Communi-k Brand and Leadership

KMBI

I chose you to lead my people - 2 Samuel 7:8

communi-k VOL 6 NO 1

Features Leader’s Edge

The Armor of God

Organizational News

19 new branches to rise on Q3

ENTREP 101

Making Sense on Cents

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Brand Leadership

I chose you to lead my people 1 -2 Samuel|7:8

what’sinside?

communi-K • vol. 6 no.1

A Perspective of

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Brand Leadership News

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• 29 women acquired basic cosmetology skills • Pangasinan trains on the “Million Leaders Mandate” • Daet plants trees • Legazpi promotes healthy hearts • 19 new branches to rise on Q3 • EISTOP starts to roll • KMBI works for certification to ISO 9001:2008 • Exiomo takes on Chairmanship • 1.5% gross income earmarked for health benefits • Staff healthcare entrusted to IntelliCare • P7.5M disbursed for microinsurance claims

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Features

• From Humble Beginnings The Alvin Cambronero Story

• The Armor of God • Understanding Teamwork

ENTREP 101

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• Making Sense on Cents • Saving Up: A great weapon on financial crisis

MF Index

• Have the Right to Know!

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5 Update

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Organizational Performance

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• Community-Based Enterprise Development (CBED) Project in Carpenter Hill

Message

I chose you to lead my people - 2 Samuel 7:8

The Executive Note

On the cover The filmstrip represents the different phases of KMBI’s journey in shaping its brand and leadership in the microfinance industry.

Significant to this achievement is its focus on building the leadership capacities of its staff.

editorial board Edgardo S. Mercedes Adviser Rizaldy R. Duque Editor-in-Chief Kris Joy G. Dalanon Editor Lea J. Gatpandan Associate Editor Maylanie D. Apawan Calvin V. Perez Victor G. Perez Contributors Hector C. Celajes Circulation For editorial, contributions, suggestion and inquiries, please contact: Kabalikat para sa Maunlad na Buhay, Inc. 12 San Francisco St., Karuhatan Valenzuela City 1441 Philippines Email: rmc@kmbi.org.ph

I believe we are in a better position to manage through the economic slump and seize the opportunities lying behind it and that is to be part of the solution and preach the gospel of Jesus Christ to hopeless families at this crucial point.

It is obvious that the globe is bothered by the ongoing recession which started in the American soil and felt in almost every continent due to the chain reactions brought either by direct economic relationship with the US or huge investments put in shares and stocks in Wall Street. It is important that we all understand how this affects us and what actions we need to take to weather it. I believe we are in a better position to manage through the economic slump and seize the opportunities lying behind it and that is to be part of the solution and preach the gospel of Jesus Christ to hopeless families at this crucial point.

In this issue, we will feature some of our initiatives that will strengthen our stance and enable us to be more relevant to the communities we are serving, such as the expansion, implementation of EISTOP, and certification to ISO 9001. The branch expansion is one of the best counter measures of the organization to enable our microentrepreneurs be more resilient, and help those who fell prey to the predicament happening today such as layoffs.

As we expand to help more and more people, we also have to do

something to further improve our system.

To update you, we are now on the first phase of the implementation of our computerized and web-based information system called EISTOP, and we are also working for KMBI’s certification to ISO 9001 to further enhance the service and quality of our work as an organization.

On the other side of these enhancement activities is the provision of some health benefits to our workforce. We have changed our HMO provider to give our staff a better service and also, through the generosity of our Board of Trustees, we are now implementing a sickness and hospitalization financial assistance.

With the ongoing crisis, I

implore you not to lose sight of our goal.

The steps that we are to take may be difficult, but these will be taken in the best interest, both short- and long-term, of the organization and the people we are serving.

For His glory!

Egay Mercedes

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News Briefs 29 women acquired basic cosmetology skills

communi-K • vol. 6 no.1

add-on services to our clients,” Sabio explained.

Meanwhile, Virgie Rico, a cosmetologist, facilitated the training and demonstrated hair styling, including cutting and coloring, and make-up application. Three program members volunteered to be models for the demonstration.

Pangasinan trains on the “Million Leaders Mandate”

Virgie Rico, cosmetologist, demonstrates techniques in hair coloring.

With the goal of enhancing the skills of its program members, Metro Manila South 2 branch (MMSB2) conducted a free training on cosmetology cum ENTREP 101 discussion. Twenty-nine representatives from different centers of MMSB2 participated in the half-day activity.

Branch manager Ellen Ruth Sabio discussed the overview of entrepreneurship before the training was given to the participants. The session meant to deepen the understanding of participants on “Entrepreneurship”, including its advantages and disadvantages and steps on setting up a formal business. “We aimed to introduce and enhance their understanding on entrepreneurship, and enhance their skills at the same time. This activity serves as a pilot test for the upcoming trainings which we are planning to conduct quarterly as

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In a unique partnership to build a cadre of leaders, KMBI Pangasinan area and Lighthouse Christian Community (LCC) headed by Pastor Jonathan Aranton, agreed to collaborate on providing Pangasinan area staff with a series of leadership training following the book of John Maxwell, “Million Leaders Mandate”.

“We aim to develop our front liners and soon to be great leaders to contribute not only to the organization but to the society as well,” said Rhany Barrera, OIC Northern Luzon operation. “Since leadership is one of the important attributes in all-round development, our area has devoted itself to nourishing staff’s leadership qualities and other competencies by organizing a series of leadership training,” added Barrera.

Million Leaders Mandate is a six-module leadership material.

Each module contains six leadership lessons based on leadership principles and concepts taught for many years

by John C. Maxwell, leadership expert.

Since January 2009, the branches of Urdaneta, San Carlos and Dagupan, have been implementing the training, which is held once a month and will end on June 2009.

LCC provides the training to

the three branches for free. However, for the initial training, branch staff opted to give “love gifts” coming from their personal earnings, as a gesture of gratitude for the valuable inputs provided. LCC also extended help by providing other lectures such as financial management, entrepreneurial skills and values strengthening for the staff to share with the program members.

Daet plants trees About 100 program members and staff of Daet branch participated in the tree planting activity on 21 March at the Water Shed Tulay na Lupa Labo, Camarines Norte.

The said activity was

successfully conducted by Daet branch in partnership with Camarines Norte Water District who provided location for tree planting; and Deo Santos from Department of Natural Resources - Forestry, who presented environmental awareness and protection.

“This activity was a great opportunity for the people to be aware on the current environmental situation and for them to protect and preserve mother earth,” said Roselyn Embac, Daet branch manager.

Legazpi promotes healthy hearts To promote awareness on physical health and to continually build good relationship among staff and program members, Legazpi branch officers engaged some 30 program members on aerobic exercises on Valentine’s Day at Homapon Central School in Homapon, Legazpi City.

