Housing Providers : Measuring Their Impact

- More Questions Than Answers -Larry GoldFinance Director (Curious Sceptic)Trafford Housing TrustJune 2012

CONTEXTTHT: STATISTICS

TMBC Stock Transfer

LSVT / RSL / RPCharity

Company Ltd by Guarantee

Turnover £45m

Homes9,000

Staff 350

Loans£145m

Assets£1bn

Customers14,500

A: Err…. Why??

CONTEXTTHT: THE INTERNAL DEBATE

FD

Q: Do we need impact assessment?

CONTEXTTHT: THE INTERNAL DEBATE

The Accountants:

Like Dislike

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 lossFurniture: Recycling: £? pa lossInvestment 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 ProjectProject Optimisation

Q: Go / No-Go?

Internal

Forecast SROI

Multi ProjectQ: Which is the

best investment?

Internal

Evaluation SROI

Single ProjectQ: What degree of

success?

Internal

Evaluation SROI

Whole BusinessQ: How valuable is

this business?

External

Annual Indexof

Social Value

Daily Indexof

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?

FUN

DER

S

OR

GA

NISATIO

N

STAKEHOLDERS

BanksInstitutionsCommissioners? Donors

Board/ / TrusteesManagersStaff? Volunteers

Tenants / Residents CustomersPartners

Beneficiaries RegulatorsFor the sector as a whole (CIH / NHF) - Government

(local / central), large Investment Institutions and the Media are key

It’s all about influencing

Indirect Beneficiaries?

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