Grameen Foundation Social Performance Initiative

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Sanabel 6th Annual Conference
Beirut - May 2009
The Human Impact Measuring Changes in Clients
Lives
Jeff Toohig
Deputy Director, PPI Deployment
Grameen Foundation on Behalf of Grameen Jameel
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1. Social Performance Management2. Whats the
Progress out of Poverty Index?3.
What does PPI Data look like?4. How can PPI data
be used?
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Social Performance Management
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Our Perspective on SPM

• Grameen Foundation mission to enable the poor,
  especially the poorest, to create a world without
  poverty
• To get there, we must
• Help our partners achieve social goals
• Promote transparency and accountability
• Measure what we value

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Progress Out of Poverty Index (PPI)

• An objective client poverty assessment and
  targeting tool, which
• Provides social performance data
• Enables MFIs to manage social performance
• An inexpensive and easy to collect scorecard
• Derived from representative national household
  income and expenditure surveys
• Comprised of simple, non-financial indicators

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PPI within SPM Context

• By tracking poverty levels against other client
  data, make key decisions about mission and how to
  carry it out
• Managing social performance is based on
• 1) setting clear social goals and objectives
• 2) collecting information to monitor progress
  towards these objectives
• 3) using information to improve operational and
  strategic decision-making.
• Part of a social performance management system
  that helps advance an the mission.

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Objectives of PPI Use

• Understand poverty levels of clients
• And change in those levels
• Measure outreach
• Use poverty level data to improve products and
  services

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What does the PPI look like?
SAMPLE
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PPI in Action
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PPI Fundamentals Basic use
Client Response
Indicators
Points
8
0
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PPI Fundamentals PPI score
8
0
4
5
6
0
3
0
0
5
31
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PPI Fundamentals Poverty likelihood
The client interviewed has a 78 likelihood of
falling below the national poverty line and a 22
likelihood of being above it.
PPI score of 31
Poverty Likelihood
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PPI Summary

• Easy-to-use, inexpensive, transparent, objective
• Estimate likelihood that a household is poor
• Scores work for targeting
• Average all clients for portfolio poverty rate
• Track over time for progress out of poverty
• Practicality and accuracy
• One page, few indicators, simple (whole number)
  scores
• Work in the field on paper in real time (no
  software required)
• Valid for any program serving the poor, not just
  microfinance

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How are PPI data used?
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PPI Case Study ESAF
ESAF operates within, Kerala, Maharashtra,
Madhyapradesh Jharkhand, and Chattisgarh, with 96
branches and 241,788 clients.

Initial Findings Results of Below
1.25/Day/PPP ESAF Rural Kerala households
39.7 Compared to Average for all rural
Kerala households 34.1
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PPI Case Study Fonkoze
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Rural Vs Urban
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Age and Poverty
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PPI Case Study NWTF

• NWTF in the Philippines
• PPI collected in all branches, every client
• Collects additional indicators to refines
  outreach and products and services
• Compares data by branch to understand what
  products and services are most effective
• Outcomes
• Changed targets to admit 90 below poverty line
  new clients
• Adjusted loan size, loan cycle period and
  possible pre-payment options

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Data Use and Future Opportunities

• Link Social and Financial performance assessment
• Demonstrate blended results to donors and
  investors
• Market to Social Investors
• Disseminate results at all internal levels
• Disseminate results to the industry
• Potential staff incentives input

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www.ProgressoutofPoverty.org
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Progress Out of Poverty Index