1. SPM Essentials Module 9: The SPTF Universal Standards for Social Performance Management
March 28, 2013

2. Why use the Universal Standards?
Would you benefit from a single document that helps you understand SPM and how to achieve your social goals?
Do you want to demonstrate to investors and others that you are serious about achieving your social goals?
I would like for you, as an MFI practitioner to think about your social mission and to consider these two questions:
Would you benefit from a single document that helps you understand SPM and how to achieve your social goals?
Do you want to demonstrate to investors and others that you are serious about achieving your social goals?
If you answered “yes” to the first question, you will benefit from the Standards. There are many SPM initiatives and tools available to you, and sometimes it is difficult to know which to use. The Universal Standards is a single document that contains all of the global best practices for SPM. It can help you 1) understand SPM, and 2) plan how to achieve your social goals.
If you answered “yes” to the second question, the Standards will be useful for you. By implementing the practices found in the Universal Standards manual, your MFI can show true commitment to achieving your social goals. Investors and other stakeholders now recognize that many MFIs talk about social goals, but only the most committed are actively managing their social goals. The Standards provide you with a roadmap for actively managing your social goals.

3. Social motivation
We work in microfinance because we are committed helping our clients improve their lives. But it is hard to determine which SPM practices will help us to best serve our clients. The Universal Standards for Social Performance Management gives us a common set of standards for SPM that MFIs around the world are using to identify how to achieve their social goals.
As MFI practitioners, and support organizations, you are working in microfinance because you are committed helping your clients improve their lives. You are trying to treat your clients responsibly by offering them quality financial services that meet their needs.
Social performance management helps you fulfill your mission—but it can be time consuming and hard to determine which practices will allow your institution to best serve clients. The Universal Standards for Social Performance Management can increase your potential for positive outcomes by offering a common set of standards for social performance management that MFIs around the world are using to identify the best way to achieve their social goals.
Networks, this slide is an important part of your presentation because:
MFIs are deeply committed to their social missions, and it is important to validate their current work in order to engage them in conversation.
- Many MFIs are concerned about implementation of social performance management practices. This acknowledges their concerns, while speaking to the importance of SPM and introducing the Standards as a useful resource.

4. A comprehensive manual of best practices
The Standards bring together best practices implemented successfully throughout the industry in one comprehensive manual—to clarify and standardize social performance management.
 Until now, our industry has lacked a set of global best practices that MFIs can use as a guide for their work. A number of initiatives have identified useful practices, but none have provided a universally recognized way to consistently evaluate and report on every aspect of social performance management. Even in a single region, we may be approaching social performance management in different ways. One MFI may have to look at several different initiatives in order to get all the information it needs, and investors may require different information on social performance management.
For the first time, the Standards offer a comprehensive resource for MFIs that draws on existing best practices that MFIs around the world are already implementing successfully. It compiles them into a single manual, which also includes the best practices from leading industry initiatives such as the Smart Campaign and MFTransparency.
Networks, this slide is an important part of your presentation because:
This speaks to the need for a common resource and shows how the Standards can simplify SPM for MFIs.

5. There are 21 standards, organized into six sections.
They bring together many of the existing initiatives in the field.
The Standards cover all parts of social performance management. There are 21 standards, and they are organized into these six sections:
1. Define and Monitor Social Goals
2. Ensure Board, Management, and Employee Commitment to Social Goals
3. Treat Clients Responsibly
4. Design Products, Services, Delivery Channels and Mechanisms that Meet Client Needs and Preferences
5. Treat Employees Responsibly
6. Balance Social and Financial Performance
Instead of creating something entirely new for the industry, the SPTF incorporated the work of many other microfinance initiatives. This graphic shows which initiatives contributed heavily to each section of the Standards. They include MIX Market, CERISE, the Smart Campaign, MFTransparency, MicroSave, the International Labor Organization (a.k.a. the ILO) and the Imp-Act Consortium.
Additionally, social auditors and social raters contributed to the development of the Standards and are incorporating the Standards into their products. MFIs can use the Standards to improve their SPM to prepare for a rating, and can expect that audits and ratings will assess the practices found in the Standards. Similarly, the Smart Campaign’s standards for client protection certification are also included in the Universal Standards.
Each section contains individual standards and individual Essential Practices. The standards are broad statements that describe what the institution should achieve. The real guidance is found in the essential practices, which describe how an institution should fulfill the standard.
Networks, this slide is important to your presentation because:
In addition to showing the different aspects of SPM that are covered in the Standards, this slide shows how the Standards bring together the work of many other initiatives. People complain that there are too many SPM initiatives, and it is important to point out that the Standards combine much of the existing work into a single document.
Note:
This graphic is found on the 2-pager handout that you will give to the participants in both the MFI meeting and the Board meeting. When you show this slide, you may wish to refer to the handout.

