Social Return on Investment Analysis - Measuring the Impact of Social Investment

Preface

Contents

About the Authors

List of Figures

List of Tables

1 Introduction: What Is an SROI Analysis? How Does It Relate to Other Forms of Analysis? Why Is Impact Key?

1.1 Impact Above Everything Else? The Trend Towards Impact Measurement and Analysis

1.1.1 What Do We Want to Contribute With This Book? Overview of the Approach

1.1.2 How Should You Read the Book?

1.2 How Does SROI Analysis Compare to Other Methods of Impact Measurement and Analysis? A Comprehensive Approach

1.2.1 SROI Analysis in a Nutshell: A Summary

1.2.1.1 Origin

1.2.1.2 General Approach

1.2.2 Social Impact Measurement vs. Social Impact Analysis: Where Should SROI Be Positioned?

1.2.3 How is SROI Analysis Distinguished from Other Methods of (Economic) Impact Analysis or Social Impact Measurement?

1.2.3.1 Economic Impact Analyses in the Tradition of Evaluation

1.2.3.2 Social Impact Reporting, Social Accounting and Sustainability Rating Approaches—The Reporting Side

1.2.3.3 Impact Measurement and Social Impact in the Tradition of Development Aid and of Social and Environmental Impact Assessment

1.2.3.4 Other Impact Analysis and Measurement Approaches

1.2.4 How Is SROI Analysis Conceptually Situated as Relates to Other Methods? A Mental and Analytical Framework with a Social Science Focus

