Overview of the Total Value Framework
Our research to date with leading companies highlights that measuring the social value created is perhaps the biggest challenge facing companies today.
To contribute to the thinking on measuring shared value, Net Balance (2013) has developed a Total Value Creation Framework. The framework aims to help companies measure and report the total value they create – economic, social and environmental value – from their products and services, in dollar terms. We believe this framework is well placed to assist companies to measure the value created from shared value initiatives.
The framework draws on the International Integrated Reporting Framework developed by the International Integrated Reporting Council (2013), combined with soft system thinking and tools such as stakeholder engagement, program logic and Social Return on Investment. The framework helps companies to explicitly identify, map and value the inputs, outputs and outcomes created through the use of their product or service – the outcomes shared by companies, customers and broader stakeholder groups that have been materially affected.
Two key strengths of the framework are that it explicitly defines:
- The social value created – the human, intellectual, environmental and social & relationship value that is created by a shared value initiative
- The value created for all the stakeholders that are materially affected.
The ability to measure the total value generated from shared value initiatives is essential in the long term success of a company. Measuring the total value and impact of initiatives, will build stronger relationships and trust with stakeholders, identify improvements to initiatives to create more value as well as secure funding for future initiatives. In time, total value creation may also be further incorporated into the valuation of companies along with financial performance and brand value.
NDS Outcomes Framework
Net Balance Research Institute has been commissioned by National Disability Services (NDS) to develop a framework and tools to assist disability service providers to measure and report the social outcomes they achieve through delivering services. This project aims to promote and encourage a more independent and thriving NGO sector whilst maximising choices and opportunities for people with a disability, their families and carers.
Major project outcomes include:
- Providing NGOs with the resources to accurately measure and improve their social impact
- Assisting NGOs to provide people with a disability, their families and carers, more choice and opportunities by being able to demonstrate their impact
- Helping NGOs to attract and form partnerships with potential investors, including government, by providing them with a methodology to demonstrate their social impact
- Assisting disability service providers to demonstrate their impact to attract potential investors and partnerships and/or identify potential fundraising opportunities.
These will be critical in the enabling the successful transition of NGOs to the National Disability Insurance Scheme (NDIS) in 2018.
For more information contact the Research Institute.