Module 3: Choosing and Using Social Indicators SPM Essentials Online Course

Define desired performance Measure progress toward desired performance Use performance results to improve products, services, delivery channels & systems Managing Social Performance

Define desired performance Measure progress toward desired performance Use performance results to improve products, services, delivery channels & systems Set social targets Managing Social Performance

Example of translating goals to targets GoalsTargets Reach the poor living in rural areas. 75% of clients are living in rural areas by end of % of sample clients have a dirt floor upon entry into the program (poverty indicator).

Managing Social Performance Define desired performance Measure progress toward desired performance Use performance results to improve products, services, delivery channels & systems Select indicators and collect data

Four steps for choosing and using social indicators Step 1: Choose indicators that correspond to your social goals and targets. Step 2: Choose indicators that will assist in decision-making. Step 3: Decide how the data will be collected, and how often. Step 4: Decide where the information will be stored, how it will be analyzed, and how it will be delivered to decision makers.

Step 1: Choose indicators that correspond to your social goals and targets. For each target, choose one or more indicators to measure progress toward that target. Ask, what data do we need to collect in order to know if we’ve met the target?

Example of translating targets to indicators GoalTargetsIndicators Reach the poor living in rural areas. 75% of clients are living in rural areas by end of % of sample clients have a dirt floor upon entry into the program (poverty indicator). Type of area in which client lives. Options: rural, semi-urban, urban. Type of floor upon entry. Options: dirt, cement, tile.

Step 2: Choose indicators that will assist in decision-making Only choose indicators that are useful for decision-making. Ask: Who needs information? What decisions do they need to make? TIP: Ask managers- If you could have any information about clients and employees, what would it be?

Example 1: Choose indicators that will assist in decision-making. Who needs the information? ▫The Operations department What decisions do they need to make? ▫How to reduce client exit. If the Board could have any information about clients, what would it be? ▫What is the client exit rate, who is exiting, and when do clients exit? Indicators selected: ▫1. Client exit rate, overall. 2. Client exit rate, by branch. 3. Client exit rate by tenure, 4. Reasons for client exit (exit survey) Use of indicator for decision-making: Operations will make changes to retain clients (e.g. larger loan sizes for urban clients, better training for new clients).

Example 2: Choose indicators that will assist in decision-making. Who needs the information? ▫The Human Resources Manager What decisions do they need to make? ▫Which topics to focus on during employee training. If the HR Manager could have any information about clients, what would it be? ▫Whether they understand their loan terms before signing. Indicator selected: Did your loan officer help you to understand the terms of your loan before you signed the loan contract? (Y/N) Use of indicator for decision-making: HR Manager will understand whether loan officers need additional training on explaining loan terms to clients.

Step 3: Decide how the data will be collected and how often to report them. Look to existing sources of data. Determine who should collect the data.  Balance cost and specialized skills Determine how often decision-makers need data from each indicator. Data analysis from indicators Frequency of Reporting % of new clients with dirt floorSemi-annually % of clients in rural areasSemi-annually Client exit, by branchQuarterly Reasons for client exitAnnually

Step 4: Decide where the information will be stored, how it will be analyzed, and how it will be delivered to decision makers. Storage: Review the capacity of the management information system (MIS) to store social data.  Upgrade MIS or store data in a separate database Analysis: Determine who can analyze the data. Start with simple analysis and build skills over time. Reporting: Determine which reports are needed, based on the decision-maker. Examples:  dashboard, narrative, analysis of specific problem, results of internal inquiries, social performance report of all indicators collected

POSSIBLE INDICATOR: Client business type QUESTION:ANSWER: Which stakeholder(s) need the data? Loan committees, Product Development department Why do they need it (purpose)?Make proper loan decision, determine if loan products match business needs How costly to collect? Who collects?Not too costly, can be done during normal visit; loan officer to collect How useful for making decisions? Very useful Where to get the information?Add it to existing loan application and loan utilization forms How often will it be collected?During first loan, and during loan utilization checks (every other loan) How often will it be reported?Every loan committee meeting; and semi- annually Create a table to make the final decision

Save the Date for Module 4 Subject: The MIX Social Performance Indicators and Reporting Date: 6 Dec at 9:00am EST (NYC time) Don’t miss it!