Managing Social Performance: How to Improve Impact? Ewa Bankowska SPM Program Manager, MFC

Context Increasingly commercial approach to microfinance Professionalization of the sector Focus on Social Performance: Has it been lost? Is it taken for granted? Is there “mission drift”?

Are we impacting Clients? change in microfinance is not automatic focus on financial sustainability Impact studies difficult and expensive Looking back – too late Unintended results: Overindebtedness Assets deprival

Management cockpit

Social Performance Pathway Information use Operations Strategy Reaching Target Clients Service Design & Delivery Mission Goals Objectives Systems Change Meeting Client Needs

Case study: Prizma (B&H) Poverty focused MFI Context: post-conflict: female led households are the poorest Target group: women in urban and rural areas Poverty scorecard to assess poverty and the change Client feedback through exit monitoring Staff selection and education – orientation on mission Prizma's mission is to improve the well being of large numbers of poor women and their families by providing long-term access to quality financial services.

Benefits Lower exit rates and higher client loyalty Higher staff motivation and lower turnover Innovation in products Identification of new market segments Good public image Increased access to financial resources Enabling regulatory environment EWA

What is fundamental Sound business practice Clients and their needs in the centre Information on clients used Social lenses to all systems Informed decision making

Quality Audit Tool Entry point to managing social performance Diagnoses strengths and weaknesses of internal systems Helps building buy-in and understanding of SPM at all levels Facilitates realistic action planning and step-by-step SPM improvement 1+5 day diagnostic process Qualitative interviews from Board to field staff and clients Audit panel to discuss results and plan improvements

SPM in practice Practical tools at www.mfc.org.pl/spm Case studies at www.imp-act.org Practitioner’s discussion at spmconsortium.ning.com