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Social Value Briefing
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The Social Value Portal
The Social Value Portal is an on-line solutions for the measurement, procurement and reporting of social value as required by the Social Value Act. We are a Social Enterprise We help organisations answer the question “What value do we bring to society?” We provide an on-line solution that delivers: Measurement An accounting methodology for measuring social value Management Ongoing target setting and contract management Procurement A procurement platform for Social Value to unlock value in your supply chain Reporting Non-financial and financial reporting of social, economic and environmental performance 2 The Social Value Portal - Overview
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Selected Customers We are working with BOTH public and private sector customers giving us a deep understanding of local needs. We work across all sectors 3 The Social Value Portal – Overview
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Drivers of Change
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The Social Value Act The Social Value Act is transforming the relationship between business and the public sector – what more can business do? Being used by local authorities to make the public £ go further Becoming a key differentiator (Manchester 20% SV weighting) Rewards businesses that ‘do good’ “An act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts and for connected purposes.” The SVMI has been developed through a group effort and is a culmination of work since February including meetings, stakeholder consultation and pilots 5 The Social Value Portal – Overview
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Benefit of Social Value in Councils
Social Value can provide genuine benefits Opportunity not a burden Evidence is that it is not an additional cost Evidence is that it promotes local and better business relationships + 20% SVA
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Measuring Social Value
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Creating Social Value SUPPLY CHAIN
Social Value is the net impact arising from a business activity measured in terms of the economic, social and environmental benefits brought to society c INDIRECT BENEFITS LONG-TERM IMPACTS Social Value can be measured in terms of direct, indirect and longer term impacts Value is created by he core business, its CSR activities and the activities of its supply chain DIRECT OUTCOMES Activity HYPERLOCAL LOCAL REGIONAL SUPPLY CHAIN
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Social Value depends on Context and View Point
Social Value depends on view point. The same job given to different individuals will lead to very different ‘values’ to society. Context and Cultural Background Value: £2,200 Value: £16,000 New Job On the one hand…. Happy family Good education Good CV No criminal record On the other hand…. Troubled family Left school at 16, no GCSEs Petty criminal record, likely to get worse Which is worth more and from what perspective – society or the individual? 9 The Social Value Portal – Overview
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How it works Total Social Value = Sum(Measures*Value)
Measurement should reflect local needs and will reflect your corporate strategy in terms of Themes, Outcomes and Measures (TOMs Matrix) Theme Outcome Measures Units Value Growth and Jobs More people in local work No. Young Offenders No. people £16,600/per Fair Pay Promote Local Business A Resilient Third Sector No. Voluntary hours No. hrs £13.57/hr Healthy Communities Vulnerable people better supported Spend in local supply chain £ spent Local Spend Lower waste and littering Reduced CO2e tCO2e £68/tCo2e Greener and Cleaner Reduced carbon emissions Total Social Value = Sum(Measures*Value) 10 Social Value Portal - Overview
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Birmingham City Council
Most councils have their own TOMs Matrix. We help finalise the measures and allocate values. These are used in procurement and contract management Theme Example Outcome Examples of Metrics and Measures Local Employment Increase Local Employment How many new jobs (Full Time Equivalent) will you create? How many hours of voluntary work hours will you provide? % of staff within 10 miles Buy Birmingham First (Local Procurement) Promote Buy Birmingham First What percentage of your spend will be with suppliers within 10 miles of the point of delivery % of spend with 3rd sector (Social Enterprises, Charities) How many procurement opportunities posted on ''Find it in Birmingham''? Partners in Communities Support Community Resilience How many schools supported through, governors, reading, mentoring, Career advice, CV writing Private sector investment in communities What value of spend with Social Enterprises? Residents making socially responsible decisions Number of community organisations supported Good Employer Promote Fair Employment and Equal Rights Pay the Living Wage (Y/N) to Employees servicing BCC contracts Flexible working hours Green & Sustainable Protect the Environment CO2 reduction (tCO2e) Number of individuals in Fuel poverty assisted with energy efficiency measures Ethical Procurement Promote Ethical Procurement % of suppliers audited on ethical practices % of invoices paid within the terms of the primary contract. 11 Social Value Portal - Overview
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The Social Value Calculator
