Value Generation

  • Value Generation

    Value Generation is a term we've developed to inform a new way of assessing the impact that services for people with additional needs have. It's not complicated. The words "Value Generation" aren't new, the 3 principles that sit behind those words aren't new either; however, what is new is the intention of Value Generation to change the values (in another seanse) that sit behind the way that services for people with additional needs are commissioned, funded and reviewed.

    For far too long services for people with additional needs have been commissioned within a system of segmented commissioning and a focus on cost control. Segmented commissioning and cost control are the prime movers in a situation where the NHS, social care & other commissioners engage in a negative competition to NOT fund peoples' additional needs in order to protect "their" budgets. If we had unified commissioning and a pooled budget, we'd have made progress but not enough progress because commissioning and funding would still be based primarily on cost control: who has the lowest unit cost, not who generates the most value.

    So we need unified commissioning, a pooled budget and a change of values. We need a move to Value Generation, which is 3 things:

    1. What are the outcomes for people?
    2. What is the cost-benefit to the public purse?
    3. What is the wider community benefit?

    The need to save money is understood. The practice of cost control in this context does the opposite. A failure to invest in preventative, enabling services such as supported housing inevitably leads to a need to fund otherwise avoidable emergency interventions as a consequence. Prevention has always been cheaper than "cure", and a lot less humanly painful. The second of the three Value Generation principles asks "what is the cost-benefit?" (of the services that are seeking to be commissioned and funded) so it's not as if money isn't an object. It's just that cost control is a crude and simplistic approach that's caused huge damage to publicly funded services.

    Any methodology that includes the three Value Generation principles should avoid the temptation to measure the first and third principles (outcomes for people and wider community benefit) in financial terms. To do so would be to give in to the cost control paradigm. These are qualitative outcomes, not quantitative outcomes. We should certainly measure the second principle (cost-benefit to the public purse) in financial terms though.

    The UK Government is currently thinking about the future shape and funding supported housing. We urge everyone involved in this to think about using Value Generation principles as a means of commissioning and funding supported housing services.

Related articles

  • Read More

    Ten Tips to Engage Residents Online

    1. Be human. Establishing your online voice will enable your organisation to have a distinct online presence. Be a real person and engage with your residents and keep your content regular.2. Trust...

  • Read More

    Telehealth Can Give Patients Better Care

    Telehealth can make use of modern technology to allow patients to manage their conditions at home, reducing the need for primary care and hospital visits, and giving patients much more control over...

  • Read More

    Social-Media Interactions for Victims of Domestic Violence

    Very recent statistics from the Guardian indicates that one in six men and one in four women will suffer some kind of domestic abuse during their lifetime. In 2011/2012, domestic violence accounted...

  • Read More

    Achieving Greater Social Impact

      By Andy Bagley,Real-ImprovementSeveral ways of measuring this impact have been developed over the years, Social Return on Investment being a prominent example. To date however, most studies have...

  • Read More

    Problems with Disability Testing

    Last year, Panorama went under cover and found that ATOS testing has been wrongly and unfairly assessing people as fit for work.The programme, aired earlier this week, showed that people are still...

  • Read More

    Planning Successful Events for the Social Sector

    It is possible to create a successful event for the Social Sector by keeping it simple and being creative. Choosing your target audience is very important, and as there is a wide range within the...

  • Read More

    Exempt Accommodation Criteria and Risks

    Exempt Accommodation: What are the qualifying criteria & what are the risks for agency managed services?Part of qualifying as an Exempt Accommodation scheme involves the service being provided to...

  • Read More

    Latest Developments on Benefit Cap & Direct Payments

    One of the details of the Chancellor of the Exchequer's Autumn Statement that didn't get a mention in the news coverage is paragraph 2.66. It would mean little to most people; however; the words...

Briefing Signup