There is a new craze moving through sustainability teams. That craze is Social Value. It’s like the gold rush of the 19th Century. Ok, I admit, I greatly exaggerate. But observing the approach taken by procurers, corporate’s, service providers and NGOs is fascinating. Only instead of rushing for precious metals, there’s a rush for a perceived value that is generated from an elaborate spreadsheet.
A brief Catch-up
While Social Value came to notoriety in 2012 with the establishment of the Social Value Act, the regulation has made little impact. While generally well-intentioned, has lacked guidance, direction and proved somewhat confusing for all involved.
Occasional reappearances and drives progressing the Act have been made, but the tide truly turned for the masses in 2018. David Liddington provided a clear steer with his speech in June: “it is right that we use the government’s purchasing power to benefit society”. With this, the jockeying for position ramped up.
The Government has now released its consultation on its new approach to Social Value – it’s certainly an improvement. There is direction, and clarity. Read Acclaro’s account of the consultation. The short version is, more defined social value guidance for Central Government contracts, and a minimum weighting of 10% on contracts….
10%! – This now makes social value a competitive bid winner in a tender.
Current position – Measure my Social Value Now!
How do we measure Social Value seems to be the big question. Can we provide £800k in Social Value, or £1 million? Is this value larger than our competitors? Which tools should we use to calculate how much value we create? At Acclaro and the SFMI, we hear these questions frequently. We see a massive fixation on the numbers, and this is understandable, but not progressive.
But for a company to fixate on measuring their Social Value output without a fundamental approach to support the numbers means that risk awaits the unprepared. It is a dangerous tight rope to walk.
The Problem – Where Is The Substance To The Value?
With many trying to pull numbers from the sky using one of a multitude of tools, we are on the cusp of the new social version of greenwash. Social-wash (seems to fit). Tools are often based on what a company can provide in a theoretical sense.
X numbers of apprentices = £x’s of social Value.
But when a company bids, do they have the necessary narrative to back up their claims? In the short-term, it probably won’t matter. Companies will bid with their perceived Social Value number, and the highest will gain the points on the tender process.
But… what happens when a company is held account to that number? Can they be held to account through a contract if claimed that they can contribute £x million of social value? Probably, Yes. If not then it can be forgotten. Mobilisation of a contract will no doubt result in the 15 claimed apprentices turning to 5, or even zero. Also, will those apprentices be targeted groups of people that generate real value for the needs of the community? That will depend on the ethics and culture of the business making promises. I predict that the short term will become a period of Social Value without accountability. But things will change, and it will be the responsible business leaders that prosper.
Enter the True Leaders
There are real leaders in this space in the FM industry. The SFMI assesses FM companies annually. For example, in our annual assessment, we can state clearly that Vinci Facilities and Engie are ahead of the game on Social Value. There are others who are making progress as well because they see the long term value.
So now is the time for leaders to shine. Those companies who have a solid strategic base of social value embedded into their company culture will be able to provide their numbers alongside the important narrative that validates their claim. They can give past performance to instil confidence, and they can give systems and strategies on the way that Social Value is generated with their clients.
It is for this reason, that Acclaro and the SFMI are measurement agnostic. We have developed the Acclaro Social Value Programme that is tailored to developing leadership in this space, and to give a meaningful substance to the numbers.
We are not about the numbers first. Numbers are the product at the end, but so many are seeing the numbers as the beginning and the endgame. We help a company to develop a structured approach to drive social value to truly benefit society based on the needs of the community. We follow a specified approach summarised below
Our approach is to base the numbers on a solid strategic foundation of generating Social Value at both the corporate and contractual level. If a bid contains a 15% weighting of social value, it is a natural progression to require validation of those numbers. Therefore in time, half of that 15% is the measured output number, and half will be the narrative, strategy and validation of those numbers.
This is where the Acclaro Social Value Programme is aimed at. In the Acclaro approach, we; assess, engage, define, execute and operate Social Value in a fit that is right for your company. You can be a company looking to create value for your clients, or you could be a client that is looking to generate social value from procurement. Our approach follows a similar approach with different detail. We build purpose driven leaders.
Acclaro helps you to plan for the long term and develop your approach to Social Value. We give you confidence in your numbers whether bidding for contracts, or procuring for services. Contact us to discuss further