The TOMs Matrix is used to build a Social Value Calculator. These are bespoke and will reflect the specific benefits that a Community Pharmacy will bring. This specific calculator is being used by Legal & General of their new home development in Crowthorne, Berkshire Theme Outcome Question Name (Short) Question (Long) Units Factor Values Economy: Skills and Employment Delivering local employment Local people employed Local people employed on the contract (full time annual equivalent). Please refer to the definition of Local in the Tender Documents. no. 1 £23,783 % local people employed % local people employed on contract % £0 Improving skills for local people Meaningful work placement Number of weeks in aggregate spent on meaningful work placements (only those of 1 week or over) or on a Pre-employment course on the project no. weeks £800 Training opportunities Number of training opportunities created or sustained (BTEC, City of Guilds, NVQ, HNC & Apprenticeships), Levels 2,3 or 4 (please specify how many at each level) no. people £1,946 Number of people supported into work Number of hours dedicated to support people into work (e.g. CV advice, mock interviews, careers guidance) hrs £20 Opportunities for disadvantaged people Long term unemployed hired Number of employees taken on who are long term unemployed (defined as people with continuous periods of unemployment extending for a year or longer) £11,939 NEETs hired Number of employees taken on who are not in employment, education, or training (NEET) and yr. old £14,438 Rehabilitating offenders hired Number of employees taken on who are rehabilitating offenders £34,840 Supporting diversity Diversity training Do you provide diversity training for your team and subcontractors Y/N Economy: Promoting Local and Responsible Businesses Opportunities for Local Companies Support for local SMEs and social enterprises Support for local SMEs and social enterprises, e.g. through expert business advice and guidance or 'meet the buyer events' for local businesses no. of events £104 Local supply chain spend Total amount (£) spent in local supply chain through the contract (excluding Social Enterprises spend - see question13) £1.111 Opportunities for Local SMEs and Social Enterprises Local SME spend Total amount (£) spent with local SMEs through the contract £1 Social enterprises spend £ spent with Social Enterprises through the contract 0.25 Society: Creating Stronger, Healthier Communities CVOs employed in the supply chain CVOs advice and guidance Providing business advice and guidance to CVOs £26 Third sectors provider spend (supply chain) £ spent with third sector providers within your supply chain Volunteering in the Community Volunteering to local community No hours volunteering time provided by staff to local Community £15 An effective and resilient third sector Donations to local community Charitable Fundraising/Donations: communities / local Working with schools Curriculum engagement Contribution to education (Curriculum Engagement) including school visits Environment: Protecting and Improving Our Environment Better places to live Sustainable Communities support Support to build more sustainable communities (e.g. by assisting with management of energy costs or energy efficiency improvements to homes) Efficient use of resources Waste to land fill reduction Reduction against baseline of waste to land fill tonnes £86 Improving the climate and local environment CO2 savings Savings in CO2 emissions on contract (specify how these are to be achieved). tCO2e £18 Sustainable Procurement Sustainable Procurement policy You have or are developing a Sustainable Procurement Policy. Please upload your policy here. ISO sub-contractors No. of sub-contractors with ISO 14001 Promoting Social Innovation Other measures that deliver social value Other measures (hrs) Other measures (hrs) - please describe any additional initiatives that you would like to make and hrs to be committed Other measures (£) Other measures (£) - please describe any additional initiatives that you would like to make and £ to be invested The Local Multiplier applied to local supply chain spend has been computed by regionalising GVA multipliers for the Construction Industry. Local SME spend has been recorded but not valued, to avoid double counting with local supply chain spend (hence the 0 in the Factor column). Social enterprises spend has been assigned a factor of 0.25 – this avoid double counting with local supply chain spend, while capturing the “extra benefits” of allocating spending to a social enterprise. We have excluded Waste to landfill reductions and CO2 savings from the final figures, as the responses from different bidders were not comparable. (Hence the 0 in the Factor column)
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Needs Analysis The TOMs matrix is designed to reflect the needs of the local area. GREATEST NEED is likely to reflect GREATEST VALUE EDUCATION HEALTH & DISABILITIES LIVING ENVIRONMENT BARRIERS TO HOUSING & SERVICES CRIME INCOME EMPLOYMENT Severe deprivation (bottom 10%) Mild deprivation
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Case Studies
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Cowen Avenue – Project Description
Harrow selected a new project at Cowan Avenue to run as the pilot study. The tender was run as an ‘open tender’ with no PQQ. Harrow Council was looking to appoint a contractor to carry out refurbishments works to 1-46 Cowen Avenue, an existing residential block arranged over 3no. Low- rise buildings constructed c. 1960, each comprising 4 storeys of multi-occupancy residential accommodation (ground and floors 1-3), plus lower ground floor of ancillary space. Key works include: Installation of external wall insulation Interior Works Mechanical and Electrical Works Contract Value (Estimated) - £1.1m and £1.3m Contract Term - 9 months 15 The Social Value Portal – Overview
