Quality Audit Toolfor Managing Social Performance

The purpose of Quality Audit Tool

• Diagnosis of SPM quality• How effective are the internal processes in

reaching social objectives?status: what processes are (not) in place?effectiveness (do they serve their purpose?)

• What are the necessary actions to improve social performance?identifying necessary actionsprioritizing activities

MFC Quality Audit Tool 3

QAT Uses for MFI Manager

• Are you on track?• SPM system strengths• SPM system weakness• Prioritized improvement, • SPM institutionalization step by step• Staff buy-in and understanding of SPM• Progress monitoring• Preparation for social rating

QAT Benefits for Various Stakeholders

• MFI Managers:–Clear current picture of SPM systems quality–Good basis for effective improving–Allows improving before future social rating

• MFI staff–Better understanding of how their tasks fit into social goals and strategy

SP dimensions assessed by QAT

1. Intent and design2. Social Performance information system3. Management system

MFC Quality Audit Tool 5

SP dimensions assessed by QAT

1. Intent and designMission translationSocial goals and objectives (outreach, service, change)SR to clients, staff, communities, environment& gender aware policiesSystems for developing coherent strategy

2. Social Performance information system3. Management system

MFC Quality Audit Tool 6

SP dimensions assessed by QAT

1. Intent and design2. Social Performance information system3. Management system

MFC Quality Audit Tool 7

SP dimensions assessed by QAT

1. Intent and design2. Social Performance information system

Operations and marketing: mechanism for collecting clients feedbackMarketing, HR, Research, MIS, internal audit: data reliabilityMarketing, operations: data analysis and reporting

3. Management system

MFC Quality Audit Tool 8

SP dimensions assessed by QAT

1. Intent and design2. Social Performance information system3. Management system

MFC Quality Audit Tool 9

SP dimensions assessed by QAT

1. Intent and design2. Social Performance information system3. Management system

Management practice: data use, performance monitoringDecision making at strategic and operational levelGovernance, leadershipInternal communicationHR: Staff Incentive System; recruitment and trainingChange management capabilities

MFC Quality Audit Tool 10

MFC Quality Audit Tool 13

4 Steps in QAT

• ED• Senior management (Finance, Operations, HR, Marketing, )

• Board• Senior management• Internal auditor• MIS staff• Research staff• Regional level• Branch level• LO• Clients

• All

0,5 day 2 - 3 days1-2 days 0,5 day 1 day

Preparation

Gap analysis

Follow upinterviews

Audit panel

Final report

Analysis& draft report

1 day

Sta

ff p

art

icip

ati

ng

Total time: from 6 up to 8 days

MFIs Implementing QAT Worldwide

• ECA regionAgroInvest and MDF, SerbiaAregak, ArmeniaFinDev, AzerCredit and Viator, AzerbaijanHorizonti and Moznosti, MacedoniaPartner and Zene za Zene, Bosnia and Herzegovina

• EthiopiaBuusaa Gonofaa

• The PhilippinesASHI, CARD, People's Bank of Caraga

• MENA RegionTamweelcom and DEF, JordanARDI and AMOS, MoroccoAdan, YemenAmeen & Al Majmoua, LebanonABA & FMF, Egypt

MFC Quality Audit Tool 14