SPM
Institutionalization
and Integration –
AMFIU
Association of Micro Finance
Institutions of Uganda
AMFIU’s Experience
Presented by:
David/Jackie
At the SPTF annual Meeting in Jordan,
June 4th – 8th 2012
Slide No. 1/14
Presentation Outline
1. Introduction
2. AMFIU’s Strategy
3. Process of Integration:
AMFIU
Association of Micro Finance
Institutions of Uganda
Step I – Strategy Review
Step II -Institutional Self Assessment/social audit
Step III – New Improved Plan
Step IV – Develop Clear Social Indicators
4. Milestones
Slide No. 2/14
1. Introduction
AMFIU
Association of Micro Finance
Institutions of Uganda
•SPM in Uganda is still in nascent stage
•Performance has long been associated
with financial outcomes (portfolio quality
and profitability) – PMT.
•But recently, stakeholders in MF are
beginning to acknowledge that achieving
social outcomes inherent in the missions
of
MFIs
requires
more
deliberate
strategies
Slide No. 3/14
2. AMFIU’s Strategy towards SPM
AMFIU
Association of Micro Finance
Institutions of Uganda
Awareness Creation
and promotion
Financial literacy
and client
protection
SPM
Strategy
Institutionalization
Capacity
building &SPM
reporting
Slide No. 4/14
3. Process of Institutionalization
and integration model
AMFIU
Association of Micro Finance
Institutions of Uganda
• Based on the MISION project model that
considers social performance as an integral
part of the institution’s performance
management system.
• Therefore, SP must be integrated in all systems
of the organization, right from strategic
planning
Slide No. 5/14
3(a) Process- Strategy
AMFIU
Association of Micro Finance
Institutions of Uganda
Step 1: Strategic review.
i) Review strategic plan of the MFI in order to align its
mission, goals and objectives with entire strategy.
• Mission statement must answer three broad
question:
- Who are your target clients?
- How do you intend to meet their needs?
- What change you want to see in your clients’ lives?
Slide No. 6/14
3(b)Process - Mission
[Cont’d]
AMFIU
Association of Micro Finance
Institutions of Uganda
• Example of Opportunity Bank:
• Mission: To be the leading provider of
financial services to low income people in
rural and urban areas of Uganda ,promoting
holistic transformation of lives whilst
maintaining sustainability.
ii). Review social goals in relation to the mission
statement and the three broad questions (target
clients, meeting clients’ needs and change in
Slide No. 7/14
clients’ lives)
3(c)Process- Goals
AMFIU
Association of Micro Finance
Institutions of Uganda
• Opportunity Bank’s Goals
Reaching
To reach the largest number of low
Target Clients income people in all rural and urban
areas of Uganda
Meeting Client To provide high quality financial
needs
services that are responsive to client
needs
Creating a
change within
clients lives
To enable low income people increase
their incomes, create employment and
work their way out of poverty
Slide No. 8/14
3(d)Process- Objectives
AMFIU
Association of Micro Finance
Institutions of Uganda
iii). Define SMART Objectives Based on goals
Social Goals
Social Objectives
To reach the largest number of
low income people in all rural
and urban areas of Uganda
Provide financial services through ……access points half
of which should be rural by the end 2014
Achieve ……..number of clients by the end 2014 ….%
should be rural
To provide high quality
financial services that are
responsive to client needs
Increase the number of products tailored to the needs of
our clients to…….by 2014.
Improve service delivery and reduce customer
complaints by ….% by 2014
To enable low income people
increase their incomes, create
employment and work their
way out of poverty
Provide our clients with ……financial education
programmes
Increase deposit accounts of low income people to
…….accounts by 2014
Slide No. 9/9
3(e)Process –Self assessment
AMFIU
Association of Micro Finance
Institutions of Uganda
Step 2: Institutional self assessment and social
audit using the Baldrige tool. Assesses the
MFI as a system in key performance areas of:
1. Leadership
2. Strategic planning
3. Customer focus
4. Workforce
5. Process management
Slide No. 10/14
3 (f) Process – Improved Plan
AMFIU
Association of Micro Finance
Institutions of Uganda
Step 3. Develop an Improvement Plan
Come up with an improvement plan based on the
gaps identified with timelines and responsible
persons.
Step 4. Clear Social Indicators
• Develop social indicators based on the
objectives and audit and incorporate into the
MIS
• Incorporate all revisions in the strategic plan
Slide No. 11/14
4. Milestones so far
AMFIU
Association of Micro Finance
Institutions of Uganda
• Opportunity Bank has reviewed their strategic
plan and incorporated the new mission, goals and
objectives
• Raised resources to train all their staff in SPM
(branch to branch)
• Have started the process of reviewing their MIS
to integrate some of the agreed upon social
indicators
Slide No. 12/14
Milestones [cont’d]
AMFIU
Association of Micro Finance
Institutions of Uganda
• Adopted the PPI to enable them systematically
target the low income clients
• Their work plan for this year includes a client
satisfaction and market survey
• Started reporting to the MIX
Slide No. 13/14
AMFIU
Association of Micro Finance
Institutions of Uganda
Thanks for Your Attention.
Happy to answer any questions
Slide No. 14/14