There are some obvious truths about the current path we are collectively treading, the alternative route we need to travel, and what is required to help us change our trajectory.

This blog doesn’t really say anything new - instead it is an attempt to bring these issues together and reinforce the message that we know what is required to get to where we need to be.

Where we find ourselves today

The first obvious truth is that impact management and sustainability are more critical than ever. And we now find ourselves at a crucial fork in the road.

The signs are clear.

One path, the one we have largely been walking, leads to certain uncertainty. A destination of environmental and social breakdown.

The other path is less familiar and will likely have some bumps in the road, but it provides greater certainty. A certainty of increasing opportunities, equity, and sustainable value creation.

This path is the one that organisations and leaders of tomorrow will tread. It is the only path where we have a viable future.

Getting capital to where it’s needed

The second obvious truth is, there is no final destination. As always, we need to continue advancing, and crucial to this is increased capital to where it is needed - to enterprises that provide solutions to the challenges we face.

Capital is like energy, a tool through which to change the world, to create something innovative and revolutionary. It can create freedom. At an individual level it is the freedom of the entrepreneur to build a business that does good and makes money. At a deeper level capital enables humanity to realise its potential. Capital wants to be optimised for humanity, and impact investing is the route.  

The question is what is the highest and best use of capital. (see Jed Emerson, The Purpose of Capital). 

But another inescapable fact is the significant gap in capital especially necessary for new and unproven enterprises or those with higher risks and higher social returns. 

Catalytic capital addresses this need and can accelerate impacts to the levels required. The difficulties in accessing catalytic capital where enterprises and investors need to demonstrate their impact and viability is currently one factor that limits the flow of capital to where it can create systemic change.

To access catalytic capital investors need to be able to build the business case. The ability to communicate impact returns is dependent on the enterprises themselves having the systems in place to measure, manage, and report their impacts.

Systematic management of impacts

The final obvious truth is that we do know how to manage impacts more effectively than much of current practice. It undoubtedly requires an approach that much like financial accounting does not view reporting as the driving force, but instead as the consequence of an internal systematic approach.

Integrating impact management into the structures, systems, and skills of organisations is key to unlocking its potential. Only when decisions are effectively informed by the effects on
people and the planet will we see the true social value of investing our resources.

Coming back to the journey analogy, there is some good news - no organisation is at the very beginning. We all have some knowledge and evidence of what works and what doesn’t and ways that this influences the choices we make. Building on our foundations, we can develop and embed ever-increasing capabilities to enhance our long-term value and contributions to sustainable development.

Finishing with another obvious truism: The path we need to take is transformative, it may not be easy, but we know what is required to get us there.

If you are a business or investor interested in discussing impact management practices that support your business plans to access more catalytic capital and to do more good, please reach out. We are running an Impact Management Compass Programme - a new programme rooted in the principles of continuous improvement and international standards that supports both enterprises and investors to develop their own capabilities.

If you are interested to find out more, please express an interest here:
https://form.jotform.com/251303314417041

We are running a 'free' short introductory session on ‘Setting Impact Thresholds & Targets’, on 8th July 10-1045am - so that you can meet us, learn about how to set impact targets and find out more about the Impact Management Compass Programme.

Register here:
https://www.eventbrite.co.uk/e/impact-in-action-setting-targets-to-optimise-impact-
performance-tickets-1361545582489?aff=oddtdtcreator

Improving the Invisible Hand: The Case for Valuation to Improve our Exchange System

The first step, then, is to bring together employees to identify the business process steps (value chain mapping) from start to finish to then identify where waste can be reduced at each step. Kaizen is a business method that ensures that all employees are involved in business improvement processes - thus ensuring that people are happy at work! And it is from here that waste can be identified and strategies developed to better utilise technology and AI to improve business performance. Using kaizen methods brings the following benefits: 

1. Employees are happy - greater employee satisfaction

2. Digital solutions add value to business processes

3. Cost savings = more profit 

4. Customer satisfaction

5. Sustainable business solutions

"Kaizen is a healthy dissatisfaction with the status quo" (Kaizen Made Easy)

You can find out more about how to identify waste in your company by watching our short Kaizen Blitz video, Continuous Improvement: Lean Thinking & Reducing Waste: 

We also run and facilitate short practical workshops using kaizen lean thinking methods. Contact us to book a Kaizen Blitz session - for a small investment we will help you to make savings, increase your reserves and increase your bottom line. The Blitz sessions are also for the private and public sectors. Sign up to receive news and updates or book a call today to continuously improve with kaizen. 

