Social Performance Management Processes

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Social Performance Management Processes Lessons
learnt from Imp-Act on how to operationalize
social performance
Kasia Pawlak and Michal Matul Based on
discussions with and work of MFC regional
partners (BosVita, Demos, Inicjatywa Mikro,
Integra Foundation, Prizma, Partner, FORA, MDF
Kamurj) Imp-Act global meeting, Bath, September
2004
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A. Learning with our regional MFI partners
www.mfc.org.pl/research
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B. Operationalizing social performance framework
MISSION STRATEGY
External environment
Verification understanding
TARGET IMPACT SUSTAINABILITY
MFI goals
improvement
MFI structure and processes
MFI scope of services
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C. SP goals clarification process (1)
MISSION STRATEGY
SP goals clarification
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C. SP goals clarification process (2)

MISSION STRATEGY
INTERVENTION (to specific target group)
Context, target group characteristics and needs
INPUTS
USE OF INPUTS
OUTCOMES (intended and unintended)
GOALS
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C. SP goals clarification process (3) example
Mission improve livelihoods of economically
active poor by providing high quality financial
services in a sustainable way.
Group enterprise loan
interactions with group members
training
money
Household consumption
Working capital
Employ workers
Business expansion
Additional money for household needs
Building household assets
Decreased business scale
Household overindebteness
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D. SP assessment use and learning processes (1)
MISSION STRATEGY
SP assessment use and learning
SP goals clarification
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D. SP assessment use and learning processes (2)
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2
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Analyse and report routine data
Verify against SP goals
Identify priority areas for exploration
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5
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Brainstorm causes and set hypotheses
Further analyse existing data
Set goals and develop research plan
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Conduct follow up research
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Learn to improve
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D. SP assessment use and learning processes
(3)example

• Mission improve livelihoods of economically
  active poor by providing high quality financial
  services in a sustainable way.
• Strategy further penetrate poor households
  segment in existing areas of operation
• Goals for next 3 years

Reaching and retaining clients from poor
households At least 30 of poor among new
clients Not more than 20 of non-poor among new
clients Average exit rate not higher than
20 Exit rate among poor and vulnerable non-poor
clients not higher than average exit rate
Improving livelihoods Not more than 5 negative
change observed among poor clients At least 30
of poor experiencing positive change At least 50
of vulnerable non-poor experiencing positive
change Delinquency structure the same among poor,
vulnerable non-poor and non-poor clients
Being sustainable organization FSS not lower than
100
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D. SP assessment use and learning processes
(4)example
Bad promotion
Low financial education
Too frequent instalments
Staff incentive system
New tax on imported goods
Health problems affecting clients households
Better services from competition
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E. SP assessment system development
institutionalization (1)
SP assessment system development
institutionalization
MISSION STRATEGY
SP assessment use and learning
SP goals clarification
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E. SP assessment system development
institutionalization (2)
Strategy, goals, intervention -gt outcomes
Routine SPA Monitoring necessary minimum on new,
current and exiting clients
Ad-hoc SPA Well guided follow up institutional
diagnosis and research
Selecting indicators and measures to describe
target group and outcomes
Building capacity to further explore prioritised
signals
Designing collection, quality control, analysis
and reporting tools
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F. SP management processes (1)
SP assessment system development
institutionalization
MISSION STRATEGY
SP assessment use and learning
SP goals clarification
SP management
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F. SP management processes (2)
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Consolidate learning and propose solutions to
improve performance
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Evaluate solutions
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Select the best solutions, develop and tests
concepts
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Implement the solutions
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Update SPA system
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F. SP management processes (3)

• Solution 1 Develop health micro-insurance
  product to help poor clients better cope with
  health risks
• Solution 2 Refine the consumer loan product so
  that it better responds to emergency needs of
  clients
• Solution 3 Retain experienced clients by
  refining incentive system, developing VIP package
  and improving customer service

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G. SP management processes
SP assessment system development
institutionalization
MISSION STRATEGY
SP assessment use and learning
SP goals clarification
SP management
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H. External auditing/reporting not only
indicators but also other dimensions of
performance
Source adapted from Imp-Act Guidelines
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H. Customizing for MFIs to come up with sound
standards
Indicators of MFI D
Indicators of MFI A
Indicators of MFI B
Indicators of MFI C
National / regional / international standards
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I. Training outline
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I. What I have learnt during the training?

• I realized the importance of mission as a key
  driving force. At any stage we should come back
  to our mission it will guide us.
• Kenan Crnkic, Prizma (Bosnia)
• It was very useful for me to see how to translate
  a big mission into action, into small details,
  operational things to be able to evaluate the
  performance and get back to the mission again to
  think how to do it better.
• Margarita Layalan, MDF Kamurj (Armenia)
• Social and financial performance there are no
  trade-offs in the long term we should be always
  driven by the mission.
• Biserka Kljaic, Demos (Croatia)
• I am so excited that there is a tool that helps
  you to improve internally that can be also
  informative for other stakeholders. In this way
  you have one system for all users that satisfies
  everybodys needs and this is cost-effective.
• Dijana Bilanovic , Partner (Bosnia)