"Health free at the point of use" means health funded out of the public purse - but it doesn't mean public-owned providers. People are still suspicious about 'for profit' organisations funded out of tax-payers' money. "Health care is a calling, not a way to make a profit" seems to be the attitude, and Social Enterprises have been created for exactly this purpose. In June 2007 I helped to set up Urgent Care Ltd, a social enterprise to provide urgent and unscheduled care in London and surrounding areas. It has been very successful and I've learnt a lot about gaining funding, competition, and the principles behind and different forms of social enterprise.
You can't put a price on "peace of mind". And yet, the UK has always valued our green spaces - our parks, our countryside, our gardens (see National Ecosystem Assessment reported on BBC web site).
I've quoted the Einstein comment"not everything that counts can be counted, and not everything that can be counted, counts" many times on these pages, and I stand by that. But in this age of austerity, we need to set aside money for the things in life that are valuable, and to set aside money, we need to put a value on them.
It's no easy task to put a value on the things that matter. You can get 500 environmental economists to write 2000 pages (electronic pages, and I suppose you should print on recycled paper if you print at all) as the National Ecosystem Assessment did. But most people need a shortcut.
This is where the argument begins. A common reporting mechanism for value is Social Accountability Audit (Social Audit, or SAA). This typically forms part of an organisation's Annual Report, and demonstrates the value that they add to their community. It describes the benefits that the organisation brings, but does not attempt to put a value on it. Whilst it takes the views of the stakeholders (beneficiaries and others) into account, it is essentially prepared by the organisation.
The method I prefer is Social Return on Investment (SROI). This starts from the perspective of the stakeholders (beneficiaries and others) and asks them what the benefits are. It then attempts to put a financial equivalence value on to the benefits. The financial equivalence is worked out using published results, and more usually from secondary impacts (eg if I tackle racist behaviour, can I make savings on policing costs, health costs, security of public buildings, and can I generate more economic growth). Of course it's impossible to put a value on everything, and I'm quite clear in my SROI reports that the value calculated does not represent the whole value, only that part of the value that we could all agree on a figure.
SROI is criticised for being subjective. I don't think so. Certainly my benefits analyses over the last 10 years have stood the test of time - showing the value achieved after 5 years in line with the calculated value expected (how many "not for profit" projects can report that?). With a robust approach, good triangulation (ask three organisations and get them to criticise each other's figures until they come to a consensus, or if they can't then go for 2 out of 3), and a readiness to just say "can't agree, put zero value".
I have a theory. Many charities and social enterprises simply lack confidence in the value they bring. They're worried that a robust evaluation will find they aren't worth the money they cost. Well, that's a challenge. If you aren't worth the money you cost - why go on doing it? I'll talk to you about this!
Mental health, or the empowering or disempowering of people in their homes; with their family, friends and co-workers; in their communities; and in the country they live in could be one of the biggest causes of ill health. It's said that the constant exposure to air-brushed beauties in magazines and impossibly perfect people in our soap opera "true to life" stories on Television causes people to be dissatisfied with their partners and dissatisfied with their lives.
For many (especially the youth who have the energy to take action), this leads to graffiti and anti-social behaviour (trying to create and publicise an identity), and could result in a custodial sentence leading to a spiral of fighting back against authority. For the less energetic, it can lead to despair, with the accompanying physical ailments (I feel bad at work so I get a bad back which prevents me going to work so I feel bad at home because I'm not at work so I get depressed so I really can't go to work, and so on).
Black and Minority Ethnic groups (BME) have an added burden - where they've come to Britain in search of a better life they don't have the established support networks, and where they have been here for generations they may have suffered generations of abuse targetted solely for the colour of their skin/ their religious practice/ all sorts of other reasons.
The government has set targets for BME inclusion within the 2007 National Indicators, and many local authorities are waking up to this. A city near me has already tried to set up a BME Community Organisations Network for the city, but failed when it appeared to focus too heavily on the local authority agenda and seemed to the community organisations not to listen.
BECON (part of the new steering group) invited me to advise on the structure of workshops which would engage local BME community organisations, and would allow the community organisations themselves to shape the new network whilst at the same time ensuring that the local authority was prepared to fund it.
