Value Creation

We seek to create value by taking the following steps:

1.  Specifying clearly and comprehensively the valuable results disadvantaged people receive from efforts to help them and the theory of change by which those results are achieved

2.  Recording the disadvantages prospective beneficiaries have and their real income/consumption levels absent intervention

3.  Measuring the marginal results beneficiaries receive on account of the intervention and doing this in a highly cost-effective manner (i.e., so that the usefulness per cost of this information reaches an appropriate level)

4.  Doing results measurements in standard social return on investment (SROI) terms that focus on real income (or consumption) increases* as well as benefits to the larger society, so the cost-effectiveness of evaluated programs can be compared fairly to inform donation and operational decisions

5.  Providing SROI variants that include additional benefits or costs (e.g., the value of volunteered time) of interest to funders and suppliers but not included in the standard SROI estimate

6.  Analyzing the SROI estimates with funders and suppliers to identify ways to improve results, lower costs, identify, and manage risks of non-success, and focus more directly on desired results

7.  Promoting the use of standard business practices by human service suppliers to produce and obtain results effectively and raise the SROIs of their programs

8.  Striving to provide justice in the form of meaningful opportunities for disadvantaged people to improve their lives at low cost

9.  Using actual markets to price the offered opportunities for improvement, the successful results, and the result risks, so funders have options to purchase beneficial results at pre-set prices that reflect a supplier’s actual cost and risks of producing the purchased result

10.  Helping worthy programs raise funds for themselves

11.  Helping donors find best places to fund

12.  Credibly measuring, documenting, and, wherever appropriate, publicizing SMI results

13.  Prototyping mechanisms that enable a more value-driven approach to philanthropy (such as performance guarantees)

14.  Working cooperatively with other institutions and individuals when appropriate

15.  Doing everything we recommend others do ourselves

*We recommend valuing results in terms of their real income value to beneficiaries – what they would or should pay for the results