GSVC Social Impact Assessment Webinar
Presented at the Haas School of Business
October 16 2007
More detailed resources are available online at
www.gsvc.org
Purpose
The objective is to answer 3 key questions:
1. What is a social impact assessment?
2. What is it’s value?
3. How is it developed?
Workshop Overview
I: Social Ventures - Defining Value
– Sara Olsen, Social Venture Technology Group
II: Building the SIA
– Joel Ramirez and Jeff Kang, GSVC Research
I: Social Ventures - Defining Value
Sara Olsen, SVT Group
II: Building the SIA
GSVC SIA Framework Overview
Insights from GSVC 2007
Entrant Timeline
Resources
The GSVC SIA Framework
• Various approaches are used to measuresocial impact
– REDF, Acumen Fund, World Bank
• GSVC developed its own SIA framework
– Support early stage ventures in social impactmeasurement
– Central aspect of the competition (SIA Award isgiven to the plan with the best assessment model)
Existing Approaches
Source: S. Olsen, J. Nicholls. A Framework for Approaches to SROI Analysis, May 2005.
GSVC
All GSVC entrants are required to complete
these three steps to demonstrate social
value creation in financial terms
Define. Quantify. Monetize.
Define Quantify Monetize
What is your socialvalue proposition?
How will you measuresocial return?
What is the $ value ofyour impact?
The GSVC SIA Framework
Define. Quantify. Monetize.
The GSVC SIA Framework
Detailed and focused Theory of Change
Develop an Impact Value Chain
Tips
Articulate, in a sentence or more, thetheory of change — a compelling socialvalue proposition that is core to theventure’s desired social outcomes
CompetitionRequirements
Theory of Change
Impact Value Chain
Tools
Define the non-financial benefits theventure creates
Goal
Theory of Change
Define. Quantify. Monetize.
Human Service Fellowship (SIA Winner, 2005)
IF there is increased supply of HIV-trained laboravailable to NGOs in Africa
THEN high-quality life-years will increase forHIV/AIDs infected patients
Theory of Change:
Define. Quantify. Monetize.
Relate to Impact Value Chain
Discuss how they will be tracked
Tips
Articulate the three most importantmeasurable social indicators will moststrongly correlate with desired socialoutcomes and that can be tracked as partof normal business operations
CompetitionRequirements
Impact Value ChainTools
Identify your top indicators of social valueGoal
The GSVC SIA Framework
Impact Value Chain
Define. Quantify. Monetize.
Human Service Fellowship (SIA Winner, 2005)
Impact Value Chain:
Inputs
• Increased supply
of HIV-trained
labor available to
NGOs
Activities
• Health staff
training
• Systems setup
• Management
Outputs
1. # health staff
trained
2. # AID S clinics
enabled
3. # new patients
treated
Outcome
• Increased high-
quality life-years
saved (health)
Outputs are clear, quantifiable and
mapped to social outcome
Define. Quantify. Monetize.
Develop and state clear assumptions
Innovate upon on existing frameworks
Include both positive and negative outputs
Discuss tracking and monitoring plans
Tips
Monetize the value of expected socialimpact over the next 10 years, using toolslike SROI analysis
CompetitionRequirements
GSVC 5-Step Process
Various frameworks (REDF)
Tools
Identify the dollar value equivalent of yoursocial impact to create a SROI
Goal
The GSVC SIA Framework
Define. Quantify. Monetize.
Five Step SROI
GSVC SROI Framework
1. Quantify outputs/outcomes where possible2. Use proxies to translate outputs into financial equivalents3. Develop social cash flow projection (10 yrs)
- Subtract value of outputs/outcomes that would havehappened anyway
- Calculate social NPV- Subtract operating and capital costs- If desired, calculate return (SROI, SIRR)
4. Discuss qualitative outcomes5. Clearly cite your sources and assumptions
SIA Judging - Key Questions
Define.
– How compelling is the theory of change?
– How integrated is the theory of change withthe purpose of the business?
– How well is the social mission embedded inthe business?
Quantify.
– How measurable are the social indicators?
Judges will focus on several key criteria
Monetize.
– How credible are the assumptions and the projections?
– Does the plan describe a process for monitoring SIA over time?
– Has the analysis accounted for both the positive and the potentialnegative outcomes generated by business activities?
– Does the plan identify potential conflicts or paradoxes betweenmanaging for financial and social results?
What is a model SIA?
THE
HUMAN SERVICE
FELLOWSHIP
SIA Winner (2007): Compelling and Credible
“it was compelling…the analysis involved stakeholderanalysis, was feasible and easy to monitor.”
SIA Honorable Mention (2005): Analytical Rigor
“…excellent analytical approach…serves as apositive example to current and future ventures.”
SIA Winner (2005): Strong Theory of Change
“The results of their SROI could not have been achievedwithout their intervention”
SIA Award recipients best model the framework and
contribute to the field of social impact measurement
Best SIA does not always = greatest social impact!
Participants need more resources and a clear process:
• GSVC will provide SIA Office Hours to entrants and partners(more details to come)
• Building online resource library and tools
• Developing better coordinated judging timeline
Judges suggest further emphasis on:
• Seamless integration into the business plan
• Clearly stated and well-referenced assumptions
• A clear and sustainable process to monitor SIA moving forward
• Inclusion of stakeholder analysis, if applicable
Insights from 2007
Entrants: 2008 SIA Timeline
SIA FinalsGSVC Semi-FinalsExecutive Summary
TimeframeNow - Jan 16Now - Nov (India)
Suggested ActionsRead GSVC SIA GuidelinesDevelop Theory of ChangeDraft Impact Value Chain
Judging ProcessNo specific judging of SIA
GSVC ResourcesResource Library
TimeframeJan 18 - Feb 27
Suggested ActionsResearch methods, proxiesDevelop assumptionsConduct SROI analysis
Judging ProcessJudge Full SIA Analysis
(judged by each region)1 SIA Finalist per RegionFeedback to SIA Finalists
GSVC ResourcesGSVC Office HoursResource LibraryGSVC Mentors
TimeframeMar 10 - Mar 24*
Suggested ActionsIncorporate judging feedback
Judging ProcessJudge Full SIA AnalysisInnovative and high qualityJudged by international panel
GSVC ResourcesGSVC Office HoursResource LibraryGSVC Mentors
Resource Library: www.gsvc.org
2008 Social Impact GuideDetailed guidelines and
requirements arein the Resource Library
Also Included:
• SROI Examples
• Related Links
• GSVC Workshop Materials
Additional Resources
www.riseproject.org,
www.svtgroup.netReview and description ofvarious social impactframeworks
Double Bottom LineProject Catalog
http://www.redf.org/publications-past.htm
Publications onmeasurement frameworks,SROI case studies
REDF Publications
http://www.socialedge.org/resources/edge-wiki/ImpactAssessment
Links to papers andresources
Social Edge (Skoll)
http://www.blendedvalue.orgReference documents andpresentations
Blendedvalue.org
Cathy Clark’s full SIApresentation (2007)
Details
www.gsvc.org2007 SIA WorkshopPresentation
SourceResource
Thank You!
Please feel free to contact the GSVC ResearchTeam with any SIA questions and feedback
• Jeff Kang, [email protected]
• Joel Ramirez, [email protected]