Introduction to the PPI

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1 Introduction to the PPI Training in the Key Concepts of the PPI A Grameen Foundation Product

2 To enable the poor, especially the poorest, to create a world without poverty Progress out of Poverty Index by Grameen Foundation 2

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. Progress out of Poverty Index by Grameen Foundation 3

4 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 implement the PPI; and Explain key uses, challenges, and benefits of the PPI. Progress out of Poverty Index by Grameen Foundation 4

5 Agenda Session Welcome and Introductions PPI Fundamentals Social Performance and the PPI The PPI s Construction The PPI: A Measurement and Management Tool Time 12:15 12:45 PPI Implementation: Key Steps and Best Practices 12:45 1:30 PPI Implementation Cycle PPI Standards of Use Questions and Answers Wrap-up and Close 1:30 1:45 Progress out of Poverty Index by Grameen Foundation 5

6 Acknowledgements Progress out of Poverty Index by Grameen Foundation 6

7 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

8 PPI FUNDAMENTALS Social Performance Management and the PPI

9 Social Performance = The effective translation of an institution s mission into practice in line with accepted social values. Adapted from SPM Essentials Resource Handbook, SPTF, Progress out of Poverty Index by Grameen Foundation 9

10 Social Performance Management = The processes and tools that an organization use to translate social goals into practice. Adapted from SPM Essentials Resource Handbook, SPTF, Progress out of Poverty Index by Grameen Foundation 10

11 Progress out of Poverty Index by Grameen Foundation 11

12 Client-level Data Tools: Purpose The tools help answer: Are we reaching our target clients? Are we meeting our target clients needs? Are we changing the lives of our target clients? Adapted from SPM Essentials Resource Handbook, SPTF, Progress out of Poverty Index by Grameen Foundation 12

13 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

14 A Video: Why do we measure Poverty? 14

15 PPI FUNDAMENTALS The PPI s Construction Progress out of Poverty Index by Grameen Foundation 15

16 Construction of the PPI The PPI s Composition Every PPI has two essential components. Scorecard Look-up Tables Progress out of Poverty Index by Grameen Foundation 16

17 The PPI: Uganda Example Progress out of Poverty Index by Grameen Foundation 17

18 The PPI: Uganda Example Sourced from Uganda s 2009/10 National Household Survey National household surveys typically have 200 to 1000 indicators from which to assess poverty Also include reliable statistics on income levels Progress out of Poverty Index by Grameen Foundation 18

19 100 Questions Logistic Regression 15 Indicators Peer Review and Field Testing 10 Indicators Progress out of Poverty Index by Grameen Foundation 19

20 48 Country-specific PPIs Afghanistan Bangladesh Benin Bolivia Brazil Burkina Faso Cambodia China* Colombia Dominican Republic Ecuador Egypt El Salvador Ethiopia Ghana Guatemala Haiti Honduras India Indonesia Ivory Coast Jordan Kenya *China has an expert-based poverty scorecard in place of a PPI. Malawi Mali Mexico Morocco Nepal Nicaragua Nigeria Pakistan Palestine Paraguay Peru Philippines Romania Russia Rwanda Senegal Sierra Leone South Africa Sri Lanka Syria Tanzania Timor-Leste Uganda Vietnam Yemen Progress out of Poverty Index by Grameen Foundation 20

21 The PPI: Uganda Example Progress out of Poverty Index by Grameen Foundation 21

22

23 The PPI: Uganda Example Progress out of Poverty Index by Grameen Foundation 23

24 24

25 PPI FUNDAMENTALS The PPI: Measurement and Management Tool Progress out of Poverty Index by Grameen Foundation 25

26 Progress out of Poverty Index by Grameen Foundation 26

27 Client Targeting and Market Intelligence 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

28 What about impact? Progress out of Poverty Index by Grameen Foundation 28

29 Example of Measurement Progress out of Poverty Index by Grameen Foundation 29

30 Example of Measurement Progress out of Poverty Index by Grameen Foundation 30

31 Example of Measurement Progress out of Poverty Index by Grameen Foundation 31

32 Example of Measurement Progress out of Poverty Index by Grameen Foundation 32

33 Example of Measurement Poverty Rate (% %) Progress out of Poverty Index by Grameen Foundation 33

34 Example of Measurement Poverty Rate (%) Poverty Rate (%) Progress out of Poverty Index by Grameen Foundation 34

35 Performance Management Program Evaluation Mission Advancement Product Development Progress out of Poverty Index by Grameen Foundation 35

36 Example of Program Evaluation Progress out of Poverty Index by Grameen Foundation 36

37 Example of Mission MISSION ADVANCEMENT Advancement Progress out of Poverty Index by Grameen Foundation 37

38 Example of Mission Advancement Bylaws state that 80% of all customers must be below the $2.50 per day poverty 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

39 Example of Product PRODUCTS AND SERVICES Development Progress out of Poverty Index by Grameen Foundation 39

40 Example of Product Development 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 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

41 PPI Implementation -PPI Implementation Cycle -PPI Standards of Use Progress out of Poverty Index by Grameen Foundation 41

42 PPI IMPLEMENTATION PPI Implementation Cycle Progress out of Poverty Index by Grameen Foundation 42

43 PPI Implementation Cycle Progress out of Poverty Index by Grameen Foundation 43

44 PPI Implementation Cycle 1. Why do you want to use the PPI in the first place? What is 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? Progress out of Poverty Index by Grameen Foundation 44

45 PPI IMPLEMENTATION PPI Standards of Use Progress out of Poverty Index by Grameen Foundation 45

46 PPI Certification Progress out of Poverty Index by Grameen Foundation 46

47 PPI Implementation Wrap-up and Close PPI Fundamentals Progress out of Poverty Index by Grameen Foundation 47

48 Reflecting on PPI Workshop Progress out of Poverty Index by Grameen Foundation 48

49 Get started at Find the PPI for your country 3 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. 4 Progress out of Poverty Index by Grameen Foundation 49

50 This concludes Introduction to the PPI. Thank You. Progress out of Poverty Index by Grameen Foundation 50

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