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Social Return on Investment (SROI) po Calgary – Sustainability for Breakfast Network. Stephanie Robertson S i MPACT Strategy Group January 28, 2011. Introductions. Achieving the Highest Standard in Community Investment. Other Specialties : - PowerPoint PPT Presentation
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Social Return on Investment (SROI) po
Calgary – Sustainability for Breakfast Network
Stephanie RobertsonSiMPACT Strategy Group January 28, 2011
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Introductions
Other Specialties:
Performance measurement & evaluation of CI portfolios;
Social Return on Investment (SROI);
Management systems to support CI and enhance CSR commitments;
Capacity & skill development.
CI Portfolio Performance Measurement via Benchmarking
Performance Measurement of Priority Projects
Leadership in Reporting & Communications
Network of Professionals
Achieving the Highest Standard in
Community Investment.
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A Growing Community
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History of SROI
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www.redf.org www.thesroinetwork.org
1993 2010
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What is the purpose of an SROI?
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• To assign a commonly understood value (financial proxy) to outcomes that are at-risk of being misunderstood, under-valued or overlooked altogether.
• To forecast the potential value of a policy, organization or project, in order ensure that maximum value is achieved.
• To evaluate whether maximum value has been achieved, and if not, why not.
• To achieve ‘best value’ through procurement.
• To enhance communications.
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Steps to an SROI
1. Describe situation without your policy, organization or project
2. Summarize the theory of change
3. List and describe changes aspired for targeted stakeholders and their stakeholders, including investors
4. Estimate the cost of the current situation, across applicable timeframes
5. Calculate SROI
6. Tell your value story, reporting on all sources of value
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Social Value is created in many different ways
• Community cohesion• Confidence that leads to a new, positive action• Skills that lead to a new job, better job, paying taxes, etc…• Quality of life improvements• Increased assessment of life satisfactions (happiness,
friendships, feelings of being supported, sense of security)• Environmental improvements …• Other, many more examples …
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1. Cost reallocation
2. Changes in taxes paid
3. Cost savings - reducing scope of problem or cost of service delivery
4. Future cost avoidance
5. Increased individual or household income
6. Value of improved quality of life
How to 'monetize' Social Value
Direct (the target stakeholder)
or
Indirect (stakeholders who change as a result of the target stakeholder’s changes)
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Immediate Annual Multi-year• Responding to
crisis• Situation could
reoccur even immediately
• Investments changes circumstances but change can’t be guaranteed beyond fiscal year
• Investments that change circumstances for a period of time, if not a lifetime….
• Distress Centre
• In-school Mentoring
• Acquiring a skill that leads to a new, long term job
• Enabling a spouse to eliminate violence in his/her family…
Change across Timeframes
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Distress Centre – inputs to impacts
Inputs Outputs Outcomes Impacts
$875,000 89,903 crisis calls received total number
26,971 calls from frequent callers with complex needs 8,091 crisis
calls de-escalated and referred
8,091 callers in extreme distress
Difficult to be certain
Difficult to be certain
Sure that volunteers made a difference
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Distress Centre’s SROI Calculation
Impact 8,091 clients
Yr 1 only notes
Police calls avoided $ 2,766,620$342 per police call
avoided
EMS call-outs avoided $ 276,678$342 per call,
accompany police 10% of time, 809 avoided
Emergency room visits avoided
$943,510$231 per visit, 50% of
all calls result in ER admittance
Hospital admissions avoided
$46,710$1038/day, 45-day
average
2007 call outs $ (-411, 480) 207 calls not de-
escalated
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Distress Centre’s SROI Calculation
Social Value Created / Annual Investment = SROI : 1
SROI Calculation Yr 1 Only
Social value created $4,501,732
Annual investment $875,000
SROI Ratio 4.14 : 1
Current Environment
• Reduced Funding Opportunities• Donor potential eroding……..• New definition of services placed on a
Community Impact FrameworkCommunity Impact is the mobilization of
collective action to create measurable, cumulative lasting change that improves lives and builds resilient communities.
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SROI is … a Story Not a Number
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www.calgary.ca/sroi
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Calgary Case Studies
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SROI Canada Network
• Advancing knowledge of tools to express social value creation, across all sectors.
• Establishing a national authority for the advancement of the SROI methodology in Canada, including:– SROI training, including preparation for practitioner accreditation– SROI practitioner accreditation– Canadian standards of SROI practice– A financial proxy data base of national, provincial and local
financial proxies– Third party assurance of the quality of SROI reports‐
• Representing SROI Canada within SROI International.‐
• www.sroi-canda.ca • Linkedin.com/sroi canada
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Challenges• New & emerging methodology• Not enough experienced practitioners• Risk of over-claiming significant!!!!!!!!• Tendency to focus on the ratio, rather than
the whole story (which misses the point completely!)
