Quality Audit Tool for Managing Social Performance

The purpose of Quality Audit Tool Diagnosis of SPM quality How effective are the internal processes in reaching social objectives? status: what processes are (not) in place? effectiveness (do they serve their purpose?) What are the necessary actions to improve social performance? identifying necessary actions prioritizing activities

MFC Quality Audit Tool 3 QAT Uses for MFI Manager Are you on track? SPM system strengths SPM system weakness Prioritized improvement, SPM institutionalization step by step Staff buy-in and understanding of SPM Progress monitoring Preparation for social rating

QAT Benefits for Various Stakeholders MFI Managers: –Clear current picture of SPM systems quality –Good basis for effective improving –Allows improving before future social rating MFI staff –Better understanding of how their tasks fit into social goals and strategy

SP dimensions assessed by QAT 1.Intent and design 2.Social Performance information system 3.Management system MFC Quality Audit Tool 5

SP dimensions assessed by QAT 1.Intent and design Mission translation Social goals and objectives (outreach, service, change) SR to clients, staff, communities, environment & gender aware policies Systems for developing coherent strategy 2.Social Performance information system 3.Management system MFC Quality Audit Tool 6

SP dimensions assessed by QAT 1.Intent and design 2.Social Performance information system 3.Management system MFC Quality Audit Tool 7

SP dimensions assessed by QAT 1.Intent and design 2.Social Performance information system Operations and marketing: mechanism for collecting clients feedback Marketing, HR, Research, MIS, internal audit: data reliability Marketing, operations: data analysis and reporting 3.Management system MFC Quality Audit Tool 8

SP dimensions assessed by QAT 1.Intent and design 2.Social Performance information system 3.Management system MFC Quality Audit Tool 9

SP dimensions assessed by QAT 1.Intent and design 2.Social Performance information system 3.Management system Management practice: data use, performance monitoring Decision making at strategic and operational level Governance, leadership Internal communication HR: Staff Incentive System; recruitment and training Change management capabilities MFC Quality Audit Tool 10

SP dimensions assessed by QAT MFC Quality Audit Tool 11 Intent and Design Internal systems/ activities Outputs Impact Outcomes Mission translation SMART objectives Social Responsability Strategy Collecting clients feedback IS appropriateness & reliability Info analysis and reporting Management practice: data use, performance monitoring strategic & operational decision making Governance, leadership Internal communication HR: Staff Incentive System; recruitment and training Change management capabilities

MFC Quality Audit Tool 12 SP Dimensions Assessed by QAT DimSub-dimensionContent 1.1. Setting SP objectives Mission translation Social goals and objectives (outreach, service, change) SR to clients, staff, communities, environment gender aware policies 1.2. Strategy for achieving SP objectives Systems for developing coherent strategy 2.1. Systems for monitoring and understanding performance Operations and marketing: mechanism for collecting clients feedback 2.2. Information system quality and appropriateness Marketing, HR, Research, MIS, internal audit: data reliability 2.3. Information analysis and communication Marketing, operations: data analysis and reporting 3.1. Information use Management practice: data use, performance monitoring 3.2. Decision making Decision making at strategic and operational level 3.3. Organizational culture Governance, leadership Internal communication 3.4. Alignment of organizational systems HR: Staff Incentive System; recruitment and training Change management capabilities Management systems SP information system Intent and design

MFC Quality Audit Tool 13 4 Steps in QAT ED Senior management (Finance, Operations, HR, Marketing, ) Board Senior management Internal auditor MIS staff Research staff Regional level Branch level LO Clients All 0,5 day days1-2 days0,5 day1 day Prepar ation Gap analysis Follow up interviews Audit panel Final repor t Analysis & draft report 1 day Staff participating Total time: from 6 up to 8 days

MFIs Implementing QAT Worldwide ECA region AgroInvest and MDF, Serbia Aregak, Armenia FinDev, AzerCredit and Viator, Azerbaijan Horizonti and Moznosti, Macedonia Partner and Zene za Zene, Bosnia and Herzegovina Ethiopia Buusaa Gonofaa The Philippines ASHI, CARD, People's Bank of Caraga MENA Region Tamweelcom and DEF, Jordan ARDI and AMOS, Morocco Adan, Yemen Ameen & Al Majmoua, Lebanon ABA & FMF, Egypt MFC Quality Audit Tool 14