amerms course 1: learning to cost-effectively assess and manage social performance - ppt 1
DESCRIPTION
FULL TITLE: Learning to Cost-Effectively Assess and Manage Social Performance ROOM: Impala/Lake Turkana FACILITATED BY: Freedom from Hunger Mr. Christian Loupeda (USA)TRANSCRIPT
Learning to Cost-Effectively Asses and Manage Social
PerformanceDay-Long Course
Africa-Middle East Regional Microcredit Summit
Kenyatta InternationalConference CenterNairobi - KenyaApril 2010
OVERVIEW
•Rationale, Background and Concepts
•Managing and Assessing Social Performance
•Some Resources
Rationale, Background Concepts
Double bottom line attraction
What does this mean?
Double bottom line attraction
Microfinance has economic logic + social/ethical basis
Double bottom line attraction
Microfinance has economic logic + social/ethical basis
MISSION
social
financial
•A social enterprise
•Financial and social returns
•Financial – a means to a social end; has social value
Double bottom line attraction
Microfinance has economic logic + social/ethical basis
MISSIONsocial
financial
• Growing ‘professionalisation’ in past 15 years
• Transformation from NGOs into commercial entities
• Focus on the financial
• What about the social?
Social value/social returns in microfinance?
Do we see it clearly ?
Social concerns
Lack of clarity
(mission, social responsibility)
Mission drift
Reputation risk
Mission drift?
•Microfinance = microproducts intended for the ‘poor’ and for ‘poverty reduction’ (Millennium Development Goals)
•What are we achieving? What is the evidence? •Are we serving the poor – who do we mean by ‘poor’? •Are transforming MFIs staying true to the original reason for which microfinance started?
Reputational risk
•High – and deceptive - interest rates charged to clients•Coercive debt collection practices•High profits to investors (at the expense of clients)
• Small trade financing in a saturated market (Thanks to the loan I can buy and sell more tomatoes, but my neighbour may sell less)
•Rapid growth - leading to: culture of pushing debt, multiple micro-lending, over-indebtedness of clients,
Adverse media and political attention
“The crushing burden of microcredit”
In …, FRANCE 24 reporters find that far from alleviating poverty,
microcredit has been plunging people deeper into debt.
The technique of loan staff is to scare borrowers and insult them
April 2008, video on line;
Therefore …. Social Performance
•New focus in microfinance• Restore the balance
• To support transparency
and effectiveness• Define what we are
aiming for• Ensure that we are doing
what we say we are
MISSION
social
financial
Growing interest in social performanceGlobal initiatives including • The Social Performance Task Force (started 2005)
- defining issues, engaging the sector; coordinating role:• Multiple stakeholders:
–NGOs, MFIs –Networks/Associations–Donors–Social Investors–Microfinance Raters–Action Research Programmes/Universities
First task for the Social Performance Task Force •To agree a definition for Social Performance
What is Social Performance?
The effective translation of an institution’s
mission into practice
in line with
accepted social values
Mission
Values
Social Performance Pathway
• About process and results – the steps to achieve impact:
Intent Operations Results
MISSION
IMPACT
Dimensions of Social Performance
PROCESS: INTENT AND DESIGN
What are the mission and values of the MFI?
Does it have clear social objectives?
PROCESS: INTERNAL SYSTEMS & OPERATIONSAre systems designed and in place to achieve
those objectives?
RESULT: OUTPUTS
RESULT: OUTCOMES
Have clients experienced social and economic improvements?
Does the MFI serve target clients? poor and excluded people? Do the services meet their
needs?
RESULT: IMPACTS
Can these improvements be attributed to institutional activities?
Social Performance vs Impact Assessment
Social Performance
• Intent, systems …and results• Focus: Improving systems to achieve social goals
• On-going – integration into management
• MIS, range of information methods – practical, cost-effective
Impact
• The end result(s)•Change attributed to the intervention: Focus on proving impact
•Costly, complex, post facto research exercise
•Results are often disputed on account of attribution, self-selection etc
Managing and Assessing Social Performance
FOUR MINI CASE STUDIES
These are real life examples
Each group discuss one example:
1. Clarify concepts/terminology2. What problems do you see? 3. Share any similar experience4. How can the MFI respond – to become more effective in
serving its clients and achieving its social goals? (Think systems e.g. staff orientation? more information? ……)
1 person to present from each group
FOUR MINI CASE STUDIES
Key lessons learned:• Information•Clarity• Adjusting systems• Integrating into management• Everything contributes – organisational culture
Dimensions of Social Performance
PROCESS: INTENT AND DESIGN
What are the mission and values of the MFI?
Does it have clear social objectives?
PROCESS: INTERNAL SYSTEMS & OPERATIONSAre systems designed and in place to achieve
those objectives?
RESULT: OUTPUTS
RESULT: OUTCOMES
Have clients experienced social and economic improvements?
Does the MFI serve target clients? poor and excluded people? Do the services meet their
needs?
RESULT: IMPACTS
Can these improvements be attributed to institutional activities?
Implications
· Social Performance is both process and results• Putting mission and social values into practice is not
automatic, it has to be part of deliberate management
· Involves a series of steps to achieve change
· Information about results must feed back to the organization to influence strategy and operations
· Imp-Act!
