Valuation Gets Strategic; From Well-Being Economics to Organisational Strategy

Speakers:

 

Matt LeachChief Executive, HACT

Daniel FujiwaraResearcher at London School of Economics

 

 

Description:

 

Hear form Danile Fujiwara (LSE/Simetra) and Matt Leach (HACT) about how a radical new wellbeing-based approach to valuing social impact, developed for UK housing providers, has the potential to transform wider organisational approaches to social impact appraisal.  This can provide a new and robust framework for social investment decision making at a strategic level across public, private and not-for-profit sectors.

Blogs:

 

Daniel Fujiwara  Social Value Blog

Matt LeachSocial Value Goes Strategic?

PowerPoint Presentations:

 

 

Session summary:

 

1. Why are organisations not taking enough account of social value?

One sector-specific challenge for the housing market is the fact that the regulation of housing associations meant that they only had to prove themselves within that specific framework. The second challenge proposed was the current culture of housing; value databases are seen as useful for evaluative purposes, but are not necessarily associated with encouraging challenging questions for decision makers. Equally, housing is the biggest Civil Society Sector, but currently uses SROI very little.

 

 

2. What’s the solution?

A solution to this problem is to encourage use of available datasets, such as the wellbeing valuations in the HACT Social Bank, which is the biggest model of values derived by the same method.

 

3. What’s your organisation doing?

Trafford Housing Trust, a housing organisation near Manchester, UK, is obliged to produce evidence (with a value for money statement for a new regulator), what it is doing with money which is not spent directly on housing (i.e. community investment). It is using SROI as the framework for this report.

 Speaker Discussion Points:

Matt responded to some initial questions before the conference.  See below for his answers:

  1. Social value is continuing to rise up the agenda across public, private and civil society sectors.  The concept that business has to be about more than just profit, and that public policy investment should focus on maximising general wellbeing is becoming increasingly accepted.  And – in the UK at least – the economic recovery makes it harder to argue that the need to choose between economic and social values; it ought to be possible to deliver both.What has been missing to date is a coherent set of strategic level tools to embed social value and social return considerations in core business decisions.  Whilst conventional SROI has made massive progress in both visibility and practice, it can at times seem too expensive and cumbersome to be deployed at point of decision, particularly in complex organisations managing a wide portfolio of project with potential social impacts.  If we can fill that gap, we’ll see some big strides forward in the adoption of social value principles across the mainstream.
  2. What’s the solution? We need to be willing to look radically at approaches to modelling, measuring and evidencing social return in ways that make sense in larger scale corporate contexts.  At the moment, much social return practice has been developed in community focused organisations in the not-for-profit sector, seeking to evidence impact or make a case for continued funding.  Looking forward we need to think about the tools and approaches needed for social return to become mainstreamed across sectors and at all scales.  We need to be thinking not about the evaluating SROI of individual projects, but optimising the social value created by whole organisations.
  3. What is your organisation doing?HACT has been working with Daniel Fujiwara (of ground breaking new social impact consultancy SImetrica) to develop a new strategic-level approach to modelling and measuring social value appropriate to a more complex organisational context.  In developing our approach, we’ve looked to focus on three key elements:-           A single and coherent methodological approach to the generation of social value metrics

     

    –           A light-weight, but insight rich framework for modelling and comparing intended impacts

     

    –           The ability to accommodate and sit alongside more in depth SROI investigations where that is appropriate.

    We’re massively excited to be sharing it for the first time with an international audience at Social Value Matters.

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