2005 2nd Issue

2nd Quarter 2005

Kabalikat para sa Maunlad na Buhay, Inc. “Partner for a Progressive Life”

Head Office: KMBI Bldg., 12 San Francisco St., Valenzuela City |  (02) 291.1484 to 86 | Fax: (02) 292.2441 | www.kmbi.org.ph

Vol. 2 No. 2

IYB kicks off

C

onceptualized to equip program members (PM) with knowledge, skills and potential in improving their businesses, KMBI’s Business Development Services (BDS) kicked-off the IYB or “Improve Your Business” training program.

IYB combines theoretical and experiential learning, with a lecture on business management and demonstration on diverse skills. The IYB was conducted by BDS officers Hazel Christine Rosacia and Marifel Suplemento across Luzon and Mindanao branches, respectively.

In Luzon, the first IYB was held on June 4, 2005 at the Central Cavite branch.

The training was attended by some 83 PMs, almost triple of 30 pre-registered participants. Rosacia talked about some business management skills such as entrepreneurship, record-keeping, cash budgeting and making a profit and loss statement through the “BEST Games,” a reality-based contest where participants simulated real life business situations.

They discovered practical tips on how to save and invest money by playing the colorful characters of Teddy Tipid (miser), Tony Taipan (business tycoon), Thelma Takaw (shopaholic) and Totoy Talino (wise investor).

In the afternoon, Rosacia gave a demonstration on meat processing.

Participants crowded in to watch as she showed how to make pork tocino, longanisa and beef tapa. Afterwards, they were divided intro groups and processed

their own meat products.

The one-day session was only the beginning of the IYB training series. “It is a joy to see that the program is gradually taking shape,” Rosacia expressed. “This thrilling start will surely lead us towards our goal of catering our program members to improving and developing their skills and enterprises.” IYB trainings were also held in Lower Cavite, Upper Cavite and Metro Manila South 1 branches, with the assistance of culinary experts as resource persons.

In Mindanao, Marifel Suplemento conducted the first IYB at the General Santos City - Koronadal branch. Similar to Luzon, it involved a lecture on business magement and playing BEST Games.

Resource persons from the Technical Education and Skills Development Authority (TESDA) were tapped for the training carried out in Butuan, Davao Province and Metro Davao branches.

In Butuan, participants learned the art of silk-screen printing through the expertise of Program Unit Supervisor James Anthony Russel. Meanwhile, those belonging to the Davao Province branch planned to re-echo their newfound knowledge and skills to co-members at each center.

IYB KICKS OFF! (Top) Participants try a hand at making longganisa during the “Improve Your Business” training at Central Cavite; (Bottom) PUS James Anthony Russel of Butuan branch demonstrates the art of silk-screen printing.

I N S I D E KMBI in Pan Asia Forum ...........2 Human resource movements ........2 PMs join the search for MOTY ...........2 Cal 2 & Bicol in action: Summer Saya 2005 ........4 A legacy of changed lives... ...........5 The Servant Leader ...........6 Kidapawan holds Servant Leadership Day ..........7 Coping with Stress ............7 Performance at a Glance ............8

2nd QUARTER 2005

MASIKAP NOMINEES

KMBI in Pan Asia Forum Operations Director Edgardo Mercedes attended the Pan Asia Forum for Microfinance in Crisis Situations at Colombo, Sri Lanka. The event took place at the Hatton National Bank, from June 13-15, 2005.

The forum was held in the wake of natural disasters, conflict situations and epidemics encountered by Asian countries. Sri Lanka was one of those affected by the December 2004 tsunami that caused dreadful loss of lives and damage to the environment.

The tsunami destroyed roads, infrastructure, agriculture and livestock, thus affecting business and economic activities.

Meanwhile, health is also a major concern, specifically the rising number of HIV/AIDS cases in India, China and Indonesia.

As a collective response, microfinance institutions (MFIs) gathered at the forum to develop policies and strategies for

operating amidst crisis and natural disasters. They discussed the dual role of microfinance: enterprise development and risk management.

Likewise, the forum encouraged MFIs to be well prepared in facing crisis situations, and develop products that are flexible, simple and affordable to their clients.

