L QUADRAT SROI-Analyse: Wolfgang Laskowski & Rainer Loidl SROI – Social Return on Investment A model for displaying the social added value of supported

L QUADRATSROI-Analyse: Wolfgang Laskowski & Rainer Loidl

SROI – Social Return on Investment A model for displaying the social added value of supported employment?

September 25, 2014

Wolfgang Laskowski



SROI – variants since the 1980-ies

– Social measures and performance metrics (M. Moss, 1973)– Cost-effectiveness, a primer (Henry M. Levin, 1983)– REDF Roberts Enterprise Development Fund (Jed Emerson et al., ab 1997)– Community SROI (Betty J. Richmond et al., 1998)– SROI for public services (Philips, 1998)– ETP – Returns on Employment Training Programs (Dennis K. Benson, 1999)– SROI (Scholten/Franzen, 1999)– SROI (thesroinetwork, ab 1999)– nef SROI (new economy foundation, ab 2002)– Double bottom line ventures (Rockefeller Foundation, 2003)– Social Impact Assessment (GSVC, o.J.)– SIA toolkit (Social Inclusion, o.J.)


SROI-Meta-Analysis(CSI Heidelberg 2013)

Source: Krlev, Gorgi; Münscher, Robert; Mülbert, Katharina (2013): Social Return on Investment (SROI):State-of-the-Art and Perspectives. A Meta-Analysis of practice in Social Return on Investment (SROI) studies published 2002-2012. Internet: https://www.csi.uni-heidelberg.de/downloads/CSI_SROI_Meta_Analysis_2013.pdf [8.9.2014].

https://www.csi.uni-heidelberg.de/downloads/CSI_SROI_Meta_Analysis_2013.pdf



SROI – 6 studies byLaskowski & Loidl (a)

– BAN – counselling, work, new start

• SÖB Socio-economic enterprise: employment of long-term unemployed persons

• Styria, 2003 and 2009/2010– Chance B – “Janitor” project

• Organisational unit of Chance B, employment project for disabled persons

• Styria, 2005/2006– Wohnplattform Steiermark

• Help for the homeless; extra-mural, psychiatric-type services• Styria, 2008-2010


– Arge Chance

• SÖB• Lower Austria, 2009-2010

– Artegra Werkstätten gGmbH

• Sheltered workshop for disabled persons• Upper Austria, 2007-2010

– Verein ERfA – Erfahrung für Alle

• Social work, care, employment on hourly basis, training, case management, integration into labour market

• Styria, since April 2011

SROI – 6 studies byLaskowski & Loidl (b)


SROI AnalysisModel logics and work steps

SROI – Analyse


• Company evaluation• Future-oriented procedure

(Discounted Cash-Flow-Methode, WACC)• Micro-economic management (analysis level

company/organisation/project)• Costing• Investments set off against yields (corporate, individual)

returns• Socio-economic value creation: how efficiently

(profitable) does the company employ the capital?

SROI – Basis and starting point for the model


Is there any such thing as profitability in social work?

Financing body(„investments“)

NPOSocial non-profit

organisation

Benefits for stakeholder€

e.g. taxes, statutory social security contributions

e.g. cut in transfer benefits, risks, downstream costs

Effects onstakeholder

Effects on stakeholder

in €

Assess in €


SROI method - steps

• Define objective of analysis

• Identify stakeholder groups

1

• Develop effectiveness model

• Define contents

2• Reporting• Long-term

implementation and use

5


Definition of objectives and Stakeholder groups (1)

• What are the objectives? Why is the project carried out right now?

• Who shall get the results of the SROI analysis?• What are the tasks for which the SROI analysis is made?• What period shall be analysed?• Is the analysis ex-ante or ex-post?


• What stakeholder groups are included in the SROI analysis?• How are the claimant groups included?

Stakeholder

How does the care, placement etc. affect you?

What happens? (pos. and neg. effects)?

Are considered.? Y/N

How are they considered? (method) How many? When?

