Holy Grails of System
Change:
Outcomes, Measurement &
Collaboration
RESEARCH & EVIDENCE SYMPOSIUM
AUGUST 2013
2
INTRODUCTION
3
QUESTIONS
• If your organisation improved outcomes delivered by 30% this year . . .
?
• Is your evaluation . . .
. . . p...
4
Context: Introducing
the Australian “Social Impact System”
5
THE SOCIAL IMPACT SYSTEM
NFP
$100bn1
$30bn1
Govt
(Social)
$200bn
For-Profit Total?
Top 500: $1,543 bn
All Govt: $500bn+
...
6
How are we
(the “Social Impact System”)
doing?
7
HOW ARE WE DOING?
1980 1990 2000 2010
Outcomes/$Invested
1. Exponential growth
2. Slow and steady
3. Status quo
4. In re...
8
EXAMPLES
• In Australia, disadvantage has a postcode.
– Despite an increase of funds allocated to Australia’s most disad...
9
A System Challenge
It is the long history of humankind (and animal
kind, too) those who learned to collaborate and
impro...
10
SYSTEM CHALLENGE
The number of working age Australians (15-64) per older Australian
(65+) is decreasing from 7.5:1 to 2...
11
SYSTEM CHALLENGE
1970 2000 2030 2060
Outcomes/$invested
Effectiveness
100
200
2010
2050
20% of Commonwealth outlays
on ...
12
AUSTRALIA – THE LUCKY COUNTRY?
“America – the greatest country in the world.”
http://www.youtube.com/watch?v=9zZxBNRTkd4
13
Meeting the Challenge . . .
We have learned to create the small exceptions that can change
the lives of hundreds. But w...
14
INTRODUCING . . .
The Centre for Social Impact
This is a Centre which can bring together research, teaching and
cross-s...
15
THE CENTRE FOR SOCIAL IMPACT
• The Centre for Social Impact
– University partnership:
– Federal government support
+ 8 ...
16
So what ARE the keys to
improving social impact in Australia?
17
CSI: SOCIAL IMPACT FRAMEWORK
Transparent reporting
of social outcomes
Social Outcomes
Purposes/strategies
defined in te...
18
THREE HOLY GRAILS
1. Define outcomes
2. Measure (and transparently report)
outcomes
(and change resourcing decisions ba...
19
1. Define outcomes
2. Measure (and transparently report) outcomes
(and change resourcing decisions based on this)
THREE...
20
WHAT IS THE VALUE OF MEASUREMENT?
• Jeremy Nicholls (SROI, UK) – what is the most important benefit of outcome
measurem...
21
THE VALUE OF MEASUREMENT
What is the value of
measurement?
Let’s calculate it.
Consider this scenario . . .
22
THE VALUE OF MEASUREMENT
Imagine a system:
• A funder has $100 pa to spend on social outcomes.
• 10 organisations each ...
23
THE VALUE OF MEASUREMENT
• There is a cost of measurement - 5% of program funding – in all scenarios
(except the base c...
24
THE VALUE OF MEASUREMENT
Outcomes
Base case
3% pa internal improvement
5% pa internal improvement
Typical funding period
25
THE VALUE OF MEASUREMENT
Outcomes
5% pa improvement, no reallocation
5% pa improvement, with reallocation
3% pa improve...
26
THE VALUE OF MEASUREMENT
What is the value of measurement?
With a combination of internal improvement in effectiveness ...
27
So why aren’t we doing this already?
28
BARRIERS TO MEASUREMENT
Barriers
• Cost
– Someone has to pay for it – it’s a cost
now for a benefit later
– In some cas...
29
MEASUREMENT – KEY TO IMPROVING IMPACT
• Measurement starts with defining outcomes
• We need effective measurement – AND...
30
THREE HOLY GRAILS
1. Define outcomes
2. Measure (and transparently report) outcomes
(and change resourcing decisions ba...
31
COLLABORATION MATTERS
32
COLLABORATION MATTERS
Partnerships and Collaboration
A partnership is an arrangement where parties agree to cooperate
t...