Seeing KMBI’s significant role in addressing the needs of the poor, Mercedes suggests for the organization to continue acting as an instrumental base for other service sector institutions.

He also recommends for KMBI to be more proactive in formulating policies and procedures that can be applied to crisis situations. This way, it can continue to rebuild lives, improve living conditions and restore hope and dignity of the poor.

Human resource movements KMBI welcomed several new staff in recent months. At the head office, Maria Cecilia Rita Paredes has been appointed as Administrative Unit Head. Newly-hired employees include: Roberto Real, Admin Assistant; Jasper Nazarro, Audit Assistant; and Mary Grace Campaner, HR Assistant.

Exciting changes have also transpired in the branches. Promoted to the position of Branch Manager are Grace Villareal, Metro Manila South 2 branch; Ma. Margarita Robles, Upper Cavite branch; and Jerson Solomon, Surigao branch. Meanwhile, the newly-promoted Program Unit Supervisors are Frederick Siapno, Legaspi branch;

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Melanie Cordero, Lucena branch; Randy Bautista, Metro Manila South 1 branch; Billy Rivera and Lailani Huerto, Metro Manila South 2 branch; Ken Villafuerte, Naga branch; Marion Esther Cruz, Upper Cavite branch; and Rosely Embac, General Santos branch. Meanwhile, taking on new branch assignments at the Lipa branch are Emerlyn Singson and Luradel Barimbao.

As of June 30, KMBI is composed of 490 employees, with 457 in the operations group and 33 in the support group. A warm welcome and congratulations to everyone!

Loreto Corpuz, Marbel, General Santos

”Lory” manages Jess Peanuts, manufacturing peanut products that come in sumptuous flavors. It is fast becoming a popular name, sold, and distributed in leading stores, malls, and shopping centers in Mindanao.

Maria Jeaneta Ledesma, Metro Davao

Jeaneta is engaged in the manufacturing, wholesaling and contracting of garments. She directs a roster of 30 employees, including cutters, sewers, and production staff.

Elsa Parilla, Upper Cavite Elsa is engaged in the production of “chicharon” (cracker). She currently manages 39 employees, including repacker-vendors and regular laborers.

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PMs join the search for MOTY KMBI recently joined the Citigroup Microentrepreneur of the Year (MOTY) Awards, an annual event that recognizes outstanding microentrepreneurs nationwide.

In 2002, a KMBI program member from General Santos brought home the award. This year, six nominees were selected to represent KMBI. For the Masikap Award, the nominees are Loreto Corpuz of Marbel, engaged in peanut production; Maria Jeaneta Ledesma of Metro Davao, garments manufacturing; and Elsa Parilla of Upper Cavite, chicharon (cracker) production.

For the Maunlad Award, two of the nominees come from General Santos: Teresita Laraño, engaged in rice cracker production; and Anita

Consuegra, fabrication of scrap materials.

From Central Cavite, ceramic products manufacturer Concepcion Valenzuela was also nominated.

The program is organized by Citigroup Philippines, in cooperation with the Microfinance Council of the Philippines and supported by Bangko Sentral ng Pilipinas.

Composed of two award categories (Masikap and Maunlad), the MOTY is open to microentrepreneurs who successfully started a business that is now a reliable source of income for the family and those whose businesses have grown and generated employment apart from household or family members.

The search is open to clients of microfinance institutions in the Philippines. For KMBI, it started its

search for MOTY nominees on May 17, as spearheaded by BDS Officer Hazel Christine Rosacia. A total of 25 nominees from Luzon and Mindanao branches joined the competition.

The nominees were screened by a Review Committee, composed of Operations Director Edgardo Mercedes, managers Liza Eco and Aldy Duque of HR and R&D departments, respectively.

On October, a total of eight awardees will be selected by a National Selection Committee.

Cash prizes await the winners and their respective loan officers. Incidentally, the MOTY is being conducted in association with the Global Microentrepreneurship Awards, where 34 countries are taking part to celebrate 2005 as the International Year of Microcredit.

