Posted by: Eye
Categories: Thought Leadership
Profit is no longer enough to justify the delivery of projects and services in today’s economic climate. Ever since the Social Value Act 2012 came into place, businesses now have a responsibility to account for the social, economic and environmental impact of the projects and services they deliver. It is now important to ensure that the legacy left by your business positively impacts the economy, environment and the local community. Increased self-esteem, confidence and overall well-being created through employment are just some of the ways that a project can be socially beneficial, with many more indicators to measure.
Many organisations simply present output data, such as apprentice numbers or community events. This approach does not provide the monetary value required for a proper Social Return on Investment and Economic Impact Analysis which fails to articulate how that value is created. In the past, a variety of approaches have been used to measure social value. However, these approaches tend to overestimate the value and do not apply the appropriate impact metrics necessary to accurately calculate their value.
Dated methodologies used in the past have exposed several limitations. For example, measuring impact based on output numbers instead of monetary values means that it is hard to gather a clear understanding of the impact that a project has on the local area. Another limitation is no long-term view. The ability to calculate future impact in the years to come is essential to the planning and delivery of projects and services.
Pagabo’s commitment to delivering social value is reflected in our approach towards calculating it. Pagabo now ensures that public sector organisations can gain a long-term view of their project impact whilst also having an accurate understanding of the effects it has on the local area. Using monetary based calculations allows us to have an unprecedented degree of accuracy towards calculating social, economic and environmental impact and value.
Other framework providers have a long way to go to move from monitoring outputs to measuring outcomes and calculating the social value. Pagabo doesn’t just count the number of apprentices, new jobs and work placements etc., we calculate the financial value of the outcomes which makes up the total social value. This allows us to support clients to make business decisions which provide the greatest benefit to individuals, communities, businesses and local economies.
Pagabo’s accuracy and efficiency towards social value is driven by the Social Profit Calculator (SPC). The Calculator allows organisations to accurately measure social, economic and environmental impact, demonstrating a financial return on investment. SPC allows for cost-benefit analysis, SROI, economic impact through spend, GVA labour productivity and environmental sustainability whilst using robust HM Treasury Impact metrics.
It’s this level of long term visibility of the future social impact of a project’s investment that sets Pagabo apart from other framework providers. To discuss how we can apply this approach to your next project, please call us on 01482 975883, or email us at email@example.com.