Social Enterprise Balance Balance Step 1 of 8 12% Welcome to Balance! You’ll need to set aside a good hour or so to complete this diagnostic. Once you’ve started you’ll need to complete the assessment in one session – so you could look at what information we need on this first page so you have it to hand to start. We’ll collect some data about your organisation first, before you start the assessment. Please answer the questions as honestly as possible – from your own gut feel, or if answering as a team – from a majority position. Once you’ve completed Balance, we’ll be notified you’ve finished, and we’ll then build your snapshot and email it over. We’ll also send you an Action Plan that has tips and suggestions for developing your organisational capabilities, one stage at a time. We recommend you return to Balance as an annual exercise – as part of your strategic management of your organisation. Enjoy and good luck!Please indicate your consent by agreeing with the following statements. You must tick to answer 'YES' to 1, 2, 3, 4 and 5 to participate in the survey. You may leave 6 unticked to answer “No” and still participate in the survey.(Required) 1. You are 18 years of age or over 2. You have read the Participant Information Section of the survey. 3. You have had the opportunity to consider the information, ask questions and have had any questions you did ask answered satisfactorily 4. You understand your participation is voluntary and you are free to withdraw at any time prior to completion of the survey 5. You agree to participate in the project to the extent of the activities described in the survey Participant Information Section 6. You give permission for a fully anonymised version of the data you provide to be deposited in an Open Access repository so that it can be used for future research and learning Thank you for considering participating in this project. By completing the questionnaire you give your consent and permission for the data you enter on this questionnaire to be used in the research for the purposes outlined in the participant information section.Your Name(Required)Your email address(Required) Organisation Name(Required)Organisation Postcode(Required)What best describes your activities?(Required)ServiceManufacturingBothAge of Organisation (Years)(Required)Less than 11 – 56 – 1011 – 2021+Organisation Type (Select all that apply)(Required) Charity (including Charitable Trading Arm) Community Voluntary Organisation Social Enterprise Trust Co-operative Mutual Community Association B Corp Legal Status (Select one)(Required)BenCommCharitable Incorporated OrganisationCompany Limited by Guarantee (CLG)Company Limited by Shares (CLS)CLG + Community Interest CompanyCLS + Community Interest CompanyIndustrial and Provident Society (IPS) Co-operativeUnincorporated AssociationOtherSub Sector (Select all that apply)(Required) Arts Business Support Childcare Community Creative Industries (Web, Design, Print) Culture and Leisure Education Employment and Skills Environmental Health Care Housing Hospitality Retail Social Care Technology Other Annual Total Income (including grants, contracts, donations and other)(Required)£0-£5,000£5.001-£10,000£10,001-£25,000£25,001-£50,000£50,001-£100,000£100,001-£250,000£250,001-£500k£500,001-£1mOver £1m-£5mOver £5m-£10mOver £10m+Income change – average for the past 3 years(Required)-20% or more-10% or moreNo change+10% or more+20% or moreSources of funding (averaged over the past 3 years) [maximum 3](Required) Public Sector funding Private Sector funding Third Sector funding Trading income (Sales) Donations Bank Loan Bank Overdraft Please choose just 3 maximumNumber of paid members (staff) in your organisation(Required)0-34-910-1920-2930-3940-4950-7475-99100-149150-249250+Number of voluntary members (volunteers) in your organisation(Required)0-34-910-1920-2930-3940-4950-7475-99100-149150-249250+Where do you see yourself currently?(Required)Totally fund dependent.Partial support dependent with some earned income. In need of funding to be maintained.Cash flow self-sufficient but not at market rates with low re-investment, may be supported by shared resources (non-cash support)Operating self-sufficient, having previously been supported in some capacity (ie financial or shared resources).Independently operating having never been supported in any capacity (financially or shared resources).An Enterprise with different projects and financial structures – some for creating surpluses other not. May be in collaboration or partnership with other organisations.Where do you want to be?(Required)Totally fund dependent.Partial support dependent with some earned income. In need of funding to be maintained.Cash flow self-sufficient but not at market rates with low re-investment, may be supported by shared resources (non-cash support)Operating self-sufficient, having previously been supported in some capacity (ie financial or shared resources).Independently operating having never been supported in any capacity (financially or shared resources).An Enterprise with different projects and financial structures – some for creating surpluses other not. May be in collaboration or partnership with other organisations.What are your 3 biggest organisational challenges?(Required)1/3What are your 3 biggest organisational challenges?(Required)2/3What are your 3 biggest organisational challenges?(Required)3/3 Stakeholder Perspectives Stakeholder Focus Question 1: We are focused on stakeholder needs Stakeholders are groups of people and organisations who are involved in, affected by and whom have an effect on your organisation. They may be clients, customers, competitors, funders, employees/members, communities, service users, local authorities, government, other organisations from public, private and third sectors, etc. How well do you know them? How do they influence your organisation? What mechanisms are in place to collect data and prove your engagement?Stakeholder Perspectives Question 1 Stakeholder Focus(Required) Stage 1 – No, we don’t have any idea, we do what we do. Stage 2 – It’s quite intuitive, and we probably satisfy some stakeholders more than others. Stage 3 – We only have a vague notion of stakeholders’ opinions and our success. Stage 4 – We periodically review stakeholders’ needs and have a good idea about who they are – and how we are doing. Stage 5 – We are sophisticated in our methods. We are constantly knowledge sharing and innovating in consultation with stakeholders, capturing value and using this data across the organisation. Market Awareness Question 2: We keep abreast of sector knowledge Organisations have to constantly adapt in the light of changing needs, service provision, PESTLE (political, economic, social, technological, legal and environmental) factors. Be informed, keep abreast of policy, identify threats, new opportunities and watch the competitiveness of your market. In this question you should reflect on your research and knowledge of the sector and the services you provide.Stakeholder Perspectives Question 2 Market Awareness(Required) Stage 1 – No, we do what we do; we don’t have time to keep up with what others do – or the latest policy and political ideas. Stage 2 – Our knowledge is only through hearsay. Stage 3 – Our knowledge is gathered informally and we react accordingly. Stage 4 – We keep abreast of