Get documents about "SIM 20project 20document v0 35 20final 20280508
Document Sample
Social Impact Measurement
Project Document
Results of a pilot project to develop a tool for
measuring social impact of microfinance
April 2008
SIM Pilot Project, INAFI INTERNATIONAL FOUNDATION, Dakar Head office - Senegal.
11 rue MZ-57, Dakar, PB 374, Dakar - Fann, Senegal, WEST AFRICA
Tel: (+221 33) 860 42 22 Fax: (+221 33) 860 42 23 Email: sim@inafiinternational.org
www.sim-inafi.org
SIM Project Final Report Page 1 /18
Document Contents
Introduction ............................................................................................................................................................ 3
Project Objectives .................................................................................................................................................. 3
Process overview................................................................................................................................................... 4
Mapping of Impact Measurements Experience ..................................................................................................... 6
SIM Background Document ............................................................................................................................... 8
Indicators and Performance Indicators .............................................................................................................. 8
Questionnaire ..................................................................................................................................................... 8
Interview Guide .................................................................................................................................................. 8
Results of Pre-test of Questionnaire ...................................................................................................................... 8
Data collection experience on Indicators: Field Test.......................................................................................... 9
SIM tool System Test: Functionality testing ..................................................................................................... 10
SIM Tool Prototype Design .............................................................................................................................. 10
Pilot MFI‟s IT Assessment and Categorization .................................................................................................... 10
Institutional Set-up and Implementation Procedure Development ................................................................... 11
MFI Implementation of SIM .............................................................................................................................. 12
User Manual Application .................................................................................................................................. 12
On-Line Data Submission Experience ................................................................................................................. 13
Feedback from 10 MFI‟s Involved In the Pilot Exercise ....................................................................................... 13
Experiences of the SIM pilot: Future Considerations ....................................................................................... 14
Future Direction of SIM after Pilot: From Pilot phase to Roll out phase .............................................................. 14
SIM Continuity Work beyond the Pilot Phase Plan .......................................................................................... 15
INAFI Vision for Roll-out of SIM ....................................................................................................................... 16
Recommendations of SIM Participants to INAFI International ............................................................................ 17
SIM Tool Further Work: The unfinished jobs.................................................................................................... 17
Recommendations for use of Current Version of the Tool ............................................................................... 18
SIM Toolkit ....................................................................................................................................................... 18
SIM Project Final Report Page 2 /18
Introduction
Microfinance is developing fast and rapidly spreading the world over with recent emphasis on performance
management and assessment of microfinance interventions. The microfinance industry has made great strides
in recent years in the transparency of its financial performance metrics. The development and use of common
financial indicators contributed immensely to the validation of the industry‟s performance as a development and
a poverty alleviation tool. Nevertheless, the industry has not yet achieved the same practices of increased
transparency with regard to social performance measurement standards.
Social well-being is a core global issue. Achieving and sustaining higher levels of well-being is a challenge for
individual persons, MFI‟s, national governments and international organisations world-wide. Various attempts
(as reflected by the many tools on offer) have been made to bridge the gap for microfinance reporting that
reflect mix of profit and social motivation in the microfinance industry. One such attempt over the last 2 years is
the INAFI SIM (Social Impact Measurement) project whose main focus has been impact measurement of the
social and poverty dimensions of microfinance.
This report is the final project document for the SIM pilot project, following the closure of the project by
December 2007. The SIM project started way back in 2005 as an 18 to 24 month project. SIM was launched
with support of OxfamNovib and Ordina in terms of funding and ICT knowledge contribution respectively. While
there is great emphasis on monitoring and assessing the impact of microfinance intervention in the industry, the
tools devised and used so far are still experimental. This anomaly results from lack of well developed social
standards. The SIM project provided the right opportunity for INAFI to develop and test a core set of social
indicators that can be used by the network as a common platform to allow assessment of impacts intended to
beneficiaries of microfinance services.
It is widely acknowledged that the purpose of development is to improve human well being. This is the same
purpose for microfinance around the world. Hence measures of social well-being levels are an integral part of
development process. These measures are increasingly being used to monitor and evaluate conditions of
beneficiaries of development programmes within MFI‟s and among countries. The number of indicators of
human well-being has increased tremendously in recent years, as well as methodologies for assessing
progress made. The SIM is part of the Social Performance/Impact Assessment tools (generally termed SPA
tools) that are under promotion in the microfinance industry. INAFI in collaboration with OxfamNovib and Ordina
through the SIM project have designed a tool that can be used to do assessment of impacts of MFI‟s‟ programs.
The recently developed INAFI-OxfamNovib and Ordina tool is intended to be useful for measuring the changes
happening in the lives of clients served by MFI‟s globally. INAFI believes that this tool will encourage many
MFI‟s to evaluate their programs and therefore be able to modify their program to achieve greater impacts of
their microfinance interventions. This report gives a synopsis of the initial version of the tool that portrays a
clear synthesis of all the levels of technological advancement existing in the microfinance industry. This
research and development project has managed to cut through a structured approach for doing impact
assessment across a range of resources. And we believe any MFI can now in fact do an impact survey,
whatever the level of advancement in ICT technology within that particular MFI.
This project document therefore seeks to bring an understanding on the SIM project, its achievements, the
approach used, how the measurement tool was developed as well as brings clarity to how the SIM tool can be
implemented by microfinance institutions of all types. The report also provides a synthesis of the key SIM
Toolkit manuals for individual MFI adaptation, and makes recommendations for any future work (Follow-on
Action Recommendations) on the tool. Although the design process is over, there are a number of adjustments
still remaining to position the tool and make it fully integrated in day-to-day workings of MFI‟s. It is also the
purpose of this project document to describe the extent to which the objectives or aims set out in the Project
Initiation Document have been met during the last 2 years. The document also captures lessons resulting from
the project execution. Lastly, it‟s the objective of this Project document to highlight recommendations and
prepare input to the Project Steering committee so as to confirm to the participating MFI organizations that the
SIM project having wrapped up its initial activities in December 2007 can now close.
Project Objectives
The primary purpose of the SIM project was to advance a “social score” and/or social impact assessment tool
that in the end would be useful in assessing the outcome and impact of microfinance programmes. Most, if not
all MFI‟s have a social mission or a promise to the poor they serve. It is no coincidence, that many of the
SIM Project Final Report Page 3 /18
indicators used in the SIM tool have been motivated by the recognition that income-based measures1 (or
financial indicators), which have for many decades dominated assessments for MFI‟s, do not adequately
capture social dimensions and poverty related indicators. Thus the SIM project emphasized the design of a tool
to generate social data that can provide statistical information on the changes arising in the lives of clients as a
result of microfinance intervention.
The broad goals of SIM are to increase awareness of good impact assessment methodology, and publish
learning as well as encourage use by MFI practitioners and compare results among each others. SIM will give
MFI‟s a better way of demonstrating results of microfinance programs. The specific objectives of the SIM
project are:
a) To define a set of social indicators that reflect and embody the social goals and objectives in
microfinance and that upon data collection will tell the extent to which those goals are being
achieved.
b) To develop a survey tool for collecting social impact data using a small group of MFI‟s before
widened usage among a larger number of INAFI network institutions, as well as the microfinance
sector as a whole.
c) To develop a mechanism for social performance benchmarking that allows INAFI as a network to
monitor and work towards continuous improvement - both in terms of performance within
members as well as ensuring improved client level impact for better practice of microfinance;
d) To initiate team work among the development partners and participating MFI‟s that furthers social
motive for microfinance practitioners.
