Mainstreaming

Social Performance in Operations

ASKI and Strategic Planning

July 30, 2010
 A God-centered,
model microfinance
organization
ASKI’S VISION committed to serve
the needy in Luzon
through socio-
economic and
holistic
transformation.
  Enhance the spiritual life of our
stakeholders through daily devotions.
Retreats and Christian enrichment
activities.
 Ensure the economic security of our
clients by providing financial services
ASKI MISSION and technical expertise.
 Link with domestic and foreign
partners to realize community
development program and projects.
 Develop the talents and skills of BOT’s,
managers and employees.
 Safeguard resources, well-being and
prestige of ASKI.
MULTIPLE BOTTOMLINES

• Social
• Economic
• Environmental
• Spiritual
• Financing
• Insurance
• Community development Services
• Business Development and Support Services
• Training
• Scholarship
 FACTS AND FIGURES
AS OF JUNE 30, 2010

• Outreach: 63,638
• Portfolio: Php. 470,631,309
• No. of branches covered: 32
• No. of provinces covered: 10
• No. of towns covered: 229
• No. of Barangay covered: 3,465
 CURRENT SPM INITIATIVES
• Conduct of PPI Survey
• Product Assessments
• Creation of Process Maps
• Development of an environmental management system
• Review of vision, mission and objectives
• Review of monitoring and reporting tools to include SP
info
• Review of Staff Incentive System and PAR to include SP
indicators
 ASKI SPM Milestones
ASKI was established in 1987. Social mission of ASKI
is clear since its inception. The reason it is one of
the pioneers in community development
implementation or the beyond credit (credit ++) approach
to poverty alleviation which was formally launched in 2002.

2008
Review of Vision and Mission Statement
Piloting of Progress Out of Poverty Index (PPI)
 ASKI SPM Milestones
2009
Attendance to SPM Strategy workshop conducted
by MCPI
Development of SPM Plan
Revision of Strategic Business Plan and inclusion
of SPM as core strategy
Roll-out /Use of PPI to know poverty distribution
of ASKI outreach and progress of clients overtime.
FORMALIZING SPM
How it started?

The importance of Institutional Buy-in

ASKI’s Journey towards institutional buy-in
1. Get buy-in from the Board and Staff
• SPM (Translating mission into practice) orientation
was given to Board and Senior Management Team
highlighting the importance of SPM to achieve
mission
ASKI and Strategic Planning
Importance of an MFI’s Mission
• After the SPM orientation, ASKI Board and Senior
Management realized the importance of reviewing
the mission to clarify 3 important elements of SPM:
1) Who are the target clients
2) Services that will be given to address their needs
3) Impacts/Changes that we want to see in their lives
ASKI and Strategic Planning
Part 1: Revisiting ASKI’s Mission
ASKI and Strategic Planning
Why did ASKI revisit its mission?

1. To further define our target clients

• ASKI uses the word “NEEDY” to name our target
clients but realized that needy is a broad word and
can be anybody.
• ASKI try to specify who are our target clients “the
needy” in the SPM plan of ASKI.
 SOCIAL GOALS
Output of ASKI SPM Team
Who will your MFI reach?
• Needy
ECONOMIC – people/families who are in need to start or
expand their businesses
*lack collaterals or need smaller loans.
Reaching
*below the poverty line
target *marginalized people (IPs, Fisher folks, landless farmers,
clients small farmers, upland farmers, rural artisans, Senior
Citizen, Out of school youth)
*salaried workers
SOCIAL and Spiritual – people/families who:
* lacks opportunity for education and other social services
* lacks involvement in activities leading to spiritual growth
through local churches and communities
ASKI and Strategic Planning
Why did ASKI revisit its mission?

2. To list down products and services that are

vital to actualize the impacts that ASKI is
aiming
 How will your MFI meet the needs of your clients and
beneficiaries?
Meeting • Provision of financial and technical expertise
-i.e. Financial services (credit, life and health
target-
insurance and savings), trainings, marketing
client opportunities, networking and organizing
needs • Provision of Christian values-formation activities
and trainings
• Provision of scholarship for vocational and tertiary
education
• Provision of financial aid to selected day care centers
• Provision of community-development projects to
very poor communities
ASKI and Strategic Planning
Why did ASKI revisit its mission?