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Cowan Avenue – Evaluation Criteria
Harrow selected a new project at Cowan Avenue to run as the pilot study. The tender was run as an ‘open tender’ with no PQQ. Quality / Technical Area weighting Quality Weighting Project Examples 30% Delivery of the Specified Requirements Programme of Works 10% Resident Communication Key Performance Indicators Health & Safety Total for Quality/Technical 100% Quality Threshold – 20% out of the available 30% Social Value (via the Social Value Portal) * SV Weighting Commitments 70% Supporting Method Statements Total for Social Value Commercial - Cost Commercial Weighting Cost submission 60% Total 16 The Social Value Portal – Overview
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Cowen Avenue – Tender Submissions
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Figure: YPO supplier map using SVP
CASE STUDY: Yorkshire Purchasing Organisation YPO (Yorkshire Purchasing Organisation) is a 100% publicly owned body supplying products and services to its public sector customers across a large proportion of the UK . SVP has been commissioned to develop a YPO Social Value Strategy including overall Themes, Outcomes and Measures (TOMs) and to roll out the solution across YPO to enable reporting on Social Value to be included in the Membership Benefits statement. We are reporting on suppliers by geospatial map and post-code We have set up over 100 Supplier Accounts and are working through the process of ensuring YPO’s suppliers are registered and reporting on Social Value . So far, 60 suppliers are registered and 23 have submitted a Social Value report. We are continuing with the process of increasing uptake and considering incentives to achieve maximum compliance Figure: YPO supplier map using SVP
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YPO The SVMI has been developed through a group effort and is a culmination of work since February including meetings, stakeholder consultation and pilots 19 The Social Value Portal – Overview
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Social Value Maturity Index
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The National Social Value Task Force
We manage the National SV Taskforce which allows us to set national standards in measuring and managing social value AGMA Birmingham City Council Bristol City Council Cabinet Office Coventry City Council Cornwall County Council Crown Commercial Services Halton Borough Council Local Government Association London Fire Brigade Durham NHS Halton CCG & LA ORBIS (Surrey & East Sussex County Councils) Supply Chain Future Social Value Portal Willmott Dixon Foundation YPO Economy: Skills and Employment Economy: Promoting Local and Responsible Businesses The SVMI has been developed through a group effort and is a culmination of work since February including meetings, stakeholder consultation and pilots
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The Social Value Maturity Index
FOLLOWER - Compliance driven. Doing just enough to meet the conditions of The Act MATURE - Taking a pro-active approach to integrating Social Value into procurement and commissioning LEADER - Social Value embedded into corporate strategy and have comprehensive frameworks for management and delivery INNOVATOR - Social Value is a core operational metric, integrated into all directorates/departments and activities with regular reporting against targets Policy & Scope Internal Management Measurement: Themes, Outcomes and Measures Commissioning Procurement Market Engagement and Partnerships Contract Management Cross Sector Collaboration Reporting Governance and Accountability THE tool itself is a manifestation of a the framework which itself is based on a journey that starts out following the pack, leads onto being mature as you become more proactive in the process, to a point where you are a recognised leader in embedding social value into your systems and processes. Finally, some of you might choose to innovate around some or all of the issues. Your journey is assessed against 9 (business) and 10 (public sector) key themes. It is important to note that there is no right or wrong as long as you are compliant and for business there is no right or wrong as the act only applies to your customers
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The Social Value Maturity Index <SVMI>
Ratings l Incomplete/Non Compliant l Follower l Mature l Leader l Innovator The tool allows you to assess where you are now and asks you decide where you want to be
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Level Followers Mature Leaders Innovator Now Future Policy & Scope Internal Management Measurement Commissioning Procurement Market Engagement Contract Management Cross Sector Collaboration Reporting Governance and Accountability Key Where you are now X Where you want to be
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Implementation remains a challenge
Business needs clarity and transparency with respect to your intentions and overall ambition. You must make it as easy as possible to manage and deliver 20% SVA Agree a standard set of TOMs to be used across all contracts Agree a minimum contract value above which social value is included (e.g. £50,000 to 100,000) Make it worthwhile to do more by setting appropriate weightings (e.g. 10%-20%) Be transparent and open in measurement Engage with your supplier base and build capacity and knowledge ahead of time
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Read More: www.socialvalueportal.com
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