SOCIAL IMPACT EVALUATION GUIDE SUPPORTING BUSINESS CASE DEVELOPMENT

APRIL 2016 | RELEASE 1

BUSINESS CASE DEVELOPMENT FRAMEWORK

V1.0 April 2016

BUILDING QUEENSLAND BUSINESS CASE DEVELOPMENT FRAMEWORK

This document forms part of the Building Queensland Business Case Development Framework, as follows:

GUIDANCE MATERIAL

Strategic Business Case

Preliminary Business Case

Detailed Business Case

SUPPLEMENTARY GUIDANCE MATERIAL

Cost Benefit Analysis

Social Impact Evaluation

Disclaimer: While every care has been taken in preparing this publication, Building Queensland accepts no responsibility for decisions or actions taken as a result of any data, information, statement or advice, expressed or implied, contained within. This material is provided as a guide only and is subject to regular review and updates.

Attribution: Content from the Business Case Development Framework should be attributed to: Building Queensland Business Case Development Framework.

Building Queensland Social Impact Evaluation Guide 2

Building Queensland Social Impact Evaluation Guide 3

CONTENTS

Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.1. Purpose of this document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

1.2. Approach to Social Impact Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

1.3. Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

1.4. Assessing Social Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

2. Key Concepts in Social Impact Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.1. Definition of Social Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

2.2. Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

2.3. Social Return on Investment Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

3. Assessing Social Impacts in the Development of the Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3.1. Preliminary Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

3.1.1. Step 1–Develop the Social Impact Baseline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

3.1.2. Identify and Describe Social Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

3.1.3. Identify Social Impacts that Cannot Be Monetised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

3.1.4. Step 2–Impact Risk Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

3.2. Detailed Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17Discussion: Managing a Socially Relevant Project
It is almost certain that you have worked on or managed projects that included social elements. Virtually every project has the potential for positive or negative impact economically, ethically, legally, or socially. Current project management practices do not always highlight these aspects of projects, particularly if the sponsoring organization does not embrace corporate social responsibility or consider it a strategic objective. The global focus on responsible business practices and accountability is changing how businesses operate. The way we manage projects must follow suit.
For this Discussion:

1-What are the benefits of incorporating social responsibility and sustainability principles into project management practices? What are the challenges? Provide at least one example of each.
2- Where in the project life cycle would the greatest change in project management practices be needed? Explain.
3- Which project management processes might need to be altered? Explain.
4- In what ways would the incorporation of social responsibility and sustainability principles impact the definition of project success?  

Required Reading :

Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK ® Guide). Sixth edition. Newtown Square, PA: Author.

Chapter 5, Project Scope Management 

Section 5.2, Collect Requirements (pp. 138-149)
Section 5.3, Define Scope (pp. 150-155)
Section 5.4, Create WBS (pp. 156-162)

These sections of the PMBOK (PMBOK ® Guide) describe the process for collecting project requirements, defining the scope of a project, and documenting the project scope in a work breakdown structure (WBS).

– https://greenprojectmanagement.org/the-p5-standard

– https://www.pmi.org/learning/library/incorporating-environmentalism-project-management-5957

– https://www.pmi.org/learning/library/project-management-global-sustainability-6393