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Making the
     business case
         for public




                                           Picture CC: Some rights reserved By: mconnors
      engagement



Edward Andersson & Simon Burall, Involve
“Nowadays people know the
price of everything and the value
of nothing.”

                      Oscar Wilde
Introduction




Picture CC: Some rights reserved By: mconnors
About
• Registered Charity (nr. 1130568)
• Focus: Public and stakeholder engagement
• Works with: Central & local government.
  Health organisations, NGOs and International
  Organisations
• www.involve.org.uk
Sciencewise-Expert Resource Centre
                                 Sciencewise Expert Resource Centre for Public
                                  Dialogue in Science and Technology (ERC)
   To help improve
policy-making in                 Funded by the Department for Business
science and                       Innovation and Skills (BIS)
technology through
the use of public                It aims to help policy makers commission and
dialogue and                      use public dialogue to inform policy decisions
engagement                        in emerging areas of science and technology

                                 Launched in 2008




www.sciencewise-erc.org.uk                                                         6
What public dialogue costs – in context


   The scale of
                             Nanodialogues project (2006) cost
   investment in             £240,000 and explored
   dialogue projects
   is dwarfed by the         nanotechnology &upstream
   scale of the policy       engagement over 26 months. Value of
   fields that
   dialogue has              nano research in 2007 was estimated
   influenced                to be about $12 billion; and the value
                             of nano-enabled products was
                             estimated then to be around $50
                             billion

www.sciencewise-erc.org.uk                                             7
What not doing public dialogue can cost

                             Overall, the costs of not doing public
                             dialogue can far outweigh the costs of the
                             dialogue. For example:


                             • public opposition can delay or entirely
                             prevent continuing policy development,
                             innovation and new technologies
                             • conflict and entrenched positions
                             can result in the complete rejection of new
                             technologies.
                             "If you think dialogue is expensive, try
                             conflict”
www.sciencewise-erc.org.uk                                                8
Getting
                                                Started




Picture CC: Some rights reserved By: mconnors
What we’ll cover
•   Introduction
•   Questions and answers
•   Introducing the tool
•   Exercise
•   Plenary Disucssion
Examples of Engagement
•   Science Policy Dialogue
•   Science Festival
•   Community Outreach
•   Community Jury
•   Co-creation of Research
Business Case
 ‘At the end of the day the most important
 question you need to tackle isn’t the ‘what’
 but the ‘why’. You need to be able to
 articulate a compelling rationale for
 engagement that convinces your colleagues.’

         Paul Younger -University of Newcastle
Research vs. Business case
Research           Business case
• Academic         • Practical
• Complete         • Incomplete
• Time consuming   • As much time as
• Truth              you have
                   • Good enough
In short...

 Understanding can be greatly
 enhanced but evidence will always
 be incomplete.
Plenary discussion

• Any questions?

• What are challenges of valuing engagement?

• What are benefits of valuing engagement?
Getting results




Picture CC: Some rights reserved By: mconnors
Using the Involve Toolkit
Exercise
• In groups identify how you might value the
  costs and benefits of a particular engagement
  project using the tool.
• Ideally a ‘live’ project; however, it could also
  be a ‘dummy’ project.
Exercise

1.   Define the focus and purpose
2.   Decide what to measure
3.   Complete the checklist and chart
4.   Analyse the results and ‘test’ with other
     groups
Stage 1 - Scope the business case

• Decide how you will use the toolkit
• Decide who your audiences are
• Decide if monetary valuation is appropriate
  for you
Costs that    Benefits that
can be given   can be given
a monetary      a monetary
   value           value



 Costs that    Benefits that
 cannot be      cannot be
expressed in   expressed in
 monetary       monetary
   terms          terms
Stage 2 –Define focus and purpose

• Decide the focus for the business case
• Clarify the intended purpose and outcomes
• Consider possible comparator areas/ projects
Comparators
•   Do nothing
•   Status Quo
•   Alternative engagement methods
•   Alternative means of achieving the benefits
Distributional impacts
• DEFRA and the Environment Agency (2005)
  estimated that around 5% of all permit
  applications took in excess of 500 hrs to
  process and 1% took over 1,000 hrs.
• Total Place Report (2010) found 200 to 300
  ‘chaotic’ families in Croydon; each cost public
  services around £250,000 per year
Stage 3 -Decide what to measure

