Association for Project Management holds an annual Benefits Management Summit. 2016 I spoke about non-Financial benefits using the Social Return on Investment (SROI) framework). Enclosed are the powerpoint slides

1. Measuring and
reporting non-financial
benefits using the
Social Return on
Investment (SROI)
framework
Hugo Minney (RPP, FAPM)
Benefits Management
Summit, June 2016

2. Contents
50 minutes practical session to
cover:
What does success look like?
Measuring Success
Why are “soft” measures
important?
Putting a financial value on non-
financial measures
Return on Investment – in a new
light
 10 mins introduction and
explanation
 15 mins understanding
 15mins applying
 5 mins sum up

3. Basics of Benefits Management
A Benefit is a result that a stakeholder
perceives to be of value.
Benefits Management is the identification,
definition, planning, tracking and realisation of
business benefits

4. What does success look like?
 Financial Cash Releasing KPIs
– The ‘easy’ things to measure
– Traditional Return on Investment
 Financial long-term, and not-directly-
financial KPIs: issues arising
– How to show Logic Chain/ Chain of
Causality?
– How to assign a value?

5. Some examples KPIs
 Easily quantifiable
– Sales
– Costs
– Profit
 Less easily quantifiable but possibly more important
– Customer satisfaction – an indicator of future business
– Staff satisfaction – R&R and productivity
– IP portfolio
 Not-for-profit and possibly non-financial – the real future of the organisation
– Savings on other possible costs
– A value assigned to Quality of Life, or Happiness
– Future impact on the economy

6. Exercise – example measures
What would success look like for each of
these Programmes (based on FTSE100
Bakery/ high street eatery)?
ICT investment – a new CRM system
Fleet cars for management
Ventilation system for a bakery
Replacing bakeries in built up areas with a
single bakery out of town

7. The SROI six stage
process
Used for identifying your
stakeholders

8. Six stages of SROI
1. Establishing scope and identifying key
stakeholders
2. Mapping outcomes – relationship between inputs,
outputs and outcomes
3. Evidencing outcomes and giving them a value
4. Establishing impact (what would have happened
anyway?)
5. Calculating the SROI – and sensitivity analysis
6. Reporting, using and embedding

9. Change happens because people
make it happen
 Who stands to gain?
 Who stands to lose?
 What do they care about?
 What do they want to see change?
 How can you measure that?
 How can you minimise the effort of measurement?
 What can you report?

10. How much do parents love their
children?
 How much is a parent willing to pay to
have a child?
 How do we know?
 Is this a reasonable (conservative) cash
figure for how much love is worth?

11. Customer Satisfaction – what does it
mean?
 How much does a customer cost to acquire?
 How much is the lifetime worth of a customer?
 How many customers will you acquire with your new
capability?
 Will you change their lifetime worth, on average?
 How much difference do you think this will make, in
financial terms?
 What is the Return on Investment?

12. Staff satisfaction – what does it
mean?
 How long does the average member of staff
stay?
 What are the recruitment, onboarding and
induction costs?
 How much does sickness/ absence cost?
 How much difference will you make to each
of the above by your new programme?
 What is the Return on Investment?

13. Chain of Causality/ logic chain
 How much of the benefits we are measuring
can be attributed to the programme we’re
managing?
– What else is going on? (changes in the
environment, other projects)
– Is there a logical connection?
– What’s attributed to the sum total of
“everything else”?

14. SROI and Sensitivity Analysis
 RoI
– Total return / total cost
 Worst case
 Most likely case
 Best case

15. LM3 – Local Multiplier 3
 A simple example of how money makes money
 My company pays me £5000. I pay tax.
 I spend what remains on cars/ insurance/ buying food and stuff/
entertainment and eating out. Each business pays tax.
 They pay their employees. They pay tax
 Each employee spends what remains on cars … eating out.
Each business pays tax
 Does the money run out?
 If we’ve created £15000 from the £5000 that I spent (it touched
7 pairs of hands before it left the North East), where did it come
from?

16. Some things to be aware of
 Deadweight
 Attribution
 Causality
 Believability
 Standard approaches

17. Exercise – example measures
What would success look like for each of
these Programmes (based on FTSE100
Bakery/ high street eatery)?
ICT investment – a new CRM system
Fleet cars for management
Ventilation system for a bakery
Replacing bakeries in built up areas with a
single bakery out of town

18. Exercise Reminder
Six stages of SROI
1. Establishing scope and identifying key
stakeholders
2. Mapping outcomes – relationship between inputs,
outputs and outcomes
3. Evidencing outcomes and giving them a value
4. Establishing impact (what would have happened
anyway?)
5. Calculating the SROI – and sensitivity analysis
6. Reporting, using and embedding

19. Exercise CRM System
1. Stakeholders (5min)
2. Inputs, outputs and outcomes (Chain of Causality)
(3min)
3. Evidence and value (how will you measure?) (3min)
4. Impact (what would have happened anyway?) (2min)
5. Calculating the SROI – What is sensitivity analysis?
(2min)
6. Reporting, using and embedding

20. Some useful tools
 The ‘Guide to Social Return on
Investment’ (Cabinet Office)
 SROI Thought Leadership Guide
 HACT measures library

21. Hugo Minney
PhD, RPP
FAPM,
07786 961837
Hugo.Minney@TheSocialReturnCo.org