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Working within the paradoxes

By Sam Anderson

2012 Clore Social Fellow

(Paul Hamlyn specialist)

Dec 2013

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With thanks to

Arrivo Consulting

Big Lottery in Scotland

Cause 4

Clore Social Leadership Programme

Cranfield Trust

Evaluation Support Scotland

Impetus Private Equity Foundation

Inspiring Scotland

Noah Isserman

New Philanthropy Capital

Paul Hamlyn Foundation

Pilotlight

Rank Foundation

Roald Dahl's Marvellous Children's Charity

Shaftesbury Partnership

Standard Life Sustainability Team

Voluntary Action Fund

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Contents

P4 Introduction

P5 WHO? WHEN? WHAT? WHY? HOW?

P7 Situation Tree

P9 Assumptions

P11 Logic Model

P13 Outcome Tools and Measurements Currently Used By Organisations

Delivering in the Non-Financial Resource Area to Demonstrate Their

Added Value

P14 Key Elements Important to Consider to Ensure Non Financial

Resource Activities Achieve Their Optimum Impact.

P17 My Reflections

P18 Appendix 1: Participants

P20 Appendix 2: Methodology

P20 Appendix 3: Structured Conversation Topics

P21 Appendix 4: Bibliography

P24 Appendix 5: Author and Clore Social Leadership Programme

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Introduction

In this document I explore how to meaningfully describe the added value of

non financial resources to the social sector.

We are currently in challenging times in which monetary resources are harder

and harder for Social Sector organisations to secure while demand for their

services rises and rises. Non financial resources are seen as one way of

helping to address the challenges.

Advocates of non financial resourcing argue that done properly it offers more

than the equivalent monetary value though there lacks an agreed way of

describing this ‘added value’. This piece of practice based research seeks to

help fill the gap by exploring the question of ‘how to meaningfully describe the

added value of non financial resources to social sector organisations?’ It does

so by presenting the results of desk based research and structured

conversations with a range of key organisations on this question. The purpose

being to offer a framework for the added value of non financial resources

work to be considered within.

Happy reading,

Sam

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WHO?

Sam Anderson

Director of The Junction Young People, Health and Wellbeing-an awards

winning community based charity www.the-junction.org

Paul Hamlyn Specialist Fellow 2012 on Clore Social Leadership

Programme www.cloresocialleadership.org.uk

Practioner with over 25 years experience in the Social Sector

WHEN?

March to December 2013

WHAT?

This piece of practice based research steps away from the bigger, longer

term questions around why there is a growing expectation that social

sector organisations operate as small businesses, but struggle and are

often denied access to funding to do so.

Instead it gathers together a range of data about capacity building work

being undertaken currently to explore how the added value of this type

of non financial resourcing can be meaningfully described.

WHY?

The topic arose from conversations with a range of individuals and

organisations working in the ‘capacity building ‘space who were keen to

explore how they could meaningfully describe the added value of the

work they do. In a world where success is so often measured by

monetary profit it can be a challenge to adequately express the value of

the work of the social sector in relation to direct work never mind what

is often viewed as once removed capacity building.

The scope of my research is itself once removed from direct service

outcomes and impact. This provides me with the opportunity to

investigate an area out with my comfort zone and to explore the

perspectives of delivers of non financial resources rather than my usual

perspective as a social sector recipient of these activities.

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HOW?

Desk based review of current literature.

Structured conversations with funders delivering capacity building

support and third sector organisations specialising in capacity building

delivery.

These conversations formed a number of key themes which were

captured in a 4 page Logic Model.

This Logic Model was then sense checked with all participants from

these conversations, plus with additional other stakeholders.

What is presented here is the culmination of this process.

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Explanation of Terms

Social Sector: Term is used throughout to describe organisations which may

also be described as Charities, Third Sector, Not for Profit, Non Governmental,

Voluntary Sector or Mission based Sector.

Capacity building: Term is used throughout as a catch all to describe the

sphere of work undertaken with the Social sector which strengthens a Social

Sector organisation’s ability to fulfil its mission over time, and enhances its

ability to have a positive impact on lives and communities.

Situation

The structured conversations and sense checking process created a picture of

peoples understanding of current circumstances in the social sector. Their

ideas are illustrated in the situation tree overleaf.

The roots symbolised by the

captures what was expressed in relation to peoples understanding of some of

the causes of the current situation.

The branches symbolised by the

represent how people comprehend the current situation to be.

