BANKSETA MICRO-FINANCE
SKILLS PROJECT
BS/T/LPRD 40-48/QT/CON006
Learning Programme
Resourcing and Development
(micro-lenders)
BANKSETA: MFSP: Presentation Final Version:
17 December 2002: BS/T/LPRD 40-48/QT/CON006:
Orolatele International Consulting (Pty) Ltd
1
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
2
Introduction
Target Market
This project development phase is aimed at
Short Term Lenders Delivery Phase 1
where 200 micro lenders and their Staff will participate
Project Process
The learning programme resourcing and development project focuses on the
verification of the curriculum, development of learning pathways, sourcing and
analysing existing learning interventions to establish gaps and then develop a
business case
3
Introduction (cont)
• Designed a survey questionnaire
• 91 institutions contacted via email, fax, telephone,
face to face interviews
• 44 responded and from these responses the top six
priorities were verified and also identified future needs
Verified Curriculum
(40)
Annex A, B & D
•
Learning Pathways
(41)
Annex C
• develop learning pathways for MFI staff –
matrix of skills against job types, manager,
front office and back office
• developed learning pathway from foundation level to
management level focusing on the to six priorities
• identified NQF levels
• identified learning modules and flow of each priority
for job types of manager, front office and back office
Source Existing
Programmes
(42)
Annex D
• source existing programmes in consultation
with stakeholders
• 82 service providers were approached for available
programmes for the top six priorities
• designed document with quality assurance criteria for
service providers to complete
Analysed Existing Learning
Interventions (43)
Annex G
• analyse existing learning interventions and
resources, as per training provider profiles,
offerings and capacity
• service providers completed document with QA details
• existing programmes received from some service
providers – most reluctant to give learning material
• above information used to analyse interventions
Identify Gaps (44)
Annex G
• determine gaps in skills identified for top six
priority areas of curriculum for Micro-lenders
• analysed information received from service providers and
it seems as though there are no gaps
QA Criteria (45)
Annex G
• establish quality assurance criteria for existing
learning programmes
• developed quality assurance criteria
• verified with PSC
Business Case (48)
Annex H
• Collate business case (including Incentives) for
MFI curriculum
• various recommendations for a business case developed
• business impact questionnaire to evaluate success of
project
verify curriculum framework from design
phase with identified stakeholders
4
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
5
Curriculum Verification
1.
2.
3.
4.
5.
6.
Client Service
Risk Management
Loan Book Management
Marketing
Cash Management
Staff Management









Communication
Personal Development
Finance
Client Administration
Business Strategy
Management Development
SMME
Leadership Development
Legal & Regulatory Compliance
this sub activity requires identification
of the top five priorities but we
recommend, it is imperative to include
Staff Management therefore
top six priorities
Comment
MLA registered MLB’s felt they
needed less Staff Management Skills
Non MLA registered MLB’s felt
they needed Staff Management Skills
See Comments Annexure D
Supported by report annexure A & B
6
Recommendations
Staff management was identified as priority 6
We believe that staff management skills are
required to ensure the success of the
implementation of this
Micro-Finance Skills project
(this was confirmed at the Consultative
Forum and by Glen Baker of Miloc)
7
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
8
Learning pathways / development ladder
The learning pathway outlines the skills required at various levels within Micro finance
businesses. An employee should have the foundation skills level at time of employment or
alternatively if they are school leavers they will start at this level. Employees should
complete modules related to Back and Front office before they advance to the
Management level.
• Foundation Skills or entry level skills are the basic skills required to perform the job
• Back and Front Office these are skills required to perform competently within
the Micro finance office to service clients effectively and meet all the necessary legal
requirements of the industry
• Management these skills are required to manage a Micro finance office
It is important to note that if a specific office may not require certain skills because of the
nature of their operation (e.g. no cash in office only electronic transfers), then the specific
module will not apply.
Slides 8 to 19 highlight the flow of the modules which should be included in the
development material. This is important when Prior Learning is to be evaluated.
It will also assist with the identification of learning interventions from service providers
related to Project 009.
