As public sector funds recede the private sector is increasingly expected to step in to deliver solutions into the community through third sector agencies.
The Government have introduced various ways to assist Local Authorities (LA) and Local Enterprise Partnerships (LEP) in this process including Localism Act 2011 and more importantly the Social Value Act 2012 which requires “public authorities to have regard to economic, social and environmental well-being in connection with public services contracts”.
These and other instruments such as social enterprises, mutual, social funding, etc are there to bring economic and social transformation to your area.
The currency to allow this to happen is social impact metrics. Indeed, as the £ measures financial and economic value, social impact metrics measures social value. Together they form the total value of local and regional government responsibility.
What the government did not prescribe, however, is how social impact should be measured. They have left it to the market to deliver this, and the market has spoken.
Big Red Square, together with leading universities, has built a social impact measurement tool for public sector bodies. It enables the quick and easy assessment of your own social impact, that of your supply chain and more importantly, helps to quantify the case for funding of non-statutory services going forward. Similar to the Price Earnings Ratio (P/E) in the private sector measuring Financial Value, Big Red Square enables you to measure Social Value via the Social Earnings Ratio (S/E) (link).
The Social Innovation industry has found it difficult to catch up with legislation in this area. Built for primarily the Third Sector, social impact metrics have been expensive, wieldy, subjective, not scaleable, and open to challenge. The Private Sector largely ignored it, preferring to use kite marks to represent their social value in CSR reports. What was needed was a universal social impact metric that local governments could readily use. Big Red Square did exactly that.