The SIM tool will be useful for MFI‟s that seek to demonstrate their ability to improve social and poverty
conditions of their clients through microfinance. The following is the justification for the project:
1. It will provide a system of measurement and reporting of social performance in discrete units. And
motivate the sector to place greater emphasis on balancing sustainability with a social mandate.
2. SIM Impact measurements will help to optimize on the practice of microfinance for MFI implementing
tool. SIM will bring out insights about what is happening in client lives. This will help in design of
operations of practitioner organizations to maximize on social impact and poverty alleviation.
3. The SIM tool also aims to guide policies and practices as well as draw the attention of donors and
MFI‟s on the importance of social performance. The tool is expected to bring more accountability on
microfinance practitioners as managers will be under pressure to show results for what they are set
up to do.
4. Results of impacts on the microfinance program will help MFI‟s understand casual relationships and
therefore insight on how to design effective interventions. The SIM tool will be useful for MFI CEOs
who need to identify and solve program problems quickly.
5. Donors, development partners and policy makers will also gain insight into what works and what does
not. Development partners will be well guided in knowing the outcomes or impacts of interventions
they support. The SIM tool aims to guide donor policies in assessing the social value of different
investment choices and microfinance practices.
6. Impact results will help in better allocation of funds and more effective development. This will further
increase transparency and accountability for microfinance development
7. The SIM methodology presents a practitioner lead, easy to use system of collecting and submitting
social data. Unlike other impact measurement tools, SIM is meant to be integrated in the reporting
system of MFI‟s.
8. SIM results obtained at various levels will be used by INAFI to understand the trends in the sector on
poverty dimensions, for better policy decisions on program design and advocacy. Use of the tool is
also expected to facilitate performance comparability and peer ranking.
9. The data collected can also be used for elaborate study by other research institutions and universities
to investigate trends and correlations.
Process overview
Virtually every developing nation in the world, from Africa to Latin America and from East to South Asia and
even the newly developed countries of Eastern Europe have been influenced by some program related to
microfinance. This section provides insights into how the INAFI SIM project tried to match global trends and
come up with probably, a better measurement process for impact assessment. We address the work done, how
1
The best known and most widely used income poverty measure is the headcount, typically defined as the number or proportion of
the national population whose income falls below the chosen poverty line. A headcount measure of extreme income poverty, used to
track progress towards the MDG poverty target, is the number of people living on less than one US$ PPP per day.
SIM Project Final Report Page 4 /18
and processes associated with the latest INAFI rebound project on social impact analysis. SIM brought together
a methodology that is able to address social changes and questions. The SIM alternative way, now revealed is
an important concept for all development microfinance practitioners. The SIM approach examines in a practical
way how to do impact measurement while carrying on normal operations of an MFI. It departs from the
traditional, theoretical approaches of doing impact measurement that are known to be very costly and difficult to
do.
The SIM project sought to identify and define a set of standard indicators that measure and assess the
contribution of microfinance to social changes in the lives of people living in poverty. The SIM objectives were
achieved by combining research approaches, analysis, lateral learning (roundtable discussions, conferences,
workshops and e-communication), and household survey tests by the pilot MFI‟s). The project aimed to
emphasize a participatory approach, building partnership with the main beneficiaries namely INAFI network and
practitioner members. Before the inception phase a proposal was developed that outlined the execution
process. Among the key steps was the fact that INAFI was to bring in 10 practitioners who were to participate in
the design, development and pilot implementation of the project. The selection materialized into: 3 Latin
American MFI‟s, 3 African MFI‟s and 4 Asia region MFI‟s. Each of the three Partners appointed a Coordinator to
the project. In addition, INAFI appointed an IT officer to assist with ICT issues with the MFI‟s. More information
on the 3 project partners‟ appointees and MFI representatives can be found in earlier SIM reports.
A steering Committee for the Project was established that was to oversee the management for the same. This
was composed of the Executive Directors of Ordina, OxfamNovib and INAFI International. A mapping study on
impact assessments experience in microfinance industry was commissioned before formally launching the
project. By June 2006, the project was kicked-off with the first workshop In Madurai, India. This workshop set
the phase for the design and development of the SIM tool. It served as a unifying meeting as well as an
opportunity to meet together for the group to reconfirm the goals and purpose for the project. The same forum
was used to review the outcome of the mapping study and use existing knowledge in determining broadly the
main social dimension for the action research.
The steering Committee meeting in August 2006 signed an agreement of co-operation MOU (memorandum of
understanding) between the 3 partners and established some ground rules. Under the MOU INAFI International
has acted as the overall project manager and ultimately becomes the owner of the project output- the SIM tool.
Henceforth, the SIM project has followed an enquiry, interactive process in trying to get things done. INAFI
member institutions participating in the project had prior experience with impact measurement. This was very
valuable in sharing ideas and exchanging knowledge to find a common or standard practice from these INAFI
affiliates. The development team also used external experience on the subject of impact measurement to
validate and cross-check the agreed ideas on the tool. The round table discussions by the whole team were
backed by Coordinators meeting that served to refine the ideas developed by the group. As well, other relevant
forums were used to beep up the ideas on the table and expand knowledge. Two meetings are worthy noting:
the Microcredit summit forum in Halifax, Canada and Paris Task force meeting for Social performance (CGAP).
The SIM project team managed to define a core set of measurable indicators, which are within the framework of
MDG‟s. These indicators were subsequently tested by the entire pilot MFI‟s, refined and later used to design a
survey instrument for application by MFI‟s. The current SIM pilot tool uses a variety of both qualitative and
quantitative research methods that measure changes experienced by clients in different social parameters
since joining a microfinance program or MFI. The SIM tool captures information in 5 social dimensions, namely:
Wealth, Social Welfare, Empowerment of Women, Social Capital, and Environment.
The project has designed 3 versions of a survey instrument tailored to collecting data suitable for impact
assessment of microfinance operations. The three versions are; a paper questionnaire, off-line and on-line
versions. The process is such that data on identified indicators would be collected through an internet based
on-line system and submitted to a central server for on-going measurement of social impact by individual MFI‟s.
The SIM data collection and reporting system (SIM Tool) aims to guide policies and practices as well as draw
the attention of donors and MFI‟s on the importance of social performance monitoring at the institutional level.
The system when fully functional is supposed to allow for reporting of social impact of (INAFI aligned) MFI‟s.
Every (so often) year, INAFI intends to report from the social impact data collected by „registered‟ (both INAFI
members and other counterpart) MFI‟s conducting impact measurements on households through the system
that have accessed loans in previous periods. The impact surveys based on the SIM questionnaire will include
a self-response initiative by INAFI member (MFI‟s) to implement the comprehensive social impact SIM toolkit
online survey.