Objectives and Stakeholder groups (2)


Developing an effectiveness model (1)

• Identify and evaluate inputs• Identify and describe outputs• Identify „hard“ and „soft“ outcomes• Develop indicators to identify outcomes• Collect data• Assess duration of effects• Monetarise outcomes• Develop scenarios


Effective dimensionsAction field Supported Employment – Stakeholder: clients(Beyer/Robinson 2009, Schneider, 2003,)

Work, income

Residential situation

Mental health

Physical healthSocial network and relationships

Financial skills, indebtedness

Autonomy

Educational level, training

Quality of living

Employability

Mobility


Proving effectsOutput – outcome – impact of social services

context

Target group specifics

Inputs (resources)

structure

conditions

Concept (targets – activities)

plan

processactivities

outputLong term outcome

Inter-mediate outcome

Initial outcome

Long term impact

Inter-mediate impact

Initial impact

Deadweight, displacement, attribution, drop-off

implementation results

Source: Rauscher, O.; Schober, Ch.; Millner, R.(2012): Social Impact Measurement und Social Return on Investment (SROI)-Analyse. Wirkungsmessung neu? Working Paper. Wien. Internet: http://www.wu.ac.at/npo/competence/appliedresearch/leistungsportfolio/working_paper_social_impact_measurement_vs_sroi-analyse.pdf [8.9.2014].

(unintended) outcomes

Outputassessment Impact assessment

Pro

gra

m e

ffect

Evaluation ofprogram concept

Process assessment Efficacy analysis

http://www.wu.ac.at/npo/competence/appliedresearch/leistungsportfolio/working_paper_social_impact_measurement_vs_sroi-analyse.pdf


Assessing effects

• Monetarisation• Statistics of public institutions, market research, business

consulting etc.• Research results of universities, universities of applied sciences• Documentations by the free youth welfare organisations• Interviews, questionnaires, focus groups, workshops

– Willingness-to-pay– Similar goods (market prices), „proxy“– Travel costs/willingness to travel to obtain certain things– Average household expenses– VOIS data base (www.wikivois.org)

http://www.wikivois.org/


SROI calculationBlended Value Concept in 6 steps

Micro-economic investments/ costs

Micro-economic yields/ Returns

ROI Social investments/ costs

Social yields/ returns SROIEffects – indicators – proofs


SROI – Analysis at the ERfA GrazSROI – the model in realapplication


Tasks• Social intervention

– Employment on an hourly basis– Help in individual cases at the social intervention office

• Main domicile registration certificates• Social workshop• Non-profit employment project• Competence training and trial work• Trainings• Group and individual coaching• Transit employments• Supported return to the labour market• „Social guides“


How it works

• Market prices for services rendered• Abolition of transfer benefits (AL, “Mindestsicherung“) for

transit workers (TAK) (ca. € 550,00 per person and month)• VAT due to additional income for TAK and key workers (SK)

(consumption)• VAT from spending by the organisation in the region (material

purchases)• Income tax on key worker income• Statutory social expenses


Turnover and cost structure

2011P 2012P 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P - €

500,000 €

1,000,000 €

1,500,000 €

2,000,000 €

2,500,000 €

Costs for social work Personnel costs

Material costs, third-party work, other expenditures Depreciation

Proceeds from sales and other earnings Subsidies and grants

Jahr


Sensitivity analysis (1)

• Variant 1: Results not taking into account abolition of transfer benefits

• Variant 2: Results taking into account abolition of transfer benefits

• Variant 3: Results taking into account abolition of transfer benefits and services at „market prices“.

• Variation of interest rates


Calculation variant 1

2011P 2012P 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P - €

200,000 €

400,000 €

600,000 €

800,000 €

1,000,000 €

1,200,000 €

1,400,000 €

1,600,000 €

Costs for social work Communal tax VAT payable (15% of material costs) Income-related taxes

Consumption taxes Savings national transfer benefits Social expenditures

Jahr



2011P 2012P 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P - €

200,000 €

400,000 €

600,000 €

800,000 €

1,000,000 €

1,200,000 €

1,400,000 €

1,600,000 €

1,800,000 €

2,000,000 €

Costs for social work Communal tax VAT payable (15% of material costs) Income-related taxes

Consumption taxes Savings national transfer benefits Social expenditures

Jahr



2011P 2012P 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P - €

500,000 €

1,000,000 €

1,500,000 €

2,000,000 €

2,500,000 €

Costs for social work Communal tax VAT payable (15% of material costs)

Income-related taxes Consumption taxes Savings national transfer benefits

Social expenditures Additional value creation (market prices)


Sensitivity analysis (2)Bill. € Calculation variants




Interest rate (risc) 1 % 3 % 5 % 1 % 3 % 5 % 1 % 3 % 5 %

Economic value 3,3 3,3 3,3 3,3 3,3 3,3 3,3 3,3 3,3

Social value 88,3 29,8 18,2 113,1 38,2 23,4 135,7 45,8 29,1

Blended value 91,6 33,1 21,5 116,4 41,5 26,7 139,0 49,1 32,4

investment 9,1 9,4 9,7 9,1 9,4 9,7 9,1 9,4 9,7

SROI 10,02 3,50 2,20 12,74 4,39 2,74 15,23 5,20 3,33


SROI in practice – What are the benefits?

