communi-k 3rd quarter 2009

KMBI

“I chose you to lead my people” (2 Samuel 7:8)

communi-k VOL 6 NO 3

INSIDE:

NEWS: P14M loan disbursed by expansion branches 05

ENTREP 101: It Pays to Think Rich 12

LEADERS’ EDGE: Marketplace and Ministry 14

MF INDEX: Foster Spirit |to 1 Maintain Success

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Communi-K • vol. 6 no.3

contents VOLUME 6 • NO 3 • 3RD QUARTER 2009

News 4

Features

Negros serves community before loan release

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Marketplace and Ministry

Butuan es up with TESDA for client’s training

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A Quick Look: Social Performance Management

Negros, San Pablo conduct teambuilding

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Foster Spirit to Maintain Success The Role of the Manager in the EBMS

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P14M loan disbursed by expansion branches KMBI to distribute 11,000 bibles to PMs

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PCFC honors KMBI’s commitment

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First phase of CBEDP slated for comple on before year ends

KMBI appoints division directors

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ISO Cer fica on envisioned to materialize by 2010

P0.7M invested for ecumenical mass weddings

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KMBI launches the Hope Fund campaign

Features 7

Rising through Crisis

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Blessed Beyond Measure

10

Think, Buy & be Local

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It Pays to Think Rich

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Updates

About the cover Business As Usual - The cover displays a keen sense of hope, crea vity, and resiliency of Filipinos who, a er being seriously afflicted by typhoon Ondoy (interna onal name ‘Ketsana’), ingenuinely creates business out of the flood. This simply shows that even though slumped by crisis and incessant poverty, Filipinos have the ability to turn difficul es to opportuni es for service and survival.

“I chose you to lead my people” (2 Samuel 7:8)

editorial board Edgardo S. Mercedes Adviser

THE EXECUTIVE VE NOTE

Rizaldy R. Duque Editor-in-Chief Kris Joy G. Dalanon Editor Lea J. Gatpandan Associate Editor Maylanie D. Apawan Cindy V. Escobin Enrique B. Maca Concepcion B. Parantar Calvin V. Perez Ma. Belen M. Sison Contributors Hector H. Celajes Circula on For editorial, contribu ons, sugges ons and inquiries, please contact: RM & C Department Kabalikat para sa Maunlad na Buhay, Inc. 12 San Francisco St., Karuhatan Valenzuela City 1441 Philippines Email: leagatpandan@kmbi.org.ph

ERRATUM On the second quarter issue of Communi-K we wrote that, “Negros area is aiming to target 12,600 client outreach on its 11th month of opera on.” It should have been “Negros area is aiming to target 12,600 client outreach and is expec ng to be viable on its 11th month of opera on.”

“This is about facing the he ne challenges of life as one country, one race. Wee must be united in the samee way we have shown courage ge and unity in the face of catastrophe.”

September 26, 2009. We were all saddened when most parts of the greater Manila and nearby provinces were under water for days a er typhoon Ondoy (Interna onal name Ketsana) poured on for six hours. Men, women, children, including animals suffered during and a er the typhoon. Many were le homeless, with no food and no clothes. No words can describe the extent of the havoc that many of us experienced.

Somehow, despite its being a horrible disaster, Ondoy le a posi ve impact to our society – it united Filipinos. It opened our eyes and made us do things that we never did before the typhoon. Par sanship was set aside.

Blessings poured from inside and outside the country as aid to afflicted families. People showed incomparable generosity to those in need. The Filipino word for that is Bayanihan. What happened to us was a great reminder that we are accountable for whatever we do and to the people around us. It also made us realize that we can actually rise up from any crisis if we only stand up as na on. This is not just merely about preven ng calami es. This is about facing the challenges of life as one country, one race. We must be united in the same way we have shown courage and unity in the face of catastrophe.

Leaders, the storm has ended and the best thing we could do now is to con nue to help one another pick up the pieces and move on to a new beginning. Let us encourage, mo vate, and pray for our co-leaders and our program members. Let us remember that things happen with a purpose. Let the spirit of Bayanihan con nue with or without adversity. Let us stand firm and face the ba le by serving and helping people for the glory of God!

Egay

Edgardo S. Mercedes Execu ve Director

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News Briefs

Communi-K • vol. 6 no.3

Negros serves community before loan release

Silay program members actively participate in the “Operation Linis Bayan” program of Negros area.

Since the opening of Negros area opera on in July, 9,349 members have already served six ci es and seven municipali es through ac vi es like cleanup drive and food distribu on.

Area manager Roselyn Embac requires members and staff to conduct community services prior to loan release.

“We believe that by ini a ng such ac vi es, members and staff will develop unity, discipline, teamwork, concern, and good rela onship with each other. As agents of transforma on, we must help the community to progress as a whole,” said Embac.

On the fi h day of every program orienta on, members and staff assess the need of their community and pool their own resources to serve neighbors.

The ci es and municipali es served were Bacolod, Himamaylan, Silay, Talisay and Victorias, and Manapla, Saravia, Murcia, Binalbagan, Ilog, Cauayan and Hinigaran Prac cing community service is also a way of establishing the organiza on’s brand in the area.

