introduction to the social performance indicators (spi) tool

Introduction to the Social Performance Indicators (SPI) Tool

Introductions & Expectations

Microfinance knowledge exchange network focused on disseminating good practices

Core members: five French organizations specialized in microfinance

Partners: MFIs, networks, donors, researchers, and investors in Africa, Latin America and Asia

Working areas: impact and social performance, governance, rural and agricultural finance.

www.cerise-microfinance.org

CERISE

CERISE and Social Performance Actively promoting social performance in the MF

sector since 2001

Created Social Performance Indicators tool (SPI) to assess performance of MFI partners

Since 2008, broadening focus to include investors –SPI Investor under development


ProsperA network

PROmotion of Social PERformance – an Alliance initiated by CERISE and its partners

Over 60 members (June 2011) Networks from Africa, Asia and Latin America MFIs Multilateral agencies TA providers from Europe Social investors

www.cerise-microfinance.org/-reseau-prospera-


Overview1. Background to the SPI2. The SPI in a nutshell3. SPI and SPM Objective

Familiarize participants with the SPI and its use as a Social Performance Assessment tool and entry point to Social Performance Management

1. Background to SPI

Background to SPI

90’s: Emphasis was on financial performance, little attention for social performance

First discussions in 2001 (CERISE & partner MFIs): Microfinance and social links

A need to improve accountability + visibility for social performance, in order to promote microfinance’s core priority.

Development process

But, no tools!

Background to SPI

Development process of SPI initiative SPI 1 (2001 – 2003) - Conceptual framework (research and practitionners)- SPI tool version 1 SPI 2 (2004 – 2005) - Field testing: 25 MFIs in different contexts- SPI version 2 and operational guide SPI 3 (2006 – 2009) - Promotion of SP, association with SPTF - SPI version 3 compatible with MIX SPS SPI4 (2009 – 2011)

SPI for the investors Work with MFIs to innovate and improve practices: rural finance, new products, savings, consumer protection, client surveys, MIS

Background to SPI

Most recent version of SPI (3.3) Excel format, no macros! (compatible Mac/PC) Compatible with Social Performance Standards reported

to MIX Integrates latest initiatives: Smart Campaign, SPTF

Universal Standards, Seal of Excellence, MFTransparency, MIV Disclosures Guidelines.

Wiki to access material, ask questions, leave comments SPI Standards of Use

Who uses SPI?Background to SPI

MFIs450 SPI audits in CERISE/ProsperA database

(around 350 MFIs)

MFIs450 SPI audits in CERISE/ProsperA database

(around 350 MFIs)

MFI NetworksBenchmarking SP, standardized

reporting, MIS

MFI NetworksBenchmarking SP, standardized

reporting, MIS

Social Investorsway to dialogue with partners,

raise awareness of SP

Social Investorsway to dialogue with partners,

raise awareness of SP

Foro Lac Fr, RFR, Finrural, CIF,

Consortium Alafia, MCPI…

Oikocredit, Kiva, Grameen-Crédit

Agricole, AFD, Sidi, etc

SPI users from ProsperA network

2. The SPI in a nutshell

SPI Layout

Questionnaire(Excel)

Questionnaire(Excel)

Operational Guide(Wiki Page)

Operational Guide(Wiki Page)

Standards of UseGuidelines by indicator

Information sourcesOpportunity to comment

Standards of UseGuidelines by indicator

Information sourcesOpportunity to comment

• Contact information

• Part 1: Profile, Social Strategy & Governance

• Part 2: SP Indicators (4 dimensions)

• Contact information

• Part 1: Profile, Social Strategy & Governance

• Part 2: SP Indicators (4 dimensions)

http://spiwikiv3point3.pbworks.com/


Audits the internal processes the MFI has in place for reaching its social mission.

IntentWhat is the MFI’s mission? Does it have clear social objectives?

Internal systems and activitiesAre they in place to help achieve objectives?

OutputsDoes the MFI know whether it’s reaching target clients?

OutcomesDoes the MFI know whether its clients have seen improvement?

What does it do?

The SPI tool

NOT IMPACT

ANALYSIS!

NOT IMPACT

ANALYSIS!