MAUNLAD NOMINEES

Teresita Laraño, General Santos Teresita’s rice crackers are fast becoming a native delicacy in the region. Currently, her products are distributed all over Mindanao and in some areas of Visayas.

Anita Consuegra, General Santos Anita manages a business that not only yields profit, but is “environment friendly” as well. She fabricates scrap paper materials into folders, envelops and paper bags.

Concepcion Valenzuela, Central Cavite

Connie’s enterprise produces ceramic products distributed all over the Philippines, and exported to countries in Asia and Europe.

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2nd QUARTER 2005

CAL 2 & BICOL IN ACTION

Summer Saya 2005

By Ruel de Leon, Sherwin Arcipe, Myla Nang, Marlon Alfonso, Sucette Mabini, Chiqui de Lima

Area-wide sports and cheering events dubbed as “Summer Saya 2005” were held in Calabarzon 2 and Bicol areas, participated in by KMBI program members. From April to May, the affairs were held in local schools, parks and recreation centers near the respective branches of the two areas.

The “Summer Saya” festival aimed to foster a spirit of sportsmanship, fun and camaraderie among program members, according to Vencent Abraham, Area Manager of Calabarzon2 and Bicol.

It sought to bring out the “dynamic personality” of each one. True enough, the KMBI entrepreneurs set aside their hectic business schedules to participate in the much awaited summer happening.

Bicol Loud cheers filled the Pili Sports Complex on April 23, as program members from Naga Unit A competed in various games. These included basketball, volleyball, track and field, sack race, tugof-war and other exciting sports events.

Similarly, program members

from Unit B gathered for the sports fest at Sta. Cruz Elementary School on April 30.

Some branches organized games that are uniquely Filipino. Iriga branch staged games such as tumbang preso, patintero, chato and hampas-palayok for its program members at the San Francisco Elementary School.

Local government leaders also graced the occasion. Hon. Juanito Bañal, Mayor of Gumaca, attended the branch celebration at Gumaca West Elementary School on May 14. Being the guest speaker, he declared that “We, as people of Gumaca, must be responsible for the money entrusted by KMBI.” He expressed great appreciation for the organization’s programs and services.

Likewise, the festival provided a great opportunity to recognize staff and program members. On April 30, the Legazpi branch conducted an awarding ceremony after the contests at Imelda’s Park. They bestowed special awards to Best Program Members, Best Center Leaders, Best Centers, Best Center Houses and other categories.

Calabarzon 2 Alongside sports, each branch held a cheering competition. Program branch Calamba from members showcased their talent and creativity through singing and dancing. Having created colorful banners to represent each center, they featured these in a lively banner parade at Bucal Elementary School on May 21.

Like in Gumaca, local officials of San Pablo attended the celebration at Countryside Resort on May 28.

Special guests were: Emer Alcos, Sports Committee; and Hon. Arcadi Gapangada, Board Member, 3rd District of Laguna.

They delivered inspirational talks and sponsored the gold and silver medals for the sports fest.

“Summer Saya 2005” would not have been possible if not for the commitment and essential effort of the Calabarzon 2 and Bicol branches. In the words of one program assistant, “all are winners” -- as everyone gave their best to make the festival a and helped huge success.

SUMMER SAYA SNAPSHOTS. (L-R) Calamba branch program members lead a lively banner parade at Bucal Elementary School on May 21; Fun games and sports events fill Imelda’s Park during the Legazpi branch celebration on April 30.

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A Legacy of Changed Lives AGM & Cal 1 Retreat in Rizal This year’s KMBI Annual General Meeting (AGM) was held back-to-back with the Calabarzon 1 Staff Retreat at Club Manila East in Taytay, Rizal from April 28-30, 2005.

The first day witnessed a Strategic Direction Setting session involving the Board of Trustees (BOT) and Management Team. Together, they planned and set strategic goals for KMBI as it continues to pursue its vision and mission.

The second day marked the start of the Calabarzon 1 Staff Retreat, beginning with a lively praise and worship session from the music team, with Nemwell Arzaga as the song leader.

