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Managing Social Performance: How to Improve Impact? Ewa Bankowska SPM Program Manager, MFC. Context. Increasingly commercial approach to microfinance Professionalization of the sector Focus on Social Performance: Has it been lost? Is it taken for granted? Is there “mission drift”?.
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Managing Social Performance: How to Improve Impact? Ewa Bankowska SPM Program Manager, MFC
Context • Increasingly commercial approach to microfinance • Professionalization of the sector • Focus on Social Performance: • Has it been lost? • Is it taken for granted? • Is there “mission drift”?
Are we impacting Clients? • change in microfinance is not automatic • focus on financial sustainability • Impact studies difficult and expensive Looking back – too late • Unintended results: Overindebtedness Assets deprival
Social Performance Pathway Information use Operations Strategy Reaching Target Clients Service Design & Delivery Change Goals Mission Objectives Systems Meeting Client Needs
Case study: Prizma (B&H) • Poverty focused MFI Context: post-conflict: female led households are the poorest Target group: women in urban and rural areas Poverty scorecard to assess poverty and the change Client feedback through exit monitoring Staff selection and education – orientation on mission Prizma's mission is to improve the well being of large numbers of poor women and their families by providing long-term access to quality financial services.
Benefits • Lower exit rates and higher client loyalty • Higher staff motivation and lower turnover • Innovation in products • Identification of new market segments • Good public image • Increased access to financial resources • Enabling regulatory environment
What is fundamental • Sound business practice • Clients and their needs in the centre • Information on clients used • Social lenses to all systems • Informed decision making
Quality Audit Tool • Entry point to managing social performance • Diagnoses strengths and weaknesses of internal systems • Helps building buy-in and understanding of SPM at all levels • Facilitates realistic action planning and step-by-step SPM improvement • 1+5 day diagnostic process • Qualitative interviews from Board to field staff and clients • Audit panel to discuss results and plan improvements
SPM in practice • Practical tools at www.mfc.org.pl/spm • Case studies at www.imp-act.org • Practitioner’s discussion at spmconsortium.ning.com