General Santos 1 branch is also beginning to adapt the same ac vity for similar purposes, said its branch manager, Abelardo Tejada.

Butuan es up with TESDA for client’s training Butuan banch partnered with Technical Educa on and Skills Development Authority (TESDA) in providing free food processing training to 152 center leaders on September 5 at the Imadejas Func on Hall, Butuan City.

TESDA representa ves demonstrated the processes of making tocino and longganisa, which the center leaders tried making a erwards. Branch manager Charity Joy Mata reported that the par cipants appreciated the said ac vity, and some of them are now applying this new skill to boost their income genera on.

The said leaders echoed the training workshop in their respec ve ENTREP centers during the weekly mee ng.

Butuan center leaders make their own tocino and longganisa during the training workshop.

Negros, San Pablo conduct team building Kabankalan, Silay, Bacolod and San Pablo branches conducted teambuilding ac vi es in July and August to enhance rela onship among the frontliners.

Bacolod program assistant Joan Baradero reported that through these ac vi es the staff learned the importance of individual contribu on to the achievement of the goals of the team.

In Kabankalan, program assistant Junel Les no reminded his teammates to rise above difficul es or discouragement by being commi ed to helping other people. On the other hand, Silay branch manager James Anthony Russel emphasized the importance of having a clear vision to fulfill and that a leader

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must see to it that this is understood by the members.

Russel added that the leader must decide for the good of the people and not only of himself. San Pablo branch accoun ng assistant Amyrene Lat also reported that these allowed them to exercise selfcontrol, sensi vity, obedience, mind-coordina on, coopera on, and pa ence, which for them are quali es essen al to their jobs.

Kabankalan, Silay and Silay program assistant (PA) Junel Lestino shares his insights on Bacolod are among the 19 courage and commitment with fellow PA. branches established this year.

Organiza onal News

“I chose you to lead my people” (2 Samuel 7:8)

P14M loan disbursed by expansion branches

Baliwag branch program members attended the branch inauguration.

In July and August, over Php14 million worth of loans were disbursed to some 3,615 new program members during the inaugura ons of the 19 branches in Central Mindanao, Visayas, and Central and Northern Luzon.

As s pulated in the organiza on’s Entrepreneurial Nurturing through Transforma on, Reforma on and Empowerment Program, these loans are used as addi onal capital to help boost the microenterprises of these members, which

KMBI to distribute 11,000 bibles to PMs KMBI earmarked Php2.1 million for the reprint of 11,000 copies of bibles to be distributed to program members of its 61 branches by January 2010. This is in fulfillment of its Goal 25.250’s first strategic direc on, which is to ac vely share Christ and promote Chris an values.

Each ENTREP center shall receive one bible in Tagalog Popular Version. These bibles will be used in the ENTREP groups’ regular Bible readings and studies during their weekly center mee ngs.

According to Transforma on senior coordinator Concepcion Parantar, providing Bibles is envisioned by the organiza on to bring about changes in its members beliefs, values, a tudes and ac ons in a holis c manner (Spiritual, Economic, Environment and Social). This is anchored on its flagship program, the ENTREP or Entrepreneurial

Nurturing through Transforma on, Reforma on, and Empowerment Program.

Parantar added that KMBI as Christcentered development organiza on has seen the necessity to provide this vital tool to affect and influence program members towards Christ. “This project is geared towards equipping them with God’s Word to apply in their life’s journey,” she said.

Parantar informed that due coordina on and orienta on with the branch staff will be ensured in order that recipients will fully benefit from the material. This will be done once the produc on is completed.

Similarly, the organiza on gives bibles to its 1,067, staff which they use during their weekly accountability group mee ngs and monthly fellowships.

in turn will help li local economies. The new branches are situated in General Santos, Kabankalan, Silay, Bacolod, Cebu, Angono, Binangonan, An polo, Balayan, San ago, Cauayan, Tuguegarao, Laoag, San Fernando, Olongapo, Capaz, Malolos, Baliuag, and Tarlac.

Each branch is expected to have 4,200 program members.

The organiza on now caters to 16 areas and is s ll seeing the possibility of establishing new branches next year to serve more Filipino women microentrepreneurs and con nue its fight against poverty. Area studies in provinces like Leyte, Bohol, Mindoro, Nueva Ecija, and Panay were conducted in September.

“The plan to establish new branches next year is strategic for us to infiltrate areas where KMBI is not yet visible. This is also to maximize our opportunity to help the needy and to sustain our opera on,” said Carmela Porras, opera ons director.

PCFC honors KMBI’s commitment

RM&C director Aldy Duque (rightmost) receives the award from PCFC given by its executive director Edgardo Generoso (middle).

KMBI was recognized by the People’s Credit and Finance Corpora on (PCFC) for its nine years of commitment, dedica on and partnership in upli ing the lives of the Filipino people during its 14th anniversary celebra on on September 11. PCFC president and CEO Edgar Generoso gave a silver award to the organiza on and to 59 other microfinance ins tu ons.