SROI – Bilanz


Social responsibility – effective and efficient investments

• Social inclusion: counter social deprivation through benefits

• Efficacy: organise benefits effectively and efficiently• Transparency: disclose use of public funds• Scientific demands: keep on developing models, data,

resources


What can happen with „tool“?

• Parties concerned “recognize” performance and value creation processes• Reflexive and socio-economically integrated action awareness increases

corporate performance• Parties concerned word their own targets and remain (become) owners

of the process• Interests become more transparent – investments and returns (in most

cases) materialize in different areas• Increased “self-consciousness” of social service organizations (evidence

of social value creation)• Possibility to communicate with stakeholders (analysis, results)• SROI is no guarantee of “success”


• Key-figure focused approach • Threat of creaming-off• Difficult to provide proof of the size of effect and

allocability of the effects• Overview, overall picture may be lost• Comparability – desired? possible?• Lacking recognition of SROI by public financiers

Critical approach


What can a “tool” do? – Aktiv testen


SROI Social services create social added value.

www.redf.org www.sroi.at


Social Return on Investment (SROI)

Mag. Wolfgang Laskowski

L.QUADRAT Institut für Sozialforschung,

Evaluation und UnternehmensberatungRösselmühlgasse 12/25, 8020 Graz

[email protected]

www.lquadrat.at

FH-Prof. Dr. Rainer Loidl

FH JOANNEUM University of Applied Sciences

Campus Eggenberger Allee 11, 8020 [email protected]

www.fh-joanneum.at

mailto:[email protected]

mailto:[email protected]


SROI – in Austria

– LQUADRAT/FH Joanneum (www.lquadrat.at/www.fh-joanneum.at/sam)

– Non-profit-Competence-Center (http://www.wu.ac.at/npo/competence/en)

– Others: Fachhochschule Linz; grey literature, a variety of mostly unpublished studies.

http://www.lquadrat.at/www.fh-joanneum.at/sam

http://www.lquadrat.at/www.fh-joanneum.at/sam

http://www.wu.ac.at/npo/competence/en

http://www.wu.ac.at/npo/competence/en


SROI – in Germany

– CSI Heidelberg (https://www.csi.uni-heidelberg.de/index.html)

– XIT (http://www.xit-online.de/)

– Kath. Universität Eichstätt-Ingolstadt (http://www.ku.de/swf/)

– iq consult (http://iq-consult.com/)

https://www.csi.uni-heidelberg.de/index.html

https://www.csi.uni-heidelberg.de/index.html

http://www.xit-online.de/

http://www.xit-online.de/

http://www.ku.de/swf/

http://www.ku.de/swf/

http://iq-consult.com/

http://iq-consult.com/


SROI – international

– The SROI Network (http://www.thesroinetwork.org/) (UK)

– Nef - New Economics Foundation (http://www.neweconomics.org/) (UK)

– SVT-Group (http://svtgroup.net/) (US)

– Scholten & Partners (http://www.peterscholten.com/) (NL)

– Socia e-valuator (Software) (www.socialevaluator.eu) (NL)

http://www.thesroinetwork.org/

http://www.thesroinetwork.org/

http://www.neweconomics.org/

http://www.neweconomics.org/

http://svtgroup.net/

http://svtgroup.net/

http://www.peterscholten.com/

http://www.peterscholten.com/

http://www.socialevaluator.eu/


• Arvidson, M., & Lyon, F. (2013): Social Impact Measurement and Non-profit Organisations: Compliance, Resistance, and Promotion. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, p. 1-18.

• Krlev, G.; Münscher, R.; Mülbert, K.(2013): Social Return on Investment (SROI): State-of-the-Art and Perspectives. A Meta-Analysis of practice in Social Return on Investment (SROI) studies published 2002-2012. Internet: https://www.csi.uni-heidelberg.de/downloads/CSI_SROI_Meta_Analysis_2013.pdf [8.9.2014].

• Kehl, K., Then, V., & Münscher, R. (2012): Social Return on Investment: Auf dem Weg zu einem integrativen Ansatz der Wirkungsforschung. In H. K. Anheier, A. Schröer & V. Then (Eds.), Soziale Investitionen: Interdisziplinäre Perspektiven (S. 313-331). Wiesbaden: VS Verlag.

• Rauscher, O.; Schober, Ch.; Millner, R.(2012): Social Impact Measurement und Social Return on Investment (SROI)-Analyse. Wirkungsmessung neu? Working Paper. Wien. Internet: http://www.wu.ac.at/npo/competence/appliedresearch/leistungsportfolio/working_paper_social_impact_measurement_vs_sroi-analyse.pdf [8.9.2014].

