Information analysis and communication

Grameen Foundation
Cris Lomboy
July 30, 2010, Davao City, Philippines
Creating a World
WITHOUT
POVERTY
 Our Global Reach
Headquarters: Washington, DC Regional offices planned for Asia and sub-Saharan
Grameen Technology Center: Seattle, WA Africa

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GF Programs

Social
Performance
Management
Center
Solutions Capital
for the Management &
Advisory
Poorest
Center

Human
Capital Grameen
Center Technology
Center

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 What is the Progress out of Poverty Index (PPI)?

An objective client poverty assessment and targeting

tool, which:
– Provides social performance data (depth of poverty)
– Enables MFIs to manage social performance (monitoring,
measurement, client responsiveness – product design, program
efficiency, etc.)

An inexpensive and easy to collect scorecard

– Derived from representative national household income and
expenditure surveys
– Comprised of simple, non-financial indicators

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 PPI within SPM Context

• By tracking poverty levels against other client data,

an MFI can make key decisions about its mission and
how to carry it out

• Managing social performance is based on

– 1) setting clear social goals and objectives
– 2) collecting information to monitor progress towards these
objectives
– 3) using information to improve operational and strategic decision-
making.

• PPI should therefore be thought of as a powerful tool

that helps advance an organization’s mission within a
larger social performance management system.
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Grameen Foundation

SOCIAL PERFORMANCE
INTEGRATION: MIS

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 It BEGINS with the END in mind..

P
P
I

• Goals
• System use
• Objectives
• Service delivery
• Range of products and Mission
• Human resources
services Statement

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Grameen Foundation

BASIC SP INFO FROM PPI -

INDIA

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 Poverty information and segmentation

Average Average
Number of Average
Loan Cycle below National
Clients $2/day
$1/day Poverty Line

1 86,922 25.76% 17.13% 79.36%

2 22,154 19.52% 13.27% 74.10%
3 15,633 15.95% 11.23% 70.24%
4 11,345 14.14% 10.20% 68.71%
5 3,728 16.84% 11.70% 72.00%
6 1,578 19.70% 13.24% 77.21%
7 544 24.29% 15.71% 81.82%
8 149 20.87% 13.89% 79.74%
9 62 16.34% 11.63% 72.03%
10 21 10.61% 8.57% 66.09%
Grand Total 142,136 22.46% 15.13% 76.47%
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Grameen Foundation

PPI INFORMATION USE –

FONKOZE, HAITI

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 PPI Use: Market and product fit

Verifying Targeting: Poverty Scores by Program 2008

New Solidarity Loan

Small Loan Program

Program for Ultra Poor

 PPI Use: Tracking poverty movement

Average Percentage Percentage

Loan Size below below
$1/day $2/day
poverty line poverty line
Baseline
Client $75 53% 71%
Sample in
2006
Follow-up of
client $240 46% 62%
sample
in 2008
 PPI Use: Tracking poverty changes

2008 Report – Program for Ultra Poor

% of clients living
under $1/day
Program Start 90%
Program Mid-Point 84%
Program End 70%
 PPI use on Program evaluation

New and drop living under living under

out-clients $1/day $2/day

Exit Solidarity 54% 69%

Clients 2008

Incoming Solidarity 51% 66%

Clients 2008
Grameen Foundation

BUSINESS ANALYSIS – PT
RUMA INDONESIA

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PPI and Client Retention

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Client’s PPI and Business Productivity

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PPI and Client Performance Comparison

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 .. Resulting to SPM Integration

• Goals
• System use
• Objectives
• Service delivery
• Range of products and
• Human resources
services

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 Communicating SP results

• Investor / donor – social rating, due diligence

assessments, performance reports

• Board of Directors – management reports, social

rating report

• Management – research department reports

• Middle management and staff – very little or none at

all

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 Contact Information

• Cristopher Lomboy, Asia PPI Specialist

• clomboy@grameenfoundation.org

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