Get a 1:1 call to discuss your needs:

Step by Step Change for the Better

Continuous Improvement with Natasha Jolob of Kai-zen

Our founder and director shares how she became qualified to support individuals, the community and businesses to change for the better through inner work – which will then result in change in the outside world.

1. I lost my mum at an early age - this taught me about the meaning of life .. about love and loss, how to self-care & self-heal myself without the nurturing love of a mother. Her dying of breast cancer drew me to the world of holistic health, natural healing and using nature to prevent disease and sickness. I have learnt about and use herbalism, natural medicine and good nutrition to optimise my health and I now share this knowledge through my work.
2. My family once had everything and lost everything - I know what it feels like to have the rug pulled from under your feet, and how to deal with that - that anything can happen, that life is precarious, that money & materialism are just things & have very little value.
   
3. In my early 20s I spent a few months volunteering with a Tibetan Buddhist Ladakhi family in a remote village in the Himalayas. I lived a simple life with no western luxuries, living off the land, learning about community development and how to be happy with absolutely nothing. I learnt from Tibetan Buddhist monks and Eastern spirituality about the cycles of life, karma, and creation & destruction.
4. I spent three years living in the Philippines working on peace-building projects, learning about different cultures and grassroots communities untouched by western ways, living happiness, in perfect harmony with nature. I also saw poverty, deprivation and war like you’ve never known. I have a deep understanding and knowledge about the impact of globalisation and western imperialism on local communities.
5. I am now a social entrepreneur and I work hard at the grassroots in the heart of the community - I empathise and connect to the people and I fight for social justice – because I know what it feels like to experience hardship. I support the growth of the social enterprises and the social economy through providing business and finance/ investment advice so that people are protected loved and taken care of. I volunteer for charities and I strive to make the world a better place.
6. During the pandemic I felt anxious and afraid and I knew I had to turn inwards. I did a meditation teacher training course and since then I have explored myself, a journey of inner work and healing, working with my shadow, working with energy, shining a light on my dark side, my sub conscious beliefs and behaviours, clearing and shifting to find my true essence. I meditate every single day to observe myself and to tune into higher states of consciousness. I know that in order to change the outside world, I must work on my inner self. I now share my learnings with others in the community and on a one-to-one basis.
   
7. I practice martial arts every day and I am now training for my 3rd Dan. Every time I practice I am challenged: I train my body to be fit and strong, I fall down I get up, I am afraid and I get hit by men. But I fight no matter what, I push myself over my limits, I seek to conquer myself, through self-mastery and I learnt about the meaning of life. I study the philosophy of martial arts and samurai and use it in my personal development. Zen, chi/ki/qi prana, I use energy and I know how to master the mind. I have learnt the secrets of the samurai.
8. I practice ashtanga yoga at least twice a week to clear my body of pain, stress, toxins and to restore my natural energy. When on the mat I connect to my inner world exploring observing and coming home.. finding myself, my breath, to raise my state of conscious being. I have experienced bliss through this pathway.
9. I use alternative therapies such as acupuncture, regularly, to remove blocks, establish harmony in my energy, revitalise my body and clear out toxic energy. This enables my energy to better flow naturally and harmoniously and supports my physical health.
10. I read and expand my knowledge every single day. I read philosophy, I listen to sacred text, I learn from geniuses, the philosophers, the Egyptian and Greek gods and goddesses, I have learnt about metaphysics, divination, indigenous cultures, I Ching, Taoism, the divine feminine, Jungian psychology, Eastern spirituality, heart centred living, ancient civilisations, shamans, astrology, quantum physics, alchemy, theurgy & neuroscience. I watch real time astrophysics news every day to measure up the changes happening in the universe and how these affect the earths energy and our physical health and mental well-being. The more I read and learn the more I realise how much we all have to learn.
11. I spend time alone in nature every day I connect to mother earth’s energy, I have learnt about the five elements and how to alchemise elements, the four directions, the wheel of the year, the medicine wheel, the power of crystals and megaliths, how to access earths and cosmic natural energy and sacred waters to detox and revitalise the physical body and improve mind-body-spirit connection.

I’ll be honest with you whilst I have done all of the above I am only at the beginning!!! On rung one of the ladder!! But important is that I am on the ladder! I implore you to take the first steps and get on the ladder. To change the world starts with ourselves – it is imperative that we all do the inner work to raise the level of consciousness for the collective, no matter who you are or what your background is. Get on the ladder!

I am not a psychotherapist or a doctor but I have the knowledge and experience through which to hold the space safely and securely for you to let go, discover, change, improve, express, access higher states of consciousness, and visualise and experience the world of infinite potentiality. Heaven on earth anyone? 

