SOCIAL RETURN ON INVESTMENT (SROI)

Transcription

1 Creative Communities Consortium SOCIAL RETURN ON INVESTMENT (SROI) 1

2 A STEP BY STEP GUIDE 7 Principles 6 Stages of SROI Process 1) Establishing Scope & Identifying Key Stakeholders 2) Mapping Outcomes 3) Evidencing Outcomes & Giving Them a Value 4) Establishing Impact a. Consulting Stakeholders b. Developing Monitoring Tools 5) Calculating the SROI 6) Reporting, Using & Embedding (A Guide to Social Return on Investment, Cabinet Office, 2009) 2

3 HOW THE PROCESS WILL WORK Monthly meetings Focus on each stage of SROI Workshop approach: presentation & discussion Completion of SROI worksheet You - in consultation with your stakeholders Homework! Finishing off and checking SROI analysis completed within 6 months Use shared monitoring forms and keep data safe 3

4 OUR RESPONSIBILITIES Me You Guide you through the process Provide accurate and honest information Source benchmarking data SROI calculations Develop final report Attend workshops or arrange catch-up Think carefully, be honest and give as much detail as you can Consult your stakeholders Do your homework! 4

5 7 PRINCIPLES OF SROI Involve stakeholders stages 2, 3 and 4 require stakeholder consultation stakeholder-informed not stakeholder-led Understand what changes Value the things that matter Only include what is material Do not over-claim Be transparent Verify the result 5

6 STAGE 1.1 ESTABLISHING SCOPE 1. Purpose 2. Audience 3. Background 4. Resources 5. Who will carry out the work? 6. The range of activities on which you will focus 7. The period of time to be considered 8. Type of analysis 6

7 STAGE PURPOSE 1. What is the purpose of this SROI analysis? 2. Why do you want to begin this process now? 3. Are there specific motivations driving the work, such as strategic planning or funding requirements? The purpose of this SROI analysis is to explore the social value being created, both individually and collectively, by an emerging network of creative and social organisations. A key aim of the analysis is to explore the extent to which the network is contributing to the proposed social change prioritised by the local authority s new strategic regeneration plan, A Vision for Sefton. 7

8 STAGE AUDIENCE 1. Who is this analysis for? 2. This should cover an initial assessment of how you will communicate with your audiences This analysis is aimed at stakeholders interested in funding or otherwise supporting organisations within the network. It is also aimed at communicating the impact of the network to a broader audience including potential participants, partner organisations and other local organisations in the creative and social sectors. Some stakeholders will be engaged in the analysis through consultation or through other means. On completion of the analysis, a range of key stakeholders will be invited to a launch event for the final report, and invited to comment. The final report will also be made available online and parts of it will be used to inform a variety of communications and funding bids. 8

9 STAGE BACKGROUND 1. Consider the aims and objectives of your organisation and how it is trying to make a difference. 2. If you are focusing on specific activities you will need to understand the objectives of those activities. 3. It is important that you have a clear understanding of what your organisation does and what it hopes to achieve by its activities. The Creative Communities Consortium aims to by [Your organisation] aims to by 9

10 STAGE RESOURCES 1. What resources, such as staff time or money, will be required? 2. Are these available? Workshops: 8 hours (8 x 1hr workshops Jan July 2013) Homework: 8-16 hours (1-2 hrs per month) Consultation: 4-6 hours TOTAL: hours 10

11 STAGE WHO WILL CARRY OUT THE WORK? 1. Can you undertake the SROI analysis internally, or will you need to bring in external help? 2. Make sure you have the right mix of skills and support from the start. 3. Generally, you will need skills or experience in finance, accounting, evaluation and involving stakeholders. An external associate will lead the analysis, guiding organisation/ project representatives through the process step-by-step. She has experience in the areas noted above, as well as in research and management in the creative and social sectors, and teaching in higher education in relevant subjects. External funding has been secured to cover costs. The network/associate also have access to a range of forums and support organisations providing information and advice on the SROI process. 11

12 STAGE RANGE OF ACTIVITIES 1. Will you be analysing all the activities of your organisation, or just specific ones? 2. You might want to separate the activities related to a particular source of funding, or those that are a priority for you. 3. Keep your scope small if this is your first SROI. 4. Clearly describe what you intend to measure. For example, if the activity is our work with young people this may cover several different projects or services. You may actually mean something more specific, like mentoring support provided to young people. The aim is to analyse all of the KEY activities of member organisations. However it is recognised that this may not be feasible within the timescales and with the resources available within organisations. It is therefore recommended that members prioritise the projects/services you wish to include in the analysis and work through them one by one within the time you have available. NB. Not including one or more projects will not necessarily have a negative impact on your final SROI calculation, since both the relevant inputs and outputs will be omitted from the final calculations. 12

