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Measuring Blended Value: Lessons and Tools for Evaluation from Blended Value and Impact Investing. Tessa Hebb, Carleton Centre for Community Innovation, Carleton University, April 28 th 2010. Presentation Overview. Blended Value Metrics and Measurement SROI Techniques - PowerPoint PPT Presentation
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MEASURING BLENDED VALUE: LESSONS AND TOOLS FOR EVALUATION FROM BLENDED VALUE AND IMPACT INVESTINGTessa Hebb, Carleton Centre for Community Innovation, Carleton University, April 28th 2010
Presentation Overview
Blended Value
Metrics and Measurement
SROI Techniques
Expanded Value Added Statements
Resources
What is Blended Value
“The Blended Value Proposition states is that all organizations, whether for-profit or not, create value that consists of economic, social and environmental value components—and that investors (whether market-rate, charitable or some mix of the two) simultaneously generate all three forms of value through providing capital to organizations.” Jed Emmerson
Metrics and Measurement
Blended value requires measurement of all
three forms of value economic, social and environmental.
“Measurement should be viewed as a process whereby the greatest value is achieved through organizations building up and learning from data and evidence over time (Measuring the Value of Corporate Philanthropy).”
Social Return on Investment
Social Return on Investment (SROI) identifies and describes the social value being created through an organisation’s activities (and the investment needed to deliver them). Uniquely, it seeks to place a financial value on this social value. Using a set of financial accounting principles and standard calculations, SROI analyses produce, as part of a wider report, an “index of social return” (Investing in Impact, UK)
Questions to be asked
1. What are the results for which we will hold ourselves accountable?
2. How will we achieve them?3. What will they really cost?4. How do we build the organization we
need to deliver these results?
What to Measure (Measuring the Value of
Corporate Philanthropy).
Links among the mission, programs, and measures must be clearly defined and articulated in order to narrow the number of required indicators.
The measures should be easily collectible and communicable.
The measures should be strategically designed and applicable across the organization at all levels, while also encouraging of operating units to focus on high-level strategies.
Above all, the measures must address progress toward the mission and illustrate whether and how the organization’s actions make a difference.
Social Return on Investment
Study of 8 methodologies found the similarity was the concept:
Expected Return = (Outcome or Benefit x Probability
of Success) Cost
A major difference among methodologies is whether benefits are monetized or not. (Tuan 2008)
Principles of SROI (Office of the Third Sector UK)
• Involve stakeholders.• Understand what changes.• Value the things that matter.• Only include what is material.• Do not over-claim.• Be transparent.• Verify the result.
6 Stages in Developing an SROI 1. Establishing scope and identifying
key stakeholders. 2. Mapping outcomes. 3. Evidencing outcomes and giving
them a value. 4. Establishing impact.5. Calculating the SROI. 6. Reporting, using and embedding.
Expanded Value Added Statement (EVAS) An integrated social accounting method,
EVAS employs carefully constructed assumptions to quantify, in dollar terms, the social value added that a non-profit or co-op produces. (Mook, Quarter and Richmond, 2007).
Calculating the value of volunteer hours contributed to the organization, or unpaid contributions to other organizations and stakeholders.
Gives clearer picture of the strength and added value of the organization.
On Line SROI Tools
Volunteer Value Calculator
EVAS Toolkit
The B Impact Rating System
New Economics Foundation (UK) Guide to SROI
On Line Resources
Impact Reporting and Investment Standards (GIIN)
Investing for Impact (Social Economy Scotland)
Measuring the Value of Corporate Philanthropy
SROI Primer (London Business School)
More On Line Resources
Investing for Social and Environmental Impact (Monitor Group)
REDF
Social Capital Partners
Carleton Centre for Community Innovation
Social Economy Centre OISE
Conclusion
Blended value requires economic, social and environmental values be measured.
SROI helps organizations understand their strengths.
SROI links mission, activities, outputs, outcomes and impacts.
No one size fits all.
Contact
Tessa Hebb
Director,
Carleton Centre for Community Innovation
www.carleton.ca/3ci
