2008, nef (the new economics foundation)
Value-driven organisations are using new ways to understand, measure and foster awareness of their impacts. The benefits can then be seen in terms of the ‘return’ for individuals, communities, society or the environment. This is a powerful way of viewing impact. It enables those who invest in, and have a stake in, social change to thoughtfully weigh the resources they use. This guide sets the standard for a complete and rigorous SR OI process and report.
Outcomes measurement is increasingly commonplace within the third sector, and organisations are keen to build their own capacity in evaluation techniques. In addition, competition for philanthropic funding has become more competitive, and organisations are responding by paying more attention to measuring and quantifying the benefits that they are generating.
SROI is a capacity-building and measurement framework that meets these needs. By incorporating social, environmental and economic impacts for a range of stakeholders, it more accurately reflects the value that organisations are achieving. At the same time, it helps organisations to evidence their claims and demonstrate that specific changes are attributable to their actions. Essentially, SROI encourages a new way of thinking about value and enables a mode of decision-making that is informed by the things that matter to people and communities. In this sense, it should not be seen as a mechanistic process, or one that requires the support of ongoing expert opinion. Instead, SROI promotes the philosophy that measurement systems should be embedded within organisation, that they should inform strategic planning, and that those delivering services are often best placed to engage with their stakeholders and respond to new information.
