Report on evaluating the podcast “The Political Butterfly Effect: Did Mr Blobby upend local politics in Lancashire?”
Social Value –Buying and Selling
key considerations
The role of Social Value in procurement,
contracts, and delivery
Agenda: • Social value over time
• Key influences in SV in 2023
• Social Value in procurement
• Social Value in Policy/ legislation
• Social Value in Delivery
• Social Value Measurement
• Cross sector working
• Interdependencies
• Takeaway task
• Further reading references
• Q&A
SOCIAL VALUE OVER TIME
Social Value TIMELINE How did we get here?
1800s
1900s
1970s
1980s
1990s
2023+ Philanthrocapitalism –
Please sir can I have some more?
The business of benevolence – large scale distribution of
wealth
Trust you – acknowledgement of the triple bottom line
(TBL)
Prove it – Data management,
exploration and analysis
Show me – Environmental and social accounting
Tell me – Contextualising the TBL – what are you specifically doing?
What are the 8 key SV influences in 2023?
Procurement practice
Social Value questions are asked and
answered, sometimes weighted in
scoring, sometimes assessed
qualitatively and sometimes
quantitatively.
Policy/ standards/ legislation
Central Government, Local Government,
Professional Bodies and Standards
organisations (ESG/ B Corp/ GRI) create
rules for Social Value
Measurement and reporting
Proof of performance is sometimes
required, measurement routes are
dictated or left open and reports made
accessible to varying degrees
Delivery
Commitments made in procurement are
sometimes ‘policed’ and delivered.
Where this does happen successfully,
‘best practice’ is created
Social Value ‘businesses’
Within the measurement market, profit
making businesses are on the rise,
particularly for measurement, offering
procurers an easy solution to scoring SV
responses
Cross over with Environmental and EDI
Biodiversity, circular economy and
Equality, Diversity and Inclusion all cross
over with SV, so how are we making
distinctions between these?
Wellbeing
Wellbeing has been brought to the
forefront of SV, digital inequalities have
been highlighted, and a focus back into
workplaces regarding ‘how’ a business is
run (governance), has occurred.
Modern Methods of Construction MMC influences are growing, as more
investors and contractors see the
programme, cost and environmental
impacts of off site manufacture. But
what does this do to jobs and local
spend?
SOCIAL VALUE IN PROCUREMENT
What social, economic and
environmental benefit will you deliver on
this project.
*Harder than it looks
THE SHORT AND SWEET Quantified offer (# and £); Qualified offer
(Method statement that requires A - Thematic
Approach; B - Delivery Capability; C - Continuous
Improvement Plan; D - Engagement and
Collaboration Plan). *Easy to lose the will to live
THE EPIC
Asks two very similar questions - possibly
using the terms added value/ social value/
social innovation
*Requires a TQ. Never guess.
THE REPEAT Set out how you and your supply chain will support Social
Value (in accordance with section 27 of the Specification),
demonstrating how your approach will ensure that you
embed sustainable solutions into the delivery of works and
services.
*the one that doesn't allow you to say what you want to
THE OBSCURE
Types of SV questions
Types of SV responses
Types of SV scorers
Happy Scorer Subject matter expert Scorer Grumpy scorer
SOCIAL VALUE IN POLICY/ STANDARDS
Things to know…
ü The Public Services (Social Value) act is 10 years old:
https://www.gov.uk/government/publications/social-value-act-information-and-resources/social-value-act-
information-and-resources
It was quite weak as a piece of legislation, but its existence did light a fire under the procurement and
commissioning teams in public sector. It created an environment of competition.
Things to know…
ü DCMS released a civil society strategy (2018)
https://www.gov.uk/government/publications/civil-society-strategy-building-a-future-that-works-for-everyone
This connected the public, private and social (or third) sector in a strategy that made sense. It influenced what we
understood social value to be across sectors.
Things to know…
üWe have a new PPN to supplement the act (September 2020) https://www.gov.uk/government/publications/procurement-policy-note-0620-taking- account-of-social-value-in-the-award-of-central-government-contracts
Central Government were recognised as not being able to demonstrate the application of the Act very well, and they have reacted to this via the new PPN.
This means any central government work you are involved in from this point forward will be asking for more SV commitments.
