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Using a proven and recognised methodology, LM3 enables any organisation, anywhere in the world, to calculate its economic impact on its local economy.
Understanding local economic impact improves policy-making and helps to measure corporate social responsibility goals. LM3 is a vital tool for a wide range of public, private and not-for-profit organisations.
The local economy is of huge concern to any local or regional government body and, of course, any private sector organisation wishing to tender for local government contracts. It is also a key area of interest for any charity or NGO that needs to understand the impact it has on the communities it is serving. And finally, all organisations have a corporate social responsibility to support their communities.
This stuff matters! But how does any organisation go about the task of trying to work out its local economic impact. There are a lot of factors to consider. Trying to weight the relative importance of project cost, supply chains and local wages is difficult; and the calculations involved are complex.
Attempting this assessment manually is a huge task and there is absolutely no guarantee that decision makers would attach any credence to the end result!
Our solution to this problem is an online tool that is easy to use; is built on a recognized methodology; and incorporates the mathematical power required.
Based on the Keynesian tool adopted by the New Economics Foundation, LM3 measures the ‘multiplier effect’ of income into a local economy over three 'rounds' of spending. The tool takes into account:
The multiplier is then calculated for every unit of currency spent within a ‘local’ area selected by the customer.
LM3 has been applied in the UK public sector and been used to demonstrate the local economic impact of over £13 billion of public, private, and not for profit spending.
It is fast becoming recognized as a key tool for any organisation that needs to assess local economic impact.
The case demonstrates the power of IT when it is used to solve a complex need with an elegant and easy-to-use product.