0:06 when we think about social return on
0:11 investment or sroi we are looking at the
0:14 way that a program makes impacts
0:17 systemically in a community so I often
0:21 think of a pebble being thrown into a
0:23 pond and that's the program's activities
0:26 and then once that is thrown into the
0:30 pond there comes these rings of ripples
0:33 so what sroi does is it watches very
0:36 carefully to see where the the initial
0:39 impact is and then it begins to measure
0:56 effects when businesses and also
0:59 nonprofits are reporting their their financials
1:00 financials
1:03 they're reporting to their investors
1:05 it's critically important for them to be
1:08 able to explain the holistic Financial
1:11 value of what those products and
1:16 services are are doing and so sroi gives
1:19 them the ability to report those those
1:22 metrics in the same financial terms as
1:24 you're reporting return on investment or
1:28 Roi so to take a very specific example
1:29 of the Habitat for Humanity con
1:32 construction company that activity is
1:35 helping people to fix up their houses so
1:37 that is the pebble that gets thrown into
1:41 the pond and then the first ring is you
1:42 know the immediate effects to the
1:45 property value the immediate effects to
1:48 the surrounding neighborhood or the um
1:49 you know the tax base of the
1:52 neighborhood it's creating local jobs
1:55 but the next impact is the impact on the
1:58 families of the people that live in
2:00 those homes they can now bring bring and
2:02 invite people over to their homes
2:03 because they feel a sense of pride in their
2:04 their [Music]
2:08 [Music]
2:12 homes I think the beginning of this
2:16 sroi partnership is a tribute to the
2:18 Brilliance both of the late John Glazer
2:22 and of Ken aers at Habitat for Humanity
2:26 because they both got it about how this
2:30 could make a big difference in a lot of
2:33 places there's so much hunger to be able
2:35 to express impact Beyond
2:37 Beyond just
2:38 just
2:41 profit what is the impact on people what
2:44 is the impact on the earth the biggest
2:46 challenge that we had we knew what the
2:48 impact was we just didn't know how to
2:53 tell the story and we knew that uh
2:55 having a decent place to live increased
2:57 educational attainment but we didn't
3:00 know how to tell that story sroi helped
3:02 that you know by teaming with the
3:04 voinovich school through the funding
3:06 from the Sugar Bush Foundation we were
3:10 able to take the time to research and
3:12 sroi allows us to to be able to
3:15 reference that and tell that story when
3:22 I came along in 2019 and 2020 and was
3:24 trained by social value
3:28 International Sugar Bush then really
3:31 catalyzed the exponential growth of sroi
3:42 University the first step is
3:46 understanding the intended audience
3:49 scope and purpose of the sroi so this is
3:52 when we meet with the executive director
3:56 the president the leadership key staff
3:58 and we ask them why do you want this
4:02 sroi what are the measures that you
4:05 haven't been able to value that are
4:08 important to you the second step is we
4:10 want to meet with the key
4:13 stakeholders so we ask the leadership
4:15 who do you have an impact on and we want
4:18 to talk to everybody we want to talk to
4:20 the primary beneficiaries or the
4:22 customers we want to talk to board
4:24 members we want to talk to staff and we
4:26 want to talk to community members who
4:29 support you when we are talking to these
4:32 folks were looking for the change that
4:35 the Enterprise makes in their lives we
4:37 use the process of Ripple effects
4:40 mapping with the broad-based stakeholder
4:44 group so for passion works the primary
4:47 people that are changed are the artists
4:51 themselves and it was critical for us
4:56 to hear the artist perspective in the
4:58 artist words from the artist's point of view
5:00 view
5:04 so in true passion Works form we asked
5:06 each artist to
5:10 draw illustrate the most important
5:13 change that passion Works had made in their
5:14 their
5:18 lives and the results are amazing some
5:20 of the artists Drew stories one artist
5:23 for example she Drew this picture of
5:26 herself in a dark room this representing
5:29 before passion works and then she Drew
5:31 herself at a table with her other
5:33 passion Works artists and the little dog
5:37 that comes and then the final stage is
5:40 like her you know emerging as this
5:50 being then the third step we move on
5:55 to developing the indicators so now we
5:57 understand what changes but now we have
6:00 to understand how much
6:03 and for how many
6:06 people experience the change so this is
6:09 where we delve into the organization's
6:12 data then we move on to the fourth step
6:15 and that is valuing what changes this is
6:19 the fiscal proxy development so now we
6:20 understand the change we know how much