PESTLE factors. Stage 5 – We are sophisticated in our methods, pro-active in understanding, analysing and adapting to PESTLE issues. Market awareness is embedded in our strategic plans. Identity Question 3: Our organisational identity portrays our desired image Logos, colour schemes and a visual ‘look’ create an image of your organisation in the minds of your stakeholders. The words you use in literature and websites instill and influence judgements about your organisation. In this question, you should reflect on the types of medium you use and the image of your organisation both internally and externally.Stakeholder Perspectives Question 3 Identity(Required) Stage 1 – No, we haven’t thought about how other people see us as an organisation – we don’t really have an identity. Stage 2 – Informally – we have an identity, but it is quite intuitive. Stage 3 – We review our identity periodically. Stage 4 – We have guidelines for our publications and website material, making sure we don’t put out mixed messages. Stage 5 – We are sophisticated in our methods, our identity is very important to us, and we have a branding policy which is incorporated across the whole organisation. Promotion Question 4: We have methods for promoting our organisation Promotion is a way of advertising and publicising your organisation and the services/products you provide. Methods differ, but it is about taking advantage of situations to raise the profile of your organisation – be it through face-to-face meetings, technology (twitter, facebook, websites, etc) networking, advertising or rallying. Without good communication techniques you may fail to engage with stakeholders or attract enough support to survive. You should reflect on the methods you have used for promoting your organisation.Stakeholder Perspectives Question 4 Promotion(Required) Stage 1 – No, we don’t promote ourselves in any organised way. Stage 2 – We rely on one method of promotion. Stage 3 – We promote ourselves in a variety of ways (printing, websites, directories, etc) in order to raise our profile – but not in any organised way. Stage 4 – We have a plan of action that was developed to raise our profile to key stakeholders. Stage 5 – We are sophisticated in our methods, and we have a communications strategy based on informed knowledge of the markets we operate in, and we promote ourselves using proven techniques that are continually monitored. Resources Question 5: Resources are allocated for marketing activities Allocating money, time and effort for marketing can be difficult. Yet, political, policy and market sector knowhow and research are essential; as promoting your organisation and creating the right image to stakeholders. This question assesses how you organise and resource marketing. You should be reflecting on the attitudes of the organisation to the marketing budget and whether you monitor and evaluate the return on investment.Stakeholder Perspectives Question 5 Resources(Required) Stage 1 – No, we don’t feel we have the resources. Stage 2 – It is not a priority and has little resources. Stage 3 – Only if and when there is enough time and money. Stage 4 – We have an annual budget allocated that is ringfenced in terms of both money and time. Stage 5 – We are sophisticated in our methods and have a marketing investment strategy that is evaluated and informs other parts of our organisation. Evaluation Question 6: Marketing activities are evaluated for their effectiveness Evaluating, reviewing and auditing are core management functions. Marketing evaluation should establish the past and current marketing efforts. Evaluating and analysing where time and money have been spent. What techniques – what worked and what didn’t? This should inform the planning of future activities. Reflect on the questions in this section and ask yourself if the current evaluation of these activities is effective.Stakeholder Perspectives Question 6 Evaluation(Required) Stage 1 – It’s not something that we have thought of. Stage 2 – It’s something that we have thought of, we make intuitive judgements about what works. Stage 3 – Only informally, when time or when things are not going well. Stage 4 – We evaluate our marketing activities. Stage 5 – We are sophisticated in our methods and evaluate our marketing effectiveness against targets from the organisational strategy. Mulit-Bottom Line Cashflow Management Question 1: We have control of our income and expenditure This question assesses the control you have on income and expenditure – and the effect on organisational performance. These are key factors in maintaining financial and non-financial outputs and when negotiating external support (funding, loans, contracts for services, social investment, etc) and keep your organisation ‘fit for purpose’. Full cost recovery for forecasting and budgeting relies on clear accounting procedures and gathering information from an array of financial and non-financial sources. You should reflect on your depth of understanding and commitment to this issue.Mulit-Bottom Line Question 1 Cashflow Management(Required) Stage 1 – No, we do what we do and that’s it – that’s the accountant’s job! Stage 2 – We act as and when in crisis situations. Stage 3 – We take an informal approach and periodically review our spend. Stage 4 – We review our income and expenditure so that we know our full cost recovery and can achieve our social aims. Stage 5 – We are sophisticated in our methods. Cashflow management is an integrated activity involving people and knowledge from across the organisation. Social Aims Question 2: We articulate social aims to maximise our impact Social purpose organisations not only seek financial returns but also social returns or impacts. This question seeks to assess if those aims are articulated for achieving maximum social impact. Evidence of achieving social aims not only reassures staff and board that the organisation is succeeding but also provides accountability and marketing opportunities to other key stakeholders.Mulit-Bottom Line Question 2 Social Aims(Required) Stage 1 – No, we don’t articulate specific social aims. Stage 2 – We have specific social aims but these are not articulated. Stage 3 – We are working towards articulating social aims to maximise our impact. Stage 4 – We have specific social aims that are formally communicated through our marketing literature (websites, publicity, etc). Stage 5 – We are sophisticated in our methods and spend time and resources on measuring, analysing, managing and articulating our social impacts in order to maximise our return. Environmental Aims Question 3: We articulate environmental aims to maximise our impact Social purpose organisations not only seek financial returns for their efforts but also, as a responsible organisation – environmental impacts. For some, this issue may be core to their business, to others it just makes sense to minimise the negative effects of business on the environment. This question seeks to assess if environmental aims are articulated for maximising social impact. Evidence of achieving these aims not only reassures staff and board that the organisation is succeeding but also provides accountability and marketing opportunities to other stakeholders..Mulit-Bottom Line Question 3 Environmental Aims(Required) Stage 1: No, we don’t have specific environmental aims. Stage 