Hot off the press!
Standards
https://www.bcorporation.net/en-us/
https://www.globalreporting.org/
https://ecovadis.com/
SOCIAL VALUE IN DELIVERY
Resource Purpose Review frequency Where to use
Social Value policy The ‘what’
To have a 1-2 page statement about your business principles and approach to society, economy and environment. Can be a combo on inward looking CSR type narrative and more outward looking social value footprint content. The themes you use should be present in other complementary documents e.g. strategy/ delivery plans
Annually On website, appended in bids, on staff intranet
Social Value strategy The ‘how/ who’
To have a 4-5 page approach to set out ambitions you want to meet as a business for social value, focussed on the in house functions and how they contribute to the social value agenda (e.g. what do planners, project managers etc do as part of their role for SV and how does that help your ambitions). Themed the same as the policy, you can set some high level outcomes in this document
Every 6 months As above plus in regional offices, for project managers, for BD managers, appended to bids where needed
Social Value Delivery plans The ‘detailed how’
Specific ‘method statement’ for meeting each deliverable committed to a client. Details the partners you’ll work with, the process for getting from ‘a’ to ‘b’, milestones for achievement, how you’ll measure success, how you’ll manage risk.
For each project Within site teams, for client information on live projects
Social value tracker Excel spreadsheet with core business KPIs, Extra client KPIs mapped to TOMs where possible. Month on month performance, appended or hyperlinked evidences. Sent directly to client or used to feed client based reporting formats where needed. Can be linked to Power BI (part of Microsoft package) to create dashboards too
Quarterly by committee to ensure format is meeting delivery team and client needs.
Kept at project level adhering to GDPR rules,
Sent to client if no preferred format
Engagement decision making/ business case making process
Where individuals at delivery or strategic level are approached to complete additional or bespoke SV activities, these are raised to SV committee to be fed into decision making process
Ideally make a decision within 1-2 weeks of request. So must have a way to process this outside of committee meetings which are likely quarterly.
Make a committee member accountable for feeding requests into process so can be done quickly when needed
Quarterly – as requests are approved and delivered, or rejected, document the performance and adjust decision process accordingly
Within committee to decide on what extra engagement to agree to and document this for continuous improvement
Not communicated in detail to clients or stakeholders
SOCIAL VALUE MEASUREMENT
Outcomes not Outputs…
22
• What resources went in?
• Time/ money/ equipment
Input
• What numbers of activities/ interventions were achieved?
Output • Output details • E.g. 1 apprenticeship
= 1 employment, 1 qualification and 1 distance travelled
Outcome
• What happened as a result of the outcomes?
• People/ Planet/ Profit
Impact • What was the value of the impact (where applicable)
• The return on investment (ROI)
Value
Methodologies
Systems
Data sets Data Frameworks
Research based £ proxies and non £ measures
Ways to make sense of data setsBest practice
approaches so you don’t under or over claim impact
Tools that combine data sets, frameworks and methodologies into one useable space that creates bespoke reporting opportunities
Examples: • Data set - Unit Cost Database • Data Framework - National Themes Outcomes and Measures (TOMs) • Methodologies – Social Return on Investment (SROI) • Systems – Social Value Portal
24
Return on investment/ social value in £...the rationale and risk areas
Two types of quantification:
A. Economic/ Fiscal = Wages, Tax, NI, spend, Benefit savings, service use savings
B. Social/ Wellbeing = happy, content, secure, included, inspired, confident people
Objective
Subjective
Measurement trends UK:
The National Social Value Task Force developed the National Themes, Outcomes and Measures (TOMs) to be used as a framework to capture and quantify SV in a consistent way across sectors. It has gained significant traction in public sector, for procurement and delivery. Social Value Portal, the branded software that helped develop this, has also got a significant market share.
In infrastructure, Network Rail have developed the CSIF- Common Social Impact Framework and the new Social Value Tool for Rail, which is being rolled out on their projects. Simetrica developed the CSIF, Impact Reporting worked on the operational delivery of this, to capture ‘on the ground’ data. The new tool for rail is underpinned by Social Profit Calculator (now rebranded as Loop)
A new Social Value Model has been created to support the release of PPN 06/20, outlining 5 themes and the types of outcomes being sought by Central Government Procurement teams
Tools that support measurement and reporting aligned to B Corp, ESG and GRI will soon begin to surface.
