Launch_Executive_Summary

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					DESIGN PHASE EXECUTIVE
       SUMMARY
       MAY 2002

                       Design Phase
                  Executive Summary
                           9 May 2002
                                                                                                       Agenda

                                  Agenda Item                                    Resp.           Time

     1. Project Approach                                                   Wendy Pienaar       5 min
     2. Lender and Consumer Survey Summary                                 Wendy Pienaar       5 min
     3. Business Development Support Assignment                            Alicia Greenwood   15 min
     4. Curriculum Framework Assignment                                    Brent Davids       15 min
     5. Selection Assignment                                               Wendy Pienaar       5 min

     6. The Way Forward                                                    Wendy Pienaar       5 min

     7. Breakout Instructions                                              Heather Watson      5 min




Note: slides represent Accenture's recommendations based on findings
from research and stakeholder consultation                             2
                                 Overview of Design Phase Assignments
Over a period of approximately 9 weeks, the project team has been tasked with
3 assignments
 Assignments   Assignment Description

 Curriculum     Develop a Stakeholder Capacity Plan to increase awareness, interest and
 Development     understanding of skills development legislation and this project
 Assignment     Identify core and generic skill needs of micro-financiers and borrowers
                Develop a Curriculum Framework
                Create an Implementation Plan for curriculum framework
                Establish Curriculum and Consultative Forums
 Business         Develop BDS Consultation Reports
 Development      Identify existing BDS programmmes
 Support          Review of Best Practices
 Assignment
                  Develop a BDS Strategy
 Selection      Develop Selection Criteria and Selection Processes (micro financiers, borrowers)
 Process        Develop a Profile for training providers
 Assignment     Develop Contract Outlines for micro financiers and training providers to be involved in
                 the process going forward

     The project team has adopted a consultative approach involving as many
                            stakeholders as possible
                                                 3
                                                                         Agenda

                 Agenda Item                      Resp.             Time

1. Project Approach                          Wendy Pienaar       5 min
2. Lender and Consumer Survey Summary        Wendy Pienaar       5 min
3. Business Development Support Assignment   Alicia Greenwood   15 min
4. Curriculum Framework Assignment           Brent Davids       15 min
5. Selection Assignment                      Wendy Pienaar       5 min

6. The Way Forward                           Wendy Pienaar       5 min

7. Breakout Instructions                     Heather Watson      5 min




                                        4
                                                              Lender Survey Methodology
Aim
     Clarify the key behaviours and skills required for the micro finance industry
     Identify key skills gaps and approaches to close these gaps
     Identify areas of priority training requirements
     Provide the basis for more detailed skills and competency framework development

       Assessment tools evaluated                    Approach
           Web-based survey
 Approach


     Sample of respondents obtained
                                               Survey live from 2 to 10 April
                                                          (8 days)                        Reports drawn
                                                                                        from database and
      Survey questions formulated                                                          data analysis
         English and Afrikaans                                                             conducted
                                              Targeted audience telephoned
                                                and sent e-mail reminders

     Web-based survey and back-end
           database created



         Response rate strategy
              formulated
                                                        5
                                                        Respondents Demographics
A response rate of between 14% - 25% was obtained for the different survey
areas. As expected, the majority of respondents were male, white and had at
least a matric or more

   Gender                      %                           Educational Level             %
   Male                          79                        Secondary School (Matric)     32.7
   Female                        21                        Secondary School (Other)      5.4
   Race Groups                  %                          College                       11.9
   Asian                         0.5                       Technikon                     13.4
   Black                         4.4                       University                    21.3
   Coloured                      2.9                       University / Technikon Post   15.3
   White                        92.2                       Graduate


    The majority of the survey respondents were white males (79.4%)
    Almost a third of the respondents had at least a matric level of education (32.7%)
    More than a third of the respondents (36.6%) had received undergraduate and postgraduate
     qualifications
    Asians, Blacks and Coloureds made up 7.8% of the total population

                 Respondents were predominately managers/owners

                                                   6
                                                                                Organisation Type
Short-term micro-financiers made up the majority of the respondents
  Type of Organisation         # Resp   % of Resp   Average #              Type of Organisation
                                                    Branches
                                                                                     Retailer
  Short-term micro financier    166       82.4          11                                      Housing Fin
                                                                               NGO   RFI
  Long-term micro financier      17        8.3          6               Bank

  Banks                          -          -           -
  NGO                            5         2.5          4       Long term MF

  RFI                            6         2.9          2
  Retailer                       1         0.6          1
  Housing                        7         3.4          5
                                                                                                        Short term MF
  Total                         204       100%         n/a


 The majority of respondents were from short-term micro financiers and numbered 166 in total
 The number of branches ranged from 1 to a maximum of 120 with an average of 5 branches for all micro
  financierss
 None of the banks responded to the survey, despite having been included in the survey sample


    Additional surveys were sent to type of organisations that did not have a high
                                    response rate
                                                         7
                                                                                Operating Model
The biggest reason for success was stated as having well trained staff, whilst
the biggest challenge was not being able to retain customer’s cards & PIN’s

  Success Factors                               Biggest Challenges

  Top 5 reasons for success in the industry     Top 5 challenges faced by micro financiers

  1.   Trained staff                            1.   Card & PIN used for collateral

  2.   Good service                             2.   Regulation of entire industry

  3.   Effective credit control                 3.   Debt recovery

  4.   Committed management                     4.   Education of clients

  5.   Personal relationships built on trust    5.   Minimisation of bad debt




        Success for micro financiers is largely attributed to combining effective
              management with well trained staff,offering good service
                                                8
                                                                                            Training Analysis
Less than a third of respondents currently run training programmes while less
than half of respondents indicated that they plan to implement training in the
future
  Formal Training Programs

  Current                                                            Yes        No
  Micro financiers using formal training programmes                  30.58 %    69.41 %

  Future                                                             Yes        No
  Micro financiers planning to implement training programmes         41.97 %    58.02 %


  Approach to Training


  Training approach used                                   Very         Effective   Somewhat      Not effective
                                                         effective                   effective
   Classroom training                                    8.33 %         19.04 %      14.28 %       46.42 %
   Distance learning                                     2.8 %          16.90 %          21 %      59.10 %
   Coaching                                             16.57 %         21.90 %          4.1 %     27.39 %
   Mentoring programmes                                 14.51 %         19.35 %      11.29 %       70.96 %


    On the whole, current training approaches do not appear to be very effective
                                                               9
                                                Business Development Support
Marketing / industry Information is cited as the number one requirement for
future BDS initiatives
 Future BDS initiatives                              BDS Delivery Mechanisms
 The top priorities and requirements for             The most popular methods of delivering
 future business development support       %         business development support are         %
 initiatives are:                                    through:
 1.    Marketing / industry information    78        1.   Telephonic advice                   28
 2.    Business process improvements       74        2.   Advice centres                      25
 3.    Business planning                   74        3.   Classroom training                  23
 4.    Business analysis                   74        4.   On-the-job                          17
 5.    Management reporting                57        5.   Seminars                            13
 6.    Financial / accounting              51        6.   Training via email                  11
 7.    Administration                      43        7.   Mentoring                            1
 8.    HR / staff planning                 43        8.   Training via the internet            0
 9.    Internal auditing                   39
 10.   Network / referrals                 31
 11.   Technology assistance               8



       Future BDS initiatives should be centred around strategic business
  management and should be available through multiple distribution channels for
                               maximum exposure
                                                10
                                                                                      Skills Methodology
For ease of interpretation and comparison, the original survey point scales were
normalised to a 100% scale
                                                             • ‘Level of Importance’ was answered on a scale
                   Original                                    from 0 to 4. This score was divided by 4 and
  Response                               New Scale             converted to a %
                    Scale
                                                             • ‘Skill Level’ was answered on a scale from 0 to 3.
                                                               This score was divided by 3 and converted to a
                0 = not applicable   0% = not applicable       %
                1 = not important    25% = not important     • ‘Training Received’ – all ‘Yes’ responses were
    Level of
                2 = important        50% = important           added and converted to a percentage of total
  Importance
                3 = very important   75% = very important      responses
                4 = critical         100% = critical                          Skill Area
                                                                        100                         Critical/expert
                                                                         90
                                                                         80     Importance
                0 = no experience    0% = no experience                                             Very important
                                                                         70




                                                              Percent
                1 = beginner         33% = beginner                                                 Skilled
  Skill Level                                                            60           Skill Level
                2 = skilled          67% = skilled                       50                         Important
                                                                         40
                3 = expert           100% = expert                                                  Beginner
                                                                         30
                                                                                                    Not important
                                                                         20
                                                                         10             Training
  Training
                Yes/No               % ‘Yes’                              0                         Not applicable/no experience
  Received                                                                    Skill




                                                        11
                                                                                         Summary -
                                                                              Management Skill Areas
  Risk management is perceived to be the most important skill area by micro
  financiers
                                    Summary of Skill Areas
          100                                                                     • The top 5 areas of importance are
           90                                                                       ‘risk management’, ‘loan book
                                                                                    management’, ‘client service’, ‘legal
           80                                                                       and regulatory compliance’ and ‘cash
                                                                                    management’
           70
                                                                                  • SMME lending is seen as the least
           60                                                                       important skill area by micro
                                                                                    financiers, possibly because so few
Percent




           50                                                                       micro financiers lend to SMMEs
           40                                                                     • It is not surprising to see risk and loan
                                                                                    book management as the top skill
           30                                                                       areas
           20                                                                     • The importance of client service may
                                                                                    be driven by the highly competitive
           10                                                                       industry and the need to acquire and
                                                                                    retain customers
            0
                                                                                  • The r-squared of training vs. skill level
                                                                                    is 0.58 indicating that 58% of the
                                                                                    variation in skill levels is attributable
                                                                                    to the number of respondents who
                                                                                    have received training, whilst the
                                                                                    other 42% of the variation is
                                                                                    determined by other factors (for
                                                                                    example: experience)
                   Importance (%)     Skill Level (%)   % Received Training

           High importance areas with low skill levels and a low % of trained respondents
                     should be high priority areas for future training initiatives
                                                               12
                                                                                                           Skills –
                                                                                                  Risk Management
  The overall importance of risk management is 84% whilst the reported skill
  levels average 64% and 21% of respondents have received training in this area

                                     Risk Management
      100
                                                                                        Overall, risk management is rated as
                   87
           90
                                     84                83               83               the most important skill area by micro
           80                                                                            financiers
           70                                                62
                                                                                68      The importance of the four risk
                         63               61                                             management skills were similarly rated
Percent\




           60
                                                                                         by micro financiers (83%-87%), as were
           50                                                                            the levels of expertise (61%-68%)
           40                                                                           The fewest respondents had received
           30                                                                            training in fraud management (16%)
           20                                                                           Most respondents had received training
                                                                                         in ‘risk and return analysis’ (24%)
           10
                                                                                        Client credit limits are an important skill,
           0
                    Fraud             Risk           Risk and Return   Client Credit
                                                                                         as this limits the danger of borrowers
                  Management       Management            Analysis          Limits        becoming over-indebted and unable to
                                                                                         repay their loans. The training received
                                                                                         in this area is 21% and suggests a
                        Importance (%)    Skill Level (%)    % Received Training
                                                                                         priority area for training


                There appears to be a need for training in fraud management and client credit
                                                     limits
                                                                       13
                                                            Consumer Survey Methodology
Aim
  To identify the learner needs of consumer borrowers in the micro finance industry in South Africa
  To determine the most suitable methods for improving basic money-management skills and making borrowers aware of
   various issues in the industry
  To determine whether significant differences for learning requirements exist between borrowers in different provinces



                                                           Approach
 Approach

 Wise Staffing was used to conduct
            field research


                                                     Survey conducted Thursday
                                                                                                     373 borrowers’
   Willie Oosthuizen contacted 5                             28th March                                responses
  micro lenders in each major city                                                                    were obtained
                                                         and Tuesday 2 April
         around the country                                                                            and collated



  Cokes were offered as incentives
    to maximise response rates




                                                             14
                                                                 Summary of Findings

1.   74% of all respondents can read English, a finding consistent across the provinces
2.   76% of all respondents watch SABC TV, 37% listen to Radio Metro and 22% read Drum
     magazine, all of which are national media
3.   In addition to the commercial media, notice boards [47%], pamphlets [45%], posters
     [33%] and unions [51%] are the most common communication methods used by
     borrowers across the nation
4.   Newspaper [35%] and radio [30%] are the preferred means of communication across the
     provinces (except in Cape Town where computers were more favourable than radio)
5.   42% of borrowers are aware of their admin fees, 28% compare costs between micro
     lenders, and 76% would like help with budgeting
6.   Most people use loans for recurring expenses (transport [38%], food [38%], education
     [35%] and funerals [32%])
7.   The main reasons borrowers use micro financiers are speed, simplicity and because thr
     borrowers failed to meet banks’ requirements
8.   Borrowers are generally not aware of all their rights, a finding consistent across all the
     provincers



                                                15
                                                                                       Communication Method
Newspaper [35%] and radio [30%] are the preferred means of communication
across the provinces (except in Cape Town where computers were more
favourable than radio)
                                                                                         Commercial Communication Media Preference –
                        Cape                                                                           Total Sample
     Language                        Joburg        Bloem       Durban         PE                                      TV
                        Town                                                                            Computer
                                                                                               Pamphlets
 Sample Size (n)         145           109           58           40          21

 Newspaper               52%           37%          12%          15%         5%

 Radio                   4%            67%          12%          48%         33%

 Computer                23%            -             -           -            -                                                  Newspaper

 Television              6%            1%             -          28%           -                Radio

 Pamphlets                -             -           14%          3%            -

 • Although many respondents watch TV (at least 76%) it is not a preferred communication method
        This could be due to respondents watching at irregular intervals, or perhaps not owning their own televisions and only watching
         at work
 • The response rate in Bloemfontein was low for all media possibly because respondents did not understand the questions
 • Pamphlets do not appear to be an effective means of communicating with borrowers
        This finding may be due to people not knowing where to get pamphlets from, or the irregularity in the distribution of information
         pamphlets


   The Sowetan and the Argus would reach a large percentage of the population and is a
  practical means of delivery (newspapers are cheap and can be kept). Radio Metro would
         also reach a large audience, although listening times have not been tested
                                                                       16
                                                                            Loan Knowledge & Budgeting
42% of borrowers are aware of their admin fees, 28% compare costs between
micro lenders, and 76% would like help with budgeting
                                                                                                  % of All Respondents Replying “Yes”
                          Cape
      Response                        Joburg        Bloem       Durban        PE        90%
                          Town                                                                  81%                           81%
                                                                                        80%                                                76%
 Sample Size (n)           145          109           58          40          21        70%
 I know how much                                                                        60%
                           91%          81%          55%          75%        95%
 interest I pay                                                                         50%
 I know how much my                                                                                       42%
                           47%          39%          57%          28%          -        40%
 admin fees are
                                                                                        30%                         28%
 I compare costs                                                                        20%
 between Micro             19%          42%          16%          30%        52%
 financiers                                                                             10%
                                                                                         0%
 I know how to budget      92%          75%          74%          60%        90%
                                                                                              Interest   Admin    Compare    Budget    Budget
 I want help with                                                                             Amount     Fees      Costs     Ability    Help
                           86%          70%          74%          53%        86%
 budgeting


 • Only 42% of respondents were aware of the admin charges on their loans
 • Only 28% of all respondents compared costs between micro financiers
 • It is interesting that 81% of borrowers said they knew how to prepare a budget, yet 76% said they would like information about how to
   budget their finances
          This could possibly be attributed to the fact that they do not actually know how to budget, or what a budget really is


   Micro financiers need to make admin fees explicit, and borrowers need communication
          about shopping around for the best deal and how to budget their finances
                                                                       17
                                                                                                                       Loan Usage
Most borrowers use loans for recurring expenses (transport & food [38%],
education [35%] and funerals [32%])
                                                                                                      Loan Use - Total Sample
                                                                    Total
         Why do you use a Micro financier and not a bank?                                                    Recreation
                                                                   Sample                                               Agriculture
                                                                                                              & Sport
                                                                                                 Business Use
  Sample Size (n)                                                    373                                                   Transport
                                                                                         Pay off other loans

  It is easier than using a bank                                     35%              Home Extensions