9
Learning Pathways / Development Ladder
Supported by Annexure C
Manage
Risk &
Fraud
Management
Manage
Loan
Book
Manage
Cash
Market
Products &
New
Business
Set & Adhere
to Policies
Procedures
Manage
Client
Service
Managers are required to
complete courses below or
have prior learning in the area
before completing learning path
at this level
NQF Level 5
Front Office
Manage
Cash
Back Office
Foundation
Skills
Basic
communication
Data Capture
& Repayments
For Loan Book
Basic
Product
Knowledge
Balance
Cash
Apply
Product
Knowledge
Basic Client
Service
Skills
Identify
needs &
Provide
solutions
Serve
Internal
Clients
Knowledge
Risk/Fraud
policy &
procedure
Handle
Conflict
Basic
Marketing /
Selling Skills
This level can be done by
by both Front office and
Back office as these tasks
can be done by one person
NQF Level 4
Check
application for
Compliance &
Accuracy
Apply policies
& procedures
to
application
Capture
Data
This level can be done by
by both Front office and
Back office as these tasks
can be done by one person
NQF Level 3 – 4
Understand
client needs
(Marketing)
Entry level must
complete before able
to move to next level
NQF level 2 – 3
10
Client Service - Management
Pre-requisite Front & Back Office Skills
Understanding Usury Act / MRFC rules and guidelines
Supporting team
members to ensure
client excellence
Managing / handling
difficult clients /
conflict
Mentoring / coaching
staff to handle client
requests
Understanding various
roles within service
delivery chain
Develop / setting service
level agreements with
internal service
providers team
Setting client
service standards
with your team
Set the
service cycle
Negotiating
with clients
Create an environment
for continuous
improvement within
client service area
Building
relationships
Making
decisions
Working as a
team
Introduce new
products to
clients
11
Client Service - Front & Back Office
(This can be one role)
Product knowledge
•loan information
•rescheduling of loans
•Understanding Usury
Act and MFRC rules
and guidelines
How to link
business principles
to customer service
(profit)
Client service
standards
Understand my role
in the service
delivery chain
Basic
communication
interpersonal
skills
Telephone
etiquette
Understand my role
for service to an
internal customer
Basic problem
solving skills
Educating
your client
Understand client
requirements and link
product to satisfy
client need
Basic
analysing skills
How to refer
angry / difficult
customers
12
Risk Management - Managers
Understand and
implement
security risk
Understand and
implement
business risk
Develop / set
/implement fraud
management
policies &
procedures in line
with MFRC
Identify business
risks
•Interest impact
•Risk clients
•Bad debts
Coach staff in
policies / procedures
for fraud / risk
management
Do risk analysis on client
base to determine
possible risk areas
•Risk analysis
•Problem
•Situation analysis
Understand Macro and
Microeconomic risk
Set credit
limit
standards
Implement fraud /
risk management
policies &
procedures
Make final decision
of client’s credit
worthiness
13
Risk Management - Front & Back Office
Knowledge of
fraud & risk
management
policies &
procedures
Apply policy &
standards of
credit limits
for client
Complete
application
fully to
eliminate
risk areas
Implement fraud /
risk management
policies &
procedures
Apply policies &
procedures
to application
Understand
implications of interest
rate change & be
able to explain
to customer
Make
recommendation
to manager
14
Loan Book Management - Managers
Loan Book
Reconciliation
Managing loan book,
tracking arrears and
analysing various risk
aspects (e.g. risk of
non-recovery by age,
willing or unable
non-payers etc)
Bad Debt
Recovery
Process
Loan Book Strategy and
Management linked to
Risk Management
and Cash Flows
Interest
Calculation
Debt Collector
Appointment and
Management
15
Loan book Management –
Front & Back Office / Debt Collectors
Loan Book
Data Recording
Collection of installments
Issuing of receipts
16
Marketing Skills – Management
Competitor
Analysis
Shape
Selling for Success
Development of
Marketing Plan
New Product / Service
Needs Identification
Development of
New Products /
Services
Development of
Marketing Materials
17
Marketing – Front Office
Basic Marketing /
Selling skills
18
Cash Management - Manager
Set policies &
procedures for
daily management
of cash
Coach / mentor
cashiers on recording
of transactions
(issuing of receipts)
Set policies &
procedures for cash
amounts on premises
- securing premises
Assist front office
staff (cashiers) when
they are out of
balance
Control cash
floats on
premises
Control / verify
cashing up /
balancing of
front office staff
19
Cash Management - Front & Back Office
Knowledge &
skills of
handling cash
(deposit &
withdrawals)
Balancing / cashing
up of cash
Daily
(Teller Workshop)
Apply the policies
& procedures to
manage
cash floats
Advise management
of excess cash
on premises
20
Staff Management - Managers
Develop a recruitment
& selection policy
Develop a Performance
Management process
Manage the performance
Establish disciplinary /
grievance procedures
Implement policy /
procedure as per LRA
Train staff
Source training
service providers
Identify training /
development needs
of staff
Manage disciplinary
process hearings,
dismissals and CCMA
Develop / implement
reward / recognition
for employees
Coach/mentor/counseling
staff to ensure max
performance is reached
& individuals potential
is reached
of staff
Managing change
process
Identify change
elements
Working as a
team
21
Staff Management - Front & Back Office Staff
Understand
disciplinary & grievance
procedures
Understand Performance
Management process Manage own performance
Being a team
player / member
Understanding training
Needs and Requirements
Understand impact
of change
22
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
23
Existing Programmes Sourced
Annexures E & F
Process followed to identify existing programmes:
• Service providers were requested to forward relevant programmes / interventions for
the six top priorities as per the verified curriculum
• A further document was designed and forwarded to service providers to assess how
quality assurance criteria was met
• 82 service providers were contacted via email, fax or face to face, refer Annexure E
• There are programmes for all six top priorities as per the curriculum form various
service providers
• Some service providers were eager to forward all their details and training materials
others were reluctant.