Measurement trends International/ Global:
The Sustainable Development Goals/ Global Goals are growing in use, demonstrated by:
• A manifest in and from Central UK Government for Local Authority to demonstrate performance against these • Use of SDGs by CHINA ALLIANCE OF SOCIAL VALUE INVESTMENT (CASVI)
https://thegiin.org/research/publication/discovering-social-value-99-in-china-a-social-value-assessment-report-on- a-share-listed-companies-(2018)
ESG reporting has trended out of the finance and investment sector and into more businesses. https://docs.wbcsd.org/2019/02/Corporate_and_sustainability_reporting_trends_in_Japan.pdf
Social Value bank moves to Australia: https://asvb.com.au/
https://www.socialvalueint.org/blog
Why social value needs a cross sector approach…
What helps to make sure social value is delivered
well?
ü RESOURCE
ü ASPIRATION
ü RESPONSIBILITY
• Resource: Low
• Aspiration: Medium
• Responsibility: High
*need more resource
PUBLIC SECTOR PRIVATE SECTOR
• Resource: Low
• Aspiration: High
• Responsibility: Low
*need more resource and responsibility
THIRD SECTOR
• Resource: High
• Aspiration: Low
• Responsibility: Low
*need more responsibility and aspiration
ü Resource: High (Private Sector)
ü Aspiration: High (Third Sector)
ü Responsibility: High (Public Sector)
COMBINED
INTERDEPENDENCIES
Sometimes it is hard to decide if something is a
Social Value outcome, an equality outcome, a
wellbeing outcome or a biodiversity net gain
outcome…..
Some examples
Inclusive Employment
Accessible green space
Green site set up
SV
WB
BNG
EDI
TAKE AWAY TASK
Take away task – to be returned in April
Modern Methods of Construction vs traditional solutions…
Using Modern Methods of Construction can affect the social
value, Equality, Diversity and Inclusion (EDI), Environmental (e.g.
biodiversity) and wellbeing outcomes of a project.
Name and explain 6 main differences between a traditionally
built project and a project using MMC.
Try to identify 3 benefits (positive things about MMC) and 3
disbenefits (negative things about MMC).
FURTHER READING…
35https://www.ukgbc.or g/wp- content/uploads/202 0/04/Delivering- Social-Value- Measurement.pdf
https://www.ukgbc.or g/wp- content/uploads/201 8/03/Social-Value.pdf
https://www.ukgbc.org/ wp- content/uploads/2021/ 02/Framework-for- Defining-Social- Value.pdf
36https://resources.ecov adis.com/buyers/susta inability-clauses- commercial-contracts- key-corporate- responsibility
https://www.icaew.co m/technical/audit- and-assurance/audit- insights/audit- insights-industry- sectors/audit-insights- construction
https://www.london. gov.uk/sites/default/fi les/lsdc_- _qol_2017_evidence_ report.pdf
https://www.isurv.com/ downloads/download/1 992/developing_an_app roach_to_sustainable_r eturn_on_investment_i n_the_uk_brazil_and_t he_usa_rics
Reading list books:
• The Locust and the Bee – Geoff Mulgan
• Higher Ambition – Michael Beer/ Flemming Norrgren
• The Entrepreneurial state/ The Value of Everything- Mariana Mazucato
• Social Impact Assessment – C J Barrow
• Responsible Corporate Strategy in Construction and Engineering – Martin Loosemore & Florence Phua
• The Age of Responsibility - Wayne Visser
• All In – David Grayson, Chris Coulter and Mark Lee
Websites/ organisations:
• Social Value UK and International
• Social Enterprise UK
• Social Value on gov.uk
• DCMS – Civil society strategy
• PPN06/20 on Gov.uk
• Social Value Portal – National TOMs
2021/2022
• Institute of Civil Engineers – Project 13
• Green Building Council
• World Business Council for Sustainable
Development (WBCSD)
Q&A WHAT'S ON YOUR MIND?
Extra bits! Following on from the Q&A
Social Value Triangle
Pure SV
Social Value and Equality, Diversity and Inclusion crossover
Multiple crossovers and interdependencies