I. Quality and Impact

Quality and impact

Background

Partners

Outputs

Piloting

Rollout And Communication

A Programme Of Learning From Abroad

Background  [top]

It is increasingly being recognised that measuring, proving and improving the quality and impact of social enterprises is crucial for the sector’s future. It is striking, for example, that one of the three aims of the Social Enterprise Unit strategy is to “establish the value of social enterprises.” Perhaps this is not surprising, for the key to making the sector credible is for social enterprises to prove how they add value. Doing this will provide social enterprises with access to more work, more finance and more support, encouraging an upward spiral of success. Measuring and reporting on impacts also allows social enterprises to make themselves accountable to their stakeholders. Another crucial aspect of this agenda is that social enterprises need to continuously improve their performance. It is only possible for them to do this by finding out what works and adapting their activities and processes in this light.

At present, many social enterprises see impact measurement as a burden, rather than a source of competitive advantage or a useful management tool. Understanding of measurement tools appears limited across the sector, and little work has been done at a sector wide level to see how existing tools work for social enterprises. Presently a number of tools already exist but are not necessarily accessible. There are, however, also gaps in tools which can measure certain kinds of impacts and prove the “value added” of social enterprises.

The SEP project is the leading UK programme in the field of impact measurement for social enterprise. For example, it is documented in the Social Enterprise Unit strategy and will help deliver part of the third limb of its strategy which is to prove the value of the sector. The project is led by New Economics Foundation (NEF), a leading think tank with many years of experience in social impact measurement. NEF pioneered social auditing in the UK, helped create stakeholder defined community indicators, put together a leading handbook on measuring social capital (“Prove It”) and is doing innovative work on measuring social returns on investment, and measuring the local economic impact of an organisation.

Partners  [top]

The Quality and Impact Project will bring together for the first time a number of key players in this area. As well as the partners brought together in the SEP, the project is working with the Social Audit Network, a body of practitioners who practise social auditing and impact measurement, particularly with community organisations. John Pearce, who leads the Network, sits on the steering group for this project. The project has a broad advisory group consisting of social enterprises and experts such as Rob Paton from Open University, Jeremy Nicholls from Cat’s Pyjamas, John Sabapathy from Accountability and Susan Wainwright from NCVO.

Outputs  [top]

The project will run until 15th May 2005, and will have a series of very practical outputs. A toolkit will be created and be accessible both online and through hard copy. This will guide social enterprises through the maze of possible tools they could use, and match them up with the methodologies which are best for what they are seeking to achieve. A series of relevant resources to support the use of tools will be created, including case studies. The specific support resources the project creates will be defined more clearly in light of the findings of the needs analysis.

Initially, desk research will be done to identify which tools already exist to improve quality and to measure impact. We will draw upon experience from the voluntary, the corporate and SME sectors. To understand the needs of the social enterprise sector, an initial questionnaire has been sent to a wide range of social enterprises and results will be analysed to see what tools are being used, how effective they are and where the gaps might be. Follow up interviews will then be conducted with organisations from the sector. A highly successful event was held in January 2003 in Liverpool with approximately fifty participants, considering the needs of the sector and the available tools.

Existing tools will be adapted in the light of the needs analysis, and a number of new tools will be created to fill any gaps. Planned tools include “Ethical Explorer” - an online stakeholder engagement tool, a Healthcheck initially aimed at Development Trusts and Key Performance Indicators for the co-operative sector which are likely to have application to other social enterprises. It is also possible that new and innovative indicators will emerge from the project, for example in the area of health.

Piloting  [top]

The project will seek to capture the experience of as many social enterprises using impact and quality tools as possible. It will encourage them to act as “mini pilots” for the project and use tools and evaluate them on its behalf. Larger scale pilots will also be conducted through using existing structures, such as work being conducted by members of the Social Audit Network. Links will also be made with Equal regional partnerships which wish to do work in this area, and piloting may be done with them. The project will provide training and support to these pilots. A series of pilots have already been conducted to develop and test a methodology for a measuring the “Social Return on Investment”.

Case studies will be created from the pilots. These will focus not only upon the tools themselves, but also the context of their use, and their effectiveness in, for example, helping social enterprises to win work, particularly from local authorities. The project is assisting the Social Enterprise Unit in considering how impact measurement fits into the procurement process and will input into the Social Enterprise Unit’s procurement toolkit.

Rollout And Communication  [top]

The project will communicate the value of quality and impact tools to the entire sector, not just those that are already interested. It will do this through writing articles in the social enterprise press (for example, a proposed supplement in Social Enterprise Magazine) and through holding a series of high profile events. The project will work in tandem with other organisations such as Cat’s Pyjamas and Social Audit Network to maximise the impact of all current UK initiatives in this area. For example the Partnership is supporting a conference to be held in the spring by the Cat’s Pyjamas and Social Enterprise Magazine.

Rollout of the tools will be an ongoing process. A website and hardcopy toolkit will be created in the second year of the project. These will be updated as the project continues. There will be a number of events, workshops and training sessions to rollout the tools.

A Programme Of Learning From Abroad  [top]

The SEP is also a member of two European partnerships of similar organisations, and leads a working group on quality and impact across both partnerships. European partners will share their experience of quality and impact tools. In particular it is expected that partnership with BEST3S – a German partnership with much experience in this area - will prove to be fruitful. A transnational newsgroup on quality and impact tools will be facilitated by this project. A high profile European conference on quality and impact will be held in London in spring 2004. There may also be an exchange visit to Berlin for UK social enterprises to learn more about quality and impact work in Germany.