Measuring Transformation: Assessing and Improving the Impact of Microcredit, PART II – Implementing Impact Assessments and Monitoring Systems: A Practitioner Perspective From Zambia

A paper commissioned by the Microcredit Summit Campaign for the 1999 Meeting of Councils, written by Susy Cheston, Executive Director, Womens Opportunity Fund; Larry Reed, Managing Director, Opportunity International Network; Suzy Salib, Program Manager, Women's Opportunity Fund; Rodger Voorhies, Assistant Regional Director for Africa, Opportunity International Network; and James Copestake, Centre for Development Studies, Bath University-UK.

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Executive Summary

Introduction

Nunya, adidoe, asi metunee o. (Akan and Ewe)
La science est le tronc d'un baobab qu'une seule personne ne peut embrasser (French)
Wisdom is like the trunk of a baobab tree ; no one individual can embrace it. (English)

—Proverb from Benin, Ghana and Togo

This African proverb speaks well to impact assessment-it may seem as intractable as trying to embrace the trunk of a baobab tree. Yet the combined efforts of many can let us accomplish a goal that seems impossible for one or two.

At the 1999 Microcredit Summit Meeting of Councils in Abidjan, Ivory Coast, we went out on a limb and tried to heed this proverbial wisdom. We urged practitioners, donors, consultants and academics to stay focused on our ultimate goal-substantially reducing or eliminating poverty among our clients. We also issued a call to action, challenging practitioners to take the lead and develop impact assessment and monitoring systems that use internal feedback loops to integrate field knowledge into management decision-making. Using the analogy of a financial audit, we outlined the concept of an impact audit that:

• Provides analysis of trends over time and produces results comparable with previous impact data;
• Integrates data collection with the regular information system of an institution;
• Utilizes internal staff with a limited role for external experts; and
• Costs no more than what it costs to track and audit financial information

One year later, we are pleased with significant progress in the industry. The Microcredit Summit Campaign continues to emphasize the issue through the updating of our original paper and by giving the topic priority at regional meetings in Africa, Asia, and Latin America. We also celebrate the publishing of the SEEP-AIMS Draft Impact Assessment Manual funded by USAID , the full-scale implementation of the tools in the Philippines and Peru, and the recent training sessions offered in the US and Kenya. We applaud the Ford Foundation for joining this effort with a new three-year grant project to assist practitioners in achieving their impact assessment goals. And we laud the renewal of the SEEP Impact Working Group to promote peer-learning exchanges. Together these efforts demonstrate that, just as one individual can't embrace a baobab tree, practitioners can't create these systems alone. Donors, practitioners, academics and consultants each have important roles to play.

In this updated paper, we want to further focus on practitioners by asking, "what does impact monitoring look like from a practitioner's perspective?" We readily recognize that there is no single answer, no "magic bullet" that will meet the needs of everyone. In fact, different combinations of tools and systems are appropriate in different contexts and for different purposes. But we want to examine how managers can use impact assessment and monitoring as essential tools for decision-making and organizational learning.

To that end, we will take a look at one practitioner in the early stages of pioneering an integrated impact monitoring approach that, while still under development, embodies the kind of practitioner-led teamwork we recommend. The Christian Enterprise Trust of Zambia (CETZAM) has worked closely with its primary donor, the British Department for International Development (DFID), to develop a system that is well integrated into its regular operations. Its experience has been specific to a particular set of needs as it embarks on a national expansion plan, with a goal of creating a system that provides good information to support good decision-making. But while the findings are still preliminary and the system is still evolving, CETZAM's experience may offer some insight into common issues facing many practitioners. Some of our questions will include:

1. How did CETZAM customize and implement its impact assessment and monitoring tools?
2. What are the initial findings and how has management used them to make better client-focused decisions?
3. How cost-effective are these efforts? How do they compare to the guidelines for an impact audit?
4. What lessons has CETZAM learned along the way? What challenges remain?

CETZAM has learned just as much, if not more, from the process of developing and implementing an impact monitoring system as it has from the preliminary findings. Therefore we hope that by sharing CETZAM's experience, other practitioners can also learn from this process and consider how to use impact assessment and monitoring as an essential management tool in better serving clients, staying competitive and fulfilling their mission to reduce poverty.