We started with a report on the needs, established a business case for a rigorous scope of existing provision, and are currently (Sept 2008) refining the shape of the network using lessons learnt from other city networks in the region. It's an exciting proposition, and one I'm very honoured to play a part in.
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Crouching Tiger Conference
North East Equalities Coalition is a group of voluntary and community sector (VCS or CVS) organisations with an interest in equality and diversity issues in the North East.
We represent seven diversity groups: race, disability & deaf, religion & belief, gender, children & young people, older age, and lesbian/gay/bisexual & transgender; and we support organisations, networks, communities and individuals to develop, become stronger and raise our voices to fight discrimination.
April 20, 2010 10am - 1:30pm
Central Square, Forth st, Newcastle NE1 3PL (poster below)
conference@eqco.org.uk
The Wales Council for Voluntary Action (WCVA) has reviewed the Party Manifestos on voluntary and third sector involvement in public life.
It is worth repeating here:
Labour Party extracts || Conservative Party extracts || Lib Dem extracts
Labour party manifesto 2010 - extracts
The early years
We want to strengthen parental engagement with Sure Start Children’s Centres. Some voluntary and third-sector organisations already run networks of Centres, and we will now pioneer mutual federations running groups of local Children’s Centres in the community interest.
Older age
The vast majority of older people are well and active, helping to strengthen our families, communities and wider society. Many charities, voluntary organisations and schools value and rely on the contribution of older people and we support the growing number of excellent initiatives creating greater understanding across the generations. We will continue to support older people in getting involved in their community by providing matched funding for community projects.
The challenge for Britain
To build on the renaissance that British sport, culture and the arts have enjoyed in the last decade in the new climate of financial restraint. The voluntary and community sector has a new lease of life, but needs its potential to be fully harnessed. The Tories have always neglected the arts and sport, regarding them as an easy target for cuts.
Protecting community life
We will extend the use of participatory budgeting to give local people a stronger say. Community Land Trusts enable local people to purchase and run local amenities and assets in their area such as youth facilities, parks and open spaces. We will promote the transfer of buildings and land to the ownership or control of voluntary and community groups.
Supporting social enterprise
The Social Investment Bank will make additional capital available to social enterprises with an initial endowment of £75 million funded by dormant accounts alongside existing funding streams. We will promote the creation of more social enterprise hubs in every community – helping more to get off the ground. We will extend the right of public-sector workers to request that they deliver frontline services through a social enterprise. Public-sector workers in the NHS currently enjoy this right. We will extend this to more public services, including social care, with greater community involvement in their governance.
The new mutualism
There is growing interest in co-operative and mutual organisations that people trust, and that have the capacity to unleash creativity and innovation, creating new jobs and services – particularly in disadvantaged neighbourhoods where traditional approaches have failed in the past. We want to see more local organisations run on cooperative principles with an expansion of Community Interest Companies and third sector mutual organisations that reinvest profits for the public good. We will promote this through the Co-operative Party, Business Link, enterprise education and the Regional Development Agencies. To give more people a stake in a highly valued national asset, British Waterways will be turned into a mutually owned co-operative. We will promote the use of community shares that support investment in football clubs, pubs, renewable energy and shops.
A vibrant voluntary sector
Britain has among the highest levels of voluntary membership in the world. We strongly value the independence of the voluntary and community sector, including its campaigning role, and will act to maintain it. There will be greater support for third-sector organisations in competing for public-sector contracts, ensuring there is a level playing field with the public and private sectors. We will consult on putting the Compact Commission – which sets guidelines for effective partnership working between government and the third sector in Britain – on a statutory footing, and ensure greater support for the Compact at local level.
All young people should be active and engaged in their communities, so that it becomes a normal part of growing up to undertake service in the community. We are taking forward plans for a National Youth Community Service, with the goal that all young people contribute at least 50 hours to their communities by the age of 19, building on citizenship education and community engagement in schools.
Faith is enormously important to millions of people in Britain, shaping their values and the way they live. We respect the importance of belief and welcome the contribution that people of faith make to our communities and society more widely. We will actively combat extremist groups who promote fear, hatred and violence on the basis of faith or race.
Conservative party manifesto 2010 - extracts
Reduce welfare dependency
Our Work Programme to reduce welfare dependency will be delivered through private and voluntary sector providers, which will be rewarded on a payment by results basis for getting people into sustainable work.
