1. Introduction to Social Performance Measurement by Peter Scholten Date 14 May 2012 (09:30 hr - 16:00 hr) Venue India International Centre Seminar Hall 3 40 Max Mueller Marg New Delhi 10003 Delhi Workshop: Introduction to Social Performance Measurement 1

2. Introduction to Social Performance Measurement by Peter Scholten Agenda Introductions and Expectations 1. General introduction: backgrounds of SPM 2. How to get started with SPM – Objectives – Requirements to get started 3. Methods, tools, databases, resources 2

3. Introduction to Social Performance Measurement by Peter Scholten About Peter Scholten 3

4. Introduction to Social Performance Measurement by Peter Scholten Alice asked: “Cheshire cat…would you tell me, please, which way I ought to go from here?” “That depends a good deal in where you want to get to. If you don’t know where you are going, then any road will take you there, said the cat”. Social Performance Measurement 4

5. Introduction to Social Performance Measurement by Peter Scholten Introductions Your name & organization What are your expectations for this workshop? What is your experience with Social Performance Measurement? 5

6. Introduction to Social Performance Measurement by Peter Scholten General Introduction 6

7. Introduction to Social Performance Measurement by Peter Scholten Venture Philanthropy To build stronger social purpose organizations by providing them with both financial and non-financial support in order to increase their societal impact. Impact may be financial, social (incl. cultural, medical, etc.), environmental. key characteristics: high engagement, tailored financing, multi-year support, non-financial support, involvement of networks, organizational capacity- building and performance measurement 7

8. Introduction to Social Performance Measurement by Peter Scholten 8 Charity: grant- dependent Charity: grants and trading revenue Social Enterprise: <75% trading revenue Social Enterprise: break-even Social Enterprise: profitable, reinvest surplus Socially- driven Business: distribute some profits Business: Sustainable business practices Business: allocate % profit to charity CSR ++ Business: allocate % profit to charity CSR ++ Business: mainstream company Organisations can create “blended” social and financial value Key driver: Create social value Key driver: Create financial value Source: Adapted by AVPN from Skoll Centre, EVPA, CAF Venturesome, Noaber Foundation Impact Only Venture Philanthropy Finance FirstImpact First Impact Investing VP Spectrum

9. Introduction to Social Performance Measurement by Peter Scholten 9 Social Purpose Organisation Social Purpose Organisation Venture Philanthropy multiplies the impact of financial capital through advisory services and high engagement Increased Social Impact Increased Social Impact Venture Philanthropy Organisation Venture Philanthropy Organisation Financial Capital Strategy Marketing Legal Accounting Networks Coaching Non-financial resources Other Funders Co-investment Venture Philanthropy

10. Introduction to Social Performance Measurement by Peter Scholten Social Performance Measurement (SPM) Social Impact Assessment Impact Measurement Evaluation Performance Measurement Social Return There are so many names for similar activities: Need for Glossary 10

11. Introduction to Social Performance Measurement by Peter Scholten Development in SPM Trust me (Charity) < 1960’s Tell me (Philanthropy) 1960-2000 Prove me(Venture Philanthropy) > 2000 11

12. Introduction to Social Performance Measurement by Peter Scholten The need for SPM 1.The management perspective 2.The market perspective 3.The government perspective 4.The public perspective 5.Critique 12

13. Introduction to Social Performance Measurement by Peter Scholten Management Perspective 1.Increasing social impact 2.Proof for success of a project 3.Improving performance 4.Accountability 5.Well-informed decision making by CEOs and boardmembers. 13

14. Introduction to Social Performance Measurement by Peter Scholten The Market Perspective 1.Efficient resource allocation 2.Creating benchmarks and standards 3.Attracting new resource providers 4.Blurring of borders between sectors (venture philanthropy, social venturing) 14

15. Introduction to Social Performance Measurement by Peter Scholten The Government Perspective 1.Clarifying tax exemption 2.Avoiding of scandals in philanthropic sector 3.Achievements instead of endowments (focus change) 15

16. Introduction to Social Performance Measurement by Peter Scholten The Public Perspective 1.Transparency 2.Communication tool 3.Publicity 4.Donor’s donations decisions 16

17. Introduction to Social Performance Measurement by Peter Scholten Comments on increased evaluation 1.Data obsession 2.Trust based relationship between partners 3.Numbers can create errors 4.Comparable (apples-oranges and apples- kangaroos) 5.Externalities 6.Focus on projects, outcomes and indicators that are easy to measure 17

18. Introduction to Social Performance Measurement by Peter Scholten Apples and Oranges 18

19. Introduction to Social Performance Measurement by Peter Scholten 19

20. Introduction to Social Performance Measurement by Peter Scholten 20

21. Introduction to Social Performance Measurement by Peter Scholten 21

22. Introduction to Social Performance Measurement by Peter Scholten How to start/continue 22

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24. Introduction to Social Performance Measurement by Peter Scholten Theory of Change / Logic Model What is the issue you are trying to solve/prevent? How big is it, what is the size? How urgent is it? Wish or need? What is your value added? If the Theory of Change is not clear, performance measurement is almost impossible 24

