Institutionalising Social Performance Management In Financial Institutions: What Does It Take? – Part 2
by Angela Wambugu and Sunil Bhat
Jul 13, 2016
1 min
Implementing social performance management (SPM) in microfinance institutions (MFIs) has challenges. The Part 2 of this BN explains the last two pillars viz. staff involvement and investment in resources.
Implementing social performance management (SPM) in microfinance institutions (MFIs) has challenges. MicroSave has considerable experience in implementing SPM in MFIs across Africa and Asia. We feel that unless there is adequate support from the Board and the senior management of the MFI, SPM initiatives do not move smoothly. Our understanding is that the effective implementation of SPM initiatives in any MFI is possible only when all these four pillars work in unison: Board commitment and support, management involvement and commitment, staff buy-in and adequate investment in resources. It is these 4 elements which differentiate an MFI with good SPM initiatives (working) versus a not so successful one.
The Part 2 of this Briefing Note (BN) explains the last two pillars viz. staff involvement and investment in resources. Please see the Part 1 of this Briefing Note (BN) which explains the first two pillars viz. Board commitment and management’s role.
However a key point which needs to be kept in mind is that the benefits / fruits of SPM are not immediate. Building SPM oriented products and processes takes time but it is worth the effort.
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