1.3 Is There Only One Form of SROI Analysis? Proposed Typology

1.4 SROI: The Way to Measure Impact

References

2 What Interests Do Organisations Pursue with an Impact Analysis? A Guide

2.1 Introduction: Why Impact Measurement?

2.2 How Does Interest in an SROI Analysis Emerge?

2.2.1 Communication to the Outside

2.2.1.1 Legitimacy

2.2.1.2 Fund-Raising

2.2.2 The Trend Towards Impact Measurement

2.2.2.1 The Endeavour to Be a Pioneer, or the Need to Keep Up

2.2.2.2 Political Targets and Political Support

2.2.3 The Strategic Interests of an Organisation

2.2.3.1 What Do Organisations Expect of SROI Analyses?

2.2.3.2 The Business Feasibility Perspective

2.2.3.3 Non-profit Reservations

2.3 The Joint Learning Process

2.4 What Application of the SROI Methodology Is Intended?

2.4.1 Prospective Estimation of the Potential for Social Value Added

2.4.2 Formative Evaluation of Success or Prospects for Success

2.4.3 Summative Analysis of the Social Value Added Actually Achieved

2.5 Who Should Perform the Analysis?

2.6 Conclusion

References

3 SROI in the Context of Policy and Governance Developments

3.1 Social Investment and Impact: New Policy Styles, Governance Tools and Their Implications

3.1.1 From Welfare to Social Investment

3.1.2 Challenges for Impact Measurement and Society

3.2 SROI and European Policy Developments

3.2.1 Impact Measurement Between Specific Policy Initiatives and Market Building

3.2.2 Impact Measurement and Standardisation: Process Standards

3.3 Impact Measurement and Public Policy: Conclusion

References

4 How Are Impacts Identified? The Impact Model

4.1 Impact Model—Where Does It Come from and for What Purpose? The Introduction

4.1.1 For What Purpose Is the Impact Model Necessary?

4.1.2 Where Does the Impact Model Come from?

4.2 Impact Model: What Is It?

4.2.1 Conditions: Context, Target Group Specifics, Inputs (Resources), Structure

4.2.2 Plan: Concept

4.2.3 Implementation: Process/Activities

4.2.4 Outputs

4.2.5 Outcome: Impacts

4.3 What Levels of Impact Measurement Can Be Distinguished?

4.4 What Does Deadweight Mean?

4.5 Theory of Change or Impact Model? What Is the Difference?

4.6 What Role Do the Stakeholders Play?

4.7 Who Are the Relevant Stakeholders and How Are Their Impacts Identified?

4.8 Summary

References

5 How Can Impact Dimensions Be Operationalised?

5.1 What Do Impact Models Achieve for the Goals of Projects and Organisations?

5.1.1 Conceptualising and Modelling Impact Through Stakeholder Dialogues

5.1.2 Selecting Dimensions, Making Decisions and Proving Impact

5.2 What Basic Building Blocks Do All Impact Models Have in Common?

5.2.1 Functions and Roles of Non-profit and Social Purpose Organisations

5.2.2 The Special Character of the Political and Environmental Dimension

5.2.3 Physiological and Psychological Effects

5.3 The Complexity of Returns: Differentiating the Levels of Impact

5.3.1 The Bull’s Eye of System Innovation

5.3.2 Levels of Impact: Enriching and Relating the Functional Dimensions

5.3.3 Priorities and “Nice to Have’s”

5.4 An Integrated “Impact Construction Kit” and Paths to Comparability

5.4.1 Currencies and “Exchange Rates” of Different Social Interventions

5.4.2 Benchmarks Beyond Money and Methodological Challenges

5.5 Where Are the Limits of SROI?

References

6 How Can Impact Be Gathered? Study Design and Empirical Execution

6.1 Comprehending Impact: What and How Do We Want to Study?

6.1.1 To What Level of Breadth and Depth Should Impact Be Considered?

6.1.2 What Is the Focus of the Study?

6.1.3 To What Extent Must the Analysis Satisfy Scientific Criteria (Rigour Vs. Relevance)?

6.2 How Do I Proceed Specifically? Various Research Approaches

6.2.1 Overview of Various Research Paradigms, Designs and Methods

6.2.2 Quantitative Paradigm: Experimental Designs

6.2.2.1 Experimental Design

6.2.2.2 Quasi-experimental Design

6.2.3 Quantitative Paradigm: Non-experimental Designs

6.2.3.1 Longitudinal Studies

6.2.3.2 Cohort Design

6.2.3.3 Cross-Sectional Studies

6.2.4 Quantitative Empirical Methods

6.2.4.1 Questionnaire Construction and Wording of Questions

6.2.4.2 Conducting the Survey

6.2.4.3 Data Analysis and Interpretation of Data

6.2.5 Qualitative Paradigm

6.2.6 Qualitative Empirical Methods

6.2.6.1 Data Collection

6.2.6.2 Data Analysis

6.2.7 Analysis Supported by Secondary Data

6.2.7.1 Analysis of Secondary Material: What Are Common Secondary Materials?

6.2.7.2 Data-Supported Estimate on the Basis of Secondary Material

6.3 How Do You Select a Study Design? A Guide

6.3.1 Clarifying Basic Questions

6.3.2 The SROI Options Matrix as a Decision Aid

6.3.3 Taking Account of the Stakeholders’ Specific Characteristics and Possibilities to Access the Field

6.3.4 Reviewing Whether It Is Possible to Use an Evidence-Based Approach

6.4 Summary

References

7 Can the Presumed Impacts Be Proven? Analysis from a Quantitative Point of View

7.1 How Is Causality Dealt with? The (Correct) Attribution of Impacts

