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
Pilot Roll out in Credit Union 1
Data Entry & Compilation
Session 1
Introductions and Overview on Social Performance
Management
Session 2
Social Performance Appraisal: Presentation & Practice of SPM
Tool
Session 3
Pilot Roll out in Credit Union 2
Social Performance Appraisal: Group work exercise on SPM tool
Session 4
Social Performance Appraisal: Presentation of group work,
feedback & pilot roll out plan
Presentation of Findings
.& 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 Drivers
Member 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 Information on satisfaction levels of
needs of the members…
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
Results Framework: Where do you start?
Intent &
Design
Internal
Systems/
Activities
Outputs
Outcomes
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?
OUTPUTS
Does the institution serve poor and very poor people?
Are the products designed to meet their needs?
OUTCOMES
Have members experienced social and economic improvements?
Impact
IMPACT
Can 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 world
Mission: 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….
EXERCISE
Fill In the Gaps
Mission
Component
Objective: what
exactly you want
to achieve?
Indicators: what
are you going to
measure to show
progress?
Mission Statement: To serve increasing numbers of poor people and female headed households thereby
helping to improve their livelihoods.
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
Institutionalising SPM
 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.
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 Tool
Objective: To be understand the SPM
appraisal tool
ILCUF SPM Assessment Questionnaire
Home
Questionnaire Dimensions
Instructions
-
Results: Scoring
Results: Graphics
Outreach & Inclusion
Member benefit & welfare
Governance
Responsibility to Staff & Volunteers
Community & Environment
Cooperation amongst Cooperatives
ILCUF SPM Assessment Questionnaire
Some 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 subheadings
Look through the SPM Appraisal Tool
Flick through each page of the SPM Appraisal Tool
-
The ‘Home’ page registers headline information
• Flick
throughpage
each
page of
the SPM
Appraisal
Toolthe tool
The
‘Instructions’
provides
details
on how
to administer
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 Questionnaire
How 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
Social Performance Management
SPA vs. SPM: two different things!
SPA
a 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
New
membership
recorded by
CU staff and
reported to
board
30% new
members are
female
Define desired
performance
Measure progress
toward desired
performance
Use performance
results to improve
products, services,
& systems
CuTRAC
training led to
more
inclusion of
women
Achieve Your Mission Through Performance
Management: Open Floor Questions & Clarifications
Mission
Social
Performance
Financial
Performance
Performance Management
Session 3: ILCUF SP Appraisal Questionnaire
Overview of SP Appraisal Tool
Objective: To be able to use the SP
appraisal tool
ILCUF SP Appraisal Questionnaire
Exercise: 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?