Solèy means sunshine in Haitian Creole. At the recent Microcredit Campaign Summit (MCS) in Valladolid, Spain, social performance in general (and the PPI specifically) were front and center, shining brightly. To that point, here is an excerpt from a blog post by Grameen Foundation President and CEO Alex Counts on the sunshine that the MCS directed to Haitian MFI Fonkoze and the Seal of Excellence.

Veena Yamini is a Senior Analyst at MicroSave.

The Grameen Foundation and MicroSave have joined together in Asia to implement the Progress out of Poverty Index® (PPI®), a social performance management (SPM) tool that enables pro-poor organizations to measure whether they are reaching and helping the poor, and better align their products and services to serve the needs of the poor. This is especially critical in the current microfinance environment, where there have been concerns that microfinance institutions (MFIs) are
more focused on profits than fighting poverty.

MicroSave is a consulting firm that helps financial service providers implement market-led approaches to serve low-income markets. It has developed an SPM methodology and toolkit that provides simple, low-cost, fast and effective ways to align systems and procedures in line with the mission of the organisation. MicroSave adopted the PPI late last year as an element in its Social Performance Management Implementation Project (SPM IP).

"Grameen Foundation is pleased to be working with a strong partner like MicroSave, and welcome them as a new service provider for the PPI. We especially look forward to collaborating at this critical time for microfinance in India, where recent events in Andhra Pradesh showed that it’s more important than ever for MFIs to demonstrate their commitment to a double-bottom-line approach to microfinance," said Steve Wright, Director of the Social Performance Management Center at Grameen Foundation. 

Recently, some of my colleagues and I had the opportunity to attend a two-day workshop to learn data analysis techniques for the Progress Out of Poverty Index® (PPI®), developed by the Grameen Foundation. At our MFI, the Banco Solidario – a regulated financial institution that operates nationwide in Ecuador – we started to use the PPI in 2009 to help monitor our social performance. Like many other MFIs, we made a commitment to poverty reduction in our mission statement. Over time, the PPI will help us to better understand the progress out of poverty amongst our clientele.

Given our experience with the PPI, the topic of the workshop piqued our interest. I had my doubts about the two day agenda at first. How could we possibly spend two days talking about data analysis? Since we had already implemented the PPI at my organization, I wasn´t sure how much was left to learn.

I couldn´t have been more mistaken. My colleagues and I all completed the workshop feeling like it was a great investment of our time. The PPI team at the Grameen Foundation has traveled around the world, observing and collecting best practices for PPI implementation. During the workshop our instructors presented a process based on their research on best practices for collecting and analyzing PPI data. We found the detailed, step-by-step explanation of each phase of the process extremely helpful...

In the Punjab section of Pakistan, just south of Islamabad, is the district of Chakwal—a focal point for an innovative community development effort based on poverty measurement. Since May 2010, no fewer than 68 villages surrounding Chakwal have been participating in a new initiative to help the poorest among them. The program, Plan Chakwal, supported by microfinance network Plan International, has been leading the way in using the Progress out of Poverty Index (PPI) to guide its community development work.

Led by Shabbir Hussain, Plan Chakwal’s livelihood coordinator, and Aziz Malik, Plan’s community development facilitator, Plan Chakwal over a three-month period (June, July and August, 2010) collected 18,003 PPI scorecards from the 68 villages, using a census approach. Because these villages have local community base organizations (CBOs) to follow through with community development work, they were chosen for PPI data collection.

This blog is also available in Spanish below the English copy.

For three years, PRISMA Microfinance has been using the Progress out of Poverty Index (PPI) to help us reach and serve our poorest clients: rural women.

We began to implement the PPI as a pilot in 2008 in two of our branches, and thanks to that good experience, in 2009 we expanded its use to all of our offices. Our goal was to reach the poorest people, and to monitor if and how their poverty levels changed. To do this, in 2010 we surveyed a sample of customers who were new in 2009, and found that--in one year--2.6 percent of these clients had moved above the national poverty line.

The use of PPI has allowed us to focus our efforts on reaching our target clients (the poor and vulnerable), and explore strategies to improve our services and deepen our efforts to reduce poverty. For us, as a microfinance organization with a social heart, the implementation of the PPI confirms that as a tool it is standardized, valid, comprehensive and flexible.

This blog is also available in Spanish below the English copy. 

By carrying out the MISION Program of Catholic Relief Services (CRS), REDCAMIF, a Central American Microfinance Network, has helped expand social performance management (SPM) among microfinance institutions (MFIs) affiliated with national networks in the region. During the past four years, 52 MFIs have begun to implement SPM systems in their operations.

