Demonstrating Social Value -

Transcription

1 Demonstrating Social Value - Bill Knowles November 2013 } Duty to Consult be responsive & make provision Section 3(2) of the Local Government Act 1999 } Best Value re-defined consider social value Dept for Communities and Local Government Sep 11 } Commissioners currently required to consider social value at pre-procurement stage } Not yet obliged to - nor account for how it is generated } Statutory guidance to the Act needs to follow } Quality of Work indicators from previous contracts needed } Stop only sub-contracting Risk (i.e. hard to reach cases) to the third sector } 3 pages long!! } legal duty on public bodies to consider the social, economic and environmental wellbeing of an area in making decisions on commissioning and procurement. (LA contracts above 173,000) } consider only matters that are relevant to what is proposed to be procured and in doing so the extent to which it is proportionate in all the circumstances to take those matters into account } is about seeking to maximise the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves. 1

2 } Innovative providers In the past - told public bodies can t afford to commission differently Now - some commissioners realise they can t afford not to change! } Commissioners - Now have the justification to commission in ways that they have previously wanted to, but couldn t. Rather than choose a provider on cost, they are allowed to consider the best overall value they can secure for their local area. } Copy best practice e.g. Liverpool Council, Lambeth Council, Cumbria, Croydon } Govt s new Commissioning Academies } SEs engage positively in pre-procurement } Develop Social Value measurement tools 1. Define social value locally with procurement and providers - identify clear outcomes and measures that can then be applied in processes such as procurement and asset transfer. 2. Write a clear and transparent public document that can be used by public bodies to state how they are applying public value as commissioners. 3. In each individual tender process, be specific about how you will apply social value. Discuss social value prior to formal tender processes so that both commissioner and provider are clear. Source: Social Enterprise UK Dec 12 } Social Return on Investment (SROI) analytic tool for measuring and accounting assigns a monetary figure to social and environmental value e.g. training programme for ex-offenders every 1 invested, of social value created. } Social Auditing SIGMA Project 1. find out what is actually happening 2. comparing this with what should be happening 3. identifying needed changes and improvements 4. set up new SMART goals 5. verify by independent auditor 6. publish public document Social Audit OUTCOME defines the eventual benefit to society OUTPUT is measured step en-route to the outcome. POLICY AREA OUTPUT OUTCOME Work readiness Number of people attending a training course Reduction in number of people out of work Children s health % children vaccinated Improvements in overall health of children School readiness Early years school results Improvements in school attainment } CLIENT } M.A.N. } Means, Authority, Need } WIIFM } What s in it for me? Social Value } SUPPLIER } Features } WMT } Benefits 2

3 } Cost Benefit Analysis Provides a basis for comparing projects Compares total expected cost of each option with total expected benefits All methods seek to quantify or score Do the benefits outweigh the costs? Outcomes are the changes, benefits, learning or other effects that actually occur as a result of your activities They can be expected or unexpected, positive or negative So how do we define outcomes? Aims are the planned areas of change you are trying to achieve WHY you do you work Objectives describe the planned areas of activity by which you are going to achieve your aims WHAT you do To describe aims, use words like: To improve to reduce To increase to maintain To enable to improve To describe objectives, use words like: To provide to run To set up to support To offer Aims are the changes you are trying to achieve. They describe the difference you hope to make in the lives of the people or organisations you work with Outcomes are the ACTUAL changes, benefits, learning or other effects that actually occur as a result of your activities Results Focused Benefits additionality 3