25. Introduction to Social Performance Measurement by Peter Scholten Be specific ! “Increased Income” – 10 pesos per year – For one worker or the family – 5% increase (when inflation rate is 10%?) – In one year, or 5 years? – Disposable income for families? 25

26. Introduction to Social Performance Measurement by Peter Scholten Audience & Objectives Audience Objective Internal External Accounting Learning 26

27. Introduction to Social Performance Measurement by Peter Scholten Timeframe & Perspective timeframe perspective Ex Post Ex Ante Investee Investor 27

28. Introduction to Social Performance Measurement by Peter Scholten 0 benefits years cost Short term or long term? 28

29. Introduction to Social Performance Measurement by Peter Scholten Trend 29

30. Introduction to Social Performance Measurement by Peter Scholten 30 Trend

31. Introduction to Social Performance Measurement by Peter Scholten Frequency & research type Frequency Research type Due diligence monitoring Involve stakeholder Desk research 31

32. Introduction to Social Performance Measurement by Peter Scholten Verification Will target group be asked about their experiences, expectations, opinions? – Can you claim an impact without asking the (main) stakeholder? Information from desk research? – To what extend is research data applicable to your project/investment? 32

33. Introduction to Social Performance Measurement by Peter Scholten How & What how what Qualitative Quantative Process ISO, TQM BSC, ‘lives touched’ Impact Story telling SROI, CBA 33

34. Introduction to Social Performance Measurement by Peter Scholten Mission Alignment 34

35. Introduction to Social Performance Measurement by Peter Scholten Planning SPM What do you need? Who do you need? When do you need it? Theory vs Practice 35

36. Introduction to Social Performance Measurement by Peter Scholten What is needed? Money: – Outsourcing (f.e. external audit) – Instruments, registration systems – Training (consultancy) Time – How much time is available? – Deadlines, busy, “it is extra”, (primairy process has priority); – Patience vs. quick results 36

37. Introduction to Social Performance Measurement by Peter Scholten Who do you need? Internal: Colleagues Internal support – Management, IT, admin, etc. Who is in your team? What knowledge/capabilities External: – Targetgroup(s) – Stakeholders – Support (consultant, university, etc.) 37

38. Introduction to Social Performance Measurement by Peter Scholten When do you deliver? Project planning – Gant chart / measurement plan What can you expect and when? Who is expecting results and when? Feasibility 38

39. Introduction to Social Performance Measurement by Peter Scholten Sign contracts and disburse capital Y1 Y2Y3Y4 Preliminary review Deal execution Portfolio controlling & reporting Exit Deal screening Who uses the information of the framework? How is the information of the framework used? LGT VP TeamBoard LGT VP Team/ Board/Orgs Team + Board + Funders/Investors + Public Initial understanding of impact Decide if org will be presented to the board Assess and report on achieved social impact (qualitative and quantitative) Impact Model light Impact Model Investment memo (impact targets) Due diligencePost-Investment Monitoring Impact reports (internal + public) Deliverables Deeper understanding of impact Board approval of resources for local DD Board approval of engagement Define impact targets Impact model framework contributes to decision making, management of portfolio and stakeholder reporting Source: LGT Switzerland 39

40. Introduction to Social Performance Measurement by Peter Scholten Resistance or Support 40

41. Introduction to Social Performance Measurement by Peter Scholten 41

42. Introduction to Social Performance Measurement by Peter Scholten …. reasons not to do performance measurement….. It is complex and difficult It is expensive and time consuming There are no incentives… It is not standardized… The methods are not scientifically approved… We already do so much … Is it my responsibility? 42

43. Introduction to Social Performance Measurement by Peter Scholten Disease of convexity “We create high value” 43

44. Introduction to Social Performance Measurement by Peter Scholten Methods, tools & databases 44

45. Introduction to Social Performance Measurement by Peter Scholten Where to start…? rformance Measurement: Measurement:cial Impact As- Performance Measurement: 53.800.000 Impact Assessment:93.300.000 Social Impact Assessment tool 32.000.000essment tool 32.000.000 ent:93.300.000 45

46. Introduction to Social Performance Measurement by Peter Scholten 100’s of tools… Different background – American models, American models- European version, European models, Other models Different sectors – Sustainability /, community-based / Development Different purposes – Results Oriented (quantitative); Process Oriented (qualitative) Different knowledge levels – Practitioner tools (many “home-made-tools”);Academic tools Consultancy tools Different networks – Academic, practitioners, consultants, for different sectors – many EU-networks through european subsidies 46

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48. Introduction to Social Performance Measurement by Peter Scholten Examples Balanced Scorecard Progress out of Poverty Index (PPI) Social Return on Investment – Cost Benefit Analysis, QALY’s Participatory Impact Assessment – Valuegame 48

