Integrating Social Performance Management into Strategic Business Planning of MFIs

MicroSave's Briefing Note No. 89 describes how an MFI can integrate social performance management (SPM) into its strategic business plan (SBP).

A balanced view of performance management involves the integration of an institution’s social objectives and values, alongside its financial goals. In microfinance, this begins by emphasizing social aims in an MFI’s SBP. The SBP lays out the key objectives, goals, measures, and activities of an organization (KOGMA) and is ideally undertaken every three to five years. The integration of SPM into the SBP exercise involves steps that include:

• Outlining the mission, values, and vision at the core of the MFI’s strategy;
• Diagnosing the current strategic position;
• Formulating strategy using a social lens;
• Aligning financial projections and budgets with social objectives and related expenses;
• Creating key objectives and goals analysis;
• Creating measures and activities analysis;
• Implementing and monitoring KOGMA analysis.

Ultimately, an organization’s SBP helps to add value to its customers in a sustainable way, and ensure business and social success.