Organizational News

I chose you to lead my people - 2 Samuel 7:8

19 new branches to rise on Q3 In an effort to fulfill the Goal 25.250, KMBI is set to open 19 more branches in Luzon and Visayas come third quarter. With the new branches, it is expected that the outreach would have 59% increase or a total of 213,500 program members by first quarter of 2010.

Five new areas of operations will be established also for monitoring and management of the new branches.

A budget of PhP206 million is earmarked for the expansion.

“The branch expansion gives the microfinance institution like KMBI the opportunity to be part of the solution of the economic crisis that we are facing. With the new branches, we can provide additional

AREAS OF OPERATION

capital to more women microentrepreneurs, generate job openings for other members of the communities, and share the Gospel of Jesus Christ to more families especially at this point,” said executive director Edgardo Mercedes.

Through the leadership of Carmela Porras, operations manager for NGO, the operations had completed the area and environmental studies required for the establishment of the new branches. Courtesy visits to local government units, both city or municipal and

AREA MANAGER

Cebu

Maulidan Tul

Negros

Roselyn Embac

Rizal

Ronald Ravelo

Bulacan

Roschelli Clemente

Branches Cebu North Branch Bacolod Branch Silay Branch Kabankalan Branch Antipolo Branch Taytay Branch Binangonan Malolos Baliuag Tuguegarao Branch Cauayan Santiago City Branch Laoag City Branch San Fernando, LU Tarlac City Branch

Luzon North East

Michel Mondejar

Luzon North West

Antonette Lapnite (OIC)

Central Luzon

Roschelli Clemente

Capas, Tarlac Branch

Jose Ian Aguilar Fay Lorraine Amodia

Olongapo City Branch Balayan General Santos 2

Calabarzon 3 Mindanao

The operations team, composed of the executive director, operations and selected area managers,and some officers, makes a thorough environmental scanning and study of the areas for expansion.

Branch Managers

OFFICER-INCHARGE

Girlie Tering - Tering Michael Mel Durango (selection for OIC onJames Anthony Russel going) Joel Cardeño Elvie Ruiz Enrique Maca Selection on-going Sharon Cruzado Selection on-going Vanessa Espinosa Rosunny Dela Luna Selection on-going Jevalyn Bebanco Selection on-going Lanie Cardeño

Selection on-going

Rhany Barrera

Reynald Alpajando Grace Bautista 19 NEW/24

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Organizational News

EISTOP starts to roll On February, KMBI started the implementation of its computerized information system project dubbed as EISTOP or Enhanced Information System towards Optimum Productivity. The project is spearheaded by Sancho Montaos II, Finance and Accounting manager.

On the same month, KMBI signed the services of Renato Lomadilla, an IT consultant with track record in IT projects in microfinance setting, to help in putting EISTOP in place.

To date, EISTOP is on its preparation phase and is expected to proceed immediately to the needs assessment phase on the second quarter. The preparation phase entails comprehensive analysis on the preparedness of the institution, setting of realistic goals for the project development, and highlighting of specific issues that need to be addressed by EISTOP.

“At this stage, we are still conducting an inventory of what we have in our management information system (MIS). Project design will come in later after the needs assessment phase,” said Montaos. “Also, we are identifying issues that might hamper success of the implementation process including institutional procedures and practices, internal controls, staffing, training, data conversion, and technical infrastructure. The consultant and project team, composed of representatives from major departments, will work on this requirement” added Montaos.

EISTOP is envisioned to be a web-based system that will enhance the monitoring of branch operations and improve database management. With the computerized MIS, information is expected to be

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communi-K • vol. 6 no.1

KMBI works for certification to ISO 9001 With a desire to continuously enhance its products and services through improved processes and systems, KMBI has started working for the certification to ISO 9001:2008. The scope of the certification will include the microfinance program operations and four of the support services departments, namely administration, audit, finance and accounting, and human resources & development. Per project schedule, the certification is targeted to be completed by November 2009 with TUV Rheinland as the certification body and the German Accreditation Board for accreditation.

KMBI appointed its committee will sit down to discuss Operations Manager for Bank, the new processes and systems that Vencent Abraham, to be its Quality need to be included and installed in Management Representative. He our operation,” Vence Abraham said. will be in-charge of the certification Aside from its current processes and process and implementation of quality systems, KMBI will install additional management system in coordination systems such as Customer Relations with all department managers, who Management, Document Control, are also members of the project’s Monitoring and Measurement steering committee.

Process, Control of Non-Conforming

Last February, some 27 Products, and Improvement System. managers from different head

ISO 9001 is one of office units and departments and the standards formed by the branches attended the Awareness and International Organization for Documentation trainings two of the Standardization, a worldwide three titles required in the process of federation of national standard certification to ISO 9001. The third bodies. It aims for the continual training, Internal Quality Audit, is performance improvement at a long set to be conducted on the second term basis through the observance quarter in partnership with QConsult. of the Eight Quality Management The training is the first phase in the Principles such as customer focus, certification process. leadership, involvement of people,

Currently, the steering process approach, system approach, committee is preparing for the second continual improvement, factual phase of the certification or the approach to decision making, Documentation phase. “Although and mutually beneficial supplier we already have our Manual of relationship. ISO 9001 focuses on Operations, we will still conduct customers while addressing the a review of it for refinement and needs of all the stakeholders. improvement. Also, the steering provided on a real-time basis and thus make stakeholders’ decision more informed and relevant. “Once we have gone through the other phases, such as software selection

and software implementation, the project is expected to be piloted by August and rolled out until July 2010,” said Floryfel Gonzales, Management Information System (MIS) officer.

Organizational News

I chose you to lead my people - 2 Samuel 7:8

Exiomo takes on Chairmanship Exiomo succeeds Dr. Amelia LlenadoGonzales who now seats as board member.

Emmanuel de Guzman remains as vice chairman and vice president along with corporate treasurer Aurelio Llenado. Former board member Atty.

Dr. Philip Flores prays for the new set of board of trustees during the Servillano Mendoza LEAD! Camp. replaced the position left Damiana Exiomo, former corporate

by Exiomo as corporate secretary. secretary, takes on the new position

“I would like to thank as Chair and President of the everyone and call for your full organization after the election for support as we carry out the the officers of the Board of Trustees organization’s mission towards on February 13 during the Annual poverty alleviation,” said Exiomo General Meeting at Grand Mercure during the board meeting.

Xidem Hotel, Beijing, China.

1.5% gross income earmarked for health benefits "With healthcare costs on the rise, KMBI find ways to help staff to reduce medical expenses by providing healthcare benefit to all KMBI staff regardless of rank and employment status," announced Sharon Dionco, officer-in-charge of the Human Resources and Development, during KMBI’s general assembly last January 18.

Beginning January, all KMBI staff can avail of the sickness and hospitalization financial assistance.

The Board of Trustees (BOT) approved the allocation of 1.5% of the organization’s gross annual income of the previous year. The allocation will serve as the fund for the new benefit.

