An Introduction to Social Performance Making Microfinance Matter for Clients and Their Families: Ensuring a Social Performance Bottom Line in the Industry

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An Introduction to Social PerformanceMaking
Microfinance Matter for Clients and Their
Families Ensuring a Social Performance Bottom
Line in the Industry
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What is Social Performance?

• The effective translation of an institutions
  mission into practice in line with accepted
  social values that relate to
• reaching poorer and excluded clients
• improving the lives of clients and their
  families
• widening the range of opportunities for
  communities.

Social Performance Pathway
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What is Social Performance?

• Intent Clearly defined mission and objectives
• Reach target market
• Deliver high-quality and appropriate financial
  services
• Respond to the needs of clients, their families,
  and communities
• Ensure responsibility of the MFI toward its
  employees, its clients, and the community it
  serves

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What is Social Performance?

• Operations Actions and corrective measures
• Align systems with mission
• Leadership
• Institutional culture
• Human resources
• Training
• Reward (financial and non-financial incentives)
• Marketing
• Service Delivery

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What is Social Performance?

• Results Measurable outcomes and benefits
• Reaching target clients
• Meeting client needs
• Creating benefits for clients
• Social responsibility

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Why Is Social Performance Important?
.

• Achievement to improve our programs to achieve
  the social goals we set out in our mission
  statements
• Accountability to be more transparent
• Furthermore, there are many practical benefits to
• industry stakeholders

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Why Is Social Performance Important?

• To achieve our mission
• To maintain the social values in microfinance
• To deliver on the potential of microfinance to
  contribute to the Millennium Development Goals
• Strong Financial Performance is not
• The end goalrather it is a means
• to accomplish the social mission

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Why Is Social Performance Important?

• Accountability
• MFIs have a responsibility to be transparent
• about their social performance
• Who are our clients?
• What changes are taking place in their lives?

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Why Is Social Performance Important?

• Practical benefits to industry stakeholders
• Creates a more client-centered organization
• Demonstrates blended returns to donors and
  investors
• Permits social performance benchmarking
• Facilitates better financial performance

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What Does It Mean to Manage Performance?

• Deliberately managing to achieve desired results
• Performance is not incidental
• What it explicitly defined and
• measured is what is managed
• Need to define desired
• performance
• Need to measure against
• desired performance

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How Can MFIs Manage Social Performance?

• Apply social lens to performance management
• Translate mission into goals and objectives
• Monitor and assess performance towards goals and
  objectives
• Use information to improve practice
• Build on existing systems and processes
• Appraisal, rewards, communication, training
• Monitoring assessment
• Decision-making processes

Social Performance Pathway
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Next Steps

• Visit the Social Performance Resource Center
• Sign the Social Performance Declaration of
  Principles
• Give this presentation to Board of Directors and
  Senior Management
• Attend a social performance management training
• Commit to receiving a social audit and/or social
  rating

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Where To Go For Further Information?

• Social Performance Resource Center
• http//microfinancegateway.com/resource_centers/so
  cialperformance
• Management training
• Technical Assistance
• Tools
• Rating, audit and other forms of assessment

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• Thank You!