During Almedalen Week, Forum for Social Innovation Sweden organized Forum for Social Innovation Sweden breakfast workshop on the new financing model known as Social Impact Bonds (SIBs). In early October, the next step was taken when Fryshuset in Stockholm organized a follow-up full-day workshop. Once again, the event was organized in collaboration with Ingvar Nilsson, and just as in the summer, the discussions were lively and many new questions came to light.
Just over 20 people attended the workshop, all of whom were deeply interested in and committed to seeing this new form of financing take shape in Sweden. The participants were divided into four discussion groups based on whether they were a purchaser, a provider, a financier, or an intermediary in the creation of a SIB. A number of specific issues were then discussed around the tables and throughout the room.
Camilla Backström, who oversees funding and Theory of Change Forum for Social Innovation Sweden serves on the steering committee for Fryshuset’s SIB, was one of the workshop’s active participants.
– Today has been incredibly informative and valuable. A great many new questions and perspectives came up during the discussions, and now we need to try to tie them all together. We must also remind ourselves that we are somewhat pioneers and that we are in the midst of a learning process. My impression is that there was a tremendous willingness and strong commitment expressed today to try working with SIBs as a financing solution,” said Camilla Backström.
Holistic perspective
Among those seated at the sponsors' table were Anne Holm Rannaleet, Executive Chair of IKARE and a member of the EVPA Board.
“The day was very well organized and interesting. I think what’s important now is to take a holistic perspective and try to understand one another—to see each other’s motivations and starting points. Even within the different groups, we aren’t entirely homogeneous, and these differences become strengths if we can make the most of them,” she said, continuing:
– For a SIB to succeed, it requires collaboration, where everyone gives and takes and is solution-oriented. Courage and dialogue are also important, as is being prepared for the fact that things might not go 100 percent right the first time. It’s about daring to try, so you can learn from the experience and apply those lessons next time. The will is there; now it’s a matter of approaching the task with humility. The whole is greater than the sum of its parts.
Lena Lago is the project manager for Fryshuset’s SIB (funded by the Postcode Lottery), as well as the convener and organizer of this SIB workshop. Together with the Municipality of Klippan, Fryshuset will conduct a feasibility study to examine how an SIB can be developed in a Swedish context.
“What’s interesting about a Social Impact Bond is that it focuses on outcomes rather than inputs. It’s a different way of working,” Lena said. The social challenge that Klippan has decided to tackle involves the possibility of halting and preventing further social exclusion among at-risk parents, from a public health perspective.
“Together with the municipality and an external investor, we now have the opportunity to test the SIB concept. For example, we hope to learn more about the requirements an external investor sets for participating in an SIB,” Lena said.
She also seemed very pleased with the workshop at Fryshuset.
Cross-sectoral forum
– It was an incredibly exciting day! I learned so much and gained so much new information. Now we need to sit down together and think about how to move forward. This is truly something new, and now we need to work together to create a cross-sectoral platform. Because that doesn’t exist today in our “siloed world.”
Hans-Åke Lindvall is the municipal director of Klippan and explains that the municipality has chosen to partner with Fryshuset because it wants to tackle its social challenges in a new way.
“We want to address these issues earlier than we do today. I see a SIB as a subset of what we call social investments, and I hope this work will foster both partnerships and social impact,” he said.
The Klippan City Council will most likely allocate 2.5 million kronor for social investment initiatives at the end of October, if everything goes as proposed by the municipal executive board.
“If we can build on this further with an external investor, that would be great,” said Hans-Åke Lindvall, adding:
– I had high expectations for the workshop at Fryshuset, and they were exceeded. This was really, really good. The opportunities and challenges of a SIB became clear during the day, and I found it incredibly exciting. It also feels good that Fryshuset is involved as an intermediary in our project. They have a strong brand and a high level of credibility in my eyes. However, I think we’ll call our SIB the Partnership for Social Impact, to make it a little clearer.