13 STAGE PERIOD OF TIME 1. SROI is often annual 2. Often corresponds with financial accounting timescales 3. Can be specific to a project timescale The analysis will cover ONE YEAR, corresponding with the majority of members financial accounting timescales. This means including all activities/projects/services that will take place within that year, even if they do not run continuously throughout the year. 13

14 STAGE TYPE OF ANALYSIS Type of analysis Evaluative Conducted retrospectively Based on actual outcomes that have already taken place Can be challenging if correct data has not been collected Forecast Predicts how much social value will be created if activities meet intended outcomes Especially useful in planning stages Help to show how investment can maximise impact Useful for identifying what should be measured once project is up and running Ensures that right data is collected to enable an evaluative SROI in the future We will be undertaking a FORECAST analysis. On completion of the first year, an EVALUATIVE analysis will be undertaken, comparing the forecast with actual outcomes. 14

15 STAGE 1.1 ADJUSTING THE SCOPE Adjusting your scope in response to new information is good practice and is not unusual You may wish to review your scope after considering the numbers and types of stakeholders you need to involve This will determine the resource required and it may mean you need to start with fewer activities We will revisit our scope at the relevant stage. Please keep your scope in mind during the initial stages and make a note if you think you need to review your scope. 15

16 STAGE 1.2 IDENTIFYING STAKEHOLDERS Stakeholders are identified as people, groups or organisations that experience change as a result of your activities Don t hold back identifying a stakeholder group here does NOT mean you will have to engage or consult them all! Now decide which stakeholders are most relevant to your activity and should be included in your analysis Make a note explaining your decisions for including or excluding each stakeholder we will need these at a later date Now transfer the names of the stakeholder groups you have chosen to include onto the SROI Impact Map Stage 1 16

17 STAGE 1.2 IDENTIFYING CHANGES Describe the key change(s) that each stakeholder group experience Changes may be positive or negative Changes may be intentional or unintentional Be descriptive, but succinct! 17

18 STAGE 2 MAPPING OUTCOMES 2.1 Beginning your Impact Map 2.2 Identifying Inputs 2.3 Valuing Inputs 2.4 Clarifying outputs 2.5 Describing outcomes Remember our themes: Improving Health & Wellbeing Improving Skills, Employability Improving Organisations Improving Physical Spaces 18

19 STAGE 2.1 BEGIN YOUR IMPACT MAP A different Impact Map for each key activity/service/project Enter the following information at the top of the form: Name of Organisation Organisation Objectives Activity Activity Objective Contract/Funding/Dept Purpose of Analysis (this will always be Forecast) Your Name Date of Completion 19

20 STAGE 2.2 IDENTIFYING INPUTS Investment refers to the financial value of the inputs Identify the contributions of stakeholders ESSENTIAL to the delivery of the activity Inputs are used up in the course of the activity Mainly money, time or in-kind goods and services Funders or customers might invest money Volunteers or partners might invest time Beware of double-counting inputs eg. if you have a surplus Do NOT include time contributed by beneficiaries 20

21 STAGE 2.3 VALUING INPUTS Create financial values for all inputs Regardless of whether any money changes hands Ensures transparency about the full cost of your activity For volunteers use a value equivalent to average hourly rate for the type of work they are doing For volunteers can also include an allocation of overheads as you might with an employed person eg. NI, desk space, IT etc. Volunteering England has some useful information 21

22 STAGE 2.4 CLARIFYING OUTPUTS A quantitative summary of the work undertaken 50 people trained 25 children involved 6 artworks created 5 businesses created May be several different outputs for each activity or each stakeholder group Outputs can be repeated for different stakeholder groups 22

23 STAGE 2.5 DESCRIBING OUTCOMES An outcome is what happens as a result of the output 50 people trained = 10 trainees get jobs 25 children involved = 20 children improve confidence and self esteem 6 artworks created = 6 playgrounds improved 5 businesses created = jobs created Relate outcomes to the stakeholder group Broad stakeholder groups might have broad outcomes Eg. A govt funded project for refugees might list better integration of refugees as an outcome for the state Use your judgement 23

24 STAGE 2.5 DESCRIBING OUTCOMES An outcome is what happens as a result of the output 50 people trained = 10 trainees get jobs 25 children involved = 20 children improve confidence and self esteem 6 artworks created = 6 playgrounds improved 5 businesses created = jobs created Relate outcomes to the stakeholder group Broad stakeholder groups might have broad outcomes Eg. A govt funded project for refugees might list better integration of refugees as an outcome for the state Use your judgement 24