49. Introduction to Social Performance Measurement by Peter Scholten Balanced Scorecard 49

50. Introduction to Social Performance Measurement by Peter Scholten Source: One Foundation, Ireland

51. Introduction to Social Performance Measurement by Peter Scholten Source: OneFoundation, Ireland

52. Introduction to Social Performance Measurement by Peter Scholten 52 Results - One Foundation It has been supplemented by an external evaluation (funded by co-investor) that captured qualitative elements of progress e.g. impact of policy programme at 2 year point There has been buy in from management team to the tool; but not used for Board reporting – not yet full alignment Results have largely been ahead of target – lives touched, policy influence, organisational development, EXCEPT fundraising/funding diversification Much focus on outputs To support strategy implementation (process) in the funded organisation rather than demonstration of the impact of any particular decision

53. Introduction to Social Performance Measurement by Peter Scholten Progress out of Poverty Index Estimates the likelihood that clients fall below the national poverty line; PPI is country specific and based on that country's best nationally representative income and expenditure household survey. The process starts with a nationally income and/or expenditure survey. These indicators are then tested and vetted with local MFIs and their representatives. 53

54. Introduction to Social Performance Measurement by Peter Scholten PPI - Process Staff visit clients to collect key information, such as family size, children attending school, housing, etc.. Indicators are drawn from national household surveys (such as Mexico’s INEGI database or Pakistan’s Integrated Household Survey) or World Bank Living Standards Measurement Survey, This index serves as a baseline from which client progress is measured. In this way, individuals are ranked according to the applicable poverty line. Using this analysis, institutions can assess the poverty likelihood of clients by branch, by rural or urban setting and by client. 54

55. Introduction to Social Performance Measurement by Peter Scholten PPI Form 55

56. Introduction to Social Performance Measurement by Peter Scholten PPI - results How effective are the MFI’s at alleviating poverty? Is social outreach and outcome information available by country? Are investment dollars reaching the poor and very poor? At the portfolio level, how many clients are moving out of poverty? How long does it take for MFIs, on average, to attain for their clients sustained movement above the poverty line? What measures are taken to ensure that investments really support the poor and poorest populations? Poverty assessment tools? Social audits? Other? developed by the Grameen Foundation, the Consultative Group to Assist the Poor (CGAP), and the Ford Foundation www.grameenfoundation.org 56

57. Introduction to Social Performance Measurement by Peter Scholten Social Return On Investment Social value created by a capital investment in change Quantifying all inputs and outcomes into monetairy values Ratio between investments and benefits Enable to aggregate results and portfolios Focus on: – Stakeholder involvement – Valuation in order to compare investments Money as a calculation unit; not real money Source: www.thesroinetwork.orgwww.thesroinetwork.org 57

58. Introduction to Social Performance Measurement by Peter Scholten Reporting Analysing Social Return on Investment 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 Principles of SROI 58

59. Introduction to Social Performance Measurement by Peter Scholten Participatory Impact Assessment 59

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61. Introduction to Social Performance Measurement by Peter Scholten ValueGame Perceived value for primary stakeholder group(s) – not institutions – For institutions mainly cost-savings or re-allocations Focus group- and/or online research to measure the importance of the change for specific stakeholder in specific situation Ranking and rating of outcomes using images Beyond satisfaction research: you can be satisfied with something that has low value 61

62. Introduction to Social Performance Measurement by Peter Scholten Value Price Costs Value - Price - Costs “Value is in the eye of the stakeholder” 62

63. Introduction to Social Performance Measurement by Peter Scholten ValueGame 63

64. Introduction to Social Performance Measurement by Peter Scholten Databases IRIS-GIIN WikiVOIS Worldbank 64

65. Introduction to Social Performance Measurement by Peter Scholten Source: global impact investing network, http://iris.thegiin.org/iris-standardshttp://iris.thegiin.org/iris-standards 65

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67. Introduction to Social Performance Measurement by Peter Scholten http://iresearch.worldbank.org/lsms/lsmssurveyFinder.htm 67

68. Introduction to Social Performance Measurement by Peter Scholten Online tools Tools of change Impactmap Social Evaluator ValueGame 68

69. Introduction to Social Performance Measurement by Peter Scholten www.toolsofchange.com 69

70. Introduction to Social Performance Measurement by Peter Scholten www.impactmap.org 70

71. Introduction to Social Performance Measurement by Peter Scholten www.socialevaluator.eu 71

72. Introduction to Social Performance Measurement by Peter Scholten www.valuegame.org 72

73. Introduction to Social Performance Measurement by Peter Scholten The best tool/method/database… There is not something like ‘the best tool’… It all depends on your scope, objectives and resources; Most methods use similar framework (change, stakeholders, impact, etc.); more commonalities than differences; How to make your choice? – EVPA Manual for SPM (due February 2013) – Integrate AVPN-experiences &knowledge 73

74. Introduction to Social Performance Measurement by Peter Scholten EVPA and its Knowledge Centre are supported by: Concrete Plans for the IMI 3 Webinar Series April – July 2012 Case Study Development April – August 2012 1 st Draft Manual & Workshop October 2012 “Version 1.0” Manual February 2013

75. Introduction to Social Performance Measurement by Peter Scholten Contact information Peter Scholten PO Box 59695 1040 LD Amsterdam The Netherlands Email: info@peterscholten.com Mobile: +31-6-17430741 75

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