SIM Project Final Report Page 5 /18
Mapping of Impact Measurements Experience
At the start of the SIM project a mapping of existing experience in the field of social performance was done. A
detailed report is available at INAFI resource centre on social impact experiences in the industry. The report
shows that the last several years have witnessed an increase in the number and variety of social performance
measurement/assessment tools (SPA) developed to assess social performance both inside and outside the
microfinance sector. The good thing about this trend is that industry stakeholders now have a choice among a
set of practical tools. The number and variety are such that there now arguably exists a suitable SPA tool for
just about every MFI, regardless of size, organizational type, business model, commercial orientation, target
market, or mission. The downside of the trend is that there is perhaps too much choice! However,
understanding the purpose, what they measure and how, relative strengths and weaknesses, and the suitability
of the myriad of SPA tools, is the most important thing in deciding among them. The following examples are
worthy noting:
The reports of UN agencies, most notably UNDP‟s Human Development Reports, UNICEF‟s State of the
World’s Children and UNESCO‟s Global Monitoring Report, go some way to providing the information from
which national progress on EFA (Education for All) could be assessed, but with serious limitations with the data.
Amongst these are problems about what it measures, the quality of data, and how accountable these measures
and data are. Yet, despite these problems, when the indicators for the Millennium Development Goals (MDG‟s)
were set, two very limited indicators of gender and schooling were selected – gender parity in education (that is
equal numbers of boys and girls in any phase of education) was one of the indicators associated with MDG3 on
women‟s empowerment. The indicators selected for MDG 2 on universal primary education (UPE) concerned
all girls and boys enrolling in primary school and completing grade 5 (UNESCO 2003:284-292).
The CERISE SPI tool assesses the social performance of institutions by evaluating their intentions and actions.
An analysis of internal systems and organizational processes determines whether institutions have the means
in place to attain their social objectives. It uses a questionnaire that can be self administered by the MFI or used
with an external reviewer. The questionnaire evaluates four dimensions of social performance: (1) outreach to
the poor and excluded populations, (2) adaptation of products and services for target clients, (3) improvement
in social and political capital, and (4) corporate social responsibility.
The ACCION social diagnostic tool is a framework through which to assess social performance in order to
evaluate the success of the MFI in fulfilling its social mission and contributing to broadly accepted social goals.
This specialized framework for evaluating microfinance institutions is based on existing mainstream tools that
assess social performance as well as surveys on the information demands and practices of socially responsible
investors. SOCIAL (social mission, outreach, client service, information transparency and consumer protection,
association with the community, labor climate) offers a comprehensive social assessment of the MFI to
complement the financial assessment provided by the CAMEL (ACCION‟s tool to measure capital adequacy,
asset quality, management, earnings, and liquidity of microfinance institutions).
The Environmental & Social Risk Audit is a practical and easy-to-use risk management system designed to
help MFI‟s minimize the negative environmental and social impacts of the micro enterprises they support.
Designed by FMO, a Netherlands (Dutch) Development Finance Company, the ESRA includes support tools, a
course, and internet support to help MFI‟s build an environmental and social (E&S) risk management system.
Implementation of the tool occurs during the loan appraisal phase in which the MFI determines whether a loan
will be granted. In addition to the traditional factors considered in the loan decision, the ESRA injects social and
environmental considerations into the loan decision process.
The USAID social audit tool uses a “process auditing” approach to assess social performance that evaluates
the MFI in reference to its stated social mission. It answers the following question: To what degree do the
internal processes promote fulfillment, or lack of fulfillment, of the MFI‟s stated social mission? Process
auditing involves an in-depth assessment of six internal processes critical to the MFI‟s social performance: (1)
mission statement and management leadership, (2) hiring and training, (3) incentive systems, (4) monitoring
systems, (5) customer service, and (6) strategic planning.
„Empowerment‟ is the combined enhancement and exercise of decision-making power and influence over
strategic life-choices and barriers to agency or well-being freedom (Narayan D. 2005). MFI‟s engage in building
and developing their clients so that they are financially empowered, can take leadership in their fields and gain
certain capacities that have value for them. They become dependable in society and not only spread their own
ideas and influence, but also are relied on to reinforce the building blocks of the social sector.
The GRI is the world‟s most widely used sustainability (social performance) reporting framework. The
framework sets out principles for reporting on social performance and indicators that organizations can use to
SIM Project Final Report Page 6 /18
measure and report their economic, environmental, and social performance. Indicators include both core and
optional indicators in six dimensions of social performance designed to apply generally to all types of
organizations. The six dimensions are; environment, human rights, labour practice and decent work, society,
product responsibility, and economic impact.
The USAID/IRIS Poverty Assessment Tool is a set of country-specific surveys developed to predict the
incidence of extreme poverty within a group of people (the percentage of respondents that are “very poor” or
“not very poor.”) A household is considered to be very poor if falls among the bottom 50% of those below a
country‟s national poverty line or if lies below the international extreme poverty line of $1 in daily per capita
expenditures (adjusted for purchasing power parities, or PPPs). The extreme poverty line used for a particular
country is that which includes the most extremely poor persons. The surveys include approximately 15 to 25
poverty indicators derived from national household surveys. The tools make poverty calculations based on an
aggregate group of people but are much less accurate (and not designed) for measuring poverty on an
individual basis.
The SEEP/AIMS tools are a set five of “practitioner friendly” client assessment tools developed for microfinance
practitioners. They include the (1) impact survey, (2) client exit survey, (3) use of loans, profits, and savings
over time tool, (4) client satisfaction tool, and (5) client empowerment tool. Accompanying the tools are step-
by-step instructions for using them, starting with initial preparations and ending with data analysis. A manual,
Learning from Clients: Assessment Tools for Microfinance Practitioners, was developed by the SEEP Network
and is available at no cost for all users. Created by and for practitioners, the tools were designed to respond to
the particular needs and challenges microfinance practitioners face in determining how their programs and
services are affecting their clients. Despite practitioner focus, the SEEP tools are still quite expensive and
require technical skills not possessed by all MFI‟s. It is difficult to coordinate with management‟s decision-
making cycle and produces long, detailed reports often without clear implications for MFI management. The
approach is prone to selection bias due to sampling design while validity of new clients as control group is
questionable.
The UNDP data2 on social indicators are now widely published, often for large country samples. Specific
indicators include life expectancy, child mortality, access to health services, access to water, access to
sanitation, infant mortality, calorie intake, literacy, years of schooling, and school enrolment ratios. While some
of these indicators reflect the progress countries are making towards attaining fundamental well-being or
developmental goals, others act primarily as intermediate indicators of progress. These wide ranges of
variables and ratios are documented for 177 countries. Most of the widely used social indicators are based on
information obtained from national censuses and have concerns regarding reliability and comparability.
Because microfinance development programs occur in human settings; stakeholders - Donors, Communities,
MFI‟s, Environment, and Businesses - are compelled to ensure that the benefits of any poverty initiated
program are maximized while the negative risks are minimized. Measuring achievement in client‟s lives means
implementing tools which monitor and evaluate the ongoing effects of a development project on the social and
cultural lives of the impacted populace.
The SIM team has gone through mind bogging issues to show how to measure progress in poor peoples‟ lives
after consuming microfinance products. The SIM tool tries to answer questions like, „Does anything happen to
microfinance clients‟ social well being? And can we notice changes in their lives, and what kind of changes in
social parameters is produced by MFI activities? The SIM research frame is such that after identification of core
social indicators the project has developed a comprehensive SIM data collection instrument which, amongst
other things, will help to capture, and disseminate information for sound assessment of social impacts in
microfinance.