Social Performance Management The process of translating mission into practice, including setting social objectives, tracking Social Performance, and using information to improve practice
Social Performance Management
2.3a
1. Developing social goals and objectives
2. Monitoring and assessing performance
3. Improving operations
Social Performance Management Components
3.1a
Types of Social Goals
• Reaching target clients
Who will the MFI reach?
• Meeting target-client needs How will the MFI meet the needs of its clients?
• Change in target clients’ lives What positive changes will the MFI contribute to in
the lives of its target clients?
3.1f
People’s Bank Case Study: Social Goals and Objectives
Social Goals Social Objectives
Reaching target clients:Poor women and their families
• In each of the next 3 years, deepen outreach of services to poor households, reaching at least 50% “poor” and 10% “very poor” among new clients
Meeting target- client needs:Providing quality financial services
• Reduce client exit rate by 20% in the next 3 years
• Increase client satisfaction by 15% in the next 3 years
Change in target clients’ lives: Improving their well-being
• In each of the next 3 years, reduce poverty level of clients and their families by moving at least 50% of clients up one level of the poverty scale
2.3a
1. Developing social goals and objectives
2. Monitoring and assessing performance
3. Improving operations
Social Performance Management Components
Information Sources Learning Points
• To understand patterns and trends, you need some information on a routine basis, which we refer to as monitoring
• To understand the reasons underlying a trend, you may need additional information from time to time, which we refer to as assessment
4.1a
Social Performance Management Information System Learning
Points• You already have many sources of information
• Start with what you have, and expand from there only when there is a clear need
• Let your Social Performance Management system evolve over time, instead of trying to build from scratch
4.2a
2.3a
1. Developing social goals and objectives
2. Monitoring and assessing performance
3. Improving operations
Social Performance Management Components
5.2a
Decision-Making Key Points
• When managing Social Performance, it is important to understand the potential trade-offs or tensions that may exist between the pursuit of social and financial goals
• It is most important to consider short-term trade-offs if you consider that, as a social enterprise, your MFI’s mission, reflected in social goals and objectives, are ends, and financial sustainability is the means to achieving those ends
Integrating Social Performance Management Into an Organization
• It is important to have a systemic view of Social Performance. It relates to your entire way of working and to the design of your organization
• Create an enabling internal environment for Social Performance Management by building buy-in, aligning systems, and establishing an organizational culture that supports the achievement of your mission
6.3a
2.2cSocial Performance Pathway: Strategy and Operations
• Goals
• Objectives
• Range of products and services
• System use
• Service delivery
• Human resources
6.2a
Social Performance Management Benefits and Costs
• What are the benefits of Social Performance Management?
• What are the costs and resources required?
• How do you verify that the system is cost-effective?
6.2b
Benefits of Social Performance Management Information
• More appropriate products and services for clients • Better service for clients
• Higher retention of clients
• Program growth
• Lower operational costs
• Demonstrate Social Performance to external stakeholders
Costs and Resource Requirements for Social Performance Management
6.2c
• Impact survey: high cost in terms of time and money
• Focus group discussions: low cost, but requires trained and experienced personnel
• Individual interviews: cost depends on number of interviews; requires trained personnel
Tools and Strategies for Social Performance, include:
Clients use of services and satisfaction
Effective interest rates
Portfolio segmentation
…And…
Food security survey
Client protection principles
Collect specific clients information
Small Enterprise Foundation - SEF
Small groups work:
•Group 1: What are the main characterisctics of SEF SPM approach (First paragraph)?•Group 2: What strategic elements charaterize SEF SPM
mechanism ? Explain how they fit together (Second paragraph)?•Group 3: What are the systems and and tools that SEF
set up to manage its social performance (Third paragraph)?•Group 4: What adjustments did SEF make to its
operations for a successful SPM (Fourth paragraph) ?
Fulfilling the Promise
Social Performance Management
Some Resources
SEEP NETWORK www.seepnetwork.org
• Glossary of terms in Social Performance• Progress Briefs
– #1: Overview of Social Performance– # 2: Social Performance Management – # 3: Assessment tools– # 4: Social Rating
• Social Performance Map• Social Performance – Reporting Framework
Imp-Act www.imp-act.org
• What can SPM do for you? • Managing your social performance • Learning and support
Now available online: Putting the 'social' into performance management: A practice-based guide for microfinance
An online SPM Resource Centre
SPM Network: spmnetwork.net
CGAP
www.cgap.org/portal/ • Focus Note #41 May 2007
Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions
The MiX
http://www.themix.org/standards/social-performance
Social ResponsibilityBringing Pro-Consumer Ideals to the Client:
A Consumer Protection Guide for Financial Institutions Serving the Poor•ACCION Monograph series No. 14, 2006
www.publications.accion.org/publications/Bringing_P_207.asp
www.campaignforclientprotection.org
Poverty Assessment Tools
• The Progress out of Poverty Index (PPI), Grameen Foundation www.progressoutofpoverty.org
• IRIS Poverty Assessment tools (USAID) www.povertytools.org/implementation.html.
www.microfinancegateway.org
Library
Hot topic
FundamentalsOverviewGlossaryWeb Resource GuideFAQs
Tools
4
What Do We Do Next?
•Let’s take few minutes to reflect on what to do next…