  It takes less time to approve a loan than at a bank                20%           Medical Expenses


  I do not meet the requirements for a bank loan                     17%                                                               Food
                                                                                         Clothing
  I don’t know how bank loans work                                   4%

  It is cheaper [interest] than the banks                            4%
                                                                                             Furniture
                                                                                                                              Education
  I am blacklisted and can’t get a loan at the bank                  2%
                                                                                                            Funerals

 • Most respondents felt that micro financiers are quicker and easier than banks
         Many borrowers said they need money in a hurry, therefore micro financiers are the lenders of choice for them
  Only 17% of borrowers used micro financiers because they didn’t qualify for a bank loan – most respondents therefore prefer micro
   financiers for reasons of convenience
 • These findings showed no significant differences across the provinces


   Borrowers need communication on how to calculate their recurring monthly expenses
  and to save enough money each month in order to avoid the debt spiral. Borrowers also
   need information on how bank loans work and what is required to obtain a bank loan
                                                                    18
                                                                       Knowledge of Borrower Rights
There are a number of rights that borrowers are not aware of, a finding
consistent across all the provinces
                             Borrower Rights                    Cape Town*        Joburg         Bloem         Durban          PE
          Sample Size (n)                                           145             109            58             40           21
          I know I have 3 days to cancel my loan                     3%            49%            43%            63%          19%
          I know I should get a copy of the loan agreement          94%            85%            76%            58%          81%
          I know I must not sign any blank documents                 5%            91%            69%            68%          81%
          I know my lender must not keep my bank card, PIN or
                                                                    96%            25%            34%            58%          33%
          ID doc
          I know I can settle my term early                         10%            82%            62%            50%          86%
          I know what happens when I’m blacklisted                  98%            92%            71%            90%          95%
          I know I must not borrow more half my salary              90%            75%            62%            65%          90%
          I know I can be placed under administration               85%            18%            21%            38%          33%

  • Most borrowers have little knowledge about their rights, specifically:
           3 days to cancel a loan
           signing of blank documents (Cape Town only 5% were aware)
           retention of bank cards, PIN #’s and ID documents
           early settlement
           administration
   Despite fairly wide knowledge of some rights, all rights need to be communicated to all borrowers in order to increase awareness
  * The results for Cape Town were surprisingly high. A possible reason is that the question was incorrectly asked by the interviewers or
    interpreted incorrectly by borrowers

     The ultimate target is for all borrowers to know about all their rights through
                                      preffered media
                                                                      19
                                                                         Agenda

                 Agenda Item                      Resp.             Time

1. Project Approach                          Wendy Pienaar       5 min
2. Lender and Consumer Survey Summary        Wendy Pienaar       5 min
3. Business Development Support Assignment   Alicia Greenwood   15 min
4. Curriculum Framework Assignment           Brent Davids       15 min
5. Selection Assignment                      Wendy Pienaar       5 min

6. The Way Forward                           Wendy Pienaar       5 min

7. Breakout Instructions                     Heather Watson      5 min




                                        20
                                                                             Focus of BDS assignment
The business development support (BDS) section researches the most
appropriate opportunities for delivering BDS to micro financiers in South Africa
    Report                 Definition                                                 Approach
  Consultation     BDS ideas in the South           Consulted with sample of stakeholders around learner support mechanisms
  report            African context                  Included stakholders who are:
                                                         Donor-funded vs. private businesses
                                                         Operating in isolated centres vs. those who have national reach
                                                         Micro finance specific vs. general business
  BDS review       An assessment of certain         Interviewed sample of stakeholders providing BDS in South Africa
  report            current BDS initiatives in       Assessed BDS content and delivery mechanisms
                    South Africa
                                                     Assessed relevance to micro financiers
  Best practice    Report detailing best            Reviewed and assessed worldwide BDS case studies
  BDS report        practices, guiding principles        Included studies from range of countries (mostly ‘3rd world’ countries)
                    and lessons learnt as
                    identified from existing BDS     Researched worldwide BDS best practice and guiding principles
                    initiatives worldwide                Included BDS success factors, as well as barriers to success
  BDS strategy     Recommendation for a             Considered global best practices and lessons learnt
                    strategy to establish a BDS      Utlised current South African initiatives were applicable
                    initiative aimed at micro        Identified key decisions to be made regarding recommendation
                    financiers in South Africa
                                                     Identified next steps required to pursue recommendation


          Only some of the key findings have been included for today’s session
                                                                 21
                                                                                                               What is BDS?
BDS refers to the provision of information, knowledge, skills and advice on the
various aspects of a business.
                                Providers
                                                                                      • Includes all external non-financial
              Family                                       Accountants                  support to enterprises that
          Friends                Services                         Consultants               • Increases operational capacity
      Customers
    Business
                  Accounting /
                     auditing                          Inspection        Finance            • Provides access to markets
                                                       & testing        companies
    Networks                                                                                • Improves management skills
                                      Needs
                Technical
               information Technology          Personnel
                                                                              Banks         • Improves financial efficiency
                                                                  Finance
                                                                                            • Provides access to networks and
                                                  Laws /
                           Linkages             Regulations                                   information
                        Accounting
                                        Micro          Security
             Courier                  financiers                      Training
             delivery                                                                 • Examples of BDS services include:
                           Business
                            space
                                                       Markets
                                                                                           • Training / skills development
                             Production            Transport
                                                                   Legal                   • Legal services
  National     Computer                                           services
   Govt.        services                                                                   • Accounting / auditing
                                      Administration
      Local
      Govt.
                                                                                           • Advertising
                          Repair /                     Consultancy        Clubs
       Parastatals
                        maintenance                                                        • Network brokering
                                        Web-site                      NGOs
                                        design &                                           • Business consultancy
                                         mgmt.                 Associations
                                                     Universities /
                                                                                           • etc.
                                                      Colleges

                                                                                      Ref: Microenterprise Best Practices,
                                                                                 22   Development Alternatives Inc, 1999
                                                                                     BDS Success Criteria
Best practice research indicates that successful BDS initiatives understand the
markets they serve and provide demand-driven services

     1. BDS services must be demand-driven
            Ensures a greater, more positive impact, and encourages clients to pay for the services they value


     2. BDS services must be provided to the right clientele
            The main objective of a BDS is to facilitate growth, profitability and competitiveness of SMMEs. The
             BDS must therefore be provided to SMMEs who exhibit good entrepreneurial characteristics and can
             make good use of the services


     3. The SMME community must have a strong sense of ownership in the BDS
            The best business providers generally work in the environment, resulting in commitment and strong
             ownership


     4. The BDS centre must achieve maximum outreach
            Maximum impact can be achieved by strengthening private sector service providers, creating better
             networks between service providers, and promoting informal systems of learning


     5. The BDS centre and its service providers must achieve financial sustainability
            The institutional and financial sustainability must be achieved by controlling costs to maintain
             competitive and to increase profits

                                                               23
                                                                            Barriers to BDS Success
Provision of BDS can be complicated and some international initiatives have
not been successful

     Not charging for services often results in poor commitment from the users
           There must be a balance between free and paid-for services


     Relying solely on private market finance can be detrimental
           Businesses may be reluctant to incur the costs of setting up BDS initiatives, as their competitors may be just
            as likely to benefit
           Provides a rationale for donor support justified on a cost-benefit basis, rather than on the return on
            investment that individual businesses usually make


     Support services are often too generalised
           Often supply-driven and delivered in a top-down fashion, rather than from a SMME demand perspective
           Training should be business-oriented, and not viewed as an extension of the basic general educational
            system


     Support services are sometimes not accessible by the target users
           Must be delivered via a suitable, convenient medium




                                                             24
                                                                       Overview of BDS Initiatives
An assessment of a sample set of SA BDS initiatives illustrated that excellent
progress has been made in supporting SMMEs
      There are many BDS initiatives targeting SMMEs in general
           Different delivery mechanisms are used
           Different levels of information are provided
           Different levels of support are provided
           In some cases, shared services are provided
           Both donor-funded and self-sustainable models are used

      Strengths:
           Large volumes of general business information are available
           A large amount of support is available
           A large network of service providers is in place across the country
           A web-based BDS initiative is being successfully run


      Lessons learnt:
           Require sector-specific expertise and support
           Face-to-face approach is very successful
           Charging for services results in more buy-in and commitment from users
           Closer interaction with affiliates required
           Limited resources for industry research
           Poor client satisfaction / client impact assessment processes




                                                             25
                                                                                                                         Rating of SA BDS Initiatives
A comparison of some SA initiatives illustrate a wide variety of capabilities and
reach
                         Shared
                                                                                                                           Internet
                         services                                                                                                                                         Brain
 Nature of BDS support




                                                                                                   Delivery mechanisms
                                                                       Mastermind
                                                                        Alliance
                                     Business Beat                                                                                                                 Mastermind
                         Support     Brain Affiliates / Ntsika LBSCs                                                                                                Alliance
                                                                                                                         Telephone
                         services    Business Place                                                                                                                        MEA


                                     Ntsika                                                                                                                   Brain Affiliates /
                                                                                                                                                              Ntsika LBSCs
                                                                       MEA

                                                                                                                                              Business Beat
                                                                                                                                                                         Ntsika
                         Info only                                                                                                    Business Place
                                     Brain                                    Khula                                      In-person                                       Khula
                                General                                      Micro finance-                                       Single                                    National
                                business
                                                    Relevance of                specific                                         location                                   coverage
                                 content           content to Micro             content                                                               Reach
                                                      financiers



                                           There are very few BDS initiatives which specifically target micro
                                                                       financiers

                                                                                              26
                                                                                                         BDS Delivery Media
Highest priority should be given to those BDS delivery media which can be
accessed by the majority of the target audience
                     Large
                                                                                                 Telephone
                                                                                                 Radio
                                                                                                 Newsletters
                                                                                                                      Large no. of users
                                                                                                                      accessed, with low
                                                                                        TV                            implementation effort
   • Technological
                      Size of target audience




                                                                                        Videos
     capability of                                                                        CDs         Internet
     MFs                                                                                                 eMail
   • Geographic
     location of
     MFs (urban /
     rural)

                                                      One-on-one’s
                                                          Mentoring
                                                              Roadshows
                     Small
                                                Low                                                            High
                                                                     Ease of delivery


                                                                             • Cost to design, develop and implement
                                                                             • Time to design, develop and implement

                                                                              27
                                                                 BDS Delivery Solution
Supporting the internet/call centre portal with an ‘on-the-ground’ service
provider network will ensure that the needs of the entire target audience are
catered for
                                      BUSINESS DEVELOPMENT SUPPORT
                      Basic Information And Advice              Specific Information And Support
                    Call centre




                                       Variety of information
                                      sources, catalogues and
                                            library items
                   Internet Portal
MICRO FINANCIERS        BDS RESOURCE CENTRE                     SERVICE PROVIDER (SP) NETWORK




                                                     28
                                                                      BDS Delivery Solution
The revenue model supporting the BDS delivery solution is dependent on the
types of services and information it will eventually provide
                                                           e.g. Training manuals


                   e.g. Best practice                Information
                        analysis      Research



                                                 Sources Of       Services e.g. Internal audits
                                                  Revenue
          e.g. Outsourcing of
                                  Shared
              payroll function   Services

                                                              Access to    e.g. Access to restricted
                                                               portal      information
                                          Accreditation
                                             of SPs

                e.g. SPs pay for accredited status
                       / Franchising of SPs

          A business case must be developed and agreed to ascertain the full
                   financial benefits of setting up the BDS initiave
                                                     29
                                                                 Options for BDS Delivery Solution
The BDS model can either be implemented as an end-to-end solution, or the
various components can be implemented independently
                                Option 1                                       Option 2                                     Option 3
                      BDS resource centre only                   Service provider network only                       BDS resource centre
                                                                                                                       and SP network
  Advantages        Easy to develop and manage               Supports MFs who have minimal / no              Caters to full spectrum of MFs (low –
                    Supports MFs who have minimal             technical capability                             hi tech)
                     technical capability (telephone is       Contributes to development of local             Continous feedback loop re. support,
                     minimum requirement)                      SMMEs, and of the community                      training and services needs
                    24 x 7 availability                      SPs provide sector / community specific         SPs provide sector / community
                    Few players involved, therefore low       research                                         specific research
                     political impact                                                                          BDS resource centre supports SPs
                    Latest, up-to-date information                                                            Contributes to development of local
                    Relatively cheap                                                                           SMMEs, and of the community
                                                                                                               24 x 7 availability

  Disadvantages     No network of SPs for walk-in clients      Selection of credible SPs may be difficult    Many political players involved
                     (rural areas)                              Information and skills may be dated           Governance structure may be
                    No community or sector-specific            No central information support for SPs         complicated
                     information is easily accessible           Complicated management of SPs                 Selection and management of SPs
                                                                8 – 5 availability                             may be complicated

  Recommendation
                                                                                                                              
               A full implementation is recommended to ensure efficient support for
                    the MFs and the SPs, and for superior information provision
                                                                        30
                                                                      Role of the BDS Centre
The BDS centre will be a hub for all information relating to the microfinancing
industry, and will coordinate activities between the micro financiers and the
service providers
                                                  INFORMATION                         ACTIVITIES
                                                                  Library of          Portal maintenance
                                         MF-specific
Phone /                                                          books, CDs,
                                        information *                                Accreditation of SPs
fax                                                                videos

                                          General                                     Monitoring of SPs
                         Call                                     Training
                                         business
                        Centre                                   catalogues             Client database
                                        information
                                                                                           Research
                                         Access to
                                                                 Links to intl.
                                         electronic                               Coordinate events / training
                                                                   contacts
                             Internet    databases
                              Portal                                              Coordinate client feedback
Online
                                           Online                                         Marketing
access                                                           Newsletters
                                         chatrooms
                                                                                     Social responsibility

              FRONT-OFFICE                                    BACK-OFFICE

                                                      BDS centre
  MF = Microfinancier
  * Best practice                                        31
                                                                           Roleplayers: BDS Centre
Currently in SA, no organisation offers the full range of capabilities required to
run the proposed BDS centre, although a number of players play in different
areas
    Call Centre /     BRAIN                                       Call centre
    Internet Portal                                               Internet portal
                                                                  Both managed and maintained by BRAIN

    Information       Local resources: e.g. MFRC, MEA,            Micro financier-specific information
    Providers         MLA                                         Not available online
                      International resources: e.g. CGAP,         Online source of micro financier-specific
                      ILO, etc.                                    information

                      BRAIN                                       Online databases
                                                                  Links to general business information (280 links)
                                                                  No micro financier-specific information
                      BANKSETA                                    Micro financier training curriculum and material
                      Willie Oosthuizen (Mastermind               Micro finance manual - book and CD
                      Alliance)                                   Currently designing an internet portal
                      Ebony Consulting etc.                       Micro financier training curriculum and material




                                                            32
                                                                        Role of the Service Providers
The SPs should be sustainable businesses, and will be accredited and
monitored by the BDS centre
                                                         SERVICES                                          ACTIVITIES
                                                                                  Business             Provide feedback to BDS*
                                        Conduct
                                        training                                  linkages
                                                                                                        Market within community

BDS
                                      Mentoring /                               Workshops              Leverage BDS information
Referrals
                                      counselling
                                                                                                        Manage events programs
Walk-in                                                                        Community-
clients                                 Provide
                                        services                              specific market          Manage training programs
                                     (charge / free)*                           research*
               Office based in
                city or town,                                                                             Assess client needs*
                 across SA*                                                        Shared
                                       Business                                   services
                                       Incubator                                (e.g. payroll)           Conduct local research*


                                            Affiliated Service Provider
              Accreditation to be based on various criteria e.g. service offered, service delivery track record /
               credibility, cost of delivery, geographical reach, etc.
              “Accredited status” to be reviewed annually, or as required

 * Best practice                                                   33
                                                          Roleplayers: Service Providers
There are many service providers located around South Africa, providing a
diverse range of services

    SERVICE      Local Business Service Centres (LBSCs)         Accredited by Ntsika
    PROVIDERS                                                   Diverse range of operations, services and size of
                                                                 organisations
                                                                Minimal reporting responsibility to Ntsika
                                                                Many have poor reputation in marketplace
                 BRAIN affiliate members                        Accredited by BRAIN
                                                                Main accreditation criteria are:
                                                                     – Must have internet capability
                                                                     – Must have existing client base
                                                                No rigorous monitoring by BRAIN
                                                                No reporting responsibility to BRAIN
                 Business Beat service providers                Managed by a formal reporting process


                 Many other examples exist: The Business Place, Mastermind Alliance, Ebony Consulting etc.




