LER Thyrza A.D. Kleine 692070

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Preface
LYCAR involves the final phase before obtaining a Hotelschool The Hague’s’ Bachelors
Degree, where student have to prove that they have reached Bachelor Level in order
to transition successfully into the hospitality industry.
This course allows students to decide which management placement and research
project they would like to take on, thanks to the personalized graduation process.
The conditions applied to ensure quality and consistency throughout the entire phase
includes the following:
• External component, allowing for improved practical experiences during
management placement
• Research component, which underpin the professional products
• Three conditions, which include hospitality, international and management
level
Before starting with these conditions, students have to complete a Career Launching
Plan (CLP), in which they explain which plan is formulated to accomplish their
desired career with the help of determining the professional products.
Students, who are able to achieve the previously mentioned criteria along with
logical reasoning and reflection, will be able to be part of a final defense to graduate.
Abbreviations
LAA Lentil As Anything
PAYF Pay-As-You-Feel
SROI Social Return On Investment
MRQ Main Research Question
HQ Head Quarters
CLP Career Launching Plan
PDC Professional Duty Category
SOP Standard Operating Procedures
POS Point Of Sale

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Executive Summary
With this report I aim to assure my assessors that I, Thyrza Kleine, am prepared to
transition into the hospitality industry after graduation by demonstrating how I think
and perform at Bachelor Level.
I will do so by presenting how I have respected the criteria of this final course,
LYCAR, by including the two required components (research and external), the
finalized professional products underpinned by the chosen PDCs as well as a
reflection and review of the entire execution process.
Research Project
After obtaining a management internship at a social enterprise called Lentil As
Anything (LAA), I was also able to conduct research for them, which involved a
Social Return On Investment (SROI) analysis. SROI tells the story of how a social
enterprises’ social value is being created through the measurement of social,
environmental and economic outcomes using monetary values to represent those
outcomes (The SROI Network, 2010).
Social enterprises aim to achieve a different type of value when compared to
commercial enterprises, known as social value. After discovering that LAA does not
have the means to measure this value, I decided that LAA would benefit greatly from
this project, therefore changing my initial plans to conduct a strategic plan to
increase customer donations. This analysis led to LAA being able to prove its social
impact for the first time in the hopes of gaining more funding and donation
opportunities as well as a clear overview on how they can improve to continuously
maximize their social value henceforth.
The main research question (MRQ) includes:
“What is LAA’s current social return on investment (SROI) and which
strategic recommendations will allow for maximizing social value within 3-5
years?”
It started with pre-field research to familiarize with this fairly new concept to
measure social value. Then I conducted quantitative research with the help of 240+
customer surveys to determine which customers are seen as the beneficiaries, which
include customers visiting at least once a week, labeled as regular customers.
Finally, regular customers, regular volunteers, disadvantaged volunteers turned paid
staff and government were concluded as the beneficiaries of this report.
This is followed with qualitative research including five focus groups and 30-40 one-
on-one interviews for stakeholder engagement to discover the social outcomes LAA
has created over the course of 1 year (July 2013-June 2014).
Given that LAA entails a step-by-step procedure, meant that new data was
constantly provided in each stage and used in the upcoming stages. Thus, the six
stages to get to the final SROI ratio includes: 1) Establishing Scope & Engaging
Stakeholders, 2) Mapping Outcomes, 3) Evidencing Outcomes & Giving Them Value,
4) Establishing Impact, 5) Calculating SROI Ratio and 6) Sensitivity Analysis.
The Four Domains of Outcomes discovered from the Theory of Change model (story
of how LAA creates social value) included increased social inclusion for regular
customers, increased employability for volunteers, increased employment for
disadvantaged volunteers turned paid staff and finally increased government cost
savings for the government.

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Each domain represented numerous related outcomes, which included a total of 12
outcomes that were paired with financial proxies to give them value. Finally, the
summed up social value of $15,382,211.07 was divided with the input costs of
$2,627,033.66, which involved volunteer time and numerous forms of donations.
After completing all six stages, the final SROI ratio suggests that for every Australian
dollar invested into three of LAA’s restaurants, it produces $5.86 in social return,
therefore completing one part of the MRQ.
Many organizations claimed that SROI led to reinforcing the ability to participate in
strategic planning, thanks to the analysis evidencing, in an organized structure, what
the outcomes and impact are and how it is achieved (Social Ventures Australia
Consulting, 2012). This is why I was able to formulate strategic recommendations to
help my client accomplish its goals of proving and improving its social value.
First, recommendations as an enhancement in main stakeholders participation are
presented, showing which methods should be used when proving its social impact
per stakeholders to increase donations.
E.g. with customers, LAA should adopt trends such as Social Flow, which uses real-
time data to control what and when to publish to LAA’s social media properties to
guarantee maximized reach and customer engagement (Social Flow, 2014).
Recommendations for volunteers include, engaging stakeholders continuously,
allowing volunteers to understand and become deeply engaged with the social value
they help to create, and resulting in a highly motivating team. With the final
stakeholder, government, I advised my client to post real-time expenses and
donations online to illustrate how they work, which will reinforce credibility on a
higher level, allowing for funding opportunities.
In order to accomplish the final goal of my client and final part to complete the MRQ,
improving to maximize social value includes recommendations as an improvement
in measuring future SROI studies. Improving data that is used in these studies to
report performance and being able to compare actual performance against forecasts,
will allow for LAA to create more value (The SROI Network, 2010). Therefore crucial
steps are presented to eliminate the biggest limitation of this study, which regards
the inability to measure outcomes beyond LAA’s activity. This was the result as no
prior data has been collected to determine how long outcomes last after stakeholders
stop visiting LAA, which are frequently the most important outcomes to maximize
social value. Finally, recommendations are also presented to ensure that LAA will
continue with SROI as a methodology.
External Phase
This phase included my internship held in Melbourne at the social enterprise LAA,
where I was able to experience multiple management positions including, internal
communications manager, assistant restaurant manager as well as a SROI manager
during April 1st
until January 10th
2015.
Responsibilities included visiting all restaurant locations to determine the most
crucial issues of LAA, which resulted in managing the newest location in Preston to
enhance the hospitality service and “generosity experience”.
In September I chose to take on SROI responsibilities, which included stakeholder
engagement through focus groups and one-on-one interviews and creating a short
film that should be seen in conjunction with this study.

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Professional Products
Professional products completed during this internship included, distributing 240+
customer surveys into SPSS for LAA’s database to identify diverse customer
segments and perceptions on LAA’s products, services and social value creation. This
aligns with PDC 7, as it involves stakeholder identification.
I also created a management manual to tackle LAA’s current communication and
inconsistency issues, which include, forms with constructive feedback and crucial
conversations, SOPs and a job description.
The first two subjects of the manual aligns with PDC 7, as it involves stakeholder
engagement and the final two with PDC 3, which deal with implications for lower
level strategy (business, function).
A crucial conversations workshop has also been held for management in order to
exercise the skills learned from the form provided, ensuring that it is aligned with
PDC 7. Focus groups and one-on-one interviews with main stakeholders were
completed, which is also part of the stakeholder engagement process, aligning it with
PDC 7 also.
Finally, the SROI analysis incorporates all the elements necessary to be aligned with
the main PDC 7, as it answers the central question “How to arrange everything
around my owners and other stakeholders to control profitability and continuity of a
sustainable hospitality business” (HTH, 2013).
Strategic recommendations were also made possible to formulate for lower level
strategies, therefore also aligning PDC 3.
Reflection & Review
Some areas of the CLP have been changed, as a result of experiencing the internship
in an ad-hoc manner and made aware to both coaches. For example, discovering
LAA’s biggest issues resulted in my decision to change my initial research project, a
strategic plan to increase donations, into the SROI analysis. As a result of that, it
seemed logical to turn the secondary PDC 7 into the main PDC, making PDC 3
therefore the secondary one.
Also, two professional products were excluded (3 year financial plan and internals
communication plan), as the chosen ones provided more value to LAA. Stepping out
of my comfort zone for the first time has been the best decision I could have made,
as it allowed me to trust in my abilities more and realize that taking on new
challenges is much more rewarding than sticking with what is familiar. I have
therefore practiced one the most vital skills necessary to become a successful
entrepreneur.
After graduation, I am moving to Malmö, Sweden to follow free online social
entrepreneurial courses in April held at Copenhagen Business School, which is 20
minutes away. The winner of the best business plan will gain support for
implementation and considering that the course “measuring impact” is taught in the
final weeks, ensures me that I am a strong candidate to take the win.
Ultimately, I will not be able to call myself successful until I have my own enterprise
that helps countless of people suffering from hunger by tackling social issues such as
food wastage.
After all,
- Albert Einstein

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Table of Contents
PREFACE! 3"
ABBREVIATIONS! 3"
EXECUTIVE SUMMARY! 5"
INTRODUCTION! 10"
SUMMARY OF CLP REPORT! 10"
OBJECTIVE OF REPORT! 10"
STRUCTURE OF REPORT! 10"
1. COMPONENTS! 12"
1.1 RESEARCH COMPONENT! 12"
1.1.1 RESEARCH PROBLEM" 12"
1.1.2 GOAL OF RESEARCH" 12"
1.1.3 MAIN RESEARCH QUESTION" 12"
1.1.4 METHODOLOGY" 13"
1.1.5 SROI ANALYSIS AND RESULTS" 14"
1.2 EXTERNAL COMPONENT! 28"
2." PROFESSIONAL PRODUCTS! 32"
2.1 SOCIAL RETURN ON INVESTMENT (RESEARCH REPORT)! 32"
2.2 CUSTOMER SURVEY! 32"
2.3 MANAGEMENT MANUAL! 33"
2.4 FOCUS GROUPS AND ONE-ON-ONE INTERVIEWS! 33"
3." CONDITIONS! 34"
3.1 HOSPITALITY! 34"
3.2 INTERNATIONAL! 34"
3.3 MANAGEMENT LEVEL! 34"
4." PDCS! 36"
5." REFLECTION AND REVIEW! 38"
5.1 REFLECTION APPROACH! 38"
5.2 DEVIATIONS FROM CLP! 38"
5.2.1 PROFESSIONAL PRODUCTS" 38"
5.2.2 PDCS" 39"