SIM is an accessible web-based easy to use tool and is a first introduction to social impact assessment that is
grounded in the grassroots operations of MFI‟s. It takes a short time (about 15 minutes) to administer the
questionnaire. In addition INAFI is providing manuals and frameworks that are generously illustrated with
experience drawn variously from Latin America, Africa and the Asia regions. These guides address all
circumstances any MFI may find itself in, and thus empowers simple loan officers to undertake a relatively
rigorous impact survey while carrying on normal operations of an MFI. This approach is unique because it
seeks to prioritize application over theory.
What is missing in microfinance research is sound methodology for linking the many descriptive models of
microfinance intervention with well meaning and publicized impacts of those programs. The big question these
2
Source: ‘Measuring Human Well-being: Key Findings and Policy Lessons’
By: Mark McGillivray and Farhad Noorbakhsh of WIDER/UN. Details on www.wider.unu.edu
SIM Project Final Report Page 7 /18
days is, how do we measure social changes in the lives of MFI clients in an on-going basis in stead of making
just a „Kodak-moment‟? What tool do we use to assess progress in targeted impacts and results for engaging in
microfinance in the first place? This is the gap this SIM research seeks to reduce by establishing a legitimate
data collection instrument for evaluating impacts of microfinance programs. The main emphasis of current
methodology is social dimensions of poverty.
Of course, no organizational behavioral model of this type can be empirically tested without such an instrument
to collect necessary organizational data for a clear proof. The on-line SIM survey instrument, along with the
proposed theoretical underpinnings, is based on some definitions of what SIM intents to test, i.e. a baseline
definition of Social impact. Given the variety of SPA/IA tools, ultimately, the model/tool that establishes
significant links between social performance measures and typical microfinance activities will provide the best
definition for social impact. This will solve the scarcity of foundational research establishing causal relationships
between microfinance programs activities and performance results (outcomes and impacts), the reliance on
subjective data, and the limitations of statistical analysis techniques in answering important social changes and
questions.
SIM Background Document
During the pilot phase of the SIM project a theoretical background paper was written to clarify the objectives,
assumptions and choices for dimensions, indicators, performance indicators, procedures and tools for data
collection and analysis. The background paper was updated after the field test and modifications in
performance indicators.
Indicators and Performance Indicators
The SIM pilot project developed indicators and performance indicators to measure changes in the lives of MFI-
clients as related to the 5 dimensions agreed by the project participants. The list of indicators forms the basis
for the questionnaire and the reporting-analysis tool. The list of dimensions, indicators and performance
indicators was finalized by end of pilot project.
Questionnaire V1.02
The questionnaire was developed by the SIM project to enable loan officers to collect data needed for each of
the performance indicators. The questionnaire was tested twice by the participating MFI‟s, discussed in
subsequent workshops and modified after each test. After the 4th workshop in Manila, the questionnaire was
finalized. The revised questionnaire will be incorporated in the final version of the online and off line version of
the data capturing tool. In order to make sure that MFI‟s working with the paper version of the SIM
questionnaire are using the same version, this questionnaire can be downloaded from the online tool (www.sim-
inafi.org). This Questionnaire V1.02 is to be regarded as the official version. In case of any modifications in the
future, users of SIM will have access to the latest version in this way.
Interview Guide V1.02
An interview guide with clear explanations and instructions on how to conduct interviews on the SIM
questionnaire is to accompany each questionnaire. The latest copy is aligned to the SIM Questionnaire V1.02
and this will be updated if an upgrade of INAFI-SIM Questionnaire V1.02 is done.
Results of Pre-test of Questionnaire
The SIM team agreed on a set of indicators that were common to the three regions: Africa, Latin America and
Asian MFI‟s. A questionnaire based on the social indicators was drafted by the coordinators, discussed in round
table meetings by the whole group and field tested between March/April 2007 by the entire 10 pilot MFI‟s. Each
MFI sampled a minimum of 20 clients as respondents forming in total about 200 filled questionnaires. The
questionnaire contained 42 question items with some general information about the respondent. The SIM
questionnaire aims to capture primary data in a variety of both qualitative and quantitative questions that
measure changes experienced by clients in agreed SIM social parameters. The results of filled test
SIM Project Final Report Page 8 /18
questionnaires were presented in the Benin workshop and provided feedback for improved design: construction
of the questions and relevance of the data, etc.
Information on shared experiences from the 3 regions on field testing with over 200 respondents on the SIM
questionnaire was reported. The findings informed on how to practically make the tool work with microfinance
clients. An internet based system was also thoroughly analyzed and lead to development of procedures for
undertaking the SIM survey on-line. The final questionnaire after update and quality checking was made
available in the three languages: French, English and Spanish.
Data collection experience on Indicators: Field Test
The first attempts of identifying social indicators lead to a set of 25. This was at the Managua workshop, in
Nicaragua. The Coordinators went through the list of 25 indicators and passed some improvements in the
Dakar meeting. The main task was to define the performance indicators clearly, and come up with relevant
questions to be asked to clients. The team also defined the measurement scales for each indicator and/or
question. Further work was done on the indicators before the Benin workshop in May 2007 as follows:
Circulation of the questionnaire to all MFI‟s for field testing on data collection and reporting of
experience by each MFI (until March 15, 2007). As per the instructions, each MFI was to collect data
based on the questionnaire for at least 20 clients/households. The date for start of field testing was
April to May 1, 2007. A report of findings was prepared and presented in the Benin workshop.
The workshop heard from each member of the pilot group on their experience with the field test of the
questionnaire. A number of comments were raised on some questions and measures. A diagnosis of the issues
shows that three kinds of observations were common:
a. Issues that deal with the general conduct of the survey.
b. Issues that indicate questions where more explanation was demanded for good understanding of the
question and data required.
c. Issues that deal with the measurement scale applied for specific questions.
Upon deliberations, the questionnaire was redesigned and questions reformulated to take care of the issues
raised. More response options were provided in the new questionnaire as well. The reformulated draft was to
be sent for checking and quality control for French translation and Spanish translation. Some people were
nominated to recheck and affirm good translation as well as validate the content. In the end, the questionnaire
was redesigned and improved for easy administration.
A secondary output of the field test and improvement to the questionnaire was the determination of general
principles for conducting the SIM impact survey. The following are the general guidelines for data collection:
1. SIM questions will be asked by the MFI staff, who are in regular contact with the clients, in accordance
with the MFI‟s own procedures and in the same conditions and places where normally contact takes
place between the MFI and its clients.
2. The SIM questions will be asked at the beginning and at the end of the loan, and if the period between
these is longer than 12 months the questions should be asked in any case every 12 months.
3. SIM questions will be asked to borrowers, whereas a borrower is defined as a person, who has been
assessed as eligible for a loan from the MFI and is about to receive a first loan or has already received
a loan, which is not yet fully repaid. The MFI staff asking the SIM questions will receive proper
instructions and training by the MFI based on the SIM theoretical framework and list of dimensions,
indicators with their clarifications, on:
the purpose of the SIM questionnaire
the importance of reliable answers rather than socially desirable/positive answers (added as
indicator 11 to the list)
the importance of building up trust and rapport with the borrowers, ensuring that borrowers provide
reliable answers
the meaning of each question and its explanation in the respective context, ensuring that there are
no subjective interpretations by the MFI staff asking the questions (needs to be written after
Cotonou and translated)
the time when the questions need to be asked
5. All questions will be asked to all borrowers
6. Questions referring to an existing loan refer to the most recent loan obtained from this MFI.
SIM Project Final Report Page 9 /18
7. Questions may be translated into local language and explained within the cultural setting, but the
meaning of the questions will not be changed. Translation to local languages should be verified by
INAFI regional office and can be integrated within the SIM online tool easily.
