Nes measuring imapct jan 2012
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Nes measuring imapct jan 2012

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Quick intro to regional indicators and measuring economic performance

Quick intro to regional indicators and measuring economic performance

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  • Provides equity-like investment & h&s-on advice for scalable & sustainable social enterprises The £12m fund raised from foundations & private investors, & supported by £39m investment by OCS Majority of investments are in underserved areas – addresses funding gap often faced by fast growing social enterprises 32 of the 34 investments made through the Venture Funds by 2010 made in companies operating in most deprived areas
  • Provides equity-like investment & h&s-on advice for scalable & sustainable social enterprises The £12m fund raised from foundations & private investors, & supported by £39m investment by OCS Majority of investments are in underserved areas – addresses funding gap often faced by fast growing social enterprises 32 of the 34 investments made through the Venture Funds by 2010 made in companies operating in most deprived areas
  • This section to frame what we need to do in terms of responses over the coming years. Prompt for ideas from them Ask them to make a list of 2/3 key questions for regen in the future (in small groups)
  • For flip chart 20 employees are given the chance of using a new car park close to work for £5 per day or parking further away from work for free – but involving an extra 10 minutes walk. Their decisions reveal how much they value time. If they all choose to spend the £5 per day on car parking, this reveals that time is more important to them than 50p per minute. If only half take up the car parking option, this reveals that average value of time to them was 50p per minute. Hard choices made in markets are the best guide to private benefit. Information contained in the demand curve tells us much about how much people are willing and able to pay for something. This is important in revealed preference theory. When consumers make purchases at market prices they reveal that the things they buy are at least as beneficial to them as the money they relinquish.
  • For flip chart 20 employees are given the chance of using a new car park close to work for £5 per day or parking further away from work for free – but involving an extra 10 minutes walk. Their decisions reveal how much they value time. If they all choose to spend the £5 per day on car parking, this reveals that time is more important to them than 50p per minute. If only half take up the car parking option, this reveals that average value of time to them was 50p per minute. Hard choices made in markets are the best guide to private benefit. Information contained in the demand curve tells us much about how much people are willing and able to pay for something. This is important in revealed preference theory. When consumers make purchases at market prices they reveal that the things they buy are at least as beneficial to them as the money they relinquish.

Nes measuring imapct jan 2012 Nes measuring imapct jan 2012 Presentation Transcript

