social value briefing - local government association · 3 the social value portal –overview •...

LGA

National Construction Conference 2017

Social Value

Briefing

Where Community Speaks and Business Listens

We provide an on-line solution that delivers:

Measurement An accounting methodology for measuring

social value

Procurement A procurement platform for Social Value to

unlock value in your supply chain

Management Ongoing target setting and contract

management

Reporting Non-financial and financial reporting of social,

economic and environmental performance

When the CEO asks….

‘What value do we bring to society?’

……we provide the answer

2 The Social Value Portal – Brent Council Social Value Briefing

Who are we?The Social Value Portal is a social enterprise providing an on-line solution for the measurement, procurement and reporting of social value as per the Social Value Act

What is the Social Value Act?

“An act to require public authorities to have regard to economic, social and

environmental well-being in connection with public services contracts and for

connected purposes.”

Applied well, the Social Value Act will….

• Promotes businesses CSR

• Could deliver an additional +20% Value

• Deliver additional growth, skills, jobs

and other community benefits

• Empowers communities to get involved

3 The Social Value Portal – Overview

• By 2020 Business Rates (retention) will become the main income for Councils;

• As budgets are cut it is essential that the ‘pubic pound’ goes further

• Business WANTS to do more but there needs to be an incentive

Size of prize across the UK is significant:• £8bn in procurement• £3.6bn in capital projects

The Business CaseThere is a clear business case for embedding social value and even allocating a

dedicated resource to its delivery

4 The Social Value Portal – SMBC Presentation

The Best Practice Social Value Task Force

6

AGMA

Birmingham City Council

Cabinet Office

Coventry City Council

Halton Borough Council

Local Government Association

London Fire Brigade

NHS Halton CCG & LA

ORBIS (Surrey & East Sussex County Councils)

Supply Chain Future

Social Value Portal

Willmott Dixon Foundation

Business Counts

7

Society: Creating Stronger, Healthier Communities

Environment: Protecting and Improving Our Environment

Promoting Social Innovation

We can…

We would like…..

…….Business replies

Public sector asks…..

…and Community gets

The Social Value Maturity Index <SVMI>

Policy & ScopeInternal ManagementMeasurement: Themes, Outcomes and MeasuresCommissioningProcurementMarket Engagement and PartnershipsContract ManagementCross Sector CollaborationReportingGovernance and Accountability

8

NON-COMPLIANT

FOLLOWER

MATURE

LEADER

INNOVATOR

The <SVMI> is built around a journey of implementing 10 key organisational themes

9

Level Leaders Innovators

OverviewSocial Value embedded into corporate strategy and have comprehensive frameworks for management and delivery

Social Value is a core operational metric, integrated into all directorates/departments and activities with regular reporting against targets

Policy & Scope

1. SV requirements applied to Supplies, Works and Services above AND below OJEU thresholds2. Requirement are tailored to reflect size and scope of contract3. SV embedded into Frameworks where appropriate

1. SV Requirements applied to Grants, Supplies, Works, Services AND Planning. 2. Innovators should encourage work done outside contracts, e.g. through time banks, charter accredited organisations.3. All frameworks are covered4. Specific policies in place on stakeholder involvement, materiality assessment and valuation

Internal Management

1. Individual named officer(s) given responsibility for reporting to Board/Members councillor, managing and delivering social value across procurement and commissioning2. Relevant officers are provided with SV training and resources to implement SV strategy.

1. Expectation that all officers take responsibility for managing and delivering social value. 2. SV used as a KPI to assess progress at relevant Cabinet or Scrutiny Committee meetings

Measurement: Themes, Outcomes and Measures (TOMs)

1. Measure social value in BOTH non-financial AND financial terms against Outcomes and Themes2. TOMs (including values) updated an annual basis with evidence and methodology to support3. Outcomes weighted systematically to Council and local priorities (i.e. targeting),

1. Measure social value in BOTH non-financial AND financial terms against Outcomes and Themes. 2. Financial weightings adjusted according to stakeholder feedback3. Processes in place to allow TOMs to be updated according to local community priorities (e.g. A Community Social Value Charter) 4. Other stakeholders and public sector bodies consulted in development of TOMs including health, education and emergency services

•Ratings

•l Incomplete/Non Compliant

•l Follower

•l Mature

•l Leader

•l Innovator

The Social Value Maturity Index <SVMI>

SRAW POLL: Where are you and where do you want to be?