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Organiza onal News

Communi-K • vol. 6 no.3

KMBI appoints division directors

The appointed directors during commissioning ceremony (left-right): Sancho Montaos II, finance & accounting director, Madelyn Frijillano, audit director, Rizaldy Duque, resource mobilization and communications director, Liza Eco, deputy executive director, Carmela Porras, operations director, Annalie Concepcion, administration director, and Vencent Abraham, quality management director.

KMBI board of trustees approved the organiza onal structure on February 13 which formulated major divisions of the organiza on beginning August 1 to focus and properly organize all the ac vi es

within the division area.

The said divisions are the administra on, resource mobiliza on and communica ons, opera ons, finance and management informa on system, quality

management, and audit. On the other hand, Liza Eco, former deputy director was inducted as deputy execu ve director.

The commissioning of the newly appointed directors was conducted on September 7 during the head office staff’s monthly devo on at the Alliance Gospel Church in Valenzuela City. Edgardo Mercedes, execu ve director, anointed the directors with oil as symbol of the introduc on of divine influence and as blessing for their leadership. Mercedes also reminded directors to keep their faith on the Almighty God in order to be prepared for greater responsibili es that they will be facing along the way.

The appoin ng of division directors is part of the organiza on’s strategy in promo ng leaders who are believed to be more effec ve as they have deeper grasp of the organiza on’s history, values, and methodology to adapt to the growing organiza on.

P0.7M invested for ecumenical mass weddings

Program members from Calabarzon areas and Digos branch celebrate their blessed union.

Around Php0.7 million was invested for the ecumenical mass weddings that ed the knot of some 234 couples in different loca ons in Na onal Capital Region, Northern and Southern Luzon, Mindanao,

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and Visayas areas from July to September this year.

Ushering unmarried partners to legal union and blessed companionship is the organiza on’s program that aims to

strengthen family es, lead the program members in having a morally upright life, and promote sanc ty of marriage and family life.

This is one of its value-added non-financial services that is implemented since 2006.

Cover Story

“ cchose “I hosee you hose ho you u to to lead l d my my people” people l ” (2 le” le 2 Samuel Sam amu uel 7:8) 7:8)) 7:

Rising Through Crisis

By Aldy Duque

I

n our journey here on earth, the there will be a me that crisis will fall upon us whether we like it or not. All of o us will have to face it and there will be no when exemp on just like what happened wh typhoons Ondoy and Pepeng wrought havoc way we in Luzon. The only difference is the wa respond to it.

Crisis (or problem) is part and parcel of life and therefore th it is durin the me inevitable. No one can prevent it. It will happen during caugh fla ooted that it is least expected. When we are caught by it, the more impact it gets on us. So what do we need to do? Prepare and know how to deal with it so that when it comes, we can mi gate its impact on us and resolve it in the soonest m me possible.

Wikipedia defines ‘crisis’ as a tes tes ng me or emergency event. It further characterizes charac ‘crisis’ as an event that is specific, unexpected, unex non-rou ne or uncertain, and a threat or perceived threat to high priority goals. The first three t of characteris cs argue that “crisis is a process pr transforma on where the old system can ca no longer be maintained.” Therefore, crisis calls th the need for change. However, change is not possible if we do not know how to face or deal with crisis crisis. Here are some principles to observe.

Have a posi ve outlook. It is a common reac on that when crisis comes, we deny it because it hurts do not like or simply, we d dealing with it because uncomfortable. The it’s uncom

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Cover Story

apostle James said, “My brethren, count it all joy when you fall into various trials, knowing that the tes ng of your faith produces pa ence” (James 1:2,3). Let us welcome trials (I am not saying invite).

This is what the apostle is saying. Seldom we see that crisis is an avenue for growth and character molding. When a problem (trial or tes ng or difficul es) comes, be reminded that God allows it because He wants us to emerge as far be er persons than we were before.

By welcoming crisis, we can easily recognize its reality, which is a crucial step before problems can be solved.

Obviously we cannot solve problems if we do not acknowledge their existence.

Once there is recogni on, it will be easier for us to determine the truth as to who failed and caused the crisis, and what really transpired. Some mes, our own misgivings bring crisis but we find it difficult to accept the truth. This is why we cannot come up with solu ons. These things are important in addressing crisis.

Formulate appropriate solu on.

In managing crisis, our foremost goal should be to prevent it from escala ng into a disaster and thus we need to find short-term fixes. However, it does not stop there. Long-term solu ons should be formed as well otherwise we will wind up back in the same predicament. Short-

Communi-K Comm Co mm mun ni--K •• vol. vol. vo ol. 66 no.3 no.3 no. o3 Communi-K

term fixes are intended to put a halt on the crisis, while the long-term ones are to prevent it from occurring again. Shortterm fixes respond to the effect, while long-term fixes work on the cause. For instance, clients may have failed to remit their loan payments. The short-term fix

If we fall, the proper response is to rise. If we fall again, then let us rise again.

Proverbs 24:16 says, “Though a righteous man falls seven mes, he rises again.” should be on making them pay the past due but the long-term should be able to address the root cause of why they failed in remi ng their loan payments on me. Just a cau on: it is important that our response fits the crisis we are facing,

otherwise we are invi ng another crisis.