• Identify what can be given a money value and
  what can't
• Identify who you need help from to obtain the
  data
• Identify where proxies might be appropriate
Benefits
•   Innovation and creativity
•   Avoiding conflict
•   Access to new resources
•   Development/maintenance
•   Better quality outcomes
•   Information and expertise
•   Increased public awareness
•   Sharing responsibility
•   Increased use
•   Staff morale
Non-monetary benefits
• Revealed preference (What people do)
• Stated preference (What people say)
   – Willingness to pay
   – Willingness to accept
• Benefits transfer (What other people measured)
• Replacement Costs (What people would do instead)
Benefits Transfer (Portsmouth)
•   Bin fires in area: 2006: 154 2008: 135
•   Each case of criminal damage ~ £856
•   4.29 crimes unreported per reported case.
•   Potential saving of £69,772.56 per year
•   Also non monetary benefits: increased
    volunteering, levels of satisfaction
Replacement costs
New resource                    Replacement cost
Increased volunteer time        The cost of providing the
                                service or activity using paid
                                staff
New intelligence and            The cost of gathering the same
information                     information using a market
                                research company
New and improved                The cost of building the same
relationships                   links through a PR and
                                communications exercise
Increased public awareness of   The cost of achieving a similar
policies and services           level of awareness through
                                campaigns or PR
Stage 4 Complete checklist & chart

•   Understand your data and assumptions
•   Gather the data you need
•   Fill in the checklist and calculation chart
•   Use spreadsheets to track costs and benefits
Benefits - Increase trust
Monetary value     Measured by          Non-monetary value
Reduced spend on   Staff work           Reported trust
complaints         diaries/time sheets, levels, people
                   complaints listings  reporting feeling
                                        able to influence
                                        decisions
Benefits - Take difficult decisions
Monetary value        Measured by          Non-monetary value
Reduced conflict      Legal costs, staff   Number of negative
and reduced spend     work diaries/time    articles in press,
on legal challenges   sheets, complaints   survey results
                      listings
Stage 5 -Analyse results

• Try out different methods of analysis, for
  example SROI, Cost benefit, Cost-effectiveness
• Understand the limitations of the data
• Test results with colleagues
Example -Probability
Environment Agency aimed to build
  ownership/trust in flood defence schemes:
• Flood mitigation benefit= £35-40 million
• Engagement= £2 million
• To be cost effective in future probability of
  success must increase by 5.7% (£2 m/£35m).
• Engagement needs to change the result from
  rejection to acceptance in 1 case in 20 to be
  worthwhile.
Stage 6 -Present the business case

• Select appropriate presentation format
• Present the business case
• Adapt to feedback
Communicating the result
• Use the business case to tell stories
• Tailor your argument to fit your audience
• Seeing is believing
• Anecdotes can be powerful
• Don’t forget the potential costs of non-
  engagement
• Theory of Change
Doncaster furniture recycling
Benefits to council         Benefits to clients
• 488 tonnes of waste       • 4000+ low-income
  diverted from landfill,     households received
  saving approximately        goods –estimated
  £20,000 in landfill tax     supplying same families
  payments.                   with second-hand
                              goods would have cost
                              £140,000 with existing
                              market prices.
Exercise
• In groups identify how you might value the
  costs and benefits of a particular engagement
  project using the tool.
• Ideally a ‘live’ project; however, it could also
  be a ‘dummy’ project.
Exercise

1.   Define the focus and purpose
2.   Decide what to measure
3.   Complete the checklist and chart
4.   Analyse the results and ‘test’ with other
     groups
Tallying the results




Picture CC: Some rights reserved By: mconnors
Plenary
• What did you discover?
• Were there any unexpected results?
• What will you do with these results?
Links
• http://www.involve.org.uk/wp-
  content/uploads/2011/07/Making-the-Case-
  for-Public-Engagement.pdf
• http://www.involve.org.uk/wp-
  content/uploads/2011/07/Calculating-costs-
  and-benefits-with-comparator.xls
Links 2
• http://healthandcare.dh.gov.uk/economic-
  case-for-ppi
• http://www.demsoc.org/static/Financial-Case-
  white-paper.pdf
• http://www.idea.gov.uk/idk/core/page.do?pa
  geId=17455595
“It is better to be roughly right
than precisely wrong”

