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Similar a Daniel Carter Inspira social value event
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Daniel Carter Inspira social value event
- 2. Varied programmes and services that help people to develop their potential and progress in life and work, delivered on behalf of a range of local, national, public and private customers. Sellafield Ltd District Councils Empowering Families Department for Work & Pensions National Careers Service Wheels 2 Work National Citizen Service Arts Council Digital Arts Ready for Work Skills Funding Agency Cumbria County Council Youth Contract Children in Need New Beginnings Department for Education Schools and Colleges Targeted IAG & Tracking Cheshire East Council Youth Work & Risk Taking Behaviour Career Advice for Young People
- 3. Measuring Social Return on Investment in our Services • How much does each X cost to deliver? • How much would it cost if an X wasn’t delivered? • Who meets the cost of failure to deliver an X? • Where do you stop? • Who pays versus who benefits? • How do you calculate ‘soft’ outcomes in £s?
- 4. Example: the cost of NEET 16-18 University of York 2013, on behalf of NAO: • At least £12 billion public finance cost • At least £22 billion ‘resource cost’ • 209,196 NEET at time of research • Therefore c.£163,000 cost per person
- 5. Example: the cost of preventing NEET 16-18 • CCC IAG contract = c.£420 per person • Plus match from other sources… • Inspira spends up to c. £1,000 per person preventing NEET • A potential SRoI of £163 for every £1 spent?
- 6. Other Ways to Measure the Social Value of the Enterprise • Generating (and retaining) economic activity in the community • Providing development opportunities e.g. Graduates, Apprentices • Environmental responsibility • Levering additional resources
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- Thanks for the invitation to speak.I’ll say right away that I’ve deliberately opted for a bit of a cautious title here – The very last thing I wanted to do was stand up here and try to pull the wool over anyone’s eyes by pretending that we’re some sort of exemplar with some kind of outstanding achievements to boast of in this field. The exact opposite is true. We’re like very many social enterprises – ATTEMPTING to get to grips with the question of measuring social value. There will be many organisations, I’m sure, who already have a better mastery of this than us and so... I’m happy to stand here from the perspective of an established social enterprise that’s really taking its first steps in grappling with this and describe how we think about it, how we’re beginning to approach it, perhaps some of the challenges and opportunities it presents us with.We’re attempting to work on two approaches to measuring our social value: firstly, the SRoI of our services, secondly the value added by operating our social enterprise itself.First of all, to put things in context...
- Inspira is a social enterprise – a company limited by Guarantee – with its roots in Cumbria but also operating elsewhere in the north west and beyond, and we deliver lots of different things, on behalf of lots of different customers, all of which are about supporting and helping people to progress – with their personal development and with their career opportunities.Here’s some of our current contracts, and some of our current funders:Some, like Our Digital Arts project and our Information, Advice and Guidance contract focus on young peopleOthers, like National Careers Service and Ready for Work that involve supporting adultsSome, like Wheels 2 Work are fairly small scaleOthers, like our contracts with the county council or Cabinet Office are relatively large scaleIn some, like New Beginnings or Youth Contract, we’re a sub-contracted partnerWhile in others, like National Citizen Service, we’re a prime contractor with our own supply chain.So, as you can see, there’s a great variety of services and commissioners involved – which means that, when it comes to measuring our social value, it’s difficult to arrive at a single handy metric, statistic or formula that captures or is relevant to everything we do. Each of our contracts naturally has its distinct client group, specification, specific sets of intended outcomes and reporting processes. That means that we’re measuring the impact of what we do in a number of different ways. That starts with counting what each contract produces e.g. (number of moped loan packages, number of youth sessions, number of residential programmes or % of a cohort participating in learning). But when it comes to measuring social value we’re really talking about moving beyond the outcome measures of each contract to think about how exactly that impacts on wider society andHow can we might be able to quantify it – to express it in £ signs
- What that means, or so we’ve found it to mean, is often a case of trying to put cost figures against and create an equation that looks something like this:‘unit outcomes’ – how much does it cost or how much do we spend producing whatever outcomes we produce? usually relatively straightforwardCompared to the cost of whatever would happen if we didn’t do thisThe difference between the two gives you social value expressed in pounds and pence – cost savingsEven better if you can identify who saves because that can have massive relevance to potential commissionersSo that might sound fairly simple but we’ve found some really thorny difficulties with it:Let’s say we have a project that aims to prevent unwanted teenage pregnancy by providing awareness-raising interventions, contraceptive advice etc. etc.We can work out how much we spend on working towards that outcome – to prevent unwanted pregnancies BUTWhen you come to calculate the potential costs of failing to do that...it’s not so much where do you start as where do you stop? You could be talking about impact on health services, on the economic prospects of parents, on welfare spend – but then do you also need to calculate the potential costs involved in the life of the child? How can you? Ultimately how credible is it?There’s also the problem of who pays versus who benefits, because for social enterprises tackling deep-rooted and complex social issues, the outcomes are sometimes long-term and therefore more difficult to measure, and the cost savings may benefit parties other than the original commissioner. For example, work done to improve engagement in school can lead to higher educational standards which can produce benefits for the DWP, employers, universities and colleges. But they don’t tend to commission that sort of work by and large.Another, altogether more difficult question, and one that’s dogged us for centuries, I think is how you begin to quantify so called ‘soft’ outcomes. Work done to reduce anti-social behaviour might help to reduce costs of policing, but how do you begin to measure benefits to quality of life and community cohesion? Lots of talk at the moment about teaching character and building resilience – what is the value in terms of £s there, and how would you begin to quantify it? We’re increasingly seeing the use of established outcomes frameworks like the young foundation model as a means to evidencing distance travelled, but putting a monetary value on it isn’t easy.To give an example of the kind of thing we’re trying to do...