8. No answer categories will be added to any question.
9. In case of difficulties to access the internet, the MFI makes use of the offline version and makes
arrangements for uploading in the online version.
SIM tool System Test: Functionality testing
The SIM questionnaire was used to design a database that would capture the responses for the various
questions asked during the survey. Ordina built a database and put the questionnaire on the web which then
became the on-line tool. The Cotonou, Benin workshop provided the opportunity for all pilot participants to
practice with the on-line tool. Thus all MFI‟s tested the functioning of the tool, and assessed a number of things
that led to suggestions for improvement by the group.
The input from all the presenting groups was shared with all. On-line tool modifications and improvements were
discussed and incorporated in the design of the tool by Ordina. Sample reports were presented by Ordina for
review by the workshop. Upon assessing the participants concluded that all were suitable for reporting the
outcomes of the SIM data collected at the MFI level. However a number of things were yet to be determined on
the software and analysis to be done on the data as per the indicators. Further discussions were found
necessary to iron out and standardize a common reporting structure. This was slotted for a later date during the
4th workshop. A small group composing of two MFI‟s, MBT of Zambia and GDS of India was formed to work on
the reporting framework and report their findings.
It was also decided that all MFI‟s should work with the tool up till the 31 July, 2007 a time when the database
will be flushed, to create room for the pilot. To practice with the on-line tool the logon address is, www.sim-
inafi.org. Each MFI was allocated a log in code for this purpose.
SIM Tool Prototype Design
The SIM tool design and development underwent a number of phases as follows:
• A high level architecture of the tool
• Overview design of the SIM tool
• Data capture tool
• Functional design of the tool
• Selecting reporting interface
• Building of the prototype and unit testing, etc
Considering the process as a painstaking one, and at times a going back process for feedback, the tool building
took a lot of turns and discussions before the current version was arrived at. The first concept captured MFI
level data, both general information and indicator based data. This was later coded into machine programming
language for purposes of the data capture tool. All the details of the SIM questionnaire which uses a variety of
both qualitative and quantitative research methods measuring changes experienced by clients in different social
parameters were translated. The prototype of the survey tool was tailored to collecting data suitable for
impact assessment of microfinance operations. The three versions are possible; a paper questionnaire,
off-line and on-line versions. A Palmtop version will be available in the near future as for mobile phones.
The on-line version was of great interest and was finalized first. This is because of the efficiency it affords in
direct submission of data to the web-based server. The On-line tool officially works in the three languages;
Spanish, English and French. Other languages can be added easily after approval of INAFI. The tool
constitutes both a data gathering and monitoring systems.
Pilot MFI’s IT Assessment and Categorization
The IT visit was planned to start in the month of August 2007, although it delayed in take-off till September. As
per the arrangements planned and resolved in Benin workshop, Ordina and INAFI were to undertake a
technical visit prior to the pilot to the MFI organizations so as to assist in assessing computing capabilities and
technical needs for successful implementation.
SIM Project Final Report Page 10 /18
The main objectives for the visits were:
• To establish a criteria for selecting suitable branches for the pilot
• Asses regular business processes within MFI via the existing management information system
• Asses technical requirements for the SIM tool implementation
• Make recommendations how to integrate the SIM survey and data collection exercise into
regular day-to-day operations of the MFI
• Make recommendations to implement SIM Tool Online and/or Offline.
• Define an implementation plan (including training, support for data submission etc…)
The Country MFI‟s visited were 6 in number and included: India/GSD, Nepal/CSD, Philippines/CCT,
Bolivia/FONDECO, Peru/IFOCC and Zambia/MBT. The other MFI‟s were to use the framework developed from
these visits for setting up the tool in their organizations or have had visits during the subsequent workshops
being held in that particular country.
From the visits; an implementation plan and a USER Guide for the tool was developed. The MFI‟s were taken
through the proposal to test how it works, and the same was later summarized into an operations manual for
the SIM tool. The guides and implementation frameworks that are generously illustrated with case studies
drawn variously from Latin America, Africa and the Asia regions require training, particularly on the Loan
officers who are the default data enumerators. These guides address all circumstances any MFI may find itself
in, and thus empowers loan officers to undertake the impact survey.
The SIM IT team attempted to identify the level of the IT knowledge of the SIM pilot MFI‟s into (1 – Very good, 0
– Good, -1 – No skills). Based on this criterion, the MFI‟s were categorized into IT maturity levels. The chart
below identifies the different categories: - Maturity is identified by letters A – E, ranging from extensive use of
Computing facilities to minimal use of computer or internet.
All loan officers use their own computer.
There is continuous internet connectivity without a lot of disruptions
(less then 1 per day)
Extensive A Internet connectivity is through broadband (or will be in the next 6
months)
Loan Officer had a own laptop or mobile device.
Loan officers share a computer at the office
Internet is not continuous on, but accessible by the loan officers
High B There is use of email for work related communication
There is a good to very good understanding of computer use
Loan officer does once in a while something on a computer
Manager of loan officer has access to internet
Use computerized system for financial administration of the loans and
Average C the clients is available and in use
There is an average to good understanding of computer use
No use of computerized system is in place for loans and clients
Low D No internet available within the organization, but is available
No computer use or knowledge in institution available
Minimal E No internet connectivity available or possible
Institutional Set-up and Implementation Procedure Development
The field test phase ran from September to November 2007 on a MFI by MFI basis. The implementation
framework stipulated the procedure to be followed by each MFI. This entailed:
Selection of a pilot branch (at least one)
Defining data collection process as per instructions
Identifying the list of loan officer that will do the data entry in the branch
Understand and training loan officers on data entry process
Obtaining log-in passwords for on-line data submission as per the User guide.
The pilot MFI‟s were to distinguish the following roles within the implementation framework.
SIM Project Final Report Page 11 /18
The role of the GAM - Global Application Manager. The Global Application Manager was responsible for the
complete tool, including online, offline and paper version. This role was played by INAFI – IT (Mr. Momar Fall).
It provided for provision of all the necessarily technical support to get the MFI‟s started with the tool. He was in
direct contact with the institutions including support with troubleshooting, and emerging issues.
MAM - MFI Application Manager: The MFI Application Manager is responsible in the whole institution for
applying in a correct way the tool. He or she will do everything to make the tool work within the institution. The
MAM has direct contact with the GAM. The MAM is also responsible for all the trainings in the institution for
applying the tool. This role was played by the MFI SIM representatives.
Loan Officers: The loan officer is the one actually submitting the questionnaire and using the tool in case
internet is available for him or her. In case there is no internet available and computers are there, they will make
use of the offline version. If there are also no computers available the loan officer will only fill in the
questionnaire on paper and somebody else needs to be assigned within the organization for entry of the data
based on the filled in questionnaires.
