Something to ponder today in the issue of pay for success and pay for performance. Interesting reading.
Meanwhile this is a wonderful day where we applaud the great achievements of the most successful economy the world has ever known. Happy Independence Day to all our American readers whether in the USA or elsewhere.
Social Impact Bonds And Pay For Success – Are They Synonyms?
On a recent trip to the US, I noticed that the discussions around ‘Pay for Success’ were a little different to those I’d been having on ‘Social Impact Bonds’ with other countries. Particularly in the measurement community, there was an idea that Pay for Success took measurement of social programs to a new level: that ‘Pay for Success’ meant paying for an effect size (by comparison to a control group), rather than ‘Pay for Performance’ which paid for the number of times something occurred. The media release for the recent Social Impact Bond Act mentioned both Pay for Success and Pay for Performance. I have not seen a definition of social impact bond that specifies a type of measurement.