Measuring Economic Social Value in Care: KPIs, Dashboards and Evidence
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Economic social value commitments often fail at the same point: measurement. Providers promise local spend, SME engagement or community benefit, but struggle to show progress in a way commissioners trust. Clear KPIs and dashboards turn social value from narrative into evidence, strengthening both social value in social care and tenders and wider provider assurance expectations.
This article sets out a practical approach to measuring economic social value that works for registered managers, operations leads and bid teams — without introducing complex reporting systems or extra layers of bureaucracy.
Why measurement matters more than ambition
Commissioners rarely penalise modest targets if they are well evidenced. They do penalise bold claims with weak tracking. Measurement reassures evaluators that:
- you understand your baseline
- progress is monitored routinely, not retrospectively
- delivery risks will be identified early
- social value commitments will not drift post-award
This is why economic social value increasingly appears alongside quality and governance scoring.
Start with a small number of meaningful KPIs
Avoid long KPI lists that nobody reviews. Most commissioners want clarity, not volume. Strong economic social value KPIs usually include:
- percentage of total spend with local suppliers
- percentage of spend with SMEs, VCSEs or social enterprises
- number of local suppliers onboarded in the period
- prompt payment performance (e.g. invoices paid within 14 or 30 days)
These indicators are simple, repeatable and directly linked to tender commitments.
Defining baselines so data stays credible
Your baseline methodology must be clear and repeatable. Commissioners may not scrutinise it initially, but they will expect consistency if they revisit later. Good practice includes:
- clearly defining what “local” means (LA, region or ICB footprint)
- using finance system data as the primary source
- recording assumptions and classification rules
- keeping the same definitions across reporting periods
Changing definitions mid-contract is one of the fastest ways to lose credibility.
Building a simple dashboard that works
A dashboard does not need specialist software. Many providers use Excel, Google Sheets or their finance system. An effective dashboard shows:
- current performance against baseline
- movement since last period
- RAG status against agreed targets
- brief narrative explaining change
Commissioners value explanation as much as numbers, particularly where progress stalls due to market constraints.
Reporting cycles commissioners expect
Most commissioners expect:
- monthly internal review: quick check to identify issues early
- quarterly reporting: formal KPI submission with narrative
- annual summary: trend analysis and refreshed targets
Align your cycle with other governance reporting so social value is not treated as a separate, optional activity.
Linking economic value to operational outcomes
High-scoring submissions link economic social value to service delivery. Examples include:
- local maintenance suppliers reducing response times
- local food suppliers improving meal flexibility
- local recruitment agencies reducing vacancy gaps
This reframes social value as a quality and resilience benefit, not just an economic one.
Evidence packs that stand up to scrutiny
Over time, build a light-touch evidence pack including:
- baseline methodology note
- quarterly dashboards
- supplier lists with location classification
- case studies showing operational benefit
This makes tender responses faster and reduces the risk of inconsistent claims.
Common measurement pitfalls
Providers lose marks where they:
- change KPIs frequently
- cannot explain movements in data
- report annually only
- separate social value from governance review
A small, stable KPI set reviewed routinely almost always scores better.
How to present measurement in a tender
In tenders, present measurement as part of your delivery model: baseline → KPIs → review → improvement. This shows commissioners that economic social value is embedded, monitored and manageable across the contract lifecycle.
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