      To ensure credibility and sustainability, very specific accreditaion criteria
         must be enforced on the SPs providing services to micro financiers

                                                          34
                                                              Role of the Micro Financier
The MFs will experience a ‘pull’ and ‘push’ of information from the various
resources

      BDS CENTRE                                                                       LOCAL SP
       Receive newsletters                                                             Receive in-person
         via email / post                  Internet                                        training
                                              Internet
       Receive information                                                              Receive specific
         via email / post                                                                local research

        Receive incentives                                                              Receive shared
                                                                       Walk-in
                                          Phone                                            services
          Conduct online
        training / research                                                            Receive incentives
         Browse portal for
             updates                                                                    Go on site visits
                                            Fax
           Chat online                                                                    ‘Walk-in’ for
                                                  Many different incentive
                                                  schemes exist to encourage MFs           assistance
        Provide feedback*                         to use all the resources available




                              Micro financiers – Urban and Rural
   MF = Micro financier
   * Best practice                                  35
                                                                   Approach to Tiered Rollout
                 PHASE 1                   PHASE 2                               PHASE 3                  PHASE 4
                                            Establish                             Establish                Establish
  Pre-         Establish BDS                   1st tier                              2nd tier                   3rd tier
 project
              resource centre                 Service                                 Service               Service
decisions
                                             Providers                               Providers             Providers
  ???             4 months                 3 months                             3 months                3 months
            (Phases 1 and 2 could be conducted in parallel)


                                                                              Pietersburg
                                                                         Nelspruit
                                                                    Pretoria


                                                    Johannesburg
                                                                                            KEY
                                                                                                 BDS Resource Centre
                                                                                                 1st Tier SPs
                             Upington
                                              Bloemfontein
                                                                                                 2nd Tier SPs
                                                                                 Durban

                                                                                                 3rd Tier SPs
                                                                             East London
                                        Beaufort West



                 Cape Town                              Port Elizabeth


                                                        36
                                         Challenges to implementing BDS Model
Comprehensive design of processes and of roles and responsibilities is
required to ensure efficient operation of the BDS initiative
   Challenges                                       Actions
   Resource centre employees must be                Recruit call centre operators with micro finance
   adequately skilled                                industry experience
   Defining a satisfactory business case for the    Identify the revenue model, sources of income and
   BDS model                                         sources of costs of the initiative
   Existing information must be taken into account  Identify and assess existing information
                                                    Identify gaps in existing information
   Micro financiers must be adequately              Interview micro financiers to assess most suitable form
   incentivised to utilise the portal                of incentivisation
   Service providers and affiliates must be credible  Define and communicate management and
   and trusted in the community                        accreditation of affiliates processes
   Agreement has to be reached between all the      Issues to be resolved include:
   involved parties prior to development of a            Who will sponsor the project?
   support centre and network                            Who will finance the project?
                                                         Who will be accountable for the project?
                                                         Who will manage the various components of the
                                                          BDS solution?

                                                      37
                                                                         Agenda

                 Agenda Item                      Resp.             Time

1. Project Approach                          Wendy Pienaar       5 min
2. Lender and Consumer Survey Summary        Wendy Pienaar       5 min
3. Business Development Support Assignment   Alicia Greenwood   15 min
4. Curriculum Framework Assignment           Brent Davids       15 min
5. Selection Assignment                      Wendy Pienaar       5 min

6. The Way Forward                           Wendy Pienaar       5 min

7. Breakout Instructions                     Heather Watson      5 min




                                        38
                                                                                               Focus of the Curriculum
                                                                                               Framework Assignment
The curriculum development assignment focuses on understanding the skill
needs of micro financiers and development of a plan to close the skill gaps
 Stakeholder                    Develop a plan to increase awareness,                      Identified more than 122 different stakeholders
 capacity building               interest and understanding of skills                       Interviewed 48 stakeholders
 plan *                          development legislation and BANKSETA                       Created a Communication Plan, Stakeholder Matrix
                                 Micro finance project                                       and Capacity Building Plan

 Unit standards and             Assess required unit standards and                         Assessed existing banking unit standards and unit
 micro-lender                    qualifications                                              standards developed by some of the training providers
                                                                                             as an input into the survey
 qualifications review
 Learner needs                  Assess existing skills and capabilities,                   Developed a survey for lenders and borrowers
 analysis and                    identify gaps and future focus areas                       Conducted the surveys
 profiles*                                                                                  Developed a Lender and Consumer Needs Analysis

 Establishment of               Identify and appoint stakeholders to                       Through stakeholder interviews, members for the 2
 curriculum and                  participate in consultative forum                           forums were appointed
 consultative forum*                                                                        Launched the 2 forums and held numerous meetings
                                                                                             with each

 Curriculum                     Develop and agree framework with                           Reviewed training and curriculum best practices
 framework for micro             Curriculum Development Team                                Used the results from the survey to develop a
 financiers                                                                                  curriculum framework that was reviewed by the
                                                                                             Curriculum Development Team and other stakeholders

 Skills programmes              Develop approach and plan to implement                     Assessed the need for a skills programme or
 plan                            skills development iniatives                                learnership based on requirements of micro financiers

 Delivery channel               Identify most appropriate channels to                      Tested the most appropriate delivery mechanism for
 plan                            deliver skills development initiatives                      the different skill areas and included in the curriculum
                                                                                             framework

 * These deliverable are contained in other reports. This report focuses on the Curriculum Framework
                                                                               39
                                                      What is a Curriculum Framework?
A curriculum framework provides the guiding principles within which the
methodologies and delivery methods of a training programme are defined

                                                              Includes guidelines around:
                                                               Purposes, goals and objectives of
                                   CURRICULUM
                                   FRAMEWORK                      learning*
                                                               Learning outcomes*
                                                               Methodology for selecting, structuring
                                METHODOLOGIES
                                  Case studies                    and delivering the training content*
                                    Lectures                   Processes to facilitate learning*
                                   Videos, etc.
                                                               Process to assess the learners
                                                               Methods of evaluating intentions,
                             DELIVERY METHODS
                                                                  outcomes and methods
                              Face-to-face learning            Planning and execution of the
                               Distance learning                  management of the setting in which the
                                                                  curriculum is implemented (e.g. full-time,
                                                                  part-time, lectured, distance,
                           IMPLEMENTATION PLAN                    combination)
                                 Prototype
                                   Pilot
                                  Roll-out                    * Completed in project design phase




Ref: Skills Development, Ian Bellis, 2001               40
                                          Curriculum Framework Success Factors
Best practice suggests that the fostering of a “learning organisation” culture will
aid in the successful delivery of training initiatives
  • Curricula must have a clearly defined vision, mission and goals
  • Training should be modular and outcomes based
  • Training content must be relevant to the trainee, and be based on trainee needs
  • Training standards, systems and models must be clearly defined
  • Curricula should offer a choice of training content and delivery mechanisms
  • Training must be prioritised, addressing the most pressing needs first
  • Training should be delivered at a convenient time, and in a convenient manner
  • Registering for training should be easy for the trainee
  • Feedback must be obtained from trainees to continuously improve programs
  • Skills-based learning and people interfacing skills should ideally be facilitated through a face-to-
    face delivery channel to cater for questions and problem-solving

          A curriculum framework should be flexible enough to incorporate a number of
                      different means for developing and delivering training
Ref: Training from Scratch, Nancy Kuhn,            41
                             Curriculum Framework Barriers to Success
Significant barriers to success exist, which may significantly undermine the
successful adoption of the curriculum by the micro finance industry

• Lack of a cohesive approach to the deployment and delivery of training and development
  initiatives
• Lack of ownership and buy-in for training and development
• Lack of incentives to take advantage of the learning initiatives and to generate demand for
  training
    • Often supply-driven and delivered in a top-down fashion, rather than from the target
      audience needs
    • Training should be business-oriented, and not viewed as an extension of the basic general
      educational system
• Training services are not always accessible to the target audience
    • Must be delivered via a suitable, convenient medium
    • Geographic dispersion must be taken into account when planning the delivery of
      curriculum content



                                                42
                                                                  Training Delivery Principles
 Two main types of training delivery have been proposed, namely distance
learning and face-to-face delivery

             Description                Advantages                                   Disadvantages
  DISTANCE    Knowledge-based           Controlled, consistent content              Require suitable infrastructure to
  learning    Delivery media include   • Effective for large groups or multiple       run training (e.g. computers for
               videos, internet, CDs,     locations                                    CBTs)
               etc.                      Does not required trainer/trainee travel    May be difficult to disseminate
                                         Can contain large amounts of material       May be difficult to update material
                                                                                       (CDs or videos, does not apply to
                                         Accessible at learner’s convenience          internet)
                                                                                      Limited bandwidth may result in
                                                                                       slow delivery
  FACE-TO-    Skills-based              Easily customised and revised               Slow learning rate
  FACE        Delivery media include    Quick to develop                            Inconsistencies from class to class
  learning     classroom, mentoring,     Minimal development costs                   Scheduling often presents
               apprenticeships, etc.                                                   difficulties
                                         Trainees can ask specific questions
                                                                                      Difficult to control and monitor



     Micro financiers may be reluctant to make use of long-term classroom type
    learning due to work pressures. It is therefore important that consistency of
   training content is provided through both distance and face-to-face channels
                                                         43
                                                                                 Training Delivery Channels –
                                                                                         face-to-face learning
There are three key face-to-face delivery channels: classroom,workshops and
seminars
 Channels                    Classroom Training                                  Workshops                                     Seminars
 Advantages           Instructor adapts to specific audience        Group or applied problem-solving            Experts present information to large
                       needs                                          applications                                 groups of people in one location
                      Quickly developed                             Content may be unique or tailored to        Allows for networking
                      Actual tasks can be simulated                  group needs                                 Reinforces culture, etc.
                      Allow exchange of ideas, elaboration of       Encourage collaboration, networking,        Motivational, depending on the
                       content, feedback                              and sharing of war stories                   presenter
                      Conveys common message

 Disadvantages        Content is potentially unstable/changing  Content is one-time message                     Content is a one-time message
                      Resource availability may be a factor for  High risk of doing competency wrong            Individual feedback may be limited
                       regional delivery
                      Practice opportunities linked to case-
                       study materials, not necessarily linked
                       to actual job

 When to use          In large groups at regional training sites    Can be conducted to solve a group           Disseminate common information
                      Instructor as an expert, facilitator, and      problem; develop group process skills        from "the" experts to a large group at a
                       role model                                    Small groups at local office or regional     regional training site
                                                                      site                                        One-time message

 Cost /               80-100 hours per hour of delivery             80-100 hours per hour of delivery           80-100 hours per hour of delivery
 Development          Low development cost                          Low development cost                        Low development cost
 time                 R350 per hour of development time             R350 per hour of development time           R350 per hour of development time

 Recommendation Should be used where skills levels are              Should be used to develop “hot-              Should be used to disseminate
                     low and perceived importance is high           skills” for the industry and to              topical and industry best practice
                     – especially where skills-based                disseminate best practices                   information and develop “Hot skills”
                     learning is called for                                                                      for the industry

                                                                          44
                                                                                    Training Delivery Channels –
                                                                                            face-to-face learning
Coaching and mentorship are cheaper alternatives for face-to-face, but may
lack consistency of approach and may fail due to lack of sustained support
 Channels                              Coaching                                      Mentoring                               Role Play
 Advantages              Inexpensive to develop                        Inexpensive to develop                Student demonstrates a skill in a
                         High transfer of knowledge                    High transfer of knowledge             simulation of the real situation
                         Directly relevant to trainee’s job            Directly relevant to trainee’s job    Apply knowledge and skills by
                         Trainee’s interact with coworkers             Trainee’s interact with coworkers      demonstrating
                                                                                                               Encourage collaboration, networking,
                                                                                                                and sharing of war stories
                                                                                                               Immediate feedback is provided

 Disadvantages           Training may be inconsistently delivered    Training may be inconsistently          Training may be inconsistently
                         Difficult to control/monitor                 delivered                                delivered
                         Requires workers to be teachers             Difficult to control/monitor            Difficult to control/monitor
                         Can disrupt regular workflow                Requires workers to be teachers
                                                                      Can disrupt regular workflow

 When to use           On-the-job training                           On-the-job training                     In small groups at regional training
                                                                                                                sites

 Cost /            15-60 hours per hour of delivery                  15-60 hours per hour of delivery        15-60 hours per hour of delivery
 Development time  Low development cost                              Low development cost                    Low development cost
                       R350 per hour of development time             R350 per hour of development time       R350 per hour of development time

 Recommendation Could be used to disseminate skills and Subject matter experts could be used                  Could be used where people
                      knowledge obtained from seminars,       to consult on best practice and up to           interaction skills are required e.g. in
                      workshops and experience to staff       date views on “Hot Topics” and                  Client service scenario where the
                      members who are new to their role or to problem solving                                 learner may need to develop practical
                      the organisation. Coaching could also                                                   techniques of how to deal with
                      be used as a means of informal                                                          difficult clients
                      assessment of learners

                                                                             45
                                                                                  Training Delivery Methods –
                                                                                            distance learning
Simulation training, CBT’s and Videos could be used as complimentary as well
as parallel delivery methods to face-to-face channel methods
 Methods                      Simulation Training                                     CBT                                     Video Tape
 Advantages            Student demonstrates a skill in a           Consistent delivery; learner controlled;    Leverage "experts" time
                        simulation of the real situation             flexible completion times/places            Consistent delivery
                       Immediate performance feedback              Individualized feedback                     Reduce travel costs to meetings, etc.
                                                                    Easy to track performance                   Capture a "real" event
                                                                    Available on demand                         Content relatively stable
                                                                    Individualised self-paced instruction       Interaction or feedback is not
                                                                    Content relatively stable                    necessary
                                                                    Can contain large amounts of                Flexible delivery times; could be
                                                                     information                                  viewed at home

 Disadvantages         Can be expensive to develop                 Can be costly to update and produce         Expensive to produce and update
                       Long development cycle                      Require necessary hardware to run           Requires necessary equipment to run
                       May require high-tech equipment to run       training                                     training
                                                                    Updates require burning new CBTs            Updates require development of new
                                                                                                                  videos

 When to use           When in-depth problem-solving,              Individually at local office / home         In large groups and / or multiple
                        decision-making and application of skill                                                  locations
                        is required                                                                              Individually at local office / home

 Cost /            300-600 hours of development per hour           300-600 hours of development per            300-600 hours of development per
 Development time of delivery                                        hour of delivery                             hour of delivery
                       High development cost                       High development cost                       High development cost
                       R350 per hour of development time           R372 per hour of development time           R372 per hour of development time

 Recommendation Should be used for very complex                    Should be used extensively as a              Should be used extensively as a
                      decision-making and problem solving          parallel medium to emulate face-to-          parallel medium to emulate face-to-
                      skills areas such as finance and risk        face delivery. Should be used where          face delivery. Should also be used
                      management to accurately reflect a           the practicing of skills is required         where emulation of behaviours or
                      work scenario                                     46                                      skills are required
                                                                             Training Delivery Methods –
                                                                                       distance learning
Manuals, multimedia and the internet could be used as complimentary as well
as parrallel delivery methods to face-to-face delivery methods
Methods                Paper-based/Electronic Manuals               Interactive multi-media                              Internet
Advantages          Consistent delivery                        Combination of sound, graphics, text    Allows participants to learn at their own
                    Portable                                    and video on a computer                  pace through an internal Internet site
                    Learner-controlled                         Safe practice of skills                 Reduces need for trainers
                    Available on demand                        Simulate actual tasks                   Material is easily updated / customised
                    Expert interaction not required for        Stable content
                     elaboration                                Interactive and motivational
                    Reduced travel costs                       Training can occur on demand, at
                                                                 point of need
                                                                Reaches large audience

Disadvantages         Minimal feedback opportunities           Can be expensive to develop             Limited bandwidth may result in slow
                      Expensive to revise content              Relatively long development cycles       response times
                      Generally low completion rates           Expensive to update
                      Content is potentially unstable
                      Requires literate learners

