Social Return on Investment (SROI) po Calgary – Sustainability for Breakfast Network

1. Social Return on Investment (SROI) poCalgary – Sustainability for Breakfast Network Stephanie Robertson SiMPACT Strategy Group January 28, 2011

2. Introductions Achieving the Highest Standard in Community Investment. • Other Specialties: • Performance measurement & evaluation of CI portfolios; • Social Return on Investment (SROI); • Management systems to support CI and enhance CSR commitments; • Capacity & skill development. Network of Professionals CI Portfolio Performance Measurement via Benchmarking Performance Measurement of Priority Projects Leadership in Reporting & Communications

3. A Growing Community Right from the Start Family~School~Community

4. History of SROI 1993 2010 www.redf.org www.thesroinetwork.org

5. What is the purpose of an SROI? • To assign a commonly understood value (financial proxy) to outcomes that are at-risk of being misunderstood, under-valued or overlooked altogether. • To forecast the potential value of a policy, organization or project, in order ensure that maximum value is achieved. • To evaluate whether maximum value has been achieved, and if not, why not. • To achieve ‘best value’ through procurement. • To enhance communications.

6. Steps to an SROI • Describe situation without your policy, organization or project • Summarize the theory of change • List and describe changes aspired for targeted stakeholders and their stakeholders, including investors • Estimate the cost of the current situation, across applicable timeframes • Calculate SROI • Tell your value story, reporting on all sources of value

7. Social Value is created in many different ways • Community cohesion • Confidence that leads to a new, positive action • Skills that lead to a new job, better job, paying taxes, etc… • Quality of life improvements • Increased assessment of life satisfactions (happiness, friendships, feelings of being supported, sense of security) • Environmental improvements … • Other, many more examples …

8. How to 'monetize' Social Value • Cost reallocation • Changes in taxes paid • Cost savings - reducing scope of problem or cost of service delivery • Future cost avoidance • Increased individual or household income • Value of improved quality of life Direct (the target stakeholder) or Indirect (stakeholders who change as a result of the target stakeholder’s changes)

9. Change across Timeframes

10. Distress Centre – inputs to impacts Inputs Outputs Outcomes Impacts $875,000 89,903 crisis calls received total number Difficult to be certain 26,971 calls from frequent callers with complex needs Difficult to be certain 8,091 crisis calls de-escalated and referred Sure that volunteers made a difference 8,091 callers in extreme distress

11. Distress Centre’s SROI Calculation

12. Distress Centre’s SROI Calculation Social Value Created / Annual Investment = SROI : 1 Social value created $4,501,732 Annual investment $875,000 SROI Ratio 4.14 : 1

13. Current Environment • Reduced Funding Opportunities • Donor potential eroding…….. • New definition of services placed on a Community Impact Framework Community Impact is the mobilization of collective action to create measurable, cumulative lasting change that improves lives and builds resilient communities. 

14. SROI is … a Story Not a Number

15. www.calgary.ca/sroi

16. Calgary Case Studies

17. SROI Canada Network • Advancing knowledge of tools to express social value creation, across all sectors. • Establishing a national authority for the advancement of the SROI methodology in Canada, including: • SROI training, including preparation for practitioner accreditation • SROI practitioner accreditation • Canadian standards of SROI practice • A financial proxy data base of national, provincial and local financial proxies • Third‐party assurance of the quality of SROI reports • Representing SROI‐Canada within SROI International. • www.sroi-canda.ca • Linkedin.com/sroicanada

18. Challenges • New & emerging methodology • Not enough experienced practitioners • Risk of over-claiming significant!!!!!!!! • Tendency to focus on the ratio, rather than the whole story (which misses the point completely!) • Need a common understanding / standard of practice • Dismissed as cost/benefit analysis • Other • Other • Other

19. Contact Details www.simpactstrategies.com www.lbg-canada.ca Stephanie Robertson President, SiMPACT Strategy Group 403-444-5683 stephanie@simpactstrategies.com