Act on it immediately. Some mes, what makes us fail in rising through crisis is our inability to move on and act immediately. Some problems are huge that we are some mes paralyzed by it. But we should be aware that an unaddressed problem can escalate into a bigger problem and therefore we cannot really afford to be passive. Crisis or problem should not control our response.

If we fall, the proper response is to rise.

If we fall again, then let us rise again.

Proverbs 24:16 says, “Though a righteous man falls seven mes, he rises again.”

Others, in contrast, try to carry the weight of the world on their shoulders.

They go into isola on, and think they can solve the problem themselves. In reality, we must have the help of other people to devise solu ons and actualize them. This means asking people for help and ideas.

King Solomon once said, “Two hands are be er than one…” (Ecclesiastes 4:9).

Finally, for all the principles men oned, be effec ve. Do not forget to rely on what God can do to us and through us. Remember that our God is sovereign and powerful. He is far bigger than any trial or obstacle we can encounter. With Him, we can always rise through crisis

(Left to right) KMBI staff volunteers met at West Avenue branch to pack relief goods for program members affected by typhoon Ondoy; Metro Manila South branch distributed relief goods to its program members.

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Feature

“I chose you to lead my people” (2 Samuel 7:8)

Blessed Beyond Measure Dalton Gamao’s experience after Ondoy

By Lea Gatpandan

I

sak Dinesen, a Danish writer once wrote, “Difficult mes have helped me to understand be er than before, how infinitely rich and beau ful life is in every way, and that so many things that one goes worrying about are of no importance whatsoever.”

This quota on best describes the realiza on of Gabriel Dalton Gamao, program assistant of Tandang Sora branch, a er the tropical storm Ondoy.

On that fateful Saturday, September 26, many parts of the greater Manila area and provinces in North and Central Luzon were submerged in floodwaters brought by tropical storm Ondoy with interna onal name “Ketsana.” Over 12,000 staff and program members were highly affected.

Dalton’s program members and himself were not spared.

In Dalton’s place in Tandang Sora, Quezon City, water rose to the second floor where his room was located. Together with his dorm mates, he evacuated the place and decided to stay in a nearby drugstore un l floodwaters abated. That me, he could not stop himself from worrying about his program members, especially those who were living in low areas. Water rose to about 20 feet high in some places, and without no interven ons, nobody would have possibly survived. His prayers for each of the members and their families became all the more fervent as the rain poured.

As expected, members of three of his centers and their families were much

affected by the deluge. “From Tuesday to Thursday, I kept on monitoring their situa on. I heard they were sca ered in several evacua on centers, while others were s ll nowhere to be found. I visited their places, but wasn’t able to reach those in remote areas due to the flood,” he related. Many of the vic ms had to rely on relief goods and used clothing distributed by the government and other ins tu ons, including KMBI. They lost the homes they have established for many years. Their children’s books and other stuff were either covered in mud or washed away by the rushing floodwaters. Though he himself was affected by the flood, he realized his predicament was nothing compared to theirs. “The effect of the storm was terrible, but all I could do was assure them of my help,” Dalton shared.

“I knew what they were going through and what they needed was someone who would understand them. So instead of worrying, I constantly got in touch with them,” he added.

At ten o’clock in the morning that Tuesday, the members begun tex ng that they could not pay the weekly collec on.

Dalton, though saddened by the fact, was amazed how they could s ll think of their weekly obliga ons even at dismal situa ons. KMBI li ed the collec on for those who were affected by the calamity, notwithstanding this announcement, the members s ll insisted to pay. “I think that simply showed they understood their responsibility and accountability as members of KMBI,” said Dalton.

A er a week, they doubled their payments to cover for the previous week’s missed payments. “The other members who were able to recover fast helped comembers,” shared Dalton. “This makes me grateful to think that the members stood by what they promised in the beginning; even in the midst of difficulty, they lived up to their word. They explained to me that in the end they will s ll have to pay for their loans. It was also good that their

Blessed/17

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ENTREP 101

Communi-K • vol. 6 no.3

Think, Buy & be Local

By Calvin Perez

W

e have heard and indulged on some of the ďŹ nest local foods such as adobo, sinigang, and kare-kare, enjoyed wearing those dresses made by some of the most notable Filipino designers. We also fully appreciated well-cra ed Filipino movies, music and dance that have decorated many genera ons 10 |

of enthusiasts of local arts. All of these can go head to head with the most excellent counterparts around the world and some have outclassed them in terms of quality and uniqueness in design. But why the emphasis on patronizing locally independently-owned products when there is an abundance of interna onally known and dependable products? Or if foreign made, contains substan al internally made components? It is not much related to the adherence to our local holiday of independence nor was it by choice being

a na onalis c person. It is in the following causes below that would surely make it even more understandable to not just think local, but to buy and be an advocate of our own locally made products.

Buy local and support others There are accounts showing where the money ows when you buy products from locally owned businesses rather than those na onally owned companies. Considerably, these local businesses buy from service providers, local suppliers and farms to sustain

ENTREP 101

“I chose you to lead my people” (2 Samuel 7:8)

their opera on. This paves the way for a strengthened economic base of the local community. Also, when we buy products from locally owned businesses, some por on of the proceeds is given by our na onal government to non-profit organiza ons.

