Making the case webinar

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Making the case webinar

  1. 1. MAKING THE CASEPicture CC: Some rights reserved byDarnok
  2. 2. “In our time, the curse is monetary illiteracy,just as inability to read plain print was thecurse of earlier centuries.” Ezra Pound
  3. 3. What we will cover1. About Creative Councils2. Why a business case?3. Tools for making the case4. Existing evidence5. Practical steps6. Using results7. Q&A
  4. 4. Creative Councils:• NESTA/LGA Challenge Prize supporting 17 Councils• Focus on radical innovations to solve problems• Tackling issues such as ageing society, sustainablegrowth and increasing demand on services• 2 year programme• Tools and lessons will be shared with other councils
  5. 5. Community Engagement Webinars• Part of Creative Councils support• Online webinars focussing on different aspects of local community engagement• Every two weeks on a Friday Lunchtime• Runs February to April• Free and open to anyone to attend• Recordings of past webinars will be posted online
  6. 6. About• Registered Charity (nr. 1130568)• Focus: Public and stakeholder engagement• Works with: Central & local government. Health organisations, NGOs and International Organisations• www.involve.org.uk
  7. 7. "I am extremely uncomfortable with the ideathat someone will decide whether or notparticipation is economically viable. Thequestion should be whether there is scope forthe participant to change things. Not will theirparticipation be cost effective" Respondent to Involve 2005
  8. 8. Making the case• It’s a good thing• It’s a democratic right• Improves wellbeing• Inclusion of marginalised groups• Empowerment of marginalised groups
  9. 9. Why articulate the business case?• Dealing with cuts agenda• Accountability for tax payer money• Clarifying for internal audience• Clarifying for external audience• Achieving long term savings
  10. 10. “We really have no idea how much we spendon participation, it tends to be cobbledtogether from different budgets at the end ofthe financial year". Local Authority Chief Executive
  11. 11. Why do we know so little?• New field• Intangible benefits• Distributed benefits• Costs hard to unpick• Unclear what is cost and what is benefit• Fear/hiding costs
  12. 12. Economic Evaluation• Cost-benefit analysis• Cost-effectiveness analysis• Cost-minimisation analysis• Cost-consequences analysis• Social Return On Investment
  13. 13. Evaluation vs Business caseEvaluation Business case• Academic • Practical• Complete • Incomplete• Time consuming • As much time as you have• Truth • Good enough
  14. 14. Public Goods• non-rival (one persons use of the good does not reduce some one elses use of it) and• non-excludable (it is very difficult to exclude anyone from gaining benefits from the good).
  15. 15. Other concepts• Deadweight - used to describe what would have happened anyway.• Additionality - the economic effects after the deadweight has been discounted.• Displacement - productivity benefits that are offset by reductions elsewhere.
  16. 16. In short... Understanding can be greatly enhanced but evidence will always be incomplete.
  17. 17. Questions?
  18. 18. “Nowadays people know the price ofeverything and the value of nothing.” Oscar Wilde
  19. 19. Costs and Benefits of Engagementcture CC: Some rights reserved By: clarita
  20. 20. Costs• Programme costs• Non-programme costs• Participant costs
  21. 21. Benefits• Improved governance• Greater Social Cohesion• Quality of Services/Projects• Capacity Building/Learning
  22. 22. Specific Benefits• Innovation and creativity• Avoiding conflict• Access to new resources• Continued development / maintenance• Better quality outcomes• Information and expertise• Increased public awareness and understanding• Sharing responsibility• Increased use• Staff morale
  23. 23. Non-monetary benefits• Active citizenship• Stronger communities• New organisations and structures• Behaviour change• Trust and social capital
  24. 24. Non-monetary benefits• Revealed preference• Stated preference – Willingness to pay – Willingness to accept• Benefits transfer
  25. 25. Distributional impactsTotal Place:• 200 to 300 families described as ‘chaotic’ each cost public services in the Croydon around £250,000 each year• £50,000,000
  26. 26. Risks• Financial risks• Performance risks• Reputational risks• Opportunity risks
  27. 27. Benefits -resilient community networksMonetary Measured by Non-monetary valuevalueAccess to new Database of funding Survey resultsfunding and accessed before andvolunteering time after engagement. Time sheets for volunteers
  28. 28. Benefits - Increase trustMonetary value Measured by Non-monetary valueReduced spend on Staff work Reported trustcomplaints diaries/time sheets, levels, NI4 scores, complaints listings about people feeling able to influence decisions
  29. 29. Benefits - Quality of servicesMonetary value Measured by Non-monetary valueBetter service Staff work Service useroutcomes (health, diaries/time sheets, satisfactioncrime etc), less time neighbourhood levelspent on service statistics,administration and health and crimeduplicated work , statisticsless complaints
  30. 30. Benefits - Take difficult decisionsMonetary value Measured by Non-monetary valueReduced conflict Legal costs, staff Number of negativeand reduced spend work diaries/time articles in press,on legal challenges sheets, complaints survey results listings
  31. 31. Benefits –good community relationsMonetary value Measured by Non-monetary valueReduced vandalism Crime statistics Survey resultsand crime in localarea
