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Social value

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Question These are questions that commissioners should ask as part of the market management process Recommendation These are recommendations for what a market manager should do to improve the performance of the market Link to another toolkit Link through to other checklists about good market management, or return to an earlier set of questions

Embed community engagement requirements in pre-procurement stage with measurable community engagement requirements

Need

Suppliers incentivised to engage with the local communities and co-design services where appropriate.

Problem

Providers recognise that community engagement will lead to better outcomes, but commissioners need to understand that sufficient incentive for providers to engage with the community, built into the contract, will send a clear message of the importance of community engagement to the market, and hence strengthen the ability of providers to do so.

Solution

Commissioners will need to discuss community engagement requirements with the market early on. They can then embed specific community requirements into the bid process with a means of measuring and quantifying levels of engagement.

Due to the way social services, Work Programme geographies and local councils are organised, there is already a good framework for engaging with local communities. The challenge lies in the fact that different geographies are organised around similar locations, meaning an end to end view of the system can be fragmented.

Due to the way police forces, courts and probation services are organised, there is already a good framework for engaging with local communities. The challenge lies in the fact that different geographies are organised around similar locations, meaning an end to end view of the system can be fragmented.

Review incentive structure and consider alternative incentives

Need

Suppliers incentivised to engage with the local communities and co-design services where appropriate.

Problem

Incentives designed to promote community engagement in service design are not prompting the market boost engagement.

Solution

If incentives to promote community engagement are not stimulating the market then alternative incentives will need to be considered. Embedding community engagement into the social value award criteria of a bid may be one way of illustrating the importance of community engagement. Furthermore, the more involved the community is involved in the design of the service in the pre-market stage (through user forums and consultation), the more likely they are to be involved in the designing of the service and hence, creating a clear incentive for suppliers to further engage.

Community engagement is key to promoting public confidence in the system and working with local businesses to encourage job opportunities. This level of joint working should be encouraged in line with the transparency agenda.

Community engagement is key to promoting public confidence in the system, and this should be encouraged in line with the transparency agenda.

Consult with users through community forums

Need

Relevant user groups to be actively engaged through community groups

Problem

There are defined user groups within a local area not being actively engaged in commissioning process. Defining key groups through which services are targeted at, and drawing on their knowledge on the design of the service will lead to better outcomes

Solution

Build on existing forums to communicate and consult with defined user groups in local area. These forums can come in a number of different shapes, councils should explore options such as area and community forums, faith groups, design charrettes, online consultations and forums, focus groups etc.

The key end user groups to consider include: social services, JobCentrePlus employees, heathcare providers, the public and local community forums.

The key end user groups to consider include police and crime commissioners, court officials, probation officers, community forums and reformed offenders & offender groups

Utilise online networks for communication

Need

An actively engaged local community that have been consulted on the commissioning of a service.

Problem

People are becoming increasingly aware of their local services, and who delivers them. Local authorities will need to ensure that they effectively communicate their plans for commissioning a service and what outcomes they wish to achieve. Where this does not happen, local authorities will not be able to sufficiently draw on the knowledge and insights of their community.

Solution

Local authorities will need to utilise modern technologies as a way of communicating with the local communities. Innovative and engaging web design and online networks such as Twitter are proving useful as a means of engagement.

Community engagement is key to promoting public confidence in the system. As the digital agenda becomes more integral to the provision of local services, employment and educational opportunities could be moved online. One key consideration is on the availability of access to online services to the user groups impacted by the Welfare to Work market.

Community engagement is key to promoting public confidence in the system. Examples of online services to capture information and report performance to the public in this sector are growing, and will support developments in the Digital Agenda.

Draft information sharing agreement

Need

A means of sharing information across public sector bodies and with suppliers. Information sharing provides a clear vision provides and a point of reference to help decision-making. Identifying who shares that vision makes it easier to establish who is willing to contribute to the goals of local service redesign.

Problem

A historic lack of communication between public bodies, coupled with confusion on issues such as data protection, governance and implementation, all leading to a reluctance to share information.

Solution

A high-level agreement to share information should be reached and defined using an information sharing protocol, or some other partnership agreement. The data to be shared should then be defined and agreed within an information sharing agreement. This will set out the necessary details to share relevant information appropriately. It is a good idea to complete an information sharing agreement with partners to ensure that the information entered is correct, as this will be used to transfer the information between partners. An information sharing agreement template can be found here.