25 STAGE 2 REVIEWING YOUR IMPACT MAP This chain of events is often described as a theory of change Make sure you have only included material outcomes Check that you aren t missing anything significant or including something that is not relevant Decide what you will finally include before you move on to the next stage of measurement If you decide to exclude any outcomes make a note of this and your reasons we will need this at a later stage 25

26 STAGE 3 EVIDENCING OUTCOMES AND GIVING THEM A VALUE Recap previous session Remember outcomes should include numbers 3.1 Developing outcome indicators 3.2 Collecting outcomes data 3.3 Establishing how long outcomes last 3.4 Putting a value on outcome Remember our themes: Improving Health & Wellbeing Improving Skills, Employability Improving Organisations Improving Physical Spaces 26

27 TOOLS HEALTH & WELLBEING Improving Health & Wellbeing Rosenberg Self Esteem Scale Warwick Edinburgh Mental WellBeing Scale (WEMWBS) Outcomes Star Wellbeing Outcomes Star Mental Health Recovery Clinical Outcomes in Routine Evaluation (CORE) - 34-item questionnaire measuring a pan-theoretical core of clients' global distress, including subjective well-being, commonly experienced problems or symptoms, and life/social functioning 27

28 TOOLS CHILDREN S WELLBEING Leuven Scale of Child Involvement measures engagement in activity UNICEF s 2008 report Child poverty in perspective: An overview of child well-being in rich countries presents a new index of childhood well-being, constructed around six domains, one of which was subjective well-being (defined in terms of self-reported satisfaction with health, school and life overall). The TellUs survey, developed and conducted by OfSted, is an extensive (13 page) selfreport survey based around the five core dimensions of the ECM framework. It includes a question on happiness. New Philanthropy Capital Feelings Count developed specifically for use in the charity sector for use with year-olds. 41 questions incorporating 5 existing models. Seven core aspects of subjective well-being incl. self-esteem, resilience, emotional well-being, peer relationships, family relationships, satisfaction with school environment, and satisfaction with local community environment. NEF/Action for Children developed a sample questionnaire for primary school aged children using a ladder to rate overall life satisfaction and smiley faces to rate 9 questions about emotional wellbeing, relationships and physical indicators of stress. The Warwick Edinburgh Mental Well-being Scale (WEMWBS) is a 14-item instrument that was developed for NHS Health Scotland and (from 2008) is included in the core module of the annual Scottish Health Survey now validated for use with year-olds. 28

29 TOOLS SKILLS AND EMPLOYABILITY Improving Skills & Employability Outcomes Star Work Triangle Consulting Distance Travelled Guide developed by ESF Formula One developed for Neighbourhood Learning Centres The Personal Power Pack - developed by Gloucestershire Council Adult Education The SOUL (Soft Outcomes Universal Learning) Project developed by the Norfolk voluntary and community sector 29

30 TOOLS IMPROVING ORGANISATIONS Jobs created/safeguarded Financial indicators -Turnover, ratio of public/private revenue, surplus, stability PQASSO spider diagram 1. Planning 2. Governance 3. Leadership and management 4. User-centred service 5. Managing people 6. Learning and development 7. Managing money 8. Managing resources 9. Communications and promotion 10. Working with others 11. Monitoring and evaluation 12. Results 30

31 STAGE 3.1 DEVELOPING OUTCOME INDICATORS An indicator is a way of finding out whether and how much change has happened Create at least ONE indicator for each outcome More indicators will strengthen (triangulate) your data Balance between subjective/perceptions and objective/verifiable Subjective and objective can both be self reported, but third party data would strengthen a case eg. For health improvements, subjective data might be participant perceptions of improvements to health or wellbeing. Objective data might be number of medical appointments/medication reduced. Check they are measurable and within our means Remember our themes: Improving Health & Wellbeing Improving Skills, Employability Improving Organisations Improving Physical Spaces 31

32 STAGE 3.2 COLLECTING OUTCOMES DATA Identify WHERE you can collect data on outcomes from Maybe already available from internal or external sources Membership organisations, government departments, market research firms, consulting companies, partner organisations etc. Published research from universities, government departments or research organisations etc. Maybe you need to collect new data from stakeholders Beneficiaries, project staff, partners etc. Identify HOW you will collect the data Bespoke monitoring forms 121 sessions / Interviews / focus groups Questionnaires (face-to-face, telephone, post, , internet) From partner/third party agencies (data protection issues ) 32

33 STAGE 3.2 COLLECTING OUTCOMES DATA WHO will you ask? Total population or representative sample? What proportion? Random, purposive, probabilistic or convenience Use your judgement choose a sample you feel is defensible and within budget WHO will collect it? Do you have (can you make) time? Think about bias / power relationships - can you swap with colleagues? Is there anybody external? WHEN will you collect it? Plan ahead Start, middle and end Every 2 weeks / 6 months / annually Post-project tracking? During existing contact or separately? 33