6. Section 1: Define and Monitor Social Goals
Standards
The institution has a strategy to achieve its social goals.
The institution collects, reports, and ensures the accuracy of client-level data that are specific to the institution’s social goals.

7. Section 2: Ensure Board, Management, and Employee Commitment to Social Goals
Standards
Members of the Board of Directors are committed to the institution’s social mission.
Members of the Board of Directors hold the institution accountable to its social mission and social goals.
Senior management sets, and oversees implementation of, the institution’s strategy for achieving its social goals.
Employees are recruited, evaluated, and recognized based on both social and financial performance criteria.

8. Section 3: Treat Clients Responsibly
Standards
The institution determines that clients have the capacity to repay without becoming over-indebted. (CPP2)
The institution communicates clear, sufficient and timely information in a manner and language clients can understand so that clients can make informed decisions. (CPP3)
The institution and its agents treat their clients fairly and respectfully, and without discrimination. (CPP5)
The institution respects the privacy of individual client data and only uses client data for the purposes specified at the time the information is collected or as permitted by law. (CPP6)
The institution has timely and responsive mechanisms for complaints and problem resolution for their clients and uses these mechanisms both to resolve individual problems and to improve products and services. (CPP7)

9. Section 4: Design Products, Services, Delivery Models and Channels That Meet Clients’ Needs
Standards
The institution understands the needs and preferences of different types of clients.
The institution designs products, services, and delivery channels in such a way that they do not cause clients harm.
The institution’s products, services, delivery models and channels are designed to benefit clients, in line with the institution’s social goals.

10. Section 5: Treat Employees Responsibly
Standards
The institution follows a written Human Resources policy that protects employees and creates a supportive working environment.
The institution communicates to all employees the terms of their employment and provides training for essential job functions.
The institution monitors employee satisfaction and turnover.

11. Section 6: Balance Social and Financial Performance
Standards
Growth rates are sustainable and appropriate for market conditions, allowing for high service quality.
The institution’s financing structure is appropriate to a double bottom line institution in its mix of sources, terms, and desired returns.
Pursuit of profits does not undermine the long-term sustainability of the institution or client well-being.
The institution offers compensation to senior managers that is appropriate to a double bottom line institution.

12. Requires Board members to adhere to the institution’s code of ethics.
Section 2: Ensure Board, Management, and Employee Commitment to Social Goals
Standard
2a- Members of the Board of Directors are committed to the institution’s social mission.
Essential Practices
Provide Board with an orientation on the social mission and goals, and the Board’s responsibilities for managing social performance, and confirm that each member agrees.
Requires Board members to adhere to the institution’s code of ethics.
Now we’ve reviewed the Standards in each section. But you’ll remember that for each standard, there are several essential practices. Essential practices provide detail on how the institution achieves the standard.
Let’s look at an example.
This is an example from Section 2 of the Standards, which is a section called “Ensure Board, Management, and Employee Commitment to Social Goals.” There are 4 individual standards in this section.
We will just look at just ONE of the four standards. This standard says “Members of the Board of Directors are committed to the institution’s social mission.” This is a simple statement of what the institution should achieve.
The essential practices listed beneath the Standard provide guidance on how the institution should meet the standards. So you can see that the essential practices for this standard are:
- The institution provides Board members with an orientation on the social mission and goals, and the Board’s responsibilities related to the social performance management of the institution, and confirms that each member agrees.
- The institution requires Board members to adhere to the institution’s code of ethics.
So these are the two essential practices that describe how the members of the Board are committed to the institution’s social mission.
Networks, this slide is important to your presentation because:
A concrete example will help your audience understand how the standards are structured.

13. By and for people in the field
The Standards were created by MFIs, networks, investors and other stakeholders around the world, who identified the need and worked together to create a common resource. The SPTF managed the process of creating the Standards, but the content of the Standards came from members.
Networks, this slide is an important part of your presentation because:
This shows that the Standards are not an initiative of the SPTF as an organization, rather, they were created by hundreds of SPTF members, from every stakeholder group. This gives the Standards their credibility.
The Standards were created by MFIs, networks, investors and other stakeholders around the world, who identified the need and worked together to create a common resource.