          John Maynard Keynes
The tail end
involve




                           Picture CC: Some rights reserved By: mconnors
Royal London House
22-25 Finsbury Square
London
EC2A 1DX
t: 0 20 7920 6470
e: edward@involve.org.uk
twitter: ed_andersson

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SCC 2012 Making the business case for public engagement

  • 1. Making the business case for public Picture CC: Some rights reserved By: mconnors engagement Edward Andersson & Simon Burall, Involve
  • 2. “Nowadays people know the price of everything and the value of nothing.” Oscar Wilde
  • 3. Introduction Picture CC: Some rights reserved By: mconnors
  • 4. About • Registered Charity (nr. 1130568) • Focus: Public and stakeholder engagement • Works with: Central & local government. Health organisations, NGOs and International Organisations • www.involve.org.uk
  • 5.
  • 6. Sciencewise-Expert Resource Centre  Sciencewise Expert Resource Centre for Public Dialogue in Science and Technology (ERC) To help improve policy-making in  Funded by the Department for Business science and Innovation and Skills (BIS) technology through the use of public  It aims to help policy makers commission and dialogue and use public dialogue to inform policy decisions engagement in emerging areas of science and technology  Launched in 2008 www.sciencewise-erc.org.uk 6
  • 7. What public dialogue costs – in context The scale of Nanodialogues project (2006) cost investment in £240,000 and explored dialogue projects is dwarfed by the nanotechnology &upstream scale of the policy engagement over 26 months. Value of fields that dialogue has nano research in 2007 was estimated influenced to be about $12 billion; and the value of nano-enabled products was estimated then to be around $50 billion www.sciencewise-erc.org.uk 7
  • 8. What not doing public dialogue can cost Overall, the costs of not doing public dialogue can far outweigh the costs of the dialogue. For example: • public opposition can delay or entirely prevent continuing policy development, innovation and new technologies • conflict and entrenched positions can result in the complete rejection of new technologies. "If you think dialogue is expensive, try conflict” www.sciencewise-erc.org.uk 8
  • 9. Getting Started Picture CC: Some rights reserved By: mconnors
  • 10. What we’ll cover • Introduction • Questions and answers • Introducing the tool • Exercise • Plenary Disucssion
  • 11. Examples of Engagement • Science Policy Dialogue • Science Festival • Community Outreach • Community Jury • Co-creation of Research
  • 12. Business Case ‘At the end of the day the most important question you need to tackle isn’t the ‘what’ but the ‘why’. You need to be able to articulate a compelling rationale for engagement that convinces your colleagues.’ Paul Younger -University of Newcastle
  • 13. Research vs. Business case Research Business case • Academic • Practical • Complete • Incomplete • Time consuming • As much time as • Truth you have • Good enough
  • 14. In short... Understanding can be greatly enhanced but evidence will always be incomplete.
  • 15. Plenary discussion • Any questions? • What are challenges of valuing engagement? • What are benefits of valuing engagement?
  • 16. Getting results Picture CC: Some rights reserved By: mconnors
  • 17. Using the Involve Toolkit
  • 18. Exercise • In groups identify how you might value the costs and benefits of a particular engagement project using the tool. • Ideally a ‘live’ project; however, it could also be a ‘dummy’ project.
  • 19. Exercise 1. Define the focus and purpose 2. Decide what to measure 3. Complete the checklist and chart 4. Analyse the results and ‘test’ with other groups
  • 20. Stage 1 - Scope the business case • Decide how you will use the toolkit • Decide who your audiences are • Decide if monetary valuation is appropriate for you
  • 21. Costs that Benefits that can be given can be given a monetary a monetary value value Costs that Benefits that cannot be cannot be expressed in expressed in monetary monetary terms terms
  • 22. Stage 2 –Define focus and purpose • Decide the focus for the business case • Clarify the intended purpose and outcomes • Consider possible comparator areas/ projects
  • 23. Comparators • Do nothing • Status Quo • Alternative engagement methods • Alternative means of achieving the benefits
  • 24. Distributional impacts • DEFRA and the Environment Agency (2005) estimated that around 5% of all permit applications took in excess of 500 hrs to process and 1% took over 1,000 hrs. • Total Place Report (2010) found 200 to 300 ‘chaotic’ families in Croydon; each cost public services around £250,000 per year