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5.3 PROFESSIONAL PRODUCTS! 39"
5.3.1 SROI ANALYSIS" 39"
5.3.2 CUSTOMER SURVEY" 39"
5.3.3 MANAGEMENT MANUAL" 39"
5.3.4 FOCUS GROUPS & ONE-ON-ONE INTERVIEWS" 39"
5.4 PROCESSES & VITAL LESSONS LEARNED! 40"
5.4.1 CLP" 40"
5.4.2 RESEARCH REPORT" 40"
5.4.3 INTERNSHIP" 40"
5.5 PERSONAL GROWTH! 41"
5.6 SO NOW WHAT?! 41"
SOURCES! 42"
APPENDICES! 43"
APPENDIX 1| SOCIAL RETURN ON INVESTMENT ANALYSIS! "
APPENDIX 2| MANAGEMENT MANUAL! "
APPENDIX 3| APPRAISAL FORM 1+2! "
APPENDIX 4| EMAIL WITH SROI EXPERT! "
APPENDIX 5| REFERENCE LETTER! "
APPENDIX 6| LAA FACEBOOK POST PRICE ANCHORING! "
APPENDIX 7| P-A-R! "
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Introduction
An introduction chapter has been compiled to facilitate the process of reading this
report, which will include the key learning points from my CLP, demonstrate the
objective and finally the structure of this report.
Summary of CLP Report
Through the process of writing my CLP I discovered that I would like to combine my
two passions, which are food and social entrepreneurship and turn this into a career.
Fortunately, I received a kind email from a social enterprise that suggested a social
enterprise restaurant called Lentil As Anything, where I eventually obtained an
internship and research project opportunity.
From the SWOT I grasped that global responsibility is shifting from profit to purpose,
leading to increased business opportunities for social entrepreneurs. It was also clear
to me that I would need to gain increased knowledge within this field, as my future
competitors are obtaining degrees in social entrepreneurial studies.
I concluded that I would have to educate myself while gaining practical experience at
a social enterprise, which will help me significantly, should I wish to have a career in
this industry.
The PDCs I have chosen to apply throughout my LYCAR phase include PDC 7 “How
to arrange everything around my owners and other stakeholders to control
profitability and continuity of a sustainable hospitality business” and PDC 3 “How to
develop strategy, given internal organizational characteristics and qualities and the
external hospitality business environment (outside the organization and in the
future)”.
Objective Of Report
The objective of this report is to reveal how I acquire the skills and knowledge to
think at Bachelor Level and be prepared to work in the hospitality industry.
I do this by demonstrating my LYCAR execution, professional products and reflection.
Structure Of Report
The structure chosen for this report starts with identifying the two components of
LYCAR, which include the external and research component, which underpin the
entire report.
Following these components include my professional products, the three conditions
regarding hospitality, international and management level, the chosen PDCs and
finally my reflection on my entire LYCAR phase respectively.

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1. Components
Here, the research and external component of the LYCAR course are represented.
The decision has been made to complete both research and external components for
my internship at the social enterprise called Lentil As Anything (LAA).
1.1 Research Component
The research component entails a Social Return On Investment (SROI) analysis for
my client, Shanaka Fernando, who is the founder and CEO of the social enterprise. A
complete Research Report of 51 pages can be found in Appendix 1.
1.1.1 Research Problem
One of the obvious differences between social enterprises and commercial
enterprises involves the primary reason for existence, as commercial enterprises aim
to generate financial value (Nicholls 2006, Young 2006) while social enterprises aim
to achieve their mission to create another form of value- social value.
Social value is an expressive value, which is not apprehensive regarding what can be
achieved, rather what can be conveyed to others (Miczo, 2002). Exploring the pitfalls
for social enterprises made it evident that LAA is currently suffering from one of the
most common ones.
For starters, LAA currently measures success by solely looking at its economic
growth including its increase in restaurants and financial profits.
As a result of this common pitfall, social enterprises are known to subsequently end
up in an adjustment whirlpool, which is when the social mission is excluded from the
continuous flow of entrepreneurial adjustment between strategies, measurement and
adjustment by solely focusing on growth based measures to signify any evidence of
social impact (Ormiston, Seymour, 2011).
With no current means of measuring their social value, it fails to prove success to
reach their mission, but more importantly fails to understand what their actual social
impact has been over the last 14+ years.
Fortunately, quantitative social metrics such as the SROI framework have been
established, which tells the story of how a social enterprises’ social value is being
created through the measurement of social, environmental and economic outcomes
using monetary values to represent those outcomes (The SROI Network, 2010).
This research adopted the SROI framework, which helped determine how much
social impact LAA has created over the course of one year.
1.1.2 Goal Of Research
The goal of the research was to grasp the social changes in LAA’s stakeholders’ lives
as a result of participating at its restaurants. This created better understanding as to
what works and what does not, which in turn facilitated the process of formulating
strategic recommendations to maximize social value.
The goal of the client involves the ability to prove its social impact for the first
time in the hopes of gaining more funding and donation opportunities as well as a
clear overview on how they can improve to continuously maximize their social value
henceforth.
1.1.3 Main Research Question
What is LAA’s current social return on investment (SROI) and which strategic
recommendations will allow for maximizing social value within 3-5 years?

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The following sub questions have been assembled in order to gain better knowledge
on social entrepreneurship, followed by the steps necessary to successfully conduct
the SROI analysis. (Please see Appendix 1 Research Report page 38 for the Research
Tree)
1.1.4 Methodology
Here, the methodology is compiled into four phases that helps clarify which steps
were taken to answer all four sub questions accordingly.
Before starting the SROI analysis, pre-field work has been conducted, allowing for
better understanding regarding social entrepreneurship and social value. From there,
the process of SROI started. Phase 4 starts after the SROI methodology is completed
and begins on page 26 where recommendations are presented to maximize social
value.
Phase 1: What Is Social Entrepreneurship?
The realization of conducting SROI instead of the initial strategic plan came after
studying social entrepreneurship via published reports, academic research papers
and scholar books, which is part of the pre-field work for the first sub question. Also,
Critical Success Factors (CSFs) are considered in order to ensure that the social
enterprise achieves its mission. Finally a model is created for a helicopter overview of
how LAA aims to achieve their mission.
Phase 2: What Is Social Value?
This includes the final phase before starting the SROI analysis, which involves pre-
field work by researching on SROI data that helped me prepare for completing the
Research Report successfully.
Phase 3: What Is SROI?
The final phase includes the entire SROI methodology that can be found on the
following page in table 1. The first stage from the SROI methodology includes
establishing the scope and engaging stakeholders. Utilizing the 240+ filled out
customer surveys helped identify which customers are regulars (beneficiaries) by
using the criteria of visiting at least once a week, with the assumption that they
achieve the most social value. Regular volunteers, disadvantaged volunteers turned
paid staff and government are also included in the stakeholder engagement.
A total of five workshops and 30-40 one-on-one interviews have been completed
over the duration of two months, starting in September. Next, all data derived from
the stakeholder engagement process has been used to continue finalizing the SROI
analysis by completing all six stages. Other sources that were required include
similar SROI example reports and financial proxies, which is part of stage 3.

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This entire process was finalized beginning of January 2015, making it a little over
four months to complete the entire Research Report.
The following chapter will show the analysis and results for each of the six stages
from the SROI methodology. Also, The 7 Principles are used in this analysis to
ensure consistency and reliability throughout the report. Please see Appendix 7 for a
detailed description of these principles in the Research Report on page 46.
Table 1- SROI Methodology
1.1.5 SROI Analysis And Results
Phase 1: What Is Social Entrepreneurship?
Social entrepreneurs are known to solve social, environmental and economic issues
such as poverty and environmental damage by applying entrepreneurial initiatives
(Nicholls, 2006). More on this subject including the main differences with commercial
enterprises can bee found in the Research Report on page 10.
Phase 2: What Is Social Value?
Social value can be defined as value related to personal relationships, which can
include materialistic values that involve the anticipations of exchange, or expressive
value, which is not apprehensive regarding what can be gained, rather what can be
conveyed to others (Miczo, 2002).

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It is difficult for social enterprises to measure social value and therefore end up
solely measuring quantified data such as the growth in beneficiaries, number of
enterprises or financial growth to constitute success.
The problem with the inability to measure a value you aim to achieve, affects how
social entrepreneurs comprehend the value that is created, which is known as the
mission measurement paradox (Ormiston, Seymour, 2011).
This involves a disconnect between mission, objectives and impact measurement
when social entrepreneurs assume that their mission to achieve social value has
been reached by gaining increased beneficiaries rather than analyzing the impact
they achieved on those beneficiaries (Ormiston, Seymour, 2011).
Social entrepreneurs are known to subsequently end up in an adjustment whirlpool,
which is when the social mission is excluded from the continuous flow of
entrepreneurial adjustment between strategies, measurement and adjustment by
solely focusing on growth which is when the social mission is excluded from the
continuous flow of entrepreneurial adjustment between strategies, measurement and
adjustment by solely focusing on growth based measures to signify any evidence of
social impact (Ormiston, Seymour, 2011).
That is where SROI comes in, which tells the story of how a social enterprises’ social
value is being created through the measurement of social, environmental and
economic outcomes using monetary values to represent those outcomes (The SROI
Network, 2010).
Before continuing with phase 3, here is a table that describes how LAA aims to create
social value and Critical Success Factors within LAA’s context. For more information
on LAA, please see the Research Report page 7-9 for the organizational snapshot,
LAA in detail and explanation on the three restaurants.
Table 2- LAA’s Mission For Value Creation

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Critical Success Factors (CSFs)
CSFs are the fundamental areas of activity necessary to achieve the mission,
objectives or goals of an organization (Mind Tools, 2010).
Several areas were looked at when determining the CSFs for LAA, such as the food
service industries, social enterprise industries, PAYF pricing model and community-
based industries. Table 3 demonstrates the CSFs, in which the black highlighted are
not yet present at LAA, meaning that these need to be taken into consideration
during the formulation process of strategic recommendations, should LAA want to
achieve its mission.
Table 3- CSFs
Stage 1- Establishing Scope and Engaging Stakeholders
In this stage, it was essential to determine the scope of the analysis in order to work
within the boundaries of what is being analyzed (The SROI Network, 2010). By doing
so, it was made possible to ensure that all information being proposed was feasible,
which included the following factors shown in table 4.