Public service reform
Our public service reform programme will enable social enterprises, charities and voluntary groups to play a leading role in delivering public services and tackling deep-rooted social problems.
We will strengthen and support social enterprises to help deliver our public service reforms by creating a Big Society Bank, funded from unclaimed bank assets, to provide new finance for neighbourhood groups, charities, social enterprises and other nongovernmental bodies.
This will provide social enterprises with the start-up funding and support they need to bid for government contracts or work towards delivering services under a payment by results model.
Britain has a proud and long-standing charitable tradition, and we are convinced that the voluntary sector should play a major part in our civic renewal. We will introduce a fair deal on grants to give voluntary sector organisations more stability and allow them to earn a competitive return for providing public services. We will work with local authorities to promote the delivery of public services by social enterprises, charities and the voluntary sector.
The National Lottery
We will restore the National Lottery to its original purpose and, by cutting down on administration costs, make sure more money goes to good causes. The Big Lottery Fund will focus purely on supporting social action through the voluntary and community sector, instead of Ministers’ pet projects as at present. Sports, heritage and the arts will each see their original allocations of 20 percent of good cause money restored.
Give patients more choice
We will give every patient the power to choose any healthcare provider that meets NHS standards, within NHS prices. This includes independent, voluntary and community sector providers.
Fight back against crime
We will fight back against the crime and anti-social behaviour that blights our communities. We will take steps to reduce the causes of crime, like poverty and broken families. We will introduce honesty in sentencing and pay voluntary and private providers to reduce re-offending.
Build the Big Society
We will use the state to help stimulate social action, helping social enterprises to deliver public services and training new community organisers to help achieve our ambition of every adult citizen being a member of an active neighbourhood group. We will direct funding to those groups that strengthen communities in deprived areas, and we will introduce National Citizen Service, initially for 16 year olds, to help bring our country together.
Restore our civil liberties
We will scale back Labour’s database state and protect the privacy of the public’s information. We will introduce a balanced approach to the retention of people’s DNA and reform the criminal records system so it protects children without destroying trust.
Give citizens more power
We need to give people real control over how they are governed, so, with a Conservative government, any petition that secures 100,000 signatures will be eligible for formal debate in Parliament.
Give people more power and control over their lives
Our new ‘community right to buy’ scheme will give local people the power to protect any community assets that are threatened with closure.
We will implement fully the Sustainable Communities Act, and reintroduce the Sustainable Communities Act (Amendment) Bill as government legislation, to give people greater information on, and control over, what is being spent by each government agency in their area.
National Citizen Service
We will introduce new ways to increase philanthropy, and use the latest insights from behavioural economics to encourage people to make volunteering and community participation something they do on a regular basis.
Neighborhood groups
We will develop a measure of well-being that encapsulates the social value of state action.
Transform the civil service into a ‘civic service’ by making sure that participation in social action is recognised in civil servants’ appraisals;
Launch an annual Big Society Day to celebrate the work of neighbourhood groups and encourage more people to take part in social action;
Liberal Democrat party manifesto 2010 - extracts
Fair treatment at work for everyone
There are far too many barriers to work for people with disabilities. We will change this by giving disabled job seekers better practical help to get to work, using voluntary and private sector providers, as well as JobCentre Plus services. We will also reform Access to Work, so disabled people can apply for jobs with funding already in place for equipment and adaptation that they need.
Helping families stay strong
Every child deserves a happy life free from poverty and free from fear. Liberal Democrats will strengthen the Youth Service by making it a statutory service, and by encouraging local authorities to provide youth services in partnership with young people and the voluntary sector.
Supporting the voluntary sector
As Liberal Democrats, we are committed to handing power back to local communities. We believe that society is strengthened by communities coming together and engaging in voluntary activity, which sets people and neighbourhoods free to tackle local problems.
Liberal Democrats will support the voluntary sector by:
● Introducing ‘easy giving accounts’ at publicly-owned banks to allow people to operate charitable giving accounts alongside their current accounts.
● Reforming Gift Aid to operate at a single rate of 23 percent – giving more money to charity while closing down a loophole for higher rate tax payers.
● Reforming the process of criminal record checking so that volunteers need only one record that is portable, rather than multiple checks for each activity.
