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7 case studies
Social care systems that operate with decentralised capability and outcome-linked funding demonstrate how PSC principles apply beyond finance to human services. These models prove that high capability and low fragility can coexist.
Theory Connection: Social care case studies show the surprising result that decoupling (Δ) increases alignment (Λ). Buurtzorg's autonomous teams have better outcomes AND lower costs because eliminating management hierarchy removes extraction. Social outcomes contracts prove capital can recycle through outcome achievement.

Buurtzorg ('neighbourhood care') revolutionised Dutch home healthcare by eliminating management hierarchy. Self-managing teams of 10-12 nurses have full autonomy over scheduling, care decisions, and administration. The result: 40% lower costs, higher patient satisfaction, and happier nurses. The model proves a counterintuitive point: decoupling from management hierarchy (Δ) actually increases alignment (Λ) because nurses can respond directly to patient needs. It's PSC applied to organisational architecture.
IRISS (Institute for Research and Innovation in Social Services) bridges the gap between academic research and frontline practice in Scottish social care. Rather than traditional training, IRISS acts as a knowledge broker—translating research into usable tools, facilitating peer learning networks, and building sector-wide capability. The model recognises that knowledge needs infrastructure to flow. IRISS creates the 'pipes' through which evidence reaches practice, and practice informs research. It's regenerative because learning compounds across the entire sector.
Kids Company supported 36,000 vulnerable children in London under charismatic founder Camila Batmanghelidjh. Despite £42M in government funding and celebrity backing, it collapsed in 2015 within days of a final £3M grant. Investigations revealed chronic overspending, governance failures, and complete dependency on founder's relationships. Kids Company shows that charismatic leadership without structural governance creates extreme fragility—when the founder faltered, the entire system collapsed.
The Peterborough SIB was the world's first social impact bond, targeting prisoner reoffending. Investors funded rehabilitation services; if reoffending fell, government paid returns. Results were mixed: reoffending fell 9% vs control (triggering partial payment), but the program was terminated early when government launched a national scheme. The Peterborough SIB proved the concept but revealed challenges: complex measurement, political interference, and questions about whether market mechanisms suit social problems.