When to use         Learner-controlled training that can be    Individually or in a small group        When the content does not require much
                     completed at point-of-need                 Instructor-led or self-study             facilitation or interaction
                                                                                                         Individually at local office / home

Cost /              80-120 hours of development per hour of    300-600 hours of development per        300-600 hours of development per hour
Development time     delivery                                    hour of delivery                         of delivery
                    Medium development cost                    High development cost                   High development cost
                    R350 per hour of development time          R350 per hour of development time       R350 per hour of development time


Recommendation     Should be used to supplement face-to-       Should be used as a parallel             Should be used to supplement face-to-
                   face delivery as well as a parallel         medium to emulate face-to-face           face delivery as well as a parallel
                   medium for distance learning                delivery. Should be used where the       medium for distance learning
                                                                    47
                                                               practicing of skills is required or      Should be used as the primary
                                                                    Guiding Principles
Principles guiding the delivery of training to micro financiers were developed,
taking into account global best practice


         Training design and delivery should be modular
         Training must be relevant to the learner, and impact their performance at
          work
         Training development must be prioritised based on micro financier needs
         Training development must be flexible, and be easy to update when required
         A combination of experiential and situational methodologies should be used
         A combination of face-to-face and distance learning channels should be used
         Content should be available over multiple delivery channels




           Within these guiding principles, an approach to the development,
                delivery and management of training has been defined


                                               48
                                                      Strategy for Delivering Training
A central coordinating body, or training centre, is required to ensure efficient
planning, design and delivery of training to micro financiers

                                     LEARNING AND TRAINING DEVELOPMENT
                             DISTANCE LEARNING                             FACE-TO-FACE LEARNING
                    Call centre




                                     • Downloadable training material
                                     • Access to training catalogues
                                     • Schedule of training courses
                   Internet Portal
MICRO FINANCIERS              TRAINING CENTRE                           TRAINING PROVIDER NETWORK


          The training centre and the proposed BDS centre should be one entity,
                               to ensure economies of scale
                                                      49
                                                  Strategy for Delivering Training
The training centre is responsible for the development, management and
delivery of the training curriculum to the micro financiers
              CALL            INFORMATION                                  ACTIVITIES
             CENTRE

Phone /                     Training       List of training          Review and update curriculum
fax                        curriculum         providers
                                                                        Manage learner database
                          Catalogue of     List of subject
                            training       matter experts
                                                                      Coordinate trainee feedback
                            material           (SMEs)

                         Order videos,      Register for                 Certification of learners
Online                   CDs, manuals       workshops /
access                        etc.           seminars          Research new content / delivery mechanisms

                                            Register for                   Portal maintenance
                         Conduct online
            INTERNET                        face-to-face
                            training
             PORTAL                           training

          FRONT-office                                     BACK-office

                                          Training Centre
                 The training centre could be outsourced by BANKSETA
                                                  50
                                                                                                Incentives
A significant risk to the successful delivery of training to the micro finance
industry is the perceived lack of real business benefits
     Involvement of micro finance practitioners in the development of the content of the training materials
      will the create a sense of ownership of the programme

        Buy-in for the benefits of the training initiatives will be generated through a needs-driven strategy

        The creation of micro finance best practices will be generated through practitioner involvement in
         the project and in so doing generate demand for the training

     Monetary incentives in the form of skills development grants will afford micro financiers the opportunity
      to claim back on their skills levies paid. Qualifying employers can access up to 60% of their annual
      contributions for skills development under the sector grant scheme

        Planning grants – through the registration of a skills development facilitator as well as the
         submission of a workplace skills plan

        Implementation grants– through the submission of a skills development implementation report




  Incentives in the form of skills development grants would be the main monetary
                       incentives for micro finance businesses
                                                        51
                                                                Approach Overview
Over the past nine weeks, the project team has been actively collecting data
and consulting stakeholders on learner skills and business needs


      Research Best Practice



      Qualitative Interviews
       with Stakeholders
                                   Curriculum Development
                                       Team Workshops
                                                                       Curriculum
    Consultation with External
                                                                       Framework
      Subject Matter Expert
                                 Consultative Forum Workshops

            Web-based
         Electronic Survey




      Learner Needs Analysis



                                         52
                                                           Curriculum Content Overview
The curriculum content has been developed through the application of best
practice models, consultation with industry experts and stakeholders, and the
learner needs analysis
   The majority of South African micro finance businesses are small to medium sized
    businesses and it is with this in mind that the overall modular approach to the training
    needs of micro financiers was taken
      The contextual learning needs of a micro finance business were looked at from a small to medium
       sized business perspective, where every aspect of the business was seen as a training module
      International business school models were applied to source the various training modules that
       would be appropriate to a small to medium-sized financial services business

      Several industry practitioners and stakeholders were approached for their input on the training
       requirements of a micro finance business. Responses from these interviews were used to add
       micro finance industry-specific topics to the curriculum
      Existing unit standards for the banking industry were used
      An external subject matter expert was consulted on the overall approach and content of the
       curriculum framework
      Workshops with the Curriculum Development Team and the Consultative Forum were held to
       validate the approach and high level content

                                                      53
                                                                               Risk Management Outline
Risk management had the highest rating of importance in the learner needs
analysis survey
                          The Risk Management skills area consists of four modules:
         Module                                                            Definition
   Fraud Management        The ability to minimise fraudulent transactions in your business through the establishment of
                           effective fraud prevention policies and procedures
   Risk Management         Identification and analysis of risk to the business. This includes managing the impact of interest
                           rate changes and specific client risks
   Risk and Return         Identification and analysis of risk to the business in relation to the expected returns from loans
   Analysis                made
   Client Credit Limits    Setting of standard credit limits for clients

   Recommended delivery channels and training methodologies

                            Substantial face-               Supported by                  Supported by
                            to-face initiatives              mentoring                  distance learning
                                to develop                  programmes,                  initiatives such
                              foundational                    coaching,                 as CBT, Manuals
                              skills in Risk                seminars and                 and web-based
                              Management                     workshops                        learning




      Classroom based courses should be run to development this important skill
                area, supported by coaching and electronic material
                                                                 54
                                                                                               Risk Management
                                                                                               – Survey Findings
  The overall importance of risk management is 84% whilst the reported skill
  levels average 64% and 21% of respondents have received training in this area

                                   Risk Management                                    Overall, risk management is rated as the
      100                                                                              most important skill area by micro
                 87                                                                    financiers
           90                                                         83
                                   84                83
                                                                                      The importance of the four risk
           80
                                                                                       management skills were similarly rated
                                                                              68
           70          63               61
                                                           62                          by micro financiers (83%-87%), as were
                                                                                       the levels of expertise (61%-68%)
Percent\




           60
           50                                                                         The fewest respondents had received
           40
                                                                                       training in fraud management (16%)
           30
                                                                                      Most respondents had received training
                                                                                       in ‘risk and return analysis’ (24%)
           20
                                                                                      Client credit limits are an important skill,
           10
                                                                                       as this could limit the danger of
           0                                                                           borrowers becoming over-indebted and
                  Fraud             Risk           Risk and Return   Client Credit     unable to repay their loans due to
                Management       Management            Analysis          Limits
                                                                                       reckless lending. The training received
                                                                                       in this skill is 21% and suggests a
                      Importance (%)    Skill Level (%)    % Received Training         priority skill for training


                There appears to be a high need for training in fraud management and the
                                       setting of client credit limits
                                                                     55
                                                                                           Risk Management
                                                                               - Delivery Recommendations
The management of risk is fundamental to the running of a micro finance business
  Module       Learning      Delivery                   Type of Channel                                             Training Method
               Outcome       Channel
   Fraud      Manage         Face-to-    Classroom Training could be used at the               Case Studies on South African fraud could be developed
 Management   fraud within     face       beginning of the learning process to develop           through interviews with micro financiers who have been
              a micro                     foundational knowledge of fraud management             victims of fraud
              finance                    Seminars and workshops could be used to               Electronic and paper-based manuals with methods to
              business                    showcase latest findings and trends in fraud           manage and combat micro finance targeted fraud could be
                                          management from experts in the industry and be         used to help establish content and situational knowledge of
                                          offered on an ongoing basis                            fraud management principles
                                         Coaching could be used to disseminate                 Manuals could be supplemented by Instructional videos
                                          knowledge to new recruits into a business and          depicting real life examples of how fraud has successfully
                                          could be used as a basis for informal assessment       been managed within micro finance businesses in South
                                         Mentoring programmes could be used to                  Africa
                                          reinforce the foundational learning from classroom    Guest speakers from the micro finance industry could be
                                          training                                               used in classroom training, seminars and workshops to
                                                                                                 convey a sense of how fraud is practically managed in a
                             Distance    Electronic Information Exchanges and BDS               business
                             Learning     Web portal, could be used to disseminate training
                                          materials cheaply throughout the country
                                         BDS call centre / support centre could be used
                                          to purchase training materials from
    Risk      Identify and   Face-to-    Seminars and workshops could be used to               Risk and return Analysis Manuals could be developed,
 and Return   apply            face       establish practical skills in risk return analysis     based upon a typical micro finance business model
  Analysis
              appropriate                Coaching could be used to disseminate Risk and        A CBT with a practical Ms Excel-based tool to simplify and
              criteria for                return analysis skills                                 standardise the calculation and analysis of risk and return
              calculating                                                                        could be developed in consultation with micro financiers
                             Distance    Electronic Information Exchanges and Web-
              repayment                                                                         A Case study of how analysis could be applied within a
                             Learning     based training, could be used to disseminate
              ability in                                                                         micro finance business to accurately predict risk and return
                                          content information cheaply throughout the country
                                                                                                 could be developed and could also include a business
              relation to                BDS call centre / support centre could be              simulation model to show
              expected                    contacted to arrange for manuals and CBT’s
                                                                                                A Business simulation model, showing the application of
              returns from
                                                                                                 risk and return principles could be developed so that
              loans made                                                                         learners can practice and develop skills that can be directly
                                                                                                 transferred into their business
                                                                        56
                                                                                                Risk Management
                                                                                    - Delivery Recommendations
The management of risk is fundamental to the running of a micro finance business
   Module          Learning      Delivery                    Type of Channel                                             Training Method
                   Outcome       Channel
    Risk         Structure a     Face-to-    Classroom Training, could be used at the               Electronic and paper-based manuals with guidelines on
 Management      risk              face       beginning of the learning process to develop            how to establish a sound risk management policy for a
                 management                   foundational knowledge of risk management               micro finance business could be developed. Examples of
                                              policies and procedures                                 established risk management procedures could be
                 policy and
                                             Seminars and workshops could be used to                 included in the content and serve as a basis for application
                 procedure for
                                              showcase latest findings and trends in risk             within the learner’s business environment
                 a micro
                                              management from experts in the industry and be         Case Studies developed through consultation with micro
                 finance                      offered on an ongoing basis                             financiers could be used to depict good and bad
                 institution                                                                          applications of risk management policies and procedures
                                             Coaching could be used to disseminate
                                              knowledge to new recruits into a business and be       Guest speakers could be used to talk about how they set
                                              used as a basis for informal assessment                 up a risk management policy and procedures for their
                                             Mentoring programmes could be used to                   business and what practical difficulties they had in
                                              reinforce the foundational learning from                developing and implementing
                                              classroom training

                                 Distance    Electronic Information Exchanges and BDS
                                 Learning     Web portal, could be used to disseminate training
                                              materials cheaply throughout the country
                                             BDS call centre / support centre could be used
                                              to purchase training materials from

 Client Credit   Set             Face-to-    Seminars and workshops could be used to                Electronic and paper-based manuals with guidelines on
    Limits       standardised      face       showcase latest findings and trends in credit limit     credit limit setting within a micro finance business could be
                 credit limits                setting from experts in the industry                    established. Principles of credit limit setting and
                                             Coaching could be used to disseminate                   management could be included in the content to build
                 for clients
                                              knowledge to new recruits into a business and be        foundational and contextual knowledge of why the skill is
                                              used as a basis for informal assessment                 important to a micro finance business
                                                                                                     A CBT could be developed with scenarios on client credit
                                 Distance    Electronic Information Exchanges and Web-               limit setting and possible associated risk stemming from
                                 Learning     based training, could be used to disseminate            incorrect limit setting
                                              content information cheaply throughout the
                                                                                                     Case Studies on credit limit setting could be developed
                                              country
                                                                                                      through consultation with micro financiers to show benefits
                                                                                                      of sound credit limit setting principles
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                                                              Loan Book Management Outline
Loan book management was rated as the second most important skill in the
survey
                      The Loan Book Management skills area consists of five modules:
          Module                                                       Definition
    Loan Repayments        The ability to effectively record loan data, collect all instalments due and correctly issue
                           receipts
    Loan Book              The ability to reconcile loan repayments with the loan book
    Reconciliation
    Bad Debt Recovery      The effective operation of procedures, systems and practices to recover overdue loan
    Process                repayments and bad debts
    Interest Calculation   Ability to calculate interest on different loans in your business

    Debt Collector         Appoint and manage debt collection agents
    Appointment and
    Management

 Recommended delivery channels and training methodologies
                            Substantial face-              Supported by                   Supported by
                            to-face initiatives             mentoring                   distance learning
                                to develop                 programmes,                   initiatives such
                              foundational                   coaching,                  as CBT, Manuals
                              skills in Risk               seminars and                  and web-based
                              Management                    workshops                         learning



       This key skills needs to be developed through classroom-based learning,
                     supported by coaching and electronic material
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                                                                                              Loan Book Management –
                                                                                                      Survey Findings
The overall importance of loan book management is 82% whilst the reported
skill levels average 68% and 28% of respondents have received training in this
area
                                                                                                       ‘Loan Repayments’ achieved the
                                     Loan Book Management                                               highest level of importance (91%)
          100                                                                                           in the entire survey, which is not
                   91               88
           90                                        87            84                                   surprising due to the nature of the
           80            77                                             74                              industry. As expected, the skill
                                         72                                            70
           70                                             64                                            levels are high in this area (77%)
Percent




           60                                                                                58         and 40% of respondents have
           50                                                                                           received training in this area
           40
           30
                                                                                                       The appointment and management
           20
                                                                                                        of debt collectors is viewed as the
           10
                                                                                                        least important skill, with low skill
            0
                                                                                                        levels and only 18% of
                                                                                                        respondents had received training
                    Loan          Loan Book          Bad Debt      Interest          Debt Collector
                                                                                                        in this area. This could be
                 Repayments      Reconciliation     Recovery     Calculations         Appointment
                                                                                          and
                                                                                                        attributable to the fact that most
                                                    Processes
                                                                                     Management         micro financiers collect debts
                                                                                                        themselves
                                                                                                       Training and skill levels are quite
                        Importance (%)        Skill Level (%)   % Received Training
                                                                                                        low in ‘bad debt recovery
                                                                                                        processes’ indicating a priority for
                                                                                                        training

                Staff need to be trained on how to manage the bad debt recovery process, as
                         well as the appointment and management of debt collectors
                                                                                59
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                                                                                         Loan Book Management
                                                                                      Delivery Recommendations
Loan book management is a core business function for a micro financier
    Module         Learning        Delivery                   Type of Channel                                            Training Method
                   Outcome         Channel
     Loan         Set up a         Face-to-    Seminars and workshops could be used to              Electronic and paper-based manuals could be used to
  Repayments      policy and         face       showcase latest findings and trends in loan           help establish content and situational knowledge of loan
                  procedure                     repayment management from experts in the              repayment principles and included guidelines on the setting
                                                industry and should be offered on an ongoing          of policies and procedures for the loan repayment function
                  for
                                                basis                                                Case Studies could be developed in consultation with
                  recording
                                               Coaching could be used to disseminate                 micro financiers to show various loan repayment
                  loan data,
                                                knowledge to new recruits into a business and be      procedures and policies and to highlight possible pitfalls of
                  collecting all                used as a basis for informal assessment               inappropriate loan repayment practices
                  instalments
                  due and          Distance    Electronic Information Exchanges and BDS
                  correctly        Learning     Web portal, could be used to disseminate
                  issuing                       training materials cheaply throughout the country
                  receipts                     BDS call centre / support centre could be used
                                                to purchase training materials from