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Table 4- Scope Of SROI Analysis
Stakeholder Engagement
After identifying regular customers visiting LAA at least once a week via the
customer surveys as well as the regular volunteers through LAA’s database, it was
made possible to determine which are expected to experience significant chance and
assembled in a stakeholder engagement in table 5.
Important to note here is that only regular customers and volunteers will be used in
the analysis (participation at LAA at least once a week) with the assumption that
they experienced the most changes.
More explanation on the final numbers of these regulars that were used in the SROI
calculations will be done in the upcoming stages.

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Table 5- Stakeholder Engagement
*Disadvantaged: homeless, disabled, socially isolated, retired, youth, refugees, long-term
unemployed and new immigrants. Though its incorrect to state that all regulars are
disadvantaged, by measuring those who visit regularly, ensures that they gained significant
change.
Excluded Stakeholders Reason For Exclusion
The board • The board would be able to work for
other non-profits if they did not work
for LAA
Financial/ food funders • Not included, as no benefits are
reported
Suppliers • Not included, as no benefits are
reported
Non disadvantaged paid employees • Staff would work elsewhere if LAA did
not exist
Local community • To avoid double counting: As a
portion of the direct stakeholders are
part of the local community
• Insufficient data to determine
benefits to this stakeholder e.g.
improved perception of local area
Non- regular customers and
volunteers
• To avoid over claiming: It is
important to identify material
stakeholders who have gained
significant change, as apposed to
stakeholders who may have only had
marginal changes.
Local authorities • Insufficient data to link outcomes
e.g. decreased incidents with LAA
direct stakeholders
Ex disadvantaged staff and volunteers
gaining jobs after LAA
• No historical records found to finalize
the amount of stakeholders employed
elsewhere

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Theory Of Change
Here, the Theory of Change model has been applied to outline the relation between
social enterprise’s inputs, activities, outputs and outcomes enabling one to better
understand the story of how an intervention - or in LAA’s case the stakeholders
involvement at its community restaurants makes a difference in the world (The SROI
Network, 2010). Looking at the outcomes of LAA in the table below, it shows The
Four Domains of Outcomes, which helped with grasping what the major areas of
change will be before engaging with the stakeholders. In the following stages it
becomes evident what the 12 discovered outcomes are and joined with its related
domain of outcomes.
Table 6- Theory Of Change Model
Stage 2: Mapping Outcomes

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Identifying Inputs
The investment cost of LAA has also been discovered after calculating the customer
donations as well as putting a financial value on volunteer time, which totals
$2,627,033.66. (Please see table 6 in the Research Report on page 18 for an
overview of the inputs).
Describing Outcomes
Last part of this stage includes describing outcomes after engaging with the
stakeholders via five workshops and 30-40 one-on-one interviews. Please see the
Research Report Appendix 3 for the Focus Groups Interview Guide on page 41 and
Appendix 4 with the Stakeholder Quotes on page 42.
This process was finalized as soon as it became noticeable that no new outcomes
were identified and similar ones kept on being repeated, therefore ensuring that all
main outcomes have been collected, also known as saturation.
A model is created to allow the reader to visualize how the quotes from stakeholders
were collected and formulated into medium to longer-term outcomes, which were
used to calculate the SROI ratio. Here, two examples are shown for regular
customers, in which the same has been completed for the other main stakeholders in
the Research Report on page 18-19.
Short and longer-term outcomes are distinguished in order to capture the core of
what the observed outcomes of LAA are. This process allows the measurable
outcomes, highlighted in the green circles, to be recognized and ultimately evidenced
in the upcoming stages. Also apparent are The Four Domains of Outcomes identified
from the Theory Of Change and paired with the related outcomes marked in white in
table 7.
Furthermore, another stakeholder, the government, has been identified to gain
benefits in terms of costs savings, which is shown below.
For a rationale of The Four Domains of Change, please see the Research Report page
20-21.

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Table 7- Short-Term And Longer-Term Outcomes Identification
BENEFICIARIES: REGULAR CUSTOMERS - INCREASED SOCIAL INCLUSION
Short-term outcomes ! Medium-longer term outcomes
New supportive friendships and increased
connections to participants of LAA- Leads to
integration into an accepting and compassionate local
community and networking opportunities.
Increased sense of trust and
belonging
Inclusive community participation and interaction Enhanced self-esteem and mental
wellbeing
Diverse community engagement: demographics and
psychographics
Reduced stigma and
discrimination
Increased affordability to a dining experience Increased equal access to a basic
need
Increased access to healthy, vegetarian meals Increased healthy diet patterns
BENEFICIARIES REGULAR VOLUNTEERS - INCREASED EMPLOYABILITY
Increased hospitality and social skills Increased competence and
purpose
Increased participation in community activities Increased personal support and
progress towards employment
BENEFICIARIES: DISADVANTAGED PAID STAFF - INCREASED EMPLOYMENT
AMONG DISADVANTAGED
Increased chef skills Increased professional
competence
Increased knowledge, support and advice Increased employment
BENEFICIARIES: LOCAL GOVERNMENT - INCREASED GOVERNMENT COST SAVINGS
Increased job creations for disadvantaged individuals Reduced dependence on state
benefits
Increased rescued food Decreased food waste costs
Increased vegetarian meals consumed Decreased carbon emissions costs
"
Stage 3: Evidencing Outcomes And Giving Them Value
This section involved understanding the extent to which change has occurred
through evidencing and measuring these outcomes. This includes the process of
placing indicators, data collection and possible proxies to each outcome as shown in
table 8 in the Research Report page 23-24. Also, a section on how long outcomes
last after one year will be determined.
Financial proxies are used to put a monetary value to things that do not have a
market price, which is known as monetization (The SROI Network, 2010). Meaning
all value placed on outcomes will be subjective and even in certain instances where
the prices may seen more stable and resemble some form of objectivity, this is not
really the case (The SROI Network, 2010). However, after engaging the
stakeholders, it became evident which outcomes were valued more than others and
therefore expressed in a higher financial value, which will be visible in the upcoming
stage.

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Only realistic financial proxies were used to avoid over-claiming, where possible (e.g.
minimum wages for employment). Available in the Research Report are the sources
of the financial proxies in Appendix 5 on page 43.
Benefit Period- Establishing How Long Outcomes Last After A Year
Whether changes sustain or not, is an important part of understanding which
outcomes are most important. Generally, outcomes that last longer are more
important than those that do not (Goodspeed, 2014).
SROI analyses are more commonly done for interventions, programs or series of
initiatives with a timeframe, meaning that it is easier to assess the changes that
happen after the intervention is taken place to determine its impact. At LAA
however, there is no deadline for an intervention, as stakeholders can visit as often
as desired, resulting in no collected data available of stakeholders that stopped
visiting to determine how long outcomes last beyond this time frame being analyzed
for the study. This also means that LAA cannot know whether outcomes last while
still being present after a year, therefore questioning which influences diminish these
outcomes over time.
Nevertheless, some outcomes have still been identified that last longer than one year
after looking at other SROI reports with comparable outcomes, including the SROI
report for Fair Finance (Ravi, 2013) and Channa Program (Tong, 2010).
There is no similar SROI report to compare with LAA’s, but will be considered to only
determine if they can last longer than a year or not, also explained in the limitations
section on page 32 in the Research Report. This allowed for LAA to determine which
outcomes are longer-term and therefore essential to put more focus on in the future
to maximize social value.
- Increased Sense Of Trust And Belonging
- Enhanced Self-Esteem And Mental Wellbeing
- Reduced Stigma And Discrimination
- Increased Competence And Purpose
IMPORTANT NOTE!" This is the biggest limitation of the study. Given that these four
outcomes have the possibility to last beyond LAA’s activities, means that LAA’s social value
can be maximized, which is part of the MRQ (and one of the clients goals). This will therefore
be followed with strategic recommendations to inform LAA which steps are necessary to
discover how long these outcomes last after customers stop visiting LAA.
Stage 4: Establishing Impact
As explained in the methodology of the SROI analysis, this stage includes several
impact percentages that estimated how much of the outcome would have happened
regardless of LAA’s existence (deadweight %) and which part of the outcomes were
made possible through other organizations or people (attribution %).
This process is crucial as it diminished the risk of over-claiming, which is in line with
The 7 Principles and means that LAA’s story of achieving social impact remains more
credible (The SROI Network, 2010). This is what is meant when the term impact is
used.
Please see the Research Report page 26 for more data on these percentages.

