PPP offers execution of Long Term Institutional Strengthening Projects like including reengineering, focusing on specific areas like decentralization, lending efficiency, product development, market research, training, capacity utilization and cost and risk management analysis.
Global crisis (2009) has put into the light the weaknesses and shortages of MFIs in order to face the lack of funding, exigency of the market and investors of greater productivity and efficiency, increasing competition and risks.
MFIs are not used to crisis mode. Many CEOs were perfect for growth and vision but now funds face new situation and don’t have the infrastructure to support an MFI in trouble. New easy solutions could be bottom fishing or immature copies of textbook cases. As Public perception on Microfinance and experts established: “King is naked”.
While this Crisis is harder than most before, You can only win if you act NOW!
PHASE 1: Improving Processes, identify, analyze and reduce Expenses
Aiming for Perfection…areas of reengineering:
PPP has developed a tool for carrying out a complete process mapping per product and branch. Gathering qualitative and quantitative information with the interview activities, we can identify inefficiencies, operational risks, bottle –necks, product design and client’s attention problems, human resources necessities, etc.
PHASE 2: Educate, training staff, board and managers
PPP offers a modular training program according to the necessities and capacity of each MFI. Distinguished international experts work with us. A precise benchmarking is carried out in order to compare MFI results among their peers.
PHASE 3: Business Combinations
PPP assist MFIs reporting institutional diagnosis and opportunities to improve current situation, reviewing the strategic plan, policies and resources (HHRR, MIS, Governance) for board and investors.
PHASE 4: Centralization/Decentralization projects
MFIs in their growing process face one of the most important question: ¿When it is appropriate to make the decision to decentralize? Many MFIs make the decision after analyzing the benefits and costs of the process.
In general, it is advised to decentralize when the motivation and creativity of many people is critical. This principle can become critical when MFI is dealing with a rapid growth.
PPP help financial institution to answer the question: How to determine which functions to decentralize?. PPP can work together with MFI in order to: Identify the functions decided to decentralize; Define scale, risk and cost (low, mid, high); Detail the tasks per decentralized function that Branch Managers and Loan Offices have to perform at branch level; Identify the person responsible in HQ of controlling the work quality.
As one important characteristic of any decentralization process is its gradualism, PPP offers design a tailored plan for MFI according its necessities, internal capacities and base in our experience and previous benchmarking with peers we suggest tasks, responsible and potential coaching assistance.