Mutual Value Measurement
Consultancy for individual co-operative and mutual enterprises (CMEs)
‘As values-based businesses, the greatest challenge for co-operatives and mutuals, is to let our values shine. That’s why the BCCM teamed up with researchers at Monash University, our members and the CME sector, to find a new way of measuring our positive impact on our members, our customers, the community and the economy.’
MUTUAL VALUE MEASUREMENT (MVM) FRAMEWORK
Working with Monash University, BCCM and its members developed a framework that helps the CME sector measure their total value creation (mutual value) through a set of common dimensions and shared language about measuring and reporting mutual value.
The Framework uses six dimensions to cover the unique areas of value that CMEs generate:
Ecosystem and reciprocity
The MVM Framework can be used by CMEs across different industries, of different sizes, and with different capabilities. The Framework has been field tested is available with an implementation guide and templates that will allow interested CMEs to assess and plan the full adoption of the Framework.
BCCM is now able to help your firm to apply this methodology in order to help you use your mutuality to thrive as a business.
HARNESSING COMMERCIAL BENEFITS FROM MVM
By deploying the tool and incorporating MVM into your business, the focus on the mutual value you create can bring direct commercial benefits. MVM can help you towards:
- Improving your strategic planning
- Engaging better with customers, employees and other stakeholders
- Developing ideas for marketing to drive sales
- Communicating your firm’s economic and social value
- Accessing impact markets for investment
Initially of benefit for internal management use, the introduction of MVM can then be used for external purposes. Our team of mutual sector specialists can help you to apply the tool to help to add value to your business.
Improve your strategic planning
Mutual value can be a central aspect of your firm’s strategic planning by helping to focus on your core business purpose. Building an understanding of mutual value across your business leadership can engender a cohesive corporate stance.
Engage better with customers, employees and other stakeholders
Relationships with members and other stakeholders are critical to the successful functioning of mutuals. MVM can help to concentrate attention on meaningful relationships that help deliver the business purpose.
Develop ideas for marketing to drive sales
Differentiating your business offer in a crowded marketplace requires you to identify and drive forward clear communication of your unique value to members, customers and other stakeholders. MVM can help you to focus your marketing effort on the advantages that you have through your mutual ownership structure.
Communicate your firm’s economic and social value
Social and sustainability reporting is recognised as an important part of every firm’s story as a corporate citizen. From the role played in markets, to environmental and social footprints, businesses are conscious of their responsibilities to the economy and society. MVM adds a new dimension to this, establishing mutual business practice as a key contributor to social value delivery.
Help to access impact markets for investment
The growing impact investment market is a new opportunity for mutuals that intend to issue Mutual Capital Instruments. High quality social reporting that communicates the mutual value created and delivered by mutual businesses can feed directly into new prospects to raise investment capital.
MUTUAL VALUE MEASUREMENT CONSULTANCY PACKAGE
Our consultancy service is designed through a 4-step package that can help you as a mutual leader to understand the tool, apply it to your firm and begin to take advantage of it.
In the current social distancing environment, it can all be delivered via video conferencing and online methods.
Step 1 – Baseline review of business
- Desktop review of the firm’s stated purpose, annual reports, marketing documentation etc
- Consider the application of MVM criteria to existing practice
Step 2 – Online Workshop with key leaders/stakeholders to go through MVM tool
- Introduce MVM and reporting framework
- Go through MVM reporting items, discuss individually
- Using MVM – Test purpose, strategy & marketing against criteria of MVM
Step 3 – We Produce a ‘Mutual value report statement’
- We will make an assessment of how the mutual is performing against MVM reporting items
- A written statement, which could be used to communicate to employees, clients, partner organisations and suppliers, the mutual’s chosen approach to mutuality
- We will share a draft report of this assessment with the mutual
Step 4 – Consider feedback and finalise statement
- We will consider feedback from mutual
- Finalising statement and providing report with recommended plans, drawing on case studies of different mutuals’ approach to each MVM criterion
- Deliver final Mutual Value report to mutual
Potential add-ons/ follow up work:
- Plans to leverage mutuality for ESG investments
- Developing Membership strategies
- Matching governance structures to mutual purpose
- Stakeholder engagement plans
The Mutual Value Measurement (MVM) framework and related material was developed by the Business Council of Co-operatives and Mutuals (BCCM) in partnership with Monash University's Monash Business School. All intellectual property and rights are vested with BCCM and Monash Business School and any use of this material should only be done with the express authorisation of BCCM and Monash Business School.