33
PARTNERSHIP AND COLLABORATION
Partnership
• Cooperate to advance mutual
interests
• To continue to improve
performance ...
34
COLLABORATION MATTERS
• Collaboration is hard. At the very least, it’s inefficient.
“Collaboration should not be seen a...
35
BARRIERS TO COLLABORATION
Barriers
• Misalignment of “mission” or
objectives
– Lack of outcome focus
– Competitive appr...
36
BARRIERS TO COLLABORATION
Barriers
• Time
– It takes too long!
• Ego
– My organisation does it better
– My objectives a...
37
COLLABORATION – KEY TO IMPROVING IMPACT
1. Collaboration starts with defining shared outcomes
– Agreeing the problem (i...
38
FOR RESEARCHERS: TAKE THE SYSTEM VIEW
System optimisation & local optimisation are not the same thing.
• From program-b...
39
In Conclusion
40
MEETING THE CHALLENGE
1970 2000 2030 2060
Outcomes/$invested
100
200
• We must create a learning, evolving system to mo...
41
CONCLUSION
The secret is to gang up on the problem,
rather than each other.
- Thomas Stallkamp
Upcoming SlideShare
Loading in …5
×

Holy grails aug 2013

341 views

Published on

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
341
On SlideShare
0
From Embeds
0
Number of Embeds
99
Actions
Shares
0
Downloads
7
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Questions<Who are you?>How many of you have been involved in a partnership or collaboration that took lots of time and effort, lots of meetings, but you didn’t achieve much material progress or outcome?How many of you think this is the case more often than not?Context:Why partnership and collaboration mattersSystem context
  • Re: “partnership” and “collaboration”I will use them a bit interchangeably for nowThey are not the same thing and I will come back to that later
  • Holy grails aug 2013

    1. 1. Holy Grails of System Change: Outcomes, Measurement & Collaboration RESEARCH & EVIDENCE SYMPOSIUM AUGUST 2013
    2. 2. 2 INTRODUCTION
    3. 3. 3 QUESTIONS • If your organisation improved outcomes delivered by 30% this year . . . ? • Is your evaluation . . . . . . program-focused or community outcome focused? • NFPs: Do you find accessing government data easy? • Govt: How confident are you that you have the information you need to make great decisions about future resource allocation? • For every $100 spent on services, how much is spent on measurement? • How confident are you that we are trying to measure the right things? • How confident are you that our measurement is meaningful?
    4. 4. 4 Context: Introducing the Australian “Social Impact System”
    5. 5. 5 THE SOCIAL IMPACT SYSTEM NFP $100bn1 $30bn1 Govt (Social) $200bn For-Profit Total? Top 500: $1,543 bn All Govt: $500bn+ For-Profit (Social): $? The turnover of the “Social Impact System” is over $250 bn pa. 12006-07 PC Report data aged at 4% ? Governments • 1 federal, 6 state, 2 (largish) territories, 564 local governments • Many departments across Health, Welfare, Education, Justice . . . • Multiple roles - sets policy, funds programs, runs programs . . . Not-for-Profit • 700,000 NFPs • 60,000 economically significant Corporate • Philanthropy, corporate social responsibility, creating shared value Evolving forms • Social enterprises, B-corps . . .
    6. 6. 6 How are we (the “Social Impact System”) doing?
    7. 7. 7 HOW ARE WE DOING? 1980 1990 2000 2010 Outcomes/$Invested 1. Exponential growth 2. Slow and steady 3. Status quo 4. In reverse System Effectiveness 5. Consensus?