Data sharing between departments is a critical factor in the success of joint working and enabling contractors to develop more integrated and creative solutions to tough policy challenges. Suppliers feel that central government still requires a more effective and open culture that enables suppliers to have access to relevant data as early as possible to determine the most achievable solutions.

Individual data is key to understanding the end user groups. Work to share data between HMRC and DWP to provide a more seamless end user experience is already in practice, but more work to join up across the public sector could be done. However, data privacy issues and public perception of missuse of data will need to be monitored.

Due to the sensitive nature and data security concerns around individuals, this can often be seen as difficult. However, early attempts to define data sharing arrangements at the start of the work will facilitate development during the programme.

Request for demand projection in ITT

Need

Market to have the access to the data required to accurately understand the demand challenges of the local area.

Problem

Local authorities do not possess strong enough data on their local area for the market to design innovative solutions around.

Solution

If suppliers in the market have access to data on the local area, that can assist both the local authority and supplier in better understanding their local area and design better outcomes, then commissioners should request that this data is made available to in the invitation to tender (ITT)

Embed social value priorities clearly in business case and ITT

Need

Market being absolutely clear on the social value goals of the local authority and partnering public bodies.

Problem

The Public Services (Social Value) Act 2012 has provided an opportunity for social value to play an increasingly important role in commissioning. However providers are not made aware of a councils social value priorities early enough and are therefore not able to incorporate into their bids as much as would be possible.

Solution

Utilise market testing techniques to scope what is out there, talk to the market from early on about what you want to achieve. A clear Social Value Plan, incorporated into a Market Position Statement will help explicitly embed social value into the business case and ITT.

Jointly commission external analytics

Need

Market to have the access to the data required to accurately understand the demand challenges of the local area.

Problem

Public sector data and/or data produced by suppliers is not of a high enough standard to accurately project future demand.

Solution

Having the right data on local demand is crucial to scoping outcomes and enabling the market to tailor solutions to the right customer needs. Local authorities can jointly commissioning for external analytics, with other local public sector bodies, to undergo in-depth analysis into local demand and produce clear demand projections that can be translated to the market through tools such as Market Position Statements.

Joint analysis of data is one important element of effective joint working between government and external partners. Often the market will have perspectives on the user and local demand which can complement and refine internal data.

Increase the weighing of social value in the award

Need

Market clear on importance of social value is to the commissioning authority and attributing sufficient importance to social value in their bids.

Problem

There is often a disparity in the levels of social value wished to be achieved, and the actual weighting of social value given in the ITT. This results in suppliers not being clear on to what extent they should reflect social value goals in their bids.

Solution

Commissioners need to send clear signals on the importance of social value to the market. One way to do this is to significantly increase the weighting of social value in the award criteria, which makes it clear to suppliers that social value will be a significant factor in the bid decision. Otherwise, suppliers may assume that cost remains the primary consideration. For more information this social value toolkit from Croydon council is available here.

Utilise data to scope demand of area

Need

Stronger understanding of local demand across the all local public sector bodies.

Problem

Information is being shared but not being fully utilised.

Solution

With the right data and information sharing agreements, the solution may lie in governance structures and cross-organisational communication. Information sharing practices needs to be embedded into all organisations long-term processes. Staff too need to be trained and possess the right knowledge to share information sufficiently; governance structures are in place to allow for long-term conversations about sharing information. The CEIS has a toolkit to help organisations embed information sharing available here.

Jointly commission external analytics

Need

Market to have the access to the data required to accurately understand the demand challenges of the local area.

Problem

Public sector data and/or data produced by suppliers is not of a high enough standard to accurately project future demand.

Solution

Having the right data on local demand is crucial to scoping outcomes and enabling the market to tailor solutions to the right customer needs. Local authorities can jointly commissioning for external analytics, with other local public sector bodies, to undergo in-depth analysis into local demand and produce clear demand projections that can be translated to the market through tools such as Market Position Statements.

Joint analysis of data is one important element of effective joint working between government and external partners. Often the market will have perspectives on the user and local demand which can complement and refine internal data.

Decide how to score social value and embed into contract

Need

Suppliers in the market should have an unambiguos picture from the customer of social value is reflected in the way bids are assessed.

Problem

Suppliers are often not clear on how exactly social value will be reflected in the contract award process, with the result that a customer's social value goals may not be accurately reflected in the bids coming in from suppliers.

