social performance management (spm) insert organisation, presenter and date
TRANSCRIPT
Social Performance Management (SPM)
Insert organisation, presenter and date
Session 1: Introductions & Overview Of SPM
Objective: To introduce participants and the trainer to each other and to familiarise participants with the subject and
importance of SPM
Presenters Introduce themselves & Participants Provide their
Name
Occupation/job
A note on the delivery
•Technical Language may be confusing: alert presenters if a problem
•Misunderstanding: ask for clarification at any point•Note any word or term presenter uses which you think needs
a definition or clarification•ASK !
Mark Twain – “the only dumb (silly) question is the one you don’t ask”
Day 1 Day 2 Day 3
Social Performance Assessment Training Pilot in 2 Credit Unions Compilation & Feedback
Session 1Introductions and Overview on Social Performance Management
Pilot Roll out in Credit Union 1 Data Entry & Compilation
Session 2Social Performance Appraisal: Presentation & Practice of SPM Tool
Session 3Social Performance Appraisal: Group work exercise on SPM tool
Pilot Roll out in Credit Union 2
Presentation of Findings .& Roll Out plan
Session 4Social Performance Appraisal: Presentation of group work, feedback & pilot roll out plan
Open Floor Question
What do we mean by ‘social’ in relation to credit union financial services?
(what ‘good’ are we hoping to help bring about?)
Photos credit: Fonkoze, Haiti
Why talk about Social Performance?
What problems can financial service providers cause members / clients /
customers?
Big Problems?
What Went Wrong ?Commercial Mission Drift:
Fast growth (15-30% + p.a) High competition Market saturation Coercive collection practices Over-indebtedness …
Financial Mission Drift: High return on investment
expected Minimize costs, maximize profits Fast profitability Few products IPOs (stock market launch) …
Social Performance Cannot Be Taken for Granted
•Member dissatisfaction, distress (and exit)•Over-indebtedness or multiple loans•Lack of understanding of costs related to terms and
conditions•Complaints about staff•Limited benefit of financial services for the member•Unserved segments of the community•Unmet needs
Social Performance DriversMember Level Organisational Level
• Underserved people (women, youth, rural): Financial Inclusion
• Poorly managed remittances: Product and Service Development
• Need for linkage with non financial support: Product and Service Development
• Low usage of certain products: Client satisfaction
• Loan repayment problems: Client protection
• CUs focus is on financial performance: Double bottom line
• CU staff use coercive practices to get high repayment rates: Client protection
• CUs face difficulty in retain good staff: Staff satisfaction
• Fierce competition between providers: Client protection
If the CU wants to demonstrate…..
In order to … It must provide
FINANCIAL INCLUSION / OUTREACH
Verify whether membership matches targeting objectives…
Basic indicators on the number of poor and excluded people served
PRODUCTS AND SERVICES IMPROVEMENTS
Verify to what extent the CU fulfils the needs of the members…
Information on satisfaction levels of members with products and services
CLIENT PROTECTION Ensure that CUs are responsible to their members….
Information on compliance with client protection principles (transparency around pricing etc.)
SOCIAL RESPONSIBILITY TO STAFF, COMMUNITY & ENVIRONMENT
Ensure that CUs meet acceptable standards (e.g. human resource policies) and make special efforts to be socially responsible ….
Information on staff satisfaction, HR policies, work conditions and special CU initiatives regarding community and environment
CHANGES TO CLIENTS LIVES Illustrate accomplishment of mission …..
Information on changes to members livelihoods (next level up is impact assessment)
Required Systems for Most Common Social Performance Indicators
Common Social Performance Indicators
Systems
• Number of Female Members• Volume of activities (savings, loans)• Members by urban / rural category• Member Profiles• Satisfaction with products &
services• Preventing over-indebtedness• Level of over-indebtedness• Staff job satisfaction
• MIS• MIS• MIS• Poverty assessment tool• Client satisfaction survey• Interviews with managers• Member interviews • Staff survey
Intent & Design
Internal Systems/Activities
Outputs Outcomes
Results Framework: Where do you start?
INTENT AND DESIGNWhat is the mission of the institution?Does it have clear social objectives?
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 members experienced social and economic improvements?
Impact
IMPACTCan change in member welfare be
attributed to institutional activities?
The Definition of Social Performance
The effective translation of an institution’s mission into practice
Vision: your idea of a better worldMission: your idea of how to bring this about
Example of Putting a Mission into Practice
•The following is a mission statement of a microfinance institution in Cambodia:
To help large number of poor people improve their livelihood options through delivery of appropriate and viable microfinance services
•They looked to see how they could put this into practice by breaking it down….
Mission Statement: To serve increasing numbers of poor people and female headed households thereby helping to improve their livelihoods.
Mission Component
Objective: what exactly you want to achieve?
Indicators: what are you going to measure to show progress?