  • 25. Stage 3 -Decide what to measure • Identify what can be given a money value and what can't • Identify who you need help from to obtain the data • Identify where proxies might be appropriate
  • 26. Benefits • Innovation and creativity • Avoiding conflict • Access to new resources • Development/maintenance • Better quality outcomes • Information and expertise • Increased public awareness • Sharing responsibility • Increased use • Staff morale
  • 27. Non-monetary benefits • Revealed preference (What people do) • Stated preference (What people say) – Willingness to pay – Willingness to accept • Benefits transfer (What other people measured) • Replacement Costs (What people would do instead)
  • 28. Benefits Transfer (Portsmouth) • Bin fires in area: 2006: 154 2008: 135 • Each case of criminal damage ~ £856 • 4.29 crimes unreported per reported case. • Potential saving of £69,772.56 per year • Also non monetary benefits: increased volunteering, levels of satisfaction
  • 29. Replacement costs New resource Replacement cost Increased volunteer time The cost of providing the service or activity using paid staff New intelligence and The cost of gathering the same information information using a market research company New and improved The cost of building the same relationships links through a PR and communications exercise Increased public awareness of The cost of achieving a similar policies and services level of awareness through campaigns or PR
  • 30. Stage 4 Complete checklist & chart • Understand your data and assumptions • Gather the data you need • Fill in the checklist and calculation chart • Use spreadsheets to track costs and benefits
  • 31. Benefits - Increase trust Monetary value Measured by Non-monetary value Reduced spend on Staff work Reported trust complaints diaries/time sheets, levels, people complaints listings reporting feeling able to influence decisions
  • 32. Benefits - Take difficult decisions Monetary value Measured by Non-monetary value Reduced conflict Legal costs, staff Number of negative and reduced spend work diaries/time articles in press, on legal challenges sheets, complaints survey results listings
  • 33. Stage 5 -Analyse results • Try out different methods of analysis, for example SROI, Cost benefit, Cost-effectiveness • Understand the limitations of the data • Test results with colleagues
  • 34. Example -Probability Environment Agency aimed to build ownership/trust in flood defence schemes: • Flood mitigation benefit= £35-40 million • Engagement= £2 million • To be cost effective in future probability of success must increase by 5.7% (£2 m/£35m). • Engagement needs to change the result from rejection to acceptance in 1 case in 20 to be worthwhile.
  • 35. Stage 6 -Present the business case • Select appropriate presentation format • Present the business case • Adapt to feedback
  • 36. Communicating the result • Use the business case to tell stories • Tailor your argument to fit your audience • Seeing is believing • Anecdotes can be powerful • Don’t forget the potential costs of non- engagement • Theory of Change
  • 37. Doncaster furniture recycling Benefits to council Benefits to clients • 488 tonnes of waste • 4000+ low-income diverted from landfill, households received saving approximately goods –estimated £20,000 in landfill tax supplying same families payments. with second-hand goods would have cost £140,000 with existing market prices.
  • 38. Exercise • In groups identify how you might value the costs and benefits of a particular engagement project using the tool. • Ideally a ‘live’ project; however, it could also be a ‘dummy’ project.
  • 39. Exercise 1. Define the focus and purpose 2. Decide what to measure 3. Complete the checklist and chart 4. Analyse the results and ‘test’ with other groups
  • 40. Tallying the results Picture CC: Some rights reserved By: mconnors
  • 41. Plenary • What did you discover? • Were there any unexpected results? • What will you do with these results?
  • 42. Links • http://www.involve.org.uk/wp- content/uploads/2011/07/Making-the-Case- for-Public-Engagement.pdf • http://www.involve.org.uk/wp- content/uploads/2011/07/Calculating-costs- and-benefits-with-comparator.xls
  • 43. Links 2 • http://healthandcare.dh.gov.uk/economic- case-for-ppi • http://www.demsoc.org/static/Financial-Case- white-paper.pdf • http://www.idea.gov.uk/idk/core/page.do?pa geId=17455595
  • 44. “It is better to be roughly right than precisely wrong” John Maynard Keynes
  • 45. The tail end involve Picture CC: Some rights reserved By: mconnors Royal London House 22-25 Finsbury Square London EC2A 1DX t: 0 20 7920 6470 e: edward@involve.org.uk twitter: ed_andersson