    8. 8. 8 EXAMPLES • In Australia, disadvantage has a postcode. – Despite an increase of funds allocated to Australia’s most disadvantaged localities, their positions on rankings of disadvantage have remained stable for over ten years. Ingrid Burkett 2011; Tony Vinson 2009 • The proportion of children living in jobless households is higher in Australia than in all but four of 27 EU member states. Australian Social Inclusion Board, 2009 • Australia is half as successful as other OECD countries in finding employment for people with a mental illness. OECD, 2003 • Indigenous Australians are significantly less likely to finish school or university. ABS, 2011
    9. 9. 9 A System Challenge It is the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed. - Charles Darwin
    10. 10. 10 SYSTEM CHALLENGE The number of working age Australians (15-64) per older Australian (65+) is decreasing from 7.5:1 to 2.5:1 over 80 years. • The implications for our workforce are significant • The implications for our tax dollar are significant Source: Australian Treasury Intergenerational Report, 2010 and CSI Research Fellow Ingrid Burkett
    11. 11. 11 SYSTEM CHALLENGE 1970 2000 2030 2060 Outcomes/$invested Effectiveness 100 200 2010 2050 20% of Commonwealth outlays on health, welfare & education* 56% of Commonwealth outlays on health, welfare & education *David Murray, The Australian • # working age Australians per older Aust falling from 5 to 2.5 • Expenditure on Ageing increasing from 25% to 50% of govt spending Effectiveness “target” Actual/projected Future target/need CHALLENGE: Exponential growth A learning system
    12. 12. 12 AUSTRALIA – THE LUCKY COUNTRY? “America – the greatest country in the world.” http://www.youtube.com/watch?v=9zZxBNRTkd4
    13. 13. 13 Meeting the Challenge . . . We have learned to create the small exceptions that can change the lives of hundreds. But we have not learned how to make the exceptions the rule to change the lives of millions. - Lisbeth Schorr, Social Analyst
    14. 14. 14 INTRODUCING . . . The Centre for Social Impact This is a Centre which can bring together research, teaching and cross-sector partnerships to create positive social impact at the intersections between government, business and community life. I am confident that the Centre will be a great source of answers and of practical initiative. - The Hon Julia Gillard 28 February 2008
    15. 15. 15 THE CENTRE FOR SOCIAL IMPACT • The Centre for Social Impact – University partnership: – Federal government support + 8 founding funders: – 2008-2012: Organisation established, research & teaching programs created. • Our Mission: “to create beneficial social impact in Australia through teaching, research, measurement and the promotion of public debate.” Cross-sectoral focus. • 2012 strategy consultation question: What are the keys to improving social impact in Australia?
    16. 16. 16 So what ARE the keys to improving social impact in Australia?
    17. 17. 17 CSI: SOCIAL IMPACT FRAMEWORK Transparent reporting of social outcomes Social Outcomes Purposes/strategies defined in terms of social outcomes Social Impact: resilient, inclusive, healthy society with positive wellbeing Funding rewards social outcomes Social Outcomes Ecosystem Social innovation pipeline Collaborative and participative approaches Great governance, leadership and management Effective Implementation Effective Measurement
    18. 18. 18 THREE HOLY GRAILS 1. Define outcomes 2. Measure (and transparently report) outcomes (and change resourcing decisions based on this) 3. Collaborative (and participative) approaches From Monthy Python and the Holy Grail: Then shalt thou count to three, no more, no less. Three shall be the number thou shalt count, and the number of the counting shall be three. Four shalt thou not count, neither count thou two, excepting that thou then proceed to three. Five is right out. Once the number three, being the third number, be reached, then lobbest thou thy Holy Hand Grenade of Antioch towards thy foe, who, being naughty in my sight, shall snuff it.
    19. 19. 19 1. Define outcomes 2. Measure (and transparently report) outcomes (and change resourcing decisions based on this) THREE HOLY GRAILS
    20. 20. 20 WHAT IS THE VALUE OF MEASUREMENT? • Jeremy Nicholls (SROI, UK) – what is the most important benefit of outcome measurement? – “Maybe that it forces [management] to revisit and define and focus on their social outcomes in the first place.” • Morino, M. Leap of Reason1: – “<It’s> not about pushing nonprofits to drink the metrics Kool-Aid, implement fancy reporting technologies, or adopt complex measurement methodologies. It is about encouraging nonprofits and funders to cultivate for themselves an outcomes-focused mindset and the passion to be as effective as we possibly can for those we serve!” • Peter Drucker: “You can’t manage what you can’t measure.” • Typical (US) Foundation Manager: – “You can achieve incredible progress if you set a clear goal and find a measure that will drive progress toward that goal . . . this may seem basic, but it is amazing how often it is not done and how hard it is to get right.” 1Venture Philanthropy Partners in partnership with McKinsey & Company, 2011. 2The Wall St Journal January 26, 2013. Bill Gates2
    21. 21. 21 THE VALUE OF MEASUREMENT What is the value of measurement? Let’s calculate it. Consider this scenario . . .
