SOCIAL PERFORMANCE MANAGEMENT

SOCIAL PERFORMANCE MANAGEMENT

Asirvad recently undertook a Social Performance Management Exercise with MicroSave and Lok Capital, with the involvement of the senior management and some Board members.

Social Performance Management (SPM) methodology is designed to assist the MFIs and their stake holders - Board, Management, Staff, Clients, Investors, Financial Institutions, Potential Investors and others to conduct a rapid diagnostic of a microfinance organisation and determine how well its processes are aligned with its social objectives. MicroSave's SPM methodology has a strong emphasis on client and staff surveys and feedback, as well as the use of participatory processes, in determining the alignment of systems and processes with the MFI mission to achieve the stated results of client targeting and meeting client needs.

During its 5 day visit (April 19-23), the MicroSave team followed the process given below :
  • Discussion with Senior Staff on Social Performance Management, providing an Introduction to SPM and insights into the SPM methodology of MicroSave
  • Formation of joint MicroSave - MFI SPM Team
  • Review of Systems, Processes and Documentation
  • Focus Group Discussions/Interviews with Key Staff
  • Visit to Branches
  • Review of Systems, Processes and Documentation
  • Interviews and FGDs with Staff
  • Client FGDs, Satisfaction Surveys, Participatory Rapid Appraisal (PRA) Tools
  • Interviews of Dropout Clients
Executive Summary : Key findings of SPM exercise
  • Transparency : From the beginning, the promoters of Asirvad have stressed transparency, both with clients and funders, and have taken steps to ensure this happens allowing funders to access up-to- date information on their funds/clients and ensuring proper communication with clients on product terms

  • Governance : A few key members of Asirvad's Board display strong leadership and active participation in guiding the organisation. Furthermore, these members and Senior Management alike have displayed an exemplary curiosity and commitment to SPM

  • High quality services which can be improved / tailored to meet clients' needs : The quality of services (timely, professional, customer-friendly) delivered by Asirvad is appreciated by its clients. Indeed, in a very saturated and competitive state, this may be a source of competitive advantage

  • Client Protection : A strong system of Audit and Internal Controls that constantly evaluates key operational processes and record keeping helps protect clients from fraud and error

  • Strong Systems and Limiting Costs : Asirvad has focused on keeping costs low and standardising operational processes and documentation to ensure a responsible pace of growth  and this approach is paying dividends in increasing operating efficiency

  • Responsibility to Staff : Asirvad staff appreciates the office timings, incentives offered to field and branch staff, and a generally supportive working environment