Afterwards, a short reflection on the theme, “Built to Last: A Legacy of Changed Lives,” was presented by Aldy Duque, who discussed the important role of each person at KMBI. The affair included specialized training sessions. Members of the BOT attended the Training on Board Governance carried out by resource speaker Dr. Pieter F. Theron. Branch managers and key officers took part in Human Resource Management training led by Prof. Geodicio T. Sison of the University of the Philippines. Meanwhile, branch and other head office staff joined in the Discovering Your Gifts session done by Jenna Eduarte of Opportunity Microfinance Bannk (OMB).

“Talents Night” was held in the evening, with each branch performing entertaining numbers. There were energetic modern and ethnic dances,

tearful dramas and inspiring m u s i c numbers.

Each group donned colorful costumes, headpieces and used props for their performances. Branch managers from Calabarzon 2, Southern Mindanao and Caraga also showcased their talents.

A Commitment Service program was held on the third day, with Noel Alcaide as the main speaker. This was followed by the AGM, where Executive Director, Rosemarie Castro, presented a summary of the organization’s performance in 2004.

Members of the BOT decided to retain its roster and positions for another year, namely: Dr. Amelia Gonzales as chairwoman; Mr. Emmanuel de Guzman, vice-chairman; Atty. Servillano Mendoza, corporate secretary; Mr. Aurelio Llenado, Jr., corporate treasurer; and, Mrs. Damiana Exiomo, Mr. Eduardo Jimenez and Dr.

(Clockwise) Dr. Amelia Gonzales, BOT members and spouses sing along during the praise & worship session; Southern Mindanao branch managers present an ethnic number on Talents Night; Branch staff take a quiz to dicover their special gifts; Dr. Pieter F. Theron speaks about Board Governance with the BOT.

Ricardo Jumawan as board members.

Special awards were given to four employees during the closing program, in recognition of their five years of dedicated service to KMBI. They were: Rhanny P. Barrera, Area Manager of Caraga; Vencent A. Abraham, Area Manager of Calabarzon 2 & Bicol; Ma. Margarita J. Robles, Branch Manager of Upper Cavite; and Beniefe J. Tungala, Accounting Associate of Kidapawan branch.

Top performers for 2004 were also awarded: Jeanmar Labanero of General Santos Branch for Best Program Assistant; Enrique Maca of Butuan for Best Branch Manager; and Harry Dalanon, Junior Accountant at the Head Office for Best Branch Support Staff.

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2nd QUARTER 2005

r e d a e L ant

v r e S e h T

“She opens her arms to the poor and extends her hands to the needy.” - Proverbs 31:20

Twenty years ago, a woman went to the market as part of her daily chores. She noticed that there were some vendors who did not have a stall of their own.

These vendors simply laid down their goods wherever they could, calling out to people as they passed by.

Touched by their diligence, she asked them about their business, and discovered that they borrowed from loan sharks and earned only 30 to 40 pesos per day, hardly enough to provide for their families.

The woman set out to help them.

Stirred by a passion to lend a hand to those in need, she started a church-based microcredit service program.

From these humble beginnings, the Kabalikat para sa Maunlad na Buhay, Inc. (KMBI) was born. The rest is history.

Today, this woman continues to serve the poor. She is none other than Dr. Amelia Gonzales, the concurrent Chairwoman of KMBI Board of Trustees.

Dr. Gonzales is the third child of Aurelio Llenado, Sr. and Abigail Castro.

Born and raised in Valenzuela, she grew up with seven other siblings, including Aurelio Llenado, Jr., treasurer of KMBI Board of Trustees, as the eldest.

In 1962, she graduated with a degree in Medicine at the Manila Central University, and had her residency training in Obstetrics & Gynecology at Mary

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Johnston Hospital.

It was during her college years that she met her husband, Dr. Angelito Gonzales.

They were married and blessed with four children. Sadly, he passed away in 1983, after many years of wonderful marriage. Today, Dr. Gonzales loves to spend quality time with her six grandchildren.

Prior to establishing KMBI, Dr. Gonzales spent many years of fruitful service in the field of medicine. To this day, she operates a clinic beside their house in Valenzuela City. She was also actively involved in various socio-civic and nonprofit organizations.

