1. Social Performance Management (SPM) Insert organisation, presenter and date

2. Session 1: Introductions & Overview Of SPM Objective: To introduce participants and the trainer to each other and to familiarise participants with the subject and importance of SPM Presenters Introduce themselves & Participants Provide their Name Occupation/job

3. A note on the delivery Technical Language may be confusing: alert presenters if a problem Misunderstanding: ask for clarification at any point Note any word or term presenter uses which you think needs a definition or clarification ASK ! Mark Twain – “the only dumb (silly) question is the one you don’t ask”

4. Day 1Day 2 Day 3 Social Performance Assessment TrainingPilot in 2 Credit Unions Compilation & Feedback Session 1 Introductions and Overview on Social Performance Management Pilot Roll out in Credit Union 1 Data Entry & Compilation Session 2 Social Performance Appraisal: Presentation & Practice of SPM Tool Session 3 Social Performance Appraisal: Group work exercise on SPM tool Pilot Roll out in Credit Union 2 Presentation of Findings.& Roll Out plan Session 4 Social Performance Appraisal: Presentation of group work, feedback & pilot roll out plan

5. Open Floor Question What do we mean by ‘social’ in relation to credit union financial services? (what ‘good’ are we hoping to help bring about?)

6. Photos credit: Fonkoze, Haiti

7. Why talk about Social Performance? What problems can financial service providers cause members / clients / customers?

8. Big Problems?

9. What Went Wrong ?  Commercial Mission Drift:  Fast growth (15-30% + p.a)  High competition  Market saturation  Coercive collection practices  Over-indebtedness …  Financial Mission Drift:  High return on investment expected  Minimize costs, maximize profits  Fast profitability  Few products  IPOs (stock market launch) …

10. Social Performance Cannot Be Taken for Granted Member dissatisfaction, distress (and exit) Over-indebtedness or multiple loans Lack of understanding of costs related to terms and conditions Complaints about staff Limited benefit of financial services for the member Unserved segments of the community Unmet needs

11. Social Performance Drivers Member LevelOrganisational Level Underserved people (women, youth, rural): Financial Inclusion Poorly managed remittances: Product and Service Development Need for linkage with non financial support: Product and Service Development Low usage of certain products: Client satisfaction Loan repayment problems: Client protection CUs focus is on financial performance: Double bottom line CU staff use coercive practices to get high repayment rates: Client protection CUs face difficulty in retain good staff: Staff satisfaction Fierce competition between providers: Client protection

12. If the CU wants to demonstrate….. In order to …It must provide FINANCIAL INCLUSION / OUTREACH Verify whether membership matches targeting objectives… Basic indicators on the number of poor and excluded people served PRODUCTS AND SERVICES IMPROVEMENTS Verify to what extent the CU fulfils the needs of the members… Information on satisfaction levels of members with products and services CLIENT PROTECTIONEnsure that CUs are responsible to their members…. Information on compliance with client protection principles (transparency around pricing etc.) SOCIAL RESPONSIBILITY TO STAFF, COMMUNITY & ENVIRONMENT Ensure that CUs meet acceptable standards (e.g. human resource policies) and make special efforts to be socially responsible …. Information on staff satisfaction, HR policies, work conditions and special CU initiatives regarding community and environment CHANGES TO CLIENTS LIVESIllustrate accomplishment of mission ….. Information on changes to members livelihoods (next level up is impact assessment)

13. Required Systems for Most Common Social Performance Indicators Common Social Performance IndicatorsSystems Number of Female Members Volume of activities (savings, loans) Members by urban / rural category Member Profiles Satisfaction with products & services Preventing over-indebtedness Level of over-indebtedness Staff job satisfaction MIS Poverty assessment tool Client satisfaction survey Interviews with managers Member interviews Staff survey

14. Intent & Design Internal Systems/ Activities OutputsOutcomes Results Framework: Where do you start? 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 members experienced social and economic improvements? Impact IMPACT Can change in member welfare be attributed to institutional activities?

15. The Definition of Social Performance The effective translation of an institution’s mission into practice Vision: your idea of a better world Mission: your idea of how to bring this about

16. Example of Putting a Mission into Practice The following is a mission statement of a microfinance institution in Cambodia: To help large number of poor people improve their livelihood options through delivery of appropriate and viable microfinance services They looked to see how they could put this into practice by breaking it down….

