Monitoring and Measuring Chance in Market Systems
Overview of the Seven Principles of Systemic M&E
1. Indirectness of impact: when a systemic approach is used, the endgame is to improve how
the system works so that it improves the livelihoods of marginalized people and increases
productivity and efficiency on an ongoing basis. The objective -by definition- cannot be the
direct delivery of inputs and services to the poor.
2. Depth of impact: changes in a system can be of different types according to how structural
and long-lasting (how “deep”) they are. These range from the most superficial changes, such
as variations in incomes and number of jobs, to the deepest ones related to self-awareness
(i.e. when the system questions its own nature and evolution). All types of change provide
useful information but an exclusive focus on the most superficial ones will have negative
consequences on sustainability and scalability. Closer attention must be paid to deeper
changes such as the creation of new relationships, increased access to information, shifts in
behavior and power dynamics, etc.
3. Network-driven change: a market actor is not a dot on a market map or a monolithic entity
that can be managed by the most senior director, owner or representative. Both public and
private market actors are in themselves systems or networks with varying degrees of
complexity. Facilitators must work with the most influential members of these networks (the
“collaborators”) before they start driving changes in the system. These networks are firstmovers or innovators that try to do things in different ways to improve the system; this is why
we call them “precursor networks”. Facilitators must work to promote the dissemination, copy
and adaptation of the successes or lessons generated by the precursor networks.
4. Unpredictability: the behavior and evolution of complex systems resist prediction; this
undermines the effectiveness of the mechanistic and rigid tools and approaches that are
predominantly used in market development initiatives. Flexibility, rapid learning and effective
collaboration between facilitators, NGOs and donors are key requisites to deal with and
navigate this uncertainty.
5. Sensitivity to external signals: the moment an NGO or a donor declares their intention to
intervene in a market system, both public and private actors adapt their behavior and
strategies seeking to maximize benefits in many different ways (e.g. economic gain,
reputation and influence). Facilitators must be very careful about the “signals” they
consciously or unconsciously emit when they engage with market actors, design and
implement strategies, and monitor and measure change.
6. Information deficit: no matter how much we know about a market system, there will always
be bits of information that we ignore and that can have important consequences on how the
system performs and evolves. This challenges our ideas about how much should we know
before we intervene in the system and begs for true participation (where co-creation is
promoted), continuous learning, effective communication and collaboration amongst key
stakeholders and partners, opportunism and flexibility throughout the design, implementation,
monitoring and evaluation.
7. Sustainability as adaptability: the adoption of a systemic approach requires a shift in our
understanding of the idea of “sustainability”: from the permanence of a given set outcomes
through time to the capacity of a system to benefit from new opportunities and minimize
negative impacts through time. Therefore, it is necessary to develop M&E frameworks that
can detect whether a system is building its capacity to adapt to shocks and new trends such
as consumer tastes, technological change, introduction of radical policies, natural disasters
and even socio-political revolutions.