BANKSETA MICRO-FINANCE SKILLS PROJECT BS/T/LPRD 40-48/QT/CON006 Learning Programme Resourcing and Development (micro-le

1. BANKSETA MICRO-FINANCE SKILLS PROJECT BS/T/LPRD 40-48/QT/CON006 Learning Programme Resourcing and Development (micro-lenders) BANKSETA: MFSP: Presentation Final Version: 17 December 2002: BS/T/LPRD 40-48/QT/CON006: Orolatele International Consulting (Pty) Ltd

2. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

3. Introduction Target Market This project development phase is aimed at Short Term Lenders Delivery Phase 1 where 200 micro lenders and their Staff will participate Project Process The learning programme resourcing and development project focuses on the verification of the curriculum, development of learning pathways, sourcing and analysing existing learning interventions to establish gaps and then develop a business case

4. Introduction (cont)

5. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

6. Curriculum Verification • Client Service • Risk Management this sub activity requires identification • Loan Book Management of the top five priorities but we • Marketing recommend, it is imperative to include • Cash Management Staff Management therefore • Staff Management top six priorities • Communication • Personal Development • Finance • Client Administration • Business Strategy • Management Development • SMME • Leadership Development • Legal & Regulatory Compliance Supported by report annexure A & B Comment MLA registered MLB’s felt they needed less Staff Management Skills Non MLA registered MLB’s felt they needed Staff Management Skills See Comments Annexure D

7. Recommendations Staff management was identified as priority 6 We believe that staff management skills are required to ensure the success of the implementation of this Micro-Finance Skills project (this was confirmed at the Consultative Forum and by Glen Baker of Miloc)

8. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

9. Learning pathways / development ladder • The learning pathway outlines the skills required at various levels within Micro finance businesses. An employee should have the foundation skills level at time of employment or alternatively if they are school leavers they will start at this level. Employees should complete modules related to Back and Front office before they advance to the Management level. • Foundation Skills or entry level skills are the basic skills required to perform the job • Back and Front Office these are skills required to perform competently within • the Micro finance office to service clients effectively and meet all the necessary legal • requirements of the industry • Management these skills are required to manage a Micro finance office • It is important to note that if a specific office may not require certain skills because of the nature of their operation (e.g. no cash in office only electronic transfers), then the specific module will not apply. • Slides 8 to 19 highlight the flow of the modules which should be included in the development material. This is important when Prior Learning is to be evaluated. • It will also assist with the identification of learning interventions from service providers related to Project 009.

10. Learning Pathways / Development Ladder Supported by Annexure C Managers are required to complete courses below or have prior learning in the area before completing learning path at this level NQF Level 5 Market Products & New Business Management Manage Risk & Fraud Manage Loan Book Set & Adhere to Policies Procedures Manage Client Service Manage Cash This level can be done by by both Front office and Back office as these tasks can be done by one person NQF Level 4 Front Office Basic Marketing / Selling Skills Identify needs & Provide solutions Handle Conflict Manage Cash Balance Cash This level can be done by by both Front office and Back office as these tasks can be done by one person NQF Level 3 – 4 Check application for Compliance & Accuracy Back Office Data Capture & Repayments For Loan Book Apply Product Knowledge Serve Internal Clients Capture Data Foundation Skills Entry level must complete before able to move to next level NQF level 2 – 3 Knowledge Risk/Fraud policy & procedure Basic communication Basic Product Knowledge Basic Client Service Skills Apply policies & procedures to application Understand client needs (Marketing)

11. Client Service - ManagementPre-requisite Front & Back Office Skills Understanding Usury Act / MRFC rules and guidelines Managing / handling difficult clients / conflict Mentoring / coaching staff to handle client requests Supporting team members to ensure client excellence Understanding various roles within service delivery chain Develop / setting service level agreements with internal service providers team Setting client service standards with your team Set the service cycle Create an environment for continuous improvement within client service area Making decisions Negotiating with clients Working as a team Building relationships Introduce new products to clients

12. Client Service - Front & Back Office(This can be one role) • Product knowledge • loan information • rescheduling of loans • Understanding Usury • Act and MFRC rules • and guidelines How to link business principles to customer service (profit) Client service standards Understand client requirements and link product to satisfy client need Understand my role in the service delivery chain Basic communication interpersonal skills Telephone etiquette Understand my role for service to an internal customer Basic problem solving skills Basic analysing skills How to refer angry / difficult customers Educating your client