Intent Internal systems/activities

Outputs Outcomes

Part One: Description of MFI, Context, Social Strategy, Financial performance

Part Two: Social Performance Indicators Dimension 1: Targeting and Outreach Dimension 2: Products and Services Dimension 3: Benefits to Clients Dimension 4: Social Responsibility

Content of Questionnaire

The SPI tool

Each dimension is broken into 3 criteria and has 16-19 questions

for a total of 25 points

The SPI tool

Questionnaire – Part Two

Dimension 1: Targeting and Outreach

Selection of operating zones

Client selection devices that favour poor and excluded people

Services characteristics that facilitate access of the poors

and excluded

Geographic

Individual

Pro-poor methods


Dimension 2: Products and Services

Diversity of credit, voluntary savings

Decentralization, rapidity, transparency, drop-outs

Direct or through partnership: transfers, mobile banking, fin ed

Range of services

Quality of services

Innovative and non financial services

The SPI tool


Dimension 3: Benefits to ClientsTracking changes, impact

studies, profit-sharing

Level and quality of participation

Group formation, collective management,

client advocacy

Economic benefits

Client participation

Social capital/client empowerment

The SPI tool


Dimension 4: Social ResponsibilitySalary scale, training,

participation in decisions, turn-over

Consumer protection

Respect of local culture, local development,

environmental protection

To employeesTo employees

To clientsTo clients

To the community and environment To the community and environment

The SPI tool

Internal self-assessment or external audit

Centralized (top management) or participatory approach (different stakeholders and levels of the MFI)

1-3 day process (centralized) / 4-6 day (participatory)

The SPI tool

Methodological options

Simple

Why use the SPI?

The SPI tool

Results presented in radar and diamond

graphs

Easy to analyze

Standardized results

Compatible with SPSPeer group analysis

Quick & easy to apply; easy to verify

Context and strategies

• Rural, women business sector• Mature MFI• Previous crises in MF sector

(i.e: over-indebtedness, mission drift) has pushed social agenda forward

SPI results

• Strong and balanced performance

• Range of services and Benefits to clients can be improved

SPI results

• Strong and balanced performance

• Range of services and Benefits to clients can be improved

The SPI tool

Example of results: A participatory MFI

0%

20%

40%

60%

80%

100%

Targeting the poor and excluded

Adaptation of services

Benefits to clients

Social responsibility

0%

20%

40%

60%

80%

100%Geographic Targeting

Individual targeting

Pro-poor methodology

Range of traditional services

Quality of services

Innovative and non financial services

Economic benefitsClient participation

Empowerment

SR towards staff

SR towards clients

SR towards community and environment

Communication with partners

2 page summary

Social Reports

The SPI Database

Database working through Excel

More than 450 SPI results sent by 350 MFIs (sept 2011 )

Results are processed on a confidential basis

Enables to generate benchmarks to compare the SPI results of an MFI with those of a peer-group

Comparing MFI / national benchmark

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%Geographic targeting


Methodological targeting

Range of financial services

Quality of services

Innovative&non-financial services

Economic benefits for clients

Clients’ participation

Empowerment

SR towards staff

SR towards clients

SR towards community

Average of + Yes + SPI3 + Bolivia (12 MFIs)

Average of + CRECER 2008 SAEA (1 MFIs)

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

Targeting / Outreach


Benefits for clients




0,0%

20,0%

40,0%

60,0%

80,0%

100,0%Geographic targeting




Quality of services




Empowerment

SR towards staff

SR towards clients




0,0%

20,0%

40,0%

60,0%

80,0%

100,0%







No_Redit Yes No_Redit (Tous)SpiGene SPI3 SpiGene (Tous)EvalType (Tous) EvalType (Tous)SPI Evaluation (Tous) SPI Evaluation CRECER 2008 SAEACountry Bolivia Country (Tous)Region (Tous) Region (Tous)ForPro-NonForPro (Tous) ForPro-NonForPro (Tous)GouvType (Tous) GouvType (Tous)ZoneInterv (Tous) ZoneInterv (Tous)Target Market (Tous) Target Market (Tous)Outreach (Tous) Outreach (Tous)Scale (Tous) Scale (Tous)Age (Tous) Age (Tous)FinancialIntermediation (Tous) FinancialIntermediation (Tous)TypeInterv (Tous) TypeInterv (Tous)

Select results from an evaluation or a group of evaluations from your

database

Select other results from an evaluation or a group of evaluations

from your database

Criteria 1: Choose the country(Ex: Bolivia)

Criteria 2: Choose the MFI(Ex: Crecer)