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The survey also proved useful after reviewing answers regarding social value
questions, such as “LAA contributes to multi cultural understanding” where
customers can choose between strongly agree and strongly disagree.
Please see Appendix 8 for the SPSS outputs in the Research Report on page 47-49
that helped ensure the assumptions made are not far off.
Also shown here are the numbers of beneficiaries calculated with the accompanied
financial proxies in the impact map. These numbers are all based on assumptions, as
LAA’s pricing model and no point of sale systems available (POS) means that it is not
possible to know the amount of customers that come in everyday. However, I have
personally counted customers an entire day (breakfast, lunch and dinner) and used
this number to make calculations. For more information on these estimations please
see the limitations section in the Research Report on page 32 and the calculations in
Appendix 2 in the Research Report page 39-40.
All this data can be found in the impact map, which consists of three pages with all
the 12 outcomes accompanied with the financial proxies, rationale of the outcomes
and impact percentages to determine the final social impact expressed in monetary
value. Please see table 8 in the Research Report on page 27-29 for a detailed impact
map. The social value expressed in monetary value resulted in a total of
$15,382,211.07.
Stage 5: Measuring SROI Ratio
Domain Outcomes Outcomes Value
(AUD)
Outcomes
Value Per
Person
Increased social inclusion $14,812,550.00 $5,925.02
Increased employability $142,224.00 $1,185.20
Increased employment $406,235.52 $22,568.64
Increased government cost savings $21,201.55 $1,177.86
Total value of outcomes $15,382,211.07
!Total value of inputs $2,627,033.66
!SROI ratio $5.86
!
The SROI ratio above suggests that for every AUD dollar invested into the three
restaurants of LAA, it produces approximately $5.86 social return.
It is also evident that the largest outcome per person is $$22,568.64, meaning the
disadvantaged volunteers turned paid staff are achieving the most value.
The largest domain of outcome as a whole however involves the increased social
inclusion with 2.500 customers as beneficiaries, reaching $14,812,550.00 in total.
Stage 6: Sensitivity Analysis
This stage systematically alters assumptions in order to investigate for areas of
sensitivity in the impact map.
These include assumptions that, when revised, affect the SROI ratio drastically (The
SROI Network, 2010). The following factors were altered including financial proxies,
impact percentages, number of beneficiaries and input costs (where non- financial

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inputs are valued, such as volunteer time).
An entire page has been assembled with all the altercations and showed that the
sensitivity model is very sensitive after altercations have been made with the impact
percentages, number of beneficiaries and input costs.
Sensitive Model: What Does This Mean?
Given the level of sensitivity in the impact map, it can be assumed that LAA still
creates a significant amount of social value when looking at the lowest ratio, which is
$3.03 for every dollar invested in the social enterprise after the amount of customers
are halved. However, given the underestimated approach of measuring the amount
of customers to avoid over-claiming, its safe to say that LAA creates between the
ranges of $3.88 (worst case scenario) to $5.86 (best case scenario) of value for
every dollar invested, or rounded off $4 to $6, concluding that this range is prudent
and conservative, confidently confirming that social value is being created.
Insights And Recommendations
Insights

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Recommendations
This section includes recommendations based of the following three areas while
keeping mind of the CSFs that LAA is currently missing including:
" As An Enhancement In Main Stakeholders Participation (Prove)
" As An Improvement In Measuring Future SROI Studies (Improve)
" As A Methodology For LAA’s SROI Future Studies
Recommendations- As An Enhancement In Main Stakeholders Participation
As a result of measuring LAA’s SROI ratio, LAA will now be able to prove its
impact, which was identified as one of the two goals of the client. Here, advantages
are explained of an overall enhancement in main stakeholder participation per
stakeholder:
Customers
LAA will now have the ability to push accurate and reliable information into the
general public and main stakeholders, which will create a new shift from a simple
transaction for a unique dining experience to investing in a social movement when
donating.
It will facilitate the ability to envision what it is they are paying for besides a meal,
allowing for a more generosity type of experience.
By increasing LAA’s transparency, customers will be much more likely to realize that
they invest in a healthier society that is more tolerant and inclusive- investing in the
“real prosperity”.
These important factors are crucial for proactive communication that will help with
any concerns and perceptions that come with LAA’s activities as well as the increase
of donations and strengthened customer relationships, which is identified as one of
LAA’s CSFs (Berg, 2011).
Paid staff and volunteers
These main stakeholders will experience increased productivity, loyalty and will just
simply be happier, as they can now be more aware of what they are working towards
and what has already been achieved with their efforts (Nisen, 2013).

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Government and other funding officials
Enhanced transparency cultivates more trust with these stakeholders and help to
create more accountability both internally and externally (Social Enterprise UK,
2012).
Phase 4: How To Maximize Social Value
Recommendations- As An Improvement In Measuring Future SROI Studies
According to The SROI Network, SROI facilitates the planning process, once LAA
forecasts the expected value in the upcoming years through SROI studies, it may
identify areas where change is needed, frequently in the way data is collected.
Improving data that is used in these studies to report performance and being able to
compare actual performance against forecasts, will allow for LAA to create more
value (The SROI Network, 2010).
Therefore, the second goal of the client is fulfilled and the last part of the MRQ is
answered, which includes the ability to improve to continuously maximize their
social value with the help of future SROI studies and to use as a methodology from
here on in, which is explained on the next page.
A crucial limitation of this study was the inability to measure the outcomes’ benefit
period and therefore the drop off percentage. As mentioned above, this means it was
not possible to discover how long each outcome lasts after the main stakeholders
stop participating at LAA. Nor is it possible to discover how long outcomes last while
these main stakeholders continue to participate at LAA.
The risk with this limitation is that only the value during the activity is being
measured accurately and not the value in these stakeholders’ personal lives outside
of the activity. To overcome this limitation in future studies, the following actions
must be taken into consideration, reinforcing the importance of a consistent feedback
loop.

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Customers:
Volunteers and paid Staff:
Excluded Stakeholders:

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Recommendations- As A Methodology For LAA’s SROI Future Studies
1.2 External Component
This chapter discusses my internship experience in the arranged time frame of April
1st
- September 23rd
2014; however, the decision has been made to prolong my
internship until January 10th
in order to complete the research project, making it a
placement of almost ten months. The official job position was described as assistant
manager in multiple restaurant locations to provide support to LAA’s managers and
be a positive influence to the organization.
The placement took place at all four locations in Melbourne, mostly at Preston (until
end of August) and Abbotsford Convent (September-January) where the majority of
the SROI preparations occurred. Besides the duration of the placement, other
changes regarding the professional products have also taken place and made aware
to my career and expert coach shown below. More on these will be discussed in the
next chapter.

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CLP Deliverables New Deliverables
• Develop a three year financial
forecast
Focus groups and one-on-one interviews
• Customer survey (quantitative) Completed
• Develop an effective internal
communications plan
Crucial conversations workshop
• Form with conversation model for
crucial conversations and
constructive feedback
• Create SOPs and job description
for management
All included in the Management Manual
• Create a “pay as you feel” model
strategy
Social Return on Investment analysis
First Impressions
Before starting my internship, I experienced LAA’s hospitality service in order to get
a customers’ point of view. The most noticeable observations included its diverse
customers, (surprisingly) delicious vegetarian breakfast and a calming environment.
Still I was a bit disappointed, as I did not feel that “generosity experience” I was
hoping to find, concluding that there was not much of a difference compared to a
traditional restaurant. No data was provided to visualize how my financial
contribution will create change, nor were there indications on how much to donate
per customer, making it hard to determine a fair price.
I instantly knew the crucial areas for change, which included transparency, pay-as-
you-feel strategies and customer and employee feedback to determine its
perceptions regarding LAA’s products and services. This led to the professional
product labeled as the customer survey, which will be discussed in the upcoming
chapter.
Responsibilities
As an assistant restaurant manager at a social enterprise, I was fortunate enough to
have the flexibility to experience various roles within the management field in an ad
hoc manner. The following management roles I will be elaborating on, will be split up
between the time frame of April- August (five months) and the time frame of
September- January (five months).
Time Frame: April- August
Internal Communications Manager
In the first month of my placement, I have been in charge of visiting all four
locations in Melbourne to discover which crucial issues the restaurant managers were
facing regarding hospitality related activities.
This included having meetings with the managers, volunteers and paid staff as well
as daily observations during service. All data has been collected and discussed with
the CEO and my placement supervisor, which is the organizational development
manager. From this, the decision has been made to focus on one of the most
challenging locations until August, which involved its newest location that opened its
doors a few months prior to my arrival.
Assistant Restaurant Manager
LAA Preston (or Prentils) is a small restaurant/café that can seat up to 50 customers
attracting diverse customers including the youth, disadvantaged individuals and
professionals with low customer donations.

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As an assistant restaurant manager at Preston, my responsibilities included
managing floor staff and volunteers focusing on customer service and enhancing the
“generosity experience”.
This was crucial, as the majority of LAA’s staff and volunteers have no prior
hospitality experiences.
First, I would observe how employees and volunteers would interact with customers
and each other to provide feedback and ultimately have them observe me.
I applied my HTH training including skills learned through crucial conversations and
constructive feedback in these situations.
In order to enhance the “generosity experience”, I made a management decision to
create more transparency for its customers regarding its Pay-As-You-Feel model.
This included informative data regarding its donations to influence customer
perceptions and actions taken to make the restaurant look more like a social
enterprise at a first glance. It was necessary, as the location had no visible
information that shows that LAA is a social enterprise and therefore simple, yet
effective messages were provided through A-frame street signs and posters.
After completing this along with creating a more approachable entrance and displays
informing customers of terrace availability hidden in the back, it resulted in higher
seat turnover.
Other responsibilities included assisting in non-profit administration and social
operations, such as collecting donations at the end of shifts.
During these months, professional products have been created such as a customer
survey, crucial conversations workshop as well as a management manual, which will
be dealt with later in the report.
Time Frame: September- January
Social Return On Investment Manager
As successful as the previous management roles have been, I was not yet satisfied
with the work I was providing for LAA. Mainly because I wanted to focus more on
social enterprise responsibilities, but also to help LAA achieve great results regarding
its social impact.
It was especially difficult to achieve while focusing on the planned professional
product that focused on creating a strategy for its pricing model.
After failing to convince the CEO and development manager on what to focus on for
increased donations, I realized that I had to take a different approach.
LAA is a social enterprise that encompasses a corporate culture embracing the most
dangerous sentence of the business language, “We have always done it this way”.
So the question is, how is a hospitality intern going to create awareness for change?
Especially when it involves an organization that prides on being the complete
opposite of commercial enterprises, not to mention missing many critical success
factors to ensure success.
The only way to accomplish this was to focus on a strategy that adopts business-like
characters without losing their identity.
After continuously educating myself on social entrepreneurship, I realized that LAA
does not focus on measuring how much social value they’re creating.