Enhance community imagery Wherever we buy foods to eat or dress to wear, the image of the community where we embark on doing these gets enhanced. The uniqueness of the products being peddled in a certain community is almost always associated to the general characteris cs of the said locale and so the enhanced imagery. This is one way of promo ng the tourism business of the community. A clear example is the Island Souvenir clothing shops wherein it sells apparels and accessories that projects a certain province where it has its branch.

The said shop promotes in its designs the dis nct characteris cs of the province.

This enhances its image thus, promo ng whatever viable tourism des na on that province has.

Diminish environmental impact

Investment in local community When we con nually support local businesses, we indirectly put premium to the sustainability of the community since the local businesses where these products came from are owned by people who live at the said locality. These people are less likely to leave town and are more inclined to invest not only for the future of their businesses and also to the community where they belong to.

Buy what you want and not by the dictates of big business There is a large difference when local products sold and those that are being adver sed by big businesses. Local products offer the smallest price, guarantees a broad range of choices and can fit to the needs and wants of customers. And in the longterm, it ensures innova on and stability of price ranges than the products being sold by large businesses.

skilled workers employed shall invest and live in the local community where the said business is opera ng. The favourable situa on shall negate posi ve impacts on the economy and well as the socio-poli cal aspect of the said community. More small businesses shall open and investments coming from the adjacent communi es shall come to the said locality.

The idea here is not only to buy local products, but to inculcate in our minds what this act shall posi vely provide to us and to the community where they are produced.

It is the mind se ng that comes first and a er it goes the buying local products when one can. The conjunc on of the two can bring about a symbolic change in our behavioural system. The total acceptance of suppor ng local products is essen al to the overall economic stability of country and its inhabitants

Persuade local prosperity Local products being sold by locally owned small businesses increases the likelihood that owners and

A very dis nct advantage that locally owned business has over large businesses is that it uses primarily local and indigenous raw materials that require less travel and thus lower emission of pollu on.

Also, these small businesses generally set up shops or outlets within the confines of the community and it means less contribu on to sprawl or the covering of land masses for development, conges on, habitat loss and pollu on.

Create more local jobs As we patronize local products, the demand increases. This creates a very large s mulus for local employment.

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ENTREP 101

Communi-K • vol. 6 no.3

It pays to

Think Rich

By Ma. Belen Sison

W

e all want to be rich, don’t we? Looking at the typical defini on of rich as having plenty, in abundance and of course, wealth, we might conclude that this is expressed in terms of financial gain that can be seen with the house and lot that we own, the car that we drive, the appliances and equipment that gives us pleasure, the signature clothing that we wear and other similar things that give us some form of temporal sa sfac on. Beyond this defini on, being rich can be a state of one’s mind specifically in terms of outlook regardless of the situa on that we are in.

Thinking rich has been a common byword in the academe, in the corporate set-up and even among entrepreneurs.

This mindset is something that needs support star ng from the core which is our own family down to our peers. It entails the ability to differen ate a mindset of rich and a mindset of poor.

Rich people believe “I create my life.”

Poor people believe “Life happens to me.”

This is called “playing the vic m.” The poor mindset person is very good at it. The rich are never vic ms. They control their own des ny, and stuff that happens along the way are merely opportuni es to take advantage of or obstacles to overcome.

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Rich people think big. Poor people think small.

Thinking big starts with having a dream, and subsequently taking ac ons that lead to big results.

Rich people focus on opportuni es.

Poor people focus on obstacles.

People tend to easily start a business/ job, work on it for a short me, then suddenly makes a halt at the slightest snag caused by external factors.

Eventually, these persons are out of business/job. If we’re thinking rich, we don’t allow an obstacle to stop us.

Rather, we ask ourselves, “How will I make it work?” Successful people look at obstacles as opportuni es but not

necessarily overlook the dangers that go with it.

Rich people admire and associate themselves with rich and successful people. Poor people resent and disassociate themselves with rich and successful people.

There is nothing wrong with being “rich” but what is more important is being able to think rich without oppressing people. Rich people did not become rich overnight. They admired successful people and even learned from the challenges that they have gone through.

Rich people act in spite of fear.

Poor people let fear stop them.

ENTREP 101

“I chose you to lead my people” (2 Samuel 7:8)

Fear is the number one cause of failure.

In fact, the majority of people will take a look at an opportunity, but never take ac on to do it because they fear they might fail. As result, they never succeed at anything. Remember, courage is not the lack of fear. It’s ac ng despite of fear, and this is something that a person with a rich mindset excels at.

Rich people constantly learn and grow.

Poor people think they already know.

In learning, there is no satura on point.

We can learn from both formal and informal schooling. Learning comes in three ways – learn new ideas/things, re-learn what we’ve learned before and unlearn ideas/things that we thought before as good.

We come across so many things daily but at the end of the day, there is s ll a need to have a balance of everything to achieve richness in life. According to T. Harv Eker in his book “Peak Poten als,” we need to work on ourselves and examine

our minds. The best way to do it is to discover our limita ons that we might have imposed on ourselves since childhood.

