Social Return on Investment

A New Tool to Describe the Power of Our Work

SESSION #1

Funding Provided by: City of Edmonton

In Kind Contributions: •City of Edmonton•Edmonton Social Planning Council•Social Enterprise Fund•United Way

Acknowledgement

History of SROI in Edmonton Training Players Evolution of SROI Edmonton Sources for Presentation

Housekeeping

Refreshments

Toilets Mobiles offHandouts, binders and on-line resources

Introductions

1. Name?2. Organization?3. Why are you here?4. What activity will your

SROI Analysis focus on?

Training Framework

Four Half Day Sessions Reading Materials and other

Resources Homework Assignments One on One and Small Group

Support Final presentation of SROI Analysis Follows guidelines for assurance by

the SROI Network

Training Schedule

Session 1 Session 2 Session 3 Session 4May 26 June 23 Sept. 22 Oct. 27

Guiding Principles

Social Value Creation

Stakeholders

Mapping outcomes

Selecting Indicators

Predictive vs. Evaluative SROI

Financial Proxies

Establishing Impact by Stakeholder

SROI calculations

Report Writing

Return in December to present completed SROI reports

Today’s Agenda

Introductions Orientation to the Training Background and theory of SROI Value Creation and the Theory of Change

Break Scope Stakeholders Group Exercise Resources Homework and One on One Follow Up Evaluation

Learning Objectives

1. Understand the process and principles of SROI and how to apply them

2. Identify the scope of your proposed SROI Analysis

3. Name the stakeholders who have a role to play in the value your organization creates

Where did SROI come from?

Cost-Benefit Analysis REDF (formerly the Roberts

Enterprise Development Fund) of San Francisco

Genuine Progress Indicators New Economics Foundation (nef)

2003

What is SROI?

It’s a method for calculating the impact of the work we do – the value we create

It’s an approach that includes qualitative and quantitative approaches to tell a fuller story

It is a tool to monetize the benefits – whether they be social, economic or environmental Cost Reallocation Increased Income Change in People’s Lives Decrease in carbon emissions

What is an SROI analysis?

Impact (the difference made) Positive Outcomes Negative Outcomes Deadweight & Displacement Attribution Drop-off (used for projecting the SROI

year to year)

Impact = (Positive Outcomes – Negative Outcomes) x Deadweight x Attribution

Why Do SROI?

Dis/Prove: Capture and report on the social, economic and/or environmental valued created by a program or policy.

Improve: Use the tool to manage the program for greater impact. It can be used as a tool for:• Strategic planning and improving• Communicating impact• Attracting investment or making investment

decisions• Managing activities

Misconceptions

1. SROI is always time consuming, expensive and impossible without external support

2. SROI is all about the money

3. Organisations or projects can be compared using the SROI ratio

The SROI guide

Forms, types and principles

• Value generated by an entire organisation or just a specific aspect/program

• Types: Evaluative or Forecast

• SROI is underpinned by principles

Key principles

1. Involve stakeholders

2. Understand what changes

3. Value the things that matter

4. Only include what is material

5. Do not over claim

6. Be transparent

7. Verify the result

The stages (see guide p. 96-98)

Carrying out an SROI analysis involves six stages:

1. Establishing scope & 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

Impact Map

Sample of Completed Map

Filling in the Impact Map

Scope

Scope (See guide p 18 -19)

Decide on the parameters of your SROI analysis

• Purpose• Audience• Background• Resources• Who will do it

• Activities• Period• Evaluation or

Forecast

Exercise: Scope• Is this a forecast or an

evaluation? (forecast recommended for training)

• Decide your activity to analyse (think small for training)

• Decide the time scale (1 year recommended for training)

Value Creation and Theory of Change

The story of how you seek to make a difference in the world – the wider benefits created for individuals, communities and societies.

This can be framed positively or negatively. “If we don’t provide housing, they will die on the streets” OR “If provided housing, homeless people can enjoy more healthy and productive lives”.

Exercise: Your Theory of Change

You believe that doing “x” will result in “y” - “x” is what you are doing, “y” is why you are doing it.

Describe your Theory of Change for the initiative you will use in the training Think: cause – effect Write: If ………. Then……..

Filling in the Impact Map

Stakeholders

•Aboriginal people•Children (< 12)•Ethnic groups, immigrants•Families•Geographic communities•Governments/tax payers•Men•Neighbours•Offenders

Stakeholder Analysis (See guide p. 20-21)

•People living in poverty •People with addictions•People with mental health issues •Persons with developmental disabilities•Public at large•Seniors (65+)•Women •Youth (12 +)

Stakeholders are the people or organisations that experience change as a result of your activity:

Exercise: Stakeholder Identification

Brainstorm a list of stakeholders:• Who benefits

(directly and indirectly)?

• Who invests? (various kinds of resources)

• Who has an interest in the outcome?

• Non-human beneficiaries?

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Refining Scope

Refining Scope (see guide pg. 22)

Record on your impact map the key stakeholders you will work with for this training exercise.

At a minimum, include an investor/funder and an end user.

Involve Stakeholders (see guide p. 24-26)

At this stage, you are analysing what you think will change (or did change) for stakeholders in order to decide if they should be included or not. This MUST be verified by the stakeholders themselves.

Consider how to involve stakeholders at every stage (this will have to happen outside our training sessions)

Homework Assignment

Review Checklist for Stage 1 (p. 99 of the SROI Guide) Determine the scope of your SROI

Analysis Confirm your Theory of Change Involve others to confirm the key

stakeholders for the SROI analysis Fill in Column 1, Stage 1 of the

Impact Map Read pages 1 – 24 of the SROI Guide Read Back on Track case study

Optional Reading/Resources

NEF SROI Guide Sustainable Returns Brochure Check out the Social Evaluator 0n-

line tool www.socialevaluator.eu

Evaluation

Please fill in honestly – your answers will be used to improve the training

Your answers will be compiled by City of Edmonton staff – anonymous from the trainers point of view