spm and operations - aski

8/9/2019 SPM and Operations - ASKI

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Mainstreaming

Social Performance in Operations

ASKI and Strategic PlanningJuly 30, 2010


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ASKIS VISION

A God-centered,model microfinance

organization

committed to servethe needy in Luzon

through socio-

economic andholistic

transformation.


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ASKI MISSION

Enhance the spiritual life of ourstakeholders through daily devotions.Retreats and Christian enrichmentactivities.

Ensure the economic security of our

clients by providing financial servicesand technical expertise.

Link with domestic and foreignpartners to realize communitydevelopment program and projects.

Develop the talents and skills of BOTs,managers and employees.

Safeguard resources, well-being andprestige of ASKI.


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MULTIPLE BOTTOMLINES

Social

Economic Environmental

Spiritual


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Financing

Insurance

Community development Services

Business Development and Support Services

Training

Scholarship


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FACTS AND FIGURES

AS OF JUNE 30, 2010

Outreach: 63,638

Portfolio: Php. 470,631,309

No. of branches covered: 32

No. of provinces covered: 10

No. of towns covered: 229 No. of Barangay covered: 3,465


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CURRENT SPM INITIATIVES

Conduct of PPI Survey

Product Assessments

Creation of Process Maps

Development of an environmental management system

Review of vision, mission and objectives

Review of monitoring and reporting tools to include SP

info Review of Staff Incentive System and PAR to include SP

indicators


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ASKI SPM Milestones

ASKI was established in 1987. Social mission of ASKI

is clear since its inception. The reason it is one of

the pioneers in community development

implementation or the beyond credit (credit ++) approach

to poverty alleviation which was formally launched in 2002.

2008

Review of Vision and Mission Statement

Piloting of Progress Out of Poverty Index (PPI)


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ASKI SPM Milestones

2009

Attendance to SPM Strategy workshop conducted

by MCPI

Development of SPM Plan

Revision of Strategic Business Plan and inclusion

of SPM as core strategy

Roll-out /Use of PPI to know poverty distribution

of ASKI outreach and progress of clients overtime.


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FORMALIZING SPMHow it started?

The importance of Institutional Buy-in


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ASKIs Journey towards institutional buy-in


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1. Get buy-in from the Board and Staff

SPM (Translating mission into practice) orientationwas given to Board and Senior Management Team

highlighting the importance of SPM to achieve

mission


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ASKI and Strategic Planning

Importance of an MFIs Mission After the SPM orientation, ASKI Board and Senior

Management realized the importance of reviewing

the mission to clarify 3 important elements of SPM:1) Who are the target clients

2) Services that will be given to address their needs

3) Impacts/Changes that we want to see in their lives


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ASKI and Strategic PlanningPart 1: Revisiting ASKIs Mission


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Why did ASKI revisit its mission?

1. To further define our target clients

ASKI uses the word NEEDY to name our target

clients but realized that needy is a broad word and

can be anybody.

ASKI try to specify who are our target clients theneedy in the SPM plan of ASKI.


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SOCIAL GOALSOutput of ASKI SPM Team

Reachingtarget

clients

Who will your MFI reach?

Needy

ECONOMIC people/families who are in need to start or

expand their businesses

*lack collaterals or need smaller loans.

*below the poverty line

*marginalized people (IPs, Fisher folks, landless farmers,

small farmers, upland farmers, rural artisans, Senior

Citizen, Out of school youth)

*salaried workers

SOCIAL and Spiritual people/families who:

* lacks opportunity for education and other social services

* lacks involvement in activities leading to spiritual growth

through local churches and communities


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2. To list down products and services that are

vital to actualize the impacts that ASKI isaiming


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Meeting

target-

client

needs

How will your MFI meet the needs of your clients and

beneficiaries?

Provision of financial and technical expertise

-i.e. Financial services (credit, life and health

insurance and savings), trainings, marketing

opportunities, networking and organizing

Provision ofChristian values-formation activities

and trainings

Provision ofscholarship for vocational and tertiary

education Provision offinancial aid to selected day care centers

Provision ofcommunity-development projects to

very poor communities


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3. To specify positive changes that ASKI

wanted to contribute in the lives of its target

clients.