To further these social performance implementations, REDCAMIF in January joined forces with Grameen Foundation to promote the use of the Progress out of Poverty Index (PPI) a poverty assessment tool designed to address some key challenges faced by MFIs. These include: how to properly identify target clients, especially among the poor population; and how to measure change in living conditions--in this case, what percentage of customers is moving out of poverty. To introduce and promote the PPI, REDCAMIF sponsored the recent workshop to train network trainers, who could then work with MFIs. The workshop was hosted by ASOMI, the network from El Salvador. It was attended by eight consultants and staff from the Central American networks REDIMIF, REDMICROH, ASOMI and ASOMIF. Trainers included Mary Jo Kochendorfer and Sergio Correa from Grameen Foundation and Jack Burga, director of the MISION Program.

As the new Latin America and Caribbean PPI specialist for Grameen Foundation, I have just completed-- and helped facilitate-- my first Training of Trainers course in San Salvador, El Salvador. During the last few weeks, Mary Jo Kochendorfer and I have been preparing all the materials for the sessions while I learn as much as possible about the PPI. The training was coordinated by Central American microfinance network REDCAMIF, and hosted by ASOMI, the microfinance network in El Salvador. The participants were a group of consultants who work closely with members of various national associations in Central America on social performance managerment (SPM). They will have the important role of introducing the PPI to microfinance institutions (MFIs) interested in poverty measurement. So our first objective was to train the participants in the value and knowledge of using the PPI so they would feel more confident supporting MFIs in the process of using the tool.

Most of our participants had worked with their countries’ MFIs through the CRS-MISIÓN Project, which encourages MFIs to measure social performance and report those results. The commitment of the MISION Project to carrying out these goals was clear at the training. Jack Burga, the CRS-MISION director, and Tomás Rodríguez, coordinator of the program for Central America and México, participated. Jack told the group how investors are now looking for MFIs that can demonstrate strong financial performance with measurable social performance results. Tomás highlighted the importance of the PPI as a tool for targeting clients, measuring outreach to the poor and designing products focused on meeting the needs of the poorest clients. The clear support of Jack and Tomás resonated with the participants and demonstrated how
the region is truly prioritizing social performance and
transparent poverty measurement.

Lift Above Poverty Association (LAPO), Microfinance Bank Limited in Nigeria—the largest microfinance institution (MFI) in the country—ended 2010 with a Training of Trainers (ToT) workshop on the use of the Progress out of Poverty Index (PPI). Conducted by Grameen Foundation in Lagos, the three-day workshop attracted 17 LAPO staff members from the head office in Benin City, along with the Coordination office in Lagos and area offices and branch operations.

LAPO had been using a poverty estimation tool to target clients and provide baseline data. However, this tool was not standardized. LAPO decided to adopt the PPI because it provides an objective assessment of clients’ poverty status aligned with the Nigerian poverty line. In short, LAPO wants to use the PPI to monitor outreach, track clients’ progress over time, and potentially incorporate PPI data into its marketing and business development activities. The goal is to better understand clients’ satisfaction and improve or expand its products’ value to its clients.

During a recent visit with a microfinance partner in Senegal, a colleague and I encountered two of the most discussed issues related to the PPI: the kind of collection with associated advantages and disadvantages and the organization’s attitude toward cost. This blog is also available in French below the English copy, thanks to Absa Gueye, APSFD Senegal.

After a sleepless night plagued by jet lag, Babacar Sambe, our West African Regional Representative, and I set out early one morning for Thies, Senegal to visit the head office of Caurie Microfinance. Caurie is a partner of Catholic Relief Service (CRS) Mision II Africa, Oikocredit, Terrafina Microfinance, and a member of APSFD Senegal*. Through its connection to these networks, Caurie participates as one of the two flagship microfinance institution (MFI) members of the PPI Users Collaborative in Africa (PUCA) initiative.

Caurie completed its PPI pilot in the first half of 2010, and is ready to begin its implementation this year as its MIS, Perfect, supplied by a Togolese company, now has the module to store PPI data. Caurie has been assisted through its pilot process by Absa Gueye, APSFD’s SPM manager, with me and Babacar providing advice and support as needed. Our trip was an opportunity for Babacar and me to get a greater understanding of Caurie’s proposed implementation approach and to ensure that the project managers were considering the pros and cons of the sampling approach they planned to pursue. We understood that Caurie intended to use a sampling approach in its implementation and we wanted to raise some questions; sampling is generally more complicated than practitioners recognize, especially when there is a desire to track the sample over time to measure clients’ progress.

We met with Andre Youm, one of Caurie’s SPM managers (also head of the operations department). As we began our discussion around the sampling approach outlined in the written implementation plan, Andre leapt to the issues that would complicate the sample, such as: what happens to the representativeness of the sample over time in face of organizational change – perhaps the addition of new branches – drop-outs or exiting clients. I smiled and said “Precisely!” We were there to make sure Caurie understood from the planning stage of the implementation approach that changes to the organization or the sample itself could limit the way in which the data are used and what they represent.