These limita ons have been programmed in our minds that limits the ac ons. Let’s try to re-program our mindsets with beliefs that can be affirmed and visualized. This helps us turn our nega ve thoughts to something posi ve.

Prayer is the biggest weapon that we can bring with us. Con nue to build our mindsets with posi ve thinking. Things might not turn out as expected but failure is not an op on in life; there is only delayed success.

Along the way, we may encounter difficul es we have learned from situa ons you have looked at these difficul es as challenges and opportuni es to move forward. Bear in mind that anyone can do it, but we can do it be er than others.

From building a posi ve mindset, we may con nue to have an a tude of gra tude. Start to be grateful for the things that happened in the past and how

we are able to face the present, and look forward to the future with op mism. In looking forward, lets be clear of what we want in life and plan carefully. We can control our des nies and define our own future, we have to believe in ourselves, but foremostly, we have to increase our faith in God. James 2:17 states, “Faith without ac on is dead.”

Thinking rich in its en rety is not the be all and end all because it is s ll God who is in control of our lives. Can we s ll have the “riches” without foregoing our spiritual belief? Yes, we can have both.

We can live fulfilling spiritual lives and be financially successful at the same me.

A er all, it is what we are born for. “But son, do not forget my teaching, but keep my commandments in your heart, for they will prolong your life many years and bring you prosperity” (Proverbs 3:1-2 NIV) References: T. Harv Eker. Peak Poten als David Michael Ferruolo.

Connec ng with the Bliss of Life h p://www. richdudecomics.com

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Leader’s Edge

Communi-K • vol. 6 no.3

Marketplace and Ministry

By Connie Parantar

H

make God known throughout the ave you ever world, and this means including wondered why we call our jobs in KMBI the marketplace.

The marketplace, a combina on of a ministry? What is a ministry, business, educa on, and government, is anyway? Some mes we think of any sphere considered as a place where ministry as church-like ac vi es ideas, thoughts, ar s c crea ons, and other elements compete for recogni on. such as leading praise and Today, about 97% of Chris an’s will work worship singing or facilita ng in the marketplace compared to the 3% Bible studies. But doing ministry that will be voca onal priests, pastors is not limited to those ac vi es. or missionaries. Calling themselves “marketplace Chris ans,” they use their When we look at the meaning secular careers as educators, lawyers, of the word, it simply means doctors, farmers, entrepreneurs, the act of serving. This could be accountants, development workers to through crea ve and performing “spread the Word” to mainstream society.

This is through integra ng their faith with arts, community service and their careers. This issue goes beyond outreach, and also sacramental being gracious with co-workers and fair with employees, but finding something service. For Chris ans, this that is inherently godly about the work service or ministry is done with itself and bring to bear values based on a purpose. And this purpose is to their faith. Like for example, ar sts being carry forth Christ’s mission, i.e. to truthful about the commercials they make,

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microentrepreneurs showing honest scales, or employees serving diligently during work hours. In so doing, these Chris ans are impac ng posi vely.

Former Na onal Director of Philippine Navigators Ministry, Dr. Phillip C. Flores once said, “For you to make impact in your own world, let your work be an expression of your service to God”. The act of serving for a greater purpose is hence not confined or limited by the kind of occupa on that one has. Yet on the contrary, that occupa on, whether a white or blue collar job, must be the means to fulfill that purpose. Managers, supervisors and assistants can truly make Christ known through their line of work. This can be through the words that are u ered, deeds shown, or values professed. In his book “Lambs among Wolves,” Bob Briner writes, “Our job as Chris ans is not to take over the various communi es in our world; it is, however, to penetrate them, to be present, to provide God’s alterna ve to evil, to demonstrate Christ’s relevance there.”

It is unfortunate, however, that many

Leader’s Edge

“I chose you to lead my people” (2 Samuel 7:8)

A Quick Look:

Social Performance Management

By Cindy Escobin

Chris ans feel like second class ci zens when compared to those who serve in a church or missionary context. They o en fail to rise to their God appointed posi on because they are derided as “untrained and uneducated.” This is not a new thing.

The disciples Peter and John would say, “Welcome to the club.”

Now there’s no wonder why we call our jobs ministry. By being Chris ans in the marketplace, specifically in the microfinance industry, we go beyond serving the poor by affec ng and influencing them for Christ. Regardless of posi on, we are doing a great task for the Lord. We have a very strategic posi on as MTM (More Than Microfinance) players to influence our fellowmen to live life to the fullest as what God has so designed.

Hence, let us not allow ourselves to be disqualified in serving God on the account of our occupa on. Keep to mind this quote, “Do not let your occupa on block your des ny but instead let your des ny shape your occupa on by turning it into your ministry.” Also, let us remind ourselves that there is a purpose and a des ny for us here in KMBI. We are part of a movement designed by God to bring His kingdom to the heart of the city because the God of ministry is also the God of business!