34 STAGE 3.3 ESTABLISHING HOW LONG OUTCOMES LAST Some outcomes last longer than others maybe 1-5 years Some depend on continuing intervention, some do not If you believe the outcome will last beyond the activity, then it will continue to generate value Timescale usually number of years the benefit period Estimate the duration of each of your outcomes Ideally you would ASK your beneficiaries Kerry Traynor If this is not possible you can use other research to support your estimate Do not overstate your case and lose credibility 34

35 STAGE 3.4 PUTTING A VALUE ON THE OUTCOME Create financial values for all outcomes Monetisation of the outcome assigning proxies Proxies = approximations All values are subjective markets decide Widely used in environmental and health economics less so in the creative and social sectors 35

36 STAGE 3.4 PUTTING A VALUE ON THE OUTCOME Health & Wellbeing Cost saving for NHS of GP clinic appointments Cost saving for NHS of counselling services Improving Skills & Employability - moving into employment creates: Increased income to individual - net of tax Reduced costs to government - benefits Improving Organisations More efficient organisations reduce need for public subsidy New jobs create increased income for the government employment taxes Improving Physical Spaces Increased land use Reduced vandalism 36

37 STAGE 3.4 PUTTING A VALUE ON THE OUTCOME Proxies that are more challenging.. Contingent valuation asking people directly how they value things Revealed preference inferring valuations from the prices of market-related goods Travel cost methods translates inconvenience into money eg. costs of someone travelling to access a service Average household spending on categories such as leisure, health or home improvement to see how much people value these types of activity (see Family Spending Survey) 37

38 STAGE 4 ESTABLISHING IMPACT 4.1 Deadweight and Displacement 4.2 Attribution 4.3 Drop-Off 4.4 Calculating your Impact 38

39 STAGE 4.1 DEADWEIGHT DEADWEIGHT is a measure of the amount of outcome that would have happened even IF THE ACTIVITY HAD NOT TAKEN PLACE. Eg. a regeneration programme finds that there had been a 7% increase in economic activity since the programme began. However the national economy grew by 5% during that time. So you would need to consider how much of the 7% was due to your intervention. This will always be an estimate don t worry about proving your estimate. We may be able to access national datasets such as British Social Attitudes Survey to get an idea of nationwide trends for comparison. 39

40 STAGE 4.1 DISPLACEMENT DISPLACEMENT is an assessment of HOW MUCH OF YOUR OUTCOME DISPLACED ANOTHER OUTCOME. Does not apply in every SROI but must be aware. Eg. crime being moved from one area to another. Eg. an employed person moving from one job to another as they are displacing a potential outcome of moving somebody out of unemployment and into employment. 40

41 STAGE 4.2 ATTRIBUTION ATTRIBUTION is an assessment of HOW MUCH OF THE OUTCOME WAS CAUSED BY THE CONTRIBUTION OF OTHER PROJECTS OR SERVICES. Eg. a new cycling scheme finds a significant decrease in carbon emissions. However a congestion charge was also introduced and an environmental awareness programme began, so you have to ATTRIBUTE some of the outcome to their contribution. 41

42 STAGE 4.3 DROP-OFF Remember in section 3 we considered how long we think each outcome will last DROP-OFF is an assessment of the REDUCTION IN THE INFLUENCE OF YOUR INTERVENTION IN A LONG TERM OUTCOME. Only complete this for outcomes that last LONGER than ONE YEAR. Eg. Your intervention is a training programme which helps unemployed people return to work. In the first year you could justify that your intervention played a very large part in helping them get a job, However if they are still employed after 2 or 3 years then that may be due more to their own commitment, development of on-thejob skills and networking. You can use a standard approach eg. 50% drop in Y2, 20% in Y2, 20% in Y3, 10% in Y4. Eg. an outcome of 100% that lasts for 3 years and drops off by 10% per year would be 100% in Y1, 90% in Y2 and 81% in Y3. 42

43 4.4 CALCULATING YOUR IMPACT & SROI 43

44 NEXT STEPS I will type up your Impact Maps to build in your work from today I will these to you ASAP with some suggestions for development Before the next session please consider these comments and develop your map further if necessary Please also give some thought to Stakeholder Consultation we will plan this together in the next session but please think about which of your stakeholders: Would be thoughtful and give a range of views unexpected feedback is good! Would be willing and able to comment on your analysis Would be available during the time you have available Think about past participants rather than current ones if possible Consider asking funders, partners and non-users for their views Remember you don t have to meet them in person an /phone conversation is fine Try to get a representative sample eg. cross age/gender/type You don t have to use/show the Impact Map if you don t want to think of other (creative!) ways of presenting and discussing the contents 44