The South Australian Government opened its second round of Social Impact Investments, with a focus on better outcomes for children and young people in out-of-home care, and after leaving guardianship. This follows South Australia's first social impact investment in the Aspire homelessness program delivered by The Hutt St Centre.
Interestingly, the Commonwealth Government is providing $5m as partner with the South Australian Treasury Department, as an early foray into learning and engaging in the social impact investment space.
Latitude Network is assisting with the preparation and development of an application focusing on improved outcomes from the residential care context.
New South Wales
The NSW Office of Social Impact Investment (OSII) is reviewing proposals from three organisations focusing on Indigenous employment and empowerment. Latitude Network was been supporting one Indigenous organisation through the 'co-development phase' where OSII collaborated with the social organisation to advise and develop a proposal together. The intent is to support organisations to prepare robust proposals that are more likely to meet Treasury's requirements and be successful through what can sometimes be an arduous 'Joint Development Phase' of financial and contract negotiations to conclude a social benefit (impact) bond legal agreement.
The Victorian Treasury is a long way through negotiations with two organisations in the 'Joint Development Phase' for its next round of social impact bond investments. This round focuses on primary and secondary school aged children who have become disengaged from school and have a variety of other complexities in their lives. Latitude Network is supporting Melbourne City Mission and the Hester Hornbrook Academy in the negotiations.
It is a common problem in local and state government that a new piece of infrastructure is commissioned, but it fails to make a lasting impact on the social and health needs of the community. Our client, Brimbank City Council in Melbourne's West, had identified a range of population health and social measures that are worse than the average for greater Melbourne, yet investments over the years had not closed those gaps. In addition, a sports and recreation centre in St Albans needed to be redeveloped. The insight was that this large infrastructure project could be developed in a way that addressed the health needs of the community.
The project involves engaging with organisations to co-locate on the site, but also to sign up to common agreements and collaborative approaches to addressing community needs. Specific social and health outcomes (including in early childhood development and physical activity and health) were agreed, and a management system put in place to ensure reporting and accountability of those goals.
The program has three pillars -
Council-led social innovation, and aligning council programs and activities around common social outcomes
A novel approach that attaches outcomes goals to an infrastructure project and to tenant contracts
Building a community collaboration using the principles of collective impact
The project is still in development, but is pointing to a better way to make buildings work for the community and become more active, measured parts of system change. We will update this page as progress is made and goals achieved.
Combining an infrastructure project and a collaborative project to address population-level challenges is a new an exciting direction for local government. Typically these processes are managed separately, and while a building may have some impact goals up front, they can easily be forgotten in the commercial pressure to deliver a project in a timely and cost-effective way.
Latitude's role is to help design the systems, governance and approach for the project, and to help Council navigate their way through the complexities of analysis, managing, resourcing and stakeholder management. We believe this higher standard of outcomes-based infrastructure points to a future of improved impact and effectiveness. If you would like to keep up to date with the project as in progresses, subscribe to our newsletter or get in touch.
How does a social or health service provider demonstrate to their funders that they can, with early intervention, achieve not only measurable improvements for the people they work with, but also long-term cost savings? And how does that organisation navigate the political and policy environment - convincing key parties, like Government, to contract to co-design and deliver a long-term, sustainable program focused on delivering real outcomes? Complex issues often fail to respond to traditional social service approaches, so many funders are looking for a new approach that incentivises outcomes.
This is the question that Sacred Heart Mission set out to answer recently as a way of scaling-up their successful ‘Journey to Social Inclusion’ program which supports people experiencing homelessness.
What does one of these ‘outcomes-focused’ agreements look like? What is the right approach to take - what are the key considerations? Who are the key parties? What are the pieces of the outcomes puzzle and how do we get them to fit?
Social impact bonds, as one method for governments to commission for outcomes, hold the promise of a new way of doing things that is more focused and uses financially accountability to drive improvements. Latitude’s approach is based on understanding the full ‘value’ of solutions. Outcomes-based commissioning is a team sport and so it is necessary to understand what each prospective party wants to achieve (what they value), what they can contribute and, therefore, how much risk (and return) should be ascribed to each party.
Once determining the most fundamental point - understanding the value you are bringing to your clients - our approach is to support your organisation to build a convincing case about the service and financial benefits of your services and solutions, and pitch that solution to key funders (governments, in particular).
The outcome With our support as key strategic and project manager, the Mission was successful in its application to join with the Victorian Government (Depts of Treasury & Finance and Health & Human Services) to negotiate one of Victoria’s first Social Impact Bonds in late 2017. These negotiations began in May 2017 and are ongoing. Sign up to our newsletter to stay in touch with the project as it progresses.
Russ Wood of Latitude Network has worked with the Mission throughout this process.