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making the case

Picture CC: Some rights reserved by Darnok. making the case. “In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.” Ezra Pound. What we will cover . About Creative Councils Why a business case? Tools for making the case

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making the case

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  1. Picture CC: Some rights reserved byDarnok making the case

  2. “In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.” Ezra Pound

  3. What we will cover • About Creative Councils • Why a business case? • Tools for making the case • Existing evidence • Practical steps • Using results • Q&A

  4. Creative Councils: • NESTA/LGA Challenge Prize supporting 17 Councils • Focus on radical innovations to solve problems • Tackling issues such as ageing society, sustainable growth and increasing demand on services • 2 year programme • Tools and lessons will be shared with other councils

  5. Community Engagement Webinars • Part of Creative Councils support • Online webinars focussing on different aspects of local community engagement • Every two weeks on a Friday Lunchtime • Runs February to April • Free and open to anyone to attend • Recordings of past webinars will be posted online

  6. About • Registered Charity (nr. 1130568) • Focus: Public and stakeholder engagement • Works with: Central & local government. Health organisations, NGOs and International Organisations • www.involve.org.uk

  7. "I am extremely uncomfortable with the idea that someone will decide whether or not 'participation' is 'economically viable'. The question should be whether there is scope for the participant to change things. Not will their participation be 'cost effective'" Respondent to Involve 2005

  8. Making the case • It’s a good thing • It’s a democratic right • Improves wellbeing • Inclusion of marginalised groups • Empowerment of marginalised groups

  9. Why articulate the business case? • Dealing with cuts agenda • Accountability for tax payer money • Clarifying for internal audience • Clarifying for external audience • Achieving long term savings

  10. “We really have no idea how much we spend on participation, it tends to be cobbled together from different budgets at the end of the financial year". Local Authority Chief Executive

  11. Why do we know so little? • New field • Intangible benefits • Distributed benefits • Costs hard to unpick • Unclear what is cost and what is benefit • Fear/hiding costs

  12. Economic Evaluation • Cost-benefit analysis • Cost-effectiveness analysis • Cost-minimisation analysis • Cost-consequences analysis • Social Return On Investment

  13. Evaluation vs Business case Evaluation Business case Practical Incomplete As much time as you have Good enough • Academic • Complete • Time consuming • Truth

  14. Public Goods • non-rival (one person's use of the good does not reduce some one else's use of it) and • non-excludable (it is very difficult to exclude anyone from gaining benefits from the good).

  15. Other concepts • 'Deadweight' - used to describe what would have happened anyway. • 'Additionality' - the economic effects after the deadweight has been discounted. • 'Displacement' - productivity benefits that are offset by reductions elsewhere.

  16. In short... Understanding can be greatly enhanced but evidence will always be incomplete.

  17. Questions?

  18. “Nowadays people know the price of everything and the value of nothing.” Oscar Wilde

  19. Costs and Benefits of Engagement Picture CC: Some rights reserved By: clarita

  20. Costs • Programme costs • Non-programme costs • Participant costs

  21. Benefits • Improved governance • Greater Social Cohesion • Quality of Services/Projects • Capacity Building/Learning

  22. Specific Benefits • Innovation and creativity • Avoiding conflict • Access to new resources • Continued development / maintenance • Better quality outcomes • Information and expertise • Increased public awareness and understanding • Sharing responsibility • Increased use • Staff morale

  23. Non-monetary benefits • Active citizenship • Stronger communities • New organisations and structures • Behaviour change • Trust and social capital

  24. Non-monetary benefits • Revealed preference • Stated preference • Willingness to pay • Willingness to accept • Benefits transfer

  25. Distributional impacts Total Place: • 200 to 300 families described as ‘chaotic’ each cost public services in the Croydon around £250,000 each year • £50,000,000

  26. Risks • Financial risks • Performance risks • Reputational risks • Opportunity risks

  27. Benefits -resilient community networks

  28. Benefits - Increase trust

  29. Benefits - Quality of services

  30. Benefits - Take difficult decisions

  31. Benefits –good community relations

  32. Replacement costs

  33. Tools Picture CC: Some rights reserved By: ardelfin

  34. Logframe

  35. Logframe

  36. Logframe -example

  37. Comparators • Do nothing • Status Quo • Alternative engagement methods • Alternative means of achieving the benefits

  38. Example -English Nature Humber Estuary Designation • English Nature engagement to inform legal protection for wildlife in the Humber Estuary. • Previous designation plans met with hostility and were withdrawn. • Previous conflict led to legal fees of £75,000.

  39. Cost of conflict Conflict can be extremely expensive: DEFRA and the Environment Agency (2005) estimate that around 5% of all permit application took in excess of 500 hours work to process and 1% took over 1,000 hours.

  40. Humber: Costs and benefits Costs of engagement Benefits of engagement Legal Costs saved: £75,000 Total: £75,000 Value of engagement: £7,830 Staff cost: £50,000 Displays and PR: £8,000 Admin: £5,000 Postage: £2,000 Travel: £1,170 Press briefings: £1,000 Total: £67,170

  41. “The only man who behaves sensibly is my tailor; he takes my measurements anew every time he sees me, while all the rest go on with their old measurements and expect me to fit them.” George Bernard Shaw

  42. Using the Involve Toolkit

  43. Heartland Community Voice (Portsmouth) • Bin fires in area: • 154 in 2006 • 135 in 2008. • Each case of criminal damage estimated at £856 around 4.29 crimes remain unreported for every reported case. • Potential saving of £69,772.56 per year • Also non monetary benefits: increased volunteering, levels of satisfaction

  44. Involve toolkit: • Costs that can be given a monetary value • Benefits that can be given a monetary value • Costs that cannot be expressed in monetary terms • Benefits that cannot be expressed in monetary terms

  45. Stage 1 - Scope the business case • Decide how you will use the toolkit • Decide who your audiences are • Decide if monetary valuation is appropriate for you

  46. Stage 2 –Define focus and purpose • Decide the focus for the business case • Clarify the intended purpose and outcomes • Consider possible comparator areas/ projects

  47. Stage 3 -Decide what to measure • Identify what can be given a money value and what can't • Identify who you need help from to obtain the data • Identify where proxies might be appropriate

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