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SPM Essentials
Module 1: The SPM FrameworkModule 1: The SPM Framework
The Definition of Social Performance
•The effective translation of an institution’s mission into practice.institution’s mission into practice.
Common social goals:
• Serving increasing numbers of poorer and more excluded people sustainably
• Increasing clients’ social capital, assets, income, and access to services
• Reducing clients’ • Improving the quality &
appropriateness of financial services through assessment of clients’ needs
• Reducing clients’ vulnerability
• Improving social responsibility of the MFI toward clients, employees, and communities
The Definition of “SPM”
• The processes an institution uses to translate its mission into practice. These include:
▫ Setting social targets;▫ Setting social targets;
▫ Measuring the progress toward these targets;
▫ Using the results for strategic decision-making-namely, to improve products, services, and delivery channels.
SP vs. SPM
• Social performance—whether or not you achieve your social goals.
• Social performance management—how you achieve your social goals.
Achieve Your Mission Through
Performance Management
Mission
Social
Performance Management
Social Performance
Financial Performance
Managing for Social
Results
Measure
Use performance
results to improve
products,
Define desired performance
Measure progress
toward desired performance
products, services, &
systems
Results
• Reaching target clients
Results
• Reaching target clients
Social Performance Pathway
Information use
clients
• Meeting target clients’ needs
• Change in target clients’ lives
clients
• Meeting target clients’ needs
• Change in target clients’ lives
10
OperationsStrategy
How the major initiatives fit togetherD
iffe
ren
t A
cto
rs
Client Protection
Social Performance
Smart Campaign • Invest in systems to
+ Institutional Commitment
Responsible Finance(do no harm)
Improve Clients’ Lives
Dif
feren
t A
cto
rs
Guidance: Imp-Act ConsortiumStandards: SPTF Universal Standards
for SPMReporting: The MIX SPS Report
MFT
Smart Campaign • Invest in systems to manage double / triple bottom line
•Measure client outcomes
• Tailor services to client need and vulnerability
Q & A
Save the Date for Module 2
Subject: Translating your mission into
social targets
Date/Time: February 15th at 9:30am Date/Time: February 15th at 9:30am
EST
Don’t miss it!
Main Stakeholders Invested in SPM
� Financial service providers (MFIs) invest in SPM to:
� Inform management decisions� Inform management decisions
� Preempt problems (e.g. unethical staff behavior, client drop-out)
� Retain clients
� Attract investors/donors
� Avoid reputational risk
Main Stakeholders Invested in SPM
• Investors, MIVs, and Donors invest in SPM to:
• Ensure they invest in social institutions
• Get data, not stories• Get data, not stories
� Preempt problems & attract and retain clients
� Attract & report to their own investors
� Avoid reputational risk
Main Stakeholders Invested in SPM
� Microfinance Associations invest in SPM to:
� Offer the most appropriate and relevant information and training to member MFIsand training to member MFIs
� Offer assistance with SP reporting
� Offer technical assistance for SPM
� Assist members in developing tools and codes of conduct
� Ensure that the local industry keeps/develops a client focus
Intent & Design
Internal Systems/Activities
Outputs Outcomes
Dimensions of Social Performance
INTENT AND DESIGNWhat is the mission of the institution?
Does it have clear social objectives?
Impact
IMPACTCan change in client welfare
INTERNAL SYSTEMS & ACTIVITIESWhat activities will the institution undertake to achieve its social mission?
Are systems designed and in place to achieve those objectives?
OUTPUTSDoes the institution serve poor and very poor people?
Are the products designed to meet their needs?
OUTCOMESHave clients experienced social and economic improvements?
client welfare be attributed
to institutional activities?
Intent & Design
Internal Systems/Activities
Outputs
Dimensions of Social Performance
Outputs
Outcomes
Impact
Assessing Social Performance
Process Results
Audit Tools:
Intent & Design
Internal Systems/Activities
Outputs Outcomes
Rating Tools: Client Data Tools:
Impact
Impact
EconometricAudit Tools:
CERISE SPI Tool
Quality Audit Tool
MicroSave SPM Audit
Global Reporting Initiative (GRI)
Rating Tools:
M-CRIL
MicroFinanza Rating
MicroRate
Planet Rating
Client Data Tools:
Progress Out of Poverty Index (PPI)
Poverty Assessment Tool (PAT)
Client measurement tools (e.g., satisfaction, dropout, food security,
focus groups)
Econometricstudies
Responsible Finance vs. Social Performance
Regulators &
Policymakers
Donors
RESPONSIBLE FINANCE
ER
FO
RM
AN
CE
Investors &
MIVs
Networks,
Associations, &
Support Orgs
Retail
Providers
(MFIs)Do No Harm Act Ethically
(Corporate
Citizenship)
Commit to
Positive Change
for Clients
SO
CIA
LP
ER
FO
RM
AN
CE
OVERLAP