MDF - Micro Development Fund

Introduction

MDF started to introduce Social Performance Management (SPM) in 2006. Firstly, Social Performance (SP) objectives were formulated and Strategic Plan was defined. We were, primarily, focused on tracking of the certain SP indicators for the purpose of reporting and presenting to donors and staff. Launching of SPM within organization implied simultaneous communication with all the staff, especially management, in order to provide their acceptance and comprehension. However, that was not a problem, as MDF had wide social orientation in its background. Accordingly, Social Audit came after we had placed a system, and helped in assessment if the system was appropriate.

MDF considers that commitment of all the relevant staff to the SPM is important, which means willing to work on realization of organizations mission and social goals, as day-to-day acting on achievement of the goals.

Reporting on SP has been improved since MDF conducted Social Audit. It is focused on target clients, which includes categories as clients below National Poverty Line, start-up businesses, vulnerable categories, women participation, etc. Second segment of reporting relates to tracking changes in Clients' businesses and living standard, which MDF plans to improve in the near future.

QUALITY AUDIT TOOL (QAT) within Social Performance Management (SPM) in Micro Development Fund

MDF conducted the audit of social goals using Quality Audit Tool (QAT) - developed by MFC from Poland, in the late 2007 and early 2008. The whole project was funded by USAID. The main goal was to review the state and effectiveness of management systems and processes in organization for the purpose of achieving mission and social goals.

QAT included interviews of Managers, The President of the Board, and several Loan Officers and Clients. Questions referred to the design of mission and social goals, and strategies for their achievement, then to the whole Social Performance (SP) information system - the quality of information, communication and analysis and finally to the use of information on social performance and their impact on decision-making, and to organizational Culture and alignment with the incentive and other similar management systems.

The next phase was referred to the compilation of impartial Report on social performance based on interviews and analysis, which served as a basis for joint discussion of all project participants. In addition, the Audit Panel was organized in order to discuss findings from the Report, which were expressed as strengths, weaknesses or discussion points.

Audit Panel was held in Belgrade with the participation of the majority of interviewed MDF employees and MFC trainer - who were assisting with advice during the process. Panel attendants discussed all important findings, and came to conclusions about the actions that should be applied in order to improve the status and effectiveness of SPM in MDF.

Activities agreed to be taken in 2008, were further formulated in the Action Plan, and ranked as more or less important for the organization, with the definition of responsible person/body and the necessary resources in order to their application.

Finally, the two MDF representatives took part at Regional SPM Working Group Meeting in Warsaw in March 2008, in order to share experience with other participants on SPM generally, Social Audit and implementation of QAT as well.

To read more about SPM click here.