Supporting mutuals, co-ops and social enterprises
We believe that mutuals, co-operatives and social enterprises have an important role to play in the creation of a more balanced and mixed economy. Mutuals give people a proper stake in the places they work, spreading wealth through society, and bringing innovative and imaginative business ideas to bear on meeting local needs. We will:
● Give financial regulators a clear objective of maintaining a diversity of providers in the financial services industry.
● Seek to turn Northern Rock into a building society.
● Give both Royal Mail and post offices a long-term future, by separating Post Office Ltd from the Royal Mail and retaining Post Office Ltd in full public ownership. 49 percent of Royal Mail will be sold to create funds for investment. The ownership of the other 51 percent will be divided between an employee trust and the government.
● Encourage community-owned renewable energy schemes where local people benefit from the power produced.
● Pass a new Mutuals, Co-operatives and Social Enterprises Bill to bring the law up to date and give responsibility for mutuals to a specific minister.
Freeing schools for excellence
Liberal Democrats want an education system where all schools will have the freedom to innovate, not be dictated to by central government. Give all schools the freedom to innovate. We will ensure a level playing field for admissions and funding and replace Academies with our own model of ‘Sponsor-Managed Schools’. These schools will be commissioned by and accountable to local authorities and not Whitehall, and would allow other appropriate providers, such as educational charities and parent groups, to be involved in delivering state-funded education.
Restoring your freedoms
Liberal Democrats will protect and restore your freedoms. We will restore the right to protest by reforming the Public Order Act to safeguard non-violent protest even if it offends; and restrict the scope of injunctions issued by vested interests.
Access to culture and sport
Liberal Democrats will reform the National Lottery. We will change the way the National Lottery is taxed from a ticket tax to a gross profits tax, which is forecast to deliver more for good causes and the Exchequer.
Different health and care providers have different advantages and disadvantages. Which is most suitable in which situation?There are many forms of health and care provider.
The best known in UK is the public-sector owned - NHS hospitals, NHS community services. Traditionally there have also been professional partnerships - smaller providers owned by health and care providers, such as GP practices, Pharmacists, Dentists, Opticians. And of course commercial providers have got in on the act - pharmacies in chain stores, nationwide opticians, private hospitals.
Less well known are the charity and not-for-profit providers, such as BUPA/Shire Healthcare. The current policy is to disband public-sector ownership in favour of contestability (competition). It is risky to transfer £hundreds of millions worth of assets into private hands, and many health care staff refuse to work in a profit environment, so the social enterprise was invented - a commercial entity where any operating surplus has to be put back into the community in support of their charitable aims, and all of the assets are maintained under an asset lock (ie they cannot be transferred for profit).
But there are many different forms of Social Enterprise; some may be ideal in different environments.
In the child pages of this section, we've explored a few of these
Anyone planning or running a social enterprise or charity (or even commercial organisation with intent for social good) should read this book - it has so much useful information that I read it twice before I wrote this review.
Scofield writes about his experience creating, establishing and growing FINCA, an international micro-finance organisation, and writes from experience (sometimes joyful, sometimes bitter). This is not a book about "it ought to be like this", but it explains the unexpected and the unforseen - you learn so much from Scofield's experience and the experience he draws on from other organisations that you will make fewer mistakes and enjoy more success.
I built a Social Enterprise providing healthcare and I'm now setting up a charity for health awareness, and I found many if not all of the lessons fascinating and highly relevant. FOR EXAMPLE: How do I spot the wrong people to employ, the ones who sing beautifully at interview and either suck in money and deliver nothing, or change the culture in the wrong way? What about bringing in experts from the "dark side" (the commercial world) to help the business grow? Schofield has done all of this and more. How do I find celebrity endorsement? How do I maintain the organisation as autonomous units but keep to the founding principles? How do I keep in touch with my donors and retain their commitment, without driving them away? Again, Scofield can present real-life stories both of his clients and rivals, and of FINCA's internal politics.