Comparing 2 national benchmarks

No_Redit Yes No_Redit YesSpiGene SPI3 SpiGene SPI3EvalType (Tous) EvalType (Tous)SPI Evaluation (Tous) SPI Evaluation (Tous)Country Ecuador Country EcuadorRegion (Tous) Region (Tous)ForPro-NonForPro (Tous) ForPro-NonForPro (Tous)GouvType NGO GouvType Credit UnionZoneInterv (Tous) ZoneInterv (Tous)Target Market (Tous) Target Market (Tous)Outreach (Tous) Outreach (Tous)Scale (Tous) Scale (Tous)Age (Tous) Age (Tous)FinancialIntermediation (Tous) FinancialIntermediation (Tous)TypeInterv (Tous) TypeInterv (Tous)

Select results from an evaluation or a group of evaluations from your

database

Select other results from an evaluation or a group of

evaluations from your database

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

Geographic targeting




Quality of services




Empowerment

SR towards staff

SR towards clients


Average of + Yes + SPI3 + Ecuador + NGO (2 MFIs)

Average of + Yes + SPI3 + Ecuador + Credit Union (10 MFIs)

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%







0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

Geographic targeting




Quality of services




Empowerment

SR towards staff

SR towards clients




0,0%

20,0%

40,0%

60,0%

80,0%

100,0%







Criteria 1: Choose the country(Ex: Ecuador)

Criteria 1: Choose the type of governance(Ex: NGO)

Criteria 2: Choose the type of governance(Ex: Credit Union)

Criteria 2: Choose the Country(Ex: Ecuador)

3. SPI and SPM

From “SPA” to “SPM”

Systematic assessment of social performance and systematic use of this information to improve

practices

SPAa measure of how well

an institution uses its systems and

operations to generate positive social benefits

SPAa measure of how well

an institution uses its systems and

operations to generate positive social benefits

SPM the use of this measure

to make decisions

Social Performance Management

SPI as a diagnostic tool

SPI as a management tool

SPI as a communication tool

SPI and SPM

SPI as an entry point to SPM

1. Setting clear social objectives and strategy

2. Monitoring progress in meeting these objectives

3. Using social performance information to make decisions

Social Performance Management

Three main components

Data collection and use of information

is at the heart of SPM

Data collection and use of information

is at the heart of SPM

SPI as a diagnostic tool Gives an overview on social performance for the MFI,

strengths and weaknesses

Help identify priorities for the MFI to improve SP

Identifies key criteria to be followed

Serves a basis for an internal control system (“social dashboard” or social scorecard)

SPI and SPM

SPI as a management toolSPI and SPM

Once identifying priority areas with the SPI, the SPI can be combined with other tools to address them

An MFI wants to…

Understand high drop-out ratesUnderstand high drop-out rates

Expand outreach to the very poorExpand outreach to the very poor

Verify decision making processes to integrate SP data

Verify decision making processes to integrate SP data

Understand/ Improve overall SP or avoid mission drift

Understand/ Improve overall SP or avoid mission drift

Market research

PPI/PAT

Governance analysis

Internal social audit (ex.: SPI)

SPM Tool

The SPI promotes transparent communication within MFI (Board, general assembly, etc.), with investors, clients, the sector, authorities and the general public Consistent results, easy to prepare reports and briefs Showcases good practices, highlights efforts to improve

Creates a common language on social aspects of microfinance and contributes to benchmarks

Creates a common language on social aspects of microfinance and contributes to benchmarks

SPI as a communication tool

SPI and SPM

Good SPM hinges on effective communication of the social performance agenda to all stakeholders

From SPI to Social Dashboards

For investors, the SPI is also…

SPI and SPM

A diagnostic toolA diagnostic tool

A governance & management toolA governance &

management tool

A communication tool A communication tool

Does the MFI reflect the investor’s own values?

Does the MFI reflect the investor’s own values?

Id’s priorities for managing relationships with MFIs & reduces investment risks

through better knowledge of partners / potential capacity

building

Id’s priorities for managing relationships with MFIs & reduces investment risks

through better knowledge of partners / potential capacity

building

Between MFI-investor, between investors-sharesholders, among

investors

Between MFI-investor, between investors-sharesholders, among

investors

For more information:

Website:

www.cerise-microfinance.org

Email:

[email protected]

Wiki:

http://spiwikiv3point3.pbworks.com

http://www.cerise-microfinance.org/

http://www.cerise-microfinance.org/

mailto:[email protected]




introduction to the social performance indicators (spi) tool

Documents

social performance management

spi module

social performanceactively

social linksa

social credibility

investors spi investor

sptf spi version

financial performance