  Loan Book       Reconcile        Face-to-    Classroom Training could be used at the              Electronic and paper-based manuals could be developed
 Reconciliation   loan               face       beginning of the learning process to develop          to show the standard steps to be followed when reconciling
                  repayments                    foundational knowledge of loan book                   a loan book. This manual should be developed in
                                                reconciliation                                        consultation with micro finance practitioners to ensure
                  with the
                                               Seminars and workshops could be used to               relevance
                  loan book
                                                showcase latest findings and trends in loan book     A CBT could be developed to show the process to be
                                                reconciliation from experts in the industry and       followed to reconcile the loan book with repayments done.
                                                should be offered on an ongoing basis                 Scenarios could be included, showing possible solutions for
                                               Coaching could be used to disseminate                 common errors in loan book reconciliation
                                                knowledge to new recruits into a business and be
                                                used as a basis for informal assessment

                                   Distance    Electronic Information Exchanges and BDS
                                   Learning     Web portal, could be used to disseminate
                                                training materials cheaply throughout the country
                                               BDS call centre / support centre could be used
                                                to purchase training materials from

                                                                           60
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                                                                                  Loan Book Management
                                                                               Delivery Recommendations
Loan book management is a core business function for micro financiers
  Module     Learning      Delivery                   Type of Channel                                            Training Method
             Outcome       Channel
 Bad Debt   Set up         Face-to-    Classroom Training, could be used at the              Electronic and paper-based manuals could be used to
 Recovery   procedures,      face       beginning of the learning process to develop           help establish content and situational knowledge of loan
 Process                                foundational knowledge of loan book reconciliation     repayment principles and be supplemented by
            systems and
                                       Seminars and workshops could be used to                Instructional videos
            practices to
            recover                     showcase latest findings and trends in bad debt       Case Studies could be developed in conjunction with
                                        recovery process management from experts in the        micro finance practitioners to
            overdue loan
                                        industry and should be offered on an ongoing
            repayments                  basis
            and bad
                                       Coaching could be used to disseminate
            debts                       knowledge to new recruits into a business and be
                                        used as a basis for informal assessment

                           Distance    Electronic Information Exchanges and BDS
                           Learning     Web portal, could be used to disseminate training
                                        materials cheaply throughout the country
                                       BDS call centre / support centre could be used
                                        to purchase training materials from




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                                                                                      Loan Book Management
                                                                                   Delivery Recommendations
Loan book management is a core business function for micro financiers
  Module        Learning       Delivery                   Type of Channel                                            Training Method
                Outcome        Channel
  Interest     Calculate       Face-to-    Seminars and workshops could be used to              Electronic and paper-based manuals could be
 Calculation   interest on       face       showcase latest findings and trends in loan book      developed in consultation with a cross-section of micro
               different                    reconciliation from experts in the industry and       financiers who are involved in different types of lending e.g.
                                            should be offered on an ongoing basis                 Housing, short-term and term lending to develop
               loans in a
                                           Coaching could be used to disseminate                 appropriate models of interest calculation for the industry
               micro finance
                                            knowledge to new recruits into a business and be     A CBT could be developed with a practical, standardised
               business
                                            used as a basis for informal assessment               tool in MS Excel to calculate interest and repayment
                                                                                                  schedules for various types of loans
                               Distance    Electronic Information Exchanges and BDS
                               Learning     portal, could be used to disseminate training
                                            materials cheaply throughout the country
                                           BDS call centre / support centre could be used
                                            to purchase training materials from
   Debt        Appoint and     Face-to-    Seminars and workshops could be used to              Electronic and paper-based manuals could be used to
 Collector     manage debt       face       showcase latest findings and trends in dent           help guidelines on the appointment of debt collection
Appointment                                 collection appointment and management from            agents for a micro finance business. Both micro financiers
   and         collection
                                            experts in the industry                               and debt collection practitioners could contribute to the
Management     agents
                                          • Coaching could be used to disseminate                 development of this manual
                                            knowledge to new recruits into a business and be     Case Studies could developed in conjunction with micro
                                            used as a basis for informal assessment               financiers and debt collection agencies. The case study
                                                                                                  could show the various operating models of collection
                               Distance    Electronic Information Exchanges and BDS
                                                                                                  agents and how they would best suit the needs of their
                               Learning     Web portal, could be used to disseminate training
                                                                                                  micro finance business. Success as well as failure stories
                                            materials cheaply throughout the country
                                                                                                  could be depicted.
                                           BDS call centre / support centre could be used
                                            to purchase training materials from




                                                                        62
                                                                           Cash Management Outline
According to the results from the survey, cash management has the third
highest rating of importance
                           The Cash Management skills area consists of two modules:
         Module                                                       Definition
   Cash Management          The policies and procedures to manage daily cash floats and cashing up to ensure effective
   Procedures               control

   Security Policies and    Setting up policies and procedures for limiting the amount of cash on the premises and
   Procedures               securing the premises against robberies, theft and fraud



 Recommended delivery channels and training methodologies

                                    Predominantly                  Supported by
                                 Internet –based and                 coaching,
                                paper-based training               seminars and
                                       materials                    workshops




  The development of Industry best practices could be used to develop industry-
   wide policies and procedures for the containment of physical risk for micro
                                   financiers
                                                              63
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                                                                                                  Cash Management
                                                                                                     Survey Results
The overall importance of cash management is 81% whilst the reported skill
levels average 65% and 24% of respondents have received training in this area
                                   Cash Management
          100

           90
                                                                                            Security of cash appears to be
                         82                                                                  important to micro financiers (82%)
                                                                   79
           80                                                                                since most micro financiers deal
           70                 67
                                                                                             with a large amount of cash on their
                                                                         63                  premises. 29% of respondents had
           60                                                                                received training in this skill and the
Percent




           50                                                                                reported skill levels were 67%
           40
                                                                                            ‘Security policies and procedures’
                                                                                             were also rated quite high, however
           30                                                                                fewer respondents said they had
           20
                                                                                             received training in this skill (18%)
                                                                                            The overall management of cash
           10
                                                                                             was less important (59%) to
            0                                                                                respondents
                Cash Management Procedures              Security Policies and Procedures


                  Importance (%)      Skill Level (%)       % Received Training



           There appears to be a need for training in the security policies and procedures
                                  pertaining to cash management
                                                                        64
                                                                                            Cash Management
                                                                                 - Delivery Recommendations
The management of cash is core to the running of a micro finance business
    Module             Learning        Delivery                Type of Channel                                         Training Method
                       Outcome         Channel
Cash                Develop policies   Face-to-    Face to face training methodologies not        Electronic and paper-based manuals could be used to
Management          and procedures       face       indicated due to the nature of the subject      help establish content knowledge of how to develop
Procedures                                          being predominantly policy and procedure        policies and procedures as well as disseminate industry
                    to manage daily
                                                    setting based                                   best practices
                    cash floats and
                    cashing up to                                                                  Seminars held by industry experts could be arranged to
                                                                                                    update micro finance practitioners on the latest trends in
                    ensure effective   Distance    Electronic Information Exchanges and            cash management procedures to contain physical risk
                    control            learning     Web-based training, could be used to
                                                                                                   Coaching could be used to disseminate the latest cash
                                                    disseminate latest trends and best practice
                                                                                                    management best practices within businesses
                                                    information cheaply throughout the country
                                                   Training materials could be purchased
                                                    from BDS call centre / training centre

Security Policies   Set up policies                Face to face training methodologies not        Electronic and paper-based manuals could be used to
and Procedures      and procedures                  indicated due to the nature of the subject      help establish content knowledge of how to develop
                                       Face-to-
                    for limiting the                being predominantly policy and procedure        policies and procedures
                                         face
                                                    setting based                                  Seminars and workshops held by security industry
                    amount of cash
                    on the premises                                                                 experts could be arranged to update micro finance
                                       Distance    Electronic Information Exchanges and            practitioners on the latest trends in containing physical risk
                    and securing the
                                                    Web-based training, could be used to            for micro finance businesses
                    premises against   learning
                                                    disseminate latest trends and best practice    Coaching could be used to disseminate the latest trends in
                    robberies, theft
                                                    information on the setting of security          physical risk containment practices
                    and fraud                       policies and procedures Training materials
                                                    could be purchased from BDS call
                                                    centre / training centre




                                                                         65
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                                                                                            Cash Management
                                                                                 - Delivery Recommendations
The management of cash is core to the running of a micro finance business
    Module             Learning        Delivery                Type of Channel                                      Training Method
                       Outcome         Channel
Cash                Develop policies   Face-to-    Face to face training methodologies are not    Electronic and paper-based manuals could be used to
Management          and procedures       face       recommended due to the nature of the            help establish content knowledge of how to develop
Procedures                                          subject being predominantly policy and          policies and procedures
                    to manage daily
                                                    procedure setting based
                    cash floats and
                    cashing up to
                    ensure effective   Distance    Electronic Information Exchanges and
                    control            Learning     Web-based training, could be used to
                                                    disseminate latest trends and best practice
                                                    information cheaply throughout the country
                                                   Training materials could be purchased from
                                                    BDS call centre / training centre

Security Policies   Set up policies                Face to face training methodologies not        Electronic and paper-based manuals could be used to
and Procedures      and procedures                  indicated due to the nature of the subject      help establish content knowledge of how to develop
                                       Face-to-
                    for limiting the                being predominantly policy and procedure        policies and procedures
                                         face
                                                    setting based
                    amount of cash
                    on the premises
                    and securing the   Distance    Electronic Information Exchanges and
                    premises against   Learning     Web-based training, could be used to
                                                    disseminate latest trends and best practice
                    robberies, theft
                                                    information on the setting of security
                    and fraud                       policies and procedures
                                                   Training materials could be purchased from
                                                    BDS call centre / training centre




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                                                                                       Client Service Outline
Client Service was rated as the fourth most important skill area in the learner
needs analysis survey
                             The Client Service skills area consists of five modules:
          Module                                                         Definition
   Client Request           Ability of staff to deal with client requests for loan information, dispute resolution and requests
   Resolution
                            for rescheduling of loans

   Product and Service      The level with which staff are able to successfully provide product and service information to
   Knowledge                clients
   Client Acquisition and   Ability to identify innovative ways of acquiring and retaining customers on an ongoing basis
   Retention Strategies

   Client Education and     Educating and coaching clients in skills to handle their finance so that they can meet their
   Coaching
                            commitments and not incur excess debt
   Client Service           Ability to identify ways to improve service to clients and to act on problem areas
   Improvement


                              Foundational
                                  skills                                                  Followed up by
                              development                    Supported by                  coaching and
                                through                     case studies and                mentoring
                               classroom                        manuals                     workshops
                                training



         A programme on Client Service could be run that covers the skills and
                      knowledge components of client service
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                                                                               Client Service – Survey Results
 The overall importance of client service is 82% whilst the reported skill levels
 average 65%, and 24% of respondents have received training in this area

     100                               Client Service                                            ‘Client request resolution’ and
      90      87             85
                                                                                                  ‘Product and service knowledge’ are
      80
                                               81               79                  77            seen as the most important skills for
      70
                   70             71
                                                                     65
                                                                                                  client service, and the skill levels are
                                                    60                                   57       relatively high
Percent




      60
      50                                                                                         Client service improvement is rated
      40                                                                                          the least important of all the client
      30                                                                                          service skills, and the skill levels are
      20                                                                                          correspondingly low
      10                                                                                         Client acquisition & retention was
       0                                                                                          rated fairly high, although experience
           Client Request   Product and         Client      Client Education   Client Service     would suggest this to be the most
             Resolution       Service       Acquisition &    and Coaching      Improvement        important skill for micro financiers
                            Knowledge        Retention
                                                                                                  given the pressures of increased
                                             Strategies
                                                                                                  competition on their businesses. Only
                                                                                                  19% of respondents had received
                   Importance (%)         Skill Level (%)      % Received Training                training in this skill




            ‘Client acquisiton & retention’ is an important skill and training in this skill
                 could receive a high priority due to the low level training received
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                                                                                                 Client Service
                                                                                    Delivery Recommendations
With increasing competition, client service will become one of the differentiators
in the micro finance industry
  Module        Learning          Delivery                    Type of Channel                                           Training Method
                Outcome           Channel
    Client     Effectively        Face-to-    Role plays could be used to support classroom based         Electronic and paper-based manuals could be
   Request     deal with client     face       training. Scripts for different client requests could be     used to educate on the basic request resolution
  Resolution                                   created and different roles enacted by trainees              processes and frequently asked questions. These
               requests for
                                              Coaching could be used to disseminate knowledge to           could include Client Resolution Job Aids and
               loan
                                               new recruits into a business and to provide ongoing          Process posters to assist staff members
               information,
                                               training to staff on managing client requests. A client     Case Studies would form the basis of the role
               dispute
                                               resolution scorecard could be created by the staff which     plays and be based on real examples collected
               resolution and                  is reviewed weekly and successes tracked                     from branches or reported at the MFRC
               requests for
               rescheduling       Distance    Electronic Information Exchanges and BDS Web
               of loans           Learning     portal, could be used to disseminate training materials
                                               cheaply throughout the country and advise members of
                                               news
                                              BDS call centre / support centre could be used to
                                               purchase training materials from a central point
 Product and   Provide            Face-to-    Classroom Training, could be used at the beginning of       Electronic and paper-based manuals could be
   Service     product and          face       the learning process to develop basic knowledge of           used to educate staff members and new recruits
 Knowledge                                     micro financing products and services. This training         on basic products and services offered by the
               service
                                               must include ways of communicating this information to       business. A job aid and/or “pop quizz” on product
               information to
                                               clients.                                                     features could also be used to ensure information
               clients
                                              Coaching could be used to disseminate knowledge to           is internalised
                                               new recruits and to provide training on any new products
                                               or services

                                  Distance    Electronic Information Exchanges and BDS Web
                                  Learning     portal, could be used to disseminate training materials
                                               cheaply throughout the country and advise members of
                                               news
                                              BDS call centre / support centre could be used to
                                               purchase training materials from a central point

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                                                                                                 Client Service
                                                                                    Delivery Recommendations
With increasing competition, client service will become one of the differentiators
in the micro finance industry
  Module        Learning         Delivery                   Type of Channel                                         Training Methodology
                Outcome          Channel
   Client      Identify          Face-to-    Classroom Training, could be used at the beginning         Case Studies on different company’s strategies
 Acquisition   innovative          face       of the learning process to develop basic acquisition        could be used as supporting material
    and                                       and retention strategies for managers
  Retention    ways of                                                                                   Electronic and paper-based manuals could be
 Strategies    acquiring and                 Seminars and workshops could be used to                     used to help establish basic acquisition and retention
               retaining                      showcase latest best practices for acquisition and          knowledge
                                              retention I.e further research on Customer Lifetime
               customers on
                                              Value and presentations from experts in the field
               an ongoing
                                             Coaching could be used to disseminate knowledge
               basis
                                              to staff

                                 Distance    Electronic Information Exchanges and BDS Web
                                 Learning     portal, could be used to disseminate training
                                              materials cheaply throughout the country and advise
                                              members of news
                                             BDS call centre / support centre could be used to
                                              purchase training materials from a central point


    Client     Educate and       Face-to-    Seminars and workshops could be used to train              Electronic and paper-based manuals could be
  Education    coach clients       face       learners in techniques on how to educate and coach          used to help establish the “how” and the “what” to
     and                                      clients                                                     communicate to clients
  Coaching     in skills to
               handle their                  Role plays could be used to support transfer of skills
               finance so that                techniques in education and guiding clients
               they can meet                 Coaching could be used to disseminate skills and
               their                          techniques to new recruits into a business and to train
                                              on new approaches or methods
               commitments
               and not incur     Distance    Electronic Information Exchanges and BDS Web
               excess debt       Learning     portal, could be used to disseminate training
                                              materials cheaply throughout the country and advise
                                              members of news
                                             BDS call centre / support centre could be used to
                                              purchase training materials from a central point
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                                                                                                 Client Service
                                                                                    Delivery Recommendations
With increasing competition, client service will become one of the differentiators
in the micro finance industry
   Module         Learning         Delivery                   Type of Channel                                           Training Method
                  Outcome          Channel
 Client Service   Identify ways    Face-to-    Seminars and workshops could be used to                  Electronic and paper-based manuals could be
 Improvement      to improve         face       showcase latest findings and trends in client service     used to help establish basic client service principles
                  service to                    improvement from experts in the industry                  and behaviours
                  clients and to               Role plays could be used to help staff identify ways     Video could be used to illustrate international or local
                  act on                        to improve service                                        examples of good client service
                  problem                      Coaching could be used to disseminate skills and
                  areas                         techniques to new recruits into a business and ensure
                                                ongoing development takes place. This skills lends
                                                itself to ongoing coaching and guidance

                                   Distance    Electronic Information Exchanges and BDS Web
                                   Learning     portal, could be used to disseminate training
                                                materials cheaply throughout the country and advise
                                                members of news
                                               BDS call centre / support centre could be used to
                                                purchase training materials from a central point




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                                                                                        Finance Outline (1)
Finance has nine skill areas that require development

                             The Finance skills area consists of nine modules:
         Module                                                    Definition
   Cost Management       Ability to understand cost management data and cost management reports required to run a
                         micro finance business
   Management Report     The ability to prepare and interpret management reports on client trends, overdue loans, bad
   Preparation           debt and other information essential to managing the business
   Financial Statement   The ability to prepare and /or read the financial statements and form an opinion of the financial
   Preparation           health of the business.
   Business Ethics       Applying business practices that will contribute in setting an image of the micro finance industry
   Alignment             as part of the formal financial services sector, always acting in the interest of clients and the
                         community
   Budgeting and         The ability to prepare budgets and conduct financial planning in a business (debt, cashflow,
   Financial Planning    payments etc)




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                                                                                         Finance Outline (2)
Finance has nine areas that require development

                             The Finance skills area consists of nine modules:
          Module                                                    Definition
   Internal Audit        Ability to examine the business’s accounting records, processes, systems and administration to
                         ensure compliance and to prevent fraud
   Accounting Packages   The ability to use computer-based accounting packages


   Cash Flow             Having an understanding of the amount of cash needed to fund the demand for loans at
   Management            different times of the month and year (e.g. In December, the demand for loans may increase
                         due to Christmas) and ongoing operations

   Tax Calculation       The ability to calculate tax calculations (e.g.employees and provisional tax).