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Drive on ‘doing more

for less’, ‘doing things

right’, ‘doing the right

things’

Funders/ Investors want

to know that their

investment is ‘making a

difference’

Increase in demand for

social sector services at the

same time as a reduction in

limited resources

Government

expressed desire to

partner with social

sector v concern with

capacity/capability of

sector

Energy/focus on way

forward, exploration

of solutions

Changing funding environment:

recession, move from Grant to

contract/ commissioning.

Procurement Bill. Social

Investment Bonds.

Funders believe there is

a need to strengthen

business functions of

social sector

Focus on

replication,

scaleability

Historical reluctance

to fund organisational

core costs

Inconsistency of approaches to

procurement/ audit/ monitoring

and evaluation heightened by

need for cocktails of funding

from various sources

Limited access to

Networks, structures,

Collective learning/ voice

Historically societal issues

often trying to be addressed

at presenting ‘problem’ level

not cause level

Diversity/plurality of sector

is a key strength but also

can hinder extent of

influence over policy and

practice

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Assumptions

The Logic Model produced by this research process is influenced by a range of

key, at times conflicting assumptions. These include:

Social sector

currently delivers

against the odds

Social Sector requires

business capabilities

development

Social Sector needs

support to

demonstrate their

value.

Developing social

sector organisational

functions will have

positive impact on

service delivery

Change

continuing to

happen

There are things

money can’t buy.

Bigger is better- the

challenge for the sector

is to grow strong

sustainable large scale

organisations

There will always be a

need for small local

groups to work on

some issues and bring

new people into

active participation in

their communities.

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These assumptions were identified through the structured conversations and

offer us an insight into what people’s beliefs about Social Sector Organisations

are. It is important they are articulated along with peoples understanding of

the current situation as these are some of the factors that form our narratives

about the Social Sector and as such will influence which capacity building

outputs are delivered by who to whom.

For example if we consider the assumption

In contrast to

Then the focus for the potential capacity building outputs will be different with

the first one being of particular interest to capacity building delivers focussing

on supporting organisations to scale up while the second on local accessible

delivery. Of course one does not necessarily prohibit the other but the

emphasis will be different and it is important to recognise this so that there is

a good fit between deliver and recipient ambitions.

Bigger is better- the

challenge for the sector

is to grow strong

sustainable large scale

organisations

There will always be a

need for small local

groups to work on some

issues and bring new

people into active

participation in their

communities.

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Logic Model

INPUTS-Non-Financial Resources

Knowledge and Skills Time Buildings Contacts High Profile Brands Leverage and Convening Power Legitimacy

OUTPUTS

Policy and Funding Meetings

brokered between Local

Authority, Government,

Foundations and Trusts, and

Corporates with Social Sector

OUTPUTS

Group learning days for social

sector orgs

OUTPUTS

Strategic and Business planning,

Governance, Feasibility Studies,

Marketing, IT, HR,

Communications, Financial

management,

OUTPUTS

Cross sector discussions

OUTPUTS

Mentoring/Coaching

INTERMEDIATE OUTCOMES

Development of

Individuals and Teams (Staff, Boards and Volunteers both

as deliverers and recipients)

INTERMEDIATE OUTCOMES

Networks=

stronger links and relationships

Between organisations

across sectors

INTERMEDIATE OUTCOMES

Learning what works and

what doesn’t

INTERMEDIATE OUTCOMES

Development of systems

Embedded in everyday practice

INTERMEDIATE OUTCOMES

Increased

profile/recognition

Organisations

better able to

demonstrate

impact

Organisations

better able to

deliver effective

services

Improved

Policy

Better understanding

of issue to be address Greater support

for services

Greater support for

the issue

Organisations

better able to plan

Better understanding of role/

contribution of organisations

People’s needs are better met

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Key for Logic Model

The Logic Model offers a framework for non financial resources to be considered within. All the delivers

participating in the research recognised their work within the framework. Here too we can trace deliverers

particular narrative reflecting the focus of their outputs with some focussing purely on engagement with individual

organisations which while contributing to better services won’t without a narrative which recognises the

Outputs with wider

Social Sector and

Cross Sectors

Outputs with mainly

Individual

organisations

Intermediate Outcomes for

Individual Organisations

Intermediate Outcomes for wider

Social Sector and Cross Sectors

Long Term Outcomes

for Individual

organisations

Long Term Outcomes

for wider Social Sector

and Cross Sectors

ndividual organisations

Impact

B

BET

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underlying issues offer outputs at wider social sector, cross sector and policy level. It is my assertion that it is

important there is capacity building activity at both micro and macro levels for optimum long term impact to be

achieved.