Reference: Silvoso, Ed, Annointed for Business Sarris, C. (1999). Online Thoughts. Retrieved November 2009, from Online Thoughts Revealing the Character of God: h p://www.onlinethoughts.com/Quick_Thoughts/ marketplace_chris anity.htm Tapia, A. (n.d.). God’s World: Reflec ons. Retrieved November 2009, from Urbana.Org: h p://www.urbana. org/whole-life-stewardship-reflec ons/beyond-theballot-box-marketplace-chris ans-set-sights-on-secularprofessions The American Heritage Dic onary of the English Language, F. E. (2009). Dic onary. Retrieved November 2009, from Dic onary.com, An Ask.com Service: h p://dic onary. reference.com/browse/ministry

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he desire to help the world’s vulnerable or the poor communi es is the primary reason for the birth of the microfinance industry.

However in the passing of years, with the increase in compe on, commercializa on, social investment and calls for transparency, some within the MF industry have diverted too far towards the commercial side making most microfinance ins tu ons (MFIs) to become detached from their social roots which is to alleviate the condi on of the poor.

Mission dri , which is becoming a phenomenon, happens as they move away from serving their poorer clients in pursuit of commercial viability.

With the emergence of SPM or Social Performance Management as a tool to help microfinance, these devia ons from the social goals can be prevented. This is done through monitoring of the dual mission of an MFI which include not just the Financial Sustainability but also the provision of banking services to micro-enterprises and low-income families and other services to alleviate their condi on.

Social Performance from the interna onal defini on is defined as the effec ve transla on of a microfinance ins tu on’s mission into prac ce in line with commonly accepted social values that relate but not limited to: • Reaching poorer and excluded clients; • Improving the lives of clients and their families; and • Widening the range of opportuni es for communi es.

SPM is a prac cal approach for MFIs to achieve their social goals and be socially responsible. It has three components: • Se ng clear social objec ves and crea ng a deliberate strategy to achieve them; • Monitoring and assessing progress towards achieving social objec ves; and • Using social performance informa on to improve overall organiza onal performance

Thus, the framework used for achieving social objec ves would be as follows: • INTENT and DESIGN: What does the MFI seek to achieve? How are services and performance objec ves designed towards this end?

• ACTIVITIES: How will services be provided to target clients through a specific organiza onal structure, and be designed to reach organiza onal objec ves?

• OUTPUT: What services are delivered and to whom (breadth and depth of outreach)? What is the quality of service? Are they sustainable?

• OUTCOME/IMPACT: What changes result from the services provided, e.g. business growth, increased income, and new skills? What are the longer term sustainable changes produced by these outcomes, e.g. poverty reduc on? What are the unintended consequences?

The ul mate purpose of SPM is to be er serve clients. By monitoring progress towards social objec ves, an MFI will know where it stands and where it has to go References: Social Performance Management in MicrofinanceGuidelines. Imp-act with collabora on with Mcrofinance Centre. Ins tute of Development Studies at the University of Sussex Brighton BNE 9RE, UK

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MF Index

Communi-K • vol. 6 no.3

Foster Spirit to Maintain Success The Role of the Manager in the Enhanced Branch Monitoring System

By Enrique Maca

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ll too frequently, unsuccessful branch opera ons are caused by either over-managed or under led workforce. Effec ve and quality implementa on requires leadership - people to set direc ons for the organiza on or group, share vision, and then translate the vision into reality.

Under the enhanced branch monitoring system (EBMS), such implementa on is the over-all responsibility of the branch manager, not the program assistants (PA). Contrary to popular understanding, the PAs are but the distribu on channel toward maximum produc vity. It is the manager who sets the culture, the vision and goals of the organiza on or group. Hence, the manager must live up to the leadership required of such system.

One of the branch manager’s roles is to preside over the ni y-gri y processes of opera ons. He must not merely organize work and wait for results. He must scru nize if processes have been implemented properly based on gathered facts from the field. This includes ra o analysis, highs and lows of performance indicators, and feedback from customers.

Yes, you heard it right. The manager should either formally or informally conduct focused group discussions with members or staff on a regular basis.

He must dig into the details, work the problem from day to day, and lead by example, not tle or posi on.

The Four As approach in conduc ng performance gap analysis is also very helpful in evalua ng the opera ons.

This approach aims to address problems

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appropriately and thereby improve branch performance. Since branches have varying dynamics, it is important to deal with challenges based on iden fied performance gaps and solve these with appropriate measures. If the branch performance does not improve, then solu ons applied are inappropriate. With this, the manager should diagnose further using the approach.

However, the work does not end here. A er the tedious diagnosis and planning, the manager and his team must act using the solu ons set. It is observed that many managers do not care so much on the outcome. Hence they act on solving problems at snail’s pace, especially regarding financial viability of the branches. The manager must not procras nate. Many think me is on their side, but later on they find out, everything’s too late. Managing me is a skill that the manager’s should master. He can do this by not just racing with me, but he must take the me to step back, and think about where his branch performance

is at the present, where he wants it to go, what improvement measures should be taken and then measure the progress of the strategies on a regular basis.

Now, problems are solvable. The manager must not find fault on his subordinates but must find remedy. The issue here is not on the problem but on how he handles problems. Other leaders are being directed by emo ons, anger, worry and doubt that in the end lead to the worsening of issues. For example, some mes a manager gets irritated when his field staff does not perform well, he just reacts to a par cular situa on instead of se ng interven ons. He must therefore focus on addressing the problem and not put the blame on the staff. To empower the subordinate, the manager can guide the staff to create interven ons or solu ons to the problem.

