Speaker at CFG's Annual Conference 2012

1. Impact of Impact
Jim Clifford
email: jim.clifford@bakertilly.co.uk
mobile: 07860 386081

2. • 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 the
www.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.

3. 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)

4. 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

5. Measuring outcomes
Importance 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

6. 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 ?

7. 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

8. 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

9. 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

10. Social Finance models: the SIB
• Issuer defines terms
• Multi-party funding; same
terms
• Application for specified
social purposes (Impact)
• Investor reward balance

11. 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)

12. 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

13. Funder markets
Match the project to the funder
market:
• Public funds
• Third Sector
• Corporates
• Individuals THINK......
• Project
• Family offices • Provider
• Purpose
• Presentation

14. 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…

15. For more information contact:
Jim Clifford
Head of Not for Profit Advisory Services
Baker Tilly
Email: jim.clifford@bakertilly.co.uk
Mobile: 07860 386081
Direct dial: 01923 657805
© 2008 Baker Tilly UK Group LLP, all rights reserved
Baker Tilly Tax and Advisory Services LLP, Baker Tilly UK Audit LLP, Baker Tilly Corporate Finance LLP, Baker Tilly
Restructuring and Recovery LLP and Baker Tilly Tax and Accounting Limited are not authorised under the Financial Services and
Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are
members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are
an incidental part of the professional services we have been engaged to provide.
Baker Tilly & Co Limited is authorised and regulated by the Financial Services Authority to conduct a range of investment
business activities.