    22. 22. 22 THE VALUE OF MEASUREMENT Imagine a system: • A funder has $100 pa to spend on social outcomes. • 10 organisations each receive $10 funding. • The organisations’ effectiveness varies. Funder $100 Org 1 55 Org 2 65 Org 3 75 Org 2 85 Org 3 95 Org 1 105 Org 2 115 Org 3 125 Org 2 135 Org 3 145 100 Outcomes Effectiveness: Outcomes per $100 funded
    23. 23. 23 THE VALUE OF MEASUREMENT • There is a cost of measurement - 5% of program funding – in all scenarios (except the base case). • Measurement has a 3 year time-delay before it improves internal effectiveness and a 5 year delay before it results in funding reallocation. Scenario Comment Internal Effectiveness Funding Reallocation Base Without measurement, there is no reallocation of funding between organisations. Organisations improve internal effectiveness gradually. 1% pa - 1a 3% pa - 1b 5% pa - 2a 3% pa 5% pa 2b 5% pa 5% pa Measurement is used within organisations to improve programs and/or reallocate resources. Measures are transparently reported; the funder reallocates resources from the bottom half to the top half of effective organisations at the rate of $5 per year.
    24. 24. 24 THE VALUE OF MEASUREMENT Outcomes Base case 3% pa internal improvement 5% pa internal improvement Typical funding period
    25. 25. 25 THE VALUE OF MEASUREMENT Outcomes 5% pa improvement, no reallocation 5% pa improvement, with reallocation 3% pa improvement, no reallocation 3% pa improvement, with reallocation Base case
    26. 26. 26 THE VALUE OF MEASUREMENT What is the value of measurement? With a combination of internal improvement in effectiveness (4% pa) and systemic resource reallocation (4% pa) we can double system effectiveness in 20 years. Scenario Internal Effectiveness Funding Reallocation 2033 Outcomes Discounted ROI Base 1% pa - 122 - 1a 3% pa - 162 1.8 1b 5% pa - 224 3.4 2a 3% pa 5% pa 192 5.3 2b 5% pa 5% pa 266 7.3
    27. 27. 27 So why aren’t we doing this already?
    28. 28. 28 BARRIERS TO MEASUREMENT Barriers • Cost – Someone has to pay for it – it’s a cost now for a benefit later – In some cases, it can be a show- stopper; example social investment where even 1-2% change kills the business case • Timeframes – Typical govt funding timeframes and budget cycles not conducive • Perceptions – “You can’t measure what we do” – Fear of focus on “the number”; you are heartless • Methodology debate - lack of agreement about methods/tools Solutions? – Build business case with examples & cases – Educate Boards and funders – Give more attention to the cost of NOT measuring – the opportunity cost – Choose when to apply measurement – and grow from there – Advocacy. Funding has to move from low cost to long-term outcomes – Great case studies in a range of fields – People make decisions, not spreadsheets. Measurement is an input – Build best practice guidance; focus on the bigger picture
    29. 29. 29 MEASUREMENT – KEY TO IMPROVING IMPACT • Measurement starts with defining outcomes • We need effective measurement – AND transparent reporting – Governments must open data – Shared measurement will reduce cost – Reward those who are open and future-focused • Measurement is pointless unless we change behaviour – Resource reallocation must follow – funding and people – Funders (including governments) must be brave – We must support them
    30. 30. 30 THREE HOLY GRAILS 1. Define outcomes 2. Measure (and transparently report) outcomes (and change resourcing decisions based on this) 3. Collaborative and participative approaches Politeness is the poison of collaboration. - Edwin Land
    31. 31. 31 COLLABORATION MATTERS
    32. 32. 32 COLLABORATION MATTERS Partnerships and Collaboration A partnership is an arrangement where parties agree to cooperate to advance their mutual interests Collaboration is working with each other to do a task. It is a . . . process where two or more people or organizations work together to realize shared goals Wikipedia Assumption #1: We have mutual interests and/or shared goals Assumption #2: For our purposes, this alignment of interests is associated with the achievement of better social outcomes <for people in a community>
