universal standards for social performance management at bolivian microfinance sector by profin...
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UNIVERSAL STANDARDS FOR SOCIALPERFORMANCE MANAGEMENT AT BOLIVIAN MICROFINANCE SECTOR
By PROFIN Foundation, for SPTF Networks Meeting, Panama, June 2013
• Founded in Bolivia in 2006, after 10 years of experience as program of SDC and DANIDA.
PROFIN´s main activity has been the financial innovation for productive sector.
Social performance is part of the institutional strengthening interventions of MFIs, for which PROFIN gives technical support since 2006.
FINANCIAL AND PRODUCTIVE SECTOR SUPPORTING
FOUNDATION
• PROFIN made the 1rst. implementation of SPI social audit in Bolivian Microfinance Sector, in 2006.
• Constantly, PROFIN has worked supporting the Social Performance Assessment and Social Performance Management of MFIs.
• In 2013, PROFIN has finished a study about baseline situation of Universal Standards in Bolivian Microfinance Sector.
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SELF ASSESSMENT OF COMPLIANCE WITH
UNIVERSAL STANDARDS
TO
MAKE
TO MAKE
KNOW
TO
IMPROVE
TO
KNOW
AWARENESS-RAISING AND
CONTEXTUALIZATION WORKSHOP
PROFIN´S STRATEGY REGARDING UNIVERSAL STANDARDS3
REPORT THE STATE OF SITUATION OF
UNIVERSAL STANDARDS: A
PUBLIC SECTORIAL REPORT AND A CONFIDENTIAL
INDIVIDUAL REPORT
TECHNICAL SUPPORT FOR IMPROVE THE
IMPLEMENTATION OF UNIVERSAL STANDARDS
TO KNOW4
PROFIN conducts a workshop for each IMF,
representatives of Board of Directors and employees
participate
PROFIN gives to each MFI the workshop material for
internal use
PROFIN invites to IMFs to participate in the process
SCOPE OF THE WORKSHOP 1. Conceptual Framework of Social
Performance2. International Initiatives • SPM approach of Imp-Act Consortium• Social Audit and Social Rating • Market Research and Poverty Measurement• Responsible Finance• Universal Standards and Social Performance
Indicators 3. Local Initiatives • Networks initiatives: ASOFIN y FINRURAL• Sectorial initiatives: PROFIN Foundation• Social Performance in new Financial
Services Law.
TO MAKE
PROFIN gives to each MFI a self assessment
questionnaire of Standards compliance
5
PROFIN fixes a rating scale of the answers
0 = null compliance 1= low compliance
2= median compliance 3=high compliance 4=total compliance
PROFIN identifies the current percentage of
compliance
STANDARD 5C. THE INSTITUTION MONITORS EMPLOYEE SATISFACTION AND TURN-OVER
ESSENTIAL PRACTICES COMPLIANCENull Low Median High Total
5C.1 The organization gathers, documents, and analyzes employee satisfaction data
X
5C.2The institution monitors the rate of employee turnover and understands the reasons for employee exit
x
5C.3
The institution takes action to correct institutional problems leading to employee turn-over and dissatisfaction
x
5C. Monitor of the employee satisfaction and turn-over
Maximum value
Current value
%
12 9 75%5C.1 know information about the employee satisfaction 4 2 50%5C.2 Monitor the employee exit causes and turn-over rate 4 3 75%5C.3 Correct the employee dissatisfaction causes and turn-over 4 1 25%
TO MAKE KNOW6
PROFIN generates a sectorial report with average results of
MFIs (public report)
AVERAGE COMPLIANCE WITH THE STANDARDS1A. Strategy for reach social goals 80%1B. Collection, report and quality of social performance information
71%
2A. Committed of the Board of Directors with the social mission
87%
2B. Support of Board of Directors for accountability of social performance
80%
2C. Involvement of senior management with social strategy 76%2D. Social Performance in recruiting, evaluation and recognized of the employees
70%
3A Prevention of over-indebtedness 88%3B. Transparency in the information provided to customers 85%3C. Fair and respectful treatment of clients 73%3D. Privacy and security of client data 84%3E Mechanisms for complaint resolution 70%4A. Understand clients’ needs and Preferences 73%4B. Appropriate product design and delivery 88%4C. Design of products and services targets to generate benefits for clients
79%
5A. Supportive working environment and Human Resources policy
81%
5B. Transparency in employment terms and training for employees
85%
5C. Monitor of employee´s satisfaction and turn-over 78%6A. Appropriate and sustainable growth rates 86%6B. Appropriate financing structure 82%6C. Responsible pricing 84%6D. Appropriate compensation to senior managers 90%
TO MAKE KNOW (2)7
PROFIN generates a report for each MFI (a
confidential report)
PROFIN identifies gaps of 100% compliance and the
prioritization of improvements
Sections of Social Performance Management
Sectorial average
Compliance
MFI Compliance
Gap of 100%
compliance
Prioritization of
improvements
1. Define and Monitor Social Goals 75% 19%
-81% 12. Ensure Board, Management, and Employee Commitment to Social Goals
76% 49% -51% 2
3. Treat Clients Responsibly 81% 70% -30% 4
4. Design Products, Services, Delivery Models andChannels That Meet Clients’ Needs and Preferences
83% 75%-25% 5
5. Treat Employees Responsibly 81% 81% -19% 66. Balance Financial and Social Performance 84% 64% -36% 3
In the example, the MFI should prioritize the
social strategy definition and the social goals
monitoring (gaps= -81% and -51%)
PROFIN´S THECNICAL SUPPORT FOR SOCIAL PERFORMANCE
MANAGEMENT
PROFIN´S THECNICAL SUPPORT FOR SOCIAL PERFORMANCE
MANAGEMENT
STRENGTHENING GOVERNANCE
STRENGTHENING GOVERNANCE
INFORMATION SYSTEM FOR SOCIAL PERFOMANCE MANAGEMENT
INFORMATION SYSTEM FOR SOCIAL PERFOMANCE MANAGEMENT
TO IMPROVE
SECTION 1: DEFINE AND MONITORSOCIAL GOALS
ESTRATEGY PLANNING WITH SOCIAL DIMENTION
SECTION 2: ENSURE BOARD,MANAGEMENT, AND EMPLOYEECOMMITMENT TO SOCIAL GOALS
FINANCIAL INNOVATION PROCCESS WITH DEMAND APPROACH
FINANCIAL INNOVATION PROCCESS WITH DEMAND APPROACH
SECTION 3: APPROPRIATE DESIGN OF PRODUCTS, SERVICES, DELIVERY MODELS AND CHANNELS
STRENGTHENING SOCIAL RESPONSABILITY
STRENGTHENING SOCIAL RESPONSABILITY
SECTIONS 3 AND 5: TREAT CLIENTS AND EMPLOYEES RESPONSIBLY
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