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That is when I started with pre-field research on SROI to familiarize with this fairly
new concept.
It resulted in a five-month process of focus groups and one-on-one interviews with
customers and volunteers, weekly meetings with Ross Wyatt (an expert in the field,
voluntarily guiding me throughout this process) as well as completing the entire
SROI report.
I was also fortunate enough to have Ross Wyatt’s partner direct a short film where I
have one-on-one interviews with main stakeholders to visualize LAA’s magic that is
sometimes hard to put in words.
"

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2. Professional Products
A number of professional products have been produced during the course of my
internship for the social enterprise, including the research component labeled as a
Social Return On Investment report.
2.1 Social Return On Investment (Research
Report)
As previously mentioned, this was a proposed product that has been accepted by my
client, who is the CEO of my placement organization. This has also been discussed
with both coaches and completed in January 2015.
The reason this is labeled as a professional product is due to the fact that this
analysis needs to be studied and published as a whole to accomplish the two goals of
my client of proving and improving to maximize social value.
Results from this report have already been mentioned in the recommendations
section ensuring that both goals of my client have been accomplished, which
included proving that they achieve social value as well as improving to maximize
their social value in the upcoming years.
In order to prove their social impact, actions were presented in the recommendations
as an enhancement in main stakeholders participation (page 25) and to improve in
order to maximize social value in the recommendations as an improvement in
measuring future SROI studies (page 26). Also recommendations are presented to
ensure that LAA will continuously use the SROI as a methodology for years to come.
Finally, the calculated SROI ratio resulted in $5.86, while the sensitivity analysis
revealed a worst-case scenario, lowering the ratio to $3.88, confidently being able
to say that social value is being created between the ranges of $4 to $6.
2.2 Customer Survey
As previously mentioned, a customer survey has initially been designed with the Pay-
As-You-Feel model as its main focus to increase customer donations. Though this
strategy has been rejected, the 240+ filled out customer surveys were still useful to
understand its diverse customers and gain more knowledge regarding their
perception on LAA’s products and services. These surveys were all handed out at
LAA’s biggest location, Abbotsford within two days while simultaneously counting the
amount of customers coming in for the entire day (breakfast, lunch and dinner). This
was done with the help of one volunteer by switching roles of handing out and
collecting surveys as well as sitting inside the restaurant while click counting via a
phone application.
Also, all donations were separated regarding breakfast, lunch and dinner to
determine the average price per person, which until then, LAA has never been able
to discover. One of the probability sampling types has been used, which is simple
random sampling, as each customer was chosen randomly during different stages
throughout the entire day (breakfast, lunch and dinner). This ensured for an
unbiased representation of LAA’s customers at the biggest location.
This survey has also allowed me to understand how often customers visit LAA, which
helped me obtain the percentage of regular customers (visiting at least once a
week), who are the beneficiaries achieving social value. Please see Appendix 8 in the
Research Report page 47-49 for SPSS outputs from the customer survey. Also, all

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240+ filled out survey data have been distributed into SPSS for LAA’s database,
which will be further analyzed for correlations through other volunteers.
Finally, statements regarding social value in the survey helped me with more reliable
assumptions concerning impact percentages (attribution, deadweight), which are
explained in the limitations section. (E.g. LAA contributes to multicultural
understanding where customers can choose between the ranges of strongly agree-
strongly disagree). Please see Appendix 6 for an overview of the survey in the
Research Report page 44-45.
2.3 Management Manual
During the first five months of my placement, a management manual was created
after determining that all locations lack clear communication, as a result of limited
skilled management as well as dealing with troubling customers. This management
manual therefore includes a form with conversation model for crucial conversations
and constructive feedback as well as a job description and SOP’s for management.
Also, one workshop has been done at the Abbotsford location for managers of
several restaurant locations.
Please see Appendix 2 for an overview of this product.
2.4 Focus groups And One-On-One Interviews
This was undoubtedly my preferred product completed for LAA, as it involved
stakeholder engagement and discovering the social outcomes.
Focus groups were held in rented rooms available at the Convent where its largest
restaurant is located. Focus groups were crucial, as it created a different dynamic
where stakeholders expressed and shared their opinions and ultimately feel heard.
Stakeholders were gathered by personally asking for their numbers when interested
and texts were sent out the day before.
The first workshop was held by Ross Wyatt (the expert) in order to get a sense of
how to successfully conduct these focus groups. Essential observations included
asking open-ended questions without LAA as its main focus to understand their
personal lives first and then ask to see if LAA had anything to do with these changes
to avoid people answering misleadingly.
So instead of asking, what has LAA done for you, start off with what life is like for
you currently, continuing with what life was like before visiting LAA. Also, writing
down where the conversation is going to keep track as well as formulating all
keywords at the end of each focus group was essential.
The most successful workshops involved situations where stakeholders would discuss
social outcomes with each other without much personal involvement.
Approximately 30-40 one-on-one interviews were held, mostly for disadvantaged
volunteers and customers at all four locations, as they tend to be more hesitant to
opening up. This was done by simply visiting all locations and approaching customers
and volunteers for a short interview that will help LAA improve.
These interviews were done to determine the outcomes and also during filming for
the short film, which will hopefully be edited in time to present during my final
defense. The short film will be seen in conjunction with this report by LAA’s
stakeholders to get a better sense of the outcomes.
Both focus groups and one-on-one interviews were completed as soon as I no longer
gained any new information regarding the social outcomes, assuring that all main
outcomes were collected, known as saturation.
Please see Appendix 3 in the Research Report on page 41 for an overview of the
focus group interview guide.

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3. Conditions
"
This chapter allows me to demonstrate how all three criteria regarding hospitality,
international and management levels have been met during the entire LYCAR course.
3.1 Hospitality
Working for a social enterprise restaurant, confirms that this criteria is undeniably
met, which also ensures that all professional products meet this criteria. This also
includes the Research Report, as it involved engaging with the restaurants’ main
stakeholders.
3.2 International
One of LAA’s biggest strengths includes its diverse customers and volunteers, as its
pricing model and vegetarian meals invites not only people from all backgrounds, but
also people from all different cultures and lifestyles. On top of that, LAA is located in
Melbourne, which is the home, workplace and leisure centre of one of the most
culturally diverse societies (City of Melbourne, 2010).
LAA is therefore able to attract travellers, refugees and international students from
most continents, as I met and worked with people from Sri Lanka, Tibet, Italy,
Japan, Uganda, Brazil, United States and so forth.
Its one thing to enhance your knowledge on multi-cultural understanding, but it is a
whole other situation when you get to interact with disadvantaged individuals.
Becoming friends with refugees, the homeless, socially isolated, retired artists etc.
has been one of the greatest experiences of my life. For one, it is allowed me to see
strangers as friends and reminding me that no matter how different people may
seem, we are all human beings at the end of the day with similarities.
3.3 Management Level
This criterion has also been met, as I had the opportunity to experience several
management titles and had the freedom to make any management decisions while
working at LAA Preston. This included training volunteers to enhance the customer
experience as well as the generosity experience by informing new customers about
LAA’s mission for example.
I was also able to hold a crucial conversations workshop for LAA’s management and
being part of a Board of Directors meeting to persuade them about my plans
regarding the SROI analysis. The analysis will be used and published to its
stakeholders including the general public and funding officials.
Besides this, strategic decisions were also practiced throughout the research project
as well as daily operations by encouraging management to place price-anchoring
posters for customer education regarding donations. This resulted in a poster that
displayed a range of customer donations from $5- $50 explaining which costs are
covered. Once this was posted on LAA’s Facebook page, over 1000 customers
pressed on the like button, which is when I gained more freedom to make
management decisions. For an overview of the Facebook post with the 1000+ likes,
please see Appendix 6.

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4. PDCs
This section illustrates how I have proven to create alignment between my
professional products and chosen PDCs, while simultaneously displaying overall
understanding.
After the decision has been made to create a SROI report instead of a strategic plan,
it seemed logical to switch my initial main PDC 3, “Developing strategy, based on a
vision to deal with changes / forces in the external hospitality business environment,
including the strategic development of hospitality networks and relations” with the
secondary PDC 7 I chose, which involves: “Dealing with the power and influences of
(external) stakeholders, such as the owners, banks, regulators, distributors, clients,
society, et cetera in the hospitality industry”.
Main PDC 7
The main PDC 7 deals with the central question:
“How to arrange everything around my owners and other stakeholders to control
profitability and continuity of a sustainable hospitality business”.
Needless to say, this is exactly what I have shown through my SROI analysis, as the
research covers the focus point of this PDC, which involves accountability, ethics,
social responsibility as well as sustainability. Also, all stakeholders were considered
and all main stakeholders were involved and engaged throughout this process.
Besides this, profitability can also be controlled, as LAA will now be able to compare
actual performance against SROI forecasts, which will allow for LAA to create more
social value (The SROI Network, 2010). Other professional products aligned with this
PDC include the focus groups and one-on-one interviews, as stakeholders were
engaged.
Secondary PDC 3
This PDC deals with the central question:
“How to develop strategy, given internal organizational characteristics and qualities
and the external hospitality business environment (outside the organization and in
the future)”. Because of the SROI, LAA will also be able to gain increased funding
and customer donations by being able to prove that social value is being created as
well as improving to achieve maximized social value. These are part of the strategic
recommendations I have proposed, which means that elements from the secondary
PDC 3 (strategy) are also available within the research project.
This is especially true, as many organizations have claimed to reinforce their ability
to participate in strategic planning as a result of measuring their SROI, thanks to the
analysis evidencing, in a organized structure, what the outcomes and impact are and
how it is achieved (Social Ventures Australia Consulting, 2012).
Also, the Research Report illustrates how common pitfalls for social enterprises
include ending up in an adjustment whirlpool. Now that LAA is able to evidence its
social impact, it can focus on this entrepreneurial adjustment successfully. The
remaining professional products, such as the management manual also exhibit
strategic elements, as I was able to recognize the implication for lower level strategy
(business, function), which is one of the processes identified in the PDC 3 data.