The process required each MFI to: Identify a MAM, Identify pilot branches, and Identify loans officers who were
to assist with data collection and entry to the system. The loan officers were to undergo training before
commencing on the exercise. Once the MAM signaled to the GAM that due process was done, each off the
MFI‟s were issued with a logon password for kick-off. A copy of the implementation procedure is available as
part of the SIM toolkit. Through this process, all the pilot MFI‟s except for FJN (prevailing circumstances could
not allow this MFI to start) got started and embarked on data collection.
MFI Implementation of SIM
The on-line tool was therefore put to the test by the pilot MFI‟s using trained loan officers. The MFI‟s managed
to collect data and use the tool in the period provided for the test before the wrap-up workshop. Some had
about two months for the trial which involved a 3-step process: - data collection via the questionnaire, data
entry at the branch where for most MFI‟s the computer was available, and finally, uploading to the internet (in
case the offline version was used). The experience during this data collection and use of the online tool, was
shared in the wrap-up workshop (held in December 2007) in Manila. Concerning the online software for
capturing and entering the data, the participants were very satisfied with the outcomes. All proved that the tool
is easy to use and user friendly. Participants reached agreement on a modified questionnaire, the procedures
for implementation, and main functions of the SIM tool.
User Manual Application
The application of the tool followed 3 key processes for effecting the on-line tool. MFI‟s applied each of the
steps differently depending on their IT maturity:
Data Collection
Data collection is the process of gathering the information from the client to fill in the
questionnaire. This part can be done with the use of the Online version, Offline version and
the Paper version.
This is being done by the Loan Officer (or equivalent).
Data Entry
Data entry is the process in which the data from the client is being put into the system. This
can be done in the Online version and in the Offline version.
If the Questionnaire is filled in with the client directly in the online or offline version, the Data
Collection and Data Entry is being done at the same time. If the data is first collected on paper
and later transferred into the online or offline version, the Data Entry is a separate process.
Depending on several aspects this can be done by a different person than the loan officer.
This person must have access to a computer and to internet. This person does not necessarily
have to be the BAM or FAM. It can also be somebody else with these facilities.
Data Upload
If the data entry is done with the offline version, the data must be uploaded into the system by
the use of internet. In some cases the data entry can be done at a field office but the upload to
the online system can only be done at an office where internet is available. In these cases a
separate process must be implemented how to deliver the data for uploading.
If the data entry is done with the online version, there is no need for uploading the information
separately.
SIM Project Final Report Page 12 /18
On-Line Data Submission Experience
All the nine MFI‟s that experimented with the on-line tool had different observations to make. This reflected the
different situations obtaining in the MFI environment regarding internet connectivity. Several challenges were
witnessed summarized as follows:
- Overall, internet was not in all operational areas. Virtually all MFI‟s except for IFOC had to separately
arrange for internet connection point where the data collected can be submitted to the on-line tool.
Internet is often available at head office, and in one case not even there. On branch level the
challenge is to be able to use reliable internet. Although, it is expected that the accessibility of
internet will increase rapidly in the near future in several offices.
- The experience is that most MFI loan officers used the paper version to first collect data and then,
organized for keying into the computer to the internet.
- Statistical monitoring by Ordina of the frequency of connection to the server showed that, some MFI‟s
were more frequent on the tool while others preferred to do it by batch processing.
- The findings also indicated that, a lot more time and experimentation was needed as the work methods
of most MFI‟s was such that the loan officers who are the main drivers of the exercise were not used to
using the computer frequently.
- The frequency tallying also showed that, some MFI‟s accumulated the filled questionnaires waiting for
an appropriate time to key into the computer and internet. This slightly affected the speed of data
collection from the database point of view. Certainly, a situation where direct keying and submission is
one process is best for the on-line SIM system.
Feedback from 10 MFI’s Involved In the Pilot Exercise
Lack of availability of internet and computers was the main challenge experienced by the 9 piloting MFI’s.
Where internet is there, speed was the issue with many connections being dial up. Some MFI’s had to use
the cyber café, and costs were found to be high because of dial-up accessibility instead of DSL lines.
Access to computer greatly improved after the pilot upon realization of the need for the internet
connection to upload Social data. Key feedback points were as follows:
- Loan officers workload increased; although the tool is meant to be an integral part of all MFI’s
work and therefore of that of the loan officer, it remains a challenge for them to manage the data
collection. It was clear that an MFI had to make some exceptions to the way of work to allow time
for the SIM data collection time to take place. This is despite the fact that the survey takes
approximately about 15 minutes if process is planned well. Some were able to use even less time
for a survey. The solution seemed to lie in an MFI setting up its own system of incentives to
encourage the loan officers undertaking the SIM data collection and to see what is the most
efficient moment of data collection and entry in their daily processes. At the longer term, the SIM
tool is also expected to save part of the time usually required for the organisation to do impact
studies, analysis and reporting.
- Due to the increased amount of work, Wrap up workshop participants discussed other solutions
around MFI’s applying a sampling frame after investigations into the best way of such a
methodology for data collection. It was cited that it was not practical for big MFI’s to collect data
from all clients. Hence the need to do sampling under acceptable approaches. In terms of
procedures and costs this may have differing implications for various MFI’s. However, if well
standardized this procedure is seen by the large MFI’s as the only solution to the application of
the SIM tool within their organizations.
- Another solution discussed was the option of a light version of the tool (with less performance
indicators, less questions, but still a powerful tool).
- Another observation was the fact that a SIM back-up team is needed for technological challenges
that will always come about during application of the tool in organizations. This team will support
both the technical content aspects of the SIM tool, and also the IT/computer issues including
those that have to do with the on-line system and upload of data.
- During the pilot MFI’s realized there is need to do data verification before or after keying. This was
particularly crucial considering the fact that those collecting data may not be the ones keying-in
and uploading to the internet. The data therefore needs to be vetted, and cleaned so that only
valid entries are entered into the system.
SIM Project Final Report Page 13 /18
- It emerged that some questions appeared to be repetitive, while others were not clear. There was
then a need for explanation of the meaning and differences for clarity so as to achieve good
responses. Based on these remarks, the set up of the questionnaire was changed and simplified.
- Some observations indicated that since internet cannot be available the whole day for loan
officers, an off-line version loaded into a laptop would be a better way to collect data and submit
later to the internet. The paper version was found to be friendly.
- Good training of enumerators prior to conducting the impact survey was found to yield good and
efficient handling of the questionnaire. It was observed however that a training guide or interview
guide is needed for coaching the enumerators and making them understand the contents of the
survey.
- A number of questions were found to be poorly designed and suggestions for modification were
made.
Experiences of the SIM pilot: Future Considerations
After obtaining feedback and sharing pilot experience with the on-line tool, the SIM group discussed if the tool
had a future. All present responded that there was future for the tool, and it was promising. Some of the
unfinished aspects of the tool however drew criticism from participants. For example they had hoped to see
how data would be analyzed and interpreted via the reporting system. This part of the tool was incomplete
since the selected open source software experimented for the task was found to be unsuitable. Ordina
suggested that a new reporting open source software needed to be explored by INAFI.
A number of MFI’s commented that they were looking forward to using the tool for measuring impact in
the coming year, and that they had provided for its implementation in their budgets.
