Presentation given by Emma Vallance, Social Impact Scotland, Forth Sector Development and Rhona MacPherson, Senior Manager, Dumfries and Galloway Council, UK at a FEANTSA seminar on "Funding strategies: Building the case for homelessness", hosted by the Committee of the Regions, June 2012

1. 1
Social Return On Investment:
Demonstrating value in
homelessness services
Funding strategies
Building the case for homelessness
8th June 2012

2. Introductions
• Emma Vallance
Social Impact Scotland, Forth Sector Development
Emma.Vallance@forthsector.org.uk
• Rhona MacPherson
Senior Manager, Dumfries and Galloway Council
Rhona.Lewis@dumgal.gov.uk

3. 3
Outline
•What is Social Return on Investment &
what is Social Impact?
•Why use it and how does it work?
•What support and information is available?
•Dumfries & Galloway Outcomes
Commissioning framework

4. 4
What is ‘Social Impact?’ & ‘SROI’?
• Social Return on Investment (SROI) is a
way to measure your Social Impact
• The effects on various people, resulting
from an activity
• The change that happens for people

5. 5
Why?
• Communicate the SOCIAL VALUE
generated
- Increase the Social Impact & improve service
delivery
- Evidence
- Adjust services
- Consider spend and understand what works
- Partnerships

6. Social Return on Investment (SROI)
• VALUES the impact of an activity
experienced by stakeholders (financial
proxies)
• Ratio of the investment into the activity:
SOCIAL RETURN generated
• Full report – story is essential (Forecast or
Evaluation)

7. Principles
1 Involve stakeholders
2 Understand what changes
3 Value what matters
4 Only include what is material
5 Do not over claim
6 Be Transparent
7 Verify the Result

8. Social Return on Investment (SROI)
• Whole formalised process?
• Cost savings/effectiveness?
• Broader picture of value (stakeholders)
• Communicate Social Value
SROI = a ratio of investment to social return + a
full report detailing the STORY of CHANGE
for your activity

9. 9
‘Outcomes are the changes,
benefits, learning or other effects
that happen as a result of your work’
Charities Evaluation Service
Inputs Outputs Outcomes Impacts
Theory of Change

10. 10
Outcomes
Intended Unintended
Intended Unintended
Positive Positive Positive
Unintended
Negative Negative

11. Stakeholder Outcome Indicator Possible
Financial
Proxy
Person with Improved Level of Cost of
mental mental use of counselling
health health mental services
problem health etc.
services

12. 12
Getting Started
• Why?
– Agenda
• Resources required
– Stakeholder analysis and monitoring practice
– Baseline outcomes data
– Outcomes to be delivered
• Timescales
– Limitations and challenges

13. Resources
• Social Impact Scotland
• http://www.socialimpactscotland.org.uk/ho
me.aspx
– Impact Arts ‘Fab Pad’ SROI Case study
• Charities Evaluation Service
• Evaluation Support Scotland
• New Economics Foundation – prove and
improve

14. 14
Dumfries and Galloway Council
• Unitary authority in south west Scotland
• 6426 sq km
• Population 150,000
• Rural economy
• Good working relationships (strategic and
operational) with National Health Service,
third sector and private providers

15. 15
Drivers
• Decreasing budgets
• Increasing demand
• Desire to ensure spend achieves results
• Capture innovation of providers

16. 16
Stage 1- move elected member and
officer thinking to outcomes
• Developed a Commissioning and Service
Delivery strategy for all Council services
• Emphasis on outcomes for the first time

17. 17
Stage 2 – prepare stakeholder
groups for the change
• Chief Executive used a large third sector
conference to announce the shift to
outcomes
• Followed up in weeks that followed by
meetings with key players in sector
• Encouraged feedback, consultation and
debate on how this would work

18. 18
Stage 3 –train our own staff
• Worked with Forth Sector to provide training
on concepts and open up internal debate
• Linked the work to what was required in
terms of our Commissioning and Service
Delivery Strategy
• Offered endless support in preparing
commission briefs and outlines

19. 19
Stage 4– tender
• First tender would be a stepping stone
towards full outcome based commissioning
next time
• Use first contract period to collect data on
what does and doesn’t work

20. 20
Lessons Learned
• No matter how well people embrace the
concepts – the harsh reality of outcome based
tendering is a culture shock that will be resisted
• Difficult to keep elected members out of detail
and returning to input specifications
• Don’t tender close to elections!
• Don’t set strategic outcomes for front line staff –
measure the right outcomes at each level

21. ‘Golden Thread’ for
National priorities
Strategic Planning and
Reporting of Outcomes SOA,
Strategic Priorities and
Department Business Plans
Local Authority
Commissioning
Public, Private and
Third Sector Service Providers
Service Users and
Community Stakeholders

22. 22
For the impact measurement to be correct, meaningful
front line user data needs to be collected.
We recommend the use of a tool such as “outcomes
star”. It is easy to follow for both case workers and
service users…you can view the tool at
www.outcomesstar.org.uk

23. 23
What is measured at service user level?
• Motivation and taking responsibility
• Self care and living skills
• Managing money
• Social networks and relationships
• Drug and alcohol misuse
• Physical health
• Mental health
• Offending and criminal behaviour
• Emotional and mental health
• Meaningful use of time
• Managing tenancy and accommodation
•

24. 24
Key messages
• The evidence of what does and does not
make an impact may generate surprises
• As society changes, so will what works.

25. 25
Take the first step….
It’s an exciting journey!