  • Measuring Economic Impact - Overview - January 2012 Rupert Greenhalgh Director: NES Consulting
      • About us…
      • Economic policy & strategy
      • Local economic & skills assessment
      • Project evaluation & cost benefit analysis
      • Consultancy
      • ProBono Economics
      • Think Pieces & Thought Leadership
    New Economic Strategies
  • Performance framework
      • Two key components:
      • A ‘top-down’ component:
        • monitors the changing state of conditions in the functional economic area / administrative area
        • requires the use of ‘Headline Indicators’ & ‘Condition Indicators’
      • A ‘bottom-up’ component:
        • enables the Strategy’s activities, outputs & outcomes/impacts to be assessed
        • uses appropriate ‘Response Indicators’
  • Headline indicators (1)
      • Should be embedded within the strategic process:
        • Plan > Do > Act > Check
      • Clear & robust insight into strategy’s efficiency & effectiveness
      • Outputs & outcomes aligned to overall achievements
      • Use & development of the framework will be iterative
        • Devised to yield additional information
        • What actions are more effective & efficient than others?
  • Headline indicators (2)
      • Focused on the added value of the Economic Strategy
      • Reflect the totality of value added rather than individual priorities
      • Provide an outward facing assessment of progress
      • Enable comparison of performance against other areas
      • Widely understood by Gov & business
      • Provide a common evidence base to share local economic performance with all key stakeholders
  • Headline indicators (3)
      • Delivering growth & prosperity:
      • GVA per capita (as a measure of resident prosperity)
      • GVA per worker (as a measure of employee productivity)
      • Total jobs (employee jobs located within workplaces)
      • Growth in private sector employment (representing & additional measure of re-balancing)
      • Business density (measured by the total number of businesses per 1000 population)
      • Other measures? Discuss
  • Example 1: Setting Targets and Monitoring Indicators
  • Condition indicators (1)
      • Business support
    Condition Indicator Data / definitions GVA per employment in transformational sectors £GVA in constant prices Stock of VAT registrations per 10,000 working age residents VAT registered enterprises % of small businesses in area showing GVA growth VAT registered enterprises Workforce median weekly wages All employees working within region
  • Condition indicators (2)
      • Innovation
    Condition Indicator Data / definitions Total GVA from Advanced Manufacturing £GVA in constant prices Proportion of enterprise turnover due to new or significantly improved products Local enterprise survey Perception of region as a place of innovation & business opportunity Local, national & international perceptions from commissioned surveys Number of patents granted to enterprises in the region Patents granted (not applications)
  • Condition indicators (3)
      • Entrepreneurship
    Condition Indicator Data / definitions New VAT registrations per 10,000 working age residents Working age population aged 16-64 yrs Stock of VAT registrations - cohort surviving 36 months VAT registered as % of original cohort of start-ups 36 months previous % of small businesses in an area showing employment growth % of total SME’s growing in last 12 months % of 16 to 24 year olds not in employment, education or training (NEET) National definition for NEET
  • Condition indicators (4)
      • Inward investment & place marketing
    Condition Indicator Data / definitions Number of new graduate level jobs created through inward investment each year Assisted by regional stakeholders in last 12 months Number of Foreign Direct Investment (FDI) projects in region each year New FDI projects locating within year Annual perception survey with key national (public & private sector) stakeholders Commissioned survey supported by range of qualitative measures Number of trade enquiries through inward investment agencies Monitoring information of key partners Number of targeted communications published aimed at key stakeholders Monitoring information of key partners
  • Condition indicators (5)
      • Labour market & workforce skills
    Condition Indicator Data / definitions % of working age residents qualified to Level 2+ Working age population aged 16-64 yrs % of working age residents qualified to Level 4+ Working age population aged 16-64 yrs % of working age employees in LCR qualified to Level 4+ Working age population aged 16-64 yrs % of 15 year olds getting 5 or more GCSE/GNVQs at grades A*-C Pupils in public & private education % of working age residents undertaking job related training Working age 16 to 64 years within last 13 weeks of survey
  • Condition indicators (6)
      • Major projects
    Condition Indicator Data / definitions Amount of accommodation floor-space brought forward (sq m) Commissioned survey supported by range of qualitative measures Value of Local Economic Multipliers (LM3) secured through major developments Commissioned survey supported by range of qualitative measures
  • `Strategic Added Value (SAV)
      • leadership & catalyst: demonstrating the benefits / communicating effectively development needs to stakeholders
      • strategic influence: affecting the behaviour & allocation of funds &/or activities by stakeholders
      • leverage: securing funds to contribute to wider objectives
      • collaboration: improving exchange & synergy between stakeholders, encouraging co-ordinated stakeholder activity
      • engagement: openness & involving stakeholders in the design & delivery of activities
      • empowerment: empowering responsibility to people & organisations best placed to deliver effective & efficient outcomes
      • Consultation on the condition indicators will be important to highlight that valid issues are being measured. These should be reviewed periodically to ensure they represent priorities
      • The framework should be used as a tool with local partners to negotiate and agree the outputs required to successfully contribute to the outcomes required by the strategy
      • Time must be allocated upfront to support stakeholder’s understanding of what is required to support the frameworks implementation
      • Performance monitoring will/should already be taking place. It is important that collaborative work between organisations takes place at the start to reduce costly duplication
      • Robust monitoring and evaluation processes must underpin the Economic Strategy. Systems should be put in place at the start of strategic planning to capture the outcomes of activity
    Some other considerations: Implementation
        • Other approaches:
        • Evaluation
        • Social accounting and audit
        • Logic models
        • Theory of change
        • Balanced score card (for local enterprise)
        • Local Multipliers
        • Social Return on Investment
        • CBA…
    And finally…
  • Linking project to impacts & addressing ‘gross to net’
        • What is evaluation:
        • “ a process of measuring or assessing success”
        • “ learning lessons for the future”
        • Looks critically at what has been achieved through a project, programme or other intervention
        • Other similar activities:
          • monitoring
          • performance management
    Valuing costs and benefits (1)
        • Why is evaluation important:
        • To understand impact & assess whether objectives have been met
        • To identify learning, informing strategy, resource allocation, delivery
        • To demonstrate accountability, value for money, & contribution to wider strategic objectives
        • To develop evidence for funding bids, promotions, target resources
        • Provides a rigorous framework - or ‘Logic Model’ that links project aims, inputs, outputs, outcomes, & lessons learnt
    Valuing costs and benefits (2)
    • Contextual conditions
    Policy conditions Rationale Inputs Activities Intended Outcomes Outputs Intended Impacts Programme Objectives Project:
    • Deadweight – questions about what would have happened in any case?
      • consider baseline trends, map impacts of activities, interviews with partners
    • Leakage – proportion of outputs benefiting people from outside target
      • monitoring data (e.g. jobs for local residents) or beneficiary (e.g. JSA)
    • Displacement – degree to which the project reduces activity elsewhere
      • qualitative questioning & changes in secondary data
    • Multiplier effects – the positive knock-on effects on the wider economy
      • specialist studies/methodologies (e.g. LM3), or use of benchmarks
    Valuing costs and benefits (3)
        • HMT Green Book (HMG Appraisal and evaluation): http://www.hm-treasury.gov.uk/data_greenbook_index.htm
        • Magenta Book (HMG Policy evaluation): http://www.hm-treasury.gov.uk/data_magentabook_index.htm
        • White Book (DCMS Creative Industries): http://www.compass.unibo.it/Materiali/Documenti/2007/Documenti_Mazzanti_whitebookDCMS%20UK.pdf
        • Historic Environment (Appraisal and evaluation): http://www.hlf.org.uk/aboutus/howwework/Documents/Valuingthehistoricenvironment_eftecFinal_Report.pdf
        • Assessing the Impacts of Spatial Interventions (3Rs): http://www.communities.gov.uk/documents/regeneration/pdf/156906.pdf
        • Orange Book (Appraisal and risk management): http://www.hm-treasury.gov.uk/media/A/5/managingrisks_appraisal220705.pdf
        • SROI Network and supporting training materials: http://www.sroi-uk.org/publications-uk/cat_view/29-the-sroi-guide-2009
    Resources
    • Friendly, free advice/information
    • Collaboration – research projects
    • NES Consulting
    • [email_address]
    Contact us at New Economic Strategies