Dr. Gonzales gained international recognition in 1977 when she became a member of the Advisory Committee for the Medical and Public Affairs Department of George Washington University Medical Center in the US. Meanwhile, she has been with the Board of KMBI for more than 19 years, providing essential guidance and support to the organization. In 1994, she represented the national network, Alliance of Philippine Partners in Enterprise and Development (APPEND) to the Opportunity International Network Board.

Through this, she was able to promote the Philippine network internationally and shared its best practices to other developing countries.

According to her, the most influential person in her life was her mother, whom she describes as a faithful woman of God. “I grew up seeing my mother’s great love for church workers,” she said.

Inspired to be a dedicated servant of God, she became the Chairman of the Board of the Valenzuela United Methodist Church. Aside from this, she also served as president of the West Metro Manila District United Women’s Society of Christian Service, composed of 25 local churches.

Despite all her success, Dr. Gonzales considers her family as her greatest achievement. “I am grateful because we are united in faith,” she said.

She implores her children to continue serving God and to raise their own families with wisdom and character.

It is said that a genuine leader has the heart of a servant. This can be said of Dr. Gonzales, who embodies integrity, honesty, commitment to excellence, productivity and genuine service.

Dr. Gonzales shares profound wisdom in one word: joy. “J-O-Y stands for Jesus, Others and You,” she explained.

“Jesus must be our first priority. Then, we must learn to love others aside from ourselves.” Spoken like a true servant!

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Kidapawan holds Servant Leadership Day

By Marco Jason Susvilla

In adherence to the initiative of Opportunity International, KMBI Kidapawan branch celebrated Servant Leadership Day on May 26, 2005.

Held at the office conference room, the staff invited Pastor Ervin Gatchalian from Assembly of God Church to be guest speaker for the event. He shared about servanthood and encouraged them to “continue serving with a cheerful heart.”

The group sang, “I’m free to be the servant of the Lord!” among others.

Branch manager Rhodora Ranque staged a lovely rendition of the song, “Make Me a Servant.” Pastor Gatchalian then led the washing of the feet, where the staff gently washed each other’s feet as an expression of love and humility.

Finally, the occasion recognized the branch’s top performers. Top five program assistants are Marlon Timbal, Kristine Charol Nim, Meliza Pon, Flora Abidong and Mary Ann Rebite. Special awards were given to Kristine Charol Nim, most punctual; Bienefe Tungala, best support staff; and Chrysolite Añover, first PA to establish ten centers.

Pastor Ervin Gatchalian washes the feet of Kidapawan branch manager Rhodora Ranque on May 26, Servant Leadership Day.

Coping with

STRESS STRESS evokes physical, mental and emotional responses. Often, these are accompanied by feelings of helplessness or despair. If stress persists, the body can lead to a break down. If left unchecked, stress can lead to… distress!

STRESS is caused by many The key to coping with stress is through identifying stressors things: the death of a loved one, in your life. It is also helpful for crowds, heavy traffic, arguments, you to know the warning signs of marriage problems, deadlines, stress. The body sends out physical, money problems or illnesses. emotional and behavioral warning Everyone experiences stress. signs. Once you identify these, you can learn how your body responds, and take steps to reduce stress.

The most common emotional warning signs are: anxiety, sleep disruption, anger, inability to concentrate, unproductive worry, sadness and frequent mood swings. Physical warning signs include: stooped posture, sweaty palms, weight gain or loss, and chronic fatigue. Meanwhile, behavioral warning signs are over-reaction, acting on impulse, use of alcohol or drugs, withdrawing from relationships, changing jobs often or feeling agitated most of the time.

How can you reduce stress? By keeping a positive attitude. You can also bear in mind the following helpful tips: • Accept that there are events that you cannot control.

• Be assertive instead of aggressive. Assert your feelings, opinions or beliefs instead of becoming angry, combative or passive.

• Learn to relax.

• Exercise regularly. Your body can fight stress better when it is fit.

• Eat well-balanced meals.

• Rest and sleep. Your body needs time to recover from stressful events.

• Don’t rely on alcohol or drugs to reduce stress.

Above all, don’t forget to nourish your spirit. Commune with God in your quiet time. Read the Bible. Sing to Him songs of thanksgiving and devotion.

