Social Performance Workshop Introduction

1. Social Performance WorkshopIntroduction Nairobi, Kenya October 19-21, 2009

2. Social Performance Task Force Membership • MFIs • Global, Regional & National Networks/Associations • Donors • Social Investors • NGO networks • Microfinance Raters • Action Research Programs/Universities

3. Objectives of Workshop Participants will understand: Social Performance Framework How the various Social Performance initiatives and tools are complementary in advancing transparency and improving practice What next steps they can take to implement SP in their own organizations

4. What is Social Performance? • The effective translation of an institution’s mission into practice in line with accepted social goals such as: • Serving increasing numbers of poorer and excluded people sustainably • Improving the quality and appropriateness of financial services available to target clients through systematic assessment of their specific needs • Creating benefits for clients of microfinance, their families and communities in terms of: increasing social capital, assets, income, and access to services; reducing vulnerability; and fulfilling basic needs • Improving the social responsibility of the MFI towards its clients, its employees and the community it serves

5. 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

6. Mission Social Performance Financial Performance Performance Management Deliberately Managing to Achieve Desired Results • Performance is not incidental • What is explicitly defined and • measured is what is managed • Need to define desired • performance • Need to measure results against • desired performance

7. Dimensions of Social Performance Impacts Intent and Design Internal Systems/ Activities Outputs Outcomes 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?OUTPUTDoes 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?

8. Tools for Assessing Social Performance Impacts Intent and Design Internal Systems/ Activities Outputs Outcomes [---------------- PROCESS-------------------------------- [------------------- RESULTS -----------------------------] SPI 3 Quality Audit Tool GRI FMO E&S Risk Audit Progress out of Poverty Index SEEP/AIMS tools MicroSave tools INAFI (Oxfam/Novib) M-CRIL MicroFinanza Rtg Planet Rating MicroRate

9. Social Performance Indicators Framework Impact Intent Internal systems/activities Outputs Outcomes [---------------------------- PROCESS---------------------------- - - -- ] [-------------------------------- RESULTS -----------------------------] Achievement of social goals Strategies & Systems Policies & Compliance Intent Q1–Mission & Social Goals Q2- Governance Q3–Range of Products and Services (financial & non-financial) Q4–Training of staff on social performance Q5–Staff performance appraisal and incentives Q6–Market research on clients Q7–Measuring client retention Q14–Poverty assessment Outreach Q11- Geographic outreach Q12- Women outreach Q13- Clients outreach by lending methodology Q8– Social responsibility to clients Q9-Cost of services to clients Q10–Social responsibility to staff Q15 – Social responsibility to the community Q16–Social responsibility to the environment Outputs and outcomes Q17-Products Q18–Employment (Family & Hired in credit supported ents.) Q19–Children in School (girls/boys) Q20–Poor and very poor clients Q21–Clients in poverty Q22–Clients out of poverty Indicators MFIs that want to update their profile on MIX Market with the social performance indicators are expected to be able to report information on the 13 indicators contained in Part I of the report (indicators highlighted in red)

10. Who We Are Today Transparency Social Performance Task Force Improving Practice Communication

11. In the workshop today…. • Practitioners: • MIX/SPTF Social Indicators • Coordinate with MF Transparency & Campaign for Client Protection • Social Investors: • MIV Disclosure Guidelines • Common Reporting Framework for Investors Reporting Transparency • Social Reporting Transparency Award: • MSDF, Ford, CGAP Social Perf Improving Practice Verifying • Social Rating • Social Rating products • Rating Initiative for co-funding Communication

12. In the workshop tomorrow… • Imp-Act Consortium and • Networks: • Training • Mentoring • Integrating SPM into mainstream TA • Developing best practices Social Performance Management Capacity Building Transparency • SP Assessment Tools: • MFC Quality Audit Tool • CERISE SPI • Use of PPI • Social Ratings Social Perf Tools Improving Practice Communication • Beyond Codes—pilot project in Kenya to improve client protection practices Other Initiatives

13. Where you can go for more information SPTF.info website Social Performance Resource Centers Microfinance Gateway Hot Topics Transparency SPM network & Imp-Act.org SPTF Improving Practice “User Reviews” on SPA Tools SPTF.info website Communication SPTF Annual Meetings Encourage coordination and dialogue among SP Initiatives and TF Members SPTF Working Groups