Upon intense discussions on the way forward, the following things or actions were thought to be important
before embarking on SIM implementation in any branch of the MFI:
- Training of loan officers
- Capacity building for data capture and enumerators
- Set up of reliable internet connectivity
- Development of a User/Interview guide based on current questionnaire with clear instructions on
the process
- A thorough explanation of some issues and the procedure to be followed; how to take
measurements for drop-out clients, how to handle group loans, how data would be analysed and
reported at the MFI level, how to handle the option of sampling where it is not practical to do total
population of clients, what the timing is for reporting software availability to determine when to
expect some results for the survey.
Future Direction of SIM after Pilot: From Pilot phase to Roll out
phase
Over the past 18/24 months, the SIM design and development team has been working on the impact
measurement tool. The pilot team has tried its best under the circumstances to consolidate shared ideas and
concepts on the subject. The development process indicated 8 phases in total to completion of the project that
kicked off in June/July last year. These included: 1) Inception, 2) Mapping, 3) Architecture, 4) Design, 5)
Building and Testing 6) Installation and monitoring, 7) Sharing, and 8) Wrap up. Our main research question
has been, ‟what are the key indicators of social change? And how do we measure changes in the lives of MFI
clients in an on-going basis under our domains of choice?‟
The team‟s first task involved developing indicators that reflect social well being of clients and in general their
households. Five dimensions in microfinance that are within the framework of millennium development goals
(MDG‟s) have now been agreed in addition to a theoretical backing for the same. These dimensions are
acceptable across the board in the three INAFI regions: Latin America, Africa and Asia. Based on these
indicators the group developed a SIM questionnaire that aims to capture primary data in a variety of both
qualitative and quantitative questions that measure changes experienced by clients in different social
parameters. The SIM tool thus includes a „social impact assessment questionnaire‟, and a field guide for
MFI‟s/loan officers with insights and practical guidelines for their interviews when dealing with clients on social
SIM Project Final Report Page 14 /18
impact measurement. Three versions of the questionnaire tailored to collecting data suitable for impact
assessment are available. The three versions are; a paper questionnaire, off-line and on-line versions. The SIM
web-based tool constitutes both a data gathering and monitoring systems. A Palm version or for mobile phones
will become available in a later stage.
INAFI believes that the SIM tool is comprehensive and well researched and presents an alternative way of
measuring changes in clients‟ well-being at the MFI level. It is hoped that the primary purpose of the SIM tool:
to generate social data (that does not exist currently in the industry) that can provide statistical information on
the changes arising in the lives of clients as a result of microfinance intervention will be achieved by the SIM
tool.
INAFI intents to unveil the SIM toolkit -an impact measurement system to all network members following the
conclusion of the design and development phase. The design team has made recommendations on ways to
perfect the current version of the system which will be an on-going exercise. With the closure of the pilot project
in December 2007, a new program is commencing, that is, SIM roll-out plan to all MFI‟s worldwide for continuity
of the project into phase II.
INAFI will roll-out the SIM tool in a phased process, to all interested network member MFI‟s (and as necessary
non- member MFI counter parts) at a small fee to be decided later. This is the roll out phase for the SIM tool.
With this approach, INAFI hopes to admit in the year 2008, 50 MFI‟s to join the 10 pilot MFI‟s in collecting social
data to the central database via the tool. A criterion will be developed for an orderly entry and for administrative
purposes. This will form a basis for social impact measurement as INAFI prepares the SIM tool for use by MFI‟s
worldwide.
INAFI has developed a funding proposal to transform the project into a SIM program integrated in the network
activities. A budget based on the roll-out plan has been made out and sources of finance are being identified.
After funding has been secured, INAFI International board would then decide and plan under the guidance of
(SIM Pilot project partners) on the actual roll-out strategy that is acceptable to the entire NETWORK regions.
Input will be received from all the coordinators, directly and also in the form of recommendations. Part of the
funding will also be used to compensate for the unfinished tasks under the recommendations coming after
closure of the project.
The Roll-out plan; will include the following among other things,
i. How the SIM project turns into a programme, how roll-out is phased, for example-how many
years and how it will be administered, the charges if any to users of the tool etc
ii. It should state the funding base and all necessary events tied to the SIM activities: e.g. The
Global SIM Conference
iii. How the SIM programme grows within and outside the network. That is, the growth plan
should be thought out including the impact in the microfinance industry
iv. How potential new users of SIM will be enabled and assisted to test the usefulness of SIM
for their own organisation
v. How new users of the tool will be trained, and the development of the training course, the
SIM toolkit, training of the trainers, any materials to disseminate, etc
vi. How to encourage MFI‟s within the network and worldwide to adopt and institutionalize SIM
in their management information systems (a full marketing programme)
vii. Provide guidance on how to use and implement the SIM toolkit by member network MFI‟s
viii. How to sensitize and create awareness on social performance and impact measurement
techniques and bring understanding on the added value and benefits for taking impact
surveys.
SIM Continuity Work beyond the Pilot Phase Plan
The SIM building phase came to an end and as with all experiments at the end it is time to decide whether the
experiment has failed or was a success and thus if it needs follow-up. All participants to the pilot agreed that the
experiment is a great success and the tool is very useful as all need to show impact. To have indicators that are
agreed by a group of practitioners from throughout the world is unique and very valuable. The nine MFI‟s
present in the last workshop will continue to use the tool and collect and input data based on the revised
questionnaire as agreed upon during the workshop. Several MFI‟s intent to incorporate the tool fully in their
daily practises starting from January, 2008 as the modified version of the becomes available. The adaptations
will be brought forward in the online and offline version of the tool, as also for the paper version of the
questionnaire. The paper version of the English questionnaire was available for download through the online
tool as from the beginning of 2008. The translations as well as the on-line version and the manuals are
available since the 1st Quarter 2008. The complete toolset will be available in French, English and Spanish and
SIM Project Final Report Page 15 /18
other languages are also possible and can be incorporated into the tool easily. Separate procedure for local
translations will be worked out in collaboration with INAFI regional offices.
A number of tasks need to be done by the coordinators so as to fully adjust the tool in line with
recommendations in Manila workshop. Some of these include:
- Provide new adjusted on line version (finalized in May 2008)
- (Re)write the users manual based on the revised questionnaire
- Develop interview guide for use by implementers and
- Other remaining tasks to close the pilot phase, secure funding and prepare for the roll-out.
The participating MFI‟s have also some work to do after closure of the project. That is:
- Update their own organisations with the outcomes and findings of the pilot
- Act as INAFI ambassadors in spreading the good news about the tool
- Continue to collect data using the revised Questionnaire (possible with paper version as of the
beginning of 2008) and do data entry as before (in online version as of May 2008)
- Remain committed to the SIM activities and available in the roll-out phase of SIM to train others and
provide their expertise.
On implementing the tool as designed, immediately, technology is a challenge:
o Internet is often available at head office, and in some cases not even there. On branch level the
challenge is often bigger to be able to use reliable internet. If internet is there, sometimes speed is an
issue. And costs are sometimes high because of dial-up accessibility instead of DSL lines. If using a
cybercafé, it still costs money.
o MFI‟s have to make separate arrangements for internet connectivity to use the tool, where reliability is
not guaranteed. However, as already established it is possible to get round this problem if available
internet connection options are explored. MFI‟s should work with INAFI to go round this issue.
o Access to computer facilities. (The good news is that, the use of computers in MFI‟s is becoming more
and more common practise as acknowledged by the participants).
