Housing Providers : Measuring Their Impact - More Questions Than Answers - Larry Gold Finance Director (Curious Sceptic) Trafford Housing Trust June 2012

CONTEXT THT: STATISTICS TMBC Stock Transfer LSVT / RSL / RP Charity Company Ltd by Guarantee Turnover£45m Homes9,000 Staff350 Loans£145m Assets£1bn Customers14,500

A: Err…. Why?? CONTEXT THT: THE INTERNAL DEBATE CEO FD Q: Do we need impact assessment?

CONTEXT THT: THE INTERNAL DEBATE The Accountants: LikeDislike Rules Clarity Precision Objectivity Quantitative Techniques Empirical Evidence Fluffy Talk Grey Areas Subjectivity Ambiguity Qualitative

WHY THT IS INTERESTED IN MEASURING IMPACT Why now? Community Panels c.£750k investment p.a. (30 yrs = >£22m) Social Enterprises CleanStart: c.£50k pa loss Furniture: Recycling: £? pa loss Investment Capacity c.£22m available Regulation Focus on VfM Are we doing all we can with what we have?

FD View: Deliver overall ROI 7% CEO View: We have choices  We need new Decision Tools £22m Investment... - Property Development - Business Ventures - Community Investment - Other WHY THT IS INTERESTED IN MEASURING IMPACT

“Share your scepticism ….. Absorb the enthusiasm!” FD: From Sceptic to Curious Sceptic CEO: From Believer to Evangelist A: Err…. Probably! Q: Do we need impact assessment? WHY THT IS INTERESTED IN MEASURING IMPACT

WHY THE SECTOR SHOULD BE INTERESTED IN MEASURING IMPACT Strategic Imperative –A sound strategy in the absence of knowledge? Regulation –Regulation >> Opportunity >> Diversity >>> RISK –Requirement to demonstrate VfM Austerity & Choice –More choice with Same / Reducing resources Pay By Results –The New Way

Funding & Investment –Compete / Attract / Assure / Retain Customers –Compete / Attract / Assure / Retain Sector Reputation –Opportunity to Improve Responsibility –We have a Responsibility to ‘Tell The Story’ and be open to scrutiny WHY THE SECTOR SHOULD BE INTERESTED IN MEASURING IMPACT

VALUE OF A COMMON APPROACH / LANGUAGE Forecast SROI Single Project Project Optimisation Q: Go / No-Go? Internal Forecast SROI Multi Project Q: Which is the best investment? Internal Evaluation SROI Single Project Q: What degree of success? Internal Evaluation SROI Whole Business Q: How valuable is this business? External Annual Index of Social Value Daily Index of Social Value

VALUE OF A COMMON APPROACH / LANGUAGE Efficiency –Collective understanding –Synergy –No need to ‘reinvent the wheel’ –Provides short cuts in debate Decision Making –Create debate / challenge –Assists funders / investors in making decisions –Allows those less involved / informed to participate in decision making Responsibility –Meets values of openness / transparency

WHO ARE THE KEY AUDIENCES? FUNDERS ORGANISATION STAKEHOLDERS Banks Institutions Commissioners ? Donors Board/ / Trustees Managers Staff ? Volunteers Tenants / ResidentsCustomersPartners BeneficiariesRegulators For the sector as a whole (CIH / NHF) - Government (local / central), large Investment Institutions and the Media are key It’s all about influencing

QUESTIONS / CHALLENGES FOR THE SCEPTIC Ambition –Are we being too ambitious – aim high… –Is it possible to develop a simple, robust, accessible, lite approach? –How long will this take? Funders are not ‘fluffy’ –How much stall will funders really put by the non-financials? Communication –How do I sell the message into the business? –How do we sell the message to the external audiences?

Competing Views –How do we reconcile the many approaches being developed? –How will we regulate our approach? Choices –Will the benefits outweigh the costs involved in measuring / reporting? –Would my time be better spent on other things? QUESTIONS / CHALLENGES FOR THE SCEPTIC

THE SCEPTIC’S JOURNEY As always…It’s better to be at ‘the party’ shaping it, rather than having it thrust upon us! The sector is very interested The common language / approach makes sense What would it look like??? The key audiences - just about everyone! And as for the sceptic….

QUESTIONS & ANSWERS