Microfinance Focus, December 20, 2011: Grameen Foundation has entered into a collaboration with Technical Assistance provider M2i to help microfinance institutions implement poverty measurement and management tool - the Progress out of Poverty Index (PPI).

M2i plans to integrate the PPI in its current set of offering that include Social Performance Management, Risk Management as well as Project planning and execution.

PPI enables pro-poor organizations to measure if they are reaching and helping the poor, and allows them to better determine their clients’ needs, effectiveness of programs, movement out of poverty, and identify indicators that make the movement out of poverty faster.

Both Grameen Foundation India and M2i believe that MFIs as well as other development focused organizations need to track the movement of their clients out of poverty in order to fulfil their social mandates.

“We will not only help organizations to implement the PPI operationally, but will also help them to analyse PPI data, develop reports and use it in their decision-making process. We look forward to working closely with Grameen Foundation India to help MFIs become more client-centric and use a data driven approach to measuring social performance, through the use of tools such as the PPI”, said Deepak Alok, Partner at M2i.

"Grameen Foundation India is pleased to be working with a Technical Assistance provider like M2i, and welcome them as the latest service provider for the PPI. We believe that with its experience and professional team, M2i can help in promoting the use of PPI among MFIs and double bottom line, pro-poor organizations in India and abroad. With the growing demand for a data driven approach to social performance management, and the need for client centric products and services, the PPI with its client level measurement of poverty is a very effective tool that allows organisations to know their clients better and hence make a better impact." said Chandni Ohri, CEO at Grameen Foundation India.

Several stakeholders, including investors such as Michael and Susan Dell Foundation and Dia-Vikas have integrated the PPI in their SPM initiatives and reporting. Over 16 MFIs in India are using the PPI for the purpose of poverty profiling of their clients and also to measure their movement out of poverty.

M2i’s product portfolio includes Code of Conduct Assessment, Social Performance Management, Loan Portfolio Audit, market research and trainings. Clients of M2i include bilateral and multilateral funding agencies, banks, NGOs and MFIs.