measuring value: social return on investment kate mulley head of policy and research action for...
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Measuring value: Social Return on Investment
Kate Mulley Head of Policy and ResearchAction for Children
Building a rich evidence base
Imperative of evidencing our impact:• Feedback and testimony• Case file analysis • Outcomes Framework• Inspections• Evaluation• Research projects• Cost Benefit Analysis and Social Return on
Investment (SROI)
Why use SROI analysis?
• The pressure on the public sector to show ‘value for money’ continues to grow.
• SROI makes it possible to measure a far wider range of outcomes than conventional measurement tools.
• This enables public sector commissioners to more accurately demonstrate the value of their projects.
SROI: the theory
• Social Return on Investment (SROI) is a process of understanding, measuring and reporting on the social, environmental and economic value created by an organisation
• It puts financial value on important impacts identified by stakeholders that do not have market values.
• It assists in understanding and managing the impacts of a project, organisation or policy.
(Net present value of benefits)
(SROI) = _________________________
(Net present value of investment)
SROI is based on seven principles
• Involve stakeholders• Understand what changes• Value the things that matter – stakeholder
perspectives • Only include what is material• Do not over claim • Be transparent • Verify the result.
Calculating SROI
• Setting parameters and impact map– Create framework for analysis– Identify stakeholders– Agree objectives
• Data collection– Identify indicators (including financial proxies)– Mapping and evaluating outcomes
• Model and calculate SROI– Account for displacement, attribution and
deadweight• Report
Backing the Future: why investing in children is good for us all
Imagine an overflowing bath, what do you do? Do you start mopping up or do you turn off the tap?
Backing the Future: a two year research project with the new economics foundation to – capture the benefits of universal and targeted services
that promote wellbeing– calculate the longer term cost savings of more
preventative and early intervention approaches – provide national and local governments with
recommendations to take action
Key findings: broader economic analysis
• An investment of £191 billion in targeted interventions will deliver a net return of £269 billion.
• If the Government invests in targeted interventions, universal childcare and paid parental leave, a saving of £880 billion would be made over 20 years – compared with the £4 trillion cost of business as usual.
SROI applied in three Action for Children Services
• Action for Children’s East Dunbartonshire Family Service– Short-term, focused and flexible support for children,
young people and families in crisis• Action for Children’s Family Intervention Team/5+
Project, Caerphilly– Early intervention service for children, young people
and families with recently emerging emotional or behavioural problems
• Action for Children’s Wheatley Children’s Centre, Doncaster– Preventative universal services, more specialised
services for referred children and parenting courses
Assessing the benefits
• For every £1 invested annually in Action for Children’s targeted services designed to catch problems early, society benefits by between £7.60 and £9.20
• For every £1 invested in an Action for Children Children’s Centre, a forecast social return to society of £4.60 is expected to generated.
• Full detail in reports on our website
Common strands
• Use of relationship over time, including outreach, to work successfully with the most vulnerable and excluded
• Commitment to both intensive and long-term support where necessary
• Flexibility to provide services to meet need through intensive contacts. Continuum of support
• Sound basis in safeguarding principles and procedures• Commitment to ensuring the achievement of qualitative
outcomes over and above success in meeting timescales and other process measures
• Stable staffing within services albeit contracts are often too short-term to guarantee services
Lessons and next steps
• Misconceptions – not just about the final ratio• Quality of data and proxies• Resource intensive• Flavour of the month – what next• Skill up our workforce
• An important tool to articulate value of the things we know are important but which are hard to quantify
• To be applied within the breadth of our evidence base
