Module 3: Choosing and
Using Social Indicators
SPM Essentials Online Course
Managing Social
Performance
Measure
progress
toward desired
performance
Define desired
performance
Use
performance
results to
improve
products,
services,
delivery
channels &
systems
Managing Social
Performance
Set
social
targets
Define desired
performance
Measure
progress
toward desired
performance
Use
performance
results to
improve
products,
services,
delivery
channels &
systems
Example of translating goals to targets
Goals
Reach the poor
living in rural
areas.
Targets
• 75% of clients are living in
rural areas by end of 2013.
• 70% of sample clients have a
dirt floor upon entry into the
program (poverty indicator).
Managing Social
Performance
Select
indicators
and
collect
data
Measure
progress
toward desired
performance
Define desired
performance
Use
performance
results to
improve
products,
services,
delivery
channels &
systems
Four steps for choosing and using
social indicators
• Step 1: Choose indicators that correspond to
your social goals and targets.
• Step 2: Choose indicators that will assist in
decision-making.
• Step 3: Decide how the data will be collected,
and how often.
• Step 4: Decide where the information will be
stored, how it will be analyzed, and how it will be
delivered to decision makers.
Step 1: Choose indicators that correspond
to your social goals and targets.
• For each target, choose one or more indicators to
measure progress toward that target.
• Ask, what data do we need to collect in order to
know if we’ve met the target?
Example of translating targets to
indicators
Goal
Targets
Indicators
Reach the
• 75% of clients are
• Type of area in which
poor living in
living in rural areas by
client lives. Options:
rural, semi-urban,
rural areas.
end of 2013.
• 70% of sample clients
urban.
have a dirt floor upon • Type of floor upon
entry into the
entry. Options: dirt,
program (poverty
cement, tile.
indicator).
Step 2: Choose indicators that will assist
in decision-making
Only choose indicators that are useful for
decision-making. Ask:
• Who needs information?
• What decisions do they need to make?
TIP: Ask managers- If you could have any
information about clients and employees, what
would it be?
Example 1: Choose indicators that will
assist in decision-making.
• Who needs the information?
▫ The Operations department
• What decisions do they need to make?
▫ How to reduce client exit.
• If the Board could have any information about clients,
what would it be?
▫ What is the client exit rate, who is exiting, and when do clients exit?
• Indicators selected:
▫ 1. Client exit rate, overall. 2. Client exit rate, by branch. 3. Client
exit rate by tenure, 4. Reasons for client exit (exit survey)
• Use of indicator for decision-making: Operations will make
changes to retain clients (e.g. larger loan sizes for urban clients, better
training for new clients).
Example 2: Choose indicators that will
assist in decision-making.
• Who needs the information?
▫ The Human Resources Manager
• What decisions do they need to make?
▫ Which topics to focus on during employee training.
• If the HR Manager could have any information
about clients, what would it be?
▫ Whether they understand their loan terms before signing.
• Indicator selected: Did your loan officer help you to
understand the terms of your loan before you signed the loan
contract? (Y/N)
• Use of indicator for decision-making: HR Manager
will understand whether loan officers need additional training
on explaining loan terms to clients.
Step 3: Decide how the data will be
collected and how often to report them.
• Look to existing sources of data.
• Determine who should collect the data.
 Balance cost and specialized skills
• Determine how often decision-makers need data from
each indicator.
Data analysis from
indicators
Frequency of Reporting
% of new clients with dirt floor
Semi-annually
% of clients in rural areas
Semi-annually
Client exit, by branch
Quarterly
Reasons for client exit
Annually
Step 4: Decide where the information will be
stored, how it will be analyzed, and how it
will be delivered to decision makers.
• Storage: Review the capacity of the management
information system (MIS) to store social data.
 Upgrade MIS or store data in a separate database
• Analysis: Determine who can analyze the data.
Start with simple analysis and build skills over time.
• Reporting: Determine which reports are needed,
based on the decision-maker. Examples:
 dashboard, narrative, analysis of specific problem,
results of internal inquiries, social performance report
of all indicators collected
Create a table to make the final decision
POSSIBLE INDICATOR: Client business type
QUESTION:
ANSWER:
Which stakeholder(s) need the data?
Loan committees, Product Development
department
Why do they need it (purpose)?
Make proper loan decision, determine if
loan products match business needs
How costly to collect? Who collects?
Not too costly, can be done during normal
visit; loan officer to collect
Very useful
How useful for making decisions?
Where to get the information?
Add it to existing loan application and loan
utilization forms
How often will it be collected?
During first loan, and during loan
utilization checks (every other loan)
How often will it be reported?
Every loan committee meeting; and semiannually
Save the Date for Module 4
Subject: The MIX Social Performance Indicators
and Reporting
Date: 6 Dec. 2012 at 9:00am EST (NYC time)
Don’t miss it!