The said fund is equally divided based on the number of BOT and staff of the previous year. On the

other hand, staff hired on current year may avail 50% of the allocated fund within the year which will be treated as advance availment of the said benefits. With this provision, all KMBI staff can avail of the benefit regardless of rank and employment status.

Based on the policy, fund must be used for cases of sickness that requires confinement and therefore can be used only to pay hospital bill and/or medicines, or to support medication after confinement. However, the benefit can be availed only if benefits from the organization’s HMO, SSS and and Philhealth have already been exhausted, or in some cases, if the cited agencies cannot cover the 1.5% GROSS/24

Staff healthcare entrusted to IntelliCare To continually provide better healthcare services to its staff, KMBI signed a contract with ASALUS Corporation, known as IntelliCare on March 21.

“We continually seek for better healthcare service for our staff, and with IntelliCare’s easy access and coverage for pre-existing conditions, confinement and treatments, we hope that this could be met,” said Sharon Dionco, officer-in-charge of Human Resources and Development.

“One good thing about Intellicare, in case of emergency and the hospital is not accredited with them, the expenses incurred can be reimbursed 100% provided all original receipts are intact,” added Dionco.

With the new provider, the staff can proceed directly to any of Intellicare’s terminals located in the accredited hospitals to process request of services. This feature lessens the hassle which KMBI staff experienced with the previous health maintenance provider. A guidebook is also provided to all staff for easy reference on procedures, benefits and list of accredited hospitals, clinics and doctors. IntelliCare has more than 300 accredited hospitals to serve clients all over the Philippines.

Providing benefits to its

workforce is one of the priorities of KMBI. The Board and management are fully aware of the demand of development work, especially in the field, and with this KMBI is committed to have the best possible healthcare services for its staff.

KMBI is also planning to extend the benefits to the family members of its staff in the near future.

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Feature

communi-K • vol. 6 no.1

M

any great stories are borne of grounded dreams shaped by sacrifices and humble beginnings.

Such is the story of Alvin Cambronero, Daet branch’s former utility worker turned exemplary program assistant.

From humble beginnings Exemplary Program Assistant | Daet Branch

Alvin Cambronero’s Story

By Lea Gatpandan

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Feature

I chose you to lead my people - 2 Samuel 7:8

It was in 2006 when Alvin first joined KMBI. His routine included washing dirty dishes, running errands, and cleaning floors and comfort rooms.

Alvin was obedient and hardworking, and he easily built good relationship with other staff. However, his commitment and obedience were tested by circumstance early on. His father ran for government office and this meant his extending full support. He thus eventually gave up his job. His choice became a double blow as his father lost the elections and he ended up jobless. “I saw him depressed but Alvin is still one who would do everything for his family,” attested Wenefredo Belista, program unit supervisor.

it would not be tough for him to handle centers, and we trust his capacity,” his supervisor affirmed.

Alvin recalls that the encouragement of his colleagues greatly helped him to learn, excel, and have the guts to apply as program assistant.

“My passion to help the community began when I was a young boy; I wanted to become a policeman,” Alvin spilling his ultimate dream. He took up a Bachelor’s Degree in Criminology to pursue his dream, but due to financial constraints and his eagerness to help his family, he decided to stop schooling and instead sought a job to support his family. “I believe that God brought me to KMBI. I easily learned

a former utility worker but I work hard for everything.”

Currently, Alvin is handling ten good centers and is recognized as best program assistant of Daet branch. He also faced usual problems like delinquent members, but he deals with these through constant communication with members, and building and nurturing good relationship in the community. One of his program members shares: “Mabait si Sir Alvin at mabuting makisama. Hinihikayat niya kami na mas maging mabuti ang samahan namin sa sentro. Lagi niya kaming pinapaalalahanan na dapat kami ay magtulungan at maging responsible sa lahat ng aming gagawin. Kami

“I owe everything to our Almighty God. He is the source of my strength to fulfill my obligations as a program assistant. ”

A few months later, the branch needed a new utility worker.

“I cannot think of anybody to hire except Alvin,” said Roselyn Embac, branch manager. “When I called to ask if he would like to re-apply as utility worker, he was so happy and jumped with joy (as related by his mother days after),” added Rose.

It was Alvin’s turning point. He humbled down and went back to the branch to prove that he was in for the service.

Alvin’s superiors noticed

development in his capabilities and personality. They believed that there is something more that Alvin can add to the organization given the opportunity. “Alvin is exposed with the operations, and he is a fast learner. We know that

and understood the operations because I read the publications and reports posted at the branch bulletin board. I also witnessed orientations for program members, and joined branch devotions. From there, I knew I can do it as well.”

But being a program assistant wasn’t as easy as he thought. He faced discrimination in the centers he first handled. “People tend not to accept that they will be led by a former utility worker.” There were program members who questioned his becoming a program assistant.

“However, today it is the same program members that want him to stay for good because of his sincerity and concern for them,” his supervisor said. Alvin counters negative comments saying, “It is true that I am

rin mismo ay tumutulong sa kanya.

Pinoprotektahan namin ang sentro dahil ayaw naming masira ito. Dama naming ang katapatan sa kanyang ginagawa.” Alvin also trusts God for everything. “I owe everything to our Almighty God. He is the source of my strength to fulfill my obligations as a program assistant.”

Alvin’s supervisor compares him to a book. The blank pages represent his willingness to accept instruction and feedback, while the other pages represent his character wherein you can always learn something from. Regardless of situations where he is placed, Alvin has proven that good character coupled with a heart for others is enough to bring one to heights unexpected of humble beginnings.

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Cover Story

communi-K • vol. 6 no.1

A Perspective of

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Brand Leadership

By Aldy Duque

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ne of the blessings I received from God this year is the privilege to attend a fundraising and marketing class at the Kellogg School of Management last February. I have learned so much from the class and one of the most significant stuff I brought home with me is “brand”. Certainly, brand has a direct relationship with what I am doing in KMBI and also with KMBI as a non-profit (or not-for-profit) organization. But then I realize that brand has something to do with people also and not only with products and companies. It is present in everything and every living thing, and that includes us human beings – male or female, educated or illiterate, employer or employee, what have you. In this sense, brand plays a very important role in our leadership styles and practices especially that the success of an organization is often driven by its leadership. It is

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just a matter of whether we have a great or awful brand.

What is a brand? More often than not we think of a brand as a name or logo of a particular product

We have to find ways and means to fulfill what we have promised. like Coke, Purefoods, Colgate, Toyota, Adidas, Mendrez, Arrow, Ateneo de Manila, etc. Actually, a brand is any label that carries meaning and association. It is the perception of people of a particular product or service. Perceptions are made based on the consumer’s experience of the product.

When a consumer pays for a

product or service, what she is paying for is the whole experience. It is therefore important that the enduser or client experience the promise (most of the time these are the features advertised) of the product because what brings satisfaction to them is the reality of what has been advertised or offered. Thus, the need to deliver the promise we make to our clients needs not to be over emphasized. It is non negotiable!