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We've all read coffee table books about the "goodness" of social enterprise. This isn't one of those. It's a book so full of experience that it is one you will go back to again and again, and probably buy copies for your executive board and main donors. Your initial investment could get expensive, but I can guarantee that you will look back on it as one of the best investments you ever made. And for the students out there - why make the mistakes yourself? Why try to reinvent the wheel with something that bumps you along? The most important thing in life is to find good mentors, and I think Scofield qualifies as one of those! |
We're setting up a charity to support people suffering from a particular medical condition, who aren't helped by the NHS.
But trying to set up a charity isn't for the faint-hearted - there are so many choices and so many decisions, each with long-running impact.
The first question is: do we want a non-profit organisation, or a genuine charity? A non-profit organisation typically does work which is for social good, but receives an income in order to do this. A charity doesn't make a connection between the work it does and the income it receives (except that it spends its income on delivering the work).
I have already set up and run one Social Enterprise, a non-profit to deliver emergency and unscheduled health care, which delivers a specific service and receives payment to deliver that service. This is a trading organisation, with salaried staff and commercial contracts in place, only we have decided not to take a profit but to invest any trading surplus for the good of its local community. This falls under a different set of rules, as it does not have to register with or report to the Charities Commission, but it does have rules in place about how much people can be paid and what the organisation can do with its assets in the event of a failure (Urgent Care Ltd is an excellent example because it is so successful). I've go the paperwork in place to set up other Social Enterprises in the North East - Social Enterprises avoid arguments over how the profit will be distributed, commit those involved to focus their attention on the good of the community, and the rules make statutory bodies (such as NHS and local government) comfortable doing business. Of course they still have to be stable financially, and to deliver a top quality service, but the decision to focus on social good has already been taken, and you can't decide to run off with the profits at some later date.
For CharityThis time it is different. We need to deliver a service free of charge, and fund it out of donations freely given and not connected with the delivery of that service (though the idea came because so many recipients wanted to give something).
In this case, we need a Charity Registration number from the Charities Commission, so that we can claim tax refunds on donations and so that potential donors can see that the money will be guarded and scrutinised by the Charities Commission.
So I went over to the Charity Commission to see what is involved, and was stunned at what I saw - the choices, the questions that need answering, the "guidance" that leaves you more confused than ever before, and finally, when you've got through all of that, proof of income! We haven't got any income because we haven't formed yet - Catch 22!
A good friend of mine, Martyn Hooper of the Pernicious Anaemia Society galloped in on his white charger and saved us at this point. We need to set up an organisation first, to take the first donations which can then be used to register with the Charities Commission. So what organisation do we need to set up?
Well one of the first questions is about logistics:
So we are forming a Charitable Trust, because we don't expect any specific sources of income; the papers have gone to the Committee and we expect to form in the next few days.
Urgent Care Ltd is a social enterprise to bring together the valuable skills of Emergency Care Practitioners and Nurse Practitioners for first contact, and Primary Care Trusts (PCTs) need to get responsive clinicians providing care at the point of need.
Primary Care Trusts PCTs purchase care on behalf of their population. One of the most expensive ways to get urgent and unscheduled care (or emergency care) is the traditional form - ambulance 'scoops and runs' from the scene and delivers to the A&E department of hospital. Why is it so expensive? You pay for the ambulance, then for the A&E department, then for any care that follows. PCTs sought a lower cost alternative. For many patients, they simply don't need to attend hospital and would receive both the best care but also the most appropriate care with a suitably qualified and experienced first contact practitioner (see ECP). So PCTs sought to buy ECP teams to provide local unscheduled care. Emergency Care Practitioners, trained by Ambulance Trusts, were the ideal solution. When ambulance trust and PCT couldn't agree the Service Level Agreement, we sought to set up an employee-owned company to make the link, deliver the service, and satisfy the needs of the PCT and population in combination with the desire of ECPs to serve. this organisation is Urgent Care Limited, Social Enterprise. As founding chair, I ensured the right funding and cash flow and the initial contracts, the governance and structure of the company, and the Trustees. After 14 months I've stepped aside and the charitable organisation continues to develop.
Hopefully I've whetted your appetite, with the SROI audit of Quality Checkers. Now it's worth explaining a little bit about the SROI audit process (you can compare this with other ways of auditing social good on the next page).
SROI takes two forms, it can either be an evaluation, or forecast.
An evaluation is an audit of an existing service, to tell what it's doing, and to make some recommendations where improvements are needed. It helps to answer the question
"which services help our population, and to what extent?"