As we discussed the operational implications of a sampling approach – having to organize the sample yearly and mobilize staff for its collection, Andre explained that because of this, Caurie was now considering a limited census application of the PPI. When I inquired if there was a budget to do a limited census as I imagined that it might be slightly more expensive as compared to the initial budget created for the sample approach, he stopped, looked at me, and said,

“We see this as an investment, not as a cost. We are investing in SPM (PPI included) because we believe we will see a return on our investment.”

Once again, I said, “Precisely!”

Andre had hit the nail on the head! When many practitioners think of SPM, they generally translate the associated or marginal expenses as sunk cost-- costs incurred that cannot be recovered and have a fixed benefit (rent for instance). But I would argue that expenses associated with SPM are an investment with potential for different types and amounts of return.

With respect to the PPI, the investment is arguably minimal and the return is potentially very high for organizations that visit clients’ home as a part of normal business procedures, have a good information management team (for data management and processing), and strong existing research capacity. Organizations lacking any of these will need to make a greater investment in their internal capacity to obtain the most from PPI use. Hence, such organizations may have a smaller return in the first few years, but will have the potential for larger returns in subsequent years.


*APSFD Senegal is the flagship partner of the CRS Mision II Africa.

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Traduit en francais par Absa Gueye de APSFD Senegal:

Exactement! Clarté émergeant du terrain : Echantillonnage ou recensement ? Coût ou investissement ?

Lors d’une visite récente dans une institution de microfinance partenaire au Sénégal, un collègue et moi avons rencontré deux des sujets les plus discutées sur le PPI : La méthode de collecte avec des avantages et des inconvénients associés, et l'attitude de l'organisation vis-à-vis du coût. 

Après une nuit sans sommeil infestée par le décalage horaire, Babacar Sambe, notre représentant régional en Afrique de l’Ouest et moi avons pris très tôt le matin la route de Thiès - Sénégal pour visiter la Direction Générale de CAURIE Microfinance. CAURIE est un partenaire du Catholic Relief Services (CRS), Mision II Afrique, Oikocredit, Terrafina Microfinance, et membre de l'APSFD Sénégal. Par sa relation avec ces réseaux, CAURIE participe en tant que réseau phare des deux institutions membres de l’initiative du Réseau Collaboratif des Utilisateurs du PPI en Afrique (PUCA).

CAURIE a accompli sa phase pilote du PPI dans la première moitié de 2010, et est prêt à commencer sa mise en œuvre cette année puisque son SIG, acquis auprès d’une entreprise togolaise PERFECT, a développé un module pour stocker les données du PPI. CAURIE a été assistée dans sa phase pilote par Absa Gueye, la coordonnatrice du Projet de Gestion des Performances Sociales à l’APSFD, Babacar et moi-même fournissant le conseil et l'appui nécessaire. Notre voyage était une occasion pour Babacar et moi d’avoir une large compréhension de l’approche de mise en œuvre proposée par CAURIE et de s’assurer que les responsables du projet en interne considéraient les avantages et inconvénients de la méthode d’échantillonnage qui était envisagé de suivre. Nous avions compris que CAURIE avait l’intention d’utiliser une approche par échantillonnage dans la mise en œuvre et nous avons voulu soulever quelques questions ;   l’échantillonnage est généralement plus compliqué comme le  reconnaissent les praticiens, particulièrement s’il y a un désir de suivre l'échantillon dans le temps pour mesurer le progrès des clients.

Nous avons rencontré André Youm, un des responsables de la Gestion des Performances Sociales de  CAURIE (aussi Directeur des Opérations). Comme nous commencions notre discussion autour de l'approche par échantillonnage décrite dans le plan d'action élaboré, André a sauté sur deux questions qui compliqueraient l'échantillonnage, tel que : ce qui va arriver dans le temps par rapport à la représentativité de l'échantillon si des changements surviennent dans l'institution ? – exemple l'ouverture de nouvelles agences - des abandons ou sorties des clients ? J'ai souri et j’ai dit « exactement ! » Nous étions là pour nous assurer que CAURIE avait compris à partir de l'étape de planification de l’approche de mise en œuvre qui change selon l’institution ou l'échantillon lui-même pourrait limiter la manière dont les données sont utilisées et ce qu’elles représentent.