11 Social Value Task Force Self Assessment Toolkit

Level Description Now Future

Compliance driven

Doing just enough to meet the conditions of The Act

Mature Taking a pro-active approach to integrating Social Value into procurement and commissioning

Leader Social Value embedded into corporate strategy and have comprehensive frameworks for management and delivery

Innovator Social Value is a core operational metric, integrated into all directorates/departments and activities with regular reporting against targets

12

Visit the Task force page: http://socialvalueportal.com/social-value-taskforce/

Get involved: [email protected]

Use the SVMI and Share your assessment and findings

http://socialvalueportal.com/social-value-taskforce/

mailto:[email protected]

Measuring Social Value

c

How do we maximise value?

ACTION

DIRECTWORKPLACECUSTOMERSPRODUCTSASSET …

INDIRECTLOCAL COMMUNITYSOCIETY …WHAT IS LOCAL?

HOW DOES VALUE CHANGE WITH DISTANCE?

LOCAL ECONOMYLOCAL COMMUNITY

LOCAL ENVIRONMENTWhat are the relevant boundaries?

WHAT IS A PRIORITY?

HOW DOES VALUE CHANGE OVER TIME?

HOW DO WE VALUE DIFFERENT PRIORITIES?

SUPPLY CHAIN

HYPERLOCAL

LOCAL

GLOBAL


Social Value is about Impact on Society and the Individual

Putting a financial value on outcomes is another way of comparing the benefits arising.

ON THE ONE HAND….

• Happy family• Good education• Good CV• No criminal

record

ON THE OTHER HAND….

• Troubled family• Left school at 16,

no GCSEs• Gang member• Petty criminal

record, likely to get worse

Context and Cultural Background

£2,200 £34,000

NEW JOB

Which is worth more and from what perspective – society or the individual?


Measurements based on the relevant local Social Value Policy with each ‘Measure’ allocated a value

Theme Outcome ValueMeasures Units

No. Young Offenders

No. Voluntary hours

Spend in local supply chain

Reduced CO2e

Employing those who face greater challenges to work

Training opportunities

Local supply chain school

Supporting local 3rd

sector providers

Reduce waste to landfill

Reduced carbon emissions

No. people

No. hrs

£ spent

tCO2e

£34,840/per

£13.57/hr

Local Spend

£68/tCo2e

Total Social Value = Sum(Measures*Value)

Employment & Skills

Business growth

Community

Environment

How it works


Birmingham City CouncilTheme Example Outcome Examples of Metrics and Measures

Local Employment Increase Local Employment How many new jobs (Full Time Equivalent) will you create?

How many hours of voluntary work hours will you provide?

% of staff within 10 miles

Buy Birmingham First (Local Procurement)

Promote Buy Birmingham First

What percentage of your spend will be with suppliers within 10 miles of the point of delivery

% of spend with 3rd sector (Social Enterprises, Charities)

How many procurement opportunities posted on ''Find it in Birmingham''?

Partners in Communities

Support Community Resilience

How many schools supported through, governors, reading, mentoring, Career advice, CV writing

Private sector investment in communities

What value of spend with Social Enterprises?

Residents making socially responsible decisions

Number of community organisations supported

Good Employer Promote Fair Employment and Equal Rights

Pay the Living Wage (Y/N) to Employees servicing BCC contracts

Flexible working hours

Green & Sustainable Protect the Environment CO2 reduction (tCO2e)Number of individuals in Fuel poverty assisted with energy efficiency measures

Ethical Procurement Promote Ethical Procurement

% of suppliers audited on ethical practices

% of invoices paid within the terms of the primary contract.