INAFI Vision for Roll-out of SIM
Time has come to finally let the numbers do the talking. If MFI‟s will embrace the idea of checking the impacts
they cause, many institutions will better align their programs on their main purpose - poverty reduction which is
essentially a social phenomenon. The SIM effort was driven by the quest by a number of MFI‟s and donors that
have expressed the desire to learn more about the added value of their activities to their beneficiaries. To
address these social impacts INAFI with the support of OxfamNovib and Ordina have finally come up with a
practical approach, tailor-made to MFI‟s way of working.
For INAFI the development of the SIM system is crucial in reinforcing its return to the basics role in
microfinance. It is for this reason that the SIM tool, one of the few impact measurement tools on trial is now
made available to empower MFI‟s to do research on the effects of microfinance to their clients. SIM will be an
accessible, easy to use tool from INAFI, the network of practitioners from the south, and is a first introduction to
social impact assessment that is grounded in the grassroots operations of MFI‟s. This will help prevent potential
negative environmental and social impacts of their lending activities. INAFI will as necessary provide guidance
towards MFI‟s in this area.
To that end, INAFI will propose the SIM toolkit on „Social impact measurements and poverty dimensions‟ and
follow-up support to assist member MFI‟s (and other counter parts) to develop necessary skills to implement
SIM impact evaluation system.
Ultimately INAFI intends to organize a global conference to introduce the SIM PILOT groups‟ work to the
microfinance industry and a larger audience of microfinance institutions, donors and impact measurement
enthusiasts. This is envisioned to be after a number of MFI‟s (target - close to 100) have implemented the tool
and enough experience on the tool has been generated as well as data. Here INAFI intends to engage the
wider community of international development actors and microfinance, and try to promote the SIM tool and its
methodology. Its expected that findings from the data collected will be available and INAFI will be able to
demonstrate the social effects of microfinance to clients that are data driven.
Another focus for INAFI with the tool is to generate interest in the SIM tool beyond the confinements of INAFI
membership. The dream is that the use of the tool creates industry wide awareness and curiosity in undertaking
impact measurement for microfinance interventions by all MFI‟s worthy their name. In the end and given the
SIM Project Final Report Page 16 /18
demand levels, INAFI will consider through the project the potential for turning the application of the tool as a
revenue base for the network, therewith reducing donor dependency. The beginnings of this strategy lies in
getting as many MFI‟s, members and non-members to use and adapt to the tool in measuring impact of their
programs.
Recommendations of SIM Participants to INAFI International
After the last workshop for the „building‟‟ team of 10 MFI‟s, and project partners, the next steps were seen as
including the refining of the tool and making it available to other users both inside and outside the INAFI
network in the further future. To achieve this it was recommended that INAFI International will:
- Update the INAFI regional directors and the board on the SIM project‟s progress.
- Make a plan to spell out what needs to be done in the next phase (roles of INAFI, MFI‟s, Ordina,
Oxfam Novib) as well as a „marketing „plan to share this tool with stakeholders in and outside of the
INAFI network in the future.
- Send a letter to all participating MFI‟s thanking them for their participation in this phase, explain what
the contributions of INAFI to these MFI‟s has been during the project and give insight in future
involvements.
The wrap up workshop highlighted the fact that the SIM tool is likely to generate additional work-load to MFI‟s
loan officers work load. Although the tool is meant to be an integral part of all MFI‟s work and therefore that of
the loan officer, it remains a challenge for them to manage the data collection. All MFI‟s are encouraged to set-
up their own system of incentives if needed for the loan officers included in the SIM tool and to see what is the
most efficient moment of data collection in their daily processes. However, the participants recommended that
INAFI deals with this heavy workload in phase 2 of SIM in two ways:
1. Ask some research experts/institute to investigate whether the SIM tool and methodology can
be applied equally well by using a sample for data collection and if so, what sample size would
be suitable under which circumstances and why? What would be the consequences in terms
of procedures and costs?
2. Look into the possibilities for a light version of the tool (less performance indicators, less
questions, but still a powerful tool)
This will enable credible results that are comparable, facilitate learning and sharing experiences worldwide to
serve people living in poverty in a better way. The effort that has been put in by all participants on the tool and
the results of this will lead to the possibility of making the change in the lives of the clients measurable, to serve
them better in the future and to contribute to reaching the goals to reduce poverty .
SIM Tool Further Work: The unfinished jobs
The Last workshop in Manila discussed a number of activities that though intended or attempted were not
completely finished. These remain as challenges to the team, and the smooth take-off of the tool:
- Reporting tool:- the open source software used at the development/design stage for reporting is not
good enough. The workshop established that the software (Pentaho) experimented turned out to be
inappropriate (too technical and complicated), thus raising the need for alternatives to be found. INAFI
will have to explore several possibilities and once acquired, have it interfaced with the existing
database.
- A SIM back-up team is needed for technological challenges that always come about. This becomes
necessary when other MFIs begin to implement the tool in addition to the current pilot group. A
Training programme for couching interested MFIs will also be mandatory so as to guide new entrants
on how to use the SIMtookit.
- Interview guide: A user manual for guiding interpretation of the questions and procedure on the
process of gathering data from the respondents is yet to be developed. This manual will seek to offer
explanation to the questions and orientate new users to the indicators.
SIM Project Final Report Page 17 /18
Recommendations for use of Current Version of the Tool
The current version of the tool finds its main use in the second phase of the SIM project, now called roll-out
phase. The major challenge in the roll-out of the SIM tool is twofold: to convince potentially interested MFIs that
it is worthwhile taking the effort to apply the tool in a wholesome manner and to provide the technical
assistance to implement the tool. The project has tried to overcome the first challenge through participation and
creating awareness in the regions during the pilot phase by the INAFI pilot MFIs. They have also demonstrated
that the tool is working in practice. The second challenge is to be overcome by the proposed roll-out phase of
the SIM project. This phase will as a result use the current version of the tool, and continue to test and improve
it for the better.
The use of the current tool, particularly with new MFIs coming on board will require a comprehensive strategy to
work with as many as possible INAFI member organizations at high levels of efficiency to keep training and
installation costs in check. For that reason a regionalized approach is opted for. Per region, sub region or
country a roll-out plan will be formulated for as many MFIs as possible to sign up for simultaneous use of the
tool. That represents sufficient demand to justify making available a trained SIM technical assistance provider
from the same location. INAFI will have to first train a team of SIM trainers and certify them in collaboration with
Ordina as the IT technical assistance provider. It is expected that at least 50 member organizations will sign up
for participation in the rollout project during the 2008/09 period which would warrant major network impact as
regards social impact measurement implementation.
SIM Toolkit
This includes: a package of the tool documents; all the 3 (language) versions of the questionnaire, user
manuals, institutional implementation guide (functional and technical), interview guide. Specifically, an
interactive CD with these key documents would be desirable:
Implementation guide (En,Sp,Fr)
Questionnaire (En,Sp,Fr)
User Manual for Loan Officer, FAM, BAM, MAM, GAM (En,Sp,Fr)
Interview guide (En, Sp, Fr)
Feedback form (En,Sp,Fr)
The CD package is to be made interactive or hooked to the web such that upon opening the tool, it
automatically tries to search the web www.sim-inafi.org
SIM Project Final Report Page 18 /18
Related docs
Other docs by m11HeiQp
