Intr Intr
oduction oduction
3 Evidencing outcomes and giving them a value. This stage involves finding data to
show whether outcomes have happened and then valuing them.
4 Establishing impact. Having collected evidence on outcomes and monetised them,
those aspects of change that would have happened anyway or are a result of other
factors are eliminated from consideration.
3
5 Calculating the SROI. This stage involves adding up all the benefits, subtracting
any negatives and comparing the result to the investment. This is also where the
sensitivity of the results can be tested.
6 Reporting, using and embedding. Easily forgotten, this vital last step involves
sharing findings with stakeholders and responding to them, embedding good
outcomes processes and verification of the report.
SROI has many similarities with other approaches and these are set out in the
Resources section (page 80).
2 How SROI Can Help You
An SROI analysis can fulfil a range of purposes. It can be used as a tool for strategic
planning and improving, for communicating impact and attracting investment, or
for making investment decisions. It can help guide choices that managers face when
deciding where they should spend time and money.
SROI can help you improve services by:
• facilitating strategic discussions and helping you under stand and maximise the
social value an activity creates;
• helping you target appropriate resources at managing unexpected outcomes, both
positive and negative;
• demonstrating the importance of working with other organisations and people that
have a contribution to make in creating change;
• identifying common ground between what an organisation wants to achieve and
what its stakeholders want to achieve, helping to maximise social value;
• creating a formal dialogue with stakeholders that enables them to hold the service to
account and involves them meaningfully in service design.
SROI can help make your organisation more sustainable by:
• raising your profile;
• improving your case for further funding;
• making your tenders more persuasive.
3 In the UK, HM Treasury maintains guidance on the methodology that should be used to make an economic assessment of the
social costs and benefits of all new policies, projects and programmes. This guidance is set out in the Green Book. In the Green
Book the idea of additionality is comparable with impact in SROI.
10 A guide to Social Return on Investment
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