                           Foundational
                               skills
                           development                    Seminars,                  Case studies,
                             through                    workshops and               simulations and
                            classroom                     coaching                       CBT
                             training




         In the past, there has been a lack of focus on internal auditing by micro
          financiers, a trend which could open such businesses to internal fraud
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                                                                                                                                    Finance
                                                                                                                              Survey Results
  The overall importance of finance is 78% whilst the reported skill levels average
  61% and 29% of respondents have received training in this area
                                                         Finance                                                   As expected, the financial functions
     100                                                                                                            of micro financiers are very
          90                                                                                                        important, with many skill areas
               83          82        82        82
          80                                               79        78        77             77
                                                                                                                    achieving an 80% importance level
                                                                                                                   A cause for some concern is the low
          70        67                                                                                  66
                                64        65
                                                    62          62                  61
                                                                                                   65               level of skills reported in the
          60                                                              57                                        preparation of financial statements
Percent




          50                                                                                                 48     (65%), despite the finding that 42%
                                                                                                                    of respondents had received training.
          40
                                                                                                                    This suggests that past training has
          30                                                                                                        not been effective
          20                                                                                                       ‘Tax calculations’ were rated as the
          10                                                                                                        least important skill, with skill levels
                                                                                                                    and training far below that of the
          0                                                                                                         other finance skills. Perhaps this
               Cost         Mgt      Financial Business Budgeting    Internal Accounting Cashflow    Tax
               Mgt         Report    Statement Ethics & Financial    Audits    Packages    Mgt    Calculations      function is performed by tax
                           Prep         Prep   Alignment Planning                                                   consultants or accountants and not
                                                                                                                    by micro financiers themselves.
                                                                                                                    There is a need for training in this
                         Importance (%)        Skill Level (%)         % Received Training
                                                                                                                    area in order to enable micro
                                                                                                                    financiers to understand the tax
                                                                                                                    implications of business operations

               Training could be offered across all finance skill areas to the relevant people
                       who fulfill financial functions in micro finance organisations
                                                                                         74
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                                                                                    Delivery Recommendations
 Module     Learning       Delivery                         Type of Channel                                             Training Method
            Outcome        Channel
Cost      Understand       Face-to-    Classroom training could be used at the beginning of the        Case studies could be developed in consultation
Manage    cost               face       learning process to develop foundational knowledge of cost       with micro financiers where a learner would need to
ment                                    management                                                       perform a profitability analysis (cost drivers) –
          management
                                       Mentoring programmes could be used to reinforce the              identify the major costs of 3 different micro finance
          data and cost
                                        foundational learning from classroom training                    businesses and ways of reducing their costs
          management
                                       Seminars and workshops could be used to showcase latest         Practical exercises could be developed where the
          reports
                                        findings and trends in cost management from experts in the       learner would need to prepare a cost budget for
          required to                                                                                    their micro finance business
                                        industry
          run a micro
                                       Coaching could be used to disseminate knowledge to new          Specific computer application training for cost
          finance                                                                                        management reporting
                                        recruits into a business
          business
                                                                                                        Electronic and paper-based manuals could be
                           Distance    Electronic Information Exchanges and Web-based training,         used to help establish content and situational
                           Learning     could be used to disseminate content information cheaply         knowledge of costing accounting and cost
                                        throughout the country                                           management principles
                                       Training materials could be purchased from BDS call centre /    A CBT could be developed which would take
                                        training centre                                                  learners through the micro finance case studies and
                                                                                                         practical exercises as mentioned above
Manage    Prepare and      Face-to-    Classroom training, could be used at the beginning of the       Electronic and paper-based manuals could be
ment      interpret          face       learning process to develop foundational knowledge of cost       developed which incorporate the interpretation and
Report                                  management                                                       understanding of exception reports, warning signs
Prepara   management
                                       Mentoring programmes could be used to reinforce the              of potential problems, reasons for rising costs and
tion      reports on
                                        foundational learning from classroom training                    for declining revenues
          client trends,
                                       Seminars and workshops could be used to showcase latest         A CBT with a simulation of how to put together
          overdue
                                        findings and trends in cost management from experts in the       management reports for a micro finance business
          loans, bad                                                                                     could be developed and be based upon
                                        industry
          debt and
                                       Coaching could be used to disseminate knowledge to new          Case studies could be used to impart contextual
          other                                                                                          and situational knowledge and solutions
                                        recruits into a business
          information
          essential to     Distance    Electronic Information Exchanges and Web-based training,
          managing a       Learning     could be used to disseminate content information cheaply
          micro finance                 throughout the country
          business                     Training materials could be purchased from BDS call centre /
                                        training centre


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Davidsb:
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                                                                                     Delivery Recommendations
  Module      Learning Outcome        Delivery                  Type of Channel                                          Training Method
                                      Channel
 Financial    Prepare and /or         Face-to-    Classroom training could be used at the             Electronic and paper-based manuals could be used to
 Statement    read the financial        face       beginning of the learning process to develop         help establish content and situational knowledge of how
Preparation                                        foundational knowledge of Income                     to read and interpret financial statements as well as
              statements and
                                                  statements,balance sheets and cash flow               develop an understanding of the interdependencies
              form an opinion of
                                                   statement preparation                                between the different types of financial statements
              the financial health
                                                  Mentoring programmes could be used to               An interactive CBT could be developed where the
              of the business
                                                   reinforce the foundational learning from             learner would “prepare” financial statements for a
                                                   classroom training                                   hypothetical micro finance business
                                                  Seminars and workshops could be used to             Case Studies could be developed and used to
                                                   showcase latest findings and trends in financial     compare financial statements from several micro-
                                                   statement preparation from experts in the            finance businesses and could form the basis of an
                                                   industry                                             analysis of relative financial ‘health’ of the businesses
                                                  Coaching could be used to disseminate
                                                   knowledge to new recruits into a business

                                      Distance    Electronic Information Exchanges and Web-
                                      Learning     based training, could be used to disseminate
                                                   content information cheaply throughout the
                                                   country
                                                  Training materials could be purchased from a
                                                   BDS call centre / training centre

Business      Apply business          Face-to-    Seminars and workshops could be used to             Case Studies of micro-finance business practices could
  Ethics      practices that will       face       showcase latest findings and trends in business      be developed and be used to depict implications of not
Alignment     contribute in setting                ethics alignment from experts in the industry        applying ethical business practices. The case study
                                                  Coaching could be used to build and                  could involve learners making value judgments and
              an image of the
                                                   perpetuate the application of business ethics in     giving feedback on what they would do in the given
              micro finance
                                                   the micro-finance industry                           situations
              industry as part of
                                                                                                       Electronic and paper-based manuals could be used to
              the formal financial    Distance    Electronic Information Exchanges and Web-            help establish content and situational knowledge of
              services sector,        Learning     based training, could be used to disseminate         business ethics for the micro-finance industry
              always acting in the                 content information cheaply throughout the
              interest of clients                  country
              and the community                   Training materials could be purchased from
                                                   BDS call centre / training centre

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Davidsb:
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                                                                                  Delivery Recommendations
 Module      Learning     Delivery                         Type of Channel                                               Training Method
             Outcome      Channel
Budgeting   Prepare       Face-to-    Classroom training, could be used at the beginning of the        Case Studies could be used to develop an
   and      budgets and     face       learning process to develop foundational knowledge of             understanding of what should be included in a
Financial                              budgeting and financial planning                                  budget and how to calculate budget entries. In
 Planning   conduct
                                      Mentoring programmes could be used to reinforce the               addition, the case study could help the learner
            financial
                                       foundational learning from classroom training                     identify strategies to maximise cash flow while at the
            planning in
                                      Seminars and workshops could be used to showcase latest           same time ensuring timeous payment by customers
            a business
                                       findings and trends in budgeting and financial planning from     Electronic and paper-based manuals could be
            (debt, cash                                                                                  used to help establish content and situational
                                       experts in the industry
            flow,                                                                                        knowledge of how to plan what finances a
            payments                  Coaching could be used to disseminate knowledge to new
                                       recruits into a business                                          hypothetical micro finance business will need in the
            etc)                                                                                         future based on past expenditures as well as develop
                          Distance    Electronic Information Exchanges and Web-based                    an understanding of the differences between cash
                          Learning     training, could be used to disseminate latest trends and best     and credit
                                       practice information cheaply throughout the country
                                      Training materials could be purchased from BDS call centre /
                                       training centre




                                                                       77
Davidsb:
 PIENAAR:
 hidden                                                                                             Finance
                                                                                   Delivery Recommendations
 Module      Learning      Delivery                              Type of Channel                                               Training Method
             Outcome       Channel
 Internal   Examine        Face-to-    Classroom training could be used at the beginning of the learning           Case studies could be developed from
  Audit     the              face       process to develop foundational knowledge of internal auditing practices     actual micro-finance businesses and be
            business’s                 Mentoring programmes could be used to reinforce the foundational             used to assimilate do’ s and don’ts of
                                        learning from classroom training                                             internal auditing
            accounting
            records,                   Seminars and workshops could be used to showcase latest findings and        The case studies could be supplemented
                                        trends in cost management internal auditing practices be used to             by a CBT which could take the learner
            processes,
                                        disseminate knowledge to new recruits into a business                        through the steps on how to conduct an
            systems                                                                                                  internal audit
            and
                                                                                                                    Electronic and paper-based manuals
            administrati   Distance    Electronic Information Exchanges and Web-based training, could be            could be used to help establish content
            on to          Learning     used to disseminate latest trends and best practice information cheaply      and situational knowledge of how to
            ensure                      throughout the country                                                       conduct an internal audit and could
            compliance                 Training materials could be purchased from BDS call centre / training        include topics such as:
            and to                      centre                                                                               What constitutes an audit
            prevent                                                                                                          The importance of conducting
            fraud                                                                                                              an internal audit
                                                                                                                             Computerised accounting
                                                                                                                               packages vs. manual
                                                                                                                               accounting methods
                                                                                                                             How to prepare a full audit for
                                                                                                                               reporting purposes
                                                                                                                             Audit a hypothetical micro
                                                                                                                               financier’s business and identify
                                                                                                                               problems
                                                                                                                    Learners could be asked to complete an
                                                                                                                     assignment in which they conduct a
                                                                                                                     mock internal audit of their own micro-
                                                                                                                     finance business




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                                                                                                   Finance
                                                                                  Delivery Recommendations
  Module     Learning     Delivery                           Type of Channel                                            Training Method
             Outcome      Channel

Accounting   Use          Face-to-    Classroom training, could be used at the beginning of the           Electronic and paper-based manuals
Packages     computer-      face       learning process to develop foundational knowledge of accounting     could be developed and distributed by
             based                     packages. (Existing training courses which are currently being       Software vendors for their specific packages.
                                       presented by software vendors could be incorporated into the         Topics that could be included in the manual:
             accounting
                                       curriculum)                                                                  Manual vs electronic accounting
             packages
                                      Seminars and workshops could be used by accounting package                     methods
                                       vendors to showcase latest trends in accounting packages                     Introduction to basic accounting
                                                                                                                      principles
                          Distance    Electronic Information Exchanges and Web-based training,
                                       could be used to disseminate content information cheaply            Case studies could be used to show the
                          Learning
                                       throughout the country                                               application of accounting packages in micro
                                                                                                            finance businesses
                                      Training materials could be purchased from a BDS call centre /
                                       training centre

Cash Flow    Understan    Face-to-    Classroom training, could be used at the beginning of the           Case studies could be developed where
Management   d the          face       learning process to develop foundational knowledge of cash flow      learners can analyse the cash flow positions
             amount of                 management                                                           of various micro-finance businesses and give
                                      Mentoring programmes could be used to reinforce the                  input on how to optimise cash flow for “ailing
             cash
                                       foundational learning from classroom training                        businesses”
             needed to
                                      Seminars and workshops could be used to showcase latest             Electronic and paper-based manuals
             fund
                                       findings and trends in cost management from experts in the           could be used to help establish content and
             demand for                                                                                     situational knowledge of cash flow
                                       industry
             loans                                                                                          management principles Topics that could be
                                      Coaching could be used to disseminate knowledge to new
                                       recruits into a business                                             included :
                                                                                                                     Predicting the amount of cash
                          Distance    Electronic Information Exchanges and Web-based training,                        needed based on customer
                          Learning     could be used to disseminate content information cheaply                        behaviour and past loan history
                                       throughout the country                                                        Identifying ‘busy’ times of the year
                                      Training materials could be purchased from BDS call centre /                    and month and budgeting
                                       training centre                                                                 accordingly
                                                                                                           A business simulation CBT could be
                                                                                                            sourced or developed which would help
                                                                                                            build skills in effective cash flow
                                                                                                            management

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                                                                                                      Finance
                                                                                     Delivery Recommendations
  Module        Learning         Delivery                        Type of Channel                                           Training Method
                Outcome          Channel

Tax           Calculate tax     Face-to-face    Classroom training, could be used at the beginning       Assignments could be used where learners are
Calculation   calculations                       of the learning process to develop foundational           required to :
              (e.g.employees                     knowledge of tax calculations and principles of South             Prepare hypothetical tax returns for a micro
                                                 African tax                                                         finance business
              and provisional
              tax)                              Mentoring programmes could be used to reinforce                   Complete a VAT claim form for a
                                                 the foundational learning from classroom training                   hypothetical business
                                                Seminars and workshops could be used to                  Electronic and paper-based manuals could be
                                                 showcase latest findings and trends in cost               used to help establish content and situational
                                                 management from experts in the industry                   knowledge of tax calculation principles. Topics that
                                                Coaching could be used to disseminate knowledge           could be included :
                                                 to new recruits into a business                                   Understanding the different types of taxes
                                                                                                                     applicable to a micro financiers business
                                 Distance       Electronic Information Exchanges and Web-based
                                                 training, could be used to disseminate content                    Learning how to calculate PAYE for a
                                 Learning
                                                 information cheaply throughout the country                          number of different employees
                                                Training materials could be purchased from BDS call               Understanding the process of registering for
                                                 centre / training centre                                            tax purposes




