Impact of Impact Jim Clifford email: email@example.com mobile: 07860 386081
• Jim Clifford is Head of Non-Profit Advisory Services at leading Third sector advisors and auditors, Baker Tilly. • Jim has authored a range of high-profile Social Impact studies, and been instrumental in developing methodologies to make them more accessible • He is a Visiting Fellow at Cass Business School where he is undertaking research into evaluative protocols for transactional decision making (linking Social Impact with conventional valuation and brand valuation). • He is a director of the Centre for Public Scrutiny, an independent charity which supports scrutineers and thewww.cass.city.ac.uk development of approaches to scrutiny in public sector and other bodies . • The views expressed in this paper are the author’s own, and do not imply any corporate position by Baker Tilly, www.cfps.org.uk Cass Business School or its academic staff, or of CfPS.
Impact of Impact...• Why is understanding impact important and for whom?• Use of impact as an influencing tool: • Internally • Externally• Using Impact to manage funding for PBR (New Social Finance and SIBs)
Outcomes measurement......• SROI is increasingly being recognised• Government moves towards project-based, or outcomes-linked payment • “Outcomes-based Government” report from CSJ• Increasing recognition of • the need for clear measurement and • the acceptance of this approach
Measuring outcomesImportance of financial measures: • to funders in Government • for prioritisation decisions • for delivery measures in contracts • to philanthropists • in competing for capital • ..and in public scrutiny
Typology of measurement protocols• Cost-based (e.g. Green book)• Limited outcomes (e.g LM3/Global Reporting Initiative)• Full(er) outcomes (e.g. SROI/GRI)• Performance/QA evaluations (e.g. PQASSO/ SE Balanced scorecard)• Feedback systems (not generally branded) ..what about SROI lite and similar ?
Developing your own understanding...• What change/outcomes does your work achieve (short / long term)?• Understanding how that change is achieved• And for whom (direct and indirect beneficiaries)?.... who benefits and how? Inputs to Activities to Outputs to Outcomes to Impacts Primary Secondary
SROI (or others) as an influencing tool...External view:• Deepening other organisations’ understanding of your work• Highlighting the value to defend against cuts or unlock new funding Influence on funders Alliance of SSCs and BIS Alana House and MoJ Influence in restructuring the SSCs and the change in the White Paper in 2009 landscape Foundation of feedback through UKCES on SfH and SfC for DoH consultation paper “Liberating the NHS: Developing the Healthcare Workforce”; PACT Domestic Adoption Influence on project partners Various, inc SSCs, NLL, PRTC Influence on LA funders Witney, NLL and various others Use as agents for change in policy Adoption network around PACT’s SROI and BBC2 “A influence networks Home for Maisie” – see http://www.baaf.org.uk/node/3356
SROI as an influencing tool...Internal view:• Deeper understanding of how change is achieved• Developing relevant performance measures to monitor impact• How can we do the same (or more) for less?• Understanding which projects achieve the most to support prioritisation of scarce resource• Identify new opportunities Influence on project managers seeking Most of the studies done, for example to increase impact Witney Children’s Centre Influencing prioritisation decisions Various, inc SSCs Influence the development of new PACT (CVAA) services
Social Finance models: the SIB • Issuer defines terms • Multi-party funding; same terms • Application for specified social purposes (Impact) • Investor reward balance
From a 3-D Typology of SIB-style funding.... Bridging Regular or to PBR With deferred No profits Capital interest Variable Special Fixed interest donors interest Repayable Equity Permanent Listed (regular or risk capital bullet)
Payment by Results – linking funding to Impact• Why PBR ?• Economic trade• Meaningful measures• Measuring what matters: “Informed” Outputs Inputs to Activities to Outputs to Outcomes to Impacts
Funder marketsMatch the project to the fundermarket: • Public funds • Third Sector • Corporates • Individuals THINK...... • Project • Family offices • Provider • Purpose • Presentation
Why now?• Impact measures are increasingly expected…• Are a valuable strategic tool…• And are intrinsically linked to Social Finance structures …Be part of developing the agenda now or wait until someone else imposes theirs on you…