• All available learning interventions with service providers are listed in Annexure F
• All documentation handed over to Kagiso
24
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
25
Existing Learning Interventions
Analysed
Process followed to analyse existing learning interventions:
• All information received from service providers was analysed
• Evaluated programme material received
• Analysed Quality Assurance Criteria documentation
Annexure F & G
26
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
27
Gaps Identified
Process followed to identify the gaps in programmes:
• 83 service providers were requested to send information about all the available
programmes for all the competencies on the curriculum
• Some service providers forwarded their training material to be evaluated
others opted not to do so, which made the identification of gaps difficult
• A second set of information was requested from service providers
to identify which programmes met the quality assurance criteria for the
top six priorities
• Using the available training materials and the QA Analysis document the
gaps were identified, refer to Annexure F
• Slides 29 – 34 is a summary of the information found in Annexure G,
QA documentation is available for perusal
28
Gaps Identified
Client Service
Curriculum Modules
Service Providers Programmes
Evaluated / QA Only / Programme Outline
• Client Request Resolution
• Product and Service
Knowledge
• Client Acquisition and
Retention Strategies
• Client Education and
Coaching
• Client Service Improvement
Delivery Channels
• Theory self study guides
• Face to face modular sessions
• Workshops in classroom
• Managers trained as trainers
• Managers train modular sessions
• Managers coach on the job
• Computer based training / distance
Strategem Training Services
Matsimela & Associates
Mastermind Alliance (designed for MFI)
Huthwaite Africa (developed for JD Group)
Miloc Holdings (designed for MFI)
Kagiso
Pula Madibogo
Pure Consulting
Progressive Concepts
Mahayi HRD Services
Orolatele International Consulting
Thipe Mdakane & Ass
International Institute for Business Training
Upendo
Unlimited people
Cornerstone Solutions
College for Competence 2000
Training Chain
Kevin Midgley
Sydney Thipe
U Can
Karura
Brain
Kenya School of Monetary Studies
Microsave Africa (Internet)
AFCAP / CCAP (Internet)
Gaps and comments /
recommendations
 Programmes evaluated
both within the Micro finance
industry and generic skills
indicate that all aspects of
client service are covered
between these consultants.
 Should a consultant be
identified with a generic
programme, customisation
for the Micro finance industry
could be done.