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5. Reflection And Review
"
In this chapter I discuss the approach I have taken to reflect on my internship, the
deviations from my CLP, the professional products made for LAA, my processes along
with the vital lessons learned. Finally, I will also elaborate on my personal growth as
well as a short explanation on my potential endeavors in the near future.
5.1 Reflection Approach
In my CLP I explained how I would make use of several approaches to ensure a
credible reflection report including a Problem-Action-Result (P-A-R) worksheet as
well as pre-written self-reflection questions.
The P-A-R worksheet was used during the process of substituting the planned
strategic plan into the SROI analysis, which can be found in Appendix 7. Self-
reflection questions formulated prior to the internship have also been taken into
consideration to remind myself what to focus on and an updated journal to help
remember ideas and understanding myself.
Lastly, learning objectives from my CLP, appraisal forms, a reference letter and an
email from the SROI expert, Ross Wyatt is also taken into consideration to reflect on
my placement. (Appendix 3 for two Appraisal Interviews, Appendix 5
Recommendation Letter, Appendix 4 Email of Approval).
5.2 Deviations From CLP
There have been major deviations from my CLP (Research Report and professional
products), however these allowed me to not only contribute to the majority of my
initial goals, but in some cases exceeded them.
5.2.1 Professional Products
As previously mentioned, I was able to change my Research Report and other
professional products in order to add as much value to my client by focusing on the
critical issues in an ad hoc manner.
I was not triggered nor convinced that an initial strategic plan would benefit LAA in
any way, as LAA prides itself on operating in an organic way, without much focus on
commercial business fundamentals. With the help of the P-A-R worksheet I was able
to find a solution to the strategic plan I initially planned to produce. Writing down
this problem, allowed me to focus with full attention and ultimately led to the
solution after formulating the action to keep focusing on social entrepreneurship in
order to find a solution.
Regarding my daily operations as an assistant restaurant manager, I kept an eye on
my self-reflection questions such as, “If you were running this social enterprise, what
would you change and why?”
Doing exactly so resulted in the actions taken to improve the hospitality service as
well as enhancing the “generosity experience” for customers.
Other products such as the management manual and a crucial conversations
workshop were developed after reflecting on my learning objectives, which included
“put skills learned from courses (social hygiene, crucial conversations, constructive
criticism) to practice during management shifts on a daily basis” (CLP, 2014).

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5.2.2 PDCs
As a result of changing the initial plan to create a strategic report to increase
customer donations for the SROI analysis, it seemed logical to change my secondary
PDC 7 (stakeholders) into the main PDC and therefore making PDC 3 (strategy) the
secondary one, which was approved by my expert coach.
5.3 Professional Products
In this section I would like to demonstrate my thought process after reflecting on the
professional products.
5.3.1 SROI Analysis
It has been an empowering experience and overwhelming feeling to be able to have
taken the initiative to not only conduct a project I was unfamiliar with, but also
accomplish it successfully while receiving positive feedback from my boss and SROI
expert. The fact that LAA will present my Research Report to the board and
potentially impact the enterprise in a positive way, is beyond any of my expectations
and given me a bit more self-confidence.
To my surprise SROI expert, Ross Wyatt has even offered me a position at his SROI
consultancy company, Think Impact, should I ever return to Australia, which can be
seen in Appendix 4.
Reaching the majority of my initial goals were possible mostly with the help of this
analysis, as it forced me to get out of my comfort zone and network, engage with
different stakeholders, become familiar with social enterprise procedures as well as a
better understanding of financial aspects, which has prepared me heaps for a future
career in social entrepreneurship.
5.3.2 Customer Survey
Although this product is not necessarily as challenging, it has allowed me to gain
crucial insights in the different customer segments and their perception on LAA’s
products, services and social value creation for SROI assumptions. Overall I am glad
to have done this product, as LAA can continue with further studies by analyzing the
data in SPSS for potential correlations between the variables.
5.3.3 Management Manual
I am quite satisfied to have completed this product along with holding a crucial
conversations workshop, as it allowed me to accomplish my initial goal to make use
of my HTH courses and applying it to this enterprise.
I tend to get extremely nervous during public speaking, so challenging myself to hold
this workshop in front of managers has been great practice to continue on with the
stakeholder focus groups.
5.3.4 Focus Groups & One-On-One Interviews
As I have previously stated, this product has undoubtedly been my most preferred to
complete, because it allowed me to finally experience the social enterprise aspects,
whereas working as a restaurant manager felt like any other hospitality position.
I have to admit that I doubted whether LAA was truly achieving social value, but
after engaging with stakeholders and realizing how LAA has benefited so many
disadvantaged individuals, I became extremely passionate again. It also made me
realize that I would like to continue with these responsibilities for the many social
enterprises struggling with evidencing and measuring their social impact.

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5.4 Processes & Vital Lessons Learned
5.4.1 CLP
Though I have been able to surpass my personal goals, there is always room for
improvement, should I wish to continue this journey with constant progress. The first
thing that comes to mind was my main chosen PDC 3 (strategy) and accepting the
offer to create a strategic plan. I was in such desperate need to find a placement at a
social enterprise that I accepted this as my research component, knowing that
strategy is not necessarily my thing.
Even though it all worked out in the end, I have been struggling the first five months
with trying to start with this strategy report, as it has never been an area of much
interest to me.
Vital Lesson To Remind Self
“Even though I took on a challenge in an area I felt uncomfortable with, always
remember to ask yourself if that task triggers you before accepting it”.
5.4.2 Research Report
There is not much I would have done differently during this process, but there have
been moments where I questioned if it was smart to try something new that would
have a major influence on whether Id graduate or not. In my CLP I mentioned how I
tend to dwell too much on negative possibilities according to my Birkman results,
which occurred often during the primary stages of the research.
I have been fortunate to have such amazing mentors during my internship that
helped me fight these negative thoughts, but realize that I can not expect to rely on
constant validation from others any longer and should practice positive thinking
more. If I had focused on the end result and the possibility of successfully achieving
it, I would have been much more optimistic throughout this process.
Vital Lesson to Remind Self
“The next time I find myself thinking negative thoughts of failure, I will remember to
practice positive affirmation and think of obstacles as an opportunity for growth”
5.4.3 Internship
When I compare my first placement with my management placement, its very
evident to me that social entrepreneurship is the path I was meant to follow.
As I expressed in my CLP, social entrepreneurs are able to put themselves in the
shoes of others and visualize perspectives other than their own. This is one of the
most treasured qualities for understanding the needs of others whom they serve and
work with (Sherman, 2011).
Not only was I able to put my entrepreneurial skills to practice with several
management positions, I felt comfortable to express my feelings in a safe
environment where there is no pressure to achieve the level of excellence typically
expected in hospitality environments.
Working for an organization that embraces mistakes, made it possible for me to take
on unfamiliar responsibilities that I would otherwise not have dared to do in previous
job experiences. Other perks of working for a smaller organization included working
closely with a CEO and organizational development manager, gaining increased
knowledge and advice regarding social entrepreneurship and startup procedures.
It also made me realize how common it is to have many obstacles while still being
profitable, which made me more confident to consider operating my own enterprise
one day and discovered what I do and do not want in my future career.

41"
Also, as frustrating as it was to discover how LAA operated exactly opposite to what I
have learned at HTH, it made me realize exactly why each course was crucial to
study and allowed me to put these skills to practice.
One thing I would have done differently includes my communication skills when I
tried to convince the CEO that more focus needs to be put on becoming more
business minded in regards to its daily operations and strategic planning.
If I did not stumble across the SROI concept, the second best option would have
been a change management plan and I am not sure how I would have created the
urgency for change. In other words, I failed to make him see how business
fundamentals I felt were necessary to apply, would benefit the organization without
losing its “organic way” of operating. Even though it all worked out eventually, I still
felt extremely frustrated and less motivated for a little while.
Should I wish to become a SROI consultant, I will have to master this obstacle to
assure social enterprises why change is necessary.
Vital Lesson to Remind Self
“When trying to create urgency for change, its crucial to clarify (in non-business
language) the consequences of inaction and explain why constant change is
necessary for the organization in question”.
5.5 Personal Growth
Stepping out of my comfort zone for the first time has been the best decision I could
have made, as it allowed me to trust in my abilities more and made me realize that
taking on new challenges are much more rewarding than sticking with what is
familiar. I have therefore practiced one the most vital skills necessary to become a
successful entrepreneur. I honestly could not have done this without LAA’s staff and
the SROI expert, who never questioned my inexperience to accomplish my
assignments.
5.6 So Now What?
After receiving such great feedback from the SROI expert, Ross Wyatt, I will continue
to educate myself with social entrepreneurial studies including SROI studies through
free online courses. I have already enrolled in free online courses starting in April till
June held by Copenhagen Business School, which is also 20 minutes away from
where ill move to, Malmö, Sweden. This course will guide me through the process of
identifying an opportunity to address social issues I feel passionate about tackling as
well as outlining my idea in a business plan (Coursera, 2014). Final business plans
will be evaluated and the winners will be supported regarding the implementation of
their idea (Coursera, 2014). Seeing that the course “measuring impact” is held in
week 9 of 12, gives me the confidence that I am well ahead and a candidate to win.
Besides studying four to five hours per week, I will also apply for a creative culinary
position in Copenhagen, as food is one of my other passions mentioned in my CLP.
These days Copenhagen is listed as one of the top ten “foodie” capital cities of
Europe, not to mention Noma is located here, which is one of the best restaurants in
the world according to many (Lonely Planet, 2011). I will also look into SROI
consultancy opportunities in this city to expand my entrepreneurial experience.
Eventually I will want to start up on a smaller scale with a Caribbean food truck that
grows into a social enterprise restaurant while tackling the major social issues
derived from our current food industries (e.g. food wastage).

42"
Sources
C
Career Launching Plan 2014 by Thyrza Kleine
City of Melbourne,. 'Multicultural Communities - City Of
Melbourne'. Melbourne.vic.gov.au. N.p., 2010. Web. 19 Jan. 2015.
H
Hotelschool The Hague (2013) Launching Your Career Assessment Guide, Hotelschool
The Hague, Web. 21 Jan. 2015.
Hotelschool The Hague (2013) Course Guide, Hotelschool The Hague, Web. 19 Jan.
2015.
Hotelschool The Hague (2013) Launching Your Career, Hotelschool, The Hague Web.
14 Jan. 2015.
M
Movemequotes,. 'Top 10 Giving Back Quotes | Moveme
Quotes'. Movemequotes.com. Web. 12 Jan. 2014.
S
Social Return On Investment for Lentil As Anything 2015 by Thyrza Kleine
T
Travel and Leisure,. 'The Foodie Capitals Of Europe'. Travel + Leisure. N.p., 2011.
Web. 19 Jan. 2015.