We have to find ways and means to fulfill what we have promised.

As a Christ-centered organization we need to treat this seriously. The Bible encourages us to fulfill all the promises we make otherwise just make it a plain “yes” or “no”. The apostle James said, “And above all my brothers and sisters, do not swear, either by heaven or by earth or by any other oath. But let your ‘Yes’ be yes and your ‘No’ be no, so that you may not fall into judgment” (Jas. 5:12).

Customer satisfaction is a matter of

Cover Story

I chose you to lead my people - 2 Samuel 7:8

integrity and without integrity there is no credibility.

Brand and leadership

Our leadership carries a brand and it defines our personal leadership style – an operative reputation at work. And this brand is based on the perception of those people who have experienced working with us. Some may have affirmative ones, while others had the opposites. The way we deal and relate with people carries a great significance on how our brand is built.

Your brand conveys your identity and distinctiveness as a leader. It communicates the value you offer. If you have the wrong leadership brand for the position you have or the position you want, then your work is not having the impact it could. For example, we expect all the branch staff to be honest and reliable. What if one of the branch staffs is not honest and reliable? Can this undermine the perception of the branch as a brand of honesty and reliability? Of course it will.

Espoused but unlived brands create

Your brand conveys your identity and distinctiveness as a leader. cynicism because they promise what they do not deliver. To ensure that the leadership brand you advertise or announce is embodied in your dayto-day work, ask those around you.

Do they see you as you wish to be seen? If you say you are flexible and approachable, do others find you so?

Our leadership brand needs to reflect the head and heart of KMBI, making us inimitable and distinct so that our messages do get across.

As leaders we have a gargantuan task to ensure that our brand is clearly understood and that we align our values with the Institution’s.

A mismatch of those values can ultimately undermine the brand of KMBI. If our style is bureaucratic, arrogant or supportive, approachable or any other brand label we give it by our actions. Our staff or co-workers recognize that brand and then start to confirm it through their experiences.

Anyone in a leadership role has the responsibility to ensure that they uphold the brand and live within the values of the organization. The expression commonly used is “walkthe-talk”. But I believe it is beyond walking the talk and it requires “living the talk”. If anyone in an organization wants to see what the values of the organization look like, then they should be able to look at people in leadership positions and see those values in action. They should see a living, breathing, walking, talking personification of those values.

Developing a powerful leadership brand

Leadership brand is very dynamic and therefore it should evolve in response to the different expectations we face at different times. Leaders with the drive to evolve their leadership brands from time to time are more likely to be successful over the long haul – and to enjoy the journey more.

To develop your leadership brand requires you to know what you stand for, your strengths, what you do best and how you compliment others.

When you have defined this, you can start to develop a leadership brand that people are prepared to follow.

Likewise, our leadership brand needs to reflect the head and heart of KMBI, making us inimitable and distinct so that our messages do get across.

The power of branding is all around us. Powerful and successful brands build strong and consistent images in the minds of our clients. Jeff Bezos, founder of Amazon.com once said, “Ultimately a brand is the thing people say about you when you are not there.”

A great brand stays

In times of crisis, there is a tension between brand loyalty and price loyalty. But a great brand stays as it has the command of loyalty and preference over its end-users. When people are satisfied with our brand, meaning we are able to deliver our promises and maybe exceed their expectations, then people would cast their trust on our brand because they experience truthfulness in our words and worth for every cent they spend in buying our products. And because they trust us, then a more meaningful relationship is built. Thus, they would be willing to stay with us through thick and thin.

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Leader’s Edge

communi-K • vol. 6 no.1

The Armor of God Facing the Call for Leadership

By Lea Gatpandan

K

MBI believes that the call for godly leaders is also a call of our generation. Throughout the ages, God is constantly calling men of faith and conviction to step forward and fulfill His purposes.

Today, God can still be heard – He wants Christians to step forward and fulfill His purposes - but many of us tend to refuse to respond to the call. One may say, “I have personal needs and problems, leave me be,” or “sorry but I would prefer to become a follower than to be a leader.” Others may say: “I am not worthy to become a leader. See, I am poor and uneducated. I am nobody, who would listen to me?” Some are left with a sobering reminder of the world’s anguish and the difficult task they have at hand in carrying God’s calling. Such reaction may be “natural,” and can be attributed to what we call the human nature. Yet in a spiritual sense, we say our minds are constantly attacked by the enemy, deceiving us towards the wrong way. The enemy uses circumstances or materialism as weapons to cause our disobedience. This continually

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2 Samuel 7: 9 "Now go and say to my servant David, 'this is what the LORD Almighty says: I chose you to lead my people Israel when you were just a shepherd boy, tending your sheep out in the pasture. I have been with you wherever you have gone, and I have destroyed all your enemies. Now I will make your name famous throughout the earth! “

happens unless we stand up and respond to God’s call.

So how are we going to respond to this call? We need to see and understand beyond what our human nature dictates. Yes, it is indeed difficult to be an effective leader in today’s ever-changing world.

However, this is the call we have as Christians… to lead and proclaim the truth of God’s love and eternal plan.

And for this reason, let us help each other to get out of the deception of

the enemy. Let us help each other to bring out the great leaders within us. Our weapons are simple and yet powerful. Firstly, we need to accept Jesus as our Lord and Savior, have a growing relationship with God, and live in faith. Secondly, we must fully comprehend the mind of God revealed in the Bible. Knowing the Scripture and reflecting on it will make us aware of God’s way and will and therefore we cannot be deceived by the enemy anymore. Thirdly, let us

Leader’s Edge

I chose you to lead my people - 2 Samuel 7:8

commit to lead wisely for a lifetime.

And lastly, let us wear the Armor of God so that no one can defeat us in this battle.

The Belt of Truth. For the Roman Soldiers, the girdle protected the mid to lower abdominal area. Jesus said in John 8:32, "And you will know the truth, and the truth will set you free."

Just as in the laws of physics were light dispels darkness, in the law of the Spirit truth sets us free." Truth is Jesus. John 14:6 says, "I am the way, the truth, and the life...." The belt or girdle was worn around the waist which speaks of a person's inmost being. The Lord wants us to be free completely from the inside out! “But you desire honesty from the womb, teaching me wisdom even there.

(Psalm 51:6)" Breastplate of Righteousness. One key area the Soldier's breastplate protected was the heart. While the heart is the one key organ responsible for sending blood through our circulatory system to keep us alive, our spiritual lives can deaden if our hearts are not right with God! 1 John 3:21 says, "Dear friends, if we don't feel guilty, we can come to God with bold confidence." No wonder enemy wants to make us feel guilty all the time. Our relationship with God is so damaged when we view God as an unforgiving taskmaster whose only interest is to punish us and weigh us down with guilt whenever we do wrong! On the contrary, in Philippians 1:6, God, who began the good work within you, will continue his work until it is finally finished on the day when Christ Jesus returns God is faithful to finish the work He began in you! And even though you blew it and sometimes fall to times in which you don't have any faith, God remains faithful to us (2 Timothy 2:13). Let us

not forget that our righteousness was not earned by good works (Ephesians 2:9), but rather was credited to us (Romans 4:3, Amplified Bible), hence righteousness is a gift!