 No visible Gaps in this
area
29
Gaps Identified
Risk Management
Curriculum Modules
Service Providers Programmes
Evaluated / QA Only / Programme Outline
•
•
•
•
Fraud Management
Risk Management
Risk and Return Analysis
Client Credit Limits
Delivery Channels
•
•
•
•
•
•
•
•
•
Theory self study guides
Face to face modular sessions
Workshops in classroom
Seminars via Associations (MFRC)
Managers trained as trainers
Managers train modular sessions
Managers coach on the job
Mentoring
Computer based Training / distance
Watchurst & Associates
Mastermind Alliance (designed for MFI)
Miloc Holdings(designed for MFI)
International Institute for Business Training
Upendo
Cornerstone Solutions
College for Competence 2000
Kevin Midgley
Kenya School of Monetary Studies
Karura
Microsave Africa (Internet)
AFCAP/CCAP (internet)
Gaps and comments /
recommendations
 Programmes evaluated
have specifically been
designed for the Micro
finance industry
 No visible Gaps in this
area
30
Gaps Identified
Loan Book Management
Curriculum Modules
Service Providers Programmes
Evaluated / QA Only / Programme Outlines
•
•
•
•
•
Loan repayments
Loan book Reconciliation
Bad Debt Recovery Process
Interest Calculation
Debt Collectors Appointment
and Management
Delivery Channels
•
•
•
•
•
•
•
•
•
Theory self study guides
Face to face modular sessions
Workshops in classroom
Seminars via Associations (MFRC)
Managers trained as trainers
Managers train modular sessions
Managers coach on the job
Mentoring
Computer based Training / distance
Mastermind Alliance (designed for MFI)
Miloc Holdings (designed for MFI)
International Institute for Business Training
Upendo
Cornerstone Solutions
Stanley & associates AETA / E degree
College for Competence 2000
U Can
Kevin Midgley
Karura
Kenya School of Monetary Studies
AFCAP
Microsave Africa (Internet)
CCAP (Internet)
Gaps and comments /
recommendations
 Programmes evaluated
have specifically been
designed for the Micro
finance industry
 No visible Gaps in this
area
31
Gaps Identified
Marketing
Curriculum Modules
Service Providers Programmes
Evaluated / QA Only / Programme Outline
• Competitor Analysis
• Marketing Plan Development
• New Products / Service
Development
• Marketing Materials
Development
• New Product / Services
Needs Identification
Delivery Channels
Theory self study guides
• Face to face modular sessions
• Workshops in classroom
• Seminars via Associations (MFRC)
• Managers trained as trainers
• Managers train modular sessions
• Managers coach on the job
• Mentoring
Mastermind Alliance (designed for MFI)
International Institute for Business Training
Thipe Mdakane & Associates
Orolatele International Consulting
Mahayi HRD Services
College for Competence 2000
Colela International Consulting
Sydney Thipe
U Can
Training Chain
Gaps and comments /
recommendations
 Programmes evaluated
both within the Micro finance
industry and generic skills
indicate that all aspects of
client service are covered
between these consultants.
 Should a consultant be
identified with a generic
programme, customisation
for the Micro finance industry
could be done.
 No visible Gaps in this
area
32
Cash Management
Curriculum Modules
Gaps Identified
Service Providers Programmes
Evaluated / QA Only / Programme Outlines
• Cash Management
Procedures
• Security Policies and
Procedures
Delivery Channels
•
•
•
•
•
•
•
Theory self study guides
Face to face modular sessions
Workshops in classroom
Managers trained as trainers
Managers train modular sessions
Managers coach on the job
Distance
Mastermind Alliance (designed for MFI)
Miloc Holdings (designed for MFI)
International Institute for Business Training
MGC
College for Competence 2000 (designed for MFI)
Kevin Midgley
First National Bank
Karura
Microsave Africa (Internet)
Gaps and comments /
recommendations
 Programmes evaluated
have specifically been
designed for the Micro
finance industry
First National Bank have
made their programme
available, needs
customisation for the Micro
finance industry.
 No Gaps in this area
possible customisation
33
Gaps Identified
Staff Management
Curriculum Modules
Service Providers Programmes
Evaluated / QA Only / Programme Outline
• Performance Management
• Reward and Recognition
Management
• Business Process and
Systems Improvement
• Recruitment & selection
• Training Needs Analysis
• Grievance & Disciplinary
Policies and Procedures
Delivery Channels
•
•
•
•
•
•
•
Theory self study guides
Face to face modular sessions
2 day workshops in classroom
Managers trained as trainers
Managers train modular sessions
Managers coach on the job
Distance
Mastermind Alliance (designed for MFI)
Huthwaite Africa
Miloc Holdings (designed for MFI)
Unlimited People
Orolatele International Consulting
International Institute for Business Training
L R Consulting
Mahayi HRD Services
Informage
Training Chain
Intellectual Resources
Upendo
Strategem
Pure Consulting
Thipe Mdakane & Associates
Sydney Thipe
Colela International Consulting
College for Competence 2000
Karura
Microsave Africa (Internet)
Gaps and comments /
recommendations
 Programmes evaluated
both within the Micro finance
industry and generic skills
indicate that all aspects of
client service are covered
between these consultants.
 Should a consultant be
identified with a generic
programme, customisation
for the Micro finance industry
could be done.
No visible Gaps in this
area
34
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
35
Quality Assurance Criteria






Material written to meet NQF standards or at least outcomes based
NQF level
Modular format
Learner guide
Facilitator guide
Train the trainer/ Manager
Able to train managers so they can train staff - on-the-job or 2-3 hours
workshops
 Delivery mechanisms
e.g. video’s, self study guides, face to face training, electronic manuals,
news letters via MFRC & MLA.
Combination of learning channels or multiple delivery channels.
