Microfinance in the Philippines was given birth back in the 80s where NGOs were revolutionized due to the influx of foreign aids and surfacing poverty caused by political repression. Back then, microfinance industry's thrust is to assist the poor through loans and savings. As microfinance trends changed over time, the industry also aligns and modifies approaches towards poverty eradication.
However, the issues of imbalance between financial gain and social responsibility, in consequence, accustoming microfinance institutions to giving further adversity to the poor has emerged. Hence, the birth of Social Performance Management - an area of growing importance in the microfinance.
Figure 1. Social Performance Pathway: Strategy and Operations. Both a process and result which define the desired performance and measure results against performance.
Social Performance Management Definition
As defined by the Imp-act Consortium, Social Performance Management (SPM) is an institutionalized process which effectively translates an institution’s mission into practice, in line with accepted social goals that relate to:
Serving increasing numbers of poorer and excluded people sustainably
Improving the quality and appropriateness of financial services available to target clients through systematic assessment of their specific needs
Creating benefits for clients of microfinance, their families and communities in terms of: increasing social capital, assets, income, and access to services; reducing vulnerability; and fulfilling basic needs
Improving the social responsibility of the MFI towards its clients, its employees and the community it serves.
Integrating Social Performance Management (SPM) IN ASKI’s Operations
ASKI as a social development organization has made its social mission clarified and a priority even during its initial years of operation. It’s passion to serve the needy persuaded the organization to develop products and services that will ensure accomplishment of its mission. ASKI knew that credit alone will not solve poverty in the country, the reason it is one of the pioneers of the Beyond Microcredit or the Credit ++ approach to poverty eradication.
However, in 2008, ASKI realized that there is a need to clarify through its mission statement the 3 elements that are vital in translating its mission into practice: target clients; products and services that will offer to attain its mission; and its intended impact.
ASKI through its Corporate Planning Department went on to outline priority areas to purse social responsibility in bits that can be easily understood, implemented and can bring relevant information to monitor the organization’s progress in accomplishing its social goals and objectives.
SPM has also been included in the core strategies of the organization to achieve its mission. SPM activities and indicators were also nailed down to ensure that social performance is being managed properly. 2009 marks social performance commitment of ASKI as it chart different activities to monitor and evaluate social performance.
ASKI's Walk Towards a Balance Performance
Balancing Financial Management and Social Performance Management (SPM)
Following are major actions done by ASKI to ensure balance performance: 1. Review of ASKI vision and mission. To clarify 3 importalan (SBP). Inclusion of SPM as core strategy.
3. Process Mapping. Use of process maps as a tool to streamline existing processes of the organization.
4. Review of existing reporting framework. Inclusion of social performance information in the regular reporting.
5. Inclusion of social indicators to Staff Incentive Scheme. Gains in socio-economic development do not occur overnight. Clients need continuing access to resources to build on the gains and eventually attain sufficiency and responsibility. In order to create a caring culture among the frontline staff, ASKI has included client retention indicator in its staff incentive scheme.
6. Creation of SPM Committee. This committee will be responsible in monitoring and reviewing social performance.
SPM tools at ASKI
Social Rating. In 2009, a Social Rating was conducted by Microfinanza wherein ASKI got an A- rating (see summary report). Goal of ASKI in undergoing this assessment is to identify strong points as well as areas for improvement to further its social performance initiatives.
Progress Out of Poverty Index (PPI). To identify poverty distribution of ASKI and track poverty movement over time, ASKI adopted the Progress Out of Poverty Index (PPI). ASKI gathers the PPI score of all incoming clients to establish a baseline data on poverty level on which a tracking system can build on in the coming years.
Client Satisfaction. This survey was developed to regularly measure satisfaction of clients to ASKI products and services. Result of this survey can be used to improve products/services and at the same time link this to the performance management system of the organization and be able to incentivize or recognize employees/branches with the highest rate of satisfaction.
Client Exit Survey. Exit survey was also developed to understand drop-out of clients and become more prompt and objective in responding to exit client’s concerns. Through this initiative, client retention of ASKI is expected to increase.
With the continuous study and improvement in the ways it is conducting its business, ASKI hopes to have a balance performance.
For more information, please contact:
Ms. Mary Jane P. Macapagal
2/F ASKI Bldg., 105 Maharlika Highway, Cabanatuan City