18 The Social Value Portal - Overview

L&G Procurement in CrowthorneTOMs

Theme Proposed Outcomes Measures

Economy: Skills and Employment

Delivering local employmentLocal people employed on contract% local people employed on contract

Improving skills for local people

Number of weeks in aggregate spent on meaningful work placements (only those of 1 week or over) or on a Pre-employment course on the project

Number of training opportunities created or sustained (BTEC, City of Guilds, NVQ, HNC & Apprenticeships), Levels 2,3 or 4 (please specify how many at each level)

Number of people supported into work (e.g. CV advice, mock interviews, careers guidance)

Opportunities for disadvantaged people

Number of employees taken on who are long term unemployed (defined as people with continuous periods of unemployment extending for a year or longer)

Number of employees taken on who are not in employment, education, or training (NEET) and 18-24 yr. old

Number of employees taken on who are rehabilitating offenders

Supporting diversity Do you provide diversity training for your team and subcontractors

Economy: Promoting Local and Responsible

Businesses

Opportunities for Local Companies

Support for local SMEs and social enterprises, e.g. through expert business advice and guidance or "meet the buyer events" for local businesses

Total amount (£) spent in local supply chain through the contract

Opportunities for SMEs and Social EnterprisesTotal amount (£) spent with SMEs through the contract

£ spent with Social Enterprises

Society: Creating Stronger, Healthier

Communities

CVOs employed in the supply chainProviding business advice and guidance to CVOs

£ spent with third sector providers within your supply chain

Volunteering in the Community No hours volunteering time provided by staff to local Community

An effective and resilient third sector Charitable Fundraising/Donations: communities / local

Working with schools Contribution to education (Curriculum Engagement) including school visits


Better places to liveSupport to build more sustainable communities (e.g. by assisting with management of energy costs or energy efficiency improvements to homes)

Efficient use of resources Reduction against baseline of waste to land fill

Improving the climate and local environment Savings in CO2 emissions on contract (specify how these are to be achieved).

Sustainable Procurement

You have or are developing a Sustainable Procurement Policy. Please upload your policy here. No. of sub-contractors with ISO 14001

Promoting Social Innovation

Other measures that deliver social value

Other measures (hrs) - please describe any additional initiatives that you would like to make and hrs to be committedOther measures (£) - please describe any additional initiatives that you would like to make and £ to be invested

Delivering Social Value

Using the Social Value PortalUsers are given access to the Social Value Calculator to view/manage projects, or to enter data.


Cowen Avenue – Project Description

Harrow Council was looking to appoint a contractor to carry out refurbishmentsworks to 1-46 Cowen Avenue, an existing residential block arranged over 3no. Low-rise buildings constructed c. 1960, each comprising 4 storeys of multi-occupancyresidential accommodation (ground and floors 1-3), plus lower ground floor ofancillary space.

Key works include:

• Installation of external wall insulation

• Interior Works

• Mechanical and Electrical Works

Contract Value (Estimated) - £1.1m and £1.3m

Contract Term - 9 months

Harrow selected a new project at Cowan Avenue to run as the pilot study. The tender was run as an ‘open tender’ with no PQQ.


Cowan Avenue – Evaluation CriteriaHarrow selected a new project at Cowan Avenue to run as the pilot study. The tender was run as an ‘open tender’ with no PQQ.

Quality / Technical Area weighting Quality Weighting

Project Examples 30%

30%

Delivery of the Specified Requirements

30%

Programme of Works 10%Resident Communication 10%

Key Performance Indicators

10%

Health & Safety 10%Total for

Quality/Technical100%

Quality Threshold – 20% out of the available 30%

Social Value (via the Social Value Portal) *

Area weighting SV Weighting

Commitments 70%

10%Supporting Method

Statements30%

Total for Social Value 100%

Commercial - Cost Area weightingCommercial Weighting

Cost submission 100% 60%Total 100%


Cowen Avenue – Tender Submissions


Case Study – 245 Hammersmith Road

• Materials Sourcing and Manufacture

• Construction

• Occupation

• Building Management

• Occupier

Working with BCO and Legal and General to measure the Social Value accruing from a building and to then use this work to develop a standardised approach to Social Value

What is the Social Value that a development may bring during its full lifecycle?

How should social value be measured?

How could the Social Value be used in S106 agreements?


We have developed a range of Metrics and Measures with LBHF that will form the basis of our measurement solution

Themes, Outcomes and Measures

Materials and Manufacture Construction Occupation

For example:Materials sourcing;Jobs and employment;Embodied carbon;CSR Programmes.

For example:Local employment;Environmental impact;Local business support and spend;Local employment.