2: We have unspecified environmental aims. Stage 3 We are working towards articulating environmental aims to maximise our impacts and reduce the negative impacts of our business on the natural environment. Stage 4 We have specific environmental aims that are formally communicated through our marketing literature (website, publicity, etc). Stage 5 We are sophisticated in our methods and we have an environmental policy because measuring, analysing, managing and articulating our environmental impacts in order to maximise our return and reduce the negative effects of our organisation on the natural environment is important to us. Measuring and Evidencing Performance Question 4: We use financial and non financial measures to evidence outcomes, review performance and maximise social impact Performance measures are an integral part of managing any healthy organisation, but for social purpose organisations this means going beyond financial performance alone. This question invites reflection on how you measure, evidence and use information about both organisational performance and social outcomes. It encourages consideration of whether data collection is primarily an external reporting exercise, or whether impact and performance information supports learning, accountability, decision making and continuous improvement. Measurement does not need to be complex, but it should be purposeful, proportionate and aligned with organisational aims and values.Mulit-Bottom Line Question 4 Measuring and Evidencing Performance(Required) Stage 1 – No – we do not review organisational performance or measure impact in any structured way. Stage 2 – We use one or two measures, mainly financial or funder driven. Stage 3 – We are working towards using both financial and social measures to review performance and outcomes, but confidence and consistency is still developing. Stage 4 – We use a range of financial and non financial measures to evidence outcomes and review performance. Measures align with recognised approaches / standards and provide credibility and assurance for stakeholders, while also informing internal reflection and improvement. Stage 5 – Performance measurement and impact evidence are embedded and actively used to inform learning, decisions and strategy, forming part of a continuous cycle of reflection, improvement and adaptation. Measures are benchmarked to assure ourselves that our evidence is fit for purpose, reviewed over time, and used to balance financial health with social outcomes, helping the organisation to maximise its mission led impact. Accountability and Stakeholder Engagement Question 5: We are accountable to stakeholders for our impact, using appropriate transparency and published social reporting Claiming social impact carries responsibility. This question focuses on how organisations are accountable for the impact they claim to achieve, and how this accountability is exercised through engagement, transparency and (at more advanced stages) formal social reporting. Accountability is not just about meeting regulatory requirements or publishing information; it is about building trust, legitimacy and shared ownership of purpose with stakeholders, ensuring they have opportunities to question, validate or influence how our impact is understood. This includes those who benefit from, fund, work in, or are otherwise affected by the organisation. Over time, social accounting can provide a structured and credible way to evidence impact, challenge assumptions and support continuous improvement – helping you prove and improve.Mulit-Bottom Line Question 5 Accountability and Stakeholder Engagement(Required) Stage 1 – We rarely share information about impact or performance beyond basic requirements. Stage 2 – We report information when required but accountability is largely one way – and compliance focused (such as reporting on activities to the Charity Commission, CIC Regulator, etc as part of annual returns associated with our chosen legal form). Stage 3 – We are beginning to involve stakeholders and explore more structured accountability. Feedback is gathered occasionally and informally, and informs some decision making. Stage 4 – We actively share impact information and use social reporting to enhance accountability. Stakeholder perspectives help test, refine and validate our understanding of impact – we co-design (to a point) in the way we approach designing, reporting, and reviewing our impact. Stage 5 – Accountability and social reporting are embedded and shape organisational learning and direction. Stakeholders are meaningfully involved in defining outcomes, assessing progress and shaping future priorities through regular and ongoing formal processes and practices. Organisational Sustainability Question 6: We are focused on the sustainability of our organisation to achieve our mission Organisational sustainability is more than business survival. If your organisation wants to be resilient and strong in order to continue supporting the stakeholders and values that you believe in you need to think about diversification, new markets, new income sources and new ways of doing things, targeted at market/customer expectations. Whether your future lies in public sector contracts to fund the services you provide or selling services direct to customers, building your organisation on solid foundations is critical to maximising your social impacts long term.Mulit-Bottom Line Question 6 Organisational Sustainability(Required) Stage 1 – No, we do what we do and hope we can carry on somehow. Stage 2 – We act as and when in crisis situations. Stage 3 – We take an informal approach, rely on stable income streams and periodically think about our future – but we are not very enterprising. Stage 4 – We take an innovative approach to generating income from new markets and regularly evaluate our future. Stage 5 – We have a sustainability policy with a variety of strategies for the future. We seek to innovate and engage stakeholders to further our aims. Stage 5 – We have a sustainability policy with a variety of strategies for the future. We seek to innovate and engage stakeholders to further our aims. Internal Activities Structure Question 1: Our internal structure is organised to support the ways in which we work. Organisations bring together people (with different skills), resources (finance, assets) and technologies to deliver products and services. Coordination of these is essential. Internal structure can hinder or help the flow within an organisation. This question assesses how well your internal structure is managed to support an effective working environment.Internal Activities Question 1 Structure(Required) Stage 1 – We don’t have a defined structure or any co-ordination. Stage 2 – We adopted a structure and have never reviewed it. Stage 3 – We occasionally review our structure and the ways in which we are co-ordinated. Stage 4 – We periodically review our structure and the ways in which we are co-ordinated in line with the needs of the organisation. Stage 5 – We are sophisticated in our methods and constantly consider how suitable and ‘fit for purpose’ our organisation is for achieving our goals. Communication Question 2: We have clear internal communication processes Communication in organisations is important and requires careful planning and management. Effective