Measuring and demonstrating Social Impact

Carol Deslandes20th November 2013

Workshop aimsTo create a better understanding of:

• What social impact means

• The importance of measuring and demonstrating social impact

• The different tools that are available

• How to demonstrate social impact

• Context

• NCSE framework• Defining and measuring

outcomes• SROI• Big Society Capital

Outcomes Matrix• Reporting

Social Impact Measurement: Definition

“The measurement of the impact of changes (outcomes) intentionally achieved in the lives of

beneficiaries as a result of services and products, delivered by an organisation, for which the

beneficiary does not give full economic value” ……..

Why measurement matters now

• Social need• Cash constraints in public funding• Legislation• Evolving thinking• Changing delivery landscape• Changing funder landscape• Growth of the measurement culture in policy

making and public life

Key drivers• The tightening public purse – more for less (Value for money)• Greater devolvement of service delivery from State control

– Open Public Services Act 2012– The Localism Act 2011– Health and Social Care Act 2012• Providers looking to differentiate themselves• Emerging social investment market• Public Services (Social Value) Act 2012 – social value

created or destroyed with the procurement

Outcome- Based Government: How to improve spending decisions across government - Centre for Social Justice Jan 2011

Impact requirement for key stakeholders

• Social Investors– Screening and investing for greatest scale and impact

against capital– Triggers for payment– Evidence of best practice and opportunities for innovation

• Commissioners– Greatest outcomes for least risk– Seeking on-going cost efficiencies against budget cuts

through outcomes based commissioning– Wider cost savings across departmental arenas now being

considered

The benefit to organisations?Can help you to:• Learn and develop as an organisation• Plan and estimate the impact of a future initiative or

organisation• Continuously improve services• Prove your impact in funding, investment or planning

bids where anecdotal evidence is not enough to secure agreement

• Show the community the value of their custom or volunteer time

• Make an even greater difference

What is Social Impact?• Tells the story of the change we bring to

people’s lives Just a new approach to doing something we have

always done

• Why explore it? A problem, or something that could be done better

(Original situation)What you did in your initiative to address it (Your

activity)What happened as a result (Change in original

situation)

Think about your organisation as a whole, or if easier, a specific strand of work

Who will lead on this in your organisation?

When will this work be completed by?

What social impact does your organisation deliver?

What outcomes or outputs would you need to measure to demonstrate that social value?

How can you measure the outputs or outcomes that you have identified? Is there a tool that is most appropriate

How will you let your stakeholders know about your social impact?

Action Plan for measuring and demonstrating social impact

Defining and measuring outcomes

• While outputs tell us that an activity has taken place, alone they cannot tell us if an activity is effective

• Outcomes (the actual change that has occurred) provide us with information about effectiveness

• Only outcomes tell you that change has occurred

Problems with measurement

• Financial measurement: limited measure of value

• We allocate resources only to the things we can measure

• Stakeholders are left out of the decision making

The Challenge

• Measuring “making a difference”– Providing evidence that your organisation is doing something

that provides a real and tangible benefit to other people or the environment

• Measurement across the “triple bottom line”– The economy– The environment– People

Which Social Impact Method or Tool?

• Influenced by:• Motivation • Readiness• Capacity• Impact

Which Social Impact Method or Tool?

• Eco Management & Audit Scheme (EMAS)

• Local Multiplier 3 (LM3)• Prove it!• The Social Impact Measurement for

local Economies (SIMPLE)• Social Accounting and Audit (SAA)• Social Return on Investment (SROI)• Volunteering Impact Assessment

Toolkit• C3 Perform

• Customer Service Excellence

(previously Charter-mark)

• European Foundation for Quality Management (EQFM)

• Fit for Purpose• Practical Quality Assurance System fr

Small Organisations (PQASSO)• Social Enterprise Balanced Scorecard• 3rd Sector Performance Dashboard• Quality First• Outcomes Star• SOUL Record

SROI – The 7 Principles1. Involve stakeholders2. Understand what changes3. Value the things that matter4. Only include what is material5. Do not over-claim6. Be transparent7. Verify the result

A piece of information is material if it has the potential to affect the stakeholders’ decision

What’s involved?

Every organisation – no matter how small or new – can measure social impact

Start by measuring one indicator, perhaps related to one activity

Once used to this, more indicators can be added

• 3 stages:Identifying the changes to be measuredMeasuring (or estimating if you are looking forward)

the amount of impact you haveExplaining the context or worth of that impact

Stage 1: Identifying the changes to be measured – Looking in

Identify:• Key material stakeholders?

•Inputs - income and expenditure associated with the activity being analysed•Key outcomes

Exercise: Case Study

• Hand-out

• Who are their key/ material stakeholders?• What are the inputs?• What are the outputs?

Case Study: Stakeholders

Case Study: Inputs

Case Study: Outputs

Stage 2: Measuring the changes – Looking out

The key to the process is a four step model to turn aims and objectives into “indicators”. 1.What is the change?2.Who will you ask? 3.What questions will you ask?

