Social Performance Management

Social Performance Management is an approach that puts clients at the center of all strategic and operational decisions in a microfinance institution. It begins with a clear social strategy which is carried out by the board, management and employees. MFIs with strong SPM design products that help clients cope with emergencies, invest in economic opportunities, build assets and manage their daily and life cycle financial needs. Such MFIs also treat their employees responsibly and carefully balance the institution’s financial and social goals.

As a result, MFIs that actively manage their social performance hold themselves accountable to their social mission, facilitate greater social impact and can even boost their operational and financial performance in the medium-term. Having introduced the SPM framework into its operations since 2011, ECLOF chose to adopt the industry-leading standard – the Universal Standards for Social Performance Management. An interview with social performance expert Laura Foose in this year’s report highlights the industry body behind the Standards – the Social Performance Task Force. The report also sheds light on the application of the Standards during institutional transformation in the Dominican Republic and illustrates how ECLOF takes its role as an active community member seriously – even in times of disaster such as the earthquake that hit Ecuador in 2016.