social return on investment (sroi) - a framework for benefits management
DESCRIPTION
The Social Return on Investment (SROI) process and framework is a robust structure for forecasting or evaluating services and projects where the direct financial return isn’t immediately obvious. Not-for-Profit organisations use it to demonstrate the value they create in terms of health, wellbeing, and the environment. For example, keeping people healthy requires investment up front; the resources that would have been spent on this population because they needed hospital care can be balanced out as a return on that investment. Increasingly commercial and for-profit organisations use SROI to measure the longer-term impact of their change programmes. This presentation gives an overview of SROI, and then illustrates with a number of case studies in health and social care.TRANSCRIPT
Social Return on Investment – a framework for Benefits Management in every arena
Hugo Minney PhDBenefits Management SIG
30th October 2012
WHY do we want it?
An example: Family drug rehabilitation services
• Why – challenges for funding, competition, other services closing
• What – an evaluation of current, management tool to make decisions about future, seek further funding, open new services
• How – SROI framework, someinternal interviews some independent consultant
SROI – When do you need it?• Where profit isn’t the driving factor• Putting a realistic (and tangible) value on what
are traditionally “soft” benefits• The Stakeholder view (“a benefit is something
that a stakeholder perceives to be of value”)• Rigor and repeatability – a robust approach
SROI – in the commercial environment
• Secondary and tertiary effects where primary effects don’t yield cash
• Robust process for benefits management which is broader than simply financial
• Information to make decisions which will maximise benefits
And CSRWhy do people do Corporate Social Responsibility?•Marketing (especially those with a reputation to repair)•Staff retention and recruitment•Useful corporate skills: decisions on an evidence-base, teambuilding, goal setting•Making a difference to your community – and proving it
Measuring benefits• First stage benefits – financial (money saved) and
non-financial (a number, but not bankable)• Second stage benefits – a change that causes a
change that can be quantified• Third and fourth stage – can be an estimate,
often real money saved (bankable, but sometimes by someone else)
When do you use it (during a project or programme) ?
• Project inception – the idea and the business case
• Project delivery – make the right decisions when obstacles occur
• Handover – clarity of expectation, reinforcing the business case
• Service delivery – to make the right decisions
Social Audit is not the same thing
• Social Audit assesses how well an organisation lives up to its ideals
• SROI evaluates a project or service in terms of value for money and to help make management decisions
WHAT is SROI?
What is Social Return on Investment?
• 7 principles • 6 steps• Robust internationally accredited framework• Delivers consistently• Used by the people who pay (statutory eg Local
Government, NHS; and non-statutory services) and people who do (charities, not-for-profit, commercial with social aims)
Principles of SROI (and why they are important)
• Involve stakeholders• Understand what changes• Value things that matter• Only include what is material• Do not over-claim• Be Transparent• Verify the result
Steps in SROI process
1. Establish scope and identify stakeholders2. Map outcomes3. Evidence outcomes and give them a value4. Establish impact5. Calculate the SROI6. Report, use, embed
Another example: Audit of User Experience
Experts by experience audit user experience for people receiving supportIs there any tangible value that can be banked?•Cost of care (reduced intensity) – Commissioner•Cost of staffing and staff turnover – Provider•Innovation and improvement, user experience and contract renewals – Commissioner and Provider•Compliance – regulator and other stakeholders•Users – don’t spend real money so not bankable, but quality improvement
What makes a good SROI analysis?
• No preconceptions (although it does help if you tell us about your organisation)
• A fresh pair of eyes – Stakeholders can talk to an independent (especially an
accredited independent)– Value isn’t necessarily what YOU say it is, it’s what the
recipient says– What you don’t know about
• Applying the principles without compromise
Who’s backing SROI?• The SROI Network, NEF, etc
HOW to apply it
Applying the concepts to Benefits Management
• SROI is really a special form of Benefits Management
• Many disciplines and principles are valuable for BM – second/ third/ fourth stage benefits are they really bankable?
• Emphasis on the benefits recipient, inspiring people, transparency, causality, what would have happened anyway
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