• Laskowski, W.; Loidl, R.(2011): SROI als Modell einer Wertschöpfungsbilanz in sozialwirtschaftlichen Unternehmen. In: Wirkungsorientierung und Wertschöpfung – Zukunftsthemen der Sozialwirtschaft. INAS-Fachtagung 2011, Linz.

SROI – Literature list (1)





SROI – Literature list (2)• Nicholls, J., Lawlor, E., Neitzert, E., & Goodspeed, T. (2009): A guide to Social Return on

Investment. London: Office of the Third Sector, The Cabinet Office.• Loidl, R.; Laskowski, W. (2008): Social Return on Investment (SROI) – Ein Vergleich von Modellen

zur Darstellung sozialer und ökonomischer Leistungen in sozialen Diensten. In: Steuerung und Kontrolle in Nonprofit-Organisationen. 8. Colloquium der NPO-Forscher im deutschsprachigen Raum. Johannes Kepler Universität Linz, 17.-18. April 2008. Eine Dokumentation. Herausgegeben von Reinbert Schauer, Bernd Helmig, Robert Purtschert und Dieter Witt. Schriftenreihe Public & Nonprofit Management. Herausgegeben von R. Schauer. Linz: Trauner Verlag Universität. p. 379-396.

• Loidl-Keil, R. (2008): Soziale Dienste sind keine „Non-profit-Organisationen“. Sozialökonomische Wertschöpfungsprozesse zwischen Werkzeugdenken und Komplexitätsbewahrung am Beispiel des SROI (Social Return on Investment). In: soziales_kapital wissenschaftliches journal österreichischer fachhochschul-studiengänge soziale arbeit, Nr. 1 (2008), 10 . http://www.soziales-kapital.at/index.php/sozialeskapital/article/view/58/62

• Laskowski, W.; Loidl-Keil, R. (2005): SROI – Social Return on Investment. Methodology. REDF Roberts Enterprise Development Fund. San Francisco: 2002. Übersetzung ins Deutsche

www.sroi.at

http://www.soziales-kapital.at/index.php/sozialeskapital/article/view/58/62


SROI – Literature list (3)

• Loidl-Keil, R.; Laskowski, W. (2004): Zahlung gegen Wertschöpfung. Eine erste Erfahrungsbilanz zum SROI – Social Return on Investment in Österreich. In: Kontraste, Presse- und Informationsdienst für Sozialpolitik. Nummer 9, November 2004. p. 25-27.

• Laskowski, W. ; Loidl-Keil, R. (2004): SROI – Social Return on Investment in einem Sozialen Integrationsunternehmen. Unveröffentlichter Projektbericht. 2004.

• Loidl-Keil, R. ; Laskowski, W. (2003): SROI – Ein Konzept zur sozio-ökonomischen Bewertung sozialer Unternehmen. In: Kontraste, Presse- und Informationsdienst für Sozialpolitik. Nummer 7, September 2003.

• Olsen, S., & Lingane, A. (2003): Social return on investment: Standard guidelines Working Paper Series: Center for Responsible. Business, UC Berkeley.

• Emerson, J., Wachowicz, J., & Chun, S. (2000): Social return on investment: Exploring aspects of value creation in the nonprofit sector. The Box Set: Social Purpose Enterprises and Venture Philanthropy in the New Millennium, 2, S. 130-173.

• REDF. (1996). SROI Methodology. San Francisco: Roberts Enterprise Development Fund.

www.sroi.at


Literatur „supported employment“

• Beyer, S.; Robinson C. (2009): A Review of the Research Literature on Supported Employment. A report for the cross-Government learning disability employment strategy team. Internet: http://www.researchonline.org.uk/sds/search/download.do%3Bjsessionid=9CDC74BFF86CE150803D04C9331AB05F?ref=B12586 [8.9.2014].

• Schneider, J. (2003): Is Supported employment cost effective? A review. In: International Journal of Psychosocial Rehabilitation. 7, S. 145-156.

www.sroi.at

http://www.researchonline.org.uk/sds/search/download.do;jsessionid=9CDC74BFF86CE150803D04C9331AB05F?ref=B12586

http://www.researchonline.org.uk/sds/search/download.do;jsessionid=9CDC74BFF86CE150803D04C9331AB05F?ref=B12586

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L QUADRAT SROI-Analyse: Wolfgang Laskowski & Rainer Loidl SROI – Social Return on Investment A model for displaying the social added value of supported