The research also explored how capacity building delivers currently measure what they do. How they do so is

illustrated below

What struck me most about the measurement tools used by the delivers of capacity building is how similar they

are to those used by Social Sector organisations. The delivery organisations also demonstrated something else

charecteristic of Social Sector organisations in that the terminology they used when considering their impact varied immensley. The variety used is captured in the word cloud on the front page of this report . Though this

variety is understandable given the breadth of the organisations involved, the bespoke nature of much of the

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work and the drive on organisations to be ‘distinctive’ it can lead to confusion and makes it very difficult to be able to compare like with like when similar aspects are ‘labelled’ in a multitude of different ways . New

Philanthropy Capital’s ‘Little Blue Book’ divide the aspects into 6 ballpark catagories measuring these themes-

Activities: Do the charity’s activities address a caused by not being genuine need?

Results: Can it demonstrate results of what it has achieved?

Leadership: Do trustees and management provide high quality leadership?

People and resources: Does it use staff, volunteers and resources well?

Finances: Are the finances sound?

Ambition: Is it ambitious to solve social problems?

These catagories reflect much of what other capacity building delivers measure but not all. Who decides what to

include and why are interesting questions outwith the relams of this report but which I belive can be traced back in part to what the capacity building deliveres comprehension of the current situation and their underlying

assumptions are.

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Key Elements Important to Consider to Ensure Non-

Financial Resource Activities Achieve Their Optimum

Impact

The capacity building organisations comprehension of the social sector world

also influence what elements they view as important in ensuring non

financial resources contributions achieve their optimum impact.

Features of this arising in the research included whether it was seen to be

most beneficial to have non financial support linked to financial support or

not, how needs are identified(internal, external or jointly) and how much an

appreciation there was for the internal expertise of Social Sector.

More and more funders are moving towards more formal grant plus models

which can offer vital additional resources to Social Sector Organisations and

help release the necessary internal resources to support capacity building to

happen. This is really important as sometimes the real internal cost of

releasing Social Sector Organisations staff in relation to time, ‘headspace’,

knowledge and experience isn’t fully recognised with a risk of Social Sector

Organisations being viewed as resistant to support rather than literally not

having the capacity within the organisation for capacity building support.

Linked to this is a need for an appreciation that in our era of multiple

funders Social Sector Organisations can be offered/ required to use non

financial support from a range of different capacity building delivers. The

importance of this appreciation, plus recognition of internal costs combined

with the actuality of the different baselines Social Sector Organisations will

be starting from helps explain why bespoke outputs were rated by the

deliverers as far more desirable than ‘off the shelf’ offerings when achieving

optimum impact is considered.

In a similar vein the literature shows that offering just a few types of

outputs rather than a comprehensive range was ineffective (New Tools for a

New World, Steve Browning 2011).If we gather the elements outlined above

together then we can clearly see there are a number of things to consider if

Capacity Building is to achieve its optimum impact.

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Viewed as vital by many delivers and in much of the literature to ensuring

these elements were considered aptly is the role known variously as

‘Project/Investment Managers/Performance Advisors’ etc. These roles were

seen as offering a good appreciation of the capacity building process, of

having time to understand individual organisations, of being aware of ranges

of possibilities and acting as translators plus facilitators’.

The ‘Project/Investment Managers/Performance Advisors’ role was also seen

to help address a number of the other challenges explored in the literature

and recognised by delivers including;

Consideration of when it makes sense to invest the time and resources

into developing the capacity of an organisation balanced against

providing a degree of technical assistance as needed. E.g. whether to

look to skill up internally or supply someone external with the right

skill set to carry out a specific task.

Recognition that organisational development isn’t always linear and

sometimes we need to go back and revisit organisational rudiments as

context shifts.

The tensions between building delivery capacity and building

governance of organisations.

Bespoke

Comprehensive

Builds on

strengths

Compliments

Proportionate

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In considering these challenges Cornforth and Mordaunt (2011) advocate ‘a

move away from linear thinking and simple either/or choices ....Adopting a

paradox perspective (which) means recognising and managing tensions and

differences rather than choosing between them. ‘

Key to these roles of ‘Project/Investment Managers/Performance Advisors’

and intrinsic thru out the research and literature are the themes of

relationships and power. ‘In Beyond Money’ personal relationships were

found to be critical with a need for mutual respect if the inherent power

differences of deliver and recipient were to be offset. This need for careful

and responsible management of power relationships with respectful

relationships being fundamental was similarly recognised by many of the

delivers participating in the research. Again there was some variation which

could be traced back to their perception of the situation and their

assumptions.

