1. SPM Essentials Module 1: The SPM Framework

2. Photos credit: Fonkoze, Haiti

3. The Definition of Social Performance The effective translation of an institution’s mission into practice.

4. What is a double bottom line institution? A double bottom line institution seeks not only financial sustainability, but also to achieve one or more social goals. All double bottom line institutions share a few broad purposes: Serve clients sustainably Increase financial inclusion Ensure the clients are not harmed Create benefits for clients, beginning with reducing client vulnerability Each institution will have its own unique social goals. Examples: Increasing clients’ assets and income Women’s empowerment HIV/AIDS prevention or care Reducing child labor

5. The Definition of “SPM” The management practices an institution uses to translate its mission into practice. These include: ▫Training / Promoting / Incentivizing ▫Data collection, analysis, and use  Setting targets related to social goals  Measuring the progress toward these targets  Using the results for strategic decision-making- namely, to improve products, services, and delivery channels. ▫Policies for treating clients responsibly ▫Board composition and orientation ▫Financial policies (e.g., profit allocation, setting interest rates) that balance social and financial performance

6. SP vs. SPM Social performance—whether or not you achieve your social goals. Social performance management—how you achieve your social goals.

7. Achieve Your Mission Through Performance Management Mission Performance Management Social Performance Financial Performance

8. Managing for Social Results Define desired performance Measure progress toward desired performance Use performance results to improve products, services, & systems

9. Results Reaching target clients Meeting target clients’ needs Change in target clients’ lives Results Reaching target clients Meeting target clients’ needs Change in target clients’ lives 9 Social Performance Pathway OperationsStrategy Information use

10. How the major initiatives fit together Responsible Finance (do no harm) Improve Clients’ Lives Different Actors Client Protection Social Performance Guidance: Imp-Act Consortium Standards: SPTF Universal Standards for SPM Reporting: The MIX SPS Report MFT Smart Campaign Invest in systems to manage double / triple bottom line Measure client outcomes Tailor services to client need and vulnerability + Institutional Commitment

11. Additional Slides

12. Additional Slides for Participant Use

13. Main Stakeholders Invested in SPM Financial service providers (MFIs) invest in SPM to: Inform management decisions Preempt problems (e.g. unethical staff behavior, client drop-out) Retain clients Attract investors/donors Avoid reputational risk

14. Main Stakeholders Invested in SPM Investors, MIVs, and Donors invest in SPM to: Ensure they invest in social institutions Get data, not stories Preempt problems & attract and retain clients Attract & report to their own investors Avoid reputational risk

15. Main Stakeholders Invested in SPM Microfinance Associations invest in SPM to: Offer the most appropriate and relevant information and training to member MFIs Offer assistance with SP reporting Offer technical assistance for SPM Assist members in developing tools and codes of conduct Ensure that the local industry keeps/develops a client focus

16. Intent & Design Internal Systems/ Activities Outputs Outcomes Dimensions of Social Performance Impact

17. Intent & Design Internal Systems/ Activities OutputsOutcomes Dimensions of Social Performance 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?

18. Assessing Social Performance Process Results Audit Tools: CERISE SPI Tool Quality Audit Tool MicroSave SPM Audit Intent & Design Internal Systems/ Activities OutputsOutcomes Rating Tools: M-CRIL MicroFinanza Rating MicroRate Planet Rating Client Data Tools: Progress Out of Poverty Index (PPI) Poverty Assessment Tool (PAT) Client measurement tools (e.g., satisfaction, dropout, food security, focus groups) Impact Econometric studies

19. Responsible Finance vs. Social Performance Regulators & Policymakers Investors & MIVs Networks, Associations, & Support Orgs Retail Providers (MFIs) Donors Do No HarmAct Ethically (Corporate Citizenship) Commit to Positive Change for Clients R ESPONSIBLE F INANCE S OCIAL P ERFORMANCE O VERLAP