Joelle Bradly

Research and Insight TeamChief Executive’s DepartmentLeicestershire County Council

Social Value and Local Commissioning

Why do we want to understand social value?

• Less money• Less emphasis on top down performance

indicators• Public Services (Social Value) Act• Localism Act and Big Society – bottom up

involving people• Early intervention – save money later• Transparent - more accountable to residents

Measuring social value

1. What outcomes should we be measuring?2. How do we evidence outcomes?3. How do we apply a value to outcomes?4. How do we put social value into context?5. How will it be considered in

commissioning6. How can we create maximum social

value?

1. What outcomes should we be measuring?

Who is affected?What changes for them?

• Intended and Unintended outcomes • Positive and Negative outcomes• Financial / social / environment

Theory of changeInputs>> outputs>>outcomes

Chain of events

Short term outcomes>> Medium term outcomes >> Long term outcomes

Test for materiality-Are the outcomes all significant and relevant?

2. How do we evidence outcomes?

How do you know a change has happened?Choosing an indicatorNew or existing data

Test for materiality-Are the quantities significant enough to include?

3. How do we value outcomes?

Use financial proxies to estimate the value of non-market goods to different stakeholders

•Stated preference•Revealed preference

http://www.wikivois.org

Test for materiality-Are the values significant enough to include?

4. How do we put social value into context?

Who else do you work with to achieve outcomes?

How long do outcomes last for?Do they drop off over time?

Are outcomes being displaced?What would have happened anyway?

How does the value compare to the investment?

Test for materiality-Is the impact that results from the activity still significant?

7 principles ofSocial Return on Investment:

• Involve stakeholders• Understand what changes• Value the things that matter• Only include what is material• Do not over-claim• Be transparent• Verify the result

There are six stages of SROI

1.Establishing scope and

identifying key stakeholders

2. Mapping outcomes

3. Evidencing outcomes and giving

them a value

4. Establishing

impact

5. Calculating

the SROI

6.Reporting, using and

embedding

For each £1 invested in CSSP supporting Connexions Leicester Shire to deliver sexual health services between approximately £7 and £9 is returned in social value

Primary benefitso Reduction in teenage pregnancy for young people (variable)

Secondary Benefitso Young people make more informed proactive choiceso Reduced cost to public services of a teenage pregnancy (variable)o Better support for young people taking risks reduces the number ofdisengaged young people

Tertiary benefitso Improved access to emotional support for young people

Value to different stakeholder groups

SROI Examples

For each £1 invested in Warning Zone mentoring between £3 and £4 is returned in social value

Inputs = CS funding (£3,000), volunteers, schools

Primary benefits of Warning Zone in Harborough:

-Young people are aware of risks and able to make informed decisions regarding their own safety

Secondary Benefits:

-Reduced cost of ASB

Value to different stakeholder groups

Value Stakeholder

£23,453 Children

£7,112 Police / Districts

£358 Parents

For each £1 invested in Twenty Twenty mentoring approximately £3 is returned in social value

Inputs = Funding (£45,000), volunteers

Primary benefits of Twenty Twenty Mentoring:- Young people are able to improve their relationships with family and friends- Young people are independently able to deal with difficult situations and stay strong

Secondary Benefits:- Reduced cost of ASB- Reduced cost of NEET young people

Value to different stakeholder groups

Value Stakeholder£193,606 Young People at risk£22,351 Police£16,704 DWP£10,753 Mentors£5,387 Parents

5. How can social value be considered in Commissioning?

Understanding the needs and aspirations of a specific population

•What is the social and financial value or meeting needs?

•What are their current assets?•How do services currently or potentially

contribute to meeting their needs?

Key questions to help measure your social value

Who do you have an impact on?What changes for them?How much do they value this change?How long does change last?Who else do you work with to achieve change?What would happen anyway?

6. How can you create maximum social value?

• Involve stakeholders in understanding your theory of change• Manage known and potential negative impacts • Understand enablers and preventers of change• Focus on outcomes that create the most value