44"
APPENDIX 1| Social Return On
Investment Analysis

APPENDIX(1( 2(
EXECUTIVE SUMMARY
Social Issues In Australia
With more that 2.5 million Australians have been living in poverty line in 2011-2012,
which is approximately 11.8% of the total population and poverty rates have only
been increasing according to ABS data (Phillips, 2013). Disadvantaged individuals
such as homeless youth, new immigrants, refugees, disabled etc. tend to experience
ongoing cycles of disadvantage despite efforts from government officials and other
charity based initiatives (Our Communities, 2010).
The Social Enterprise
(Nicholls, 2006).
Almost 15 years ago, a visionary named Shanaka Fernando decided to do something
that’s never been done before, to let customers decide how much to contribute for
their own dining experience.
Lentil As Anything (LAA) is a social enterprise offering international vegetarian meals
to customers of all backgrounds including disadvantaged individuals thanks to their
adopted Pay-As-You-Feel model (PAYF), commonly known as the Pay-What-You-
Want model.
LAA’s mission incorporates caring for people where money is not a concern,
promoting multi-culture understanding, reforming society, encouraging the young to
get involved in community based activities and hiring disadvantaged individuals. The
expected social value creation as a result includes access to nutritious meals,
inclusive community engagement, hospitality and commercial cookery skills, jobs
created for the disadvantaged and decreased discrimination. LAA has been growing
with now five different locations with a strong customer following and not to mention
delicious vegetarian meals. So the question is, what’s the problem?
The Problem Statement
Currently LAA only focuses on measuring its overall financial profits to determine its
success, therefore failing to measure its mission thus its social value in a systematic
way. This is common with many social enterprises due to the limitations that come
with attributing financial figures to ‘soft’ outcomes (e.g. confidence and self-esteem).
This leads to social enterprises getting trapped in the so-called adjustment whirlpool;
when the social mission is excluded from the continuous flow of entrepreneurial
adjustment between strategies, measurement and adjustment by solely focusing on
growth based measures to signify any evidence of social impact (Ormiston, Seymour,
2011).
The Solution: Social Return On Investment (SROI)
Fortunately, a quantitative social metric framework has been created called Social
Return On Investment (SROI), which expresses social value in monetary terms,
which is called monetization and allows a relative analysis to be formed (EVPA,
2008). SROI tells the story of how a social enterprises’ social value is being created
through the measurement of social, environmental and economic outcomes using
monetary values to represent those outcomes (The SROI Network, 2010).

APPENDIX(1( 3(
Goal Of The Research
After completing the research, LAA will be able to understand how to measure its
social value in order to see if it truly reaches its mission and therefore knows what
the social changes are. This analysis will allow for LAA to prove its social impact
for the first time in the hopes of gaining more funding opportunities as well as a clear
overview on how they can improve to continuously maximize their social value
henceforth.
The time frame that will be evaluated is July 2013 – June 2014 and will only include
the three restaurants that have operated within this entire period including
Abbotsford, St. Kilda and Footscray.
The main research question of this research report was included the following:
What is LAA’s current social return on investment (SROI) and which
strategic recommendations will allow for maximizing social value within 3-5
years?
Findings
A Theory of Change model has been developed in the LAA context to explore the
nature and meaning of how LAA aims to create change, specifically the relationship
between the activities, outputs and outcomes. From this method, four domains of
outcomes have been determined, which include increased social inclusion
(customers), increased employability (volunteers), increased employment
(volunteers turned paid staff among disadvantaged) and increased government cost
savings (government).
From these four domain outcomes, multiple outcomes have been discovered after
engaging the stakeholders, for example visiting LAA allows for increased sense of
trust and belonging, reduced stigma and discrimination as well as self-esteem and
mental wellbeing; volunteering at the restaurants leads to increased professional
competence. Other outcomes include increased employment as well as decreased
food waste costs and carbon emissions costs for the government.
In total 12 outcomes have been identified which can be found on page 19 with the
accompanying rationale and financial proxies.
The initial purposes of LAA have therefore not only been accomplished, but its been
proven that additional longer term outcomes are achieved including the sense of
trust and belonging, self-esteem and mental wellbeing, reduced stigma and
discrimination and competence and purpose.
SROI Ratio
The SROI ratio of $5.86 suggests that for every AUD dollar invested into the three
restaurants of LAA, it produces approximately $5.86 in social value. It is also
evident that the largest outcome domain in terms of monetary value per person is
$22,568.64, meaning the disadvantaged volunteers turned paid staff are achieving
the most social value. The largest outcome domain however, turns out to be
increased social inclusion with $14,812,550.00, as this includes the majority of the
beneficiaries (2500 customers).

APPENDIX(1( 4(
Strategic Recommendations
Strategic recommendations have been formulated to not only enhance future SROI
studies, but also an overall improvement in main stakeholder participation and as a
methodology for future studies.
These recommendations will help LAA to achieve a strengthened customer
relationship, increased donations, more funding and increased volunteer and
employee loyalty which helps LAA to realize one of the two identified goals of this
research to prove its social value.
For example, by re-educating customers regularly on how its planned to create a
better world and showing social impact already achieved through an online monthly
newspaper and forums for thinking together as well as systems for sharing data.
Also, LAA should adopt trends such as Social Flow, which uses real-time data to
control what and when to publish to LAA’s social media properties to guarantee
maximized reach and customer engagement (Social Flow, 2014).
Recommendations for volunteers include, engaging stakeholders continuously,
allowing volunteers to understand and become deeply engaged with the social value
they help to create, and resulting in a highly motivating team. With the final
stakeholder, government, I advise my client to post real-time expenses and
donations online to illustrate how they work, which will reinforce credibility on a
higher level.
The second goal of this research, which is to improve to continuously maximize
their social value, will also be made possible through recommendations formulated to
enhance future SROI studies and to use as a methodology, as better understanding
of measuring social value will lead to maximizing social value.
Aside from understanding the outcomes to improve towards maximizing, LAA is
proving to effectively generate significant social value for its community and for the
wider society through social innovation.

APPENDIX(1( 5(
Table of Contents
1. LENTIL AS ANYTHING BACKGROUND! 7(
1.1 ORGANIZATIONAL SNAPSHOT! 7(
1.2 LENTIL AS ANYTHING IN DETAIL! 8(
1.3 DEFINING SOCIAL ENTREPRENEURSHIP: WHAT YOU NEED TO KNOW! 9(
1.4 RESEARCH! 12(
REASON FOR RESEARCH( 12(
GOAL OF RESEARCH( 12(
GOAL OF THE CLIENT( 12(
MAIN RESEARCH QUESTION (MRQ)( 13(
SUB QUESTIONS( 13(
1.5 SROI METHODOLOGY! 13(
2. STAGE 1: ESTABLISHING SCOPE AND ENGAGING STAKEHOLDERS!15(
2.1 ESTABLISHING SCOPE! 15(
2.2 STAKEHOLDER ENGAGEMENT! 16(
3. STAGE 2: MAPPING OUTCOMES! 17(
3.1 THEORY OF CHANGE! 17(
3.2 IDENTIFYING INPUTS! 18(
3.3 DESCRIBING OUTCOMES! 18(
THE FOUR DOMAINS OF OUTCOMES( 20(
4. STAGE 3: EVIDENCING OUTCOMES AND GIVING THEM VALUE! 22(
4.1 INDICATORS, DATA COLLECTION AND POSSIBLE PROXIES! 22(
4.2 BENEFIT PERIOD! 25(
BENEFIT PERIOD- ESTABLISHING HOW LONG OUTCOMES LAST AFTER A YEAR( 25(
5. STAGE 4: ESTABLISHING IMPACT! 26(
5.1 IMPACT ASSESSMENT FACTORS! 26(
DEADWEIGHT( 26(
DISPLACEMENT( 26(
ATTRIBUTION( 26(
DROP-OFF AND BENEFIT PERIOD( 26(
5.2 CALCULATING YOUR IMPACT! 27(
6. STAGE 5: MEASURING SROI RATIO! 30(
7. STAGE 6: SENSITIVITY ANALYSIS! 31(
8. LIMITATIONS OF THE SROI STUDY! 32(
9. INSIGHTS AND RECOMMENDATIONS! 33(
9.1. INSIGHTS! 33(

APPENDIX(1( 6(
9.2. RECOMMENDATIONS! 34(
RECOMMENDATIONS- AS AN ENHANCEMENT IN MAIN STAKEHOLDERS PARTICIPATION( 34(
RECOMMENDATIONS- AS AN IMPROVEMENT IN MEASURING FUTURE SROI STUDIES( 36(
RECOMMENDATIONS- AS A METHODOLOGY FOR LAA’S SROI FUTURE STUDIES( 37(
APPENDICES! 38(
APPENDIX 1: RESEARCH TREE! 38(
APPENDIX 2: CALCULATIONS! 39(
APPENDIX 3: FOCUS GROUPS INTERVIEW GUIDE! 41(
APPENDIX 4: STAKEHOLDER QUOTES! 42(
APPENDIX 5: FINANCIAL PROXIES SOURCES! 43(
APPENDIX 6: CUSTOMER SURVEY! 44(
APPENDIX 7: SROI PRINCIPLES! 46(
APPENDIX 8: SPSS OUTPUTS! 47(
(
Abbreviations
LAA Lentil As Anything
PAYF Pay-As-You-Feel
SROI Social Return On Investment
MRQ Main Research Question
HQ Head Quarters
CSF Critical Success Factor
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(

