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AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1
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AMERMS Course 1: Learning to Cost-Effectively Assess and Manage Social Performance - PPT 1

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Learning to Cost-Effectively Assess and Manage Social Performance
ROOM: Impala/Lake Turkana
FACILITATED BY: Freedom from Hunger
Mr. Christian Loupeda (USA)

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  • 1. Learning to Cost-Effectively Asses and Manage Social Performance Day-Long Course Africa-Middle East Regional Microcredit Summit Kenyatta International Conference Center Nairobi - Kenya April 2010
  • 2. OVERVIEW •Rationale, Background and Concepts •Managing and Assessing Social Performance •Some Resources
  • 3. Rationale, Background Concepts
  • 4. Double bottom line attraction What does this mean?
  • 5. Double bottom line attraction Microfinance has economic logic + social/ethical basis
  • 6. Double bottom line attraction Microfinance has economic logic + social/ethical basis • A social enterprise • Financial and social MISSION returns • Financial – a means social to a social end; has social value financial
  • 7. Double bottom line attraction Microfinance has economic logic + social/ethical basis • Growing ‘professionalisation’ in MISSION past 15 years social • Transformation from NGOs into commercial entities • Focus on the financial financial • What about the social?
  • 8. Social value/social returns in microfinance? Do we see it clearly ?
  • 9. Social concerns Lack of clarity (mission, social responsibility) Mission drift Reputation risk
  • 10. 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?
  • 11. 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,
  • 12. 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;
  • 13. Therefore …. Social Performance • New focus in microfinance • Restore the balance MISSION • To support transparency and effectiveness social • Define what we are aiming for • Ensure that we are doing financial what we say we are
  • 14. Growing interest in social performance Global 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
  • 15. First task for the Social Performance Task Force • To agree a definition for Social Performance
  • 16. What is Social Performance? The effective translation of an institution’s mission into practice in line with accepted social values Mission Values
  • 17. Social Performance Pathway • About process and results – the steps to achieve impact: MISSION Intent Operations Results IMPACT
  • 18. Dimensions PROCESS: INTENT AND DESIGN What are the mission and values of the MFI? of Social Does it have clear social objectives? Performance PROCESS: INTERNAL SYSTEMS & OPERATIONS Are systems designed and in place to achieve those objectives? RESULT: OUTPUTS Does the MFI serve target clients? poor and excluded people? Do the services meet their needs? RESULT: OUTCOMES Have clients experienced social and economic improvements? RESULT: IMPACTS Can these improvements be attributed to institutional activities?
  • 19. Social Performance vs Impact Assessment Social Performance Impact • Intent, systems …and • The end result(s) results • Change attributed to the • Focus: Improving systems intervention: Focus on to achieve social goals proving impact • On-going – integration into • Costly, complex, post facto management research exercise • MIS, range of information methods – practical, cost- • Results are often disputed effective on account of attribution, self-selection etc
  • 20. Managing and Assessing Social Performance
  • 21. FOUR MINI CASE STUDIES These are real life examples Each group discuss one example: 1. Clarify concepts/terminology 2. What problems do you see? 3. Share any similar experience 4. 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
  • 22. FOUR MINI CASE STUDIES Key lessons learned: • Information • Clarity • Adjusting systems • Integrating into management • Everything contributes – organisational culture
  • 23. Dimensions PROCESS: INTENT AND DESIGN What are the mission and values of the MFI? of Social Does it have clear social objectives? Performance PROCESS: INTERNAL SYSTEMS & OPERATIONS Are systems designed and in place to achieve those objectives? RESULT: OUTPUTS Does the MFI serve target clients? poor and excluded people? Do the services meet their needs? RESULT: OUTCOMES Have clients experienced social and economic improvements? RESULT: IMPACTS Can these improvements be attributed to institutional activities?
  • 24. 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!
  • 25. Social Performance Management The process of translating mission into practice, including setting social objectives, tracking Social Performance, and using information to improve practice
  • 26. Social Performance Management
  • 27. 2.3a Social Performance Management Components 1. Developing social goals and objectives 2. Monitoring and assessing performance 3. Improving operations
  • 28. 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?
  • 29. 3.1f People’s Bank Case Study: Social Goals and Objectives Social Goals Social Objectives Reaching target clients: • In each of the next 3 years, deepen outreach of Poor women and their services to poor households, reaching at least families 50% “poor” and 10% “very poor” among new clients Meeting target- client • Reduce client exit rate by 20% in the next 3 needs: years Providing quality • Increase client satisfaction by 15% in the next 3 financial services years Change in target • In each of the next 3 years, reduce poverty level clients‟ lives: of clients and their families by moving at least Improving their well- 50% of clients up one level of the poverty scale being
  • 30. 2.3a Social Performance Management Components 1. Developing social goals and objectives 2. Monitoring and assessing performance 3. Improving operations
  • 31. 4.1a 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
  • 32. 4.2a 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
  • 33. 2.3a Social Performance Management Components 1. Developing social goals and objectives 2. Monitoring and assessing performance 3. Improving operations
  • 34. 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
  • 35. 6.3a 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
  • 36. 2.2c Social Performance Pathway: Strategy and Operations • Goals • System use • Objectives • Service delivery • Range of products • Human resources and services
  • 37. 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?
  • 38. 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
  • 39. 6.2c Costs and Resource Requirements for Social Performance Management • 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
  • 40. Tools and Strategies for Social Performance, include:
  • 41. …And…
  • 42. 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) ?
  • 43. Some Resources
  • 44. 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
  • 45. 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
  • 46. CGAP www.cgap.org/portal/ • Focus Note #41 May 2007 Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions
  • 47. The MiX http://www.themix.org/standards/social-performance
  • 48. Social Performance Task Force http://www.sptf.info/
  • 49. Social Responsibility Bringing 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
  • 50. 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.
  • 51. www.microfinancegateway.org Library Hot topic Fundamentals Overview Glossary Web Resource Guide FAQs Tools 4
  • 52. What Do We Do Next? • Let‟s take few minutes to reflect on what to do next…
  • 53. Thank You! Please do be in touch cloupeda@freedomfromhunger.org

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