social return on investment (sroi) and the sroi network an introduction…
TRANSCRIPT
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Social Return on Investment (SROI) and the SROI NetworkAn introduction…
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What I want to do…
• Where has Social Return on Investment come from?
• What is SROI?
• What are the principles and benefits of SROI?
• What is the SROI process?
• Case study….
• Further information…
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SROI – background…
• Brought into Europe in 2002 from the Roberts Enterprise Development Foundation, USA
• Developed by nef as part of the Quality and Impact Project 2005 by blending other accountability approaches
• Trialled in Scotland as part of EU project• SROI UK formed…now the international ‘SROI
Network’• Backed by UK and Scottish governments during
2009-2011 through the SROI Project
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SROI – definition…“SROI is...• An approach to understanding and managing the value
social, environmental and economic outcomes created by an activity or an organisation. It is based on a set of principles that are applied within a framework.
• SROI seeks to include the values of people that are often excluded from markets in the same terms as used in markets, that is money, in order to give people a voice in resource allocation decisions. SROI is a framework to structure thinking and understanding. It’s a story not a number. The story should show how you understand the value created, manage it and can prove it.’
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SROI reports…
SROI = a RATIO of investment to social return + a full report detailing the STORY of CHANGE for your activity
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Why SROI needs principles, a framework and a set of
standards
‘Social value is expensive and difficult to measure and results could easily be rigged by organisations applying to gain or retain contracts’ Commissioner’s quote
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Principles
Social Return on Investment
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Understand the way in which the organisation creates change through a
dialogue with stakeholders
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Understand what changes
Value the things that matter (using financial proxies to represent value to stakeholders)
Only include what is material
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Do not over claim
Be transparent
Verify the result
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‘Social value’ represents changes we know are important to society but which we can’t take account of when making decisions
• We have become good at counting things and less good at understanding change
• We tend to ignore negative change when making decisions, which can lead to the wrong decisions
• We have relied on easy to measure things when making decisions
• We have therefore excluded outcomes which are important to certain stakeholders because we cannot take them into account
Valuation is therefore a way of including important outcomes that don’t have a ‘market’ value and ensure that decision-making includes the value of these outcomes
What is this thing ‘social value’ and why use financial proxies?
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• Communicate the SOCIAL VALUE generated by an organisation, project or activity to funders, management and stakeholders
• Maximise social value creation by developing organisations or activities based on an understanding of change; improve resource allocation and planning; improve and streamline monitoring and evaluation
SROI – the benefits…
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SROI – process…1. Establishing scope and identifying key
stakeholders
2. Mapping inputs, activities, outputs and outcomes (by stakeholder engagement to create an impact map)
3. Evidencing outcomes and giving them a value
4. Establishing impact
5. Calculating the SROI Ratio
6. Reporting, using and embedding
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Looking at an impact map…• Basic example on flipchart: Stakeholders, changes, inputs, outputs,
outcomes, unadjusted impact, deadweight, attribution, drop off, IMPACT
• Ratio of investment to return….allowing for….– Deadweight – tried to separate what would have happened
anyway– Attribution – how can we claim change is due to one
organisation?– Drop off – the affect from the change declines over time
• Example given Wheels-to-Meals• Just get the idea…• Logical concept…
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Inputs Outputs Outcomes Impacts
Tells the story of the changes experienced by a stakeholder as a result of an activity, and puts a value on that change
Inputs - resources invested in the activity
Outputs - the direct and tangible results from the activity, i.e., people trained, trees planted, products sold
Outcomes - changes to people or services resulting from the activity, i.e., a new job, increased income, improved stability in life
Impact = Outcomes less an estimate of what would have happened anyway ie. minus attribution, deadweight, drop off, (displacement)
Theory of Change
SROI – mapping impact…
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Stakeholder Outcome Indicator Possible Financial Proxy
Person with mental health problem
Improved mental health
Change in the use of mental health services
Cost of commercial counselling services as a proxy for value
SROI – process…
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The Refresh social prescribing project works with patients of Salford Health Matters (GP practice-based social enterprise) to ‘prescribe’ them a range of exercise, social activity and community-based activity (eg. allotments, exercise classes, art classes, etc.) in order to improve their physical and mental health and reduce reliance on medication and GP’s
Outcomes for patients: stopped smoking, lost weight, improved well-being, etc.
Outcomes for the health system: fewer GP visits, reduced use of anti-depressants, reduced obesity, etc.Calculations: a return for every £1 invested of around £9
SROI study made internal recommendations
SROI - case study… Refresh
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• Evaluative: conducted retrospectively and based on evidence of actual outcomes that have taken place over a given evaluation period
• Forecasted: predicts how much social value will be created if the activities meet their intended objectives
SROI – different types…
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• SROI Network - www.thesroinetwork.org – a membership body offering methodology development, training, assurance and regional networks
• Guide to SROI downloadable from website• Online database of indicators and financial
proxies at www.wikivois.org. Being a wiki database, it is open access for people to put in their own indicators and proxies, which will then be moderated for robustness and quality
SROI – further information…