Measuring Social Value An Introduction to Social Return on Investment Analysis LoTAG Conference Monday 11 th May 2015 Hannah Marsh SROI Accredited Practitioner Kingfishers (Project Management) Ltd

Introduction What is Social Value? Public Services (Social Value) Act 2012 Social Value Act Review Social Return on Investment Analysis Case Study: Westminster City Council Sustainability Framework Summary

What is Social Value? Social Value SocialEnvironmentalEconomic

Public Services (Social Value) Act 2012 Introduced in January 2013 Contracting authority to consider how the service being procured may also improve the wider economic, social and environmental well-being of the relevant area Stands alongside existing public contract regulation Pre procurement stage Applies to Public services contracts and frameworks agreements for which Public Contracts Regulations 2006 apply For the ‘provision of services’ only (above relevant EU procurement thresholds)

Social Value Act Review Current thresholds still apply – €134,000 Positive impact where taken up Key findings: Awareness and take up of the Act Varying understanding Measurement of social value is not yet fully developed Key recommendations: Promote awareness and share best practice Promote better understanding of use in procurement Support measures to strengthen the framework for measuring social value Commitment from Government to pursue social value agenda

Social Return on Investment SROI is a framework based on social generally accepted accounting principles (SGAAP) that can be used to help manage and understand the social, economic and environmental outcomes created by your activity or organisation. SROI Network Attributes monetary value to represent social, environmental and economic outcomes Demonstrates the ‘change’ as a result of the activity Two types: Forecast and Evaluative

Seven Principles of SROI Involve stakeholders Understand what changes Value the things that matter Only include what is material Do not over- claim Be transparent Verify the result

Stages of SROI 6. Reporting, using and embedding 5. Calculating the SROI 4. Establishing Impact 3. Evidencing outcomes and giving them a value 2. Mapping outcomes 1. Establishing scope and identifying key stakeholders

Social Value Ratio Assess social value generated (impact) for each of the outcomes against the costs to deliver the project (inputs) £x of social value generated for every £1 invested Considers: What would have happened anyway? (deadweight) Who else contributed to the change? (attribution) Has the outcome displaced other outcomes? (displacement) Does the outcome deteriorate over time? (drop off) Total Impact Total Inputs SROI Ratio

Case Study: Westminster City Council Forecast Analysis of Employment and Skills Activity over the 8 year contract Link with WCC ‘Better City, Better Lives’ Vision Interviewed existing apprentices Pre and Post Survey and Focus Group for London Highway Academy of Excellence Candidates Supported with external research “I feel really lucky and privileged to have had this chance - the training and experience I have gained at Conway will help me to progress in my career to become a fully qualified electrician.” Conway WSP Apprentice

Case Study: Westminster City Council Gain work related skills to be more employable Increased confidence and feel in control of their life More disposable income and financial comfort 10 two year apprenticeships Increased confidence Gain work related skills to be more employable 7 work placements for local unemployed residents Gain work related skills to be more employable Increased confidence and self worth Secure apprenticeship Over 50 Westminster young people to complete a 2 week employment training programme Increased confidence in career path Gain work related skills to be more employable 9 School Children offered a two week work experience and 1300 school children to benefit from employer engagement through career fairs and school events

Case Study: Westminster City Council Over £820,000 social value generated through the Employment and Skills activity Every £1 invested in employment and skills activity under this contract will generate up to £2 in social value

Embedding Social Value: Monitoring Framework Establish a monitoring framework with four key purposes: Base Account Performance Evaluation Value Optimisation Publicity Identifies key information required for WCC and Conway to make informed decisions Splits framework into digestible parts, recognising limitations in resources, risks and capacity Initially pilot with Employment and Skills activity with an aspiration to capture wider social value longer term Manageable and proportionate framework that is appropriate for a variety of audiences to report on the social value being created Inform decisions that maximise this social value under this contract with a drive for continuous improvement

LoTAMB Sustainability Framework ‘Provide a robust and objective mechanism for identifying and assessing the sustainability of alternative construction, maintenance and renewal options for all transport infrastructure assets’ The management report and ongoing social value measurement proposed through the monitoring framework can support the principles within the Sustainability Framework The requirement to consider the impact of assets from an environmental and social perspective can be captured within the framework Provide a qualitative way to assess impact together with identifying who is affected and how impacts can be reduced

LoTAMB Sustainability Framework Examples Sustainability FrameworkHow is it captured within SROI Monitoring Framework? StakeholderOutcome Environment Use of local, environmentally friendly materials Local Environment Protect Aquatic life due to cleaning products that have no waterborne pollution for bridges and structures Amount of waste created, including the ability to disassemble and recycle assets Local EnvironmentReduced CO 2 emissions from recycling of asphalt Social Impact on quality of life (health, safety, enjoyment of surroundings, incidence of crime or fear of crime etc.) of users of the transport network and local communities WCC Residents Rapid response service reduces health and safety risks for residents (prevention of injury) Reduction in noise leading to increased satisfaction of living in local area Residents are safer when crossing the road or cycling locally leading to a reduced risk of serious injury on the road Economic Effect on economic prosperity, including employment and business competitiveness Apprentices Apprentices gain work related skills that help them to be more employable Apprentices get permanent employment after completing the apprenticeship Apprentices will have more disposal income

Summary Developing field with commitment from government to pursue Support commissioning authorities to meet Public Services (Social Value) Act 2012 Enables WCC to understand social value created and promote internally and externally Inform service delivery to maximise social value created Monitoring framework enables social value to be evaluated and embedded into contract Support LoTAMB Sustainability Framework