A forecast looks at a proposed project, and helps to make the case for the investment, or to advise the investment is not being wisely spent. As far as possible, an SROI forecast will allow a quick calculation - "is it worth investing this much money in this project/ initiative? Or should we invest it elsewhere?"
The first point to make is that it is a framework, not a straitjacket. It's based on seven principles, which I described in the SROI audit of Quality Checkers. The usual process follows six stages, though with experience some of these stages can be bundled together. Assigning a financial equivalence value is not a requirement, though again with experience, it is possible to assign robust financial equivalence values to some of the benefits identified, and this helps enormously when using the evaluation to decide if resources are being properly spent, or forecast to decide whether to go ahead with the business case.
Perhaps the most important principle is that ‘value’ depends on what the stakeholders think, instead of what the person proposing to provide the service thinks. This could sensibly be applied in all other projects – "it's not what you value, it's what the recipient values".
SROI has credibility – it uses internationally recognised principles, and there are internationally recognised training and accreditation. The best SROI audits would be conducted by an independent consultant rather than internal to the organisation, and within the UK, a number of government bodies including Office for Civil Society, Centre for Social Justice, nef (new economics foundation), SROINetwork, and the Scottish Government are promoting it as the standard way for statutory commissioners (local government and NHS commissioning board) to justify why they made the decisions they made.
For this reason, it also valuable the charity trustees – because it is a standard and well recognised framework, they can compare options for giving funding using equivalent information from different proposals.
There is still room for personal bias and a personal approach to assigning values; the framework and guidance are likely to limit this, and the results are far less likely to be subject to ‘optimism bias’.
For example, with the Quality Checkers SROI report, the 'most likely' values were all confirmed by organisations that spend real cash, and save real cash. The 'worst-case' and 'best-case' figures were also confirmed by these groups. Groups that did not spend real cash (government regulator, friends and family) had their benefits recorded qualitatively, but did not have financial equivalence values assigned.
I involved stakeholdersI spoke with the Quality Checker team themselves, the experts by experience, and together we identified a set of benefits. This was only a preliminary round – we used it to identify who the main stakeholders were, how they fitted into groups of stakeholders, and then who are needed to speak to.
Then Skills for People made an introduction for me to everyone we had identified, and I called each one to explain what I was doing and what SROI is. We followed this with a face-to-face interview, or a phone call, to discuss the benefits and the value of the benefits; I used my experience to coach them through how to identify benefits.
We used the standard SROI impact map format to name the outputs, outcomes and strategic goals they had intended to achieve by using the Quality Checkers. When people got stuck, I talked to them about what other people in the same stakeholder group had identified, which both triggered ideas, and prompted discussion.
An important principle was applied here – I only recorded benefits people claimed for themselves. If someone was not available then I could not apply any benefits to that organisation “pro rata across the group of stakeholders”.
From these discussions, we ended up with hundreds of separate benefits; I mapped and looked are similarities, and managed to identify where benefits were actually very similar; different groups of stakeholders were getting the same results, which raised a dilemma – to avoid double counting a benefit, which stakeholder group should have the value assigned?
Many of the people I spoke to at the various organisations were people involved in direct care, who were number-phobic – they weren't good at counting how much or how many or what value. They often put me in touch with senior managers, accountants, supervisors, people collecting data, so that I was able to get tangible numbers. Sharing experiences between different organisations helped - one organisation might explain where they looked to find the numbers that we could then combined to form an impact, and I could ask another organisation for the same set of numbers.
People often didn't know how much they knew, or how valuable it was. Again my experience helped– I was able to coach them through. Of course some values were not available from the stakeholder, and had to be found from literature searches and other publications – a particularly valuable resource here is the PSSRU annual report "unit costs for social care".
We assigned a financial equivalent value to some impacts and not others:
Each stakeholder help me to work out a baseline (what they had been getting before the Quality Checker audit), an amount of change, and what else might of influence that change (what amount of the change should be attributed to the Quality Checkers).
Where different stakeholder groups claimed the same benefit, rather than try to give a % attribution, I assigned the whole of the benefit to the stakeholder group which identified the highest value in interview. We are concerned with looking at the overall value rather than the value by stakeholder group, so this was more for convenience and transparency than anything else.