Helmet of Salvation. A well-designed helmet will protect you from various angles of attack. As mentioned above, the greatest battlefield is in our minds.

This is the area that the enemy wants to attack the most. One key area he wants to damage is our assurance of salvation. Many Christians have been deceived into thinking that they have lost their salvation, that they had committed the unpardonable sin. Be encouraged, if this is the case for so long as there is the slightest inkling of wanting to return home into Jesus' loving arms, He accepts with willing and glad heart!

Sandals of the Gospel of Peace. Have you ever noticed how when you stub your toe - when your foot hurts, the whole person hurts? In the Bible, feet speaks of your walk (Proverbs 19:2).

When you are walking in the peace of God, not only do you have a sensitivity for Godly wisdom (James 3:17) but that your proclamation of the Gospel is particularly blessed (Isaiah 52:7).

Make sure you do this with an alert mind when you put the armor on in the morning. When I don't get enough sleep, I tend to get sloppy, and the sandals of the Gospel of peace somehow end up on my hands!

Shield of Faith. Psalm 3:3 in the NLT says, "You, O Lord, are a shield around me." God provides 360-degree by 360-degree complete protection!

Notice that Ephesians 6:16 says that with this shield we will be able "to hold up the shield of faith to stop the fiery arrows of the devil" or the "wicked one" - which is the enemy.

These "fiery arrows" are the very flash

thought attacks we get out of the blue for no reason at all! Remember that faith is the evidence of things not seen (Hebrews 11:1). Faith is the confidence that what we hope for will actually happen; it gives us assurance about things we cannot see. David Wilkerson once said, "Man says, 'seeing is believing' but God says, 'believing is seeing!'"

Sword of the Spirit. The Sword of the Spirit is the Word of God. When Jesus was tempted by Satan in the wilderness, Satan said, "If you are the Son of God...." Yet Jesus did not respond like many of us would.

So many of us shout at the Devil and believe that our volume is proportional to the distance Satan will flee from us! However, Jesus quoted His Father's words and spoke them with authority. Consequently, each Word-thrust was like a swordblow to Satan's head! God has given us the authority to use His words because we are all ambassadors of Christ (Ephesians 6:20)! Hebrews 4:12 reveals that the Word of God "is alive and powerful."

Once you put the Armor on, remember to NEVER TO TAKE IT OFF! Source: http://www.angelic.org/originalsite/ armorofgod.html http://www.sthildas.net/panorama/ panorama.html http://bible.cc/1_thessalonians/5-23.htm image : http://www.sthildas.net/panorama/ images/PanMed_No06.JPG

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Leader’s Edge

communi-K • vol. 6 no.1

Understanding

TEAMWORK

By Lea Gatpandan

M

ost areas and branches endeavor to build the capacity of staff and strengthen the teamwork and camaraderie within. Calabarzon 2 operation for instance had its team building activity on January at the Lord’s Garden Foundation in Calamba City. Their purpose for the activity was to enhance staffs’ skills (mental and physical) and values (spiritual).

Similarly, the NCR area conducted staff teambuilding at the La Mesa Ecopark in Quezon City last March to unify the five branches towards achieving their goals as agents of transformation. Why is this so?

When groups have common goals, teamwork is essential to success. Teamwork is one of today's most popular buzzwords. It is

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defined as actions of individuals, brought together for a common purpose or goal, which subordinate the needs of the individual to the needs of the group.

Employers expect employees to function effectively on various teams and most organizations convene teams to tackle problems or projects. It is imperative therefore to learn teamwork skills, even if you prefer to work independently.

There may be a team composed of extraordinary individuals but if they do not work together as a unified team, they may end up losing or being humiliated by ordinary individuals who worked as a team. Note that achieving a strong and effective team mentality requires a great deal of sacrifice, commitment and hard work.

There are a number of factors that must be in place to cohere as a team and work seamlessly.

Good leadership. The team’s leader should possess the skills to create and maintain a positive working environment and motivate and inspire the team members to take a positive approach to work and be highly committed. An effective team leader will promote a high level of morale and make them feel supported and valued.

Clear communication.

Communication is a vital factor of all interpersonal interaction and especially that of a team. Team members must be able to articulate their feelings, express plans and goals, share ideas and see each other’s viewpoints.

Leader’s Edge

I chose you to lead my people - 2 Samuel 7:8

Above pictures show Tandang Sora branch and Calabarzon 2 staff (left to right) in their respective teambuilding activities.

Establishing roles. It is absolutely necessary for team members to understand what their role on the team is, what he/she is responsible for. The team leader can enable this by defining the purpose in a clear-cut manner in the beginning of the formation of the team.

Conflict Resolution. Conflicts will arise no matter how well a team functions together. The best way to counter conflict is to have structured methods of conflict resolution. Team members should be able to voice their concerns without fear of offending others. Instead of avoiding conflict issues, a hands-on approach that resolves them quickly is much better.

It is often advised that the team leader sit with the conflicting parties and help work out their differences

without taking sides and trying to remain objective if possible.

Set a good example. The team leader must set a good example for good teamwork to come about. In order to keep team members positive and committed and motivated, the team leader herself/himself needs to exhibit these qualities. The team looks to the leader for support and guidance so any negativity on the leader’s part can be disastrous.

Regardless of what type of team you are in, you may one day be asked to lead a team effort, and knowing how to effectively work on and with a team is going to be crucial to your success and that of your team. If you have the right team composition and approach, team synergy can take

over. But it has to be set up correctly.

The team members have to be willing and ready to participate. So the next time you ask yourself why these people are investing in team building, you know the answer: to know your core values, to position for a common cause, and to keep team together to achieve your defined objectives, and that is called TEAMWORK! Sources: http://www.articlesbase.com/team-buildingarticles/the-importance-of-teamwork-381813. html http://www.yourdictionary.com/dictionaryarticles/Definition-of-Teamwork.html

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ENTREP 101

communi-K • vol. 6 no.1

Making Sense on Cents

An excerpt from Consumer Protection and Financial Literacy Seminar by Mr. Eduardo C. Jimenez, BSP Consultant for Microfinance

G

iven the financial crisis that the world is currently facing, it is very important that people enhance capacity and understanding on money matters to avoid business or personal financial havoc later on. The Philippines may not yet be fatally affected by the said crisis unlike other countries but Filipinos should also be prepared to face the crisis and be financially literate.

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Financial literacy is a broad term that has multiple meanings, depending on an individual’s situation.

