Theory of Change

Book excerpt: A Theory of Change is a planning, participation, and evaluation process that companies, philanthropists, nonprofits, governments, and groups go through to promote social change. The term Theory of Change was coined by Peter Drucker in his 1954 book, The Practice of Management. He defined it as a form of Management by objectives whereby organizations identify and follow high and low order goals in order to meet their objectives. But what is a Theory of Change exactly? How has the term and practice evolved? And what are its major setbacks and limitations? In Theory of Change, award-winning Social Strategist Entrepreneur Champion Muthle explores the history, evolution and impact of Theory of Change since its inception. The question naturally arises: Do Theories of Change serve to further frustrate or compliment strategic thinking and social impact efforts? This is a question the author explores throughout the book as he unpacks the history, structure, models, measurement, application, effectiveness, innovation, and growth of Theories of Change, eventually coming to propose new models-based on simplicity, minimalism, and culture-to better meet the demands and realities of modern times.