Flexible and experiential
 Management support e.g.Coach / Mentor
 Costs of workshop
36
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
37
Business Case
Definition of the Business Case : Provides support for any business decisions,
analyses individual business situations and outlines
options / recommendations
Purpose of the Business Case : Identify key business drivers and success factors
Justification for a business decision, which can be
easily communicated
Establish a method for measuring success
Critical Success Factors
: Determine need for project amongst Micro Lenders
Communicate purpose, process and benefits
Owners need to buy in to project
Owners / Mangers attend briefing session to be
equipped to assist, coach and mentor delegates
Staff Management competencies to be trained first
Managers to participate in intervention first
Linking of learning outcomes to the Performance
Management system
Project supported by Associations
38
Business Case (1)
Business Case Benefits / Selling Points
Recommendations only
Owners / Managers
Front / Back office staff
Increased skills of self and staff
Improved customer relations
Growth of business through new customers
Competent staff
Multi-skilled staff
Cost effective training
Improved cost effectiveness in business
• reduced turnaround times
• productive staff
• increased customer base
• cross selling
• repeat good business
Better educated clients
Credits towards a Formal Qualification
Personal development
Recognition of prior learning for individuals
Increased skills
Multi-skilled
Increased product knowledge
Increased confidence
Better client service
Cross selling opportunities
Educating of clients
Assessment and certification
Credits towards a Formal Qualification
Incentives for Owners / Managers
Micro financier of the Month / Year
Cost effective training
Reward – Financial, Voucher, Night away
Incentives for Staff
Badge when assessed and certified as competent
‘ licensed to assist you’
Employee of the Month / Year
Reward – Financial, Voucher, Day off
39
Business Case (2)
Business Case Flow Chart
Recommendation Only
Business Owners invited to
Communication session to
Introduce process
Workshop for Owners /
Managers on PMP and
Needs identification
Consider RPL of individuals
Select learners
Learners to
Attend/ complete Intervention
Owners / Managers
attend briefing session
per Intervention
Schedule learners for
Interventions
Feedback given
during intervention and
On-the-job by Manager
Coaching for further
development in the
Workplace
Feedback via Performance
Management Process
both informal and formal
Evaluation and
giving of Incentives
Certificate of Competence
Awarding of Credits
Assessment
Business Impact Questionnaire
to evaluate impact of
Intervention (see annexure H)
Evaluation of impact
questionnaire and report
formulated
Feedback to PSC
and stakeholders
40
Business Case (3)
Investment estimated
Time of Owner/manager to attend
briefing sessions and staff
participating in learning
intervention
Effort planning, scheduling and
organising for participation in
learning interventions
Buy-in by Business Owners and
visible support given to the project
Communication initial and
What will be done
Return on Investment
(benefits)
Recognition of prior
learning / competence
Business Benefits
Identification of training
needs and designing
individual development
plans
Certified staff
Training and Development
scheduled
Learning
Competent staff
Assessment results
Performance Management
process implemented
Improved profits
Improved client service
ongoing
Assessment
Token fee for learning
Coaching / Mentoring
Better advice given to clients
therefore improved lending
opportunities
intervention (between R100 and
R50 per learner per day)
Moderation
Individual Benefits
Accreditation
Prior learning recognised and
credits awarded
Learning environment set-up
(e.g. Technology, support,
mentors, assessment)
Certification
Assessors
Business Impact
Questionnaire
Formal qualification or credits
towards a formal qualification
41
Business Impact Questionnaire
The questionnaire will:
•
•
•
•
•
•
•
Enable team to evaluate the impact of the Micro Finance Skills Project
The degree of success in achieving objectives
Level of transference of skills acquired on the job
Indicate the level of improvement during the last few months
How the Micro Lending Business have benefited from participating in the project
Reflect on specific business accomplishments
Determine return on investment
See annexure H, which needs to be customised
42
Contents
•
•
•
•
•
•
•
•
•
Introduction
Verified Curriculum
Learning Pathways
Existing Programmes Sourced
Existing Learning Interventions
Analysed
Gap Identified
Quality Assurance Criteria
Business Case
Recommendations
43
Future Needs (relating to training)

Business Strategies
Business Strategy Development
Industry Analysis

Leadership
Cover areas of general leadership skills, change management as
well as leadership development for non-managers

Personal Development
Time management, problem-solving and decision making
creativity and innovation, emotional intelligence,
stress management and career management
Refer to comments Annexure D
44
Orolatele
International Consulting (Pty) Ltd
Reg. No. 99 06938/07
Tel: + 27(0)12 6538310
Fax: +27(0)12 653 8310
PO Box 56045
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0149
45