Check common outcomes and see what you need to gather data on or estimate

4.Measuring the “Distance Travelled” Assess whether what you currently measure provides evidence for your theory of change

Devise a scale on which we can measure this change Ask the questions chosen more than once so that we can

measure the distance travelled along the scale

Theory of change - participantsBy attending work- shop(s) [art, photography, film

making, music, creative writing, drama, circle dancing, drumming] participants creative abilities were improved.

As a result..... They felt engaged in things that have or bring meaning

As a result ..... They experienced increased hope and confidence for the future

As a result ...... Leading to increased confidence and self esteem

Improvement in confidence and self esteem

Deadweight, attribution and displacement

• Deadweight– outcome that would have happened anyway, even

if the activity had not taken place and for which [the organisation] cannot claim credit

• Attribution– how much other people or activities have

contributed to the identified outcome• Displacement

– an assessment of how much of the outcome has displaced other outcomes

Putting a value on results - ProxiesKey principle of SROI - Value the things that

matter:• SROI captures things that have no price as

such• Select proxies that represent the value to the

stakeholder as much as possible• Proxies used to represent the value created

– Provides a common unit of measurement– Allows comparison of the return with the

investment

Financial Proxies - examples

The Outcomes Matrix• New Philanthropy Capital, SROI Network, Investing

for Good and Big Society Capital• Tool for SIFIs and social sector organisations to think

through their own theory of change• Aims to establish common ground and language

regarding social investment and impact assessment• Two elements:

– Vertical axis; aspects of a person’s full and free life– Horizontal axis; kinds of individuals or groups who might

benefit from the aspects set out

Vertical axis1. Education, learning and skills2. Employment and training3. Housing, property and essential needs4. Finance and legal matters5. Physical health6. Mental health7. Healthy living and lifestyle8. Personal and social well being9. Criminal justice and public safety10. Local area and getting around11. Culture, sport and heritage12. Politics, influence and participation13. Climate change and conservation of the natural environment

Horizontal axis

• Individuals• Families and children• Community, sector and society

There are 13 outcomes maps – each documents the relevant outcomes and indicators that are currently

being measured by charities, government and practitioners working in this field.

N.B. They are a starting point – not intended to be definitive or comprehensive

Outcomes Map: Housing and essential needs

• Definition• Context• Responses to housing need• Vulnerable groups• Key outcomes• Related outcomes• Examples of typical interventions• Current approaches to measurement• Key sources

Housing and essential needs: Key outcomesHousing, property and essential needs

Individuals Families & Children

Community, Sector and Society

Provision of secure, habitable and affordable housing equipped with sustainable and essential facilities such as safe drinking water, energy, sanitation, food storage, refuse disposal and access to emergency services

Fewer people homeless or living in poor quality homes

Fewer people homeless or living in poor quality homes

More affordable housing

Improved access to affordable basic needs

Improved access to affordable basic needs

More community housing

More vulnerable people or those with specialist needs able to live with greater independence

Reduction of children in care

Fair tenant management and behaviour

Increase in availability and/ or quality of safe housing or residential care for children

Public cost benefit

Increase in availability and/ or quality of safe housing and residential care for vulnerable people or those with specialist needs

Key outcomes

Specific outcomes

Indicators Existing measures

Source & use Stakeholders (lagging)

Notes

Fewer people are homeless or living in poor quality homes

Fewer people are sleeping rough

Number of people sleeping rough

Street counts

Rough sleeping statistics, DCLG

• Individual• Community

& Society

Figures provided by all authorities. A minority undertake a count, and a majority provide an estimate

Number of bed nights provided by homeless shelter

Counts based on service provider’s records of clients

Initiatives to collate information across services in:•CHAIN (Combined Homeless and Information Network)•Homeless Link Critical Mass project

• Individuals• People with

mental health problems

• People with drug & alcohol problems

CHAIN database contains over 100 variablesCritical mass contains over 100 variables

Number of unique beneficiaries

Number of bed spaces in direct access projects

Service provider’s records of provision

Homeless Watch Survey of Needs and Provision

• Individuals• People with

mental health problems

• People with drug & alcohol problems

Data collated by Homeless Link using Homeless UK online directory

Number of bed spaces in second stage projects

Measurement overview: Housing and essential needs (partial extract)

Reporting

• What is the purpose of the report?• Who do you need to communicate with?

– Assurance/ Third party involvement?– Web-site– Twitter– Facebook

Activity - summaryUnderstand your goals for the analysis – define the purpose

Define organisation’s values, mission, objectives and activities

Identify the key stakeholders Concept of “Materiality”

Determine the scope of the analysis

Project or organisation?

Analyse income and expenditure

Associated with the activity under review

Map the impact value chain (logic model)

Assess impacts on each (relevant) stakeholder

Set indicators and collect data Deadweight/ attribution

Calculate social return Standard NPV with/ without sensitivity analysis

Reporting Assurance/ Third party involvement?/ Web-site/ Twitter/ Facebook

Contact details

• Inspire2Enterprise:E mail: info@inspire2enterprise.orgWeb-site: www.inspire2enterprise.orgTwitter: www.twitter.com/Inspire2EPhone: 0844 9800760 • Carol Deslandes; Head of Strategic Development Email: carold@inspire2enterprise.org Phone: 07702 717592