communication helps to keep people informed and motivated about the impacts towards organisational objectives, mission and values. It helps to improve employee commitment to the organisation and support to translate decisions into actions. This question assesses how you communicate across the organisation. You should reflect on current techniques and infrastructure.Internal Activities Question 2 Communication(Required) Stage 1 – There is no need for communication analysis, we just do what we do. Stage 2 – Communication is ad hoc and informal. Stage 3 – There tends to be one dominant way. Stage 4 – We have certain methods of communication for certain purposes – it is a planned approach. Stage 5 – We are continuously assessing the best methods of communication in order to benefit and motivate our people. Quality Question 3: We have a commitment to quality The control and evaluation of quality is often regarded as an important aspect of operational management. Quality of service is imperative to the long term sustainability of your organisation – especially in competitive markets. Issues of quality management are also pre-requisites to many income source opportunities. This question is concerned with how you manage the quality of the services you provide. You should reflect on the current practices and methods you use.Internal Activities Question 3 Quality(Required) Stage 1 – No, we don’t do anything special to manage quality. Stage 2 – We have an informal approach to quality, people pick up what’s acceptable. Stage 3 – People are trained to understand the importance of quality. Stage 4 – We have a quality management policy. Stage 5 – We are sophisticated in our methods and use various approaches to quality management to continuously improve our performance (Kaizen, quality circles etc). Audited Standards Question 4: We use audited standards (PQASSO, IIP, SAA) Audited standards may serve a variety of purposes for social organisations. Implementing externally audited and verified standards, such as IIP (Investors In People), PQASSO (Practical Quality Assurance System for Small Organisations) or SAA (Social Accounting and Auditing) can support your profile with stakeholders and ultimately improve your organisations processes. Audited standards may also serve as a pre-requisite for gaining new business and are a component of many tender specifications. Moreover, audited standards may help attract, retain and motivate staff – demonstrating a level of professionalism.Internal Activities Question 4 Audited Standards(Required) Stage 1 – No, we don’t have audited standards. Stage 2 – We are looking at the benefits of adopting an audited standard, such as PQASSO, SAA or IIP. Stage 3 – We are working towards adopting an audited standard, such as PQASSO, SAA or IIP. Stage 4 – We have adopted an audited standard. Stage 5 – We have adopted a range of audited standards that fit with our infrastructure and organisation goals and market. Flexibility Question 5: Our infrastructure is flexible to meet changing times There is a need to respond quickly to changing market conditions without sacrificing quality or delivery. Are you ‘fit for purpose’? Are you ‘fit to deliver’? Is your constitutional form a hindrance to undertaking new market opportunities? This question assesses your ability to adapt to new market demands. You should reflect on your current flexibility in light of the needs of the sector and your services/products.Internal Activities Question 5 Flexibility(Required) Stage 1 – No, we do what we do. Stage 2 – We act as and when in crisis situations. Stage 3 – We try to be as flexible as possible within our constitutional form. Stage 4 – We review our flexibility as an organisation periodically and consider how ‘fit for purpose’ we are, in line with our constitutional form. Stage 5 – We regularly review our flexibility so that we can quickly respond to changing needs adapting our organisation to respond to market forces and our independence and mission. Learning Training Question 1: We have a commitment to training and development Recent social enterprise research from the DTI reveals that business success often hinges on the skills base within the organisation. Making training and development opportunities available that are properly evaluated are one of the best ways of encouraging people within organisations. This question asks you to reflect on the views you have about training and developing the people within the organisation.Learning Question 1 Training(Required) Stage 1 – No, we don’t feel we need it. Stage 2 – We have on-the-job training but there’s no grand plan. Stage 3 – We have an informal development plan. Stage 4 – We have a formal staff development policy. Stage 5 – Our approach to staff development encourages a learning culture in the organisation through the provision of a wide variety of training opportunities. Participation Question 2: We encourage participation and team-working The workplace is a collection of people with differing abilities, attitudes and skills. Organisations should not lose sight of the fact that development is about more than individuals but also about encouraging people to share learning within (and across) teams working towards specific goals and social purpose. This question asks you to reflect on your efforts in building and developing team based working.Learning Question 2 Participation(Required) Stage 1 – No, we just do what we do. Stage 2 – Our organisation involves specific tasks and people informally come together to co-ordinate shared goals and purpose. Stage 3 – The people in our organisation come together in groups/teams to share goals and purpose – but we could improve participation. Stage 4 – We try to run the organisation through teamwork and participation. Stage 5 – Team working and participation forms the main organisational arrangement, reflecting our people centered management strategies. Knowledge Question 3: We learn through both internal and external knowledge Traditionally, organisational learning was internally focused, neglecting the essential contribution of external information from the interaction with other people, networks and organisations. External knowledge may be provided by lawyers, consultants, accreditation bodies, academics and other agencies. This question asks how your organisation interacts internally and externally.Learning Question 3 Knowledge(Required) Stage 1 – We learn on the job, we never look externally for advice. Stage 2 – We informally learn internally and have made use of external knowledge once or twice – or specific knowledge from one or two sources. Stage 3 – We make use of informal networks of external bodies to provide support and influence our knowledge. Stage 4 – We encourage networking across the sector by engaging with a variety of organisations to influence us and build our knowledge. Stage 5 – We are sophisticated in our methods and always encourage learning from external networks and partnerships at various levels in order to influence our internal capabilities. Learning Culture Question 4: We have a creative and learning culture A ‘learning’ organisation engenders a creative and innovative atmosphere. This question focuses on encouraging a learning culture. The creation of a climate in which people have a desire to learn and an organisation that shares its