Social Performance Management in Microfinance: Guidelines
This booklet offers an overview of social performance management (SPM), a roadmap for developing an SPM system, and a resource guide for SPM. It discusses ways for MFIs to regularly monitor and assess their effectiveness in defining and reaching target clients.
The booklet states that social performance is effective translation of an institution's social mission into practice. Monitoring and assessing social performance is emerging as a vital activity in the microfinance industry. Practitioners increasingly acknowledge that achieving social outcomes inherent to their missions requires deliberate strategies and systematic monitoring.
The booklet discusses three broad components of the SPM development process, namely developing a social performance strategy, monitoring and assessing social performance, and institutionalizing and using social performance information. The guidelines set out practical steps through eight practice notes that guide MFIs through various aspects of SPM. These steps highlight the importance of:
- Responding to client needs;
- Understanding clients through in-depth qualitative interviews;
- Learning from client exit;
- Using surveys effectively for SPM;
- Choosing and using indicators for effective SPM;
- Planning research to assess social performance;
- Tracking client performance;
- Reviewing MFIs social performance.