I support individual and community mental health and wellbeing, providing one to one and group holistic health and well-being sessions. If you are a charity or social enterprise I can help you to secure funding to run your own health and mental health sessions and/ or sessions in partnership with me.

https://kai-zenglobal.com/well-being/

Prove and Improve Your Social Impact

Go to our wellbeing page to find out how we can help you.

What we did

We have a long-standing partnership with Wolverhampton Voluntary Sector Council for more than ten years. Working with them is at the heart of our values - to support and work collaboratively with local infrastructure, adding value to their existing capacity-building services. 

Here is a summary of our work to date:

• A Local Authority Business Case for Social Investment into Youth Services, and developed a strategic plan and delivery model for the Youth Engagement Fund that included a quality assured supply chain of local VCS providers
• Secured funding from NOMS ESF-CFO tender. Set up and developed a local consortium - set up the governance &  developed a supply chain of quality assured VCS organisations; facilitated VCS strategic planning and developed a strategic plan covering all outcomes pathways; developed a delivery model; and secured support from large scale prime contractors (Serco & Ingeus)
• Secured funding from the Connect Fund and supported the capacity-building team to deliver enterprise and investment workshops and develop and support a pipeline of local VCS organisations
• Developed a proposal and secured multi-year funding from the CCG Wolverhampton for a local consortium that delivers one to one and group support to prevent hospital admissions. We currently performance manage this supply chain. We undertook a full Social Return on Investment Evaluation of the project, that also included evaluation of the Social Prescribing service.
• Supported a Public Health public sector partnership project that resulted in the development of social investment proposition 
• Secured funding from the Commissioning for Better Outcomes Fund to develop a new funding and delivery model for the CCG Wolverhampton - a Social Impact Bond. We project managed the activity and recruited an expert team. We developed the structure and model, undertook an evaluation of current costs and outcomes, developed a baseline, developed the outcomes and payment by results model, and developed the financial model and cashflow. 
• Secured funding from the Life Chances Fund to develop a Social Investment Funding & Delivery Model that aimed to reduce A&E hospital admissions. We developed the business case in full. 
• Undertook a Social Return on Investment Evaluation of the four health and mental health projects that are being supported by WVSC, including the Social Prescribing service. See here for a summary of the SROI.
• Undertook a review of the RVS NHS Responders Programme in Wolverhampton 

Outcomes

• Increased funding and investment for the local voluntary and community sector
• Fiscal savings for local public sector agencies
• Increased capacity, skills, knowledge in social investment

Ian Darch, CEO says, "I’ve really enjoyed working with you (Natasha) and seeing your commitment and skill – look forward to continuing to do so in the future". 

Our aim was to develop the capacity of local infrastructure support organisations in social enterprise and investment across the East and West Midlands.

We designed three projects, secured funding from the Connect Fund and delivered these projects with local partners Voluntary Action Leicestershire, Wolverhampton Voluntary Sector Council, and Co-operative and Social Enterprises Development Agency. 

Social enterprise and investment workshops were held across the local areas in the Midlands, and training was delivered to CVS workers in Wolverhampton, Derby/shire and Leicester/shire. As a result a good diverse pipeline of organisations from across the Midlands was developed and targeted investment support and advice was provided. A pipeline of 40 local voluntary and community sector groups were supported in partnership with Wolverhampton Voluntary Sector Council, and more than 1000 groups were reached, receiving key messages about trading, social enterprise & social investment.

Across the East Midlands and in partnership with Co-operative & Social Enterprise Development Agency, Northamptonshire Voluntary Action, Lincolnshire Community & Voluntary Service, Amber Valley CVS, Derbyshire Dales CVS, Erewash Voluntary Action & Nottingham CVS we delivered 10 social enterprise & investment workshops and developed and supported a pipeline of 77 local organisations.

Testimonials:

"Coming into this knowing nothing to little about business finance I now have a decent understanding of the starting point to seeking finance", workshop participant, Social Enterprise & Investment Workshop, Derbyshire.

"Provoked thinking and increased confidence to progress further", workshop participant, Trading Strategies workshop, Leicestershire.

"Really helpful, helped me to think of a different way forward", workshop participant, Social Enterprise & Investment Workshop, Northamptonshire.

More recently we initiated and facilitated a partnership with local intermediaries Sortified, CERTs, and Co-operative and Social Enterprise Development Agency with the end goal of providing the right business advice and finance to support social enterprises in the East Midlands during the pandemic (and challenging times). A project called Sensemakers was co-designed. Outputs included case studies of social enterprises that survived and thrived through the pandemic, recommendations on how to support them during the post covid recovery phase and resources and tools to help others in the future.