18. Mission Statement: To serve increasing numbers of poor people and female headed households thereby helping to improve their livelihoods. Mission Component Objective: what exactly you want to achieve? Indicators: what are you going to measure to show progress? EXERCISE Fill In the Gaps

19. Approach t Social Performance Balancing financial and social performance  Focus on social performance can create business value – for example appropriate products (e.g. low loan ceilings, flexibility of repayment) … leads to higher repayment rates suitable delivery system serving clients in remote areas demand patterns reflecting member cash flows member retention Higher staff satisfaction  higher member satisfaction

20.  Social performance is management’s responsibility; performance appraisal of General Manager / CU Manager needs to reflect the expected balance between financial and social performance. Management reporting on SP should be to the board and to members at AGMs.  A Social Performance Committee at governance level advises management on strategic directions, social research, reporting, it provides recommendations to management and the Board.  Aligning systems to SPM – e.g. monitoring compliance of operations to SP principles is allocated to internal audit team; where possible social data are captured by MIS. Institutionalising SPM

21. SPM Motto: Do Good & Do No Harm Maximise the appropriateness of the financial services Focus on lifting people out of poverty and contributing to economic development Act responsibly towards members, staff, volunteers & community

22. Session 2: ILCUF SPM Assessment Questionnaire Overview of SPM Appraisal Tool Objective: To be understand the SPM appraisal tool

23. ILCUF SPM Assessment Questionnaire Home Instructions Results: Scoring Results: Graphics Home Instructions Results: Scoring Results: Graphics Questionnaire Dimensions - Outreach & Inclusion - Member benefit & welfare - Governance -Responsibility to Staff & Volunteers -Community & Environment -Cooperation amongst Cooperatives Questionnaire Dimensions - Outreach & Inclusion - Member benefit & welfare - Governance -Responsibility to Staff & Volunteers -Community & Environment -Cooperation amongst Cooperatives

24. ILCUF SPM Assessment Questionnaire Some notes on the Questionnaire: -It is a refined, simplified composite of other tried and tested assessment tools -It takes into account International Cooperative Principles -It sets highest standards in a very wide and deep range of SPM issues -It is a tool and needs to be incorporated into the Management Information System for decision making purposes -Be aware of ‘lingo’ in this tool and ask for explanation You are the pioneers!

25. ILCUF SPM Assessment Questionnaire How it works -Questionnaire administered by managers to board member, staff member and CU manager -Takes between 1.5 – 3 hours to complete and the same amount to time to compile -Under each heading there are a number of questions under a set of sub- headings

26. Look through the SPM Appraisal Tool Flick through each page of the SPM Appraisal Tool -The ‘Home’ page registers headline information -The ‘Instructions’ page provides details on how to administer the tool -The ‘Outreach’ page looks at where and what segments of society the CU is reaching -The ‘Member Benefit and Welfare’ page asks about the suitability, transparency and scope of services offered -The ‘Governance’ page covers issues such as representation & equity -The ‘Staff and Volunteers’ page examines responsibility to staff and volunteers in terms of facilities, potential for development & addressing grievances -The ‘Community and Environment’ page looks at social responsibility & environmental protection -The ‘Cooperation between Cooperatives’ page looks at aspects relating to participation and cooperation -The ‘Score’ and ‘Graphic’ page aggregate results automatically and present results in a visibly easy fashion

27. ILCUF SPM Assessment Questionnaire How it works -For scoring purposes, each sub-heading is weighted as ‘critical’ (most important / essential), ‘high’ (important), or ‘medium’ (desirable, relevant) -Team picks a statement that most closely matches their CU -Automatic scoring on table and ‘web’ graphs -Report back to board and member AGM -Conduct on an annual basis

28. ILCUF SPM Assessment Questionnaire Open Floor Exercise Outreach & Inclusion

29. SPA vs. SPM: two different things! Social Performance Management SPA a measure of how well an institution uses its systems and operations to generate positive social benefits SPA a measure of how well an institution uses its systems and operations to generate positive social benefits SPM the use of this measure to make decisions

30. Example from Mali (adapted from Cerise)

31. Managing for Social Results Define desired performance Measure progress toward desired performance Use performance results to improve products, services, & systems 30% new members are female New membership recorded by CU staff and reported to board CuTRAC training led to more inclusion of women

32. Achieve Your Mission Through Performance Management: Open Floor Questions & Clarifications Mission Performance Management Social Performance Financial Performance

33. Session 3: ILCUF SP Appraisal Questionnaire Overview of SP Appraisal Tool Objective: To be able to use the SP appraisal tool

34. ILCUF SP Appraisal Questionnaire Exercise: Carry out the SP Assessment in Groups of 4-6 1.Decide who is going to make the final presentation 2.Agree on the parameter of the exercise (pick one CU that all the group know or the average CU in the region etc.) 3.Rotate who is using the laptop, one section per person 4.The person who is using the laptop is asking the questions 5.Take one section and then sub-heading at a time, read out the related statements, and discuss and agree which statement most closely resembles the CU situation 6.Answer ‘Yes’ in the adjacent cell, insert justification & continue to the next question…

35. Session 4: Feedback and Roll Out Objective: The objective is for participants to demonstrate that they can use the appraisal tool and to increase their familiarity through discussion and clarifications. Each group present backs to the wider group Feedback & Clarifications are Provided on Each Section as Necessary

36. ILCUF SPM Assessment Questionnaire Plan for Piloting the SPM Who is going to which credit union? Logistics: Transport, lunch, contacts Clarification: Explain how the sessions should go.

37. Recap Questions? Why can we not take social performance for granted? Where should the starting point be for social performance? Name three of the headings under the social performance assessment tool. Who is the driver of social performance in a credit union?