Introduction to the PPI®

A Grameen Foundation Product

Training in the Key Concepts of the PPI

Progress out of Poverty Index® by Grameen Foundation 2

To enable the poor, especially the poorest, to create a world without poverty

Progress out of Poverty Index® by Grameen Foundation 3

To enable organizations with a mission to help the poor to manage their social performance with as much purpose and structure as they manage other aspects of their performance.

Objectives

� Describe the PPI in the context of social performance management;

� Define the PPI in terms of purpose and use;

� Explain key steps and best practices to

Progress out of Poverty Index® by Grameen Foundation 4

� Explain key steps and best practices to implement the PPI; and

� Explain key uses, challenges, and benefits of the PPI.

Session Time

Welcome and Introductions

PPI Fundamentals

� Social Performance and the PPI

� The PPI’s Construction

� The PPI: A Measurement and Management Tool

12:15 – 12:45

PPI Implementation: Key Steps and Best Practices 12:45 – 1:30

Agenda

PPI Implementation: Key Steps and Best Practices

� PPI Implementation Cycle

� PPI Standards of Use

12:45 – 1:30

Questions and Answers

Wrap-up and Close

1:30 – 1:45

Progress out of Poverty Index® by Grameen Foundation 5

Acknowledgements

Progress out of Poverty Index® by Grameen Foundation 6

PPI Fundamentals-Social Performance Management and the PPI

-The PPI: Measurement and Management Tool

-The PPI’s Construction

Progress out of Poverty Index® by Grameen Foundation 7

Social

Performance

Management

Social

Performance

Management Management

and the PPI

Management

and the PPIPPI

FUNDAMENTALS

PPI

FUNDAMENTALS

Social Performance =

The effective translation of an institution’s mission into practice in line with accepted

social values.

Progress out of Poverty Index® by Grameen Foundation 9

Adapted from SPM Essentials Resource Handbook, SPTF, 2012.

Social Performance Management =Management =

The processes and tools that an organization use to translate social goals into practice.

Progress out of Poverty Index® by Grameen Foundation 10

Adapted from SPM Essentials Resource Handbook, SPTF, 2012.

Progress out of Poverty Index® by Grameen Foundation 11

Client-level Data Tools: Purpose

The tools help answer:

� Are we reaching our target clients?

� Are we meeting our target � Are we meeting our target clients’ needs?

� Are we changing the lives of our target clients?

Progress out of Poverty Index® by Grameen Foundation 12

Adapted from SPM Essentials Resource Handbook, SPTF, 2012.

Client-level Data Tools: Examples

� Progress Out of Poverty Index

� Poverty Assessment Tool

� General Client Feedback Surveys

� Multidimensional Poverty Index

� Participatory Wealth Ranking

� Household Income surveys

Progress out of Poverty Index® by Grameen Foundation 13

A Video: Why do we measure Poverty?

14

The PPI’s

Construction

The PPI’s

ConstructionConstructionConstructionPPI

FUNDAMENTALS

PPI

FUNDAMENTALS

Progress out of Poverty Index® by Grameen Foundation 15

Every PPI has two essential components.

Construction of the PPI

�Scorecard

The PPI’s Composition

Progress out of Poverty Index® by Grameen Foundation 16

�Scorecard

�Look-up Tables

The PPI: Uganda Example

Progress out of Poverty Index® by Grameen Foundation 17

The PPI: Uganda Example

� Sourced from Uganda’s 2009/10 National Household Survey

� National household surveys typically have 200

Progress out of Poverty Index® by Grameen Foundation 18

surveys typically have 200 to 1000 indicators from which to assess poverty

� Also include reliable statistics on income levels

Logistic

Regression

15

Indicators

100

Questions

Peer Review

and Field

Testing

10

Indicators

Progress out of Poverty Index® by Grameen Foundation 19

� Afghanistan

� Bangladesh

� Benin

� Bolivia

� Brazil

� Burkina Faso

� Egypt

� El Salvador

� Ethiopia

� Ghana

� Guatemala

� Haiti

� Malawi

� Mali

� Mexico

� Morocco

� Nepal

� Nicaragua

� Romania

� Russia

� Rwanda

� Senegal

� Sierra Leone

� South Africa

48 Country-specific PPIs

� Burkina Faso

� Cambodia

� China*

� Colombia

� Dominican Republic

� Ecuador

� Haiti

� Honduras

� India

� Indonesia

� Ivory Coast

� Jordan

� Kenya

� Nicaragua

� Nigeria

� Pakistan

� Palestine

� Paraguay

� Peru

� Philippines

� South Africa

� Sri Lanka

� Syria

� Tanzania

� Timor-Leste

� Uganda

� Vietnam

� Yemen

Progress out of Poverty Index® by Grameen Foundation 20

*China has an expert-based poverty scorecard in place of a PPI.