It may mean learning how to create and manage a household budget, learning how to invest money for retirement, or participating in oneon-one coaching and counseling to determine how to buy a house or start a business. It also is part of an overall strategy to increase economic security for lower-income families.

Financial learning is the ability of an individual to understand financial terms and concepts and to translate this knowledge skillfully into behavior.

It is the ability to read, analyze, manage and communicate about the personal financial conditions that affect material well-being. This includes the ability to discern financial choices, discuss money and financial issues without discomfort, plan for the future and respond competently

ENTREP 101

I chose you to lead my people - 2 Samuel 7:8

to life events affect everyday financial decisions. Financial education, just like reading and writing, affects the well-being of every individual. It also affects the economic and social well-being of every community and, ultimately, the overall strength of the nation’s economy.

It is important for both the clients and institution to be financially literate. Clients will be benefited by being empowered and financially informed of their rights and duties as borrowers.

Becoming victims of fraud, predatory practices and other unfair practices will be minimized. They will be able to budget, plan, and monitor their finances, and will be more disciplined in doing savings and investments. For the institution, it can mean more income as clients become more trustworthy, responsible and disciplined, and expansion program can be done due to quality of portfolio.

The Banko Sentral ng Pilipinas (BSP) has taken part in preparing Filipinos for the tough times. BSP produced teaching guides on financial literacy to increase understanding on money, how to use it properly, and how to make it grow. Below is a portion of the lessons taught.

USE OF MONEY There are three uses of money spend, save or invest. By spending, an individual can use money for basic necessities, i.e. food, housing, medicines, clothing, transportation, recreation etc. By saving, one allocates a portion of his income for emergencies, opportunities or to achieve financial goals. Regardless of the amount saved, in the long run, savings will accumulate and the person may have saved a lot than expected. If the individual knows how to do a business, then

he invests money into some income generating activities. However, he should be cautious enough to know the cash flow and record details of the business, and he should not start his business out of debt. Hence, it is best to assess income and spending activities, and think of something to forego for the meantime in order to save and invest later on.

BUDGETING AND PLANNING Budgeting and planning is a simple tool that is useful to manage finances.

A budget is a plan that lays out how resources, specifically money, are used. It helps an individual to prioritize buying activities. It serves as a road map that helps to get from where the individual is at present to a financial goal. Since the objective of budgeting is to help achieve life goals, it might be helpful to look at financial goals. Goals may vary for different individuals. It depends on a person’s perceived priorities in life.

Goals also vary, i.e. from meeting the basic necessities in life to getting out of mounting debt, to investing in insurance, to acquiring a house.

Goals may be short term, midterm or long-term. Therefore, fulfilling your goals may also take a short or long time. Achieving a set of goals is also dependent on availability of funds, costs involved and other available resources. Some degree of flexibility is needed to achieve the goals.

It doesn’t matter how much is being saved. What matters is the habit and discipline in saving.

With a clear budget, one is able to control money and not vice versa. Through this, we are helping the Philippines to have a saving habit.

Steps to prepare a budget 1. Keep track of your income & expenses - set up a clear recording system of all incomes and all expenses.

Create your own cash flow statement based on the recorded data. Compute for your net income.

2. Create appropriate budget categories, i.e. household expenses.

3. Set your financial goals. It may be short, mid or long term.

4. Allocate your income across your budget category.

Source: http://www.ncsl.org/programs/banking/ FinLiteracy_Introduction.htm Financial Learning Seminar for Banks with Microfinance Operations – Banko Sentral ng Pilipinas

Editor’s Note: We will continue the second part of this article in the next issue.

WHY DO BUDGET Budgeting helps in decision making.

If something came up and the budget made did not work, decision has to be made. A budget also encourages being careful in spending money and saving discipline. KMBI is teaching clients to save but we, in the organization, should be credible by practicing what we teach. No one has the right to speak about savings if he is not saving.

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ENTREP 101

communi-K • vol. 6 no.1

SAVING UP: A great weapon to counter financial crisis

By Victor Perez

S

ome of our program members discovered the value of saving up which fuelled them to start something bigger. One is Emerlina Miranda of Naga City who was once a homemaker who boldly held her ropes, literally and figuratively, which swung her to success. Now she has abaca ropes and market bags as her family’s main sources of income.

Another is Nicanora Garcia of Butuan, former government employee who resigned from her job to start a business and now successfully operates her upholstery services.

There is also Mercedes Tagyubon of Butuan City, who did not give up from her fire-stricken tailoring business, and now has established G-tags Combination and Bag makers.

These women know the

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value of saving up for the future, saving up for debts, saving up for the hard times. Like them, we as agents of change should also value saving up. While we are young and have the extra money to save, we should start saving. We should be smart and financially literate to be able to manage our finances well.

At this point in our life, financial responsibility should be a priority, regardless of our age or income level.

According to the Asian Development Bank, the global economy is in the grip of a major downturn. In this time, it is never too early to start thinking about our finances. In the US, Time magazine reports that aside from rediscovering that a job is the most valuable asset a person can have, people are learning

to save money. From a negative savings rate in late 2005, the United States hit 5% in January this year.

In one of his talks, Dr. Andrew Liuson, highlighted some basic steps about saving, a direction which is very practical and achievable if we focus on achieving it. He listed five stages, FIVE BABY STEPS as he called it:

Build up your emergency fund. It is good to have something to pull out when the need arises.

Franciso J. Colayco, a financial literacy advocate, said that if you start saving Php 30 everyday, in 40 years, you will comfortably retire with Php 97.4 million in your savings! This seems easy, right? If you delay this for a year, you lose Php 460 thousand from this total Php 97.4 miilion. So start this practice soon. Don’t delay!

ENTREP 101

I chose you to lead my people - 2 Samuel 7:8

Set aside something for your regular savings. Dr. Liuson pointed out that an equivalent of three to six months of your salary will be a good amount to represent your “savings”.

Anything in excess of this is more than welcome to be part of your savings build-up! The principle behind is to have discipline and the proper mindset to save. You will be surprised what your peso can do if you save it. You can enjoy paying in cash for the things you need rather than accumulate debts with a credit card.

Save up for retirement. “Pay yourself first” is the advice of Colayco in relation to retirement. This can be done by setting aside money for your welfare, and the rest will be for expenses. Leave about 15 to 20% of your salary untouched and consider it

only for future use.

Acquire a house, build your home! If you reached this stage, then it means you have successfully mastered the discipline to save and you are now prepared to set aside a part of your earnings to invest on an asset, e.g. a house or a lot.

Many housing projects tie up with government-funded agencies for interested parties to acquire easy instalments. A portion of our savings should gradually pay up amortizations or monthly housing dues.

Wealth build-up. If you think you have reached this stage, then abundance abounds. You are blessed, because you saved up!

A common denominator in all these is about us as stewards using wisely what God has entrusted

to us, whether it is knowledge, material wealth, able bodies and good health, or good relations with our immediate community.