collective knowledge is highly desirable. You should reflect on the ways in which people learn within your organisation.Learning Question 4 Learning Culture(Required) Stage 1 – Not actively – learning is down to the individual. Stage 2 – We occasionally seek opinions from our people. Stage 3 – We are trying to encourage ways of developing creativity and learning. Stage 4 – We annually review the opportunities in our organisation for people to express their creativity and learn. Stage 5 – We are constantly aware of the need to harvest a creative and innovative culture through liaison with our people and stakeholders, Leadership Question 5: Leaders inspire a learning culture Effective leaders are instrumental in creating the culture and environment for people to express themselves and work to the best of their abilities towards the organisational goals. Leaders, therefore, have considerable power and influence in creating, encouraging or hindering performance. You should reflect on the leadership skills within your organisation. Leaders should have a commitment to involve, communicate and inspire people across the organisation and beyond.Learning Question 5 Leadership(Required) Stage 1 – Leadership isn’t one of our strengths. Stage 2 – Decisions are made by the management and board, then fed down through the organisation. Stage 3 – We are beginning to think about a culture where key people have a duty to inspire others. Stage 4 – We are working towards the right atmosphere where key people can inspire others to achieve their goals. Stage 5 – We are successful at inspiring people and champion a learning culture through encouraging and co-operative leadership. Impact Learning and Improvement Question 6: We use impact information to learn, improve and inform decisions. Collecting impact information only has real value if it is used. This question asks you to consider how impact thinking is embedded in learning and decision making across the organisation. Reflect on whether insights about outcomes and impact influence planning, service design, prioritisation of resources, strategic direction – and fundamentally how you manage tensions between financial/commercial needs and maintaining/sustaining the focus on achieving social goals. This may involve formal tools or informal reflection, but at more mature stages impact evidence becomes part of a continuous cycle of learning, improvement and adaptation, helping the organisation to maximise the positive difference it creates over time.Learning Question 6 Impact Learning and Improvement(Required) Stage 1 – No – impact information is not used to inform decisions or improvements. We focus on delivery and financial sustainability, with little attention to learning from impact. Stage 2 – We reflect informally on what seems to work. Learning is intuitive and largely based on experience rather than structured evidence. Stage 3 – We are beginning to use impact information to review and improve our work, utilising feedback or recognised formal tools (e.g. outcomes reviews, Compass, simple SROI thinking) occasionally in relation to specific projects or activities. Stage 4 – Impact measurement informs what we do on an annual basis. Thus, what we learn influences our regular / ongoing reviews and planning of service design, priorities, and resource allocation. Stage 5 – Impact learning is embedded and continuously shapes organisational direction. We systematically use impact insights to improve performance and maximise outcomes by being able to use them to understand the comprehensive impact of the whole organisation. Continuous Improvement Question 7: We seek to continually improve our organisation as a whole (our people, our services, our social impacts) Continuous improvement is an attitude undertaken by people within organisations. How successful you are at this task will depend on the level of participation and effort towards adopting a natural and proactive attitude to development, that is not forced. You should reflect on how your organisation develops and how improvements are made.Learning Question 7 Continuous Improvement(Required) Stage 1 – It’s not something we have thought about. Stage 2 – We address things as they happen. Stage 3 – We try to encourage people to help improve the organisation. Stage 4 – We have systems in place to help encourage and foster continuous improvement. Stage 5 – We have a continuous improvement philosophy which is embedded in our organisation orientation. Income Diversification Income Streams Question 1: We analyse, cultivate and diversify our income streams to be an independent and sustainable organisation This question asks how much your organisation knows about its current income streams in relation to analysing your dependencies and your sustainability. Do some income streams meet your social objectives more so than the surpluses necessary to support the ongoing viability of your business? Have you balanced these with other sources of funding where a good surplus is made? How much attention and analysis do you give to this task? Do you try to diversify your income?Income Diversification Question 1 Imcome Streams(Required) Stage 1 – We grab what we can to survive Stage 2 – We have an intuitive feel for how our current income streams contribute to our organisational sustainability, we do little to change it or don’t know how to. Stage 3 – We occasionally review how our current income streams contribute to our organisational sustainability. We are working towards ways in which we can diversify our income streams. Stage 4 – We annually review and analyse how our current income streams contribute to our organisational sustainability. This involves looking at income diversification and setting targets for new markets, new products and services or new ways of doing business with current and new customers. Stage 5 – We are sophisticated in our practices and continuously analyse our income streams in line with our (internal) strategic objectives, sustainability targets and our mission and also (externally) for new opportunities in the market, setting SMART objectives for new markets, new products and services or new ways of doing business with current and new customers. Entrepreneurship and Market Innovation Question 2: We are entrepreneurial and innovative, which is reflected in the diversity of our income streams This question asks if your organisation is currently able to act entrepreneurially. This might take many forms. How creative are you at shaping, re-shaping or designing new services? How innovative is what you do? Are there new ways of re-packaging what you do for new markets? Have you looked for sources of income that you have not traditionally targeted?Income Diversification Question 2 Entrepreneurship and Market Innovation(Required) Stage 1 – No. We struggle to survive and the thought of competing in a ‘market’ is frightening. Stage 2 – We seem to cope and occasionally looked at alternative services we can provide but it is hard to know what opportunities are out there. Stage 3 – We occasionally review what we do and who with. We have started to change the mindset within our organisation, to recognise that we need to be more entrepreneurial and market ourselves better and re-shape our services to appeal to alternative sources of income. Stage 4 – We annually review what we do and