6:23 change is happening now we can do the
6:25 research to put a dollar amount on it
6:27 then we go into the research and we try
6:29 to figure out has anybody else St
6:32 studied this change and understood what
6:36 it costs to make a change of this nature
6:38 for every single proxy that we calculate
6:41 for our um for the clients we go through a
6:42 a
6:46 rigorous methodological process to
6:52 valuations passion Works was unique
6:56 because of the incredible increases in
6:59 quality of life that it gives it stake
7:02 holders we had these sets of outcomes
7:03 that were all about
7:04 about
7:07 interconnectedness belongingness you
7:11 know emotional growth mature growth and
7:13 maturity that are not tangible that we
7:15 needed to figure out a way to measure
7:18 these quality of life
7:21 outcomes to put a monetary
7:25 value on the increase in quality of life
7:29 we used a combination of statistics and
7:30 then all
7:33 also monetary valuation from the health
7:35 care field in terms of a quality
7:40 adjusted life year the final sroi metric
7:43 for every dollar invested x amount of
7:46 social value is created is a fluid
7:50 metric it changes each year maybe each
7:54 quarter it changes as the activities of
7:57 the organization change and as the focus
7:59 of the organization changes they
8:02 allocate more resources in a certain
8:04 area and not in others that will change
8:07 the overall [Music]
8:08 [Music]
8:13 ratio then finally the last step is to
8:14 share the
8:17 results and this is very cyclical in
8:20 nature because we go back and we share
8:23 the results with the leadership team
8:24 with the
8:27 stakeholders we have been able to move
8:30 from an excel-based calculator
8:35 to a cloudbased software calculator that
8:38 now social Enterprises can embed on
8:41 their web page to illustrate their
8:49 impact so one example is for the true
8:51 pigments project and the output is
8:54 measured in miles of stream restored now
8:57 supporting life and then we understand
9:00 the changes as a result of true pigments
9:02 now the stream is totally restored it
9:05 supports life it's clean and the way we
9:09 monetize that is by understanding if it
9:11 weren't for True pigments how much would
9:15 it cost to restore each of those miles
9:18 and so we're able to put a dollar amount
9:20 on actually each linear
9:22 foot of the stream restored by true
9:25 pigments activities for the true
9:27 pigments project one of the Ripple
9:31 effects that um that we have been able to
9:31 to
9:34 measure and have been so excited about
9:40 seeing come to life is the art that
9:42 comes out of this pain pigment that's
9:44 extracted from the acid mine drainage
9:49 the streams so now this pigment can be
9:52 turned into paints and those paints are
9:55 being sold and artists are making
9:59 beautiful um are making beautiful art
10:03 out of what was once pollution that was
10:06 clogging up streams and I mean what a
10:08 better way to visualize the Ripple
10:11 effects of of sroi through through
10:14 through ART that's made from
10:17 pollution being able to to really put
10:20 some numbers on the value of sustainable
10:22 iron oxide pigment and to be able to
10:25 think about um you know some of this the
10:28 social impacts that um you know possibly
10:31 uh elevated property values Downstream
10:33 and the Eco tourism piece thinking about
10:35 all of those and being able to weave
10:37 those into the narrative that that we
10:39 are are sharing about true pigments has
10:43 been I think really important to to
10:45 telling the story in a more
10:47 comprehensive way it's also been
10:49 important from a strategic planning
10:51 perspective we've been able to look at
10:54 that and go okay now it's not just about
10:56 family served but it's also about impact
11:00 generated and we utilize as I for our
11:03 strategic decisions here at habitat now
11:07 because of the impact it can have on weighing
11:09 weighing
11:12 impact the more value that you can
11:15 legitimately explain and apply to
11:18 whatever it is the more the so-called
11:20 value proposition can be can be
11:22 explained and so it's critically
11:26 important to be able to tell that story
11:28 of the whole value proposition and the
11:31 impact that that's having on on [Music]
11:32 [Music]
11:35 Society for the Sugar Bush
11:40 Foundation the biggest impact of sroi
11:44 itself is the ability that it gives us
11:46 to help change the
11:50 narrative about appalachin Ohio and to
11:54 give us quantitative research backed
12:00 data to tell the value of all the assets
12:04 that are present across this region
12:06 region
12:10 that is giving us a
12:13 future that we can
12:17 tell to the rest of the world with an
12:21 Innovative technology and process that's
12:24 actually originating out of appalachin Ohio
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