Pendant que l’on discutait les implications opérationnelles d'une approche par échantillonnage, - devant organiser l'échantillon annuellement et mobiliser le personnel pour la collecte, André a expliqué cela pour cette raison, CAURIE prenait en compte un recensement limité dans l’application du PPI. Quand je me demandais s'il y avait un budget pour faire un recensement comme j'ai imaginé qu'il pourrait être légèrement plus couteux par rapport au budget initial créé pour l'approche par échantillonnage, il s'est arrêté, m’a regardé et me dit :

« nous voyons ceci comme un investissement, pas un coût. Nous investissons dans la Gestion des Performances Sociales (le PPI inclus) parce que nous croyons que nous verrons un retour sur notre investissement. »

encore une fois, j'ai dit : « exactement ! »

André se gratta la tète! Quand beaucoup de praticiens pensent à la Gestion de Performances Sociales, ils traduisent généralement les dépenses associées ou marginales en coûts perdus – les coûts engagés qui ne peuvent pas être récupérés et ayant un avantage fixe (le loyer par exemple). Mais je soutiendrai que les dépenses associées à la Gestion de Performances Sociales sont un investissement avec un potentiel de retour sous diverses formes.
En ce qui concerne le PPI, l'investissement est vraiment minime et le retour est potentiellement très élevé pour les institutions qui font la visite aux clients à domicile comme partie intégrante des procédures normales de travail, ont une bonne équipe de gestion de l'information (pour la gestion des données et le traitement), et la forte capacité existante de recherches. Les institutions qui manquent un peu de tout cela, auront besoin de réaliser un plus grand investissement dans leur capacité interne pour obtenir le plus de l’utilisation du PPI. Par conséquent, de telles institutions peuvent avoir un plus petit retour dans les premières années, mais auront le potentiel pour de plus grands retours dans les années suivantes. 

*L’APSFD Sénégal est l'association phare, partenaire de CRS / Mision II Afrique.

Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.

Last August, my colleague Babacar Sambe and I set out in earnest to plan Grameen Foundation’s first deployments of the Progress out of Poverty Index (PPI) in Sub-Saharan Africa (SSA). After analyzing the landscape, considering budget constraints and the location of local GF staff, we decided to begin our first efforts in Mali and Senegal. Rather than go it alone, we reached out to other international NGOs that support poverty-focused microfinance institutions (MFIs). And to round out our collaborative group, we invited other important locally based constituents-- namely a microfinance rating agency and the national associations of both countries. Our group of PPI supporters was formally branded the PPI Users Collaborative in Africa, otherwise known as PUCA (pronounced PUCK –a). PUCA includes Catholic Relief Services, Grameen Foundation, Oikocredit, Terrafina Microfinance, Planet Rating, and the national associations – APSFD Senegal and APSFD Mali.

Our intent was to go slow and steady – selecting the right MFI partners, training local staff and consultants, and engaging the national associations strategically as we moved along. We formally began our journey together in February of this year with three MFI partners of the international NGOs – two from Senegal and one from Mali – that are committed to managing their social as well as financial performance. Of the three, two have their completed pilots and one is very well-positioned to start its implementation.

Beyond working with these three partners, PUCA has expanded the number of local staff and consultants trained in both countries. At the beginning of 2010, there were five local PPI trainers across the two countries, and now there are 11. We pushed beyond the early boundaries we’d set for ourselves – hosting trainings in Mali and Senegal – by supporting APSFD Senegal’s trainer, Absa Gueye, in her first PPI training in English outside of her homeland. This event made APSFD Senegal the very first national association in the world to offer a retail-priced PPI training outside of its borders.

At the start of the year, Senegal was the only country in SSA to have had a GF-led PPI training. Six months later, a total of four trainings have been held in both countries – two in Senegal and two in Mali. Each collaborative member of PUCA now has staff with good knowledge of the PPI and their training capacities are still being strengthened. The PPI has been introduced to a total of 7 MFIs. Of the four that are not currently a part of PUCA, three have expressed interest in piloting the tool and preparations are being made to work with these institutions in the coming months.

It feels like PUCA has been around for a long time, but as I sit here and count I realize it’s only been 11 months since our formal launch and a year since all members committed to its creation. Are we moving too slowly or is 11 months a long period of time? We had expected that our three original MFI collaborators would be in the process of completing their implementation strategies by now, but things have moved more slowly than anticipated, largely due to unforeseen personal tragedies and a few life-changing blessings affecting SPM project leads. As life events arise, we’re reminded that there is only so much planning that can be done. So, in those moments, we’ve taken deep breaths and provided emotional support to our colleagues.

As I think about the ecosystem we’re trying to build, I ask myself, “Have we gained enough traction and interest this year? Have we built out a sufficient support network for both MFI users and trainers?” I think the jury is still out. Using the PPI is a process and it is as much about managing change as it is about assessing poverty outreach and measuring improvement in clients’ lives. So perhaps the next year will be more telling for PUCA as we wrap up our initial implementations and begin work with a new batch of MFIs. We’ll see if the slow-and-steady approach does in fact win the race.

Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.