Impact of Impact

Jim Cliffordemail: jim.clifford@bakertilly.co.uk mobile: 07860 386081

• Jim Clifford is Head of Non-Profit Advisory Services at leading Third sector advisors and auditors, Baker Tilly.

• Jim has authored a range of high-profile Social Impact studies, and been instrumental in developing methodologies to make them more accessible

• He is a Visiting Fellow at Cass Business School where he is undertaking research into evaluative protocols for transactional decision making (linking Social Impact with conventional valuation and brand valuation).

• He is a director of the Centre for Public Scrutiny, an independent charity which supports scrutineers and the development of approaches to scrutiny in public sector and other bodies .

• The views expressed in this paper are the author’s own, and do not imply any corporate position by Baker Tilly, Cass Business School or its academic staff, or of CfPS.

www.cass.city.ac.uk

www.cfps.org.uk

Impact of Impact...

•Why is understanding impact important and for whom?

•Use of impact as an influencing tool:

• Internally

• Externally

•Using Impact to manage funding for PBR (New Social Finance and SIBs)

Outcomes measurement......

• SROI is increasingly being recognised

• Government moves towards project-based, or outcomes-linked payment• “Outcomes-based Government” report from

CSJ

• Increasing recognition of • the need for clear measurement and

• the acceptance of this approach

Measuring outcomes

Importance of financial measures:• to funders in Government• for prioritisation decisions• for delivery measures in contracts• to philanthropists• in competing for capital• ..and in public scrutiny

Typology of measurement protocols• Cost-based (e.g. Green book)

• Limited outcomes (e.g LM3/Global Reporting Initiative)

• Full(er) outcomes (e.g. SROI/GRI)

• Performance/QA evaluations (e.g. PQASSO/ SE Balanced scorecard)

• Feedback systems (not generally branded)

..what about SROI lite and similar ?

Developing your own understanding...

Inputs to Activities to Outputs to Outcomes to Impacts

Primary Secondary

• What change/outcomes does your work achieve (short / long term)?• Understanding how that change is achieved• And for whom (direct and indirect beneficiaries)?

.... who benefits and how?

SROI (or others) as an influencing tool...

Influence on funders Alliance of SSCs and BISAlana House and MoJ

Influence in restructuring the landscape

SSCs and the change in the White Paper in 2009Foundation of feedback through UKCES on SfH and SfC for DoH consultation paper “Liberating the NHS: Developing the Healthcare Workforce”; PACT Domestic Adoption

Influence on project partners Various, inc SSCs, NLL, PRTC

Influence on LA funders Witney, NLL and various others

Use as agents for change in policy influence networks

Adoption network around PACT’s SROI and BBC2 “A Home for Maisie” – see http://www.baaf.org.uk/node/3356

External view:• Deepening other organisations’ understanding of your work• Highlighting the value to defend against cuts or unlock new funding

SROI as an influencing tool...

Influence on project managers seeking to increase impact

Most of the studies done, for example Witney Children’s Centre

Influencing prioritisation decisions Various, inc SSCs

Influence the development of new services

PACT (CVAA)

Internal view:• Deeper understanding of how change is achieved• Developing relevant performance measures to monitor

impact• How can we do the same (or more) for less?• Understanding which projects achieve the most to support

prioritisation of scarce resource• Identify new opportunities

Social Finance models: the SIB

• Issuer defines terms• Multi-party funding;

same terms• Application for specified

social purposes (Impact)

• Investor reward balance

From a 3-D Typology of SIB-style funding....

Bridging to PBR

Capital

Special donors

With profitsNo

interest

ListedPermanent capital

Regular or deferred

Variable interestFixed

interest

Equity risk

Repayable (regular or bullet)

Payment by Results – linking funding to Impact

• Why PBR ?

• Economic trade

• Meaningful measures

• Measuring what matters: “Informed” Outputs

Inputs to Activities to Outputs to Outcomes to Impacts

Funder markets

Match the project to the funder market:

• Public funds

• Third Sector

• Corporates

• Individuals

• Family offices

THINK......• Project • Provider• Purpose•

Presentation

Why now?• Impact measures are increasingly expected…

• Are a valuable strategic tool…

• And are intrinsically linked to Social Finance structures

…Be part of developing the agenda now or wait until someone else imposes theirs on you…

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For more information contact:

Jim CliffordHead of Not for Profit Advisory ServicesBaker Tilly

Email: jim.clifford@bakertilly.co.ukMobile: 07860 386081Direct dial: 01923 657805