From aspiration into reality: How public sector organisations can navigate social value

Public sector procurement has long centred around saving money and reducinging costs with the taxpayer in mind as well as changing budgetary conditions.

However, particularly in light of current geopolitical instability, supply chain risks and an ever-intensifying climate crisis, there is a prevalent recognition of the limitations of a singular focus on financial returns – a concept captured by earlier legislative changes such as the Public Services (Social Value) Act 2012, which mandated public sector organisations to consider how their procurements could deliver wider social, economic, and environmental benefits.
 

The public sector has generally risen to these challenges, and we are seeing social value in action, and the benefit this brings, in both central and local government and the wider public sector. A 2022 report by the Local Government Association shows that local government organisations across the UK are using the social value model and frameworks in their supplier selection process to incentivise social value-driving contracts; some also have roles and structures in place to monitor suppliers’ progress and hold them to account, but levels of progress can vary depending on the availability of important procurement capactiy and capability.

However, levels of progress vary. Translating this concept of "social value" into tangible impact still presents a challenge for many public sector organisations, and the path to social value creation is littered with pitfalls. Indeed, the 2013 Act has often resulted in "tick-box" exercises with minimal impact.

Fast forward to 2025, and the future of social value looks far more positive for the public sector, particularly with the introduction of the Procurement Act 2023, the National Procurement Policy Statement, and a new social value model via PPN 002, which adds impetus by introducing a mandatory 10% minimum weighting for social value in government contracts. This, coupled with the Cabinet Office’s Social Value Model, provides a much clearer framework for measuring and incorporating social value gains into contract evaluations – but, from working with a wide array of public sector procurement teams, we see that how to turn this into impactful action remains unclear to many organisations. So, how can they turn social value aspirations into reality?
 

Navigating common social value pitfalls

Based on their extensive experience working with public sector clients, Efficio’s consultants have identified some common pitfalls that organisations encounter when approaching social value:

• Lack of clarity: Confusing social value with philanthropy or corporate social responsibility (CSR) dilutes its essence. Organisations must articulate a clear definition of social value that aligns with their core strategy, and this should cascade down into Procurement’s goals and operations.
• Misdirected efforts: However well-intentioned, initiatives that lack strategic focus can turn into mere box-ticking exercises with minimal impact. Social value goals should be aligned with organisational strengths and stakeholder needs – focus on what you are good at to deliver the biggest impact.
• No measurement: Without evaluation mechanisms, the impact of social value efforts remains shrouded in guesswork. Procurement teams must establish comprehensive measurement frameworks to track progress (for example, via contract management). This also informs future actions.
• Disconnected stakeholders: Failing to involve stakeholders such as employees and local communities can mean alienating potential collaborators and reducing ownership of social value goals. All stakeholders must understand their own role in an organisation’s social value journey in order to deliver results.

A roadmap to social value success

Below is a 5-stage high-level roadmap for public sector organisations seeking to navigate the social value landscape and avoid such pitfalls.

Procurement teams are key to turning social value strategies into reality, and so engaging Procurement at the right stages and maximising the opportunity of the Procurement Act and new policies are an important part of the social value journey.

1. Define: Articulate what social value means for your organisation, how it aligns with your mission and values, and how procurement can support these objectives.
2. Identify: Prioritise areas where your specific capabilities and circumstances can create maximum social impact.
3. Plan: Develop a concrete plan with measurable goals and time-bound actions. Make sure to involve your supply chain at this stage to allow for early opportunity identification and preparation.
4. Measure and report: Track your progress through robust metrics and transparently communicate your social value journey.
5. Develop and engage: Continuously improve your commitments, keeping stakeholders involved and leveraging their expertise to amplify impact.

Social value: It is about a broader value for money approach and maximising public benefits

In an era of rising stakeholder expectations and tightening regulations, social value is no longer an optional add-on, but a strategic imperative.  And yet organisations often trip up: some miss the mark due to a lack of clarity, while others charge ahead with lofty promises only to stumble when to comes to delivery, measurement, and reporting.

A much broader value for money approach is required to maximise project outcomes and public benefits via innovative procurement and a robust social value strategy. This will require skilled procurement resources to maximise social value impact by maximising the use of such things as the competitive flexible procedure, having regard to objectives set out in the NPPS, as well as important local priorities, and effective stakeholder involvement to ensure that the right type of social value is delivered for the project, people and places and there is a strong and lasting impact. Delivering on effective social value strategies will require active stakeholder involvement, a strong understanding of aims, and an ability to track progress.

Crucially, it will be an iterative process, making it all the more important to put your shoulder to the wheel now.

How we can help 

At Efficio, we have extensive experience working closely with public sector organisations to create social value, supporting them in building strategies and implementing processes to measure social value.

Please get in touch via our public sector service page to find out more about how our procurement and supply chain consultants can help you navigate the changing social value landscape, upskill procurement teams, avoid common pitfalls, and unlock the full potential of your social impact activities.