ISG is bringing greater rigour and accountability into measuring the social value of its projects by teaming up with leading technology company – Social Profit Calculator. The deal sees ISG become one of the first UK contractors to provide customers with an accurate and quantifiable social, fiscal and economic impact measurement tool for social value activities undertaken throughout the delivery of a project.
Calculations such as the economic multiplier effect of capital investment or Social Return on Investment (SROI) are well-understood, but have previously required a costly and time-consuming bespoke research exercise to be performed, and invariably are viewed as a ‘one off’ small scale calculation. Yet these are important considerations for ISG’s customers, especially those in the public sector. Under the Social Value Act of 2012, commissioners must consider whether the services they are going to buy, or the way they are going to buy them, could secure social, economic and environmental benefits for their area or stakeholders.
Social Profit Calculator uses multiple socio-economic data sets, including a full range of HM Treasury Green Book impact metrics, and advanced analytics to ascribe a financial value to social initiatives, so that stakeholders can have meaningful and data driven conversations about optimum social outcomes for individual projects. ISG has also collaborated on the development of an Operational Social Value measurement that provides customers with tangible social impact data on the operation of new facilities over their lifespan – an innovation that could prove highly influential in planning applications.
Dr Vicky Hutchinson, ISG’s national frameworks social responsibility manager, commented: “Social value is becoming an increasingly important element of procurement decisions, especially in the public-sector arena. We can maximise the social impact of capital investment by bringing greater rigour to the process of planning and measuring social value, resulting in better informed decision making and greater benefit to our local communities and regional economies.
“What has proved extremely interesting is back-testing the Social Profit Calculator on previous projects, and what has emerged for ISG is a more nuanced approach to future conversations on social value with our customers, which is grounded in verifiable data. The maximum monetary outcome of a social value programme, may not ultimately provide the optimum social and community outcome of this investment, so data is now giving us the ability to explore the best possible options for each situation.
“The Operational Social Value measurement is an exciting development to support our customers at the early planning stages, bringing an additional data driven capability to the decision-making process and helping maximise the lifecycle social value outcomes for all new developments.”
Mark Bolger, CEO for Social Profit Calculator commented: “We are the only organisation in the UK with an accredited software platform by Social Value UK and Social Value International, and these credentials proved highly influential in our collaboration with ISG. The increasing focus and scrutiny on the wider social implications of development spend demands real rigour in the evaluation process, and we believe that our platform and partnership with ISG brings the most advanced and all-encompassing solution to market.”