APPENDIX(1( 7(
1. Lentil As Anything Background
1.1 Organizational Snapshot
After scanning the organization and achieving 240+ filled out customer surveys, the
following data has been identified. Please see Appendix 6 for the customer survey.
Established 2000
Founder Shanaka Fernanado
What LAA does Lentil as Anything (LAA) is a vegetarian social enterprise that
solely relies on customer donations with the Pay-As-You-Feel
pricing model
Value proposition Diverse customers of all financial backgrounds, cultures, lifestyles
etc. have a dining experience on communal tables thanks to the
pricing model. Customers get to decide the price and the form of
contribution, which can range anywhere from volunteering to
creating artwork for its restaurant locations.
Customer segments
(Of their biggest
restaurant location)
Employed (47%)
Student (25%)
Traveller (12%)
Job seeker (11%)
Retired (3%)
Disadvantaged*
stakeholders
(Direct
beneficiaries)
*Disadvantaged individuals includes homeless, disabled, socially
isolated, retired, youth, refugees, long-term unemployed and
new immigrants
Restaurant
locations
St Kilda Restaurant (2000)
Abbotsford Convent Restaurant (2005)
Footscray Restaurant (2010)
Preston Restaurant (2014)
Newtown Restaurant (2014)
Revenue streams Restaurant donations
Catering donations
Merchandise donations
In kind donations
Food donations
Contribution Range
per person
Ranges between 0-25 AUD dollars per person ($2.75 average)
(
(
(

APPENDIX(1( 8(
1.2 Lentil As Anything In Detail
Here, activities of LAA and three of the five restaurant locations are explained, which
will be the only ones included in the analysis. This is due to the fact that LAA will
only include restaurants that have been running in the entire time frame of July
2013- June 2014.
How LAA Aims To Change The World
More than 2.5 million Australians have been living in poverty line in 2011-2012,
which is approximately 11.8% of the total population and poverty rates have only
been increasing according to ABS data (Phillips, 2013). Disadvantaged individuals
such as homeless youth, new immigrants, refugees, disabled etc. tend to experience
ongoing cycles of disadvantage despite efforts from government officials and other
charity based initiatives (Our Communities, 2010).
It took one visionary from Sri Lanka to come up with this crazy idea to be one of the
first to let customers decide what to pay for their meal almost 15 years ago. Its been
said that rocker Bon Jovi was inspired by LAA to start his own charitable restaurant
with the pricing model. In table 1 a model has been designed for a clear overview
how LAA aims to create social value.
Table 1: LAA’s Mission For Value Creation

APPENDIX(1( 9(
St. Kilda Location
The first LAA opened in 2000 in a small location where people loved to eat because
of its eccentric architecture, its unique vegetarian menu, the friendly staff and good
value for money food. This location attracts mostly locals and tourists including
backpackers, as its located close to the St. Kilda beach feeding up to 180 customers
a day.
Abbotsford Convent Location
This is the biggest location and started in 2005 and has received the support of the
general community including its staff and volunteers. In 2010 The Convent indicated
that it would not be renewing their lease - leading to a massive community backlash.
As a result, 30,000 signature petitions have been submitted in Parliament and the
Convent agreed to negotiate the terms of a new lease.
The Convent and LAA have since then formed a positive working relationship. This
location feeds up to 1000 customers per day, which has been confirmed after
personally counting an entire day with 1277 customers during winter season. This
restaurant generates the majority of its profits, thanks to its size and good balance
between “stable” and disadvantaged customers.
Footscray Location
This location is not yet profitable, as its located in Footscray where there is a high
concentration of price sensitive customers. Footscray has a rich multi culture with
people from many African nations (especially Ethiopia, Eritrea, Sudan and Somalia)
as well as Chinese, Vietnamese, Europeans, Indians and Pakistanis.
The majority of customers and volunteers are identified as disadvantaged and
therefore believed to generate a significant amount of social value, which is why LAA
has decided not to close its doors. Here 200 customers are being fed on a daily basis
with the lowest price per customer when compared to other locations.
1.3 Defining Social Entrepreneurship: What You Need To Know
(
Social Entrepreneurship
(Nicholls, 2006). Greg Dees, who is known as the man who defined social
entrepreneurship, explained that these social actors generate new combinations of
people and resources that drastically enhance society’s ability to address and tackle
social issues (Dees, 1998).
It should be noted however, that the term social entrepreneurship has yet to gain a
universal definition (Nicholls, 2006). A possible reason for this could be due to the
term emerging from various fields of academia (Short et al. 2009), but perhaps also
due to the terms’ constituent components (Nicholls, 2006).
For example, looking at the ‘social’ component, some academics consider the social
mission to be the only driver of the social enterprise, whereas others identify the
social mission as additional and secondary to commercial drivers (Mair, Marti, 2006).
This study considers that the ‘social’ component addresses and tackles social issues
and creates solutions to achieve value creation (Mair, Marti, 2006) in the LAA
context, while being aware of the complementary roles both ‘economic’ and ‘social’
play in creating social change.

APPENDIX(1( 10(
Social Enterprises Vs. Commercial Enterprises
An obvious distinction between these two involves the primary reason for existence,
as commercial enterprises aim to generate the most common proxy for economic
value, being financial profits (Nicholls 2006, Young 2006) and social enterprises to
achieve another form of value, social value. While commercial enterprises indirectly
create social value as a result of economic growth, job creation and poverty
reduction (Ahmad, Hoffman, 2008) it is typically a by-product of their mission to
generate monetary value.
Social enterprises, contrarily, pursue social value directly, while any financial value
created by social enterprises is identified as a means-to-a-social-end (Ormiston,
Seymour, 2011).
Another crucial difference between these two enterprises involves the mission, which
is recognized as the starting line that reinforces the holistic procedure of value
creation (Schumpeter 1939, Mintzberg 1987, Hambrick and Fredrickson 2001).
While a commercial enterprises’ mission is mostly communicated with its staff and
shareholders with much less focus on communicating with other stakeholders, social
enterprises do the exact opposite (Hambrick and Fredrickson, 2001).
Instead of focusing on the primarily shareholder-centered view of commercial
activities and financial growth, the main focus is switched to stakeholder-
management (Perrini, 2006).
This shift demands greater emphasis compared to the mission of commercial
enterprises, which will be illustrated through key questions that help formulate an
aligned, communicated and coherent social mission (Brooks, 2009): 1) What will the
entrepreneur do? 2) What is the unique innovation? 3) What is the meaning of
value? 4) How will you measure it? 5) What constitutes success? These questions
emphasize the complex procedure of creating a social mission (Ormiston, Seymour,
2011).
In terms of strategy, the general key question for commercial enterprises is ‘how
are returns obtained?’ (Hambrick and Fredrickson, 2001) whereas with social
enterprises it questions how social value is created.
The final crucial difference includes the last step in the social value creation process,
measuring the impact, which will be explained in the subsequent paragraph.
Social Value Definition And How Its Measured
Social value can be defined as value related to personal relationships, which can
include materialistic values that involve the anticipations of exchange, or expressive
value, which is not apprehensive regarding what can be gained, rather what can be
conveyed to others (Miczo, 2002).
Social enterprises also generate financial value and can easily adopt broadly utilized
performance measurement tools, but how can they measure the value they prioritize
and seek to achieve? Considering that social change requires time to become evident
and social value can be challenging to attribute (Austin et al. 2006) just to name a
few.
Fortunately, quantitative social metrics have been established after qualitative
metrics have been criticized for not attracting funding or creating comparability and
benchmarks (Nicholls, 2006). One of these quantitative social metrics includes the
Social Return On Investment (SROI) (Emerson, 2000).
This metric has also been criticized due to imposing improper consistency onto
complicated data of imbalanced reliability (Mulgan, 2006). Nevertheless, SROI

APPENDIX(1( 11(
expresses social value in monetary terms, which is called monetization and allows a
relative analysis to be formed (EVPA, 2008).
Social enterprises always contain financial investments and the SROI allows social
value to also be expressed in monetary value, which results in comprehensions
regarding the amount of impact that is created, relative to financial investments
(EVPA, 2008). SROI tells the story of how a social enterprises’ social value is being
created through the measurement of social, environmental and economic outcomes
using monetary values to represent those outcomes (The SROI Network, 2010).
Many organizations claimed to reinforce their ability to participate in strategic
planning as a result of measuring their SROI, thanks to the analysis evidencing, in a
organized structure, what the outcomes and impact are and how it is achieved
(Social Ventures Australia Consulting, 2012).
Other benefits that derive from this analysis includes more effective decision-making,
enhanced communication, clear focus on what’s essential, clear governance and
growing investment mentality (EVPA, 2008).
Common Pitfalls For Social Enterprises
As mentioned above, it’s difficult for social enterprises to measure social value and
therefore end up solely measuring quantified data such as the growth in
beneficiaries, number of enterprises or financial growth to constitute success.
The problem with the inability to measure a value you aim to achieve, affects how
social entrepreneurs comprehend the value that’s created, which is known as the
mission measurement paradox (Ormiston, Seymour, 2011).
This involves a disconnect between mission, objectives and impact measurement
when social entrepreneurs assume that their mission to achieve social value has
been reached by gaining increased beneficiaries rather than analyzing the impact
they achieved on those beneficiaries (Ormiston, Seymour, 2011).
Social entrepreneurs are known to subsequently end up in an adjustment whirlpool,
which is when the social mission is excluded from the continuous flow of
entrepreneurial adjustment between strategies, measurement and adjustment by
solely focusing on growth based measures to signify any evidence of social impact
(Ormiston, Seymour, 2011).
Critical Success Factors (CSFs)
CSFs are the fundamental areas of activity that must be implemented to achieve the
mission, objectives or goals of an organization (Mind Tools, 2010). By identifying
those of LAA, it will be made possible to formulate strategic recommendations
keeping in mind of these CSFs to ensure its mission will be achieved.
Several areas will be looked at when determining the CSFs for LAA, such as the food
service industries, social enterprise industries, PAYF pricing model and community-
based industries.
The following sources have been examined to determine the CSFs, including:
! CSFs and performance measures for start-up social and environmental
enterprises (Boyer, 2008)
! CSFs of the Food Service Industry (Mamalis, 2009)
! Interview with author of The Complete Guide to PWYW Pricing Tom Morkes
! 10 CSFs in Building Communities of Practice (McDermott, 2009)
The following page demonstrates the CSFs in table 2, in which the black
highlighted ones are not yet present at LAA, meaning that these need to be taken
into consideration, should LAA want to achieve its mission.

LER Thyrza A.D. Kleine 692070

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