4b - impact of impact - jim clifford
DESCRIPTION
Speaker at CFG's Annual Conference 2012TRANSCRIPT
• Jim Clifford is Head of Non-Profit Advisory Services at leading Third sector advisors and auditors, Baker Tilly.
• Jim has authored a range of high-profile Social Impact studies, and been instrumental in developing methodologies to make them more accessible
• He is a Visiting Fellow at Cass Business School where he is undertaking research into evaluative protocols for transactional decision making (linking Social Impact with conventional valuation and brand valuation).
• He is a director of the Centre for Public Scrutiny, an independent charity which supports scrutineers and the development of approaches to scrutiny in public sector and other bodies .
• The views expressed in this paper are the author’s own, and do not imply any corporate position by Baker Tilly, Cass Business School or its academic staff, or of CfPS.
www.cass.city.ac.uk
www.cfps.org.uk
Impact of Impact...
•Why is understanding impact important and for whom?
•Use of impact as an influencing tool:
• Internally
• Externally
•Using Impact to manage funding for PBR (New Social Finance and SIBs)
Outcomes measurement......
• SROI is increasingly being recognised
• Government moves towards project-based, or outcomes-linked payment• “Outcomes-based Government” report from
CSJ
• Increasing recognition of • the need for clear measurement and
• the acceptance of this approach
Measuring outcomes
Importance of financial measures:• to funders in Government• for prioritisation decisions• for delivery measures in contracts• to philanthropists• in competing for capital• ..and in public scrutiny
Typology of measurement protocols• Cost-based (e.g. Green book)
• Limited outcomes (e.g LM3/Global Reporting Initiative)
• Full(er) outcomes (e.g. SROI/GRI)
• Performance/QA evaluations (e.g. PQASSO/ SE Balanced scorecard)
• Feedback systems (not generally branded)
..what about SROI lite and similar ?
Developing your own understanding...
Inputs to Activities to Outputs to Outcomes to Impacts
Primary Secondary
• What change/outcomes does your work achieve (short / long term)?• Understanding how that change is achieved• And for whom (direct and indirect beneficiaries)?
.... who benefits and how?
SROI (or others) as an influencing tool...
Influence on funders Alliance of SSCs and BISAlana House and MoJ
Influence in restructuring the landscape
SSCs and the change in the White Paper in 2009Foundation of feedback through UKCES on SfH and SfC for DoH consultation paper “Liberating the NHS: Developing the Healthcare Workforce”; PACT Domestic Adoption
Influence on project partners Various, inc SSCs, NLL, PRTC
Influence on LA funders Witney, NLL and various others
Use as agents for change in policy influence networks
Adoption network around PACT’s SROI and BBC2 “A Home for Maisie” – see http://www.baaf.org.uk/node/3356
External view:• Deepening other organisations’ understanding of your work• Highlighting the value to defend against cuts or unlock new funding
SROI as an influencing tool...
Influence on project managers seeking to increase impact
Most of the studies done, for example Witney Children’s Centre
Influencing prioritisation decisions Various, inc SSCs
Influence the development of new services
PACT (CVAA)
Internal view:• Deeper understanding of how change is achieved• Developing relevant performance measures to monitor
impact• How can we do the same (or more) for less?• Understanding which projects achieve the most to support
prioritisation of scarce resource• Identify new opportunities
Social Finance models: the SIB
• Issuer defines terms• Multi-party funding;
same terms• Application for specified
social purposes (Impact)
• Investor reward balance
From a 3-D Typology of SIB-style funding....
Bridging to PBR
Capital
Special donors
With profitsNo
interest
ListedPermanent capital
Regular or deferred
Variable interestFixed
interest
Equity risk
Repayable (regular or bullet)
Payment by Results – linking funding to Impact
• Why PBR ?
• Economic trade
• Meaningful measures
• Measuring what matters: “Informed” Outputs
Inputs to Activities to Outputs to Outcomes to Impacts
Funder markets
Match the project to the funder market:
• Public funds
• Third Sector
• Corporates
• Individuals
• Family offices
THINK......• Project • Provider• Purpose•
Presentation
Why now?• Impact measures are increasingly expected…
• Are a valuable strategic tool…
• And are intrinsically linked to Social Finance structures
…Be part of developing the agenda now or wait until someone else imposes theirs on you…
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For more information contact:
Jim CliffordHead of Not for Profit Advisory ServicesBaker Tilly
Email: [email protected]: 07860 386081Direct dial: 01923 657805