Social Impact Measurement AVPN Asia Tour Marlon van Dijk, Managing Director

My name is
Trainer: Marlon van Dijk Age: 30 years Recidence: Amsterdam Hobbys: triathlon, travelling and writing Profession: managing director Expertise: social impact analysis and SROI

 and who are you?

who is a social entrepreneur? who is a social investor? who is working for the government? who is a researcher or consultant? Please introduce yourself! Whats your name? Where youre from? How old are you? What are your hobbies? Whats your profession? What are your expectations for today?

Who we are
Social E-valuator stimulates, facilitates and embeds social performance management to ensure social accountability. Social E-valuator makes social performance management better accessible, cost-efficient and enables to report about social impact in a consistent way. Functionalities include: Performance management SROI calculation Management accounts Database on social performance indicators Since the software was launched: > 1800 analyses were made > 100 companies were client > 200 professionals were trained

Our mission

What we measure affects what we do. - Joseph Stiglitz, Nobel Prize winner in Economic Sciences (2009) -

Our company

Preferred partners
Assurance & Auditors Sector specialists Cooperatieve model

social e-valuator tool

-Management support software - Social performance management -Database & referenties

Expert partners
Accredited practitioners Sector specialists Cooperative model

Knowledge
-

Consults & training

Inspirational sessions In-company training Expert services

Business schools
Case studies Webinars

Added value

(CSR, social enterprises and non-profits)

Social Purpose Organisations

Private investors

Public investing

Comissioning Resource allocation Policy making Accountability

(Banks, foundations and familiy foundtaions)

(National Governments and municipalities)

Social due dillegence Investment selection Portfolio management Accountability

Legitimacy Strategic management Resource allocation Atrack finance Accountability

Our principles

1. Involve stakeholders
2. Understand what changes 3. Value what matters 4. Only include whats material 5. Dont over-claim 6. Be transparant 7. Verify the result

Our framework
Internal External

Input

Activity

Output

Outcome
Perceived changes

Investment per stakeholder

Most important activities

Short term results

Deadweight

Impact

Attribution

Choosing indicators

Choosing indicators

(Cost) price known?

Market prcie known?

No price known?

(Costs)price-based methods

Value price-based methods

INPUT Existing knowledge about relevant (cost) prices and proxies

INPUT Existing knowledge about relevant (market) prcies

INPUT

Existing knowledge about relevant values

Valuation methods

(Cost) price-based
Incurred Losses Method (ILM) Cost Reduction Method (CRM)/ shadow-costs method Averting Behavior Method (ABM) Hedonic Price Method (HPM) Cost Prevention Method(CPM) Travelling Costs Method (TCM) Restoration Costs Method: compensation of loss (RCM) Production Factor Method (PFM) / productivity change method Added Value Method (AVM)

Value price-based
ValueGame willingness to pay willingness to accept Creditcard method

Value

Indicators -,-Indicator Outcomes

Outcome 1

Stakeholder

Stakeholder
Outcome 2

Indicator

-,--

Outcome 3

Indicator

Impact Map

Dashboard

Manage multiple projects

Set settings for standardization

4. Case study

Instructions
Lets get practical!
Divide in groups of 3-4 people and read the case study Go to www.socialevaluator.eu and login with your username and password Start and enter a brief description of the project studied (step 1). Be specific about the scope of the initiative, describe a summary of the project, select a currency and enter in which country/region the project takes place.

Break-out session 1: Theory of Change

Answer the following questions with your group (step 2)
What is the social issue? What is the urgency of the issue? Wat is the scale of the issue? What is the solution? What are the specific objectives? What is the timeframe of the analysis?

Presentation: Theory of Change

Elevator pitch
Each group selects a speaker Pitch the Theory of Change in 2 minutes Feedback from all participants

Stakeholders
Stakeholders are the contributors and / or beneficiaries of the project. However, if a stakeholder contributes to or benefit from the project very indirectly or with no clear evidence, you can exclude it. Also, be specific in defining your beneficiaries: make sure that your target group is homogeneous. If necessary, divide it into subgroups, while not exceeding eight stakeholders.

Break-out: Stakeholder mapping

Map the stakeholders in the matrix according to their level of importance and influence

Stakeholder selection
How do you select stakeholders?
Present per group the stakeholder map Which stakeholders did you select and explain why Are there differences between the groups? Group discussion and complete step 3

Break-out session : Inputs Activities - Outputs

Enter step 4-6
Inputs may be in money, time and nature. To calculate the SROI ratio, it is necessary to give a money value to all the inputs. If a stakeholder does not have a contribution, check the box indicated, if you estimate that the stakeholder has a contribution of zero, enter 0. Note that the sum of the total investments for xxx years needs to be calculated in this step. In Activity, indicate the role of the stakeholders in the project (financing, implementation, participation etc.). In Outputs, indicate what indicators you would follow to measure the activities. Output (what I done) differs from outcome (what has changed) Do not be surprised if for funders, inputs, activities and outputs are almost identical: it is however not the case for all stakeholders.

Break-out session : Outcomes & Impact

Enter step 7
What are the outcomes of this project for each stakeholder? What changes have they experienced? The tool allows you to choose 3 outcomes maximum by stakeholder Focus on significant impacts and remember your Theory of Change! Be realistic: enter a deadweight rate and an attribution rate Deadweight: could some of the observed changes have happened even if the project had not existed? Attribution: which other factors or actors participated in the achievement of the outcomes? Note: the rates entered in the tool correspond to what is removed from the project (and not what is given to the project)!

Break-out session : Indicators

Enter step 8
You must choose indicators that make sense and accurately express the social impact that the project creates. Indicators measure the level of achievement of the outcomes you have selected. Note that it may be better to take one truly representative indicator of the impact that three approximate indicators that you'll struggle to quantify and value. These indicators will be assigned a monetary value in the next step. Be careful: do not go too fast and confuse indicators, which prove and quantify the achievement of the outcomes, and the monetization, which gives a money value to the outcomes!

Break-out session: Valuing Social Impact

Enter step 9
Enter your total number of beneficiaries over the studied period Valuation method: indicate whether you use avoided costs, generated revenues, proxies (market price for products or services with similar outcomes), a ValueGame or a method such as transportation costs Number of persons / units: it is the number of individuals, groups, entities for which the indicator is valid, this is the way you quantify the indicator Value: this is the money value for one unit of your indicator. This value is automatically multiplied by the number set in the previous column and decreased of the percentages of deadweight and attribution rates to obtain the total social value The "number of years" means the number of years during which the effect you are responsible for (in this case, 1 year) lasts. If you do not want to monetize an indicator, you can include it in the non-quantifiable results in the table below.

Break-out session: Projections

Enter step 10
In this step you calculate a forecast of the social impact. The total investment has to be spread over the period in which the initiative runs. In the years 2 until 5 an estimate has to be made for the amount of persons (or units) reached and the total investment for that year.

Investment selection
Group discussion What are the main value drivers? Which stakeholder benefits the most? What is the SROI ratio? Would you invest in this enterprise?

Evaluation + tea

Post address Postbus 10192 1001 ED Amsterdam Nederland www.socialevaluator.eu

Visiting address De Alchemist Koningin Wilhelminalaan 8 3527 LD Utrecht info@socialevaluator.eu