2. WHAT IS DEMONSTRATING VALUE?
A framework of information that identifies and
measures the organization’s social, financial and
organizational objectives.
A composition of information that contributes to
your decision-making process.
A presentation of information that is interesting and
compelling to the audience.
www.demonstratingvalue.org
4. INFORMATION PARAMETERS:
Business performance
Numbers, trends and key business elements of your
enterprise.
e.g. Net revenues, sales activity
Mission performance
Information, stories on how your enterprise is supporting the
mission, vision, values of the organization.
e.g. Environmental practices, program activity
Organization sustainability
Identifies and measures the resources that are being
developed to meet your objectives in the long-run.
e.g. Level of management skills, team development practises.
5. WHAT IS THE RIGHT INFORMATION?
It can be easily interpreted and communicated by
others.
It is reasonable to gather and maintain.
It represents both qualities of the change (how
well), in addition to the quantities (how much).
6. WHAT IS THE RIGHT INFORMATION?
It is insightful and supports your decision making
process.
The information can be compared from one year
the next or to industry standards.
The information is precise and can be validated.
The findings are interesting both to the organization
and external viewers.
7. BUSINESS PERFORMANCE MEASURES
Customers, Marketing, Sales
Customer/market development
Value of sales
Financial Management
Revenues/Expenses
Profits (compare gross revenue with net revenues)
Cash flow
Operations
Production Efficiency
New programs/services/products
Safety
8. MISSION PERFORMANCE MEASURES
Mission, Vision and Values
How is the activity is contributing to the social objectives
of the organization and or the social enterprise?
What supports (if any) are being provided that would
most likely not be available to a for-profit for the same
type of enterprise ?
What are the outcomes of the supports that are being
provided, to individuals, the organization and the
community?
9. ORGANIZATIONAL SUSTAINABILITY MEASURES
Human Capital
Describe the skill development of the people involved in the
social enterprise.
Organizational Capital
Illustrate the systems & practices required to get things done
& do them well & consistently.
Financial Capital
Demonstrate the financial health of the organization.
Social Capital
Identify the number & quality of the S.E.’s relationships.
Intellectual Capital
Explain the knowledge assets of the organization e.g. ideas,
inventions, general knowledge, designs & processes.
10. STEPS IN THE DV PROCESS
Enterprise Mapping.
Identify the information collection process.
Create a Blueprint document.
Design Social Enterprise Snapshot.
Monitor & revise the Snapshot as required.
11. STEP 1: ENTERPRISE MAPPING
Map a picture of what the enterprise does and
wants to do. Include:
Who are the stakeholders?
What are the goals?
What activities need to be measured?
What information is essential in knowing whether goals
are reached?
The selected information is then prioritized and
linked with who needs to know & be shown this
information.
12. STEP 2: IDENTIFY THE INFORMATION
COLLECTION PROCESS
Determine how the information needs will be met.
What are the key indicators?
How will the info be gathered?
How often will it be gathered?
Focus on information that will go into the snapshot.
Develop an action plan and timeline around
information collection.
13. STEP 3: DEVELOP AN INFORMATION
BLUEPRINT
The Blueprint is a document that shows:
The summary & overview of your specific goals.
The activities and outcomes linked to the goals.
The specific information you need to measure
performance and communicate the results.
How the information will be tracked and monitored.
14. STEP 4: DESIGN SOCIAL ENTERPRISE
SNAPSHOT
The snapshot is the actual reporting document/tool.
Steps to prepare include:
Determine how will the snapshot be used.
Identify the format & structure of the snapshot.
Determine the software that will be used to develop the
snapshot.
Word, Excel, Crystal Reports and Xcelcius.
15. STEP 5: MONITOR AND REVISE THE
SNAPSHOT AS REQUIRED.
Get feedback from your audience.
Streamline, refine and improve existing systems
(accounting , record keeping, surveying , data
management).
Develop new systems according to priorities
outlined in the Blueprint.
Refine and improve the Snapshot
16. TRUE COST ACCOUNTING
To realize the true cost of a social enterprise it is
important to differentiate between the different costs
and contributions you incur.
Components of True Cost Accounting:
Direct Business Costs
Indirect Costs
Social Costs
In-Kind Contributions
Subsidies & Grants
Hidden Costs
17. WHY USE TRUE COST ACCOUNTING?
To be concise about:
The profitability of the enterprise.
Pricing your products and/or service.
Determining your breakeven point.
Identifying the appropriate funding needs.
Evaluating the enterprise correctly.
Recognizing the social costs of the enterprise.
18. TYPES OF COSTS
Direct Costs – traced directly to a particular activity, can
be assigned to that activity relatively easily & with a high
degree of accuracy. (supervision directly related to
product or service production)
Fixed Costs – costs that will not vary in the short-term or
within a defined range of activity. (rent/utilities).
Variable Costs – Costs that vary in direct relation to the
level of activity.
Indirect Costs – Costs integral to running the business
but are not readily tied to a particular
activity.(administration, banking charges)
19. TYPES OF COSTS CONTINUED.
Social Costs – Premium or additional costs
incurred above core business costs.
Additional Supervisor time
Wastage
Lower level of employee productivity
Organic ,locally grown food or heritage seeds
Hidden Costs & Contributions – Resources used/costs
incurred that are not directly paid for by the enterprise.
Office supplies
Volunteer time
20. STEPS FOR TRUE COST ACCOUNTING
Enter data from Income Statement.
Identify & quantify hidden costs & contributions.
Identify & quantify social Costs.
Prepare & review adjusted statement & summary
reports.
www.demonstratingvalue.org