                                                                          80
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                                                                 Recommendations on Skills
                                                                 Programmes / Learnerships
A skills programmes should be instituted initially, with scope to develop a
learnership in the future as soon as a formal qualification in micro finance is
developed and capacity has been built for training providers
   No qualification in micro finance exists at present, leaving the learner without a specific goal / qualification to
    work towards
   The approach to the training of micro finance related topics has been very fragmented, with little agreement
    between providers on content, methodologies and guiding principles
         In the past, training has either been very generic in nature or very specific to a particular business
   There is a distinct lack of existing micro finance specific accredited education and training institutions to offer
    the formal training components of the learnership
      Capacity needs to be developed within the training industry to cater for the specific training needs of
       micro financiers
      Capacity building may take a number of years before training providers are proficient in the delivery of
       micro finance specific training content
   Modules within identified skills areas could form the basis of a skills programme, which could be seen as
    credits towards a qualification in micro finance


      A skills programme comprising several modules should be developed and
           micro financiers can select the courses according to their needs
                                                          81
                                                                                  Recommendations on Skills
                                                                                               programme
Several skills programmes, made up of modules could be implemented. The
overall guiding principle should be flexibility of learning, based upon needs
                                                                                   Purpose
                                                                                      Provide micro finance practitioners with a wide choice of
                                                                                       industry specific and generic training to promote
                                                                                       professionalism through building knowledge and skills in the
                                                                                       industry
                                                                                   Focus
                                         Skills                                       The Skills programme will initially be focused on developing
                                      programmes                                       skills in competency areas identified as being high priority.
                                                                                       These areas have been identified in the learner needs
                                                                                       analysis as Risk Management, Loan Book Management,
                                                                                       Client Service, Legal and Regulatory Compliance, Cash
                                        Modules                                        Management and Finance
                              e.g. within Risk Management,
                                   Fraud Management                                   Once these skills programmes have been rolled out, the rest
                             is a module and could form the                            of the skills areas can be developed as part of the skills
                         basis for a credit towards a qualification                    programme
                                                                                   Orientation
                                                                                      Relevance, importance and necessity of the Skills
                                    Skill areas                                        programme should be driven through micro finance business
                              e.g. Risk Management,                                    needs and demand
                                   Client service,                                 Learning Activities
                              Loan book Management
                                                                                      A combination of distance learning and face-to-face learning
                                                                                       activities will need to be coordinated through a central body.
                                                                                       The proposal is that this be a centralised BDS / Training
                                                                                       centre
                             Sequencing of learning
           High level recommendations of the sequencing of learning events
                                should be formulated
                  e.g. Business strategy should come before funding




Ref: Skills Development, Ian Bellis, 2001                                    82
                                                                            Overall Conclusions
Skills programmes, made up of prioritised modules could be implemented as
flexible learning offerings to the micro-finance industry

     The implementation of the training should be pushed through in the form of modular-based skills
      programmes

     The overall guiding principle should be that of a learning organisation approach

     The delivery of training materials should be through a combination of different delivery channels and
      should be offered in parallel through both distance and face-to-face methods

     Use should be made of the 80 / 20 principle when implementing the Skills programme

        The 20 %of learning that will deliver 80% of the value should be prioritised in the roll-out

     Extensive use should be made of South African, micro finance industry specific content for case studies
      and other training materials

     Extensive marketing of the Skills programme should be done to increase awareness




          Learning initiatives should be prioritised by industry skills needs

                                                       83
                                                                                               Next Steps
Prioritised skills areas should be agreed upon and developed first
   Final agreement on the prioritisation of skills areas should be reached by the project steering committee

   More in-depth content knowledge for each skills area should be identified through consultation with a wide
    range of industry experts

   Expression of interest communications need to be developed and should be expressly geared towards
    service providers who are able to deliver on the development of agreed prioritised skills training materials

   Training providers who were identified by the project team as well as those who responded to the
    expression of interest should attend a detailed briefing session on the express requirements for the
    development of training materials for the prioritised skills areas

      Development timelines, level of detail, materials content quality assurance standards, guidelines for
       delivery methods of training materials such as CBT, videos and manuals should be outlined in the
       briefing sessions

      Feedback from attendees should be obtained and recorded for RFP purposes

   An Request For Proposal (RFP) should be sent out to all interested training provider parties

   Unit standards should be developed from the skills programmes once the detailed design of the curriculum
    has been established


                                                        84
                                                                         Agenda

                 Agenda Item                      Resp.             Time

1. Project Approach                          Wendy Pienaar       5 min
2. Lender and Consumer Survey Summary        Wendy Pienaar       5 min
3. Business Development Support Assignment   Alicia Greenwood   15 min
4. Curriculum Framework Assignment           Brent Davids       15 min
5. Selection Assignment                      Wendy Pienaar       5 min

6. The Way Forward                           Wendy Pienaar       5 min

7. Breakout Instructions                     Heather Watson      5 min




                                        85
                                                                                   Focus of the Selection
                                                                                             Assignment
The Selection Assignment focuses on selecting micro financiers and training
providers for participation in the Micro Finance Skills Project
 Selection   Determine the criteria for selecting micro              Initial criteria identified
 Criteria    financiers and training providers to participate in     Criteria workshopped with Curriculum Development
             each of the following areas of the Micro Finance         Team (CDT)
             Skills Project:                                         Final criteria decided on
                   Prototype
                   Pilot
                   Phase 1

 Selection   Determine the high level processes for selecting        Reviewed best practice procurement processes
 Processes   micro financiers and training providers to              Tailored processes to align with project
             participate in the project                              Developed a ‘process flow’ for selecting micro financiers
                                                                      and training providers
 Capacity    Identify the gaps between the training required         Developed an excel spreadsheet for trainers to complete
 Plan        by micro financiers and the current capacity of         Reviewed spreadsheet with CDT
             training providers                                      Sent spreadsheet to 96 potential training providers
                                                                     Received completed profiles and consolidated into one
                                                                      database
                                                                     Identified gaps in terms of current capacity and ‘learner
                                                                      needs analysis’
 Contract    Develop the high level content of an agreement          Identified terms of agreement for individual learners
             for micro financiers and individual learners and        Identified areas to be included in an agreement between
             a contract for training providers                        trainers and trainees
                                                                     Identified legal clauses to be incorporated into contract

                                                               86
                                                                                                  Selection Criteria –
                                                                                                    Micro Financiers
Micro financiers should be based in Gauteng, belong to an association or
franchise and be willing and able to participate in the project
  Criteria for selecting the first 200 micro financiers for Phase 1 of                       Examples of criteria for selecting
                    the Micro Finance Skills Project                                                micro financiers

          Criteria                                  Reasons
                                Legal, regulated lending operation
 Registered with the MFRC  Can be identified as a micro financier

                                Focused proximity
                                Reduction in cost
 Based in Gauteng                                                                                   Gauteng
                                Easier to manage


 Either a consumer or           Maintain focus
 SMME lender                    Develop curricula specific to each type of lender

                                Use existing loyalties and communication
                                 channels
 Association membership/        Maximise participation by sponsorship and
 franchisee                      recommendation from association/franchiser



                                Must be committed to completing training
 Willing and committed          Must be willing to participate in prototype, pilot or
                                                                                            Consumer and SMME micro
                                 phase 1 as the need arises                              financiers will be the focus of the
                                                                                             first phase of the project
                                                                             87
                                                                                    Project Targets
In line with the project targets, a total of 200 consumer and SMME micro
financiers will be selected to participate in the project




                                     Dvt Phase
                 Candidates
                 SMME’s/




                                                                                     TOTALS
                                                 Delivery


                                                            Delivery




                                                                       Delivery
                                     Year 0


                                                 Year 1


                                                            Year 2




                                                                       Year 3
            No




            1    Micro lenders       0           200        400        600          1200
            2    SMME-Borrower
                 clients
                  Micro-lenders    0           0          250        350           600
                  Banks            0           0          250        350           600
                                                            (120 for   (120 for BDS) 1200
                                                            BDS)
            3    Individual
                 Borrower clients
                  Pilot            0           0          200        300          500
                  Micro-lenders    0           0          800        1200         2000
                  Banks            0           0          1200       2300         3500
                                                                                    6000
            4    Service providers   30%         60%        10%        0            100%
            5    Assessors           0           40%        50%        10%          100%
            6    Moderators          0           40%        50%        10%          100%
            7    Mentors             0           40%        50%        10%          100%
                                                            88
                                                                            Selection of Micro Financiers –
                                                                                              Assumptions
The following guiding principles are recommended for selecting micro financiers
  Guiding Principles
         75% of the participants during the first year will be consumer micro financiers, as they make up the majority (in
          terms of numbers) of micro financiers in the industry
         The remaining 25% of participants will be taken from SMME lenders in order to maintain focus by developing two
          curricula for the first phase
         67% of participants will be managers, as they are assumed to have the greatest impact on their organisations and
          all courses are applicable to managers

  Supporting notes to the following two slides:

   Note                                                           Assumption
            Staff and managers were chosen in the ratio of 2 managers for 1 staff member
      a     10% of the micro financiers to participate in the first year should be selected to develop the prototype
            We assumed that managers and staff would both have valuable feedback in terms of developing the training prototype
            Staff and managers were chosen in the ratio of 2 managers for 1 staff member
            15% of the micro financiers to participate in the first year should be selected to participate in the pilot
      b
            The assumption is that both staff and managers need to be tested and give feedback in terms of the relevance of the training
             material and delivery channels developed during the prototype
            Staff and managers were chosen in the ratio of 2 managers for 1 staff member
            75% of the micro financiers to participate in the first year should receive training during phase 1 of the project
            It is assumed that managers would have a greater impact on their organisation than a single staff member, and would pave the
      c
             way for their staff to receive training in the future (phases 2 and 3)
            During phase 1, the training developed during the prototype and pilot stages will be delivered to both managers and staff to
             check the functionality on a larger scale


                                                                           89
                                                                                   Selection of Micro Financiers –
                                                                                                        Consumer
In order to have a representative sample in the project pilot, both managers and
staff need to be selected from the different types of micro finance institutions
                       Recommendations for the number of Consumer Micro Financiers to participate

                                                 Prototype                                   Pilot                                   Phase 1

          # Participants                  10 Managers 5 Staff a                    15 Managers 7 Staff b                     75 Managers 38 Staff c
                                  Registered with the MFRC                   Registered with the MFRC                Registered with the MFRC
                                  Based in Johannesburg                      Based in Johannesburg and               Based in Gauteng
                                  Willing and committed to develop training   selected provinces for testing          Willing and committed to undergo
                                   prototype                                   purposes                                 training
          Selection Criteria
                                  Member of an association or franchise      Willing and committed to participate    Member of an association or franchise
                                                                               in the training pilot
                                                                              Member of an association or
                                                                               franchise
                                  Test training prototype (course content    Test delivery and roll-out approach  Micro financiers selected from Gauteng
                                   and delivery channels) and ensure that it  Test whether delivery channels are for ease of coordination and cost
                                   is aligned to consumer micro financiers’    functional outside of Johannesburg containment during phase 1
          Reason for               needs                                                                            Delivery of training to phase 1 micro
                                                                              Give feedback to curriculum
          selecting               Micro financiers developing the prototype   developers on what works well and financiers
                                   can ‘spread the word’ about the project     what needs improvement
                                   and build awareness with colleagues



                       A total of 150 managers and staff from consumer micro financiers will
                           participate in the first year of the Micro Finance Skills Project
a; b; c
          see previous “Selection Assumptions” slide
                                                                                 90
                                                                                   Selection of Micro Financiers –
                                                                                                           SMME
In order to have a representative sample in the project pilot, managers and staff
need to be selected from the different types of micro finance institutions
                           Recommendations for the number of SMME Micro Financiers to participate

                                           Prototype                                    Pilot                                     Phase 1

          # Participants             5 Managers 3 Staff a                      8 Managers 4 Staff b                      20 Managers 10 Staff c
                              Registered with the MFRC               Registered with the MFRC                   Registered with the MFRC
                              Based in Johannesburg                  Based in Johannesburg and selected         Based in Johannesburg
                              Willing and committed to develop        provinces for testing purposes             Willing and committed to undergo
          Selection
                               training prototype                     Willing and committed to participate in     training
          Criteria                                                     the training pilot
                              Member of an association (e.g. Khula)                                              Member of an association (e.g. Khula)
                                                                      Member of an association (e.g. Khula)


                              Test training prototype (course content  Test delivery and roll-out approach      Undergo training to uplift skills
                               and delivery channels) and ensure that  Test whether delivery channels are
                               it is aligned with SMME micro             functional outside of Johannesburg
          Reason for           financiers’ needs                        Give feedback to curriculum
          selecting           Micro financiers developing the           developers on what works well and
                               prototype can ‘spread the word’ about     what needs improvement
                               the project and build awareness with
                               colleagues



                A total of 50 managers and staff from SMME lenders will undergo training
                             in the first year of the Micro Finance Skills Project
a; b; c
          see previous “Selection Assumptions” slide
                                                                                  91
                                                                                                  Next Steps
The following next steps must be completed for the prototype stage, pilot
phase and phase 1 of the project

            Prototype                                   Pilot                                  Phase 1

1. Approach associations and             1. Approach associations and             1. Approach associations and
   franchises asking for them to            franchises asking for them to            franchises asking for them to
   contact and put forward names            contact and put forward names            contact and put forward names
   of potential participants to assist      of potential participants to             of potential trainees
   with the development of a                participate in the pilot phase        2. Contact potential trainees and
   prototype                             2. Contact potential participants           hold a briefing session
2. Contact potential participants           and hold a briefing session              describing roles, responsibilities,
   and hold a briefing session              describing roles, responsibilities,      and expectations
   describing roles, responsibilities,      and expectations of their             3. Participants to sign an
   and expectations of them and the         involvement in testing content           agreement which commits them
   project                                  and delivery channels across the         to undergoing training
3. Develop the prototype with               country
                                                                                  4. Roll out training to consumer
   training providers and test with      3. Participants to sign an                  and SMME micro financiers
   micro financiers                         agreement which commits them
4. Participants to sign an                  to participating in the pilot
   agreement which outlines their        4. Test the training program with
   role in completing the prototype         the pilot group of micro
   development                              financiers and rectify any
                                            problem areas


                                                           92
                                                                                                           Selection Criteria –
                                                                                                           Training Providers
Since few micro finance specific training providers exist, potential providers
must be able to tailor existing materials to suit the industry’s training needs
 Criteria for selecting training providers to participate in phase 1                                 Examples of criteria for selecting
                 of the Micro Finance Skills Project                                                       training providers

          Criteria                                   Reasons
Intend to register with          Quality measures automatically in place
BANKSETA ETQA if not             Required by BANKSETA
already accredited*                                                                                               Electronic
                                                                                                                communication
                                 Different courses/modules require different                                                          Registration
                                  delivery channels                                            Geographical
Multiple delivery channels                                                                        reach
                                 Providers must either currently have multiple
                                  channels or capacity to develop them

Geography                        Ability to deliver training to all provinces                                                          Textbooks and
                                                                                         Computer based                                    manuals
                                 Trainers will be required to keep records of
                                                                                            training
Learner records and               learners
                                                                                                                     Workshops
training reports                 Trainers will need to deliver training feedback
                                  reports
                                 Check general training credentials                                                                            On-the-job
                                                                                                                                                 training
Sound training track record      Identify any past micro finance experience, where
                                  applicable                                                     Videos
                                                                                                                      CD - ROM
Ability to develop micro      Few providers currently train micro financiers
finance specific training in  Training needs to be relevant to micro financiers      *This has been identified as a gap in the capacity plan
conjunction with micro         and will need to be developed by consulting with
                               micro financiers
financiers

                                                                                 93
                                                                                       Selection of Training Providers-
                                                                                                         Scoring Model
Training providers could be assigned a score according to the number of
criteria that they meet
                                                                                                                                                   Illustrative
                   Accreditation                          Micro Finance Experience                                             Skill Areas
                Criteria                   Score                  Criteria                     Score                   Criteria                       Score
   Accredited with ETQA                      5      Has experience training micro                5     Has experience in 10-14 skill areas              5
   Not accredited but will meet criteria     2      financiers                                   2     Has experience in 5-10 skill areas               2
                                                    Has experience in generic skills             0     Has experience in less than 5 skill areas        0
                                                    Has no experience yet


