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
Introductions & Expectations
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-
Introductions & Expectations
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)
MFI NetworksBenchmarking SP, standardized
reporting, MIS
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)
Operational Guide(Wiki Page)
Standards of UseGuidelines by indicator
Information sourcesOpportunity to comment
• Contact information
• Part 1: Profile, Social Strategy & Governance
• Part 2: SP Indicators (4 dimensions)
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!
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 QuestionnaireThe 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 TwoDimension 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
Questionnaire – Part TwoDimension 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
Questionnaire – Part TwoDimension 3: Benefits to Clients
Tracking 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
Questionnaire – Part TwoDimension 4: Social Responsibility
Salary scale, training, participation in decisions,
turn-over
Consumer protection
Respect of local culture, local development,
environmental protection
To employees
To clients
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
graphsEasy 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
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 servicesInnovative and non
financial servicesEconomic benefits
Client 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
Individual targetingMethodological
targeting
Range of financial services
Quality of servicesInnovative&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
Adaptation of services
Benefits for clients
Social responsibility
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%Geographic targeting
Individual targetingMethodological
targeting
Range of financial services
Quality of servicesInnovative&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
Adaptation of services
Benefits for clients
Social responsibility
Average of + Yes + SPI3 + Bolivia (12 MFIs)
Average of + CRECER 2008 SAEA (1 MFIs)
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
Individual 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 + 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%
Targeting / Outreach
Adaptation of services
Benefits for clients
Social responsibility
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%
Geographic targeting
Individual 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 + 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%
Targeting / Outreach
Adaptation of services
Benefits for clients
Social responsibility
Average of + Yes + SPI3 + Ecuador + NGO (2 MFIs)Average of + Yes + SPI3 + Ecuador + Credit Union (10 MFIs)
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
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 strategy2. Monitoring progress in meeting these
objectives3. 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
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 rates
Expand outreach to the very poor
Verify decision making processes to integrate SP data
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
SPI as a communication toolSPI 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 tool
A governance & management tool
A communication tool
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
Between MFI-investor, between investors-sharesholders, among
investors
For more information:
Website:www.cerise-microfinance.org
Email: [email protected]
Wiki:http://spiwikiv3point3.pbworks.com