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?