EXERCISEFill In the Gaps
Approach t Social Performance
Balancing financial and social performance
Focus on social performance can create business value – for example
• appropriate products (e.g. low loan ceilings, flexibility of repayment) … leads to higher repayment rates
• suitable delivery system serving clients in remote areas
• demand patterns reflecting member cash flows
• member retention
• Higher staff satisfaction higher member satisfaction
Social performance is management’s responsibility; performance appraisal of General Manager / CU Manager needs to reflect the expected balance between financial and social performance. Management reporting on SP should be to the board and to members at AGMs.
A Social Performance Committee at governance level advises management on strategic directions, social research, reporting, it provides recommendations to management and the Board.
Aligning systems to SPM – e.g. monitoring compliance of operations to SP principles is allocated to internal audit team; where possible social data are captured by MIS.
Institutionalising SPM
SPM Motto: Do Good & Do No Harm
•Maximise the appropriateness of the financial services
•Focus on lifting people out of poverty and contributing to economic development
•Act responsibly towards members, staff, volunteers & community
Session 2: ILCUF SPM Assessment Questionnaire
Overview of SPM Appraisal ToolObjective: To be understand the SPM
appraisal tool
ILCUF SPM Assessment Questionnaire
Home
Instructions
Results: Scoring
Results: Graphics
Questionnaire Dimensions
- Outreach & Inclusion - Member benefit & welfare- Governance - Responsibility to Staff &
Volunteers- Community & Environment - Cooperation amongst
Cooperatives
ILCUF SPM Assessment QuestionnaireSome notes on the Questionnaire:
- It is a refined, simplified composite of other tried and tested assessment tools
- It takes into account International Cooperative Principles- It sets highest standards in a very wide and deep range of SPM issues - It is a tool and needs to be incorporated into the Management
Information System for decision making purposes- Be aware of ‘lingo’ in this tool and ask for explanation
You are the pioneers!
ILCUF SPM Assessment Questionnaire
How it works
- Questionnaire administered by managers to board member, staff member and CU manager
- Takes between 1.5 – 3 hours to complete and the same amount to time to compile
- Under each heading there are a number of questions under a set of sub-headings
Look through the SPM Appraisal Tool
•Flick through each page of the SPM Appraisal Tool
Flick through each page of the SPM Appraisal Tool
- The ‘Home’ page registers headline information - The ‘Instructions’ page provides details on how to administer the tool- The ‘Outreach’ page looks at where and what segments of society the CU is reaching - The ‘Member Benefit and Welfare’ page asks about the suitability, transparency and
scope of services offered- The ‘Governance’ page covers issues such as representation & equity- The ‘Staff and Volunteers’ page examines responsibility to staff and volunteers in
terms of facilities, potential for development & addressing grievances - The ‘Community and Environment’ page looks at social responsibility &
environmental protection - The ‘Cooperation between Cooperatives’ page looks at aspects relating to
participation and cooperation - The ‘Score’ and ‘Graphic’ page aggregate results automatically and present results in
a visibly easy fashion
ILCUF SPM Assessment QuestionnaireHow it works
- For scoring purposes, each sub-heading is weighted as ‘critical’ (most important / essential), ‘high’ (important), or ‘medium’ (desirable, relevant)
- Team picks a statement that most closely matches their CU
- Automatic scoring on table and ‘web’ graphs
- Report back to board and member AGM
- Conduct on an annual basis
ILCUF SPM Assessment Questionnaire
Open Floor Exercise
Outreach & Inclusion
SPA vs. SPM: two different things!
Social Performance Management
SPAa measure of how well
an institution uses its systems and
operations to generate positive social benefits
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
Example from Mali (adapted from Cerise)
Managing for Social Results
Define desired performance
Measure progress toward desired performance
Use performance results to improve products, services,
& systems
30% new members are
female
New membership recorded by CU staff and reported to
board
CuTRAC training led to
more inclusion of
women
Achieve Your Mission Through Performance Management: Open Floor Questions & Clarifications
Mission
Performance Management
Social Performance
Financial Performance
Session 3: ILCUF SP Appraisal Questionnaire
Overview of SP Appraisal ToolObjective: To be able to use the SP
appraisal tool
ILCUF SP Appraisal QuestionnaireExercise: Carry out the SP Assessment in Groups of 4-6
1. Decide who is going to make the final presentation
2. Agree on the parameter of the exercise (pick one CU that all the group know or the average CU in the region etc.)
3. Rotate who is using the laptop, one section per person
4. The person who is using the laptop is asking the questions
5. Take one section and then sub-heading at a time, read out the related statements, and discuss and agree which statement most closely resembles the CU situation
6. Answer ‘Yes’ in the adjacent cell, insert justification & continue to the next question…
Session 4: Feedback and Roll Out
Objective: The objective is for participants to demonstrate that they can use the appraisal tool and to increase their
familiarity through discussion and clarifications.
Each group present backs to the wider group
Feedback & Clarifications are Provided on Each Section as Necessary
ILCUF SPM Assessment Questionnaire
Plan for Piloting the SPM
Who is going to which credit union?Logistics: Transport, lunch, contacts
Clarification: Explain how the sessions should go.
Recap Questions?
•Why can we not take social performance for granted?
•Where should the starting point be for social performance?
•Name three of the headings under the social performance assessment tool.
•Who is the driver of social performance in a credit union?