The PPI: Uganda Example

Progress out of Poverty Index® by Grameen Foundation 21

The PPI: Uganda Example

Progress out of Poverty Index® by Grameen Foundation 23

24

The PPI:

Measurement

The PPI:

Measurement Measurement

and Management

Tool

Measurement

and Management

ToolPPI

FUNDAMENTALS

PPI

FUNDAMENTALS

Progress out of Poverty Index® by Grameen Foundation 25

Progress out of Poverty Index® by Grameen Foundation 26

Client Targeting and Market Intelligence� Who and where are the poor?� Who and where are the poor?

� What are the demographics of the poor?

Movement over Time� Are the organization’s clients becoming less poor over time?

Progress out of Poverty Index® by Grameen Foundation 27

What about impact?

Progress out of Poverty Index® by Grameen Foundation 28

Example of Measurement

Progress out of Poverty Index® by Grameen Foundation 29

Example of Measurement

Progress out of Poverty Index® by Grameen Foundation 30

Example of Measurement

Progress out of Poverty Index® by Grameen Foundation 31

Example of Measurement

Progress out of Poverty Index® by Grameen Foundation 32

Example of MeasurementP

ove

rty

Rate

(%

)

Progress out of Poverty Index® by Grameen Foundation 33

Pove

rty

Rate

(%

)

Example of Measurement

Progress out of Poverty Index® by Grameen Foundation 34

Pove

rty

Rate

(%

)

Pove

rty

Rate

(%

)

� Program Evaluation

� Mission Advancement

Performance Management

� Mission Advancement

� Product Development

Progress out of Poverty Index® by Grameen Foundation 35

Example of Program Evaluation

Progress out of Poverty Index® by Grameen Foundation 36

MISSION ADVANCEMENTExample of Mission Advancement

Progress out of Poverty Index® by Grameen Foundation 37

�Bylaws state that 80% of all customers must be below the $2.50 per day poverty line.

Example of Mission Advancement

line.

�The PPI showed that the actual figure was 64%. Based on this, PT Ruma created a more effective targeting and screening process.

Progress out of Poverty Index® by Grameen Foundation 38

PRODUCTS AND SERVICESExample of Product Development

Progress out of Poverty Index® by Grameen Foundation 39

� Voluntary savings products were not widely used.

� PPI data helped show that a client’s poverty status does not influence that client’s ability to save as

Example of Product Development

does not influence that client’s ability to save as much as the products available to that client.

� CARD Bank lowered minimum savings levels and increased access points for savings deposits.

Progress out of Poverty Index® by Grameen Foundation 40

PPI Implementation-PPI Implementation Cycle

-PPI Standards of Use

Progress out of Poverty Index® by Grameen Foundation 41

PPI

Implementation

PPI

Implementation Implementation

Cycle

Implementation

Cycle

Progress out of Poverty Index® by Grameen Foundation 42

PPI

IMPLEMENTATION

PPI

IMPLEMENTATION

PPI Implementation Cycle

Progress out of Poverty Index® by Grameen Foundation 43

PPI Implementation Cycle

1. Why do you want to use the PPI in the first place? What is your overall objective?

Progress out of Poverty Index® by Grameen Foundation 44

your overall objective?

2. Who’s involved? Who will be interacting with the PPI? How? What are their needs if they are going to be able to use the tool effectively?

3. How will you collect the data? Who will use the survey? Why? When will you collect the data? What are the logistical and operational considerations?

PPI

Standards of

PPI

Standards ofStandards of

Use

Standards of

Use

Progress out of Poverty Index® by Grameen Foundation 45

PPI

IMPLEMENTATION

PPI

IMPLEMENTATION

PPI Certification

Progress out of Poverty Index® by Grameen Foundation 46

PPI Implementation

Wrap-up and

Close

PPI Fundamentals

Progress out of Poverty Index® by Grameen Foundation 47

Reflecting on PPI Workshop

Progress out of Poverty Index® by Grameen Foundation 48

1 2

Get started at www.progressoutofpoverty.org

1. Find the PPI for your country

2. Download PPI documents

3. Download learning materials

4. Ask questions and share

information on the discussion

forum

Also available: case studies, blog,

instructional videos, and more.

3

4

Progress out of Poverty Index® by Grameen Foundation 49

This concludes

Introduction to the PPI®.

Thank You.

www.progressoutofpoverty.org

info@progressoutofpoverty.org

Progress out of Poverty Index® by Grameen Foundation 50