13. Risk Management - Managers Understand and implement security risk Understand and implement business risk Understand Macro and Microeconomic risk Develop / set /implement fraud management policies & procedures in line with MFRC • Identify business risks • Interest impact • Risk clients • Bad debts Set credit limit standards Coach staff in policies / procedures for fraud / risk management Implement fraud / risk management policies & procedures • Do risk analysis on client • base to determine • possible risk areas • Risk analysis • Problem • Situation analysis Make final decision of client’s credit worthiness

14. Risk Management - Front & Back Office Knowledge of fraud & risk management policies & procedures Complete application fully to eliminate risk areas Apply policies & procedures to application Understand implications of interest rate change & be able to explain to customer Apply policy & standards of credit limits for client Implement fraud / risk management policies & procedures Make recommendation to manager

15. Loan Book Management - Managers Loan Book Reconciliation Managing loan book, tracking arrears and analysing various risk aspects (e.g. risk of non-recovery by age, willing or unable non-payers etc) Bad Debt Recovery Process Interest Calculation Loan Book Strategy and Management linked to Risk Management and Cash Flows Debt Collector Appointment and Management

16. Loan book Management – Front & Back Office / Debt Collectors Loan Book Data Recording Collection of installments Issuing of receipts

17. Marketing Skills – Management Development of New Products / Services Competitor Analysis Development of Marketing Plan Shape Selling for Success Development of Marketing Materials New Product / Service Needs Identification

18. Marketing – Front Office Basic Marketing / Selling skills

19. Cash Management - Manager Set policies & procedures for daily management of cash Set policies & procedures for cash amounts on premises - securing premises Control cash floats on premises Coach / mentor cashiers on recording of transactions (issuing of receipts) Assist front office staff (cashiers) when they are out of balance Control / verify cashing up / balancing of front office staff

20. Cash Management - Front & Back Office Knowledge & skills of handling cash (deposit & withdrawals) Balancing / cashing up of cash Daily (Teller Workshop) Apply the policies & procedures to manage cash floats Advise management of excess cash on premises

21. Manage the performance of staff Develop a recruitment & selection policy Develop a Performance Management process Staff Management - Managers Establish disciplinary / grievance procedures Implement policy / procedure as per LRA Train staff Source training service providers Identify training / development needs of staff Manage disciplinary process hearings, dismissals and CCMA Managing change process Identify change elements Coach/mentor/counseling staff to ensure max performance is reached & individuals potential is reached Develop / implement reward / recognition for employees Working as a team

22. Understand disciplinary & grievance procedures Understand Performance Management process - Manage own performance Understanding training Needs and Requirements Staff Management - Front & Back Office Staff Understand impact of change Being a team player / member

23. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

24. Existing Programmes Sourced Annexures E & F • Process followed to identify existing programmes: • Service providers were requested to forward relevant programmes / interventions for • the six top priorities as per the verified curriculum • A further document was designed and forwarded to service providers to assess how • quality assurance criteria was met • 82 service providers were contacted via email, fax or face to face, refer Annexure E • There are programmes for all six top priorities as per the curriculum form various • service providers • Some service providers were eager to forward all their details and training materials • others were reluctant. • All available learning interventions with service providers are listed in Annexure F • All documentation handed over to Kagiso

25. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

26. Existing Learning Interventions Analysed • Process followed to analyse existing learning interventions: • All information received from service providers was analysed • Evaluated programme material received • Analysed Quality Assurance Criteria documentation • Annexure F & G

27. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

28. Gaps Identified • Process followed to identify the gaps in programmes: • 83 service providers were requested to send information about all the available • programmes for all the competencies on the curriculum • Some service providers forwarded their training material to be evaluated • others opted not to do so, which made the identification of gaps difficult • A second set of information was requested from service providers • to identify which programmes met the quality assurance criteria for the • top six priorities • Using the available training materials and the QA Analysis document the • gaps were identified, refer to Annexure F • Slides 29 – 34 is a summary of the information found in Annexure G, • QA documentation is available for perusal

29. Gaps Identified Client Service • Delivery Channels • Theory self study guides • Face to face modular sessions • Workshops in classroom • Managers trained as trainers • Managers train modular sessions • Managers coach on the job • Computer based training / distance

30. Gaps Identified Risk Management • Delivery Channels • Theory self study guides • Face to face modular sessions • Workshops in classroom • Seminars via Associations (MFRC) • Managers trained as trainers • Managers train modular sessions • Managers coach on the job • Mentoring • Computer based Training / distance

