SlideShare a Scribd company logo
1
Russ Wood, Latitude Network
Dave Wells, MCM
Latitude Network & Melbourne City Mission
2
Latitude Network
● Consultants & Advisers
● Founded in 2017
● Outcomes-based contracting and
funding specialists
MCM
● Victoria’s oldest charity, founded
in 1854 by Hester Hornbrook
(philanthropist) & Dr John
Singleton (medical doctor)
● Services specialising in young
people, trauma and disability.
● Traditional NFP looking to re-think
and reposition itself with
innovative funding models and
service design; driving into
outcomes measurement and
accountabilities more widely than
just this SIB.
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
MCM & Latitude Network - The journey so far
3
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
Let’s start with some definitions...
4
ESG
(Environmental, Social, Governance)
Partnerships Addressing
Disadvantage (PADs)
Payment-by-Results
Socially Responsible
Investing
Impact screening
Impact investing
Social Finance
Outcomes-based fundingSustainable investing
Investment approach
Social Impact Bonds
(SIBs)
Outcomes-based contracting
Social Benefit Bonds (SBBs)
Social impact investing
Pay-For-Success
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
Social Finance Spectrum
5
Granting
Strategic
granting (multi-
year,
unrestricted)
Govt tenders/
contracts
Fundraising
(restricted)
SIBs
SBBs
PADs
PbR
PFS
SRI
ESG
Impact investing
Impact screening
Traditional
Philanthropy
Outcomes-Based
Contracting &
Commissioning
Traditional Social
Services
Impact Investing
Financial Return
ProvenSocialimpact
High
HighLow
Low
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
What makes a good Social Impact Bond/Outcomes-Based Contract candidate?
6
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
Social Impact Bonds - the story so far
7
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
SIBs - In summary
8
What do we like
about SIBs?
What don’t we
like about SIBs?
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
Where have we started - what lens are we using?
9
Finance
driven
Social-
solution
driven
SIMNA Vic Nov 2019
‘...the model has been promoted as a financial instrument rather than “a way of developing
an outcomes-based contract to address social issues.”’
- UK Dept forDigital,Culture,Media & Sport report,November2019
Dave Wells & Russ Wood
Building more diving boards
10
Social Impact Bonds
Outcomes performance
system
10m
2m
6m
Outcomes learning labs
Incentive-based contracts
Pool
deck
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
What’s next? Trends overseas.
11
Development
Bonds
Private
insurers
‘Rates
Cards’
Outcomes
Funds
Advancements based on SIBs
Outcomes-Based
Partnerships
New methods
Outcomes-Based
Infrastructure
Performance-
Management of
Mission
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
SIBs vs Outcomes-Based Partnerships
12
Provider Government
Provider | Government
SIBs
OBP
SIMNA Vic Nov 2019
Dave Wells & Russ Wood
Preparing for an outcomes future
13
Outcomes-Based Data and
Performance
Reframing existing
contracts
Govt re-tendering
processes
Applying for existing
outcomes tenders (SIBs)
Using your balance sheet
- Outcomes-Based
Infrastructure
Solo - Start now... With Govt - wait or invite
Pitching outcomes
partnerships with Govt
SIMNA Vic Nov 2019 Dave Wells & Russ Wood
Why start now
14
Mission
Performance
Money
SIMNA Vic Nov 2019 Dave Wells & Russ Wood

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'Beyond Social Impact Bonds' - Outcomes-Based Contracting

  • 1. 1 Russ Wood, Latitude Network Dave Wells, MCM
  • 2. Latitude Network & Melbourne City Mission 2 Latitude Network ● Consultants & Advisers ● Founded in 2017 ● Outcomes-based contracting and funding specialists MCM ● Victoria’s oldest charity, founded in 1854 by Hester Hornbrook (philanthropist) & Dr John Singleton (medical doctor) ● Services specialising in young people, trauma and disability. ● Traditional NFP looking to re-think and reposition itself with innovative funding models and service design; driving into outcomes measurement and accountabilities more widely than just this SIB. SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 3. MCM & Latitude Network - The journey so far 3 SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 4. Let’s start with some definitions... 4 ESG (Environmental, Social, Governance) Partnerships Addressing Disadvantage (PADs) Payment-by-Results Socially Responsible Investing Impact screening Impact investing Social Finance Outcomes-based fundingSustainable investing Investment approach Social Impact Bonds (SIBs) Outcomes-based contracting Social Benefit Bonds (SBBs) Social impact investing Pay-For-Success SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 5. Social Finance Spectrum 5 Granting Strategic granting (multi- year, unrestricted) Govt tenders/ contracts Fundraising (restricted) SIBs SBBs PADs PbR PFS SRI ESG Impact investing Impact screening Traditional Philanthropy Outcomes-Based Contracting & Commissioning Traditional Social Services Impact Investing Financial Return ProvenSocialimpact High HighLow Low SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 6. What makes a good Social Impact Bond/Outcomes-Based Contract candidate? 6 SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 7. Social Impact Bonds - the story so far 7 SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 8. SIBs - In summary 8 What do we like about SIBs? What don’t we like about SIBs? SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 9. Where have we started - what lens are we using? 9 Finance driven Social- solution driven SIMNA Vic Nov 2019 ‘...the model has been promoted as a financial instrument rather than “a way of developing an outcomes-based contract to address social issues.”’ - UK Dept forDigital,Culture,Media & Sport report,November2019 Dave Wells & Russ Wood
  • 10. Building more diving boards 10 Social Impact Bonds Outcomes performance system 10m 2m 6m Outcomes learning labs Incentive-based contracts Pool deck SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 11. What’s next? Trends overseas. 11 Development Bonds Private insurers ‘Rates Cards’ Outcomes Funds Advancements based on SIBs Outcomes-Based Partnerships New methods Outcomes-Based Infrastructure Performance- Management of Mission SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 12. SIBs vs Outcomes-Based Partnerships 12 Provider Government Provider | Government SIBs OBP SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 13. Preparing for an outcomes future 13 Outcomes-Based Data and Performance Reframing existing contracts Govt re-tendering processes Applying for existing outcomes tenders (SIBs) Using your balance sheet - Outcomes-Based Infrastructure Solo - Start now... With Govt - wait or invite Pitching outcomes partnerships with Govt SIMNA Vic Nov 2019 Dave Wells & Russ Wood
  • 14. Why start now 14 Mission Performance Money SIMNA Vic Nov 2019 Dave Wells & Russ Wood