SPM Essentials Mod o u d le e 1: : T he e SP S M Fra r m a e m wo w rk r

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1 SPM Essentials Module 1: The SPM Framework

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4 The Definition of Social Performance The effective translation of an institution s mission into practice.

5 Common social goals: Serving increasing numbers of poorer and more excluded people sustainably Improving the quality & appropriateness of financial services through assessment of clients needs Increasing clients social capital, assets, income, and access to services Reducing clients vulnerability Improving social responsibility of the MFI toward clients, employees, and communities

6 The Definition of SPM The processes an institution uses to translate its mission into practice. These include: Setting social targets; Measuring the progress toward these targets; Using the results for strategic decision-makingnamely, to improve products, services, and delivery channels.

7 SP vs. SPM Social performance whether or not you achieve your social goals. Social performance management how you achieve your social goals.

8 Achieve Your Mission Through Performance Management Mission Financial Performance Social Performance Performance Management

9 Managing for Social Results Define desired performance Measure progress toward desired performance Use performance results to improve products, services, & systems

10 Social Performance Pathway Information use Strategy Operations Results Reaching target clients Meeting target clients needs Change in target clients lives 10

11 How the major initiatives fit together Social Performance Client Protection + Institutional Commitment Different Actor rs Smart Campaign MFT Invest in systems to manage double / triple bottom line Measure client outcomes Tailor services to client need and vulnerability Guidance: Imp-Act Consortium Standards: SPTF Universal Standards for SPM Reporting: The MIX SPS Report Responsible Finance (do no harm) Improve Clients Lives

12 Q & A

13 Save the Date for Module 2 Subject: Translating your mission into social targets Date/Time: February 15 th at 9:30am EST Don t miss it!

14 Main Stakeholders Invested in SPM Financial service providers (MFIs) invest in SPM to: Inform management decisions Preempt problems (e.g. unethical staff behavior, client drop-out) Retain clients Attract investors/donors Avoid reputational risk

15 Main Stakeholders Invested in SPM Investors, MIVs, and Donors invest in SPM to: Ensure they invest in social institutions Get data, not stories Preempt problems & attract and retain clients Attract & report to their own investors Avoid reputational risk

16 Main Stakeholders Invested in SPM Microfinance Associations invest in SPM to: Offer the most appropriate and relevant information and 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

17 Dimensions of Social Performance Intent & Design Internal Systems/ Activities Outputs Outcomes Impact INTENT AND DESIGN What is the mission of the institution? Does it have clear social objectives? INTERNAL SYSTEMS & ACTIVITIES What activities will the institution undertake to achieve its social mission? Are systems designed and in place to achieve those objectives? IMPACT Can change in client welfare be attributed to institutional activities? OUTPUTS Does the institution serve poor and very poor people? Are the products designed to meet their needs? OUTCOMES Have clients experienced social and economic improvements?

18 Dimensions of Social Performance Intent & Design Internal Systems/ Activities Outputs Outcomes Impact

19 Assessing Social Performance Intent & Design Internal Systems/ Activities Outputs Outcomes Impact Process Results Impact Audit Tools: CERISE SPI Tool Quality Audit Tool MicroSave SPM Audit Rating Tools: M-CRIL MicroFinanza Rating MicroRate Client Data Tools: Progress Out of Poverty Index (PPI) Poverty Assessment Tool (PAT) Econometric studies Global Reporting Initiative (GRI) Planet Rating Client measurement tools (e.g., satisfaction, dropout, food security, focus groups)

20 Responsible Finance vs. Social Performance Regulators& Policymakers RESPONSIBLE FINANCE Donors Investors& MIVs Networks, Associations, & Support Orgs Retail Providers (MFIs) Do No Harm OVERLAP Act Ethically (Corporate Citizenship) Commit to Positive Change for Clients SOCIAL PERFORMANC CE