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Putting the ‘Social’ into Performance Management in Microfinance Lalaine M. Joyas Microfinance Council of the Philippines, Inc. (MCPI) PACAP Microfinance Development Forum 30 January 2009
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Social Performance ,[object Object],[object Object],[object Object],[object Object]
The SP Common Framework Context Country and regional development indicators (from secondary sources) Microfinance institution profile and financial services Process: Policies and Strategies  Social performance management (SPM)—mission clarity;  alignment of systems; decision making ,[object Object],[object Object],[object Object],[object Object],Results:  Achievement of Social Goals (SG) Outreach (SG-Or):  Depth and breadth, may include hired (non-family) employment)  Financial services (SG-Sv):  Variety, appropriateness, and transparency  Change (SG-Ch):  Outcomes and impact
Social Performance Framework ,[object Object],[object Object],[object Object],[object Object]
Dimensions of Social Performance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Social Performance Pathway
[object Object],[object Object],[object Object]
Social Performance Management ,[object Object]
[object Object],[object Object],[object Object],Social Performance Management Components
SMART Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Social Goals  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
People’s Bank Case Study:  Social Goals and Objectives ,[object Object],Change in target clients’ lives:  Improving their well-being  ,[object Object],[object Object],Meeting target- client needs: Providing quality financial services  ,[object Object],Reaching target clients: Poor women and their families  Social Objectives Social Goals
[object Object],[object Object],[object Object],Social Performance Management Components
Information system ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Social Performance Management Components
Social Performance Management  …in practice ,[object Object]
Social Performance Management  …in practice ,[object Object]
Social Performance Management  …in practice ,[object Object]
Social Performance Management  …in practice ,[object Object]
Leadership and culture ,[object Object],[object Object],[object Object],[object Object],[object Object]
Social Performance Management (SPM):   …what are the benefits? and what are the costs?
Benefits… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Costs… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Tools for Assessing Social Performance  Intent and Design Internal  systems/  activities Outputs Outcomes Impacts CERISE SPI MFC Social Audit SPA  ACCION SOCIAL Planet Rating Triodos/GRI - TSF FMO E&S Risk Audit M-CRIL Microfinanza Rating CGAP/Ford/Grameen PPI USAID/IRIS PAT FINCA FCAT Oxfam Novib SEEP/AIMS tools Common Framework for Social Performance Assessment
 

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Putting the Social into Performance Management in Microfinance

  • 1. Putting the ‘Social’ into Performance Management in Microfinance Lalaine M. Joyas Microfinance Council of the Philippines, Inc. (MCPI) PACAP Microfinance Development Forum 30 January 2009
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  • 22. Social Performance Management (SPM): …what are the benefits? and what are the costs?
  • 23.
  • 24.
  • 25. Tools for Assessing Social Performance Intent and Design Internal systems/ activities Outputs Outcomes Impacts CERISE SPI MFC Social Audit SPA ACCION SOCIAL Planet Rating Triodos/GRI - TSF FMO E&S Risk Audit M-CRIL Microfinanza Rating CGAP/Ford/Grameen PPI USAID/IRIS PAT FINCA FCAT Oxfam Novib SEEP/AIMS tools Common Framework for Social Performance Assessment
  • 26.  

Notes de l'éditeur

  1. Can be started by asking the following questions: When you go back to your MFIs, what do you usually expect from loan officers? For Donors: what do you expect from organizations whom you have given your grants with? Answers. Outreach Ask but how clients do cope with loans? Do they pay loans out of loans from other people (resorting back to “5-6”) Do they choose being hungry for them to pay loans? Then begin with SPM…
  2. - Is your institution a case like this (look at the slide) – imbalance between money and people  social
  3. So what have we learned so far...?
  4. The first component of Social Performance Management is to develop social goals and objectives.
  5. When defining social objectives, it is important to apply the SMART principle.
  6. To manage the SPM process, an MFI must first define in specific terms the results that it wants to achieve. Earlier we identified the 3 common types of results that all MFIs seek to achieve. These results represent the social goals that can be traced back directly to the organization’s mission. Social goals are a broad description of what you want to achieve. You can extract these social goals from the mission by asking these specific questions. <…refer to slide…>
  7. <…read slide…> If you want to deliberately manage Social Performance, you need to develop specific objectives for each social goal. Without SMART objectives, you have no specific information against which to measure your progress and, therefore, it would be difficult to know whether or not you are achieving your mission. Perhaps this is where your MFI is now. However, if objectives are SMART, they are more easy to manage because they are clear. Objectives are specific accomplishments that must be realized to achieve social goals. They represent achievements along the Social Performance Pathway that indicate progress towards the changes envisioned for your clients. Sometimes more than 1 objective can be linked to the same goal.  
  8. The first component of Social Performance Management is to develop social goals and objectives.
  9. The first component of Social Performance Management is to develop social goals and objectives.
  10. Not serving the targeted clients (case of NWTF) based on PPI Identifying of an SPM Champion –Case of CARD, CMEDFI, PBC, NWTF and other members of the SPM Working Group Donors: SPM begins as a requirement case of Oikocredit
  11. Not serving the targeted clients (case of NWTF) based on PPI Identifying of an SPM Champion –Case of CARD, CMEDFI, PBC, NWTF and other members of the SPM Working Group Donors: SPM begins as a requirement case of Oikocredit
  12. Not serving the targeted clients (case of NWTF) based on PPI Identifying of an SPM Champion –Case of CARD, CMEDFI, PBC, NWTF and other members of the SPM Working Group Donors: SPM begins as a requirement case of Oikocredit
  13. Not serving the targeted clients (case of NWTF) based on PPI Identifying of an SPM Champion –Case of CARD, CMEDFI, PBC, NWTF and other members of the SPM Working Group Donors: SPM begins as a requirement case of Oikocredit
  14. Organizational leadership and focus – strong Social Performance focus Commitment and leadership not enough – easy to say institution is strong in terms of social responsibility, but there are no policies to translate this commitment.
  15. Social Performance Management provides many benefits, including the following: Ability to segment the market and correct the design of products and services for target clientele. – for better service for clients and improve retention of clients. Ability to adjust delivery methods or the prices of products and services to better meet the preferences of any given segment. Information to pilot a new product in response to demand. Ability to have more consistent, timely and accurate reporting. Better mechanisms for internal control and efficiency --- leading to lower operational costs. Ability to manage multiple products and increase outreach. Ability of branches to monitor branch and loan officer performance, portfolio quality and/or other organizational or client information --- in order to manage and achieve program growth Ability to serve the needs of target clients more effectively, which can lead to greater competitiveness. Be able to demonstrate social performance to external stakeholders, such as funders, donors, networks, policy makers.
  16. What this slide is telling you is that when managing and assessing Social Performance, there are tools available. Along the Social Performance Pathway, there are tools that MFIs can adopt and use. But it is important to remember that as we talk about tools and indicators, we need to USE the information that is collected with these tools to improve practice. Assessing is not the end goal of social performance – improving practice is…so how do we take the information we learn and do something with it?
  17. SPM wants to achieve the balance. Going back to the very essence of Microfinance.