The Evaluation of Public and Social Impact Prof. Peter Shergold Centre for Social Impact Australasian Evaluation Society Conference, Sydney 1 st September 2011

2 The Dimensions of Public and Social Innovation Government – the contractual state – the coproduction of service – the harnessing of capital Community – the third party organisation – the social enterprise – directing trade surplus to mission Business – corporate responsibility and sustainability – the shared value organisation

3 Government auditing social mission COMMUNITY reporting on social responsibility PRIVATE PUBLIC evaluating program effectiveness

4 Government (i)through community organisations inputs:acquittal of grants outputs:measurement of process outcomes:evaluation of results outcome payments social impact bonds capital for social impact

5 Government (ii)through the coproduction of services self-directed programs self-managed budgets diagnostic capacity allocative efficiency

6 Community membership income philanthropy, social investment trade outputs mission

7 Business 3 BL: profit-corporate citizenship people-corporate social responsibility planet-corporate sustainability financial results (to shareholders) shared social/environmental outcomes value (to stakeholders)

8 The Evaluative Challenge achievement of positivee.g. employment outcomes ecological protection reduction in public e.g. out-of-home care expenditure prisoner recidivism creation of beneficial social impacte.g. creation of social capital related outcomes extent of self-reliance systemic values level of civic engagement socially responsible behaviours

9 Measuring Social Impact (i) (i)to measure value, e.g.- alleviation of hardship - reduced inequality - improved wellbeing - more harmonious society (ii)at different levels- programmatic (e.g. feeding the homeless) - organisational (e.g. relieving poverty) - systemic (e.g. food redistribution) - sectoral (e.g. affordable housing) (iii)created both- directly and- indirectly

10 Measuring Social Impact (ii) Inputs:resources used Outputs:activities undertaken Outcomes:net benefit to recipients intended results attributable to activities Impact:net benefit to broader community often long-term including unintended ‘spillover’ effects assessing level of contribution

11 Measuring Social Impact (iii) Social contribution may be through: Delivering services – e.g. welfare, environmental, cultural Exerting influence – e.g. education, research, advocacy, demonstration Connecting community – e.g. networks of trust, engagement, collaboration, participation including volunteering Enhancing community endowment – e.g. creation or preservation of assets for the future

12 Measuring Social Impact (iv) May be focussed on the social auditing process involving stakeholders, mapping outcomes, establishing materiality, indentifying impact, ensuring transparency May calculate a monetary value expressing a rate of return on social investments or measuring the reduction in public expenditure For either: retrospective purposes (evaluation, diagnosis, report) predictive purposes (forecast, plan)

13 Measuring Social Impact: Origins accounting cost-benefit analysis design structure, especially logical framework (“log frame ”) Methodological origins

14 Measuring Social Impact: Methodologies (i) Social Accounting (New Economics Foundation) REDF (Roberts Enterprise Development Fund) to exhibit social, env’al, economic performance based on values of stakeholders planningaccountingaudit social account statement (independently verified) to measure success in creating social value calculate enterprise, social purpose, blended value calculate index of return on each

15 Measuring Social Impact: Methodologies (ii) to measure success in creating social value map and provide evidence of outcomes establish impacts put a monetary value on that impact SROI (Social Return on Investment Network) Stakeholder Value Management Analysis to analyse stated preferences infer stakeholder trade-offs calculate relative value

16 The Dangers of Measuring Social Impact undermines the gift of giving takes up scarce resources potential to be misused (e.g. by governments) difficulty of measuring intangible contribution may focus activity on the measurable

17 The Benefits of Measuring Social Impact to improve organisational performance to ensure scarce resources are being used to most effect to engage diverse stakeholders to assess relationship between mission and activities to increase accountability and maintain public trust to raise public profile to exhibit to benefactors the social return on their funds to improve public policy outcomes