- One of our County Council contracts is really about preventing at-risk young people from becoming NEET during their teenage years.Now we have a means of calculating how much it costs when a young person disengages from learning or work between ages 16 and 18. A University of York research team has been commissioned 3 times by the National Audit Office to work this out. Theses are the most recent updates figures from XXXXX.They gave a minimum and a maximum calculation of the cost for all 16-18 NEET at the time of the data, so to err on the side of caution I’ve quoted their minimum figures which are:£12 billion public finance cost i.e.£22 billion ‘resource costs’ i.e.So £34 billion in total and that was for 209,196 16-18 year olds, which my admittedly shaky maths makes in the region of £163 thousand per person (minimum).I personally don’t know how certain these figures are but they’re from a very reputable source, commissioned by the NAO, so I believe they’re the most accurate and definitive thing you’ll find.Now if you compare that to how much it costs to prevent a young person becoming NEET...
- Our contract with the county council involves working with approximately 4,500 young people who are either NEET or at risk of becoming NEET and contains some figures that attempt to identify a per person average spend. Of course, it’s a rough calculation, it doesn’t get spent that way in reality but the contract suggests in the region of £420 per person.Now, that’s not the only resource we use. We supplement that with resource from aligning other, complementary contracts e.g. Youth Contract (DWP), National Citizen Service (Cabinet Office), New Beginnings (Lottery via Brathay) and others. Ultimately these give us more ways to engage them for more time. We think that in this way we tend to double the overall spend at least.So that means a total average spend of somewhere between £800 – 1,000 per person with whom we work to prevent them becoming NEET or move them out of the NEET group.Compared to the NAO figure of £163K per person NEET, that’s a potential return of £163 per £1spent.Now, you’ll notice the question mark here. As I’ve emphasised, we’re just finding our way with this and we’re offering it in that spirit. We know the reality is slightly more complicated, because of course we aren’t successful in 100% of cases. But we are in many, and the fact remains that what we spend per persom trying to prevent NEET compared to the cost of NEET represents a seriously good return. Especially since 50pence in each pound spent is drawn from other sources. That’s not an advertising pitch to our county colleagues, honestly. I think it’s a really important point for us all when we look at social value – now more than at any other time, we need to show how social enterprises supplement the shrinking purse of the Local Authority by levering in additional resources.So this is the kind of calculation that we’re attempting to make for all of our contracts. Some are easier than others.
- I said earlier that we’re trying to measure social value not just in terms of return on investment in our services – we’re also looking at how we can evidence added value to Cumbrian society by the way we operate. The kind of things I mean includeThe fact that, by winning contracts and creating business, we employ around 140 people, and we have associate staff, and with one or two Lancastrian or scottish exceptions, they tend to live and spend their salaries in Cumbrian communities. And as a not-for-profit organisation we can say that all the money generated stays in the local economy. That’s important when some of our competitors are profit-based companies based outside the county, or even the UK in some cases – so where would the value be going under them? It’s not just about the number of employees but the kind of opportunities you contribute and create. We currently employ a group of young role models to act as ambassadors for NCS, and we offer summer work opportunities to students, offering good pay and good experiences. This year we took on 8 full time permanent graduate trainees - recent Cumbrian Graduates who, though I must say they’re all great and eminently employable, may have struggled to find graduate positions in the County otherwise. Likewise, Apprentices, likewise all workforce development that social enterprises undertake– helps to build capacity and add value to the local economy.
- Thanks for the invitation to speak.I’ll say right away that I’ve deliberately opted for a bit of a cautious title here – The very last thing I wanted to do was stand up here and try to pull the wool over anyone’s eyes by pretending that we’re some sort of exemplar with some kind of outstanding achievements to boast of in this field. The exact opposite is true. We’re like very many social enterprises – ATTEMPTING to get to grips with the question of measuring social value. There will be many organisations, I’m sure, who already have a better mastery of this than us and so... I’m happy to stand here from the perspective of an established social enterprise that’s really taking its first steps in grappling with this and describe how we think about it, how we’re beginning to approach it, perhaps some of the challenges and opportunities it presents us with.We’re attempting to work on two approaches to measuring our social value: firstly, the SRoI of our services, secondly the value added by operating our social enterprise itself.First of all, to put things in context...