SROI - Moving the conversation from cost to value - SiMPACT


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Presented by SiMPACT Strategy Group's SROI Team Lead Anne Miller on June 11, this presentation offers a quick overview of the Social Return on Investment methodology and how it is being used to communicate the value of social change.

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  • Mike to insert an excel file onto your computers during the break. Then we will start constructing the model.
  • Mike to insert an excel file onto your computers during the break. Then we will start constructing the model.
  • Over 40 SROI case studies since 2001Programs ranging from homelessness prevention and services, childhood mental health, community recreational hubs for low income communities. Portfolio City of Calgary supported capacity-building workshops 2008 & 2009, 28 agencies involved, 40 people trained.Safe Communities Innovation Fund (SCIF) 88 SCIF agencies trained, 175 people (ongoing)Clients across Canada Vancouver, Calgary, Edmonton, Washington DC, Saint John NB, Halifax, St. John’s NFLD, Toronto, Ottawa, and Montreal.Building SROI Canada, practitioner accreditation, financial proxiesCanada’s first and second accredited SROI practitionersFacilitator of LBG Canada, a network of companies seeking to maximize the impact of community investment – for society and for the business thereby setting the highest standard in community investment management, performance measurement and reporting in Canada.
  • SROI - Moving the conversation from cost to value - SiMPACT

