Social Value and Local Commissioning Joelle Bradly Research and Insight Team Chief Executive’s Department Leicestershire County Council
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 value1. 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 change Inputs>> outputs>>outcomes Chain of events Short term outcomes>> Medium term outcomes >> Long term outcomesTest 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 indicator New 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 ofnon-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? Test for materiality-Is the impact that results from the activity still significant?How does the value compare to the investment?
7 principles of Social 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 3. Evidencing1.Establishing scope and 2. Mapping outcomes identifying outcomes and giving key them astakeholders value 4. 6.Reporting, 5. Establishing using and Calculating impact embedding the SROI
SROI Examples 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 Value to different stakeholder groupsPrimary 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 peopleTertiary benefitso Improved access to emotional support for young people
For each £1 invested in Warning Zone mentoring between £3 and £4 is returned in social value Value to different stakeholder groups Value Stakeholder £23,453 Children £7,112 Police / Districts £358 ParentsInputs = CS funding (£3,000), volunteers, schoolsPrimary benefits of Warning Zone in Harborough:-Young people are aware of risks and able to make informed decisions regarding theirown safetySecondary Benefits:-Reduced cost of ASB
For each £1 invested in Twenty Twenty mentoring approximately £3 is returned in social value Value to different stakeholder groups Value Stakeholder £193,606 Young People at risk £22,351 Police £16,704 DWP £10,753 Mentors £5,387 ParentsInputs = Funding (£45,000), volunteersPrimary 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 strongSecondary Benefits:-Reduced cost of ASB-Reduced cost of NEET young people
5. How can social value beconsidered 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 valueWho 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 yourtheory of change• Manage known and potential negativeimpacts• Understand enablers and preventers ofchange• Focus on outcomes that create the most value