Establish ImpactTo make sure we’re only talking about what was affected by the project in particular (the Quality Checkers), we need to ask a number of questions:
So many projects and services, their impact on the recipient only lasts as long as the service is available, or for a short time afterwards. With the Quality Checkers, many of the changes went on building after the Quality Checkers had left – there was a real and permanent cultural change. The inspiration to go out and find work, because you’ve seen “someone like you” in a respected professional job, goes on building and may spread to other people; whereas a bit of extra money to spend on additional staff support will cease to have an effect once the money is no longer available.
Transparency and verification are very important when calculating the impact of the Quality Checkers. Stakeholders examined two separate drafts of the report – the first, once I'd gathered all the benefits and before I start assigning amounts and financial equivalences, which allowed them to check whether I'd understood their words at interview, allowed them to change their minds about something they'd said, and let them disagree with someone else's assessment "I don't think that’s very likely".
When I gathered all the numbers, and started to assign financial values, I sent a second draft of the report out, so that people could say "that number looks ridiculous, I don't believe it" or whatever was necessary to end up with impact values and financial equivalence that were acceptable to the stakeholders. In general, some benefits have their values reduced at this stage, and others increased; the overall SROI ratio ended up about the same.
For the purpose of the Quality Checkers’ report, we defined a time period of 2 1/2 years, so that all calculations were restricted this time period. The 2 1/2 years was about equivalent to £100,000 invested by the purchasing organisations in the Quality Checker services.
We started using 3.5% NPV (Net Present Value) to calculate figures, but over 2 ½ years it made almost no difference (within the bounds of the accuracy of the financial equivalence assigned), so for simplicity this calculation was removed.
A number of assumptions were made when calculating the values of savings:
Costs were easier to calculate: they represented BOTH the total amount spent with Skills for People, and the amount spent by organisations who develop their own teams of Quality Checkers – transport, support, payments made, etc..
The savings divided by the costs gave us the SROI ratio. A second draft of the report was then shared across all the stakeholders who could discuss/confirm/challenge, and I followed up with another round of telephone interviews to ensure that all feedback was included.
The SROI ratio determines the payback period. For a ratio of 10 or more, the SROI payback period is so fast that an exact calculation is probably not relevant. Obviously for an SROI ratio of between 1 and 3.5, it can be more important to calculate the payback period and compare with other opportunity costs (this is relevant where the resource could be used on another service, e.g. for service portfolio balancing).
In effect, I was evaluating the evaluators, auditing the auditors. The Quality Checkers themselves are auditors of the user experience.
Everyone I spoke to said it was very useful – both to have the final report, and to go through the process of working out what difference it made them. Many organisations who were trying to develop their own Quality Checker teams, were very glad to see what parts of Quality Checker work made the most difference, and to understand how much they should sensibly invest in developing their own teams. It means that the teams can go along to the commissioners of services, and justify the investment; commissioners are able to see what they’ll get for their money, and make decisions.
Some places use the report as a forecast for investment in other similar services e.g. health Quality Checkers, user experience for elderly care, etc. It identified just how important it is to have a single standard national "way", standards against which services are assessed, and a method for calculating performance against those standards, which means that it's possible to put the standards into national and local contracts and expectant them to be met. Putting local user experience standards into contracts raises lots of questions, such as How do you measure?, and if there is a dispute, whose version of performance do you use?
The SROI report goes in with submissions to relevant organisations explaining why they should use the Quality Checkers. Any organisation with an SROI report should use it as part of the "selling" process – explaining why they represent value for money (this assumes that the SROI report showed that they do represent value for money! Otherwise it should indicate what they need to change). The report uses the standard recognised methodology and is independent, so it is highly credible.
What it demonstrates is the Quality Checkers isn't something that you "ought to do", it's something that makes you resources go further.
What this also illustrates is that the SROI framework can be used to support decisions in all areas where the return isn't directly financial.
Huffington Post published this beautifully presented business case for the true cost of oil.
It explains clearly what makes up the price of a gallon of "gasoline", from the price at the pump, through the pollution with greenhouse gases (as cocker spaniel' weight blocks), pollution with other toxic gases, and so on all the way from a price to buy ($5) to a real cost ($15)
I ask you - if you were to design a new national health service from scratch, would you really design it with nobody to think ahead and make decisions on resources?
