From Mission to Action Lessons learnt from institutionalizing SPM in ECA Katarzyna Pawlak, MFC

Start October 2005 Action Research „From Mission to Action” Management Series Strategic management toolkit Social audit tool Regional Working Group Semi-annual peer learning meetings Intensive vs. extensive approach to mentoring MFIs, MFAs, TA providers ECA region, Guatemala, Peru and the Philippines MFC regionalSPM program

SPM concept what does it mean in practice? how does it relate to what we do and believe in? Urgency of SPM vs. other burning issues problems with time and resource allocation Change management skills and processes problems with buy-in, commitment and leadership lack of effective communication and teamwork projectized implementation, tools driven Underdeveloped supportive functions: MIS, HR, etc hindering alignment of management systems and culture Institutionalizationkey challenges

Institutionalization Supports operationalization of SPM Grounded in MFI’s context and prioritized needs Establishes an on-going change process integrated into daily operations Involves all staff – participatory, bottom-up Internally driven with external inputs approach

From Mission to Action supporting institutionalization 1. Securing Buy- in and commitment at the Top Promo Executive Workshops SPM Training Get real interest Commit resources Start the process 2. Developing a realistic institution specific institutionalizati on plan Diagnostic tools social audit social rating other assessments translate the concept into „institutional terms” identify strengths to build upon prioritize actions to make the institutionalization process manageable 3. Systematic step-by-step implementation Internal cross-functional and organization-wide team work leading the change process supported by tools: strategic planning/management incentive systems MIS reports etc. organization-wide integration on-going learning and improvement from the change program systemic approach ensuring communication, organization-wide participation, buy-in integrating to on-going decisions and related processes part of on-going management and staff meetings supported by expert know-how and change facilitation input

From Mission to Actiontools map Strategy map Measurement scorecard High level action plan Initiatives documentation Communication plan Capacity building plan Strategic Management Toolkit Balances the strategy Links operations to long term social and financial objectives Toolkit Overview Handbook Facilitator’s Guides Gap analysis In-depth follow-up interviews Audit panel Audit report Quality Audit Tool Diagnoses management systems’ strengths & weaknesses Identifies priorities for improvement Tool Overview Handbook

Social Audit 3-4 day diagnostics Diagnoses strengths and weaknesses Identifies priority actions for improvement From self-assessment to external evaluation Team of internal and external auditors Entry point for SPM institutionalization Initial diagnosis Permanent part of on-going SPM (periodic review) Preparatory stage for external social rating implementation

Strategic Management An institutionalization supporting tool strategic management processes systemization and alignment 6-12 month implementation Internally led by a cross-functional team External support along the process (14-20 days) 4 day kick off workshop 2-day Learning and Action workshop x 2 Distance mentoring on monthly basis linked to internal team meetings implementation

Social Audit „...this tool will be useful to any organization that has a serious intent to improve the management of its social performance” „...the QAT was an effective tool to enable staff to understand SPM in more depth and look at their own systems objectively...” „...while in theory the MFI has an elaborate system of collecting client level information – housing, income, assets, and also entering this data in the computer database... The data is not reliable... There is no point in putting in all the effort in data collection and entry if that data is not reliable...” „...it is a simple, comprehensive, self-assessment mean to recognize and critically address issues in the organization…” „...in our case, the tool revealed many weak points in the systems and management processes and resulted in creating an institutional strategy with a holistic approach..” pilot test feedback

Strategic Management pilot test results

Tools Increased understanding and commitment to the mission and SPM More realistic action planning Making SPM an on-going process not just a stand along project Increased focus on what is important not only urgent in every day activities Teamwork and leadership at different levels Building on what is already available in the MFI and making it more effective benefits

From Mission to Action From Mission to Action Management Series Social Audit Overview Strategic Management Overview Resource CD: Handbooks Facilitator's guides SPM related articles English & Spanish dissemination

From Mission to Action Social Audit Dissemination Social Audit Training (with pre-rating component) marketed to MFIs as open enrollment course ImpAct Consortium non-practitioner course on Introduction to SPM TOTs for national associations and training providers Strategic Management Dissemination TOT for facilitators followed by shadowed or co-facilitated tandem delivery (domino mechanism) On-going distance support to facilitators Dissemination Partners Latin America: COPEME South Asia: MCPI ImpAct Consortium Members dissemination

From Mission to Action THANK YOU! For more information please contact Katarzyna Pawlak at