As it is often said, when one works hard, cash will follow. We can all learn from our “women ENTREPs”, as they learn some new things from us as “client-ENABLERS” as well. It is with excitement that we hope to bring to the next level our unwavering support to further enable our ENTREPs reach greater heights in their enterprises so that they can truly live to inspire more people in the communities.

Image source: http://www.ehow.com/how_4711450_ build-emergency-fund.html

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MF Index

communi-K • vol. 6 no.1

Have the Right to Know!

Introduction to Consumer Protection

By Maylanie Apawan The State has long recognized the need to protect the rights and interest of consumers. With the enactment of the Consumer’s Protection Act of 1991 (R.A. No. 7394) and other relevant laws touching the subject, measures to safeguard the interest of consumers and empower them to be aware of their rights and make prudent and educated decisions on products and services are well-established.

In the microfinance industry, legal framework itself provides protection for the poor who will access or have accessed microfinancial services. The Consumer’s Protection Act of 1991 mandates to “simplify, clarify and modernize the laws governing credit transaction and encourage the development of fair and economically sound consumer credit practices.” The Truth in Lending

Act (R.A. No. 3765) further reiterated this intent by requiring the creditors and providers of loans as well as credit granting NGOs, to furnish their borrowers, prior to consummation of any transaction, a clear written statement disclosing the amount, interest and other finance charges relative to their loan.

The whole extent of protection seeks to avoid the ills brought by the current microfinance industry which is increasingly becoming more commercialized and competitive. The industry is not immune from instances when competition opens the market to providers who are less concerned with socially responsible microfinance principles and may engaged in aggressive and inappropriate marketing strategies. Or those instances when vulnerable borrowers

due to lack of access to information or being insufficiently informed of their rights are easily pressured into making poor transaction decision.

These undesirable practices undermine the stability of the industry. They pose serious challenge specifically in the long term sustainability of consumers/borrowers whose basic needs are primarily dependent upon the benefits the industry is providing. Microfinance is built on the foundation of serving the needs of poorer client-based. And this is one sector known to be vulnerable to abuses.

This article would like to point that undesirable practices can happen at any stage of the transactions. The table below summarizes some of the practices that industry providers must take note of: HAVE THE RIGHT/23

Examples of Undesirable Practices in Microfinance Before Transaction • Giving high or false expectations on interest on loans and deposits and benefits from insurance • Hard selling through home visitation, door-to-door solicitation, limited time offers and intimidation • Inadequate orientation, seminars or consultations • Unclear policies and lack or written or oral information on the true cost and benefits of the products/services being offered • Promises of hidden rewards

20 |

During Transaction • Approval or denial or clients without clear basis or criteria • Clients are not given copies of contracts, records or other documents on their transactions • Inappropriate of deceitful contract wording, written document do not reflect agreed upon terms and conditions before transaction was made • Force terms of conditions • Withholding of funds or imposition of penalties on cancelled loans, deposits, or insurance plans within a few days of transaction without proper disclosure to the client

After Transaction • Inaccurate recording of client’s transaction • Illegal and abusive behaviour in the conduct of transactions such as harassment or imposition of unnecessary fees, surcharges and consolidation of debt at higher rate • Releasing of borrower’s information in violation of certain legal provisions • Withholding of capital build-up or savings and insurance claims or benefits without valid reason or appropriate explanation to the client • Misuse or diversion of funds by service providers

Project Update

I chose you to lead my people - 2 Samuel 7:8

Community-Based Enterprise Development (CBED) Project in Carpenter Hill

By Calvin Perez

Left - Right: Members of the CBEDP in the planning workshop; Members of the CBEDP preparing for the 3rd year program.

P

ushing for the realization of community empowerment, KMBI takes on the final year of the Community-Based Enterprise Development (CBED) project in Barangay Carpenter Hill (BCH), South Cotabato through the formalization of the ten local enterprises formulated by the resident stakeholders.

The organization, through the Community Development (ComDev) Unit, facilitated the formulation of formal membership guidelines and beneficiary identification procedures for the said enterprises.

“The Unit also works to inculcate in our beneficiaries or stakeholders a sense of ownership of the enterprises where they belong to so that when the phase-out stage comes, the project that would be transferred to them will be managed

and sustained in the long-term,� said Calvin Perez, ComDev unit head.

At the start of 2009, field activities such as consultative meetings with general enterprise heads were held. Technical assistance was also provided to the enterprises, particularly in the preparation of their program of work, which is one of the bases for the disbursement of funds for the current year. More recently, KMBI and the stakeholders identified and prepared the enterprise sites and purchased basic supplies and materials. Moreover, a project management committee was created to oversee field monitoring activities.

AN OVERVIEW The Ten Local Enterprises comprising the CBEDP 3rd Year of Implementation Food Always In the Home (FAITH) Gardening. The Carpenter Hill FAITH

Gardening Association pledges to conduct advance training on homebased gardening to enhance the knowledge and skills of members as they venture into small-scale business such as the said program.

To further sustain the said program, the Association intends to explore possible linkages to potential markets.

BCH Integrated Floral Entrepreneurs. This livelihood project aims to provide basic to advanced skills in ornamental propagation technology, through the assistance of local business people who own or are engaged in ornamental and flower propagation business. Moreover, member exposure to orchid-growing and foliage-making will be made available as part of membership benefits. The enterprise will also soon venture into catering services, realizing the link between flower

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Project Update

communi-K • vol. 6 no.1

Left - Right: Finalization of the CBED Program of Work; Regular monthly monitoring activity.

supply business and food services.

Culinary training programs will thus be developed on the latter part of program implementation.

Native Chicken Production

and Management. The Carpenter Hill Native Chicken Association was formed to specifically administer this program which stems from the historical success of the native chicken production in Koronadal City. Under this program, native chicken will be purchased and dispersed to target beneficiaries (1st batch- 50 families with 20 chickens per beneficiary) based on a given criteria. Beneficiaries’ counterpart shall be their own constructed shed house and fence. Each is expected to return 20 chickens within the period of one year and these chickens will be subject to dispersal for the 2nd batch and the 3rd and so on. Once the operation is proven effective and successful, the association will pursue linkages with possible markets for massive dispersal. This will be a source of income for the members and will likely support the association operations.

Magsasakang Siyentipiko para sa Pag-unlad ng Agrikultura (MASIPAG) Rice Production. MASIPAG

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Rice Production is meant to enable local palay farmers to produce quality organic rice and quality seeds for sustainable farming. It is designed for sustainable agriculture and the answer to unstable agricultural production and unpredictable price hike of farm inputs.

Plant Propagation and

Nursery Development Project.

This project was conceptualized and developed to help low-income families and the environment.

This project will be established in Purok Mabuhay of Carpenter Hill which is accessible to all types of transportation and facilities needed.

