Measuring Economic Social Value in Care: KPIs, Dashboards and Evidence

Measuring economic social value has become just as important as delivering it. Commissioners increasingly expect providers to move beyond broad commitments about local spend, SME engagement or community benefit by demonstrating how progress is monitored, reviewed and improved throughout the life of a contract. Providers that establish clear performance measures and governance arrangements are far more likely to retain commissioner confidence and strengthen future tender submissions.

This article forms part of the Social Value Knowledge Hub and complements guidance on Measuring, Evidencing & Reporting Social Value, Economic Social Value, Local Spend & Supply Chains, Social Value in Social Care & Tenders and Environmental, Social & Governance (ESG) Alignment.

Commissioners increasingly favour providers that measure economic social value through clear KPIs, routine governance and continuous improvement rather than relying on narrative alone.

Why measurement matters more than ambitious promises

Many providers develop impressive social value commitments during procurement but fail to demonstrate whether those commitments are actually delivered. Commissioners increasingly recognise that modest, measurable achievements often provide greater assurance than ambitious promises with little supporting evidence.

Effective measurement enables organisations to:

• Monitor progress consistently.
• Identify delivery risks early.
• Demonstrate accountability.
• Support continuous improvement.
• Strengthen commissioner confidence.
• Prepare future tender evidence efficiently.

Choosing meaningful economic social value KPIs

Successful organisations avoid measuring everything. Instead, they focus on a small number of indicators that directly reflect contractual commitments and operational delivery.

Useful KPIs often include:

• Percentage of spend with local suppliers.
• Percentage of spend with SMEs, VCSEs or social enterprises.
• Number of new local suppliers engaged.
• Prompt payment performance.
• Local employment created.
• Supplier retention rates.

Simple indicators reviewed consistently provide far greater value than large collections of rarely used metrics.

Operational example 1: establishing a reliable baseline

Before mobilising a new homecare contract, a provider establishes its economic social value baseline.

The organisation:

• Defines what qualifies as "local".
• Reviews existing supplier data.
• Calculates current local spend.
• Identifies SME participation.
• Documents classification rules.
• Agrees reporting responsibilities.

Having a consistent baseline enables meaningful performance comparisons throughout the contract.

Creating practical dashboards

Commissioners do not expect sophisticated software solutions. Many providers successfully monitor social value through finance systems or simple spreadsheet dashboards.

An effective dashboard should show:

• Current performance.
• Performance against target.
• Movement since previous reporting period.
• RAG status.
• Brief commentary explaining changes.
• Actions where improvement is required.

Clear visual reporting enables both managers and commissioners to understand performance quickly.

Embedding review into governance

Economic social value should become part of routine governance rather than a standalone reporting exercise.

Many organisations adopt:

• Monthly operational reviews.
• Quarterly contract reporting.
• Annual trend analysis.
• Board-level assurance updates.
• Risk review where targets deteriorate.
• Continuous improvement planning.

Embedding measurement into governance demonstrates organisational maturity and strengthens accountability.

Operational example 2: responding to declining performance

A quarterly dashboard identifies a reduction in local supplier spend following several emergency purchases.

Managers respond by:

• Reviewing purchasing decisions.
• Identifying replacement local suppliers.
• Updating procurement guidance.
• Briefing operational teams.
• Monitoring improvement monthly.
• Reporting corrective action to commissioners.

The focus remains on improvement rather than simply reporting underperformance.

Connecting economic social value with service quality

Commissioners increasingly expect providers to explain how economic social value contributes to better services rather than treating it as a separate contractual obligation.

Examples include:

• Local suppliers improving response times.
• Prompt maintenance reducing service disruption.
• Local recruitment supporting workforce stability.
• SMEs providing personalised solutions.
• Community partnerships improving inclusion.
• Shorter supply chains improving resilience.

Connecting social value to operational outcomes significantly strengthens commissioner assurance.

Building a reusable evidence pack

High-performing providers continuously collect evidence rather than waiting until the next tender opportunity.

An effective evidence pack may include:

• Baseline methodology.
• KPI dashboards.
• Supplier registers.
• Local spend analysis.
• Case studies.
• Commissioner feedback.

Maintaining evidence throughout contract delivery reduces workload during future procurements.

Operational example 3: using trend analysis to drive improvement

Following annual review, a supported living provider identifies steady growth in local supplier engagement but slower progress with SME procurement.

Senior leaders:

• Review procurement processes.
• Meet local business networks.
• Simplify supplier onboarding.
• Introduce quarterly improvement targets.
• Monitor performance through dashboards.
• Share progress with commissioners.

Trend analysis turns measurement into meaningful organisational improvement.

Common mistakes providers should avoid

• Too many KPIs.
• Changing definitions during the contract.
• Annual reporting only.
• Separating social value from governance.
• Collecting data without review.
• Reporting activity rather than outcomes.
• Failing to explain performance changes.
• Making unsupported claims.

What commissioners look for

Commissioners increasingly favour providers that:

• Maintain clear baseline measures.
• Use consistent KPIs.
• Monitor performance routinely.
• Report transparently.
• Explain performance trends.
• Act on underperformance.
• Link social value to operational outcomes.
• Evidence continuous improvement.

How to evidence this in tenders and contract reviews

Providers should explain how economic social value is measured through a simple cycle of baseline assessment, KPI monitoring, governance review, corrective action and continuous improvement. Supporting this narrative with dashboard examples, trend analysis and case studies provides commissioners with confidence that commitments will remain active throughout the contract rather than diminishing after mobilisation.

Conclusion

Economic social value only becomes meaningful when it is measured consistently and reviewed intelligently. Providers that establish practical KPIs, maintain straightforward dashboards and embed social value into routine governance demonstrate greater operational maturity, improve commissioner confidence and build stronger evidence for future tenders, inspections and contract reviews.

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