3. To specify positive changes that ASKI

wanted to contribute in the lives of its target
clients.
 What positive changes will ASKI contribute in the lives
of target clients?
 MICROFINANCE OPERATION
 Ensure economic security/ living sustainably
* Sustainable business operation
Change in * business registered to appropriate government
target agencies and able to pay taxes
clients’ * Employment generation
* having enough income to cover expenses or basic
lives
needs: food, shelter, clothing, water and
sanitation
• having savings to support future needs
• having insurance for security of family
• Access to health services and education
  TRANSFORMATION AND COMMUNITY DEVELOPMENT
 Socio-cultural
• Health – access to health services
• Environment – increase awareness and participation in
Change environmental advocacy
in target • Training and education – access to formal and non-
clients’ formal training and education
lives • Culture preservation and promotion – strengthen worth
and dignity as IP

 Spiritual transformation
• Active participation in their respective churches and
ready to assume leadership
ASKI and Strategic Planning

Part 2:
Setting Social Objectives and Performance Targets
1. Inclusion of SPM as core strategy in
accomplishing ASKI’s mission.
2. Creation of SPM Committee to monitor and
review social performance
3. Designing of SPM reporting framework to
monitor performance (on going)
4. Annual analysis of social performance
ASKI and Strategic Planning

Part 3:
Creating a strategy to achieve social objectives
ASKI and Strategic Planning

Part 3:
Creating a strategy to achieve social objectives
1. Buy-in from the Staff level
 Inclusion of SPM session in the Training
Curriculum of New Staff and Management
Trainees highlighting the importance of SPM
strategy to achieve mission;

 Review of the Information Dissemination Scheme

and creation of a more clarified feedback loop to
ensure that SPM updates/results is well-
communicated to implementers (Board, Senior
Management, Head Office and Branch Staff)
2. Clarify SPM Plans and how it can be put
into action
Training for implementers to ensure
understanding and appreciation of strategy and
tools that will be used;
Ensure that strategy/implementation can be
integrated to the existing system and will not
be an additional workload.
SPM Training Snapshots
 3. Clarify accountabilities
Create SPM Committee to monitor and review
implementation
Inclusion of SPM tools in the regular branch
processes for more systematic administration;
Inclusion of SPM updates in the meeting
agenda to monitor social performance.
 Challenges and Strategies to overcome
Challenges Strategies done to Overcome
Support of the Credit Orientation-Workshop for managers to understand
Operations and appreciate SPM
Know-how of Training-workshop for rank and file
implementers in PPI
Inclusion of SPM Session in the Training Program of
Staff (Classroom and Field Exposure) and
Management Trainees
Collection, Monitoring Appointment of SPM Point Person (Corporate
and Quality Control Planning Head) responsible to lead SPM initiatives
Communicating SPM- Review and refinement of existing policy –
related processes integrating SPM requirements.

Development of process maps for credit operations

and head office transactions for systematic
implementation.
 Challenges and Strategies to Overcome

Challenges Strategies to Overcome

Communicating Development of a simple PPI report for
SPM results Branches
Presentation of PPI report to branches to
increase understanding and reception.
Branch score sheet for Client Satisfaction
(being done annually- first report due in
August 2010)
Cost of For PPI - Cost of implementation, plans and
implementation directions presented to management
highlighting that cost of full implementation
will be the same in doing Means Test
(previous poverty assessment tool being
used by ASKI)
Challenges
Ensure standardised implementation of recently modified/ re-
engineered processes.
SPM reporting requirements of different networks and funding
agencies.
Expectation of networks and funding agencies to reflect SP
changes done on the financial performance of MFIs. (will be
difficult if will be based on trends because of the increasing
competition in the MF industry that affects financial
performance of MFIs)
Absence of peer data (Philippines) to compare ASKI results
(PPI and SPM)
Standardization of SPM indicators among MCPI partners to
allow comparative analysis
Way Forward -ASKI
Use of SPM results for decision-making.
Review of SBP to align changes made on some policies and
processes.
Thank you!!!