Typical challenges
What typical challenges do MFIs face when adapting MIS for SPM?
As SEF’s story shows (see beginning of chapter) the real challenges around MIS and social performance often involve the need to use information effectively. Other challenges typically faced by MFIs include:
- Data overload.MFIs need to balance having too little data with having too much.
- Unreliable data. The data collected to track social performance is often unreliable or incomplete, and therefore insufficient to draw conclusions. This is often a human resources issue. The quality of data collected on loan application forms may be suspect, due the client or the loan officer distorting the information (for instance, by overestimating client income).
- Staff capacity to collate and analyse data. In many cases, MFIs will need to hire staff with strong analytical abilities and/or provide detailed training on how to conduct analysis. Think through how the data will be collated and analysed, to make sure that it is meaningful and compiled in a way that will be useful for the subsequent analysis.
- Off-the-shelf versus customised, ‘in-house’ technology.MFIs who acquire pre-packaged platforms may find that the technology falls short of their needs, which means they have to spend even more time and money making adjustments. ‘In-house’ technology can be ideal, but can require significant upfront and ongoing costs that involve external consultants and internal specialists.
How can you overcome these challenges?
Just get started!Don’t wait for industry experts and forums to debate and agree on standard social indicators and other social performance measures. As long as you have done the necessary preparation, you should be able to choose indicators that enable you to fulfil your mission, while making use of the reference material available from the SPTF and other resources.
Accept that making mistakes (and learning from them) is part of the process.
SPM, especially in terms of information systems, needs to be a highly iterative process, and errors will occur. What is important is that the organisation learns from those mistakes and adapts as needed. Pilot testing will allow you to make mistakes while not adversely affecting the organisation’s entire operations.
Use what you have.Using technology and systems already in place will help to avoid high hardware/software and consulting costs, as well as training and other demands on staff time.
Prioritise what data you want to collect and keep it as simple as possible. When starting out, you may want to track and analyse just a few indicators (3–5). Smaller or less well established MFIs may find it easier to adapt their MIS to meet SPM demands; however, they often have limited financial and human resources, and might need to add them gradually.
ASHI simplifies its MIS
After conducting a social audit using MFC’s Quality Audit Tool, ASHI (Philippines) found that it was collecting significant amounts of data that were rarely used in decision-making or general reporting. Staff members were especially concerned, given the amount of time this took.
Using Grameen Foundation’s process mapping tool, ASHI was able to identify critical steps to ensure the data they did need were included in the MIS, eliminating data points that were redundant or unnecessary. ASHI now tracks just under 10 social indicators, collected on one simple ‘business rating sheet’, and is now able to enter the data consistently after every loan cycle.
Improve data quality through communication, training and internal control.Clear and effective communication will help you achieve staff buy-in. This will in turn facilitate client buy-in and ensure important feedback flow to management. Human resources’ recruitment and training efforts can help ensure that staff members know how to collect and analyse data correctly, and why they are collecting it. Finally, internal control mechanisms will help you to verify the quality of data entered, and flag important issues related to data quality.