    1. 1. 1Have you measured your SiMPACT today?Introducing SROIMoving the Conversation from Costto ValueCanadian Evaluation SocietyConference 2013June 11, 2013Anne MillerSiMPACT Strategy Group
    2. 2. 2 www.simpactstrategies.comAgenda• Introductions• SROI Definitions and Overview• Understanding the SROI Process• Application of the SROI Methodology – Where and howis it being used?• Additional Resources• Questions and Discussion
    3. 3. 3 www.simpactstrategies.comIntroductionsPortfolio &ProjectPerformanceMeasurementLeadership inReporting &CommunicationsNetwork ofProfessionalsThe Highest Standard inCommunity Investment.Social ValueCreation, Measurement &Evaluation• Social Return on Investment (SROI)• Community investment measurement &evaluation• CI/CSR management systems• Education & skill development acrosssocial-purpose organizationsSiMPACT Strategy Group is a founding Network Partner of:
    4. 4. 4 www.simpactstrategies.comWho is Seeking to Value Impact?Third Sector Public Sector Private SectorEntrepreneursConvenors
    5. 5. 5Have you measured your SiMPACT today?Definitions and Overview
    6. 6. 6“SROI measures change in ways that are relevant to the peopleor organisations that experience or contribute to it. It tells thestory of how change is being created by measuringsocial, environmental and economic outcomes and usesmonetary values to represent them. This enables a ratio ofbenefits to costs to be calculated.”Nicholls et al. A Guide to Social Return on Investment. (April2009: Office of the Third Sector): 8What is Social Return on Investment?
    7. 7. 7 www.simpactstrategies.comPurpose of SROI?• To assign value to social change• To enhance communications• To forecast potential value• To evaluate the value of an investment• To make a business case for investment• To improve processes and practices
    8. 8. 8 www.simpactstrategies.comAn SROI is …. An SROI is not ….• A framework to gather investmentinformation, evaluation results anddescribe what occurred as a result• A method to ensure that the storyof social value creation ispresented in terms that a cross-section of interests can understand• Constructed upon the frameworkof an outcomes model• Necessary if social value is to bepresented in relation toenvironmental and financial• A calculator• A tool for comparison of programsbased on return ratios• A replacement for evaluationtools (it is an informationframework)• Useful for every investment orsituation• Difficult, as long as the guidinglogic model and outcomesframework are clear, and anevaluation system is either inplace or envisaged
    9. 9. 9 www.simpactstrategies.comEnhancing, not replacing current practiceLinking LogicModel, EvaluationPlan, Tools & SROILogic ModelDraft EvaluationPlanForecast Value(SROI)EnhancedEvaluation PlanEvaluation ToolsChange resultspopulate SROIforecastSTART HERE
    10. 10. 10 www.simpactstrategies.comSROI Today
    11. 11. 11Have you measured your SiMPACT today?Understanding the SROI Process
    12. 12. 12 www.simpactstrategies.comSROI: A Principles-based Approach• Involve stakeholders• Understand what changes• Value the things that matter• Only include what is material• Do not over-claim• Be transparent• Verify the result
    13. 13. 13 www.simpactstrategies.comFive Fundamental Questions• Who changes? Who are the target stakeholders?• How do they change? What happens to them? What wouldotherwise happen to them?• How do we measure the change? Which indicators willillustrate change? Over what time period?• What would have happened without intervention? What arethe long-term impacts and costs of non-intervention?• What is the change worth? What would your stakeholders tellyou?
    14. 14. 14 www.simpactstrategies.comSROI Steps1. Establishing Scope and identifying stakeholders: Develop Theory ofChange summary statement, consider timeframe, determine scope2. Mapping Outcomes: Consider what changes and what the alternativewould have been3. Evidencing outcomes and giving them a value: Find appropriateindicators and financial proxies4. Establishing Impact: Discount for attribution, deadweight,displacement, drop-off5. Calculating the SROI: Determine the SROI ratio6. Reporting, using, and embedding: Communicate the results, continuedevelopment, enhance practice
    15. 15. 15 www.simpactstrategies.comStep One: Establish Scope,Identify StakeholdersWhat is the program that will be analyzed?Who are the target stakeholders?Is it evaluation or forecast?Who is the intended audience?What happened because of the program?What would have happened in the absence of the program?Who else will be affected?
    16. 16. 16 www.simpactstrategies.comStep Two: Mapping OutcomesStakeholder Activity Output Outcomes Indicator AlternativeOutcomesWho isengaging inthe activity?What are theydoing?What are thedirect resultsof the activity?What change isthe stakeholderexperiencing?How do youknow the changehas taken place?What would havehappened withoutyour program?• More detailed than a logic model• No differentiation between short, medium, and long term outcomes• Listing of alternative outcomes• Ideas for valuation and inclusion in calculations
    17. 17. 17 www.simpactstrategies.comStep Three: Evidencing Outcomes andGiving Them a ValueAssigning financial proxies to outcomesWhat is a ‘financial proxy’?Financial proxies are estimates of financial value where it is notpossible to know an exact value, such as with social returns and so arecritical for accurately estimating Social Return on Investment.
    18. 18. 18• Value created from the outcomes achieved• Value created by avoiding the alternative• Value from the stakeholder’s perspectiveThe SROI Canada Network administers a Financial Proxy Database that can be used to find usefulvalues that relate to the pubic sector in Canada.Step Three: Evidencing Outcomes andGiving Them a Value
    19. 19. 19 www.simpactstrategies.comSROI Canada Financial ProxyDatabase• Currently free public access• Membership in SROI Canada• Development of localresearch across Canada• Development of subject-specific research• Sharing of ideas for casestudies• Submission of proxiesthrough SROI Canadawebsite
    20. 20. 20 www.simpactstrategies.comThe database
    21. 21. 21 www.simpactstrategies.comStep Four: Establishing Impact1. Timeframe: How long will each change last without further investment ?2. Drop off: Will the effects of the program diminish over time?3. Attribution: What portion of the change was due to the work of someoneelse?(i.e. other initiatives, partners outside your budget, referralsystem, momentum from another source)4. Deadweight: What portion of the change would have happened anyway?(i.e. would anyone have made the change without you?)5. Displacement: Was any other positive activity displaced in order to achievethe outcomes? Were there unintended outcomes?
    22. 22. 22 www.simpactstrategies.comStep Five: Calculating the SROI Ratio• Divide all value created by the total investment to receive an XX : 1 ratio (ademonstration of the return for each dollar invested)• It shows the ratio between the amount invested and the amount created in socialvalue (or the amount systemically saved)• Ratios cannot be compared between programs unless the programs are verysimilar, addressing the same social issue, and working with the same stakeholders
    23. 23. 23…a Story Not a NumberStep Six: Reporting, Using, Embedding
    24. 24. 24Have you measured your SiMPACT today?Application of SROI MethodologyWhere and how is it being used?
    25. 25. 25 www.simpactstrategies.comIndividual Program Evaluation orForecast
    26. 26. 26 www.simpactstrategies.comUnderstanding Asset Management
    27. 27. 27 www.simpactstrategies.comSROI Across Multiple Programs• Demonstrating a range of value• Avoiding comparison of ratios• Speaking to the value of a sectoras a whole
    28. 28. 28 www.simpactstrategies.comSROI Across Multiple Programs• Chosen as a result of value notclearly understood• 19 sites, 5 chosen as participants• Combined consulting & capacity-building• Results of each SROI thencombined into program-widereport• Results confirmed with agenciesto ensure value representedagency and client perspectives
    29. 29. 29 www.simpactstrategies.comEvaluation of a Range of Investment• Premier Redford set up Safe CommunitiesSecretariat, including $60 million for CrimePrevention Initiatives• 88 Projects Required to Forecast Value andIntegrate SROI into Evaluation Plans• Three years of training, set up, progresssupport, research and knowledge sharing• Changing the nature of inter-departmental conversations about investmentin social initiatives
    30. 30. 30 www.simpactstrategies.comWhat SROI Users are Saying05101520253035404550Understanding ofvalue of outcomesCommunicatingvalueIncreased staffmoraleProgram deliveryimprovementUnderstanding ofvalue experiencedby clientsUnderstanding ofvalue experiencedby othersSROI Benefits (experienced or anticipated)
    31. 31. 31Have you measured your SiMPACT today?Additional Resources
    32. 32. 32 www.simpactstrategies.comSROI Canada
    33. 33. 33 www.simpactstrategies.comSROI Canada Network• Accreditation training: 90participants across Canada to date• Methodology hub and website: 494visits in May• Financial Proxy Database: 130members• LinkedIn Group: 326 members• Connection with International SROINetworkActivitiesFounding Partners
    34. 34. 34 www.simpactstrategies.comFacilitation of Accreditation• Accreditation training• Practitioner database• Connection toInternational SROINetwork
    35. 35. 35 www.simpactstrategies.comPractitioner Database• To develop a databasefor SROI practitioners• To identify accreditedpractitioners• Submit at:
    36. 36. 36Have you measured your SiMPACT today?Questions?