Solution

If a council's strategic social value goals are imperative to the future design and delivery of a particular service, then commissioners must effectively embed social value in the scoring criteria for bids and explicitly state this in the invitation to tender (ITT) or invitation to participate in dialogue (ITPD). In this way, all potential suppliers in the market can be clear about the expectations of the customer around the future model of service delivery. If it is determined that social value goals, while important, are not imperative to the outcomes sought from the contracting process, social value can must still be an imperative to drive supplier behaviour through being included as a performance obligation.

Many suppliers tell the CBI that social value is still not effectively represented in many contracts emerging from central government, where the award criteria are in their experience still largely weighted towards cost and value, in effect even if not by intention. Central government departments, like local authorities, should have a clear vision for their supplier markets onwhat their priorities for creating social value are, and reflect them subsequently in the design of their procurement processes.

There are significant links to social value applied to getting people back into work. Early investment in educational areas (both training and re-training) can have a significant impact on employability and on a reduction of the cost to manage individuals through the welfare-to-work market. Social value benefits can be made tangible and should be built into contracts where possible.

The inclusion of performance measures around re-offending and employment rates of ex-offenders, and positive publication of benefits from the procurement, would all help to embed social value goals at the heart of future contracts.

Assist provider in advertising user engagement opportunities

Need

Suppliers utilising data on local demand trends and community aware of opportunities to actively engage in the scoping of service outcomes.

Problem

There is a strong business case for community involvement in the designing of local services. Whilst suppliers may have access to sufficient data they will some many not have the access, or adequate profile, to the relevant groups of people whilst designing a service.

Solution

Local authorities will need to assist suppliers in accessing the relevant communities. Suppliers may have already created opportunities to develop further community insight and with assistance from the contracting authority in advertising and promoting these available opportunities through their networks will help community engagement come to life.

Due to the way social services, Work Programme geographies and local councils are organised, there is already a good framework for engaging with local communities. The challenge lies in the fact that different geographies are organised around similar locations, meaning an end-to-end view of the system can be fragmented.

Due to the way police forces, courts and probation services are organised, there is already a good framework for engaging with local communities. The challenge lies in the fact that different geographies are organised around similar locations, meaning an end to end view of the system can be fragmented.

Build service forum to engage community

Need

Communities actively engaged through appropriate avenues

Problem

Suppliers not equipped to engage with local communities whilst designing service.

Solution

Local authorities can build a forum, with their suppliers, through which local people can meet with service providers and look at possible solutions to local issues. Building these forums together with service providers will enable the supplier to better utilise the data and engagement to design better services. These forums can come in a number of different shapes, councils should explore options such as area and community forums, design charrettes, online consultations and forums, focus groups etc.

Due to the way social services, Work Programme geographies and local councils are organised, there is already a good framework for engaging with local communities. The challenge lies in the fact that different geographies are organised around similar locations, meaning an end to end view of the system can be fragmented.

Due to the way police forces, courts and probation services are organised, there is already a good framework for engaging with local communities. The challenge lies in the fact that different geographies are organised around similar locations, meaning an end to end view of the system can be fragmented.

Turn Social Value Plan into measurable KPIs and utilise SROI tools

Need

Social value to outcomes that are measurable, quantifiable and evaluated.

Problem

Social value is often subjective, and approaches to boost social value will differ across local authorities. Regardless of approach social value will need to be a measurable KPI so that it can be measured and benchmarked against other approaches.

Solution

To be effective there must be robust monitoring against KPIs that are clearly drafted, achievable and reflect the importance of social value given in the contract. Commissioners should utilise SROI tools measure the value of social value, but also work with neighbouring local authorities and other local public bodies to measure social value with similar metrics so that the data is comparable.

Commercial departments across central government should have strategies for determining how social value priorities can be effectively reflected in all new contracts.

While the Work Programme has incentivised demand management, more can be done to make this link more effective for long term outcomes. Including KPIs that measure sustained employment levels, or wage progression will take longer to measure, but will prove a better indicator of sucess.

The inclusion of performance measures around re-offending, and employment rates of ex-offenders and positive publication of benefits from the procurment would all increase the social value of the contract.

Continue to monitor, review and benchmark social benefit

Need

Social value outcomes that are measurable, quantifiable and evaluated.

Problem

Commissioners aim to incorporate social value outcomes into their service but have not developed an appropriate means of evaluating whether the social value activities in the service are delivering wider benefit.

Solution

Utilise break clauses within contract as opportunities to measure social value aspects of the service with the method that you have chosen and ensure you can benchmark the service outcomes across neighbouring councils. Such break clauses will give commissioners and suppliers the opportunity to further develop how they deliver social value for the local area, and for whom.