A couple of useful tools came out of the US recently (where they call social impact bonds “pay for success” bonds) and are hosted on the Pay For Success Learning Hub. The Rapid Suitability Questionnaire would be quite good to give participants an idea at the start of what they’ve got themselves into and what they need to do to get ready for a bond. The Capabilities Due Diligence Tools could be a bit overwhelming if looked at too early. I think their greatest value will be as an item bank from which relevant points can be pulled at different points! It’s not clear from the tools who might be submitting information to whom, although there is a clear assumption that responses will be scored and compared against other organisations. It’s not clear what process would lead to this situation – perhaps the kind of government Request for Proposal we saw in NSW? A due diligence tool to help service providers and intermediaries to ask for government information would be very useful and might include referral mechanisms, business as usual arrangements for comparison groups and historical data to estimate outcome change/effect. The two tools are described on the website as below:
RSQs are assessments consisting of 10-15 questions that evaluate organizational suitability and readiness to pursue a SIB model. There are seven different questionnaires customized for each of the stakeholders involved in a transaction. RSQs may be used as a self-assessment or a review of potential partners and are designed to help facilitate productive conversations between the various parties involved in a SIB.
Capabilities Due Diligence Tools provide a detailed framework to assess core capabilities for participation in a SIB transaction. They will identify strengths and gaps in readiness and are customized for service providers, intermediaries, and project evaluators. These tools are designed to support advanced discussions and lay the groundwork for collaboration across the multiple stakeholders involved in a SIB transaction. Each set of tools includes six downloadable modules that structure a due diligence process for assessing the readiness of different stakeholders to participate in a transaction.