This presentation explains how Leicestershire County Council will look to find and understand social value in commissioning.

1. Social Value and Local
Commissioning
Joelle Bradly
Research and Insight Team
Chief Executive’s Department
Leicestershire County Council

2. Why do we want to understand
social value?
• Less money
• Less emphasis on top down performance
indicators
• Public Services (Social Value) Act
• Localism Act and Big Society – bottom up
involving people
• Early intervention – save money later
• Transparent - more accountable to residents

3. Measuring social value
1. What outcomes should we be measuring?
2. How do we evidence outcomes?
3. How do we apply a value to outcomes?
4. How do we put social value into context?
5. How will it be considered in
commissioning
6. How can we create maximum social
value?

4. 1. What outcomes should we be
measuring?
Who is affected?
What changes for them?
• Intended and Unintended outcomes
• Positive and Negative outcomes
• Financial / social / environment

5. Theory of change
Inputs>> outputs>>outcomes
Chain of events
Short term outcomes>> Medium term
outcomes >> Long term outcomes
Test for materiality-Are the outcomes all significant and relevant?

6. 2. How do we evidence
outcomes?
How do you know a change has happened?
Choosing an indicator
New or existing data
Test for materiality-Are the quantities significant enough to include?

7. 3. How do we value outcomes?
Use financial proxies to estimate the value of
non-market goods to different stakeholders
•Stated preference
•Revealed preference
http://www.wikivois.org
Test for materiality-Are the values significant enough to include?

8. 4. How do we put social value
into context?
Who else do you work with to achieve
outcomes?
How long do outcomes last for?
Do they drop off over time?
Are outcomes being displaced?
What would have happened anyway?
Test for materiality-Is the impact that results from the activity still significant?
How does the value compare to the investment?

9. 7 principles of
Social Return on Investment:
• Involve stakeholders
• Understand what changes
• Value the things that matter
• Only include what is material
• Do not over-claim
• Be transparent
• Verify the result

10. There are six stages of SROI
3.
Evidencing
1.Establishing
scope and 2. Mapping outcomes
identifying outcomes and giving
key them a
stakeholders value
4.
6.Reporting, 5. Establishing
using and Calculating impact
embedding the SROI

11. SROI Examples
For each £1 invested in CSSP supporting Connexions Leicester Shire to deliver
sexual health services between approximately £7 and £9 is returned in social
value
Value to different stakeholder groups
Primary benefits
o Reduction in teenage pregnancy for young people (variable)
Secondary Benefits
o Young people make more informed proactive choices
o Reduced cost to public services of a teenage pregnancy (variable)
o Better support for young people taking risks reduces the number of
disengaged young people
Tertiary benefits
o Improved access to emotional support for young people

12. For each £1 invested in Warning Zone mentoring between £3 and £4 is returned
in social value
Value to different stakeholder groups
Value Stakeholder
£23,453 Children
£7,112 Police / Districts
£358 Parents
Inputs = CS funding (£3,000), volunteers, schools
Primary benefits of Warning Zone in Harborough:
-Young people are aware of risks and able to make informed decisions regarding their
own safety
Secondary Benefits:
-Reduced cost of ASB

13. For each £1 invested in Twenty Twenty mentoring approximately £3 is returned in
social value
Value to different stakeholder groups
Value Stakeholder
£193,606 Young People at risk
£22,351 Police
£16,704 DWP
£10,753 Mentors
£5,387 Parents
Inputs = Funding (£45,000), volunteers
Primary benefits of Twenty Twenty Mentoring:
- Young people are able to improve their relationships with family and friends
- Young people are independently able to deal with difficult situations and stay strong
Secondary Benefits:
-Reduced cost of ASB
-Reduced cost of NEET young people

14. 5. How can social value be
considered in Commissioning?
Understanding the needs and aspirations
of a specific population
•What is the social and financial value or
meeting needs?
•What are their current assets?
•How do services currently or potentially
contribute to meeting their needs?

15. Key questions to help measure
your social value
Who do you have an impact on?
What changes for them?
How much do they value this change?
How long does change last?
Who else do you work with to achieve change?
What would happen anyway?

16. 6. How can you create maximum
social value?
• Involve stakeholders in understanding your
theory of change
• Manage known and potential negative
impacts
• Understand enablers and preventers of
change
• Focus on outcomes that create the most value