  32. 32. Replacement costsNew resource Replacement costIncreased volunteer time The cost of providing the service or activity using paid staffNew intelligence and information The cost of gathering the same information using a market research companyNew and improved relationships The cost of building the same links through a PR and communications exerciseIncreased public awareness of The cost of achieving a similar levelpolicies and services of awareness through campaigns or PR
  33. 33. ToolsPicture CC: Some rights reservedBy: ardelfin
  34. 34. LogframeGoals/ Possible Monetary How to get Importantpurpose indicators measures data assumptionWhat are you How will Can you How can What aretrying to do? you know if estimate a you gather the you are money this assumption successful? value on information s in any of the ? choosing indicators? this measure of success?
  35. 35. LogframeGoals/ Possible Monetary How to get Importantpurpose indicators measures data assumption
  36. 36. Logframe -exampleGoals/ Possible Monetary How to get Importantpurpose indicators measures data assumptionWe want to If we are The time- Record We areincrease the successful spend of number of assumingresponsivene we should complaints complaints that timess of services see a staff has a per month sheets areto users change in monetary around this accuratelyfollowing the number value and service and filled in.public or type of can be assess the This mayconsultation complaints quantified average need to beevents. about the length of a checked. service. complaint. .
  37. 37. Comparators• Do nothing• Status Quo• Alternative engagement methods• Alternative means of achieving the benefits
  38. 38. Example -English Nature HumberEstuary Designation• English Nature engagement to inform legal protection for wildlife in the Humber Estuary.• Previous designation plans met with hostility and were withdrawn.• Previous conflict led to legal fees of £75,000.
  39. 39. Cost of conflict Conflict can be extremely expensive: DEFRA and the Environment Agency (2005) estimate that around 5% of all permit application took in excess of 500 hours work to process and 1% took over 1,000 hours.
  40. 40. Humber: Costs and benefitsCosts of engagement Benefits of engagementStaff cost: £50,000 Legal Costs saved: £75,000Displays and PR: £8,000Admin: £5,000Postage: £2,000Travel: £1,170Press briefings: £1,000Total: £67,170 Total: £75,000 Value of engagement: £7,830
  41. 41. “The only man who behaves sensibly is mytailor; he takes my measurements anew everytime he sees me, while all the rest go on withtheir old measurements and expect me to fitthem.” George Bernard Shaw
  42. 42. Using the Involve Toolkit
  43. 43. Heartland Community Voice(Portsmouth)• Bin fires in area: – 154 in 2006 – 135 in 2008.• Each case of criminal damage estimated at £856 around 4.29 crimes remain unreported for every reported case.• Potential saving of £69,772.56 per year• Also non monetary benefits: increased volunteering, levels of satisfaction
  44. 44. Involve toolkit:• Costs that can be given a monetary value• Benefits that can be given a monetary value• Costs that cannot be expressed in monetary terms• Benefits that cannot be expressed in monetary terms
  45. 45. Stage 1 - Scope the business case• Decide how you will use the toolkit• Decide who your audiences are• Decide if monetary valuation is appropriate for you
  46. 46. Stage 2 –Define focus and purpose• Decide the focus for the business case• Clarify the intended purpose and outcomes• Consider possible comparator areas/ projects
  47. 47. Stage 3 -Decide what to measure• Identify what can be given a money value and what cant• Identify who you need help from to obtain the data• Identify where proxies might be appropriate
  48. 48. Stage 4 Complete checklist & chart• Understand your data and assumptions• Gather the data you need• Fill in the checklist and calculation chart• Use spreadsheets to track costs and benefits
  49. 49. Stage 5 -Analyse results• Try out different methods of analysis, for example SROI, Cost benefit, Cost-effectiveness• Understand the limitations of the data• Test results with colleagues
  50. 50. Stage 6 -Present the business case• Select appropriate presentation format• Present the business case• Adapt to feedback
  51. 51. Example -Probability• The Environment Agency engaged to build trust in flood defence schemes:• Flood mitigation benefit £35-40 million• Engagement £2 million• To be cost effective in future probability of success must increase by 5.7% (£2 m/£35m).• Engagement needs to change the result from rejection to acceptance in 1 case in 20 to be worthwhile.
  52. 52. Problems and solutionsPicture CC: Some rights reserved By:doctor_bob
  53. 53. Communicating the result• Use the business case to tell stories• Tailor your argument to fit your audience• Seeing is believing• Anecdotes can be powerful• Don’t forget the potential costs of non- engagement• Theory of Change
  54. 54. Doncaster furniture recyclingexampleBenefits to council Benefits to clients• 488 tonnes of waste • 4000+ low-income diverted from landfill, households received goods saving approximately –estimated supplying same £20,000 in landfill tax families with second-hand payments. goods would have cost £140,000 with existing market prices.
  55. 55. Links• http://www.involve.org.uk/wp- content/uploads/2011/07/Making-the-Case- for-Public-Engagement.pdf• http://www.involve.org.uk/wp- content/uploads/2011/07/Calculating-costs- and-benefits-with-comparator.xls
  56. 56. Links 2• http://healthandcare.dh.gov.uk/economic- case-for-ppi• http://www.demsoc.org/static/Financial-Case- white-paper.pdf• http://www.idea.gov.uk/idk/core/page.do?pa geId=17455595
  57. 57. “It is better to be roughly right than preciselywrong” John Maynard Keynes
  58. 58. involveRoyal London House22-25 Finsbury SquareLondonEC2A 1DXt: 0 20 7920 6470e: edward@involve.org.uktwitter: ed_andersson

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