Case Study 1 - Social Value
HCT Delivering Social Value– Dai Powell, Chief Executive
Procuring for Social Value in Knowsley- Ian Bancroft, Head of Social Growth
Procuring Social Value- To Encourage Social Innovation
and Social Growth
An Emerging Approach in Knowsley
Ian Bancroft, Head of Social Growth, KMBC
Creating the Conditions for Social Innovation leads to Social Growth
• Procuring for Social Value• Social Enterprise Support• Social Finance : Knowsley Foundation• Public Service Mutuals : Knowsley Youth Mutual• Community Led Solutions to Independent Travel• Asset Transfers : Newstead School• One Approach to Volunteering• Social Sector Collaboration : Forward Together
Social Value = Social Growth in Knowsley
• Public Services (Social Value) Act 2012
• Defining Social Value Locally
• Knowsley Definition“Outcomes, measures and activity that will create strong and well connected public, private and social sectors that enable communities to be more resilient”
Social Value Outcomes & MeasuresOutcomes (6 in total) Examples of Measures (29)
1. Increase in Community Resilience
- Provision of working age population in work
2. Reduction in Demand for Public Service
- No. of people supported to live independently
3. Impact of Volunteers - No. of new volunteers
4. Impact of Community Businesses (CBs)
- No. of CBs with social purpose linked to communities
5. Private Sector Investment in Communities
- Level of investment in Knowsley as part of CSR.
6. Residents Making Socially Responsible Decisions
- Increase in recycling rates for household waste
Domiciliary Care Example
• Current contract specification is a series of input based tasks, e.g.:– cook evening meal– assist with dressing
• Note the contractor has no requirement or incentive to deliver innovation in service delivery and improve its effectiveness.
Domiciliary Care Example
• The next contract specification will have in addition to the tasks to be undertaken:– core social value outcomes– added and appropriate social value outcomes
The following will potentially form part of the specification:– reduction in hospital admissions– reablement of clients to have reduced or no
service needs– removing sense of isolation by encouraging
and supporting service users to participate fully in the community, to access community activities and services and that their contribution is valued equally with other people
Core Social Value Outcomes
Added Social Value OutcomesThe following will potentially form part of the tender:– employment & training opportunities including
for those with a disability– contractor’s supply chain supporting smaller
community business and groups– investment as part of contractor’s corporate
social responsibility– evidence of delivering social value previously
Evaluating Social Value
In evaluating the tenders, this is how the scoring of the bid might work:
% scoreCost (inc. core sv) 40
Service provision & outcomes (inc. core sv)
50
Added social value 10
100
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/200
10,000
20,000
30,000
40,000
50,000
60,000
Spending as share of available resources
All other Services
Environment / Waste
Adult Social Care
Childrens' Social Care
£bn
Conclusions and Context
Innovative public procurement for social entrepreneurs - Delivering social value
Dai Powell, OBE Chief Executive, HCT Group
About HCT Group
■ From a community transport charity founded in 1982■ To a social enterprise with a turnover of €50m
(2012/13)■ 98% of revenue comes from contracts■ Competing against the large multinational operators■ Profits reinvested in the communities where they are
earned■ A focus on community-led service design
Welcome to our world…
■ Local Authority A – SEN transport contract – at tender, we offer 10 new jobs for hard to reach
unemployed – no extra cost (unscored) – 6 months after start, offered an EU grant for the jobs…
…the LA can’t count it as an outcome otherwise
■ Local Authority B – day centre transport– taking older people from home to day centre and back– on route, a supermarket and sheltered accom.– we offer to connect the two during dead time– no extra cost – declined on the grounds it would ‘raise expectations’
The world we want
■ These cases are not uncommon■ Real available gains from SE innovation ■ LAs face barriers to realising these gains
– silos– input/output contracts– culture and imagination
■ SEs and Authorities share the same values ■ This makes real partnerships possible
– true open-book contracting – co-creation of services– community-led service design– shared incentives to innovate
Step 1: Embracing Social value
■ SE is a model that can create real value■ Social Value Act means it must be considered■ Simple compliance is a missed opportunity ■ Knowlsey’s approach to social value:
– goes far beyond compliance – social value as a strategic opportunity– leads to a practical set of options for commissioning
Step 2: unlocking ‘whole place’ approaches
■ Social Value as a step to unlock practical commissioning for ‘whole-place’ policies
■ Captures the connection between commissioning transport and:– addressing local unemployment– wellbeing and inclusion – education, health…
■ Provides the opportunity to also think about transport in a ‘whole-place’ context
Transport strategy today…
■ Too often, Authority engagement in transport is to remedy market failure
Payment for non-viable routes
Subsidy for vol sector remedies
Payments for social provision
Cost for externalities of poor transport
Subsidy for low margin routes
Market provision
€€
€
€
€
€
Shareholder value
Whole place delivery
■ Commissioning with a whole place approach locks in resources for public benefit
Market-driven (fare-box)
SE‘whole-place’
delivery
Contract services
Profit share
Local AuthorityCommissioning
Low-margin routes
Step 3: The ‘Social Citizen’
■ Social value commissioning enables place-wide externalities
■ Commissioning at ‘place’ level enables cost-saving■ But… ■ Place-level initiatives have failed in the past■ A sense of place cannot be imposed from above■ Must be mediated by the public – the ‘Social Citizen’
– user-led service design, based on outcomes– purposeful, binding consultation– volunteering/active citizenship– community ownership?– community investment?
Delivery mediated through active engagement
The social citizen
€Place-based
Fare-box Commissioning Low margin
Non-commercial routes
Public infrastructure
Novel community solutions
Community buses
Community connections
(Buurt)
Group transport