Social Performance
Management
Dr. Reem Ramadan
Putting the “Social” into Performance
• As social businesses, microfinance institutions
(MFIs) apply commercial means to achieve
social ends.
• Social goals include larger numbers of poor
and excluded people; improving the quality
and appropriateness of financial services;
creating benefits for clients; and improving
social responsibility of an MFI.
Financial Performance of MFIs
Loans outstanding, Profit margin, Operating
margin, OSS, FSS and PAR
About Numbers
Social Performance of MFIs
Social mission, poverty outreach, impact, client
satisfaction & loyalty, respect for staff and clients
and participation
About People
People + Numbers = Success
What is Social Performance?
Social performance is the effective translation
of an institution’s social mission into practice in
line with accepted social goals
Social Performance Management (SPM)
 The process of translating mission into
practice, including setting social objectives,
tracking Social Performance, and using
information to improve practice
1) demonstrate program impact
2) improve program services
Assessment with Action
Managing to Achieve Desired Results
• Performance is not incidental
Mission
• What is explicitly defined and
measured is what people excel at
– Need to define desired
performance
– Need to measure results against
desired performance
Social
Performance
Financial
Performance
Performance Management
6
Components of Social Performance
Management
• Developing social performance goals and
relevant strategy to achieve those goals.
• Monitoring and assessing organizational
performance towards achieving and attaining its
social goals.
• Institutionalizing and using social performance
information to develop organizational
performance.
Dimensions of Social Performance
Intent and
Design
Internal
Systems/
Activities
Outputs
Outcomes
Impacts
INTENT AND DESIGN
What is the mission of the institution?
Does it have clear social objectives?
INTERNAL SYSTEMS & ACTIVITIES
What activities will the institution undertake to achieve its social mission?
Are systems designed and in place to achieve those objectives?
OUTPUT
Does the institution serve poor and very poor people?
Are the products designed to meet their needs?
OUTCOME
Have clients experienced social and economic improvements?
IMPACT
Can these improvements be attributed to institutional activities?
Social Performance Management
“Effective translation of mission into practice”
Information system
Intent
Governance/
• Management/Strategy
Policies
• Systems Development
Goals/Objectives
& Use
• Product & Service range
• Human resources
Outputs
Outcomes
Changes
Outreach/
Services
Product & service
development &
delivery
Impact
Benefits of Social Performance
Better management (balance financial/social objectives,
base line info., performance tracking, early warning
systems)
More client-responsive (appropriate services, more
product choices, better customer service)
Improved outreach and services (portfolio segmentation,
understand client use, innovations, verify impact of
programmatic changes, track impacts on clients)
Improved financial performance (better client retention,
growth, lower operational costs)
Final Word…
MFIs that integrate a social lens into performance
management processes will benefit not only
from more loyal and satisfied clients,
but also an ability to demonstrate social
outcomes to external stakeholders, including
social investors.