For example:Building Management ServicesLocal employment;Community outreach programmes;Local spend;Carbon, energy, water and waste.

Building Life Cycle


Analysis was based on the additional social value (SVA) that could be added if stretch targets were met

Social Value Add (SVA)

What did we measure?

• Business as Usual (BAU)

• Stretch Target

• Social Value Add (SVA) – The potential additional social value accruing from the project that arises as a result of the approach taken by the developer, its contractors and the tenants.

Item Materials Sourcing Construction Occupation

Example:

Local sourcing

BAU 10% sourced locally (S106) 15% Local Employment 5% local employment

Stretch 20% sourced locally 25% Local Employment 20% local employment

Example: Embodied carbon

BAU 0% embodied carbon savings

0 positions for people with disabilities

0 hrs/person/year Community Engagement

Stretch 20% embodied carbon savings

2 positions for people with disabilities

20 hrs/person/year Community Engagement


What did we measure?

• Business as Usual (BAU)

• Stretch Target

• Social Value Add (SVA) – The potential additional social value accruing from the project that arises as a result of the approach taken by the developer, its contractors and the tenants.

Theme Outcomes

Economic ConsiderationsJobs, Growth and Financial Resilience

People have the skills to find workAll young people have opportunities to achieve their ambitionsLocal Business and Charities are supported to be more resilientPeople achieve financial security

Social ConsiderationsSafer and Stronger Communities

All LBHF communities feel they are valued and are part of their neighbourhoodsCrime reducesPeople are healthier, for longerVulnerable children and adults get support and protectionOlder, disabled and vulnerable people can live independently and have control over their livesLBHF residents have more opportunities for better quality homesAn effective and resilient 3rd sector

Environmental ConsiderationsCleaner Streets and Green Neighbourhoods

People live in, work and visit our vibrant and creative town centresPeople take greater responsibility for their neighbourhood

Social Value Add (SVA)Social Value has been assessed through the ‘looking glass’ of the local authority


Results – Social Value Added (SVA)Key findings show that S106 is not the most effective way of extracting (social) value out of a development

Net Internal Area 263,804 sq.ft

Development Costs £91.5m

Social Value Add

Materials Sourcing £4.4m

Construction £2.1m

Building Management £0.91m/annum

Occupier £9.3m/annum

Section 106 £1m (1.1%)

7.1%

£9m10%

£93m 100%


Pilot Project: Balfour Beatty - Highways Maintenance and Lighting

32

Question (selected) Actual NumberActual Social

Value

Number of weeks of meaningful work placements 11 £8,800Total number of weeks that people attend a pre-employment course on the project

16 £12,800

Number of training opportunities created or sustained Level 2 (no. days worked)

880 £6,090

Number of existing or new recruits and subcontractors attending diversity training

50 £1,750

Number of local people employed on the contract 171 £0No. of days worked by NEETS 800 £52,504Number of meet the buyer events held 1 £1,000Amount spent with SMEs £17,129,953 £0% of total contract value spent with SMEs 41% £0Amount spent in LOCAL supply chain with SMEs (based on LM3) £24,687,781 £24,687,781% spent in LOCAL supply chain with SMEs 59%Number of hours of expert advice provided to third sector providers

24 £840

Number of hours of volunteering time provided to local Community

80 £1,200

Number of Community Stakeholder Plans created 2 £1,000Voluntary time dedicated to the creation or management of green infrastructure

112 £1,680

Reduction of waste to landfill, against a reasonable long term baseline

77653 £6,678,158

Social Innovation (Argonauts programme) 188 £5,370Total £31,491,212

Wellbeing and Health

£10,813

Managed Growth £24,765,592

Stronger Communities

£66,614

Better Value £6,680,358

Social Innovation £5,370

Total £31,596,715


Question (selected)Actual

NumberActual Social

ValueNumber of new jobs created in Solihull 2 n.a.No of training/apprenticeship opportunities created/sustained Level 2

2 £3,046

No of training/apprenticeship opportunities created/sustained Level 3

2 £4,728

Number of Taster Days for people over 16 (no. days) 30 £5,970Number of meaningful work placements provided (minimum 1 week)

8 £7,960

Number of people over 24 supported back to work 50 £9,950Number of young people (16-24) supported into work by delivering employability support