    33. 33. 33 PARTNERSHIP AND COLLABORATION Partnership • Cooperate to advance mutual interests • To continue to improve performance (eg improving referral or delivering contract outcome) • Some short-mid term interests • A few percent of our organisation budget (or less) • A good working relationship with another organisation or manager/s Collaboration • Work together to realize shared goals • To address our most significant social issues (eg third generation unemployment in difficult region) • Our mission (or a good slice) • Whole programs, or even the potential to re-think what we do • Cultural fit with a collaborative group of organisations (from different sectors) Partnership and collaboration are not the same thing. Define Needed Alignment of Involving
    34. 34. 34 COLLABORATION MATTERS • Collaboration is hard. At the very least, it’s inefficient. “Collaboration should not be seen as a goal in itself. Collaboration is only required when no one entity has the resources or authority to make the required change.” Liz Skelton (SLA) in Pro-Bono Australia, 2013 • . . . but it’s the only way: “Most of the most complex social problems <in the UK today> . . . cannot be solved by services that work in isolation.” Daniela Barone Soares, CEO, Impetus Trust
    35. 35. 35 BARRIERS TO COLLABORATION Barriers • Misalignment of “mission” or objectives – Lack of outcome focus – Competitive approaches eg winning a funding contract • Decisions, Structures & Systems – Lack of established heirarchy for decisions – Disparate data and communication systems • Funding – Short-term, competitive, activity, low cost and compliance focus – Fragmented (govt siloes) Solutions? – Create joint understanding of the problem BEFORE determining activity to fund/deliver – Co-design solution – Shared goals, shared measurement – Culture change: outcome before organisation – Well defined project management and governance – Differentiated roles. Each org does what it does best. – The Cloud, modern technologies – LOTS of communication -> Trust – Creative funding models. Longer term. – Fund approaches, not just program. – Non-government funders to get us started?/ layered funding
    36. 36. 36 BARRIERS TO COLLABORATION Barriers • Time – It takes too long! • Ego – My organisation does it better – My objectives are ABC (misalignment of system vs organisation aims) • Skills – Collaboration requires different leadership and management skills Solutions? – Change our definition of success (we’re spending a lot of time not achieving much the current way) – Change our organisation definition of success – . . . and flow on to individual metrics/ definitions of success – Empower collaboration (government?) – Invest in skills for collaboration
    37. 37. 37 COLLABORATION – KEY TO IMPROVING IMPACT 1. Collaboration starts with defining shared outcomes – Agreeing the problem (in its entirety) – Co-designing the solution 2. And continues with shared measurement – Governments must open data – Use technology effectively 3. Collaboration requires communication and trust – Investing time in relationships – building trust – Communicate often, led by the leaders, and empowering others – Skill development 4. Collaboration requires investment – In organisation capacity, people and systems . . . in collaboration 5. Collaboration requires a long term view
    38. 38. 38 FOR RESEARCHERS: TAKE THE SYSTEM VIEW System optimisation & local optimisation are not the same thing. • From program-by-program justification to shared measurement, community outcomes • From retrospective analysis to proactive definition of outcomes, great logic frameworks, embedded measurement, cultural change • Attribution important – but secondary • Ask the big questions • Seek openness.
    39. 39. 39 In Conclusion
    40. 40. 40 MEETING THE CHALLENGE 1970 2000 2030 2060 Outcomes/$invested 100 200 • We must create a learning, evolving system to move from fragmented progress of the past 30 years to meet the challenges of the next 30. • Without clear outcomes, effective measurement and transparent reporting, we cannot achieve this. • Funding another program will not address complex, sustained social issues. We need new collaborative and participative approaches. • The research community can play a critical catalysing role: – Demonstrating collaboration – Doing great work in measurement – Focusing on shared outcomes and measurement.
    41. 41. 41 CONCLUSION The secret is to gang up on the problem, rather than each other. - Thomas Stallkamp

    ×