Outcomes

Increased skills and knowledge in enterprise and investment of voluntary and community sector (VCS) organisations

Increased skills and knowledge in enterprise and investment of CVS development workers 

Increased awareness of social investment and what is can be used for

More VCS groups have diversified income sources that includes trading, to support their resilience

International Credit Union Day is an annual celebration of the credit union movement’s hard work and notable achievements. The theme for this year is ‘inspiring hope for a global community’. This article, co-written by social value practitioners, compares and contrasts the impact that two credit unions in two countries have had on people’s lives.

What is the value of a credit union? Its total revenue? The size of its assets? Whilst such figures are obviously significant, they do not represent the ultimate worth of this unique financial institution to its stakeholders.

To identify the real value of credit unions, Social Return On Investment (SROI) can be used. SROI is a principles-based approach that follows a rigorous and credible methodology. It enables us to see clearly the various social/economic/environmental outcomes that an organisation delivers. The relative worth of these outcomes can then be calculated by placing a financial value on them. The results can be used to report back to stakeholders, inform resource allocation, direct policy development and so on.

We were each commissioned to undertake an SROI study: for Donore Credit Union in Dublin, Ireland and for Clockwise Credit Union in Leicester, England. We discussed our respective research during the initial stages of the process and engaged in intermittent discussions afterwards, but our work was conducted entirely independently. Both studies underwent a peer review process and were assured by Social Value International.

Differences

Given the different local contexts, it was natural that there were variations. For instance, the two credit unions have different histories, the local socio-economic contexts were different, they are different in size, and the products and services on offer were different.

The purpose and scope of the studies were also different. This meant that slightly different approaches were adopted, whilst still adhering to the seven principles of social value and following the six stages of an SROI analysis. Donore evaluated a one-year period, but Clockwise used a two-year timeframe, because it felt that some members took longer to experience outcomes.

Donore wanted a high rigour study to satisfy its internal needs, provide evidence to the wider Irish credit union movement and to influence policymakers. Clockwise opted for a lower rigour study because the main purposes were to inform internal management, design a social impact measurement system and develop its wider impact management practice.

The inputs, stakeholders and theories of change/outcomes pathways of the stakeholder groups shared similarities, but they were not identical. There were other differences too. The Donore study placed a greater emphasis on non-members, such as community groups, and calculated the costs of a number of negative outcomes. Clockwise included the fiscal savings to the state and noted, but did not value, possible negative outcomes, as these were not considered material (relevant and significant) for this particular analysis.

Similarities

There were also many commonalties, both between the credit unions themselves (for instance, sharing cooperative values) and their SROI analyses. Similar observations and stakeholder consultation processes took place and these were constrained on either side of the Irish Sea due to coinciding with the spread of Covid-19.

Stakeholder groups for whom value could potentially have been generated were excluded in both of the studies because the outcomes they were experiencing were not felt to be material at that point in time.

Although the social outcomes delivered by both of the credit unions were framed somewhat differently, the same social outcomes stood out as being of great importance to members of both organisations: ‘being able to better manage money’ and ‘reduced stress’.

We both struggled to find appropriate financial proxies for the less tangible outcomes, ‘the sense of belonging’ felt by loyal members of Donore and the value of being part of a cooperative and ‘feeling in control and influencing decisions’ by Clockwise members. Further work in this space is needed, because a sense of belonging and a willingness to cooperate will undoubtedly be important in rebuilding a post-pandemic social economy.

It is particularly interesting to note that despite the disparities outlined, the social return calculated for both of the credit unions was in the same ballpark. Donore, which had taken a very conservative approach to valuation, found that for every €1 worth of investment, in the region of €10 of social value was delivered. The ratio for Clockwise was expressed as a broader range of £1 : £9-£19.

We feel strongly that the social value of an organisation should never be reduced to that final ratio. An SROI analysis is at its most powerful when it is used to learn and inform planning for the future. Both Donore and Clockwise received recommendations to release even more social value over the coming years, through establishing a community fund (Donore) and targeted marketing of the credit union’s services to subgroups of the local population (Donore and Clockwise). Clockwise recommendations included investing in partnerships and further consultations with groups with the most needs, such as ex-offenders and people experiencing homelessness, to design products that are appropriate for them.

In conclusion, the social value that credit unions deliver can be massive and life-changing. We celebrate this on this International Credit Union Day to inspire hope for others across the globe.

The full reports can be found here:
Donore Credit Union
Clockwise Credit Union

Sandra Velthuis, Whitebarn Consulting
Natasha Jolob, Kai-zen Change for Good CIC