Develop the good habit of praying several times a day. You’ll be amazed by the wonders these can do for your mind, body and spirit.

You may have a big problem that causes stress, but remember that you have a bigger God. Bear in mind what the apostle Paul wrote to the Philippians: “Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.” (Philippians 4:6-7, NIV).

REFERENCES: NIV Study Bible, www.clevelandclinic.org

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PERFORMANCE AT A 2nd GLANCE Quarter 2005

VISION “To see people in

Central Cavite tops in branch performance

communities live in abundance with strengthened

Central Cavite branch ranked first in the branch performance evaluation with a total score of 23. In second place is Kidapawan branch, followed by Metro Davao and Naga branches. Though they all scored 21.5, Kidapawan outweighed them all in terms of client outreach, average number of active clients per PA and least amount of client turn-over. Following closely is Butuan branch in fifth place, with a score of 20.5.

Scores were based on a set standard of quantitative and qualitative indicators, covering branches that are already viable. Notably, Kidapawan, Digos and San Francisco branches became viable within only eight months of operation. Kidapawan also had zero PAR since it started operating on September 2004.

TOTAL SCORE

1

23

BRANCH

AREA

COR (active)

AVE. NO. of ACP

Central Cavite

Cal 1

5,042

336.13

LP

(Php - Million)

18.08

tionship with their fellowmen and the rest of creations.”

MISSION “To be a sustainable Christian development organization contributing significantly to a poverty-free and Christ centered Philippines.”

BRANCH PERFORMANCE RANKING RANK

faith in God and in right rela-

CORE VALUES

PAR (%)

AVE. CTO (%)

FSS (%)

OFC. MGT.

FPA

TRANS

0.00

5.66

170.13

2.5

2.5

3

Respect Integrity Stewardship Commitment to the Poor

2

21.5

Kidapawan

S. Mindanao

4,723

337.36

11.67

0.00

4.40

154.09

2.5

2.5

2.5

Discipline

3

21.5

Metro Davao

S Mindanao

4,653

332.36

14.48

0.00

5.83

183.22

3

2.5

2

Innovation

4

21.5

Naga

Bicol

4,246

303.29

11.64

0.00

6.69

150.72

2

2.5

3

5

20.5

Butuan

Caraga

4,284

306.00

16.46

0.00

9.54

175.60

2.5

2

3

OBJECTIVE

Abbreviations: COR - Client Outreach; ACP - Active Clients per PA; LP - Loan Portfolio; CTO - Client Turn-over; FSS - Financial Self Sufficiency; FPA - File and Policy Administration; TRANS - Transformation

ORGANIZATIONAL PERFORMANCE TOTAL CLIENT OUTREACH:

94,587

FINANCIAL SELF-SUFFICIENCY:

161.92%

AVE. NO. OF CLIENTS PER PA:

280.67

OPERAT’L SELF-SUFFICIENCY:

157.71%

AVE. CLIENT TURNOVER:

7.12%

TOTAL NO. OF STAFF:

PORTFOLIO AT RISK:

490

PhP 269.41 M

MF OPERATIONS:

457

1.78%

SUPPORT GROUP:

33

 Call for writers

“To reach 150,000 Filipino families in 2006.”

Communi-K

(As of June 30, 2005)

LOAN PORFOLIO:

Excellence

Do you love to write? If you are an aspiring writer with a passion for conveying news, feature stories and literary compositions, Communi-K needs you! Join us in spreading the inspiring work of KMBI through news updates, success stories, essays, poems and other articles. You may send through fax at (02) 292 – 2441 or email to kmbi@pldtdsl.net.

Editorial Adviser: Rosemarie C. Castro Exec. Director Editorial Consultants: Edgar S. Mercedes Liza D. Eco Annalie D. Concepcion Hazel Christine Z. Rosacia Editor: Aldy R. Duque Associate Editor: Louise Anne P. Porciuncula Contributors: Sherwin Arcipe, Ruel de Leon, Myla Nang, Marlon Alfonso, Sucette Mabini, Chiqui de Lima, Marco Jason Susvilla