who with in order to be ‘fit for purpose’ in the changing environment for social business. This review includes an analysis of the markets we operate in and how we can diversify and innovate in order to maximise the opportunities. Stage 5 – We are sophisticated in our practices and have the ability to be entrepreneurial, innovate and early to market, positioning ourselves and competing for (and delivering) new services. This includes proving our value, our performance (financial and social) and maximising our opportunities to showcase our achievements. Strategic Positioning and Opportunity Recognition Question 3: We are pro-active and tactical in researching, recognising, finding and exploiting income opportunities This question asks about your tactics; (a) about alert systems, and how aware you are about the opportunities in the market for your organisation to win work and deliver the services you provide (b) how those opportunities are analysed in order to respond appropriately, taking into consideration the social purpose of your organisation; the resources at your disposal to deliver, the length, breadth and budgets associated.Income Diversification Question 3 Strategic Positioning and Opportunity Recognition(Required) Stage 1 – No, we just do what we can with what we can get. Stage 2 – We have an intuitive feel for how well different opportunities fit with our organisational ethos. We might consider one or two things; such as how long or how much. Stage 3 – We occasionally research and review how well different market opportunities fit with us. We consider three or four things; such as how long, how much, what surplus we can make and what capacity we’ve got to deliver. Stage 4 – We have an opportunity alert system, research and review how well different opportunities fit with us. We try to get to know fund holders. We know some types of income are restricted to certain outputs. We know some types of income require more time and resources to win than others. We know some types of income are less competitive than others. We know some types of income will be at less than full cost recovery. Stage 5 – We are sophisticated in our practices and are fully aware how well different opportunities fit with us. We get to know fund holders, seeking to build lasting relationships. We have a solid alert and scoring system for new opportunities that looks at the fit with our ethos and values, our capability and capacity and what outcomes we can achieve in relation to the ability to deliver the outputs required. Structure, Capability and Skills Question 4: We have the right structure, capability and skills to diversify what we do to maximise opportunities and manage a range of income sources This question asks if your organisation is ‘fit for purpose’, ‘fit to deliver’, if it has the right structure, capabilities and skills to make as much of new market opportunities as possible. How often are these issues reviewed in your organisation? What are the skills sets of your staff and board? What skills sets do you need to exploit new market opportunities? What rules are you bound to under your articles of association?Income Diversification Question 4 Structure, Capability and Skills(Required) Stage 1 – No. We have the skills to deliver but not the skills to take the organisation beyond what we do. We have no idea if our legal structure is fit for purpose. Stage 2 – Our capability to diversify is limited by either skills or our legal structure. Stage 3 – We occasionally review our skills and capabilities. We know what skills we have and think we know what we need to maximise opportunities and diversify our income sources. We need to review our legal structure for the appropriateness of income sources we target. Stage 4 – We annually review our capabilities and skills sets across our people (including board). We monitor opportunities in our field and make appropriate moves to capitalise on the opportunities. We have the right legal structure for the appropriate income sources we target. Stage 5 – We are sophisticated in our practices and have the capability and skills to diversify what we do to maximise opportunities and manage a range of diverse income streams. This includes reviewing our income sources and the opportunities there are to diversify in relation to the skills sets of our people (including board) and the changing requirements of the stakeholders. We have the right legal structure for the appropriate income sources we target. Governance Legal Responsibility Question 1: Our board understands their responsibilities in terms of the legal issues, policies and governing rules of the organisation and conducts themselves accordingly In being legally responsible for the enterprise, Directors should be able to assure at least themselves (and others) that they are ‘fit for purpose’ – this not only means understanding their responsibilities as determined by the regulatory body relevant for their adopted legal form, but also that the enterprises’ rules allow them the powers needed, and as a social enterprise that they are able to manifest and protect the enterprises’ defining values.Governance Question 1 Legal Responsibility(Required) Stage 1 – No, Directors are unaware of their responsibilities both legally and strategically Stage 2 – One or two take on more responsibility than others and one or two know their legal responsibilities more than others Stage 3 – The majority of the board are broadly aware of their legal responsibilities as Directors/Trustees of the organisation Stage 4 – The majority of the board are well aware of their legal responsibilities as Directors/Trustees of the organisation and act appropriately at all times Stage 5 – We are sophisticated in our approach to board excellence, which means that all Directors/Trustees of the organisation embrace their legal responsibilities and act accordingly and appropriately at all times Board Recruitment and Diversity Question 2: We have a policy that is regularly reviewed in line with organisational strategies that clearly identifies social participation/representation and specific roles with differentiating specialisms While the governing body of any enterprise is elected by and from its Members, it may be that these two groups of people become one and the same. However, social enterprises should be mindful of both the ‘social/community’ and the ‘enterprise/market’ when recruiting for board members. They should also be able to draw confidence and assurance from there having been mandated to direct the enterprise through being elected by its Members to the Board.Governance Question 2 Board Recruitment and Diversity(Required) Stage 1 – No, we get who we can Stage 2 – We have an idea of the types of people we want on our board, but it is not formalised in any way Stage 3 – We are working towards developing a more strategic approach to recruitment, which will aim to broaden the diversity of our board – both socially and professionally Stage 4 – We have a recruitment policy that is reviewed annually Stage 5 – We are sophisticated in our approach to board excellence, which means that our recruitment strategy is regularly analysed against the changing environmental needs of the organisation, clearly identifying social participation/representation and specific roles with differentiating specialisms. Board Skills