Introduction to Social Performance Tools

Social performance management is an institutionalized process that involves setting clear social objectives, monitoring and assessing progress towards achieving these, and using this information to improve overall organizational performance.

Social performance assessment is about evaluating the extent to which institutions meet their social objectives. It includes analysis of the declared social objectives of institutions, the effectiveness of their systems and services in meeting these objectives, related outputs (for example, reaching larger numbers of very poor households) and success in effecting positive changes in the lives of clients.

Different social performance assessment initiatives focus on different steps in this process. Some focus on the institutional process and internal systems, while others assess social performance at the client level. Still others are holistic and encompass both.

• Institutional Process - These tools help institutions evaluate their intentions, systems and actions to determine whether they have the capacity to attain their social objectives. The tools included here can be used to conduct social audits.
  
  
• Client Conditions- These tools help determine who is being reached and if client conditions are improving.
  
  
• Social Ratings - Several rating agencies have developed social rating tools to complement their financial ratings. Some focus only on internal processes while others consider both client-level indicators and internal processes.

MFI user reviews of these tools are available from the Social Performance Task Force.