Why data visualization needs to articulate performance
simple concept, new stakes
This was originally posted by Bureau Blank on the blog Ideas + Execution talking about data here.
Pay for Success is a simple concept: private investors finance social service programs upfront, and the government does not pay anything unless the program works. The incentive for initial investors is in the potential financial and social returns if measurable results are achieved. And, the government pays for only high-performing programs.
According to the Huffington Post, the largest Pay For Success transaction in the world to date recently closed. This seven-year $27 million deal is focused on reducing recidivism and improving employment outcomes for at-risk youth in the Boston, Chelsea and Springfield, Massachusetts areas. Here they are visualizing the program’s performance (also the image above).
The #payforsuccess hashtag appeared over 245,322 times in Twitter timelines in the past week (3/13/2014 — 3/20/2014), and is most influentially used by Goldman Sachs, PhilanTopic, and LivingCities (according to Hashtracking methodology). It’s showing up in the news too:
- The Atlantic, “New Motto for a Leaner Washington: Pay for What Works”
- MassLive, “Massachusetts Announces $15 Million “Pay for Success” Grant Program for Adult Basic Education”
- The City Sentinel — Commentary in Oklahoma City, “How the Pay for Success Program Could Boost Prison Reform”
- The Hill — Congress blog, “How Social Impact Bonds Can Improve Public Services while Lowering Taxpayer Costs”
When sizing up performance is tricky, has there ever been a more critical time to communicate the quantifiable success of philanthropy?
Metrics are being measured both in the public sector (LouieStat — where the government’s performance in Louisville, Kentucky is made transparent) and in contemporary culture (Feltron’s personal annual reports and his new app). What matters most is choosing the right metrics and the quality of how the results are crafted. This is reiterated at SXSW 2014 and in a recent report by HUGE.
If you are interested in further exploring the Pay for Success model, check out these references:
- The White House’s perspective
- Nonprofits Finance Fund’s Pay For Success Learning Hub
- Third Sector Capital Fund’s Pay for Success FAQ
Between our recent work with the NYC Department of Probation and Pay for Success, we welcome additional resources and conversations regarding data and the criminal justice system. Feel free to reach out to me personally: lara@bureaublank.com or shout out to us on Twitter Bureau Blank.