14. Resource for achieving social goals
 The Standards are a resource for MFIs seeking to achieve social goals. The Standards do not dictate what an MFI’s goal should be, but help identify the best way to achieve it.
The Standards were designed to give MFIs throughout the industry a consistent approach to SPM. All of your institutions are unique—you have different social goals. The Standards do not dictate what your social goals should be, but they can help you decide the best way to achieve them. They can help you identify what you are already doing well and what you can improve. They also can help set more consistent expectations among your board, staff, investors and other stakeholders.
Networks, this slide is important to your presentation because:
MFIs all have different social goals, and it is important to emphasize that the Standards don’t change them. Any MFI can use the Standards, regardless of their social goals.
The Standards are a resource for MFIs seeking to achieve social goals. The Standards do not dictate what an MFI’s goal should be, but help identify the best way to achieve it.

15. Realistic implementation process
Adopting the standards is a process that will be different for each institution. MFIs can work with investors, networks, and other partners to set realistic goals and adopt them at their own pace.
 Implementing the standards is a process that will be different for each institution. MFIs can work with investors, networks and other partners to set realistic goals and adopt them at their own pace.
As you read through the Standards, you will realize that they contain ALL the aspects of SPM, and that most institutions are not yet implementing all of the standards. But don’t get overwhelmed—MFIs should implement these standards over time, going as slowly as necessary. MFIs can start with the practices that they think are most important, given their social mission, their priorities, their resources available, and the needs of their clients.
Networks, this slide is important for your presentation because:
The Standards may be overwhelming for MFIs, especially those who are new to SPM. It is important that institutions know that they can start small, and work toward total implementation of the Standards, at their own pace.

16. The ultimate goal
The ultimate goal of the Standards is to have more MFIs better equipped to achieve their social goals— and meet the needs of their clients.
The Standards are a resource to help you do this—the list of standards gives you a roadmap for improving your management practices. And as your management practices improve, you will be more likely to achieve your social goals and meet the needs of your clients.
Networks, this slide is important to your presentation because:
It reiterates the key message that the Standards are a resource to help MFIs achieve their goals.
More MFIs better equipped to achieve their social goals— and meet the needs of their clients.

17. Call to Action For MFIs: Review the Standards manual
Conduct an informal self-assessment
Conduct a formal social audit
Select specific practices to improve
Seek network support and external resources
Document progress for network and SPTF

18. Call to Action For investors/donors: Review the Standards manual
Integrate the Standards into your due diligence and monitoring processes
Encourage/ reward investees to work toward implementing the Standards

19. Call to Action For Networks/Associations: Review the Standards manual
Download and listen to the “Awareness Raising Campaign” materials, to learn how to present the Standards to your members ( raising-campaign)
Train your members on the Standards
Support members to implement the Standards
Experience-sharing among members
Publicize best practices
Provide resources

20. Materials to Guide Implementation
Download the Standards Manual
Available at: standards
View the Implementation Series webinar materials and listen to the recordings
Available in English at: trainings/universal-standards-implementation
Available in Spanish at: trainings/implementacion-de-los-estandares- universales
 The SPTF has resources to help you with implementing the practices found in the Universal Standards. I will review 4 of these resources, each of which is available on the SPTF website, for free.
You should review and understanding the entire Universal Standards manual. It is available on the SPTF website at this link.
For the past several months, the SPTF has organized an online meeting series called the Universal Standards Implementation Series. They have discussed each section of the Standards, and highlighted the experience of actual MFIs who are implementing the essential practices found in that section. The SPTF has already discussed sections 1-4 of the Standards, and will discuss Section 5 in late February and Section 6 in March. Though the series is already more than halfway over, you can still review the contents of the series. Each of the meetings was recorded, and you can listen to the entire recording. You can also review the PPT presentations used in the series. This is the link to the series on the SPTF website.

21. Materials to Guide Implementation (continued)
Review the Resources in the Universal Standards Resource Library
Available at: implementation-resources
Join the SPTF
See:
3. The SPTF is also building an online “library” of resources related to the Standards. The library contains new and existing resources on SPM, and organizes the resources by matching it to the related section of the Standards. So if you want to view resources on Section 2, you can go to the library and view documents that may be useful to you when you try to implement the practices found in section 2.
4. You may also want to join the SPTF. Right now, there are no requirements to become a member, and it’s completely free. By joining, you will be added to the SPTF list, so you will receive information about new resources, SPTF trainings, and other SPM activities. You can easily sign up on the SPTF website. [
5. Networks, some of you are planning to translate the Universal Standards into a language other than Spanish, French, Arabic or Russian. If you do this, and you make it available on your website, you should add the hyperlink to this slide.

22. Thank you!