20. SROI LEARNINGS

21. Why we went this route • Rationale for outcomes was driven ,at first, by the sectarian name and concern that the community would develop misconceptions about the agency. ( Service vs. Proselytizing) • Board directive to have in place demonstrable outcomes in two years . (1997)

22. Outcomes require work & maintenance • No existing budget for infrastructure & a very dysfunctional relationship with data! • Develop & commit to an IT strategy • Find $150,000 to resource it. (.4%) • Engage a research consultant ( someone who knows what they are doing). • Support a culture where the primary purpose for outcomes is to improve service and try new and innovative approaches • Positive results for clients and staff morale • Keep the investors happy

23. Barriers • Fear of change….. New Murphy’s law might read “ agents of change will always balk at change affecting themselves” • Resistance “We know what we are doing so don’t interfere” “We know our clients best”

24. “So we are going to dumb it down to money”

25. We have a divine right to your money because our cause is noble and oh yes no questions asked other than “did you spend the money honestly?”

26. What if it’s not working ?

27. Current Environment • Reduced Funding Opportunities • Donor potential eroding…….. • New definition of services placed on a Community Impact Framework Community Impact is the mobilization of collective action to create measurable, cumulative lasting change that improves lives and builds resilient communities. 

28. Post Recession Donor Wariness • One hypothesis is that donors will continue to contribute but want the stewardship of their dollar to be more secure and more effective. What impact over the long term will my dollar create? • No different than our own expectation of RRSP portfolios

29. The big external question that is not going away SO WHAT?…..Why Should I give you my hard earned money?

30. Shared Definition of Impact • There is a more shared understanding that is evolving • There are at least three player groups • Corporate, Foundations & individual donors • Public sector .. United Way, Government • Non Profit- that’s us (although I believe we have to change the name)

31. Public Sector Driven to demonstrate effectiveness in operating & investing in the public interest Socially driven-Public Good organizations Corporate & Donor Groups All are seeking to provide evidence of value created against investment Driven to demonstrate the value of their work Driven by CSR, sustainability and Governance agendas Cross Sector Interest

32. Service Outcomes • Demonstrable Outcomes are Essential • Don’t confuse them with “widgets” • Can you communicate them in a language that is not “professional code” ?

33. What did we learn…..so far?

34. Not everything that can be counted counts, and not everything that counts can be counted. ~ Albert Einstein

35. Scope and complexity of our work • Importance of a succinct “theory of change” • Clearer more focused relationships with partners • We do create value that is beyond warm fuzziness!

36. Depression Program Social Return on Investment Robbie Babins-Wagner, MSW, PhD (C) RSW robbie.wagner@calgarycounselling.com www.calgarycounselling.com

37. 8.2% of Canadians suffer from depression at any point in time • Estimate: 85,517 Calgarians • With a workforce of 759,000 people in Calgary: • Estimate 62,200 workers in this city.

38. Our clients • Between 3 – 83, most between 18-50 • 58% female • 42% male • Range from the working poor to unemployed to corporate executives • Single, married, teens and parents

39. Theory of Change • Individuals struggling with the effects of depression, who receive counselling at CCC in a timely manner, generally demonstrate positive changes. • They become more hopeful, more productive, better able to function at home, work or school.

40. Social Value Added • Depression reduces the ability to focus on day to day activities in all settings • The CCC depression program helps participants develop the ability to manage their depression and function in their daily lives • This results in people being able to function as effective and contributing members of society which benefits the community as a whole

41. People with depression receiving counselling at CCC: • Lessen reliance on public services (such as crisis services), family doctor, emergency rooms, social services, and other potential costly services • An important benefit of counselling is decreased absenteeism and increased at work productivity.

42. Indicators • Lost productivity: 16-36 days per year • Medication costs • Family Doctor cost • Walk-in clinic cost

43. One year SROI $1.86 to $1 Three year SROI $7.85 to $1

47. “I had always dreamed of starting my own business, but I did not know where to begin—then I found Momentum.” - ABCs of Small Business

50. Sustainability Value • We are committed to helping our participants achieve sustainable livelihoods through the development of personal, social and financial assets. As an organization, we gauge our sustainable success holistically from the perspectives of fiscal, environmental and social impact.