7.1         INTRODUCTION AND LEARNING OBJECTIVES

Social value analysis makes a social impact “tangible” and “controllable.” Accordingly, there are various ways to use the results of social value analysis. Since each study must necessarily be individually tailored to the approach and the organisation under study as well as the available resources, it is advisable to clarify at an early stage for which desired objectives the results are to be used. For all organisations, indeed, even the very act of attempting to perform impact measurement and prepare a social value analysis entails a much more in-depth examination of the organisation’s strategy than would otherwise be the case. The stakeholder dialogue at the beginning of social value analysis or even in preparation for such action often encourages management to deal with assumptions about the impact of its work, which are often implicitly assumed but never explicitly formulated. This process alone offers opportunities with great learning potential for the organisation.

In Module 7, we show that social value analysis as a tool and as a process has the potential to bring values to the surface that are difficult to trace. Social value exists, and it must be taken seriously so that better decisions can be made to implement the organisational strategy. Social value analysis tries to achieve this by developing credible figures (monetization) and using stories and narratives relevant to the project or case in question. Monetarised indicators, such as the SROI index, improve the monitoring and evaluation capacity of an initiative or an organisation and therefore allow the organisation to make adjustments in its project or programme management depending on whether its strategy is optimal to achieve social and intended results. It can help investors (donors) select investments aligned with their value objectives more efficiently. The concept of social return allows people to understand that any grant or loan given to an organisation can be considered an investment and not a subsidy or expense—the focus shifts to the creation of value rather than viewing it as a cost. In summary, this is an instrument of accountability and effectiveness used to analyse whether or not the social objectives set in the planning phase are being achieved.

In Module 7, we explain how the SROI index is calculated and interpreted and how the social value analysis results can be contextualised in a specific temporal, national, and sectoral context. We also show how the results of social value analysis can be embedded in strategy implementation, focusing on controlling based on these results. Next, we explain how the organisational strategy can be further developed based on the social value analysis results.

7.2         CONTENT

1. Communication of impact

1.1. Purpose of the impact analysis

1.2. Audience of communication activities

1.3. The scope of communication

1.4. The type of presentation

1.5. Examples for communication

2. Strategy and controlling based on impact

2.1. Impact Measurement for Strategy and Controlling

2.2. Impact oriented strategy

2.3. Impact oriented controlling

8.3         LEARNING OUTCOMES

After completing this module, the participants are able to:

–      interpret the results of social value analysis in different contexts (time, place, industry);

–      calculate and interpret the SROI index;

–      identify where the analysed project is contributing most to social value and to the strategy of the organization;

–      identify the gap between the hypothetical and actual impact, and suggest a course of action;

–      suggest updates to the strategy.

7.4         TEACHING METHODS

Lectures, demonstration through case-study analysis, discussion, group or individual practical work on case studies, presentations.

Possibility of blended learning and flipped classroom: lectures and demonstration of case studies online; discussions, practical work, and presentations offline.

7.5         ASSESSMENT

Assessment and feedback is based on the case-study work and presentation by participants.

7.6         STUDY MATERIALS

–      Lecture slides

–      Case studies

–      Then et al. (2017). Social Return on Investment Analysis. Measuring the Impact of Social Investment. Chapter 9 (focus on 9.4), Chapter 12

–      The Guide to Social Return to investment (2012), The SROI Network. Stage 5, Stage 67