Complexities of Measuring Social Value

I enjoyed reading Measuring Social Value by Geoff Mulgan and was reassured by his multi-faceted and flexible approach to measuring social value. The model that Mulgan proposes is informative and comprehensive. I often hear social value measurement referred to as static measurement that seems highly unrealistic. And, if “we are what we measure,” then a poor measurement is detrimental to a venture being effective.

The success of the UK’s National Health Service, as Geoff describes, is centered in its ability to have an integrated approach to providing health services. A question arises for me regarding the implications for programs that bring social value that operate in silos. How do we (as supporters of social enterprise and innovation) provide tools and resources to incentivize more integrated approaches to these organizations’ work? If we are able to keep our eye on the prize, of serving more effectively the populations in need, more integrated approach to all services is an effective solution.

Geoff continues in the article to describe the “framework for thinking about social value” and how the “judgments” of the framework are categorized into four assessments: strategic fit, potential health outcomes, cost savings and economic effects, and risks associated with implementation. A tool based on judgments is what the field needs, but I am wary if this will appease funders who are used to a single bottom line and objective metrics. Geoff offers a necessary caveat that while NHS has clear supplies and demands, for many NGOs “supply and demand are fuzzier, and each field brings with it a different set of concerns.” Translated into how this affects funders, Geoff explains how “the greatest contribution that funders can make is often not to measure value, but to forge the links between supply and demand that will later generate value.” This method seems to be realistic and would be a boon for organizations as they collaborate with funders to increase their focus and ability to understand the complexity of their work, long-term impact and potential unintended consequences.

The idea of turning “latent demand into effective demand” is terrific and provides the hope and optimism for innovators to be effective change agents, supported, rather than hindered, by the foundations that fund their projects. What innovations would be likely to arise if funding constraints were assuaged and funders were able to better connect supply and demand?