SROI KTP awarded 'Outstanding' rating

Our KTP with London South Bank University has now been given the rare 'Outstanding' rating - the highest possible award - by the KTP Grading Panel.

The ground-breaking new metric developed in partnership with LSBU is bridging the gap between business and the not-for-profit sector by providing a robust way of calculating social return on investment (SROI).

Measuring return on investment is one of the main yardsticks we use the judge the success of a campaign, project or initiative. But a project may well deliver much more than a boost to the bottom line including wide-reaching social or environmental impacts that are felt for many years to come.

In the past, these 'softer' outcomes have been difficult to measure and quantify. Now a Knowledge Transfer Partnership (KTP) between LSBU and Construction Youth Trust has developed a robust metric for measuring social return on investment (SROI) that could become standard practice across the industry. 

'Construction is facing a major skills shortage at the moment', says Jemma Bridgeman. KTP Associate who put the metric together. 'Contractors need to reach out to young people and really promote opportunities within the industy. At the same time, they're being asked to show how they can deliver social as well as financial value, while not-for-profits need to be able to demonstrate value for money in a more competitive funding environment.'

Jemma's metri draws on data from two of our programmes, Budding Brunels and Budding Builders.  She looked at a wide range of factors, from the value of the new skills young people were gaining to the impact of increased confidence and aspirations. 'As well as drawing on existing analysis and financial proxies, I had to establish new ones', she says. 'That will expand our knowledge basem created a resource that will help us develop more detailed measures in future.'

The results showed an impressive SROI for both projects: £5.43 for every £1 invested for Budding Brunels, and £6.51 for Budding Builders. Reaction has been very positive.

'The SROI Analysis has been of great value to us. It has turned the value of the programme into metrics that can be used across the industry, and helped us ensure that we are delivered maximum social social impact,' says Sue Hardy of the Network Rail Crossrail programme, partner on the Brunels project.

Alison Symmers of thw Willmott Dixon Foundation, which provided financial support for the KTP, commented: 'This provides evidence to support our belief that businesses can make a huge difference in their local communities.'

Our KTP with London South Bank University has now been given the rare 'Outstanding' rating - the highest possible award - by the KTP Grading Panel.

This article was originally printed in the LSBU South Bank Magazine.