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What positive changes will ASKI contribute in the lives

of target clients?

Change in

target

clients

lives

MICROFINANCE OPERATION Ensure economic security/ living sustainably

* Sustainable business operation

* business registered to appropriate government

agencies and able to pay taxes

* Employment generation

* having enough income to cover expenses or basic

needs: food, shelter, clothing, water andsanitation

having savings to support future needs

having insurance for security of family

Access to health services and education


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Change

in target

clients

lives

TRANSFORMATION AND COMMUNITY DEVELOPMENT

Socio-cultural

Health access to health services

Environment increase awareness and participation in

environmental advocacy

Training and education access to formal and non-formal training and education

Culture preservation and promotion strengthen worth

and dignity as IP

Spiritual transformation

Active participation in their respective churches and

ready to assume leadership


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Part 2:

Setting Social Objectives and Performance Targets


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1. Inclusion of SPM as core strategy in

accomplishing ASKIs mission.

2. Creation of SPM Committee to monitor and

review social performance

3. Designing of SPM reporting framework tomonitor performance (on going)

4. Annual analysis of social performance


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Part 3:

Creating a strategy to achieve social objectives


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Part 3:

Creating a strategy to achieve social objectives


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1. Buy-in from the Staff level

Inclusion of SPM session in the TrainingCurriculum of New Staff and Management

Trainees highlighting the importance of SPM

strategy to achieve mission;

Review of the Information Dissemination Scheme

and creation of a more clarified feedback loop to

ensure that SPM updates/results is well-communicated to implementers (Board, Senior

Management, Head Office and Branch Staff)


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2. Clarify SPM Plans and how it can be put

into actionTraining for implementers to ensure

understanding and appreciation of strategy and

tools that will be used;Ensure that strategy/implementation can be

integrated to the existing system and will not

be an additional workload.


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SPM Training Snapshots


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Create SPM Committee to monitor and review

implementation

Inclusion of SPM tools in the regular branch

processes for more systematic administration;

Inclusion of SPM updates in the meeting

agenda to monitor social performance.

3. Clarify accountabilities


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Challenges and Strategies to overcomeChallenges Strategies done to Overcome

Support of the Credit

Operations

Orientation-Workshop for managers to understand

and appreciate SPMKnow-how of

implementers in PPI

Training-workshop for rank and file

Inclusion of SPM Session in the Training Program of

Staff (Classroom and Field Exposure) and

Management Trainees

Collection, Monitoring

and Quality Control

Appointment of SPM Point Person (Corporate

Planning Head) responsible to lead SPM initiatives

Communicating SPM-

related processes

Review and refinement of existing policy

integrating SPM requirements.

Development of process maps for credit operations

and head office transactions for systematic

implementation.


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Challenges and Strategies to Overcome

Challenges Strategies to Overcome

Communicating

SPM results

Development of a simple PPI report for

Branches

Presentation of PPI report to branches to

increase understanding and reception.

Branch score sheet for Client Satisfaction

(being done annually- first report due in

August 2010)

Cost of

implementation

For PPI - Cost of implementation, plans and

directions presented to managementhighlighting that cost of full implementation

will be the same in doing Means Test

(previous poverty assessment tool being

used by ASKI)


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Challenges

Ensure standardised implementation of recently modified/ re-engineered processes.

SPM reporting requirements of different networks and funding

agencies.

Expectation of networks and funding agencies to reflect SPchanges done on the financial performance of MFIs. (will be

difficult if will be based on trends because of the increasing

competition in the MF industry that affects financial

performance of MFIs)Absence of peer data (Philippines) to compare ASKI results

(PPI and SPM)

Standardization of SPM indicators among MCPI partners to

allow comparative analysis


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Way Forward -ASKI

Use of SPM results for decision-making.

Review of SBP to align changes made on some policies and

processes.


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Thank you!!!

spm and operations - aski

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