As social value becomes increasingly prominent in the decision-making of businesses and public sector bodies alike, we convened a special Well Connected event, hosted by ACC Liverpool, to explore best practice in this area.
Liverpool Chamber chief executive Paul Cherpeau welcomed delegates, saying:
“Three years ago, ACC Liverpool launched a consultation exercise, to which we happily contributed, and concluded that social value should be at the centre of their approach, allowing them to make an impact beyond a single event.
“Social value has become crucial in procurement and it’s important that we are able to move away from a price-only model of assessment when tendering for contracts. We would like members to share their social value stories with the Chamber team so that we can incorporate them within our ongoing communications.
“I would also encourage businesses to get involved with the Local Skills Improvement Plan and our Quarterly Economic Survey, so that we can understand their ground level experiences and the needs of businesses.”
The audience then heard from Eddie Dos Santos, director operations and venue management at ACC Liverpool.
“We are passionate about social value and the benefits it can bring. Our social value plan comprises four main strands – people, sustainability, influence and community – and our procurement processes run through all four of those.
“Ideally, we can source a local supplier and find ways to engage with and support other organisations. We want to use our status as an anchor organisation to benefit the local economy.”
“Our work with Kimpton is a great example of this approach. They did their research and understood that grass roots music is really important to us, so they approached us with the idea of working together to support Future Yard, an excellent live music venue in Birkenhead. Kimpton provides their heating, ventilation and electric maintenance, and we work with them on Skills and talent development. It’s about identifying a way to create added value.”
Kathryn Gordon from DYNO Rod Machmade joined Hayley Smallman from Woodlands Hospice on stage to give more details of their Hope Flows campaign, which has also received support from other Chamber members including Oriel Studios.
Kathryn explained:
“The complex services that Woodlands provides are absolutely vital for our communities. Cancer is no respecter of age, money or background. My friend Katy Ennel, a real force of nature, discovered she had breast cancer aged 28 and died when she was just 31. The hospice cares for not only the patient, but the whole family, and that can continue even after their loved one has passed away.
“That’s why we are supporting the Hope Flows campaign. From 10 March to 17 April, every time a customer donates, the team will ring the Woodlands bell and for every bit of business booked during that time, we will donate 5% to the hospice.”
Hayley added:
“The people that we look after have lived a good life and they deserve to have a good death as well. We are not a luxury service – everyone deserves what we provide. We give people something brighter, whether it’s raki, samba or our ‘tipple trolley’ for a taste of normality.
“We are so grateful for the support of the team at DYNO Rod Machmade, who have also donated an annual membership to Liverpool Chamber. These connections we are building with companies which as Oriel Studios simply wouldn’t be possible with our relationship with Liverpool Chamber.”
The final speaker was Andrew Beattie from Liverpool-based Kindred, which aims to help grow the social economy through a social investment fund.
“We cover the wider Liverpool City Region and our fund has so far invested more than £3m so far, with Farm Urban and Future Yard among those receiving investment, resulting in a 77% increase in turnover across the portfolio. We also invest time and resources into organisations which are making a real difference.
“It is said that £1 spent locally can generate at least 70p of benefit to the local economy, while £1 spent locally and socially can be worth up to £1.70.
“People typically like to buy locally and socially, so we have created Based, a directory of social economy organisations. This currently stands at 200 but our aspiration is to grow that to 1,000 by summer and we believe there is potential that could rise to 2,500. So, please take a look and find the right partners to work with.”
There followed a panel discussion, where Eddie and Andrew were joined by Matt Breakwell, business development director at Kimpton. The session was chaired by the Chamber’s head of commercial services, Lizzie Hughes, who posed a number of questions.
What are the biggest misconceptions around procurement?
Eddie: “As a larger organisation, there can be an assumption that we won’t work with smaller suppliers, but the truth is very much the opposite. You just need to share our values and become a true partner.”
What lessons can other businesses learn regarding social value?
Matt: “What ACC did well was to set out their purpose and values very clearly. Sometimes these sections can be weak, but theirs was really clear – essentially to put Liverpool on the world stage. We realised they wanted to use a local firm if possible. Organisations should work out why they are there – what is their purpose and how can suppliers support that?
What metrics do you use to monitor performance around social value?
Matt: “Procurement can often be separate to operations, but at ACC it’s an agenda item with the contract delivery. Social value is built into our processes, e.g. donating replaced carpet tiles to charities.
Eddie: “We have KPIs but social value is embedded into those. Ambition might get you the contract, but social value runs through all of our work together and it can’t be measured each month or quarterly.”
Andrew: “It’s all about the choices you make as a business. Is it just for profit or to invest in your communities? Liverpool is arguably the kindest city in the UK and we regularly see the private and social sectors working closely together. Put simply, why wouldn’t you do it?”
With changes being made to procurement regulations, will social value remain an important feature?
Andrew: “Yes, I certainly think so. There are tough trading conditions out there, but I’m optimistic – we have to decide it’s a priority. We have an established social economy here.
Matt: “The more you do, the easier it becomes. Doing the right thing is the best way to do business.”
What advice would you give to other organisations regarding social value?
Eddie: “Record everything that you do, then sit down and build a strategy around that.”
Matt: “Leverage your skills. Future Yard trains local young people in lighting and sound engineering – we realised we could help them with their heating and ventilation maintenance. Use your skills for full impact.”
Andrew: “Look at what you already do, as you may find you are doing more than you realised. Use the Based database to find organisations and have a conversation about how you can work with them.”