In today’s procurement landscape, construction companies are increasingly aware of social value and the importance of evidencing it. Though the Social Value Act came into force in 2013, government policy has evolved to put a larger emphasis on social value by placing on it a minimum weighting of 10%. More recently, the Procurement Act 2023 has gone one step further to ensure buyers get more value out of their procurement, by shifting the focus from ‘Most Economically Advantageous Tender (MEAT)’ to ‘Most Advantageous Tender (MAT)’.
The legislation is evolving consistently to place a greater emphasis on social value, and the benefits construction projects bring to stakeholders and their communities. For companies like Alumasc Group, a leading manufacturer of sustainable building products, recording and tracking social value is not just a trend—it’s a strategic imperative.
In this blog, we interview Anthony Hitchman, Special Operations Director and Charlie Kitson, Senior Site Manager to find out more about Alumasc’s journey towards recording social value delivery, its impact on their company culture and business strategy, and why a bespoke approach to digitalisation is essential.
The need for change
Alumasc Group’s journey towards recording social value began with the recognition that understanding and documenting their social and environmental impact was crucial—not only for their corporate responsibility but also to meet future customer demands.
As Anthony Hitchman, Special Operations Director at Alumasc Group, explains, “We see it as not only the right thing to do for people and the planet, but also the right thing to do for our business because the demands are customer-led, and we need to be ready to meet the expectations of the future.”
The challenge, however, was the complexity of their business, which spans multiple divisions and sectors. The need for a unified yet flexible approach to recording and benchmarking their data was clear. This led Alumasc to seek out a digital solution that could be tailored to its specific needs, rather than adopting a one-size-fits-all approach.
Anthony adds that the decision to implement a social value and sustainability strategy has been a journey for the entire group, stating, “This has been a learning exercise across the business. The first step was to look at our environmental impacts, and how we can maximise our positive impacts while mitigating the associated environmental costs. The second step of this journey, which we’re on with Compliance Chain, is measuring and benchmarking our social value, to bring together our environmental, social and governance strategy as a whole.”
By reviewing its existing social value add, Alumasc has a point of reference from which to measure its continuous growth and improvement. Anthony adds, “Once we have benchmark figures, using Compliance Chain we can then regularly measure our performance against our strategy, which is key for our board of directors, clients and stakeholders.”
Implementing a digital solution
After exploring several options, Alumasc selected Compliance Chain as its digital tool of choice to track and measure social value. One of the key reasons for this was the bespoke nature of Compliance Chain’s social value management tool.“The lengths Beth from Compliance Chain went to in tailoring the software to us, reassuring us and making sure it could do everything we needed it to, made the decision for us,” says Anthony.
Usability was also a key focus for Alumasc Group as they explored software options. Anthony states, “The key was finding a software that was user-friendly to ensure we weren’t going to experience resistance in our teams, ensuring it will support, not hinder, a change in strategy. The flexibility of Compliance Chain allowed Alumasc to integrate the tool into existing processes without overwhelming our teams, ensuring a smoother transition to digitalisation.”
Why social value and company culture go hand in hand
The introduction of Compliance Chain has not only streamlined Alumasc’s reporting processes but has also had a significant impact on company culture. By tracking social value, the company has fostered a greater sense of purpose and engagement among its employees.
Charlie Kitson, who oversees site operations, notes that social value reporting often starts at site level, so ensuring that your employees are engaged in your social value objectives is key. “To ensure staff are on this journey with us, we have named ‘social champions’. Our social champions help organise the activities we do on site and report on them so everyone in the business can celebrate the impact we’ve made.”
Anthony adds to this, stating the importance of feeding your ESG strategy down: “We’ve already started putting strategies in place to work towards a sustainable future, including monthly ESG meetings, and introducing social champions so everyone across the business, from the board down, is singing from the same hymn sheet.”
Charlie makes reference to the community-based initiatives that have become more meaningful with the new system in place. He shares an example of a recent visit from the Air Ambulance, commenting, “The event sparked really positive conversations, and the team were engaged across the board.”
Moreover, the ability to measure and report on environmental initiatives, such as reducing energy consumption and improving waste management, has empowered teams to set and achieve ambitious targets. “We can now look at the difference our changes are making,” says Kitson, highlighting the motivation that comes from being able to see tangible results through reporting.
The strategic advantage
For Alumasc, recording social value isn’t just about compliance; it’s a strategic advantage. Hitchman points out that the data captured by Compliance Chain can be a powerful tool in the bidding process, especially for government contracts that require demonstrable social impact. “If our bid teams were looking to submit a tender on government contracts, the fact we have data on our social value commitments would give clients reassurance of our experience working with local community stakeholders, and confidence that we track and measure this,” he explains.
This strategic approach not only strengthens Alumasc’s position in the market but also aligns with its long-term goals for sustainability and social responsibility. As Hitchman succinctly puts it, “If you don’t measure something, you’ll never improve it.”
A piece of advice
For companies looking to embark on a similar journey, Hitchman stresses the importance of finding a solution that can be tailored to your specific business needs, rather than opting for a generic solution that may not fully align with your goals, stating, “Discuss internally what you think you need from a software and look to find a solution that meets those needs.”
Anthony and Charlie provide some final advice for other companies looking to start measuring their social value activity, stating, “Our advice to those who want to start tracking their social value is to start slowly in terms of your ambition. But equally, you’re probably already doing more than you realise. Engage with the experts, get buy-in from your team, and ensure the solution you choose can be tailored to your specific needs.”
Alumasc’s experience demonstrates the profound impact that recording social value can have on a company’s culture, strategy, and market positioning. By choosing a bespoke digital solution like Compliance Chain, Alumasc has not only streamlined its reporting processes but also created a more engaged and purpose-driven workforce. As it continues on this journey, Alumasc is well-positioned to meet future challenges and lead the way in sustainable business practices.
As the Head of Operations at Compliance Chain, Adam’s role is integral to enhancing our operational efficiency and ensuring our software solutions meet the pinnacle of quality and effectiveness.