4 Specific aim To increase local peoples participation in practical environmental activities To increase knowledge and understanding of environmental issues To increase recycling and reduce waste Exampleoutcomes benefits More and greater range of local people and businesses take part in practical increased number, range and quality of More people benefit from participating in Increased understanding of environmental issues increased understanding of environmental legislation Greater awareness of waste recycling and management More people and businesses buy recycled goods More people and businesses recycle goods and reduce waste Health Behaviour Attitude and self perception Knowledge and skills Circumstances Relationships Example outcomes benefits Reduction in physical health problems Improved time-keeping Increased self-confidence Increasing knowledge of benefits Clients get qualifications Increased communication skills Organisational strength Service providers Policy Sharing good practice Exampleoutcomes benefits More secure financial status Improved management structures Greater lobby strength New organisations established Change in funding policy Change in national policy More joint ventures between member organisations } Things that assess and monitor whether the expected outcome is occurring } They are clues to show what has happened, and can be qualitative or quantitative Type of project Rural action Outcome More and greater range of local people and businesses take part in practical environmental activities Example outcome indicator Number of individuals and businesses engaged in practical Profile of individual and businesses involved Types of activities engaged in Worklessness benefit payments Looked after children benefit payments Eviction Level 2 skills A & E visits See: New Economy working papers Social Value National accounts of Well-being Mental health Anti Social Behaviour incidents } Each outcome should have at least one indicator. Some outcomes may have many possible indicators Homelessness project Reduced exclusions Less conflict in the home Number of temporary exclusions Number of permanent exclusions Number of rows reported Perceived level of conflict Drug alcohol dependency Individual wellbeing Homelessness Family wellbeing Offending Children s well being Community wellbeing 4

5 Fiscal benefits Economic benefits Social benefits } Savings to the taxpayer e.g. Reduced health service, police & education costs Gains to } Individuals e.g. Increased earnings or } The whole economy e.g.increasedgva due to higher skills levels } Gains to society e.g. Improved health & wellbeing or increased community cohesion } Outputs Prescribed in the tender } Outcomes Requested & open } Demonstrate Evidence of outcomes Quantify, verify and then prove delivery Outcomes framework guidance needed from Commissioners Social value reported separately to fiscal and economic benefit Confidence Colour Population cohort Evidence base Monetisation Age of data Known OB grade coding data (engagement evidence analysis data correction impact) error Figs. Taken from Randomised Control Independent Current data 1 agency data +- 2% 0% Trial in UK primary analysis (< 1year old) systems International Figs derived from Practitioner 2 randomised Control 1-2 years old +- 5% -5% local stats primary analysis Trial Independent Figs based on monitoring of National Cost 3 national analysis 2-3 years old +- 10% -10% outcomes + robust Benefit framework in similar areas evaluation plan Practitioner Figs based on monitoring of Secondary 4 generic national 3-4 years old +- 15% -15% outcomes + robust national analysis analysis evaluation plan Figs based on Secondary evidence International 5 international from a similar type 4-5 years old +- 20% -25% analysis analysis of intervention } Simple score card: } e.g. Social benefit to make up 20% of score } Weighted scorecard: E.g. New jobs weighted higher than jobs saved } Costs versus benefits see graph from spreadsheet calculations 6 Uncorroborated Uncorroborated Uncorroborated > 5 years old +-25% -40% expert judgement expert judgement expert judgement 5

6 Prison Rehabilitation CBA } Cannot ignore OUTCOMES or results focused benefits others won t! } Need to understand what method your local Commissioners use } Have to be innovative in providing solutions } Need to think outside the box e.g. Payment by results; Social Impact Bonds; Social Venture Capital approach (Look at Social Finance, Impetus, Innovation Exchange, NESTA) } Engage with Commissioners Develop local social value measurement tools Identify and quantify social outcomes to match process } SE s establish measurement processes identify own Social Values and quantify (e.g. SROI, SA or C3S bespoke approach must suit commissioners) } Partnership bids to maximise social impact values 4. Evaluate the impact social value has made. 5. Keep a sustained focus on ensuring everyone has the same understanding of how you are using social value in your area and that it is being applied consistently. } Bill Knowles Consultant Director info@secod.coop website: Social Enterprise & Co-operative Development Limited } Cabinet office/new Economic Foundation (2009): A guide to Social Return on Investment } HM Treasury (2003) Appraisal & evaluation in Central Government } DWP (2010) The Department for Work and Pensions Social Cost Benefit Analysis framework Registered Address: Maia House, Bowness-on-Solway, Cumbria CA7 5A IPS (Co-operative) Reg. No R } Volunteering England (2007): Volunteer Investment and Value Audit 6