• Need a common understanding / standard of practice
• Dismissed as cost/benefit analysis • Other• Other• Other
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Contact Details
Stephanie RobertsonPresident, SiMPACT Strategy [email protected]
www.lbg-canada.cawww.simpactstrategies.com
SROI LEARNINGS
Why we went this route
• Rationale for outcomes was driven ,at first, by the sectarian name and concern that the community would develop misconceptions about the agency. ( Service vs. Proselytizing)
• Board directive to have in place demonstrable outcomes in two years . (1997)
Outcomes require work & maintenance
• No existing budget for infrastructure & a very dysfunctional relationship with data!• Develop & commit to an IT strategy • Find $150,000 to resource it. (.4%)• Engage a research consultant ( someone who
knows what they are doing).• Support a culture where the primary purpose for
outcomes is to improve service and try new and innovative approaches
• Positive results for clients and staff morale• Keep the investors happy
Barriers
• Fear of change….. New Murphy’s law might read“ agents of change will always balk at
change affecting themselves”
• Resistance“We know what we are doing so don’t interfere”“We know our clients best”
“So we are going to dumb it down to money”
We have a divine right to your money because our cause is noble and oh yes no questions asked other than “did you spend the money honestly?”
What if it’s not working ?
Current Environment
• Reduced Funding Opportunities• Donor potential eroding……..• New definition of services placed on a
Community Impact FrameworkCommunity Impact is the mobilization of
collective action to create measurable, cumulative lasting change that improves lives and builds resilient communities.
Post Recession Donor Wariness
• One hypothesis is that donors will continue to contribute but want the stewardship of their dollar to be more secure and more effective.
What impact over the long term will my dollar create?
• No different than our own expectation of RRSP portfolios
The big external question that is not going away
SO WHAT?…..Why Should I give you my hard earned money?
Shared Definition of Impact
• There is a more shared understanding that is evolving
• There are at least three player groups• Corporate, Foundations & individual
donors• Public sector .. United Way, Government• Non Profit- that’s us (although I believe we
have to change the name)
Corporate & Donor Groups
Driven by CSR, sustainability and Governance agendas
Public Sector
Driven to demonstrate effectiveness in operating & investing in the public interest
All are seeking to provide evidence
of value created against investment
Socially driven-Public Good organizations
Driven to demonstrate the value of their work
Cross Sector Interest
Service Outcomes
• Demonstrable Outcomes are Essential
• Don’t confuse them with “widgets”
• Can you communicate them in a language that is not “professional code” ?
What did we learn…..so far?
Not everything that can be counted counts, and not everything that counts can be counted.
~ Albert Einstein
• Scope and complexity of our work
• Importance of a succinct “theory of change”
• Clearer more focused relationships with partners
• We do create value that is beyond warm fuzziness!
Depression Program Social Return on
Investment Robbie Babins-Wagner, MSW, PhD (C) RSW
8.2% of Canadians suffer from depression at any point in timeo Estimate: 85,517 Calgarians
With a workforce of 759,000 people in Calgary: o Estimate 62,200 workers in this city.
Our clientso Between 3 – 83, most between 18-50o 58% femaleo 42% male o Range from the working poor to
unemployed to corporate executiveso Single, married, teens and parents
Theory of Change Individuals struggling with the effects of
depression, who receive counselling at CCC in a timely manner, generally demonstrate positive changes.
They become more hopeful, more productive, better able to function at home, work or school.
Social Value Added Depression reduces the ability to focus on day to day
activities in all settings
The CCC depression program helps participants develop the ability to manage their depression and function in their daily lives
This results in people being able to function as effective and contributing members of society which benefits the community as a whole
People with depression receiving counselling at CCC: o Lessen reliance on public services (such as
crisis services), family doctor, emergency rooms, social services, and other potential costly services
An important benefit of counselling is decreased absenteeism and increased at work productivity.
Indicators
Lost productivity: 16-36 days per year
Medication costs Family Doctor cost Walk-in clinic cost
One year SROI $1.86 to $1Three year SROI $7.85 to $1
“I had always dreamed of starting my own business, but I did not know where to begin—then I found Momentum.”
- ABCs of Small Business
Sustainability Value We are committed to helping our
participants achieve sustainable livelihoods through the development of personal, social and financial assets. As an organization, we gauge our sustainable success holistically from the perspectives of fiscal, environmental and social impact.