31. Gaps Identified Loan Book Management • Delivery Channels • Theory self study guides • Face to face modular sessions • Workshops in classroom • Seminars via Associations (MFRC) • Managers trained as trainers • Managers train modular sessions • Managers coach on the job • Mentoring • Computer based Training / distance

32. Gaps Identified Marketing • Delivery Channels • Theory self study guides • Face to face modular sessions • Workshops in classroom • Seminars via Associations (MFRC) • Managers trained as trainers • Managers train modular sessions • Managers coach on the job • Mentoring

33. Gaps Identified Cash Management • Delivery Channels • Theory self study guides • Face to face modular sessions • Workshops in classroom • Managers trained as trainers • Managers train modular sessions • Managers coach on the job • Distance

34. Gaps Identified Staff Management • Delivery Channels • Theory self study guides • Face to face modular sessions • 2 day workshops in classroom • Managers trained as trainers • Managers train modular sessions • Managers coach on the job • Distance

35. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

36. Quality Assurance Criteria • Material written to meet NQF standards or at least outcomes based • NQF level • Modular format • Learner guide • Facilitator guide • Train the trainer/ Manager Able to train managers so they can train staff - on-the-job or 2-3 hours workshops • Delivery mechanisms e.g. video’s, self study guides, face to face training, electronic manuals, news letters via MFRC & MLA. Combination of learning channels or multiple delivery channels. Flexible and experiential • Management support e.g.Coach / Mentor • Costs of workshop

37. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

38. Business Case Definition of the Business Case : Provides support for any business decisions, analyses individual business situations and outlines options / recommendations Purpose of the Business Case : Identify key business drivers and success factors Justification for a business decision, which can be easily communicated Establish a method for measuring success Critical Success Factors : Determine need for project amongst Micro Lenders Communicate purpose, process and benefits Owners need to buy in to project Owners / Mangers attend briefing session to be equipped to assist, coach and mentor delegates Staff Management competencies to be trained first Managers to participate in intervention first Linking of learning outcomes to the Performance Management system Project supported by Associations

39. Business Case (1) Business Case Benefits / Selling Points Recommendations only

40. Business Case (2) Business Case Flow Chart Recommendation Only Business Owners invited to Communication session to Introduce process Workshop for Owners / Managers on PMP and Needs identification Consider RPL of individuals Select learners Learners to Attend/ complete Intervention Owners / Managers attend briefing session per Intervention Schedule learners for Interventions Feedback given during intervention and On-the-job by Manager Coaching for further development in the Workplace Feedback via Performance Management Process both informal and formal Evaluation and giving of Incentives Certificate of Competence Awarding of Credits Assessment Business Impact Questionnaire to evaluate impact of Intervention (see annexure H) Evaluation of impact questionnaire and report formulated Feedback to PSC and stakeholders

41. Investment estimated What will be done Return on Investment (benefits) Business Case (3) Timeof Owner/manager to attend briefing sessions and staff participating in learning intervention Effortplanning, scheduling and organising for participation in learning interventions Buy-inby Business Owners and visible support given to the project Communicationinitial and ongoing Token feefor learning intervention (between R100 and R50 per learner per day) Learning environment set-up(e.g. Technology, support, mentors, assessment) Assessors Recognition of prior learning / competence Identification of training needs and designing individual development plans Training and Development scheduled Learning Assessment Coaching / Mentoring Moderation Accreditation Certification Business Impact Questionnaire Business Benefits Competent staff Certified staff Assessment results Performance Management process implemented Improved profits Improved client service Better advice given to clients therefore improved lending opportunities Individual Benefits Prior learning recognised and credits awarded Formal qualification or credits towards a formal qualification

42. Business Impact Questionnaire • The questionnaire will: • Enable team to evaluate the impact of the Micro Finance Skills Project • The degree of success in achieving objectives • Level of transference of skills acquired on the job • Indicate the level of improvement during the last few months • How the Micro Lending Business have benefited from participating in the project • Reflect on specific business accomplishments • Determine return on investment See annexure H, which needs to be customised

43. Contents • Introduction • Verified Curriculum • Learning Pathways • Existing Programmes Sourced • Existing Learning Interventions • Analysed • Gap Identified • Quality Assurance Criteria • Business Case • Recommendations

44. Future Needs (relating to training) • Business Strategies Business Strategy Development Industry Analysis • Leadership Cover areas of general leadership skills, change management as well as leadership development for non-managers • Personal Development Time management, problem-solving and decision making creativity and innovation, emotional intelligence, stress management and career management Refer to comments Annexure D

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