1. AMFIU Association of Micro Finance Institutions of Uganda Slide No. 1/14 SPM Institutionalization and Integration – AMFIU’s Experience Presented by: David/Jackie At the SPTF annual Meeting in Jordan, June 4 th – 8 th 2012

2. AMFIU Association of Micro Finance Institutions of Uganda Presentation Outline 1.Introduction 2.AMFIU’s Strategy 3.Process of Integration: Step I – Strategy Review Step II -Institutional Self Assessment/social audit Step III – New Improved Plan Step IV – Develop Clear Social Indicators 4. Milestones Slide No. 2/14

3. AMFIU Association of Micro Finance Institutions of Uganda 1. Introduction SPM in Uganda is still in nascent stage Performance has long been associated with financial outcomes (portfolio quality and profitability) – PMT. But recently, stakeholders in MF are beginning to acknowledge that achieving social outcomes inherent in the missions of MFIs requires more deliberate strategies Slide No. 3/14

4. AMFIU Association of Micro Finance Institutions of Uganda 2. AMFIU’s Strategy towards SPM SPM Strategy Awareness Creation and promotion Institutionalization Capacity building &SPM reporting Financial literacy and client protection Slide No. 4/14

5. AMFIU Association of Micro Finance Institutions of Uganda 3. Process of Institutionalization and integration model Slide No. 5/14 Based on the MISION project model that considers social performance as an integral part of the institution’s performance management system. Therefore, SP must be integrated in all systems of the organization, right from strategic planning

6. AMFIU Association of Micro Finance Institutions of Uganda 3(a) Process- Strategy Step 1: Strategic review. i)Review strategic plan of the MFI in order to align its mission, goals and objectives with entire strategy. Mission statement must answer three broad question: -Who are your target clients? -How do you intend to meet their needs? -What change you want to see in your clients’ lives? Slide No. 6/14

7. AMFIU Association of Micro Finance Institutions of Uganda 3(b)Process - Mission [Cont’d] Example of Opportunity Bank: Mission: To be the leading provider of financial services to low income people in rural and urban areas of Uganda,promoting holistic transformation of lives whilst maintaining sustainability. ii). Review social goals in relation to the mission statement and the three broad questions (target clients, meeting clients’ needs and change in clients’ lives) Slide No. 7/14

8. AMFIU Association of Micro Finance Institutions of Uganda 3(c)Process- Goals Opportunity Bank’s Goals Slide No. 8/14 Reaching Target Clients To reach the largest number of low income people in all rural and urban areas of Uganda Meeting Client needs To provide high quality financial services that are responsive to client needs Creating a change within clients lives To enable low income people increase their incomes, create employment and work their way out of poverty

9. AMFIU Association of Micro Finance Institutions of Uganda 3(d)Process- Objectives iii). Define SMART Objectives Based on goals Slide No. 9/9 Social GoalsSocial Objectives To reach the largest number of low income people in all rural and urban areas of Uganda Provide financial services through ……access points half of which should be rural by the end 2014 Achieve ……..number of clients by the end 2014 ….% should be rural To provide high quality financial services that are responsive to client needs Increase the number of products tailored to the needs of our clients to…….by 2014. Improve service delivery and reduce customer complaints by ….% by 2014 To enable low income people increase their incomes, create employment and work their way out of poverty Provide our clients with ……financial education programmes Increase deposit accounts of low income people to …….accounts by 2014

10. AMFIU Association of Micro Finance Institutions of Uganda 3(e)Process –Self assessment Step 2: Institutional self assessment and social audit using the Baldrige tool. Assesses the MFI as a system in key performance areas of: 1.Leadership 2.Strategic planning 3.Customer focus 4.Workforce 5.Process management Slide No. 10/14

11. AMFIU Association of Micro Finance Institutions of Uganda 3 (f) Process – Improved Plan Step 3. Develop an Improvement Plan Come up with an improvement plan based on the gaps identified with timelines and responsible persons. Step 4. Clear Social Indicators Develop social indicators based on the objectives and audit and incorporate into the MIS Incorporate all revisions in the strategic plan Slide No. 11/14

12. AMFIU Association of Micro Finance Institutions of Uganda 4. Milestones so far Opportunity Bank has reviewed their strategic plan and incorporated the new mission, goals and objectives Raised resources to train all their staff in SPM (branch to branch) Have started the process of reviewing their MIS to integrate some of the agreed upon social indicators Slide No. 12/14

13. AMFIU Association of Micro Finance Institutions of Uganda Milestones [cont’d] Adopted the PPI to enable them systematically target the low income clients Their work plan for this year includes a client satisfaction and market survey Started reporting to the MIX Slide No. 13/14

14. AMFIU Association of Micro Finance Institutions of Uganda Slide No. 14/14 Thanks for Your Attention. Happy to answer any questions