The future of PFS,” argue V. Kasturi Rangan and Lisa A. Chase [in The Payoff of Pay For Success], “lies in aligning with impact-seeking investors, not return-seeking investors.” Should it? Or should Pay-For-Success (PFS) designers continue to make an effort to bring return-seeking capital to the table? Based on the principles of the organizational theory of robust action, we believe efforts should be made to attract return-seeking investors—but only as long as their criteria of success (financial return) doesn’t sideline the success criteria of other actors including governments, service providers, and particularly the end beneficiaries affected by PFS contracts.
Read the rest of the post on the Stanford Social Innovation Review website.