LBG model - the essentials
The LBG model is used by companies around the world to assess and report on the value and achievements of their corporate community investment.
The model takes the form of a matrix that helps summarise, and quantify, the achievements of a community activity (or project). It breaks down the elements of the activity, detailing the different inputs, then going on to establish the outputs and, eventually, the impacts that these have achieved. The matrix is outlined below (it can be downloaded here).
The input/output matrix provides the framework necessary to put a monetary value on the input costs of a company's community involvement programme. It then goes further to assess what the programmes actually achieve - the output defined in terms of how the programme has benefited both the company and the community. Finally, it helps establish the longer-term impact of the programme, essentially assessing how the world is a better place as a result of the company's investment.
Input costs
Using the LBG model to assess the input costs of the community programme enables companies to measure the totality of their community contributions. It moves beyond straightforward cash donations to also include the value of the time spent by employees in the community during paid working hours as well as contributions in-kind.
It enables members to report how they contribute in a variety of ways:
- How we contribute - contributions in cash, time, in-kind, management costs
- Why we contribute - charitable gifts, community investment, commercial initiatives in the community
- What we support - Subject focus including education, environment, arts and culture, community development
- Where we contribute - geographic breakdowns, e.g: England, Scotland, Wales etc. or Europe, North America, Asia/Pacific etc
Output measures
When assessing outputs the LBG model covers the following areas:
- leverage of cash and resources from other sources drawn in by the programme;
- the community benefit, such as the number of people in society who benefit;
- the business benefit which accrues
Impacts
Impacts are more difficult to quantify than outputs and can often only be assessed in the longer term. Impacts differ from outputs in expressing not just what a company's contribution has brought to the community but how the world has changed as a result. For example, an output of a contribution might be that a school was able to buy new computers, the impact would be a longer-term assessment of the extent to which these had led to an improvement in computing skills and/or exam results.