Social Impact Measurement What gets measured gets managed Benjamin Brown Senior Policy Research Officer Social Enterprise UK
The measurement of the impact of changes intentionally achieved in the lives of beneficiaries as a result of services and products, delivered by an organisation, for which the beneficiary does not give full economic value .. What is Social Impact measurement?
In God we trust, all others must bring data What gets measured, gets managed Edward DemingPeter Drucker Why measure social impact?
Prove Proving which is about demonstrating that change is actually taking place. Improving which refers to a continuous process of learning and growth, to support the social mission and also to sustain and grow the business. Improve Why measure social impact?
To tell the whole story of the companies performance To inform the strategic development of the enterprise To gain competitive advantage in a market where cutting costs constantly wont work To build social capital with clients To build reputation, and attract partners and investors To inspire staff To know if youre actually making a difference!
7 7 Every organisation no matter how small or new can measure its social impact
What does it look like? No universal standards. But lots of common ground: A clear story and theory of change Beneficiary perspective Evidence of outcomes Demonstration of change over time Linking learning back to organisation PM Training, Staffordshire
Theory of change OUTCOMEIMPACTOUTPUTACTIVITYINPUT What are the short/medium term changes that you are trying to effect What is the long term impact on the world What happened as a result of the inputs and activities The actual activity of the project The resources fed into the project (e.g. people, money, time, buildings)
Theory of change
Confidence in theory of change Where do you need to measure progress? HIGHLOW ULTIMATE IMPACT OUTCOMES OUPUTS ACTIVITIES INPUTS The lower your confidence in your theory of change, the more important it is to try to measure outcomes and impact.
To prove and improve: the 10 steps 1.Ask why evaluate? Know why youre proving and improving. 2.Clarify your key objectives, mission and values. Know where you are going. 3.Identify your stakeholders. 4.Map out the story (the hypothesis or theory of change) and describe the milestones. This is to determine the scope of an evaluation. 5.Choose your indicators wisely (be challenging but realistic about what you can measure.)
To prove and improve: the 10 steps 6.Make a plan. Choose a methodology how to go about measuring these things. 7.Collect the information: Identify existing records / Consult stakeholders / Pull together data 8.Analyse the information, and draw conclusions 9.Share it with others. 10. Learn from it and act on it.
Measuring your success: The tools There are around 25+ tools which can assist in the measurement of social impact Most prominent are: Social Accounting and Audit Social Return on Investment LM3 (Local Multiplier 3) Elvis and Kresse, London
Eco Management & Audit Scheme (EMAS) Local Multiplier 3 (LM3) Prove it! The Social Impact Measurement for local Economies (SIMPLE) Social Accounting and Audit (SAA) Social Return on Investment (SROI) Volunteering Impact Assessment Toolkit C3 Perform Customer Service Excellence (previously Charter-mark) European Foundation for Quality Management (EQFM) Fit for Purpose Practical Quality Assurance System for Small Organisations (PQASSO) Social Enterprise Balanced Scorecard 3 rd Sector Performance Dashboard Quality First Outcomes Star SOUL Record Measuring your success - tools
Social Accounting and Audit A principles based approach to measuring impact Focused upon stakeholder consultation Uses qualitative and quantitative measuring of performance against a set of social objectives Creates a set of social accounts, independently verified at audit Enables year on year comparison and supports benchmarking activity Does not agree that every action/outcome can assume a financial value
17 Social Return on Investment Principles based approach but focused upon financial/numerical assessment of performance Uses financial proxies to evaluate social benefit (agreed or created proxies) Creates a : ratio showing the social benefit achieved for every spent on services Less useful for internal and external benchmarking due to snapshot nature of ratio generated Can be used to estimate future return on investment 17
18 LM3 (Local Multiplier 3) Focuses on expenditure/financial impacts Money flows out of communities leakage Assess where money is spent and develop retention strategies 3 rounds of spending Local enterprises help money stick Examine supply chains - involvement of local firms Consider - social capital and consequent effects Tescopoly cloning High Streets
Questions for your organisation 1.Who owns evaluation? Who gets involved? (which stakeholders?) 2.What %age of overall budget is spent on it? 3.What are the internal barriers? (e.g. data, lack of senior buy-in, delivery staff) 4.Do you use an external agency? How would it help? 5.How can you hardwire it into activities?
What types of information help us prove & improve? Better Good Contribution (you helped) Attribution (you were responsible) Qualitative (stories and descriptions) Quantitative (numbers) Subjective (peoples perceptions) Objective (facts) Independent (just about you) Comparative (you in the context of others)
Useful points of contact Quality and Impact Toolkit for Social Enterprise - www.proveandimprove.org www.proveandimprove.org Social accounting and audit - www.socialauditnetwork.org.ukwww.socialauditnetwork.org.uk New Philanthropy Capital - www.thinknpc.orgwww.thinknpc.org Social Return on Investment - www.thesroinetwork.orgwww.thesroinetwork.org Inspiring Impact - http://inspiringimpact.org/http://inspiringimpact.org/ Key Social and Co-operative Performance Indicators www.cooperatives-uk.coop www.cooperatives-uk.coop Charities Evaluation Service - www.ces-vol.org.ukwww.ces-vol.org.uk NESTA - www.nesta.org.uk (standards of evidence)www.nesta.org.uk TRASI - http://trasi.foundationcenter.org/http://trasi.foundationcenter.org/