social performance task force 1 an introduction to social performance making microfinance matter for...
TRANSCRIPT
1 SOCIAL PERFORMANCE TASK FORCE
An Introduction to Social Performance
Making Microfinance Matter for Clients and Their Families: Ensuring a Social Performance Bottom
Line in the Industry
2 SOCIAL PERFORMANCE TASK FORCE
•The effective translation of an institution’s mission into practice in line with accepted social values that relate to:
– reaching poorer and excluded clients;– improving the lives of clients and their families;– widening the range of opportunities for
communities.
What is Social Performance?
Intent Operations Results
Social Performance Pathway
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What is Social Performance?
Intent Operations Results
• Intent: Clearly defined mission and objectives
– Reach target market – Deliver high-quality and appropriate financial services
– Respond to the needs of clients, their families, and communities
– Ensure responsibility of the MFI toward its employees, its clients, and the community it serves
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What is Social Performance?
Intent Operations
Results
• Operations: Actions and corrective measures– Align systems with mission
• Leadership• Institutional culture• Human resources• Training• Reward (financial and non-financial incentives)• Marketing• Service Delivery
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What is Social Performance?
Intent Operations Results
•Results: Measurable outcomes and benefits
– Reaching target clients – Meeting client needs– Creating benefits for clients– Social responsibility
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Why Is Social Performance Important?
• Achievement: to improve our programs to achieve the social goals we set out in our mission statements
• Accountability: to be more transparent
Furthermore, there are many practical benefits to
industry stakeholders
. .
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Why Is Social Performance Important?
To achieve our mission
– To maintain the social values in microfinance
– To deliver on the potential of microfinance to contribute to the Millennium Development Goals
Strong Financial Performance is not The end goal…rather it is a means to accomplish the social mission
Social Performance
Financial Performance
Mission
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Why Is Social Performance Important?Why Is Social Performance Important?
Accountability
MFIs have a responsibility to be transparent
about their social performance
– Who are our clients?
– What changes are taking place in their lives?
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Why Is Social Performance Important?
• Practical benefits to industry stakeholders
– Creates a more client-centered organization
– Demonstrates “blended returns” to donors and investors
– Permits social performance benchmarking
– Facilitates better financial performance
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What Does It Mean to Manage Performance?
Deliberately managing to achieve desired results
• Performance is not incidental
• What it explicitly defined and measured is what is managed
– Need to define desired performance– Need to measure against desired performance
Performance Management
Social Performance
Financial Performance
Mission
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How Can MFIs Manage Social Performance?
• Apply social lens to performance management– Translate mission into goals and objectives– Monitor and assess performance towards goals and objectives– Use information to improve practice
• Build on existing systems and processes– Appraisal, rewards, communication, training – Monitoring & assessment– Decision-making processes
MonitoringUse
Intent Design
Results
Social Performance Pathway
Assessment
Intent Operations
Results
Social Performance Pathway
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Next Steps
• Visit the Social Performance Resource Center
• Sign the Social Performance ‘Declaration of Principles’
• Give this presentation to Board of Directors and Senior Management
• Attend a social performance management training
• Commit to receiving a social audit and/or social rating
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Where To Go For Further Information?
• Social Performance Resource Centerhttp://microfinancegateway.com/resource_centers/socialperformance– Management training– Technical Assistance – Tools– Rating, audit and other forms of assessment
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Thank You!