Analysis and Development Question 3: We invest in our Directors/Trustees, whereby board skills analysis informs training and development plans for each individual concerned Given the importance that the Board plays in ensuring the success of the enterprise, it is vital that they collectively have the relevant skills, knowledge and ability to strategically manage it. Ideally, Boards should undergo periodic ‘audits’ in respect of their skills and competencies to identify any gaps/needs, and the enterprise is subsequently able to identify resources to address these. This is not just a ‘nice to have’, but crucial as the Board are taking legal responsibility for the enterprise – they need to be able to assure themselves that they are at least ‘up to the job’.Governance Question 3 Board Skills Analysis and Development(Required) Stage 1 – No, no budget – the board are who they are and have what skills they have Stage 2 – Training and development for Directors/Trustees is ad-hoc, rarely coordinated for the individual, usually legal responsibilities that frightens people, so we don’t encourage it Stage 3 – We are working towards, when finances allow, developing a range of training opportunities for our board that covers a range of areas of development Stage 4 – We have an annual budget, providing training and development opportunities for our board that covers a range of areas Stage 5 – We are sophisticated in our approach to board excellence, which means that through skills analysis individual board development plans are drawn up for all Directors/Trustees of the organisation, with clear targets and are annually reviewed. Board Meetings Question 4: We have regular, structured, time bound, well managed board meetings that includes; agendas, documented minutes and clear, specific actions that are communicated across the organisation Directors need to remain appropriately informed if they are to fulfil their responsibilities in terms of not only the types of information they receive, but also the frequency they receive it. The frequency and structure of Board meetings should be appropriate to the enterprise, its size, stage of growth and strategic direction, and there should also be support available to Directors to ensure that they can gain any needed skills or to enable them to participate in meetings with their colleagues.Governance Question 4 Board Meetings(Required) Stage 1 – No, board meetings are as and when, and discussions are kept between the board, nothing is documented Stage 2 – We hold fairly regular board meetings, poorly attended, the minutes are not always documented, are not distributed widely, or clearly state specific actions Stage 3 – We are working towards regular, structured, time bound, board meetings that includes documented minutes and clear, specific actions Stage 4 – We have established regular, structured, time bound, board meetings that includes agendas, documented minutes and specific actions that are communicated between the board Stage 5 – We are sophisticated in our approach to board excellence, which means that we have regular, structured, time bound, well managed board meetings that includes agendas, documented minutes and clear, specific actions that are communicated across the organisation in line with our transparent culture and organisational philosophy Policies, Systems and Structure Question 5: There are several policies, there are systems in place and there is a clear structure that everyone concerned understands There are advantages in developing clear policies, systems and structures across the Board of Directors/Trustees. These can be helpful and enabling, not disenabling or bureaucratic in fostering Board awareness and a sense of responsibility of actions. Having structure in place supports Board induction, provides guidance and guidelines for behaviour internally. Having structure in place also supports transparency and accountability of behaviour externally.Governance Question 5 Policies, Systems and Structure(Required) Stage 1 – No, our board just do what they can Stage 2 – There are a few unwritten systems and policies, with an intuitive structure to how the board operates Stage 3 – We are working towards developing specific policies, taking a more systematic approach that will bring about a more clearly defined structure to the board Stage 4 – We have clear policies, systems and a structure that is reviewed annually Stage 5 – We are sophisticated in our approach to board excellence, which means that we have several policies, have clear systems that provide clarity to our operations as a board and we have a clear structure that everyone concerned understands Strategic Management and Decision Making Question 6: Our board have a clear strategic management function, where decision making is guided and informed by operational manager/s and associated stakeholders where necessary It is very easy for Boards to begin to focus their attention on the day to day management issues and decisions of the enterprise they are responsible for, but this invariably means that they lose sight of their ability and role in focusing on setting and reviewing the strategies it needs to achieve the pursuit of its goals. Board members should be aware of the importance of distinguishing between strategic and operational management issues, and be able to trust paid staff and volunteers to manage the enterprises operations while they ensure that they remain aware of the ‘bigger picture’ and how to appropriately position the enterprise within that.Governance Question 6 Strategic Management and Decision Making(Required) Stage 1 – No, our board are generally distant from the activities of the organisation and are totally led by the operational team Stage 2 – Decision making tends to be a grey area – one or two of the board take on more responsibility than others and one or two tend to make strategic decisions, sometimes guided by the operational manager/s Stage 3 – We are working towards developing a greater sense of demarcation between the responsibilities and strategic function of the board and the role that operational manager/s play in informing and guiding board decisions Stage 4 – Generally speaking, our board have an established clear strategic management function, where decision making is guided and informed by operational manager/s where necessary Stage 5 – We are sophisticated in our approach to board excellence, which means that all board members are fully aware of their strategic management function, where decision making is guided and informed by operational manager/s and associated stakeholders where necessary that is in line with our transparent culture, organisational philosophy and accountability to stakeholders Visioning Business Plans Question 1: We use business plans Business plans help to communicate ideas to others and provide the basis for financial proposals. A business plan acts as a guide during business start-up or growth by formally expressing strategic, operational and financial information. There is, however, no such thing as a standard business plan. Each plan must be tailored to a particular circumstance. Nevertheless, most plans have a great deal in common and are useful communication toolsVisioning Question 1 Business Plans(Required) Stage 1 – No, never have. Stage 2 – No, we don’t have a plan at the moment but we did