MICROCAPITAL.ORG STORY: Unitus and Michael & Susan Dell Foundation Collaborate to Increase Use of Social Performance Management Among Microfinance Institutions

A recent press release announced a new program to be implemented by the Michael and Susan Dell Foundation in association with Unitus, an international non-profit organization specializing in microfinance. The Social Performance Management Implementation Project (SPM IP) will be launched in India to measure the impact of microfinance institutions (MFIs) on the borrowers who work with them. Social performance management is a program used to assess an organizations goals, its progress towards these goals, and the need for improving process to strengthen future performance.

A previous MicroCapital story explains social performance management covers topics such as client poverty level, progress out of poverty, product design, and institutional policies and procedures. The story discusses the Social Performance Task Force, which was established to define a clear set of indicators that could be used by a variety of MFIs to explain and measure performance. The indicators range from poverty measurement to impact on client well-being, costs of services, and internal processes and how these factors support an MFI’s mission. For more information on MicroCapital coverage of social impact measurement, please visit: https://www.microcapital.org/microcapital-story-microfinance-information-exchange-mix-announces-release-of-the-social-performance-task-force%E2%80%99s-sptf-social-performance-indicators-survey/.

The project will be funded with a USD 756, 000 grant from the Dell Foundation. In total, the foundation has contributed approximately USD 15 million to microfinance initiatives [1]. The two-phase project will work with 10 MFI partners. The first phase involved a collection of 6, 000 client surveys per MFI partner, totalling 60, 000 surveys. The Grameen Foundation’s Progress out of Poverty Index (PPI) will be used for this step. The PPI uses non-financial indicators like family size, number of children in school, and type of housing to measure the changes in client social and economic well-being [2]. It is country-specific and is based on country income level, and either the country’s expenditure household survey or their World Bank Living Standards Measurement Survey. The purpose of the PPI is to measure changes in clients’ lifestyles and entrepreneurial progress over time [3].

In addition to the survey, a 45-question standardized quantitative survey called the CERISE Social Performance Indicator (SPI) will be used. This survey is designed to measure the social performance of MFIs [2]. For more details on the CERISE SPI, please visit http://www.cerise-microfinance.org/publication/pdf/impact/SPI-summary.pd… [4]. After phase one, partners may opt to continue to the SPM Optimization phase where they agree to full integrate SPM IP into their daily operations. Richard Wardell, Vice President of Unitus’ Global Programs, says “with the funding committed by the Michael & Susan Dell Foundation, we have a great opportunity to gain not only a deeper understanding of the positive social change varied microfinance approaches produce, but a chance to identify implementation best practices that will serve as a model for MFIs worldwide.”

Unitus is an international non-profit organization established in early 2000. The organization partners with “young, high-potential microfinance institutions, helping them build capacity, attract, and unite with the greater partner network to achieve rapid, sustainable growth.” Unitus works with partners throughout India and Southeast Asia, East Africa, Mexico, and South America [5]. As of December 2008, Unitus had total investments of USD 11, 750, 185, and total assets of USD 21, 380, 060 [7].

The Dell Foundation was established in 1999. Based in Austin, TX, the foundation initially focused on improving education and children’s health in Central Texas, but their mission soon expanded to reach children globally. To date, the Dell Foundation has worked in major urban communities in the United States and India. Total assets for the organization are USD 1, 331, 980, 763 [8].

By: Diya Chopra, Research Associate

Bibliography:

[1] Business Journal of Seattle
http://www.bizjournals.com/seattle/stories/2009/09/07/story8.html

[2] PR Web Press Release
http://www.prweb.com/releases/2009/09/prweb2834254.htm

[3] Grameen Foundation
http://www.grameenfoundation.org/what_we_do/microfinance_support/social_performance/the_ppi_tool/

[4] Cerise Microfinance
http://www.cerise-microfinance.org/publication/pdf/impact/SPI-summary.pdf

[5] Unitus
http://www.unitus.com/about-us/mission

[6] CGAP
http://www.mixmarket.org/sites/default/files/medialibrary/1501.740/Unitus_MFI_Overview__SKS.pdf

[7] Unitus

http://www.unitus.com/news-and information/downloads/financials/Unitus%20Audit%202008

[8] Michael and Susan Dell Foundation
http://www.msdf.org/