The 1,000-square-meter-area can be utilized for the nursery of various fruit species such as mango, durian, mangosteen, coconut, as well as forest items like mahogany, lawaan, gemilina and bamboos. The nursery project will be managed by the Carpenter Hill Plant Propagation and Nursery Development Association. The produced nursery seedlings will be marketed to private individual farmers and government agencies such as the Department of Environment and Natural Resources (DENR).

Talipapa Project. The

Talipapa (Wet Market) Project was conceptualized to provide alternative sources of income for constituents of Carpenter Hill. It intends to establish a strategic talipapa area adjacent to residential areas and motorists.

The area is projected to become a central drop-off point for agricultural products of the community and, preferably, of the FAITH Gardening Association. This project will be established in Purok Megaland which is strategically accessible along the National Highway, and will be managed by the Carpenter Hill Talipapa Association.

Therapeutic Massage Project.

This enterprise is established to serve as a catalyst for the skills development of those in the therapeutic massage sector. The project shall be managed by the Carpenter Hill Therapeutic Massage Association.

Vermi-culture and Compost Production. The project was conceptualized to promote the creation of quality organic fertilizers which is expected to eventually pave the way for Carpenter Hill to emerge as a leading producer of organic farm products in Koronadal City. Tasked to lead the project is The Carpenter Hill Vermi-Culture Association which is

Project Update

I chose you to lead my people - 2 Samuel 7:8

composed initially of members who are willing to undergo training and commit to vermi cast production.

These members would keep vermi bins in their homes to ensure that a sense of ownership is realized as they also gain income from their own products.

Waste Recycling Project.

This project entails the conduct IEC activities on waste recycling in all puroks (zones) by the Carpenter Hill Waste Recycling Association.

Meanwhile, members of respective puroks shall create a system of waste collection. Trainings on values

formation and financial management will also be conducted for members.

Cosmetology Project. The Beauty Parlor project is geared towards providing income for its members who have skills on hair cutting, hair dressing, cosmetology, and basic make-up application.

Advanced trainings on hair relaxing, straightening and rebonding will be conducted to further enhance the skills of members. The Carpenter Hill Beautician Association shall also offer provisions for financial and project management trainings to help members build their capacity

to engage in their own businesses in the future.

In addition to providing the necessary financial capital, KMBI also helps the members of these enterprises to be more assertive and confident in managing and sustaining their respective enterprise so that eventually, they may be endorsed as potential program members of KMBI’s microfinance program. The successful implementation of this development program will then serve as basis of replication activities in other areas where the KMBI operates.

Have the Right to Know!...from p.20

Image:http://www.wfdsa.org

The challenge for industry providers is to adhere to a given set of principles that ensures consumer protection.

Literatures have laid down some pertinent principles to adhere in ensuring consumer protection.

1. Prevention of irregularities or transactions which have negative impact on the consumers. At any stage of the transaction (before, during, after) irregularities is known to occur. The whole process of transacting must be scrutinized for possible violation 2. Empowering the consumers to exercise informed choices and select value-for-money goods.

Consumer literacy teaches borrowers how to acquire the right information at different stages of their transaction so they can make intelligent choices and decisions. This addresses the problem of consumer vulnerability to unsound financial practices and enables consumers to make informed choices and exercises their rights.

3. Providing fair access to microfinance products and services. This area encourages

transparency in the details of the entire transaction. Transparency entails the disclosure of the terms and conditions of the terms and conditions of the financial transactions and is clearly understood by the clients.

4. Opening avenues to address consumer interests and concerns.

A vital part of consumer protection is a mechanism where consumer protection and grievances on undesirable services can be aired and addressed effectively.

Recognizing these principles will enhance industry provider’s capacity to better serve the needs of its clients/borrowers. With the current industry becoming more competitive and commercialized, more reason for consumers to get what they pay for, to be guaranteed of the quality of goods and services they purchase and avail, and to have recourse in cases of violation by business/providers of goods and services.

Reference: Microfinance Consumer Protection Guidebook by National Anti-Poverty Commission (NAPC)

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communi-K • vol. 6 no.1

Organizational Performance Indicators Loan Activity

1st Quarter 2009

Efficiency Cost per Unit Lent (PHP)

0.19

Client Outreach

142,639

Cost per Loan Made (PHP)

1,094

Loan Portfolio

P371.86M

Financial Self-Sufficiency

91.87%

Value of Loans Made

344,377,000

Operational Self-Sufficiency

120.81%

Portfolio-at-Risk

4.12%

Ave. No. of Client per PA

258

MF Operations

705

No. of Loan Made

59,004

Support Group

69

P7.5M disbursed for microinsurance claims For the 1st quarter of the year, KMBI released P7.575 million worth of insurance claims to 103 beneficiaries of KMBI’s Karamay sa Buhay Program (KBP) through Cocolife Insurance.

KBP provides P25,000 up to P100,000 life insurance benefits for program members and their beneficiaries. A service given to all program members whose age is 63 years old and below, it is one of the measures KMBI upholds to improve the protection and assistance to its program members.

Number of Staff

partnerships particularly with banks, funding agencies, and other financial institutions. Currently, we have covered almost 100 percent of the required funding for the expansion through the line offered to us but we still aim to raise 25 percent of the budget needed through grants and donations or other low cost funding.

1.5% Gross...from p.7 expenses due to some restrictions.

Unused fund of employee for the year will be forwarded to the Provident Fund which will form as part of KMBI’s contribution. On the other hand, unused fund of resigned employees will be forfeited in favor of KMBI.

19 New...from p.5 provincial levels were also conducted.

Massive reshuffling and various promotions of staff were done to ensure that all current and upcoming branches are supported with necessary talents.

On the other hand, recruitment of program assistants from the locales is still ongoing as of writing. The Training Department, for their part, is gearing up for the provision of Basic Operations Training and Branch Management Training to new program assistants and newly promoted officers, respectively.

According to resource mobilization manager Aldy Duque, Aside from the opportunity to take part in alleviating poverty in the country, the expansion has provided us another opportunity in the form of new

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We’d love to hear

YOUR THOUGHTS

Our Vision

“To see people in communities live in abundance with strengthened faith in God and in right relationship with their fellowmen and the rest of creation”

Our Mission

“KMBI is a Christ-centered development organization, existing to help transform the lives of its clients and develop its human resources who will provide sustainable microfinance, training and demand-driven non-financial services.”

Core Values Respect Integrity Stewardship Commitment to the Poor Discipline Innovation Excellence

Goal 25.250 “Reaching out to 250,000 Filipino households on our 25th year”

Please take a moment to give us your comments and suggestions on articles presented on this issue.

You may reach us at KMBI 12 San Francisco St., Karuhatan Valenzuela City 1441 Philippines Email: rmc@kmbi.org.ph

Kabalikat para sa Maunlad na Buhay, Inc. Head Office: KMBI Bldg., 12 San Francisco St., Karuhatan, Valenzuela City Tel (02) 291.1484 to 86 l Fax (02) 292.2441 http://www.kmbi.org.ph