A SIMPLE approach to assessing Social Impact in Third Sector Organisations

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1 SimpleEUROSTILE 22/1/08 21:30 Page 1 A SIMPLE approach to assessing Social Impact in Third Sector Organisations

2 SimpleEUROSTILE 22/1/08 21:30 Page 2 Communicating added value Benefits to assessing social impact One of the major challenges facing social enterprises and other third sector organisations is communicating the benefits they deliver. As opportunities increase for social enterprises to contract with private and public sector organisations, it has become necessary to find ways of translating this positive effect into demonstrable data to support bids, tenders and funding applications. The SIMPLE approach to social impact assessment combines internal strategic review with outcomes based assessment to help managers of socially motivated businesses to visualise where and how they make positive contributions. By selecting appropriate measures with which to collect quantifiable data users are able to collect and communicate evidence of positive social benefit. One approach, developed under the SIMPLE programme, is allowing a diverse range of social enterprises and other third sector organisations to do just that. In an operating environment which is often target driven, the need for social impact measurement can be obscured or unrecognised. The work of social enterprise, however, is often much broader than this. As a communications tool the SIMPLE framework gives social enterprises the ability to express to a variety of audiences how they add value. Furthermore, as a business planning tool, the SIMPLE framework allows users to map out where impact is likely to occur in the future. Assessing social impact creates an opportunity to look beyond the measurement of performance in terms of achieving baseline targets, to a consideration of the achievements of social business in terms of the wider positive impact on individuals, communities and the environment. As more and more contracting and financing opportunities become reliant on the communication of outcomes, this form of social impact assessment will give social enterprises a competitive edge. Visualising positive contributions The SIMPLE approach to social impact assessment is really a framework that helps managers of socially motivated businesses to visualise where and how they make positive contributions to society. They can select appropriate measures with which to collect quantifiable data and then use that data to put their efforts into the broader context. The SIMPLE approach understands that while you may not be able to prove your social impact, you can collect evidence of it as it occurs in order to illustrate the social benefits your work creates. Benchmarking It is important that data collected and used in monitoring and evaluation of social enterprise can eventually be compared and benchmarked against other providers. The benefit of benchmarking is that it can create a process of continuous improvement for social enterprises and it is a particularly robust method of measuring effectiveness in areas where there is little material available for direct comparison. It is hoped that social enterprises in similar sectors or industries will share their impact indicators to aid this process. 2 3

3 SimpleEUROSTILE 22/1/08 21:30 Page 4 The SIMPLE Framework Assessing social impact is a staged process. Users must first gain a wide-view understanding of the motivating factors, or drivers, of social impact. The diagram below shows how the SIMPLE approach defines these stages. Next, appreciating the processes through which everyday activities eventually result in positive benefits is essential in order to be able to find and implement appropriate, quantitative measures. Collecting data against these indicators then provides statistical information for use in evidencing your social impacts. SCOPE IT SCOPE IT Organisations undertake a strategic review to thoroughly assess the various factors driving their organisation s social element. Taken into account are organisation mission and objectives, stakeholder priorities, the external environment and internal drivers MAP IT Mission & Values External drivers Internal drivers Activities MAP IT Having identified which activities relate most closely to their intended impacts, organisations map out the relationships between their everyday work and the short, medium and long terms effects of carrying that out TRACK IT TRACK IT Assigning Key Impact Indicators to outcomes allows organisations to generate ongoing, quantitative data to represent their impacts EMBED IT EMBED IT Only by ensuring this procedure is followed rigorously and data collected on a regular basis will social impact assessment prove to be a worthwhile exercise. Hard wiring the framework at all levels of an organisation is an essential part of the process and allows for constant review and improvement Stakeholders TELL IT TELL IT Once impact data is collected this is put into context by identifying the most appropriate types of comparison with which to highlight social impacts and make them readily understood by a variety of audiences Process change 4 5

4 SimpleEUROSTILE 22/1/08 21:30 Page 6 About the SIMPLE programme Social enterprise experience The SIMPLE training programme, delivered in partnership by Social Enterprise London, The University of Brighton Business School and Focus to Work CIC, trained 40 social enterprise organisations from the South East of England in how to use a social impact assessment framework. The SIMPLE framework helped participants to gain a Level 5 Vocationally Related Qualification in Social Impact Assessment. The three day training courses began in May 2007 and ran until November the same year. On completion, participants submitted a case study outlining how they intend to use social impact assessment in their own organisations. These served a dual purpose, both as assignments for the VRQ certificate and also as the basis of an ongoing social impact assessment strategy. The SIMPLE programme was co-financed by the South East England Development Agency and the European Social Fund. One participant, Pat Swell, Strategic Director of Milton Keynes Theatre and Gallery Company, has recently incorporated the lessons she has learned from the SIMPLE training into a feasibility study for a forthcoming site development. Pat said: The SIMPLE model is an excellent analytical tool that is easy to apply. It helped me to express complex ideas with clarity so that a variety of stakeholders could see at a glance how our work can deliver their goals. It does what it says on the tin! Skillsgateway CIC is a construction training centre in Chatham, Kent. Angie Vaney, the Centre Manager, has attended the SIMPLE programme. Angie has used the lessons learned from SIMPLE in a number of ways. Before doing SIMPLE I had very little understanding of social enterprise. I was new to the concept having worked in mainstream education for many years. SIMPLE has helped me to focus my attention and our resources on delivering what really matters to Skillsgateway. Those who fund the construction training at Skillsgateway are interested in the number of new candidates, retention levels, successful passes and progressions on to further training and employment. While these are important outcome measures, the Skillsgateway has an additional range of information it needs to gather to show it is working within its core values. Angie says: SIMPLE has helped me to capture and translate soft outcome data and present it in a way that is meaningful to staff, directors and other stakeholders. I have also started to use it in my strategic planning as it has made what we are trying to achieve, how we are going to do it and how we will know when we have much easier to define. 6 7

5 SimpleEUROSTILE 22/1/08 21:30 Page 8 The SIMPLE Approach to assessing Social Impact Universally applicable to all socially motivated businesses Effective in business start up and strategic planning Assists procurement and funding opportunities Allows the translation of soft outcomes to quantifiable data Helps to identify key areas of performance for social enterprise For more information on the SIMPLE approach to social impact assessment please contact Social Enterprise London on or Focus To Work on The SIMPLE programme was co-financed by the South East England Development Agency and the European Social Fund