Social Performance
Management (SPM)
Isabelle Kidney
Bless Darkey
CuTRAC
2013
Introductions
Name
Occupation/job
A note on the delivery
• Technical Language
• Misunderstanding
• Note any word or term I use, which you think needs a definition or
clarification
• ASK !
Mark Twain – “the only dumb (silly) question is the one
you don’t ask”
Thursday
Social Performance Assessment
Friday
Poverty Assessment Tools
Session 1
Session 1
Orientation and Social Performance Mgt. Overview
Poverty Assessment Tools
Session 2
Session 2
Social Performance Appraisal
Poverty Assessment Tools: Application
Session 3
Ends
Social Performance Appraisal
Session 4
Social Performance Appraisal: Application
Objective
Familiarise participants with the concept of Social Performance
Management and how to assess the status of SPM at Credit Union
level
Session 1: Overview of Social Performance
Session 2: Presentation and Practice of SP Assessment Tool
Session 3: Practice of SP Assessment Tool
Session 4: Feedback and Roll Out
West African Credit Unions Against Poverty Programme
• Capacity
Building
• Knowledge
Management
National
apex body
developed &
strengthene
d
Credit
Unions &
membership
Regional
Hub &
Steering
Group
Poor and
Extremely
poor
• Expansion
into Undermm served
mm areas
•
Social
Performance
Management
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
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 clients experienced social and economic improvements?
Impact
IMPACT
Can change in
client welfare
be attributed
to institutional
activities?
Mature SPM Example – AMK Cambodia
AMK Company Profile
•
Largest number of borrowers in Cambodia : > 300,000
•
Outreach to > 10,000 villages: > 70% of the villages in Cambodia
•
Absolute Commitment to Mission: 50% of new clients in 2011 were
below the Cambodia Rural Food Poverty Line
•
Leader in Social Performance Management and Responsible Finance
•
Finance at Your Doorstep Methodology: Loan disbursement and
collection at community level
•
Average Loan Size lowest of nationwide MFIs in Cambodia: USD 172;
94% of loans are for less than USD 300
•
Lowest interest rates in the group lending market
AMK Client Profile
•
50% are below Poverty Line
•
87% of clients are female
•
63% of clients are literate, and 81% attended some school
•
Average household has 5.2 persons including 3 income earners
•
Clients are predominantly rural, but 63% of clients’ main source of cash
inflow is non-farm activity; 35% is farm activity
•
Food is one of the top three expenditures for 96% of clients
•
83% of clients own land, but 76% of clients have no toilet facilities
•
33% of clients’ economic situation stayed the same in the previous 12
months; 55% improved, and 13% worsened
Key Stats
•
Population: 14.1 million
•
GNI per capita, Atlas method: USD 750
•
Poverty Level: 30%
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
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
Balance of financial and social performance
 Focus on social performance creates 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 reflect the expected
balance between financial and social performance
 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
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
ILCUF SPM Assessment Questionnaire
Overview
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 regional manager / WACUPP / CU
managers to board member, staff member and CU manager
- Takes a half day to complete and another half a day to ensure proper
reporting
- Under each heading there are a number of questions under a set of subheadings
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 CUA / Bless / board / AGM
- Conduct on an annual basis
ILCUF SPM Assessment Questionnaire
Exercise: Carry out the SP Assessment in Groups of 4
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…
ILCUF SPM Assessment Questionnaire
Open Floor Exercise
Outreach & Inclusion
ILCUF SPM Assessment Questionnaire
Feedback Sessions
Each group present back one section
(last group present back last two short sections)
Feedback & Clarifications on Each Section
From SP assessment to SP management
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
Mission
Social
Performance
Financial
Performance
Performance Management
ILCUF SPM Assessment Questionnaire
Plan for Rolling out SPM
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?