Measuring the social return of investment for public services across the Black Country, UK.

1. About Social Return of Investment (SROI)
Use Sinzer (SROI) software to gather and manage Social Value
Information for Social Intervention Projects

2. ✓ SROI government endorsed approach to program, project and policy evaluation
✓ SROI aims to account for non-financial outcomes using monetary values to represent them
✓ SROI measures extra-financial value relative to the resources invested
✓ SROI values material costs and benefits to key stakeholders on a single monetary scale
✓ SROI is a way of reporting on value creation
✓ SROI offers a consistent approach with standard steps
✓ SROI analysis is stakeholder centric
✓ SROI analysis informs practical decision making
SROI software is used to:
‣ Manage information when commissioning a service
‣ Evaluate the impact you deliver
‣ Identify ways to improve performance
‣ Enhance the performance of your investment
Social Return of Investment (SROI)

3. About Sinzer SROI software
✓ Social Value Act Review (2015): Sinzer SROI software as the
most effective method for gathering and managing social value
information
✓ Social Impact Bonds: “SROI is the most holistic and
participatory method of impact measurement, and quantifies
outcomes beyond those deemed valuable to the commissioner”
Knowledge Box guide to developing a SIB
✓ Social Value International: Seven Principles of Social Value
✓ Sinzer SROI software: Used internationally by over 400
organisations
Benefits:
‣ Efficient data entry
‣ Online surveys to engage stakeholders
‣ Clear dashboard to clarify and present findings

4. Forecast
✓ Manage information about the service you intend
delivering
✓ Predict how much social value will be created if the
activity meets its intended outcomes
Evaluation
✓ Manage information and consult with stakeholders
during the intervention
✓ Acknowledge its actual social, environmental and
economic impact
✓ Cross reference intended Outcomes against actual
Outcomes
Two types of SROI

5. ✓ The National Government of the Netherlands (where Sinzer Impact Software
operates) made SROI mandatory for all public procurement activity in 2011
✓ 79% of Dutch municipalities implemented Social Return of Investment analysis
during 2014
✓ SROI analysis supports public services ability to improve performance and highlight
added value created by the activity
✓ SROI is a key evaluation tool
‣ Deciding where to invest
‣ Assess program progress
‣ Assess the value the investment creates over time
SROI analysis towards a sustainable future

6. Social Value Act: information and resources www.gov.uk
Value for money: Circle Housing
For one of their eighty employment and skills programmes, they calculated an SROI of £5.40
(£75,470 divided by £14,000 gives a ratio of 1 to 5.4)
For every £1 invested the programme created £5.40 worth of social value
‣ Input: £14,000 (£10,000 project funding plus £4,000 staff costs)
‣ Output: 80 people accessed the programme
‣ Outcomes: 10 people into employment including 3 NEETs,
22 people accredited training
13 people further education
25 people volunteer work placements
30 people increased confidence in their abilities
‣ Impact: the programme created £29,141 JSA savings. £16,500 NEETs. £5,131 for NVQ level 1
accreditation. £12,698 reduced NHS cost for depression (identified at start)
SROI Case Study

7. Recommended action
Best Practice:
✓ Identify: the programme for SROI
study
✓ Forecast SROI: at commissioning
✓ Deliver: the programme
✓ Evaluation SROI: after an extended
period while operating

8. Result
✓ View the outcomes of a complete SROI study
✓ Potential for embedding SROI Social Value practices into the
commissioning process
✓ See how using SROI software demonstrates the social value of a project
✓ See how using SROI software supports its continued delivery
✓ Meet with Outcomes based funding requirements
✓ See how using SROI software highlights information that otherwise
would not have been gathered
“Be part of the solution, Know Your Impact”

9. References
‣ http://www.legislation.gov.uk/ukpga/2012/3/enacted Public Services (Social Value Act) 2012
‣ https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/403748/Social_Value_Act_review_report_150212.pdf
Cabinet Office - Lord Young’s Social Value Act Review Report (2015)
‣ https://www.en.sinzer.org/guides. About SROI Information Guides (1 March 2019)
‣ https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/646733/Knowledge_Box_Guidance_on_developing_a_SIB.pdf
Knowledge Box - Guidance on developing a Social Impact Bond (1 March 2019)
‣ https://socialvalueint.org/social-value/principles-of-social-value/ Social Value International ‘Principals of Social Value’ (1 March 2019)
‣ http://www.socialvalueuk.org/resources/ Social Value UK ‘The Guide to Social Return on Investment’
‣ https://www.gov.uk/government/publications/social-value-act-information-and-resources/social-value-act-information-and-resources
Case Study: Value for money - Circle Housing
“Circle Housing’s repairs and maintenance service is on track to realise around £80 million worth of cost saving over 10 years, subject to market conditions and fluctuations. They
rationalised their contracts whilst mandating social objectives within their procurement model (e.g. they secured 1 apprenticeship for every £0.5 million worth of contract). The said
activity created social value through the supply chain and was funded by the supplier (which would have otherwise been funded by Circle Housing). Circle Housing used monetary
values or financial proxies from the HM Treasury Green Book to acknowledge their social return on investment (SROI).” (1 March 2019)
‣ https://sustainabilityknowledgegroup.com Sustainability Knowledge Group - Social Return of Investment (SROI) and its value towards a sustainable future (22 January 2019)
Date: 06 March 2019 Social Impact Research Catherine Sweetman M.A.