The document discusses microfinance and social performance management tools. It introduces the Grameen Foundation, which uses microfinance to alleviate poverty. It then discusses the Progress out of Poverty Index (PPI), a tool used to measure poverty levels of microfinance clients and understand how poverty changes over time. The PPI can help microfinance institutions adjust their products and services, ensure they reach their target populations, and improve poverty outcomes over time through strategic portfolio segmentation and targeting.

1. MaRS Social Entrepreneurship Summit 2008 Nigel Biggar Grameen Foundation [email_address] www.progressoutofpoverty.org

2. Today’s Discussion What is Microfinance? Grameen Foundation? Social Performance Management? The Progress Out of Poverty Index TM (PPI TM )? The PPI used for? Why Does This Matter?

3. Microfinance Is a Proven Poverty-Alleviation Tool

4. Grameen Foundation is a Leading Microfinance Network Grameen Foundation's mission is to enable the poor, especially the poorest , to create a world without poverty. Based in Washington, DC and Seattle, WA 56 partners in 25 countries Social Performance, Technology, Finance, Human Capital

5. We Must Manage Our Social Performance Endgame : MFIs more effective at poverty alleviation Social Performance Management Measure poverty levels of MFI clients Understand poverty change over time Adjust products and services to meet client needs Social Performance Management is the effective translation of social goals into practice

6. Progress out of Poverty Index TM The PPI is a simple poverty measurement tool 10 non-financial indicators Benchmarked to international poverty lines Estimates the likely poverty levels of households The PPI is based on an approach developed by Mark Schreiner of Microfinance Risk Management, L.L.C. CGAP, Grameen and Ford Foundation support the use of the PPI

7. PPI Fundamentals: Basic use India Client Response Weighted Numeric Value 8 0 Indicators 4 Points

8. PPI Fundamentals: PPI score 8 0 4 0 6 2 0 5 0 0 25 PPI Score

9. Poverty Likelihoods PPI score of 25 Poverty Likelihood

10. Use of PPI data Outreach Is MFI reaching its target population? Portfolio segmentation Different products for different clients Change over time Poverty movement

11. Targeting: poverty distribution for entering clients Original (2005) Target (2009) NWTF (Philippines)

12. Portfolio Segmentation

13. Targeting and segmentation: three products for three poverty groups

14. So What? Not Microfinance-Specific We measure what we value and value what we measure Key issues: Reaching our intended target group Relevance of products and services Change over time We will never be able to improve outcomes if we’re not strategic about our work

15. Nigel Biggar Grameen Foundation [email_address] www.progressoutofpoverty.org