My reflections

From undertaking this research it has become clear that lots of excellent

work takes place within the capacity building space. There are and will

continue to be challenges around meaningfully describing this work

particularly because to fulfil its full potential the work needs to by its very

nature be both relationship based and bespoke. Neither of which lends itself

to being easily captured.

For me this reflects the challenges Social Sector Organisations experience in

meaningfully describing their contribution when the dominant narrative

about worth is how it is measured in monetary terms with a focus on profit.

Imagine an alternative narrative where profit and loss was instead described

by relationships and fulfilment of potential.

Far out with the remit of this practice based research and behind the

stalwart capacity building work being done there are bigger questions for me

which would benefit from consideration. These include

Are there alternatives to Social Sector organisations becoming more

business like?

Is there a danger in developing capacity building along business lines that

social sector organisations become less good at what they do in relation to

engaging and delivering where others can’t, won’t and/or don’t?

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How can Capacity building work help contribute to the development of

potential alternative narratives?

Given Capacity Building Organisations and Social Sector Organisations are

challenged by and exploring similar questions could we be doing so more

together?

To this last question for me the resounding answer is YES.

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Appendix 1: Structured Conversation Participants

Organisations who participated in Structured Conversation stage:

Big Lottery in Scotland www.biglotteryfund.org.uk/scotland

Cause 4 www.cause4.co.uk

Cranfield Trust www.cranfieldtrust.org

Impetus Private Equity Foundation www.impetus-pef.org.uk

Inspiring Scotland www.inspiringscotland.org.uk

New Philanthropy Capital www.thinknpc.org

Paul Hamlyn Foundation www.phf.org.uk

Pilotlight www.pilotlight.org.uk

Rank Foundation www.rankfoundation.com

Shaftesbury Partnership www.shaftesburypartnership.org

Standard Life Sustainability Team www.standardlife.co.uk

Voluntary Action Fund www.voluntaryactionfund.org.uk

Logic Model Creation

Logic Model Creation stage supported by

Diane Kennedy – Evaluation Support Scotland

www.evaluationsupportscotland.org.uk

Fiona Ellis - Arrivo Consulting

www.arrivoconsulting.co.uk

Sense Checkers

Participants in Logic Model Sense Checking stage (participant organisations

are listed in Structured Conversation stage above)

Paul Ballantyne, Inspiring Scotland 14-19 Fund Advisory Board

Member

Fiona Ellis, Director Arrivo Consulting

Noah Isserman, PhD Candidate at Cambridge

Richard Piper CEO, Roald Dahl's Marvellous Children's Charity

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Appendix 2: Methodology

This practice based research took place during Spring and Summer 2013

and had a number of key stages:

Desk based research identifying and reviewing key texts relating to the

area of non financial resources.

Qualitative Structured Conversations with a range of organisations from

across sectors involved in the delivery of non-financial resources plus

other stakeholders.

Creation of a Logic Model from conversation information.

Sense checking Logic Model with conversation participants and other

stakeholders.

Revising model to reflect feedback

Formation of report.

Appendix 3: Structured Conversation Topics

Topics explored with each of the Organisations who participated in

Structured Conversation stage

What needs they ‘re seeking to meet?

What activities they offer to meet these needs?

What outcomes they are looking to help deliver?

How they know they are doing what they say they are doing?

o Measurements/tools?

o Contributing more than they take?

o Challenges and Learning

Appendix 4: Sources

Research materials, articles and reports

Beyond The Money-IVAR http://www.ivar.org.uk/publications/trusts-and-

foundations/beyond-money-study-funding-plus-uk

Diana Leat-Big Lottery Fund Research Issue 66-New Tools for a new world or

why we need to re think capacity building (June 2011)

www.biglotteryfund.org.uk/er_newtools.pdf

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BIG and Small:Capacity building, small organisations and the Big Lottery Fund IVAR (Jul 2010) www.biglotteryfund.org.uk/research/building-skills-

and-confidence/capacity-building-needs

C Cornforth and J Mordaunt Organisational Capacity Building: Understanding

the dilemmas for foundations of intervening in small and medium sized

charities (2011) - Voluntas 22:428-449

L De Las Casas, Matt van Poortvliet, Rob Abercrombie, Sally Bagwell-Money

for Good (2013) NEW PHILANTHROPY CAPITAL www.thinknpc.org ›

Publications

F Ellis-Inspiring Scotland-Exploring The Added Value (2012) ARRIVO

CONSULTING www.inspiringscotland.org.uk/.../Inspiring-Scotland-Exploring-

the-Added-Value

Jed Emerson, Tim Freundlich, Jim Fruchterman, Loren Berlin and Keely

Stevenson Emerson Nothing Ventured, Nothing Gained (2007) OXFORD

SAID BUSINESS SCHOOL, SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP

http://community-wealth.org/content/nothing-ventured-nothing-gained-

addressing-critical-gaps-risk-taking-capital-social

Impact Report-Impetus Trust impetus-pef.org.uk/about/impact-reports

Noah Isserman and Ann Markusen Shaping the Future through Narrative:

