Operationalizing Social Performance Warsaw, 27th May 2004

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OperationalizingSocial PerformanceWarsaw,
27th May 2004
Kenan Crnkic Executive Director kenan_at_prizma.ba
www.prizma.ba
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OverviewWork under Imp-Act

• Sustaining Social Performance
• Pay for pro-poor agenda and sustained service
• Understanding Social Performance
• Who are we we reaching? How can we do better?
• Managing for Social Performance
• Leadership, culture, incentives, systems
• Monitoring Social Performance
• Poverty assessment and impact monitoring

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Imp-Act ObjectivesDevelopmental Institutional
Imperatives

• Increase depth
• Environment in which poor under-served
• Improve service quality
• Environment of growing competition
• Measure and strengthen impact
• Environment of poverty and growing inequality

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All Work Driven by Mission
Strengthen Impact

• Improve the well-being
• of large numbers of
• poor women and their families
• by providing long-term access to
• quality financial services

Increase depth
Vision To be recognized for giving people choices
to improve their lives and building committed
respectful relationships
Improve service quality
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Imp-Act Activities
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Sustaining Social Performance

• Country context
• Low middle-income country
• Philippines, Morocco, Bolivia
• Small population of 4 million
• Significant and growing competition 42 MFIs
• Institution
• Shelter, enterprise, basic needs focus
• 10,000 active clients
• 5 branches
• Financially self-sufficient
• Commercial financing
• Among two largest MFIs in active clients
• Some Challenges to Poverty Focus in Bosnia
• Low-population density
• High labor costs
• LID/WB primacy of profitability
• Legal framework allows for business lending only

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Sustaining Social Performance
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UnderstandingSocial Performance CGAP Poverty
Assessment

• Use of PAT questions in national omnibus survey
• Confirmed poorest regions
• Highlighted dramatic differences in .poverty
  between regions
• Management Information
• 64 of new Prizma clients among moderate poor
  and poorest terciles

• Affirmed Prizma reaching its mission defined
  target group but highlights scope and areas to
  increase of very poor
• Confirmed shelter repair loan accessed primarily
  by moderate and less poor clients

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UnderstandingSocial PerformanceMitigating Bias
Against Poor
See Anton Simanowitzs framework on exclusion for
explanation of these areas
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ManagingSocial PerformanceDouble Bottom Line

• Depth
• Drop Out
• Breadth
• Long-term Portfolio Quality
• Productivity
• Efficiency
• Monitor impact

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MonitoringSocial PerformancePoverty
Assessment/Impact Monitoring System

• Assessing Poverty
• Increase and maintain outreach to poor and very
  poor
• Monitoring outcomes
• Measure effects cost-effectively
• Improving Marketing Services
• Strengthen service to retain clients and remain
  competitive

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System DesignMeasuring Social Performance
Select indicators
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System DesignMeasuring Social Performance
Design scorecard
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System DesignMeasuring Social Performance
Automate system
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System DesignMeasuring Social Performance
Incorporate into broader social and financial
reporting
Ensure transparency and organization-wide
understanding
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System DesignMeasuring Social Performance
Compliment Marketing
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ConclusionLooking Back Ahead

• Many Steps Taken
• Numerous operational steps taken in past 12
  months
• Strengthen depth
• Culture, reward, leadership, documentation, etc.
• Monitor depth
• Monitor outcomes
• Strengthen market research and services
• Next steps
• Complete poverty assessment and impact system
• Explore savings and other services as legal frame
  allows to address broader needs of poor and very
  poor people
• Maintain ruthless focus on efficiency

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ConclusionLessons Still Being Learned

• Institutional design and commitment, not poverty
  status, determine whether poor people can access
  services
• Sustained outreach to and impact on large numbers
  of poor people requires
• Ruthless efficiency
• Transparency with key stakeholders
• Absolute clarity about fundamental social purpose
• No confusion about means and ends
• Need to understand and differentiate between
• Poor peoples development needs and market wants
• Need to carefully balance
• Developmental and institutional imperatives
• Strong focused social performance requires
• Leadership, leadership, leadership
• Institutionalization of values and incentives
• Clear translation of commitment into
  actionoperationalization

Kenan Crnkic Executive Director kenan_at_prizma.ba
www.prizma.ba