at one time. Stage 3 – We have a business plan but it is not up to date. Stage 4 – We have a current business plan. Stage 5 – We use business plans to co-ordinate our activities for the future which includes projections and opportunities, financial statements and potential income sources, marketing plans and market research, and social accounts – all of which are communicated across our organisation. Mission Clarity, Audience and Objectives Question 2: We have a clear mission that defines our purpose, target audience and the outcomes we seek to achieve, and this guides our decisions and activities This question focuses on whether your organisation has a clear and shared understanding of why it exists, who it exists for, and what it is trying to achieve. It invites reflection on how well your mission articulates your purpose and values, identifies your primary audiences (beneficiaries and finance providers), and offers a sense of direction for medium and longer term objectives. A clear mission helps align decision making, prioritise resources and maintain coherence as the organisation grows or responds to change. This question is concerned with clarity of intent and direction, rather than the detailed mechanisms through which impact is achieved, which are explored elsewhere in the toolkit.Visioning Question 2 Mission Clarity, Audience and Objectives(Required) Stage 1 – No – we just do what we do. Stage 2 – We have an informal understanding of our aims, shared among members of the organisation, but no clear or structured mission. Stage 3 – We have a stated mission and vision, describing who we are and what we do but they are not actively used or reviewed to guide decisions, resource allocation or evaluation of progress. Stage 4 – We regularly review our mission and use it to guide planning and communication. Our mission is clear, understood internally and communicated externally. It is reviewed annually to ensure relevance. It informs planning, funding applications, stakeholder communication and the setting of organisational objectives. Stage 5 – Our mission clearly defines purpose, audience and outcomes and fully shapes organisational direction and is shared widely both internally and externally. It is regularly reviewed, and forms the foundation for strategy, decision making and the alignment of activities. Objectives are clearly derived from this purpose, supporting impact, sustainability and coherence across the organisation. Purpose to Impact Pathway Question 3: We are clear about how our mission translates into outputs and outcomes This question focuses on how organisations make sense of the relationship between their mission, their activities and the outcomes they seek to achieve. It invites you to reflect on the logic that links intent to action and action to outcomes: how your mission shapes what you do, and how those activities are expected to lead to meaningful and lasting change for people, communities or the environment. It encourages you to think beyond delivery (outputs) and consider whether there is a shared understanding — both internally within your team and externally with partner organisations, funders or commissioners — of the difference your work is intended to make, and how confident you are that your activities genuinely contribute to that change. The emphasis here is on clarity of cause and effect, not on articulating organisational identity, which is explored elsewhere in the toolkit.Visioning Question 3 Purpose to Impact Pathway(Required) Stage 1 – No – we focus on delivering activities and haven’t really thought beyond that. Stage 2 – We can describe our mission and activities, but the link to outcomes is mostly assumed. Stage 3 – We are working towards clarifying the link between mission, outputs and outcomes. Stage 4 – We have devised our ‘theory of change’ – clearly articulating how our mission leads to defined outputs and outcomes. This logic informs planning, funding applications and communication with stakeholders. Stage 5 – We use a clear and shared impact pathway to guide strategy and decision making. Our mission, outputs and outcomes are well understood across the organisation and are regularly reviewed and refined – and they form a core part of how we set future plans and budgets. Communication Question 4: We strive to communicate our vision Effective communication helps to create an accountable and balanced culture with people central to the organisation. Key to the success of communication is: (1) Informed stakeholders (2) involved and focused internal people that understand, support and strive to achieve the vision. This question seeks to assess the level of communication in your organisation.Visioning Question 4 Communication(Required) Stage 1 – No, we haven’t thought about it. Stage 2 – It’s quite informal and unspoken. Stage 3 – It is informal knowledge within the management and board. Stage 4 – Our vision is common knowledge within and outside our organisation. Stage 5 – Our visioning is communicated internally and externally through a variety of means. Shaping Future Impact Question 5: We have a clear and shared understanding of how we want to shape our impact in the future. This question focuses on how organisations think about shaping their future impact, rather than assuming that growth or scaling is a desirable given. Impact may increase through reaching more people, deepening outcomes, improving quality, influencing systems and enabling others to act. This question invites reflection on whether your organisation has considered how and whether its impact should change over time, taking account of mission, values, capacity, context and limits. This question is therefore more about intention, informed, considered decisions and values led choices about future direction.Visioning Question 5 Shaping Future Impact(Required) Stage 1 – No. We are focused on the here and now and haven’t considered how our impact might evolve over time. Stage 2 – We have thought about the future, but without clarity or shared discussion about direction. Stage 3 – We are reactive to opportunities to expand our work and activities, but we have not developed a plan for this. Stage 4 – We have a considered and agreed approach to shaping our future impact. Stage 5 – Our impact trajectory is an informed, thoughtfully considered intentional strategy, which is values led and regularly reviewed as part of our visioning. We have thoughtfully considered what growth, change, stability and de-growth might look. This approach is regularly reviewed over time and guides strategic decisions. Balance Question 6: We strive for balance across the organisation This question completes the diagnostic assessment. The aim of the exercise has been to identify the key characteristics of your organisation and to establish areas of strength and weakness. As the name of this tool suggests ‘balance’ across these key competency areas is the ideal. How balanced do you think you are?Visioning Question 6 Balance(Required) Stage 1 – No idea. Stage 2 – We’d rather not know – it might frighten us! Stage 3 – We have a rough idea of where our strengths and weaknesses lie. Stage 4 – We try to balance our organisation in terms of these areas. Stage 5 – We strive for balance through a number of key indicators within this diagnostic and review our performance twice a year.