500 £99,500

Number of school visits organised and contribution to curriculum improvement

400 £12,000

No hours volunteering time provided to local Community (e.g. clean up initiatives, painting projects)

100 £1,300

Support given to vulnerable people to help them live independently (e.g. life skills, financial management)

350 £4,750

Support households to better manage their household budgets e.g. debt management advice, digital inclusion, energy switching (no.of households)

50 £25,000

Wellbeing and Health £25,000Managed Growth £162,304Stronger Communities £27,307Better Value £0

Total £214,611

Pilot Project: Barclays - Financial Services

The Opportunity – Solihull Metropolitan Borough CouncilThe Social Value Act provides unique opportunity to develop Social partnerships with Business to help

deliver social value services that are relevant and proportional

Cou

ncil P

rocu

rem

ent

(£1

50

m)

GV

A (£

5.3

bn)

20%

0.1%

£1

50

m£30m

£5m

Deve

lop

ment (7

00

m)

20%

£140m

Social Value Opportunity

£175m/yrAnnual

Spend

Brent Council


The Crowthorne project so far..

• We have developed a Social Value Policy and strategy based on top-down local needs analysis

• Agreed a set of provisional Measures against which value is to be assessed

• SV is being integrated into all procurement for the project – a 15% weighting has been agreed

• Total Social Value will be measured as the site is developed

• Started consultations with the Community to develop the UK’s first Community Social Value Charter in Crowthorne

35

Integrating Social Value into Procurement

Social Value for Legal & General

The Social Value Charter

36


Granular

MEASURES REFLECT NEEDS

This is where the COMMUNITY comes in.

Measures become:

Deliverable

Communities at the centre: rooting Social Value delivery in Community needs

andSocial Value for Legal & General

Crowthorne Community CharterWorkshops

FAITH GROUPS #1: November 2016Crowthorne Churches Together• Challenges • Opportunities • Commitment

FAITH GROUPS #2: January 2017Crowthorne Churches Together• Results so far• Next steps

HealthDr.’s Surgeries


BUSINESS GROUPSTraders

EducationEdgebarrrowWellington College

Voluntary Sector

Crowthorne Community CharterSurvey – January Report: Environment / PROBLEMS

What do you think are the IMMEDIATE PROBLEMS

for the local environment? What annoys you?

PERCENTAGE OF RESPONDENTS CHOOSING EACH OPTION

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Too much noise, pollution and congestion from traffic

We need to preserve our green space

I cannot rely on public transport

The high street is always full of big trucks

There are not enough places for children to play

There is nowhere to park neat the High Street

The town looks scruffy, it needs repairing

The high street is messy

The town pavement needs repairing

There are no major problems

My street is always covered in litter

There is a real problem with graffiti

Not Applicable

Other

Summary and Next Steps

ENGAGEMENT

Seek buy in from Members and set the targets using SVMI

SET PRIORITIES and TARGETS

Understand and agree priorities, agree scope and set targets

THEMES, OUTCOMES and MEASURES

Agree a common set of TOMs to be used across all contracts

BUILD CAPACITY

Engage with your local businesses and people build capacity and knowledge ahead of time

GOVERNANCE and RESOURCES

Put appropriate governance and resources in place to deliver effectively and to report progress

BE

BOLD(To be Great…!)


Website - www.socialvalueportal.com

Email - [email protected]

This document is confidential and prepared solely for your information. Therefore you should not, without our prior written consent, refer to or use our

name or this document for any other purpose, disclose them or refer to them in any prospectus or other document, or make them available or

communicate them to any other party. No other party is entitled to rely on our document for any purpose whatsoever and thus we accept no liability to

any other party who is shown or gains access to this document.

The Social Value Portal is a Social Enterprise Limited Liability company registered in England and Wales. Postal address 18 Holborn , London, EC1N

2LE.

Our Vision

We want to become ‘the place’ where business comes to learn about social value; understand public sector targets; listen to community needs and meet

third sector providers

Our Mission

To promote better business and community wellbeing through the integration of Social Value into day to day business and the uptake The

Social Value Act

Our Values

Equality - Transparency - Rigour - Commitment

http://www.socialvalueportal.com/

mailto:[email protected]

social value briefing - local government association · 3 the social value portal –overview •...

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