                            Channels                                           Geography                                           Definition of Scores
                      Criteria                      Score                  Criteria                  Score                        5 = highest possible score
   Uses all key channels frequently                   5        Trains in all provinces                 5                               2 = medium score
   Has capacity to use all key channels               2        Can train in all provinces              2                          0 = lowest possible score
   Does not have capacity to develop key channels     0        Cannot train in all provinces           0




  Example of Score Received                                                                                       Interpretation of % Received

            Max Score = 25                                                                       75-100%     = Highly Recommended
        Score Received = 11                                                                      50-75%      = Recommended
                                                                                                 25-50%      = Requires improvement before consideration
          % Received = 44%                                                                       0-25%       = Not recommended for further consideration



    The above illustration is for trainers who will be providing micro finance
 specific training. A similar scoring model could be developed for other trainers
                                                                                       94
                                                   Training Provider Capacity Profile
An electronic profile form was sent to 96 training providers for them to complete,
in order to understand their current capacity

           The following areas were tested by the profile:
                     Accreditation with an Education & Training Quality Assurance (ETQA) body
                     Provinces that could receive the training
                     Current courses offered
                     Training delivery channels (current and future)
                     Relevant past experience (references)

           The following sources were used to identify training providers (96 in total):
                     BANKSETA Expression of Interest Advert (Saleem Sheik)
                     List of Accredited Training Providers (Frank Groenewald)
                     Project stakeholder list (Accenture)
                     National HR & Training Directory

           Response rate:
                    A total of 96 training providers received the profile forms via emailed
                    37 training providers completed the survey and returned it
                    The response rate was 39%
                    According to Markinor, a response rate of 20% for electronic surveys is considered
                     a good response



       The response rate was double the rate the market researchers consider to
                           be good for electronic surveys
                                                        95
                                                                                          Capacity Plan –
                                                                               Capacity Building Required
A number of gaps were identified in the training providers’ capacity, and
providers will need to undergo capacity building where required

               Capacity gap                                                Capacity building required
                                                 The BANKSETA requires training providers must qualify for accreditation with the
    Only 5 % of training providers are            BANKSETA
    currently accredited with the                Training providers will have to apply to the BANKSETA and register as accredited training
    BANKSETA ETQA                                 providers

                                                 Training in the finance industry has not had a focus on micro finance-specific skills to date
    Not all of the skill areas tested receive    New materials may have to be developed that are relevant to micro financiers
    a significant amount of training             Training providers will need to develop micro finance-specific training materials during the
    providers’ focus                              prototype and test these with micro selected financiers


                                                 Many of the modules identified by the curriculum framework require hi-tech, electronic
                                                  delivery channels
    Traditional, paper-based training            Training providers that do not have the required channels will have to develop them in order
    delivery is most frequently used by           to be selected as providers of training to the project
    the profiled training providers              One way of doing this is by forming an alliance with another company that has the required
                                                  channel, as opposed to developing the channel from scratch




   In addition to the gaps identified by the electronic profile, training providers will also
   need to track learner participation and provide feedback on training delivered, as part
                       of a formal assessment and feedback process
                                                                    96
                                                               Capacity Plan –
                                   Accreditation and Micro Finance Experience
Only 43% of training providers are accredited with an ETQA and 5% are
accredited with the BANKSETA. Micro finance training experience is limited
                                        Number of Training Providers Registered with an ETQA
                            Services SETA         ETDP SETA         BANKSETA        HEQC SETA     ISETT      Total

         # Accredited
                                    8                  3                2                 2          1        16
          Providers

  1.   A total of 16 training providers (43%) are registered with an Education and Training Quality Assurance body (ETQA)
  2.   10 training providers (27%) are in the process of becoming accredited
  3.   11 training providers (30%) are not accredited with an ETQA

                                Experience of Training Providers in the Micro Finance Industry

              # of Providers who have offered training # of Micro Finance Specific Courses Offered

                                   14                                               76

  1.   A total of 14 training providers (38%) have offered specific micro finance training
  2.   In total, these 14 training providers have offered 76 micro finance specific courses



  Training providers will eventually be accredited with the BANKSETA ETQA and
 micro finance specific training will be developed, so these are not limiting factors
                                                               97
                                                                                                                        Capacity Plan –
                                                                                                                            Skill Areas
For each skill area tested, at least one training provider responded that they
focused much of their time on that skill area
                                              Frequency of scores achieved by training providers
      % of
                 Client Funding Business               Staff               Risk        SMME      Loan             Service Complaint     Client    Legal &
    Trainers’                             Finance              Marketing                                Cash mgt
                service strategy strategy              mgt                 mgt       financing book mgt          providers procedures   admin    regulatory
     Focus*

   75-100%         5         6        6         4       3            5      3           3        4         3        2          2          1          1
    50-75%        11         6        5         7       7            4      6           5        4         4        4          4          3          1
    25-50%         5         8        10       14       14        10        9           9        9        12        9          7          9         12
     0-25%        10         8        8         5       6            9     10           7        10        8        7         14         14         14
      No
                   6         9        8         7       7            9      9          13        10       10        15        10         10          9
   response
   % scores
                 43%       32%      30%       30%     27%        24%       24%        22%       22%      19%       16%       16%        11%         5%
    >= 50%

  Some skill areas have a number of training providers who currently focus on                             < 20% of training providers focus on these
   them                                                                                                                    skill areas
  However, some skill areas have very few training providers who currently
   focus on them


       The content of the existing training material must be assessed for relevance to the
                                      micro finance industry
*Focus refers to the amount of time spent developing materials and
delivering training in each skill area                                          98
                                                                                                                           Capacity Plan –
                                                                                                                         Delivery Channels
  Traditional, paper-based training delivery is most frequently in use, and
  electronic channels will need to be developed by many training providers
                            Summary of weighted average scores by channels used                                        1. The score was calculated as a weighted
        4
            3.76                                                                                                          average of the responses
                   3.41                                                                                                     1 = not currently in use
                          3.22
                                                                                                                            2 = not currently in use but have capacity
        3                                                                                                                   3 = currently in use sometimes
                                 2.76
                                        2.65                                              Capacity gap
                                               2.49                                                                         4 = currently in frequent use
                                                      2.32   2.27   2.22   2.14                                        2. All areas in the dotted oval represent a
                                                                                  2.08
        2                                                                                 1.81                            deficit in terms of the capacity of
Score




                                                                                                 1.73
                                                                                                         1.62             training providers to utilise them as
                                                                                                                1.27      delivery channels
        1                                                                                                              3. The channels where a gap currently
                                                                                                                          exists represent hi-tech, electronic
                                                                                                                          channels. This may pose a problem
                                                                                                                          where these channels have been
        0
                                                                                                                          identified as the primary means of
                                                                                                                          delivering training in a particular module
                                                                                                                       4. There are no channels where training
                                                                                                                          providers have no capacity to develop
                                                                                                                          them should their be a need



              Training of the different modules will not be hampered as training providers
             indicated that they have the capacity to develop all the channels identified for
                                            training delivery
                                                                                     99
                                                                                                 Capacity Plan –
                                                                                                    Geography
The training providers surveyed have the capacity to train micro financiers in all
the provinces
                            Summary of provinces that trainers are able to provide training in
                                                                                       North
                    All    Western                                         Eastern               Northern    Northern
    Province                           Gauteng   Kwazulu Mpumalanga                   Western                         Free State
                 provinces  Cape                                            Cape                  Cape       Province
                                                                                      Province
    # Training
                    22         28          27      27                26       25           24        24          24            22
    Providers

   % of Sample     59%        76%         73%      73%           70%         68%           65%       62%         62%          59%


  1. The Free State, Northern Province and
     Northern Cape are the most isolated           % of trainers able to train micro financiers by province
                                                                                                                             62%
     provinces, but more than half the                                                                                 65%
                                                                                                                                    70%
     training providers said they are able to
     deliver training there                                                                                                  73%
                                                         High representation of trainers                   62%
  2. Most trainers said they are able to                                                                          59%
     delivery training in the Western Cape,
                                                         Medium to high representation of trainers                                 73%
     Gauteng and Kwazulu/Natal                                                                       76%
                                                                                                                   68%
  3. 59% of the trainers said they can
     provide training in all 9 provinces                 Medium representation of trainers




     There is no gap in terms of where the trainers are able to deliver training

                                                               100
                                                                                              Next Steps
The following next steps must be completed for the prototype stage, pilot
phase and phase 1 of the project

            Prototype                                  Pilot                               Phase 1

1. Advertise project in national         1. Deliver training to pilot group   1. Deliver training to micro
   publications                          2. Test whether training content        financiers
2. Invite trainers to submit proposals      functions properly through the
   and attend a briefing session            identified channels
3. Modify and apply the BANKSETA         3. Understand what works well and
   procurement process to select the        what needs improvement
   final trainers                        4. Finalise training content and
4. Decide upon number and                   delivery
   structure of training providers
   based on options provided
5. Trainers to sign a contract with
   the BANKSETA
6. Develop and test (with micro
   financiers) the content and
   delivery channels for training
7. Training providers to undergo
   ‘capacity building’ where
   necessary


                                                         101
                                                                         Agenda

                 Agenda Item                      Resp.             Time

1. Project Approach                          Wendy Pienaar       5 min
2. Lender and Consumer Survey Summary        Wendy Pienaar       5 min
3. Business Development Support Assignment   Alicia Greenwood   15 min
4. Curriculum Framework Assignment           Brent Davids       15 min
5. Selection Assignment                      Wendy Pienaar       5 min

6. The Way Forward                           Wendy Pienaar       5 min

7. Breakout Instructions                     Heather Watson      5 min




                                     102
                                      Implementation Best Practice Approach
Best practice implementation includes the design, building, testing and
deployment of a new business solution in a series of incremental releases
                                                                                                             Illustrative
    DESIGN              DEVELOPMENT                                             IMPLEMENTATION
                          PROTOTYPE                               PILOT                        ROLL OUT

               Detailed design


                     Mobilisation


                                 Experiments               Experiments               Experiments


                                     Implementation            Implementation            Implementation
                                            Early,                   Focused                   Focused
                                           Focused                 Investigation             Investigation
                                         Investigation


                                                                                   Implementation

                                               Project Management
                                                 Communication


   Parallel execution of design, capability diagnosis and development results in a
             solution that is more likely to be innovative and differentiated
                                                         103
                                                                                                Recommended Implementation Approach
                                                                  DETAILED DESIGN                                  PROTOTYPE                    PILOT                    ROLL OUT
                Agree withfindings and recommendations




                                                             Select trainers

                                                         Select micro financiers                                             Select micro     Select micro
Curriculum




                                                                                                                             financiers for   financiers for
                                                             for prototype                                                      prototype         roll out
                                                                                   Detailed design of curriculum, including the development
                                                                                          of skills programmes within the curriculum

                                                                                                                        Prototype:                Pilot:
                                                                                                                                                Training        Roll Out Phase 1 Training Program
                                                                                                                     Training Program           Program

                                                           Key
                                                                                      Detailed design of BDS resource centre
BDS Solution




                                                         decisions

                                                                                                                        Prototype:               Pilot:         Roll Out :
                                                                                                                                               Resource         Resource
                                                                                                                      Resource centre           centre           centre
                                                                                       High level design:                Protype:                 Pilot :                     Roll out:
                                                                                             1st tier
                                                                                       Service Providers                1st tier SPs           1st tier SPs                  1st tier SPs

               Consultative Forum Sessions

                                                               Month 1                       Month 2                      Month 3                     Month 4                     Month 5


                                                                                                             Project Management
                                                                                                                Communication


                                                                                                                          104
                                                                                               Issues and risks
Some of the issues and risks which the implementation programme will face
includes:
              Issues and Risks                                            Mitigating Actions
    Failure to make key decisions               Strong, high level sponsorship of the project is required
                                                Where possible, critical decisions must be made prior to initiation of
                                                 project
    Dependencies on other projects e.g.         Upfront identification of all dependencies is essential
        Unit Standards Programme               Clear understanding of the nature of dependency is required
        Marketing and PR Programme             Dependencies to be incorporated into the project plan and timeframes
    Lack of momentum for the duration of the    Strong, high level sponsorship of the project is required
    project                                     Minimal deviations from project plans and timeframes should be allowed
                                                Regular communication sessions should be held with all stakeholders
    Stakeholder disenchantment with             Regular communication sessions should be held with all stakeholders,
    programme                                    detailing
                                                    Project approach
                                                    Progress
                                                    Estimated completion
                                                    Issues, risks, constraints
                                                    Key decisions to be made etc.




                                                             105
                                                                                                       Next Steps
The curriculum and BDS projects are currently at different stages in their
development, thereby requiring different immediate actions
   Curriculum
      Findings and recommendations must be agreed to before proceeding further
      The Consultative Forum and a group of micro financiers need to be involved in reviewing the recommendations further
      Trainers and micro finance test groups to be assessed and selected
      Legal contracts and agreements to be drawn up
      Communication program to be conducted to all involved stakeholders
      Training content and delivery methods to be developed and then tested through prototype and pilot

   BDS Centre
      The Consultative Forum and a group of micro financiers need to be involved in reviewing the BDS recommendations
        further
      Business case for BDS solution to be developed
      Critical “pre-project decisions” to be made
           • Who will sponsor of the project?
           • Who will finance the project?
           • Who will be accountable for the project?
           • Who will be the involved parties in the BDS solution?
           • Who will manage the various components of the BDS solution?
           • Will current infrastructure be utilised, or will new infrastructure be developed?
      Project to be launched

     The BDS decisions should be made as soon as possible, so that an integrated
              approach to delivering the two initiatives can be achieved
                                                             106
                                                                         Agenda

                 Agenda Item                      Resp.             Time

1. Project Approach                          Wendy Pienaar       5 min
2. Lender and Consumer Survey Summary        Wendy Pienaar       5 min
3. Business Development Support Assignment   Alicia Greenwood   15 min
4. Curriculum Framework Assignment           Brent Davids       15 min
5. Selection Assignment                      Wendy Pienaar       5 min

6. The Way Forward                           Wendy Pienaar       5 min

7. Breakout Instructions                     Heather Watson      5 min




                                     107
                                                    Breakout Instructions


 Break-away 1
Group 1 - Curriculum framework – skills transfer, delivery and learners
   (H.Watson/ Accenture)
Group 2 - Business Development Support (Accenture)
Group 3 - Selection (Accenture)
 Break-away 2
Overall project approach and objectives, including scope and beneficiaries
   (S.Babb/ SDS Consortium)




                                      108
                                                    Breakout Instructions

 Break-away 1
   1. Review details of Accenture presentation pack
   2. Provide input and recommendations for assignments as per
     instructions
   3. Ask questions
 Break-away 2
   1. Review the overall Micro Finance Skills Project approach and
     objectives
   2. Provide input to scope and beneficiaries of the project
   3. Ask questions


                        Be an active participant!
                                     109
                                           BDS Breakout Objectives


 Agreement on BDS definition
 Agreement on BDS success criteria
 Review on recommended BDS model
 Discussion on roles and responsibilities of BDS roleplayers
 Review of next steps for BDS solution




                                   110
                                                                      BDS Facilitator Guide
    Setup
      We have organised proxima’s for each room – please take your laptop
      Please make sure the you have the copy of the breakout session presentation loaded up and
        have written the objectives down on a flipchart
      Prepare 3-4 questions per objective, and id relevant slides per objective for you to review

    Session
      Introduce yourself
      Review the overall objectives I.e. information sharing!!!!
      Review the list of objectives for your particular session
      Begin at the first one and summarise our findings using the slides
      Prompt the audience by asking your questions
      Write down their input and move onto the next objective




    Hide slide
                                                    111
                     Curriculum Framework Breakout Objectives


 Review and agree curriculum skill areas
 Agreement on the prioritisation of skill areas
 Review delivery channels and methods
 Provide input to the proposed strategy for the delivery of training
   materials
 Provide input to the next steps for the Curriculum Framework




                                     112
                                      Selection Breakout Objectives


 Provide input to the proposed selection criteria
     Training providers
     Micro financiers
     Individual learners
 Review training provider capacity profiles
 Provide input to the approach for the prototype, pilot and phase 1
   sections




                                    113
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