathways the collective community capacity (through education) to
enable them to independently take meaningful control of and
of change diagram manage their own development.

Young leaders Vibrant independent,

have access to community run pre- Schools are a focus Stronger, educated All adult
further education school of community life and accountable community
opportunities and provide high local leadership members are
quality relevant functionally
primary education literate

Young people At least 80% of Local education depts

have access to children are support school- Informed and
further going to school community educated Local Community is
education and governance and leadership are aware of
training dialogue able to confidently importance of
relate to local literacy
government &
Curriculum needs other national
Community to respect offices
members trained indigenous Adult education
Graduates have a as teachers & facilities are
commitment to knowledge
managers systems balance accessible
community/ sense
of community traditional &
Community
contemporary
members are
able to express
accountability in Community members
Successful High quality, their own & institutions
schools are appropriate language and contribute to teaching
established teaching and knowledge and learning
learning resources systems
reflect local culture

Community are
aware of value of Youth orgs active
PSE Parents actively in community
support learning & affairs
involved in
schools

This change pathways map is a graphic representation of the key outcomes they identified as pre-conditions for
success. Primary preconditions are in yellow. Secondary outcomes are in white. It is a first attempt to do this,
and there are still gaps and questions, but new strategic insights are already apparent. It does not have to be
perfect to be meaningful! It will be refined and deepened over time.

The organisation will use this as the basis for elaborating a written statement of their theory of change, that will
also include their philosophical approach to development, which of these strategic outcomes they see
themselves playing central role in bringing about, their analysis of their ‘activity system’ and who they will work
with.
Activity 3. Developing indicators of success
The last component of a theory of change is to identify clear indicators of success for each of the main
outcomes in your Pathways diagram.

Indicators of success should, as noted above, be written as specific measurable outcomes and describe things
like:

• What?
• For Whom?
• How many?
• How good?
• By when?

An indicator should describe what you would see on the ground if the organisation had been successful. We
can use the same questions that we used in the vision of success activity to derive success indicators for any of
the short term and intermediate outcomes that we identify. These are:

Changes in conditions (eg access to water, greater safety, etc)

Changes in behaviour (eg people conserving resources, being more responsive, etc)
Changes in relationships (collaborations, power)
Changes in capabilities (better able to solve problems)
Changes in opportunities (more equitable access to opportunities)

As an example, we repeat the indicators of success that Cartwheel identified for their vision:

Extract from Cartwheel’s brainstorm:

What would you like to see that will indicate that you have succeeded?
Indigenous People Wider Society Us
College scholars are leaders and Indigenous people are fully We have a large volunteer base
change agents in the community. represented in the different sectors within our partner communities.
of society
Community leaders are better We enjoy longer term, more
trained and more effective. Indigenous individuals occupy key sustainable funding relationships
posts in organisations and public with at least half our budget as
Leaders have meaningful offices multi-year grants with core
relationships with local support
government over services Indigenous interests are present in
policy-making bodies Greater collaboration with other
Traditional and modern rights actors in govt and civil society and
and values are in balance Rights of indigenous communities business to achieve outcomes.
to land guaranteed

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Conclusion
From theory of change to strategic plan

Identifying the outcomes that the organisation itself seeks to bring about
within its mission
The social change pathways will almost always include outcomes that do not fall within the ambit of the
organisations own mission to bring about. It is important to map these though. They help the organisation to
think of the entire “activity system” working for change in a given space – and think about how what they do can
align with what others do to make for more effective change.

Once it has a basic theory of change the organisation will proceed to do two things:

1. Begin to refine its theory of change in dialogue with its constituents and other stakeholders.
Keystone’s guide to stakeholder dialogue, “Learning with Stakeholders”, provides detailed
guidance as to how this can be approached.

2. Begin to bring its strategies and programmes into line with its theory of change. This will most
likely be a process of adaptation rather than sudden change, and will emerge out of the
organisations planning processes. In doing so, the organization may wish to deepen its
understanding of how it may work with others also affecting the problem it addresses. For this
purpose, the organization may wish to refer to Keystone’s guide to mapping the activity eco-
system and planning and managing collaborations, “Becoming Eco-Intelligent”.

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Glossary
Theory of change: A theory of change is an explanation of how the organization thinks that social change is brought
about. It ten identifies the essential preconditions that are need for this change to occur. These preconditions enable the
organization to trace a number of ‘outcome pathways’: visible and measurable short- and medium-term outcomes that will
lead to its long term goals. Finally, it includes a reference to other actors working in parallel and complementary ways in
order to achieve that change, which identifies the long-term relationships needed with other actors in order to achieve its
impact.

Outcomes: are lasting developmental results or changes that an organization wants to bring about in their society. They
are the reason why the organization exists.

Outputs: the activities, products and services that an organization does (workshops, shelters, training materials, advice,
etc.). The outputs help the organization achieve its desired outcomes, but outputs are a means to and end – they are not
the end itself.

Accountability: How organizations hold themselves to account externally, especially to those they affect most, and
internally to their values and their mission. Our understanding of accountability goes beyond simply complying with the
demands of those with the power to demand accountability. It involves developing mutually accountable learning
relationships among organizations, their constituents and donors that enhance developmental processes and outcomes.

Developmental performance and developmental impact: Applying a developmental approach to social change – not
simply ‘doing for people’ or ‘transferring resources’, but working alongside and maximising people’s ability, especially the
vulnerable and marginalised, to influence and shape the conditions, institutions, systems and relationships that impact on
the quality of their lives.

Stakeholders: all people and institutions that are affected positively or negatively by its decisions and actions.

Primary stakeholders or Constituents: Those groups or communities that are most affected by the organization and in
whose name the organization defines its mission. A commonly used term is ‘beneficiary’ – but the passivity that this term
implies makes it unsuitable in developmental processes.

Stakeholder dialogue: Dialogue involves an exchange of views and opinion. It seeks to explore different perspectives
and needs with a view to creating a shared understanding, trust and agreement on future action. It requires transparency
and trust. It requires all parties to be willing to listen, learn, and then act in good faith. The language and form of the
dialogue should empower vulnerable stakeholders rather than exclude them, and make sure that it is not a one-way
communication. Stakeholder dialogue is usually long term.

Activity ecosystem: The system of actors that influence the outcomes (positively or negatively) that the organization
wishes to achieve. All organizations work within a complex and dynamic ecosystem of people and organizations acting
simultaneously. Current reporting and funding practices often reinforce competition and insular mindset among actors
working on the same problem. The keystone method seeks to encourage the opposite: to reward actors who seek ways
of building alignment and collaboration within an ecosystem.

Ecosystem thinking and the collaboration capability: the understanding that complex and sustainable social change
is seldom brought about by an organization acting in isolation. The capability to think systemically and collaborate
effectively will enhance both the impact of the organization itself and the activity ecosystem as a whole. It implies mapping
actors (people and institutions) that form part of an organization’s space of activity, and developing strategic alignments
and collaborations that enhance overall impact of all parties.

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Some theory of change planning
templates

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 Our Epitaph

Our vision of success

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The preconditions for success
 The pathways to change
(the secondary preconditions)
The primary pre-condition

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