So why are the main political parties in UK engaging in their favourite sport of manager bashing?
Perhaps because there's an election coming up. We've had 10 years of Doctor bashing (they are paid too much, an nurse can do the same job, they aren't safe on 60 hour shifts etc etc) and the main result has been the poor quality of Out of Hours services since it was taken from the GPs and put with the PCTs (Primary Care Trusts) in April 2004 - deaths and doctors who don't speak English, anyone? How about software not fit for purpose?
So who's the next scapegoat, to distract attention from the politicians who make these decisions? Well, as Mike O'Brien put it last month "you will receive less budget, less resources. But any manager who cuts services because of a lack of funds will be named and shamed, and drummed out of the health service". Talk about passing the buck!
Conservative and Lib Dem are fighting to get onto the bandwagon - "we can put everything right with a magic wand - more of what Labour's doing, only faster!"
So what are the differences between the parties? as I argue on Technorati.
Labour wants GPs to do more for patients, so NHS can save money on hospital appointments. GPs are also being encouraged to take part in Integrated Care Organisations (ICOs) which provide pathways of care.
Conservatives want GPs to own the budget for patients - a return to GP fundholding. Certainly some GPs are keen on this idea, but others don't want the responsibility.
Lib Dem (who can say what they like because they won't have to implement it) say GPs should have to do everything: see more patients, at all hours, with longer appointment times. I think someone has forgotten that there are 168 hours in a week, and most human beings need time to sleep.
The game goes on!

Which is better - private funding or public? Which gives a better outcome for the individual (* clinical outcome, * user experience, * cost-effective, * sustainable) and is there a clear picture?
One way to examine this question is to look at different countries in the world and see what works for them. I tackle this in the latest blog on Technorati.
Which is better - private funding or public? Which gives a better outcome for the individual (* clinical outcome, * user experience, * cost-effective, * sustainable) and is there a clear picture?
The figures are clear:
At around $1800 Healthy Life Expectancy is pretty good, and by $3000 per head (£2000, €2200) it doesn't get any better (see colourful chart to the right - based on WHOSIS figures for 2001-2006).
You can spend more but you don't improve life expectancy. Now many would argue that you get better healthcare - more comfortable, more convenient, better quality of life - I can't say (and nor can WHO) - Healthy Life Expectancy is a pretty good measure of health. I wonder what happens to the extra money?
Lets look at this a different way - by % of GDP.
A lot of people think that we are now rich enough to kill ourselves. We have enough spare money to eat too much, drink too much, smoke too much, never have to exercise, often not even to work, and of course to go hypochondriac on the internet, not only diagnosing all sorts of weird and wonderful diseases, but also to medicate them with medicine of dubious provenance.
So if we're richer, healthcare should naturally cost more? It should cost more because it is more expensive to deliver (wages are higher, we use more expensive equipment, etc). It would be fairer to look at healthcare compared to GDP (Gross Domestic Product).
Lower spend as a % gives lower life expectancy (I've had to exclude a lot of countries to make the graph simpler). That's what is to be expected. But look at some of the exceptions above the 7.5% mark. Japan (relatively low % of GDP in this sample) has the best life expectancy at birth. Diet? Stress?
UK - although spend is relatively low, life expectancy is terrible compared with the group. Alcohol? Smoking? Could it be a failure of healthcare? I doubt it, with all of the health tourism INTO the country.
The real anomaly is USA. In 2006, a frightening 15% of GDP ($1 in every $6.5) was spent on healthcare. Nowadays it is more like 17% ($1 in every $6). Not to put it too crudely, healthcare is very important and the healthcare workers work very hard, but it doesn't create new wealth. No, I tell a lie, in USA some people are getting very rich out of healthcare.
According to some estimates, 40% of all healthcare "spend" in USA goes to administration in the insurance companies that purchase healthcare on behalf of the public - they don't run hospitals (many hospitals are charities) they simply take the cream off the top.
No wonder so many people oppose Obama's proposed healthcare reforms - they don't want to give up their really rich sources of income!
For my next blog, I'm going a bit closer to home - look at the impact of numbers of primary care doctors (GPs) on A&E admissions in UK. It could be interesting (I haven't done it yet!)