Guidance on the Analysis

and Use of Client Outcomes

Data

Katie Hoffmann, SPTF28 February, 2018

Nairobi, Kenya

Social Performance Task Force (SPTF)

• Work with stakeholders to set standards for social performance management in financial inclusion

• SPTF Outcomes Working Group promotes improved outcomes management in the financial inclusion sector

Photos credit: Fonkoze, Haiti

Key definitions

change for clients that is plausibly associated with the FSP’s services

change that is caused by an intervention

OUTCOMES MANAGEMENT refers to a multi-step organizational system for the collection, analysis, and use of outcomes data

Primary Purposes of Outcomes

Management

If you cannot measure, you cannot improve.

Mission: Be specific

Improve clients’ lives

Improve clients’ businesses

Increase the number of value of productive assets the client owns

Increase the average annual revenue from the business

Increase the average annual profit of the business

Increase the number of employees of the business

Client focus groups

Positive! For these reasons:

They have improved savings

They learned from the talks given to them

They have been able to educate their children and themselves feel good

Banks now offer them [ATM] cards, whereas before they did not.

They realize they can do other things, such as working and being independent - not relying on the spouse

Mission: Aligned with clients’ needs?

• Question: What type of impact (positive, neutral, or negative) has microfinance in general had on your life? Why do you feel that way?

Theory of change - framework

•

Organization’s value proposition

Mission Strategies TargetPopulation

Inputs Outputs

Outcomes Near-Term/ Longer Term)

Key Performance Assessment Metrics

CONTINUOUS LEARNING AND IMPROVEMENT OccasionalResearch

Mission and theory of change example:

bed nets

• Mission: to reduce malaria in Kenya

• Theory of Change:

• Outcome: no change in incidence of malaria

1 2 3

Distribute insecticide-treated nets for free

Families will put those nets over their children’s beds at night

Fewer children will get malaria

What went wrong?

Insecticide treated bed nets vs malaria used to dry fishOutput= Insecticide treated bed nets are distributed

Outcome ≠ reduce prevalence of malaria

Mission and theory of change example:

client health education

• Mission: reduce incidence of water-born disease

• Theory of Change:

• Outcome: some villages had fewer incidences of water-born illness, but in others there was no change

1 2 3 4

Distribute chlorine drops

Educate clients on how to treat their water, and why it is important

Clients treat their water with chlorine drops

Fewer people contract water-born illnesses

What went wrong?

The ‘attrition’ factor

Target population [100]

Know about interv-ention

Take part

AcquireKnow-ledge

Changeattitude

ChangeBehav-iour

Outputs – use services

Outcomesachieved

➢What is needed to help more people get to the end of the process ?➢Measure not just the end result, but progress at each step.

Data analysis – think “lean data”

Data analysis: example 1

Data analysis: example 2

2012 Change Survey Results….

16

Overall Wellbeing Improving, BUT Crisis/Vulnerability Increasing

2017 OutcomesMI is More Attractive to Poorer Clients AND

MI Satisfaction is Higher for Poorer Clients

PPI Line = Cambodia National Poverty Line X 150%

Financial axis weight

7%

18%

19%

11%

11%

15%

Time in Business

Monthly Sales

Net profit

Total Assets

Equity

Working Capital

1. FINANCIAL AXIS DEFINITION

Socia

l

Housing

Ceiling, floor, walls, environments

Hygienic service

Water source

Electricity

Home Appliance

Health

Health Services

Waste disposal

Cooking fuel

Water quality

EducationCustomer´s

educational degree

0

10

2. SOCIAL AXIS DEFINITIONSocial axis weight

29%

9%

8%

8%

6%

7%

8%

8%

9%

8%

BOTH AXISClients with change in both axis, social and financial,comparison between 2016 credit and later credit.

CHANGE IN BOTH AXIS

CHANGE IN BOTH AXIS

CLIENT

DEVELOPMENT

PATH

-DEVELOPMENT

SERVICES-

1. First Credit / First Segmentation Score

2. Credit, Training and

Advice

3. SubsequentCredit /

SegmentationScore

4. Analysis: descend, without improvement, ascend

5. Social Monitoring, / In field: new needs? new threats?new risks? How anticipate help?

6. New products,New servicesHow to accelerate development?

CO

NT

INU

OU

S I

MP

RO

VE

ME

NT

MA

NA

GE

ME

NT

Exercise:

Small group work

Resources from the SPTF Outcomes

Working Group• Documents:

- List of recommended outcome indicators in fouroutcome areas: health, poverty, business, and resilience

- A brief: making the case for outcomes management

- Guidelines on outcomes management for financialservice providers

- Guidelines on outcomes management for investors

- Case study on KOMIDA (Indonesia)

• Webinar series (ongoing)

https://sptf.info/working-groups/outcomes

Ten key steps to outcomes

management

Thank you!

Katie Hoffmann

katiehoffmann@sptf.info