The Third Sector, Arts and Culture (2012) International Regional Science

Review

R John - Beyond the cheque (2007)SKOLL CENTRE FOR SOCIAL

ENTREPRENEURSHIP

eureka.bodleian.ox.ac.uk/732/1/Beyond_the_Cheque.pdf

Learning for Social Impact - McKinsey and Companywww.mckinsey.com/.../60DFE4F8FC10476CADB7A565238D53F5.ashx

London Benchmark Guidance Model www.lbg-

online.net/media/5595/lbg_guidance_manual_vol_1_inputs.pdf

Rob MacMillan- A Rapid Evidence Assessment of the benefits of Voluntary

and Community Sector Infrastructure(2006) Centre For Regional Economic

and Social Research, Sheffield Hallam University

New Profit Action Tank newprofit.com/cgi-bin/iowa/do/57.html

NPC Little Blue Book http://www.thinknpc.org/publications/the-little-blue-

book/

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NPC Impact http://www.thinknpc.org/publications/helping-grantees-focus-

on-impact

Process Evaluation for Community Builders -New Philanthropy Capital

Department for Communities and Local Government

(2011)http://webarchive.nationalarchives.gov.uk/20120919132719/http://w

ww.communities.gov.uk/documents/corporate/pdf/2113049.pdf

Social Investment Seminars OU https://www.jiscmail.ac.uk/cgi-

bin/webadmin?A2=VOL-SECTOR...

Social Investment –Ten Years On (2010) Social Investment Task Force

www.socialinvestmenttaskforce.org/downloads/SITF_10_year_review.pdf

Social Sector Measurement: Down but not out

www.ssireview.org/blog/.../social_sector_measurement_down_but_not_out

Grantee Perception Report-US Centre for Effective Philanthropy

www.effectivephilanthropy.org/index.php?page=grantee-perception-report

Viewpoint 2010, What is ahead for Social Investment

www.impacteconomy.com/managing-philanthropy-after-downturn-what.

Books

Mary Jo Hatch-Organizations, A Very Short Introduction (2011) Oxford

University Press

Andrzej Huczynski and David Buchanan-Organizational Behaviour, An

Introductory Text (2001) Pearson Education

Mario Marino-Leap of Reason-Venture Philanthropy Partners (2011)

www.vppartners.org/leapofreason/overview

Films

How To Be A Philanthropist in the 21st Century (film) vimeo.com/37245397

In Conversation with Jeremy Heimans-NESTA (film)

www.nesta.org.uk/event/conversation-jeremy-heimans

Dan Pallotta: The way we think about charity is dead wrong-Ted Talks

www.ted.com/talks/dan_pallotta_the_way_we_think...

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Appendix 5: About the author

Sam Anderson - 2012 Clore Social Fellow (Paul Hamlyn specialist)

Sam is the Director and Founder of The Junction

(Young People, Health and Wellbeing), a small,

awards- winning charity based in North Edinburgh which works with and for young people on a range of

health issues.

Prior to setting up the Junction, Sam spent over a decade working for two Edinburgh-based voluntary

organisations with a focus on homelessness, substance misuse, mental health issues and childhood sexual

abuse. While of vital importance, these services were reactive; trying to support people in putting the pieces

back together after the damage had been done and

Sam's experience of this fuelled her drive to develop a proactive, early intervention service, the Junction.

Sam is committed to a community development approach with a deep

seated belief in our ability to achieve a more equitable world. In addition to her work role, Sam has been an active member of a number of Voluntary

Organisations Boards.

About the Clore Social Leadership Programme

The Clore Social Leadership Programme develops leaders

in the social sector so that they can transform their

communities, organisations and the world around them.

They identify some of the UK’s most promising social leaders and give them development, skills and

opportunities. Fellows attend residential courses, have coaching and mentoring, undertake an extended

secondment and a practice-based research project, as well as taking part in action learning sets.

This research report is published as part of Sam Anderson’s Clore Social Fellowship. As part of the Clore Social Leadership Programme, each Fellow is

required to undertake a piece of practice-based research. The purpose of the research is to help develop Fellows' skills as critical users of research, and to

help develop the evidence base for the sector as a whole. The research focus, methodology and output are all chosen by the Fellow.

www.cloresocialleadership.org.uk