How HR can measure impact: Wendy van Tol, PwC, on the ‘Theory of Change’

HR leaders need to demonstrate strategic impact on business outcomes to prove the value of their people initiatives and secure board-level support. At Lepaya’s recent ‘People and Strategy' event, more than 30 senior HR and business executives gathered to explore how organizations can deliver impactful and measurable upskilling results.

Wendy van Tol, Partner Sustainability Transformation Services at PwC, shared in her keynote how the Theory of Change model helps organizations translate human-capital investments into tangible business and societal value. 

The model is a structured framework that maps how specific inputs such as training, budget, or time lead to measurable outputs, outcomes, and with this, long-term measurable business and societal impact. It forces leaders to define what they aim to solve for, who will benefit, and how each step contributes to business results.

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Why is the Theory of Change model so valuable for HR teams? 

Throughout my career, I’ve experimented with many approaches to organizational change and my preferred model is the Theory of Change. It’s a strategic method that can be applied to almost any human-capital initiative.

In my role as the Global Lead for PwC’s Sustainability Services, I see firsthand how critical it is to quantify the value of initiatives for business and for society. The Theory of Change helps our clients understand exactly what their investments achieve and how they can demonstrate that impact on the performance of the business.

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First, let’s define impact. Are you always measuring business metrics? 

Many HR leaders immediately think of input numbers (how much does it cost) when they hear the word ‘impact,’ but impact often goes beyond input numbers we can easily quantify. Take something as simple as office coffee. I often hear board-room members debate the cost-benefit of providing free coffee. 

Recently, bacteria was detected in Utrecht’s water supply, and companies sent out messages that coffee would not be available that Monday. I had a client meeting that day in Utrecht, and the office was completely empty. No coffee for people means no human connections. It’s the glue that gets conversations going. 

The impact of coffee is extremely important in organizations because it creates that space for people to bond and create emotional connection before you dive into difficult conversations or negotiations.

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How can you share an example of how the model translated an initiative into measurable outcomes? 

At Neighborhood Feminist, we applied the Theory of Change to address social challenges affecting young women in vulnerable communities in Amsterdam, particularly those lacking access to menstrual hygiene products.This lack of access results in absenteeism from school and work, perpetuates inequality, and contributes to long-term health risks.

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Through the Theory of Change framework, NF systematically mapped inputs—such as strategic partnerships, fundraising initiatives, educational programs, and free product distribution—to measurable outcomes. In the short term, NF enhanced access to menstrual products and delivered over 2,000 educational sessions, while raising public awareness and publishing the Code Red report, which was subsequently debated in parliament. Over time, the program expanded its reach to approximately 3,500 young women per month, enabling continued participation in education and employment, which has a positive (quantifiable) economic and social impact.

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How can HR use impact cases in organizations? 

This example shows how the Theory of Change allows you to tell a clear impact story and build a compelling business case, whether for business initiatives or social programs. For HR leaders, the Theory of Change is a powerful tool to demonstrate the real value of people's initiatives, win more buy-in for your investments and strengthen your strategic position.

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