7.2 What Possibilities and Limits Do the Basic Methods Have in the Research Process?

7.2.1 Non-experimental Design (Longitudinal and Cross-Sectional)

7.2.2 Quasi-Experimental Design (Control-Group Comparisons)

7.2.3 Experimental Design (Randomised Controlled Trials)

7.2.4 Design-Independent Limits on Generalisability

7.3 Which Distortions in Data Collection Demand Attention?

7.4 How Are Results Quantified? Impact Dimensions, Diversity of Methods and Variables

7.5 What Is the Explanatory Power of SROI Dimensions?

7.6 Well-being Indexes as an Alternative Quantitative Portrayal of Societal or Local Effects?

7.7 What Are the Limits of Quantitative Methods?

References

8 How Can Impacts Be Monetised?

8.1 Why Should Impacts Be Monetised?

8.2 Isn’t It Sufficient to Use Market Prices?

8.3 Can Valuation Take Place Without Units of Money? Alternative Valuation Methods

8.4 How Can We Monetise? Methods for Monetising Non-market Goods

8.4.1 Cost-Based Monetisation

8.4.1.1 Damage Costs

8.4.1.2 Avoided Damages

8.4.1.3 Restoration Costs

8.4.1.4 Replacement Costs

8.4.1.5 Abatement Costs

8.4.1.6 Evasion Costs

8.4.1.7 Summarising Evaluation of the Cost-Based Methods of Monetisation

8.4.2 Monetisation on the Basis of Stated Preference Approaches

8.4.2.1 Contingent Valuation Method: Willingness to Pay and/or Willingness to Accept

8.4.2.2 Decompositional Approaches of Preference Measurement (Choice Modelling/Conjoint Analysis)

8.4.3 Monetisation on the Basis of Revealed Preference Approaches

8.4.3.1 Using Direct Market Prices

8.4.3.2 Change in Factor Income

8.4.3.3 Travel Costs Method

8.4.3.4 Hedonic Pricing

8.4.4 Summarising Assessment of the Preference-Based Methods of Monetisation

8.4.5 Which Approaches Exist Beyond Costs and Preferences?

8.4.5.1 Valuations on the Basis of Existing Studies

8.4.5.2 Assessment Approaches

8.4.5.3 Inclusion in the Production Function

8.5 Are the Right Things Being Monetised in the First Place? Caution When Monetising Services

8.6 When Is Which Monetisation Method Suitable?

8.7 Conclusion with Respect to SROI Analysis and Practical Applicability in Projects

References

9 Which Purposes Can Social Impact Analyses Support? An Overview of Applications for Results of SROI Analyses

9.1 Which Options Exist for Using SROI Results? An Overview

9.1.1 Communication (Target Group: The Public)

9.1.2 Seeking Investors/Fund-Raising (Target Group: Funders)

9.1.3 Strategy and Organisational Development (Target Group: The Organisation Itself)

9.1.4 Strategic Cooperation and Scaling (Target Group: Sector/Industry/Field of Impact)

9.1.5 Evidence-Based and Impact-Oriented Controlling (Target Group: The Organisation Itself)

9.2 How Are Impact Analyses Linked to Strategy Development and Organisational Development?

9.2.1 Classifying Strategic Goals

9.2.2 SROI Analyses for Social Impact Investing or Impact Bond Agreements

9.2.3 Organisational Development as a Necessary Component

9.3 How Can Impact Measurement Be Used for Political Advocacy?

9.3.1 How Does Successful Advocacy Work?

9.3.2 The Contribution of Impact Measurement

9.4 How Can Impact Measurement Be Used as a Controlling Tool? A Comprehensive Impact-Oriented Management Model

9.5 Summary

References

10 How Have SROI Analyses Been Performed in Practice? Four Selected Case Studies

10.1 Introduction

10.2 Case Study: SROI Analysis of Mobile Care and Support Services in Vienna

10.2.1 Introduction

10.2.2 Impact Chain and Identification of Impacts

10.2.3 Quantification of Impacts

10.2.4 Monetising Impact

10.2.5 Result of the Analysis

10.3 Case Study: SROI Analysis of Multigeneration Co-housing

10.3.1 Impact Model

10.3.2 Identifying Impacts

10.3.3 Quantifying Impacts

10.3.4 Monetising Impacts

10.3.5 Results of the Analysis

10.4 Case Study: SROI Analysis of a Women in Development Programme in Ethiopia

10.4.1 Introduction

10.4.2 Impact Model and Identification of Outcomes

10.4.3 Quantification of Outcomes

10.4.4 Monetisation of Outcomes

10.4.5 Results of the Analysis

10.5 Case Study: SROI Analysis of the Norwegian Offshore & Drilling Engineering Network (NODE)

10.5.1 Introduction

10.5.2 Impact Model

10.5.3 Identification of Impact

10.5.4 Quantifying Impact

10.5.5 Monetising Impact

10.5.6 Results of the Analysis

10.6 Summary

References

11 What Does an Organisation Need to Conduct a Sound SROI Analysis?

11.1 Introduction: From the Perspective of the Organisation

11.2 Awareness and Involvement of Stakeholders

11.3 Gathering Data

11.4 Organisational Capacity

11.5 Willingness to Participate in Individual/Organisational Learning

11.6 Understanding the Analysis

11.7 Practical Tips

11.8 Summary

References

12 SROI Revisited: Summary and Outlook

12.1 What Have We Learned? A Review

12.1.1 The Book Shows the Various Facets of the Analytical Path

12.1.2 An SROI Analysis Is Rooted in Social Science

12.1.3 SROI Analysis Always Includes a Strategic Dimension

12.2 What Remains to Be Done? The Prospects

References

Index