Performance management has also been developed for the delivery of microfinance. The Social Performance Task Force, a global working group of microfinance industry stakeholders, has created Universal Standards for Social Performance Management (USSPM) “as a resource to help financial institutions achieve their social goals.”[i] The Standards are a manual of best practice and guide organisations through using social performance data for decision making. The work on the USSPM focuses on a) the intent and design of the organisation (clarity on what should be done and why) and b) the organisational systems to deliver outcomes (including human resources, staff performance management, information, quality management, risk management and governance).
The USSPM is performance management in its broadest sense, since it considers how all aspects of the organisation align with its social goals. Measuring outcomes for clients is an essential part of this system, but it is driven by management need for information about what is working, what is not, and for whom.
In addition, segmentation of target clients is a key part of the USSPM, because the starting point of creating impact through microfinance is to reach target clients, then to design and deliver services that meet their specific needs.
[i] Social Performance Taskforce. The Universal Standards for Social Performance Management.