The success and failure of the branch opera ons lies heavily on the manager. In taking charge, he must always ask wisdom from God who always gives us strength to lead for His glory!

“I chose you to lead my people” (2 Samuel 7:8)

Blessed beyond...from p.9

husbands have jobs to cover the expenses of the family during those hard mes,” added Dalton.

That me it dawned upon him how blessed he was beyond measure for having such people in his fold.

Dalton explained that perhaps his good rela onship with them has helped develop that resoluteness in them. “I absolutely knew none of these members when I first met them. But over me, I got their trust.

I kept on reminding them that the trust I give them is not from me, but from the en re organiza on. Maybe they do not want to lose that trust,” Dalton explained.

As program assistant, he is to take good care of his members. “They should

not be treated as ordinary clients but as friends,” he quipped. And what he does to build trust is to constantly communicate with them.

“The job is not about collec ng payments, but of showing concern. Once program members feel the sincerity, they will not let us down. If we will not have that good founda on, these rela onships that we’ve worked on will be easily destroyed,” he added.

Dalton reaped peace and gratefulness in the midst of these difficult mes. He has maintained his good standing by having ten centers without por olio at risk. Now, members of two of his centers have fully recovered, while one is s ll in the process of rehabilita on. “I con nually mo vate all of them to keep on with life and living, whether there’s calamity or not. I always remind them to keep on praying

and that God always provides,” he said.

From the members and from the tragedy, Dalton learned that it is be er to see difficult situa ons in a posi ve light, to uphold sincerity above despair, to be thankful to God who has guided him to perservere over arduous days of winning the members’ hearts, and to understand that the pe y things most people go on worrying about pale in comparsion to the wondrous and infinitely rich life that God has made

We’d love to hear from you!

Please take a moment to give us your comments and sugges ons on ar cles presented on this issue.

You may email: leagatpandan@kmbi.org.ph or visit our official website at www.kmbi.org.ph or our other web accounts at the following:

h p://kmbiorg.mul ply.com/

h p://twi er.com/kmbi_org

kmbiorg

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Updates

Communi-K • vol. 6 no.3

First phase of CBEDP slated for comple on before year ends

By Calvin Perez

headquarters wherein it shall also serve as a holding area from where the dispersal of chickens to iden fied beneficiaries shall be held.

Moreover, they said quarter shall store per nent documents of all of its officers The rehabilitated demo farm site of the FAITH Gardening Association. The small nipa and member/ hut serves as the resting area of care taker and for storage of files of its members. beneficiaries for consolida on and he first phase of Communitybasis for monitoring and evalua on Based Enterprise Development Another enterprise, the Carpenter Project (CBEDP) implementa on Hill Plant Propaga on and Nursery at Carpenter Hill, Koronadal City, South Management, enhanced its area by Cotabato is target to finish by October this conduc ng seed bed prepara ons and year. CBEDP is on-going for comple on of filling up vacant space with cacao, coconut the process iden fied on the first phase of and coffee seedlings. The said enterprise the project proposal, i.e. rehabilita on and also mounted its own water system to expansion of the demonstra on sites and cater to the daily maintenance needs of its construc on of display centers provided enterprise as well as the others occupying for the beneficiaries of the said program. it. The FAITH or Food Always In The Home Currently, the Kabalikat para sa Maunlad Gardening Associa on has rehabilitated na Buhay, Inc. (KMBI) spent around its showcase area by conduc ng plowing, Php555,000 for the said project. cul va on and other gardening ac vi es.

The said enterprise also constructed a small Rehabilita on and Expansion of hut to serve as res ng area and storage Demonstra on Site of files of its members. The Vermi Culture Part of the first phase of the project and Compost Produc on Associa on have is the rehabilita on and expansions rehabilitated its showcase area by periodic work at the demonstra on site located cleaning and also maintained a handful of at Guadalupe, Carpenter Hill, Koronadal African night crawler in its worm bins.

City, South Cotabato. The Carpenter Hill Na ve Chicken Growers Associa on have Construc on of Display Centers expanded its area by construc ng its Two display centers were strategically

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constructed near the Carpenter Hill Elementary School along Na onal Highway and Brgy. Sto. Niño in Koronadal City. Display centers will be used by the beneficiaries to showcase their products and skills. Currently, there are five local enterprises housed in the display center along Na onal highway, i.e. Carpenter Hill Alterna ve Therapeu c Massage Associa on, Food Always In the Home (FAITH) Gardening Associa on, Carpenter Hill Waste Recycling Associa on, Carpenter Hill Beau cian Associa on, and the BCH Integrated Floral Entrepreneurs.

On the other hand, Carpenter Hill Talipapa Associa on has just started the construc on of the display center in Brgy.

Sto. Niño. It was noted that the said enterprise put emphasis on the selec on of a site near a densely populated subdivision so as to a ract a large segment of market or consumers who will patronize various goods to be put up by the said enterprise.

Other ac vi es The Carpenter Hill Alterna ve Therapeu c Massage Associa on embarked on a one day licensure review to eleven of its members in an effort to prepare them to take the NC2 Licensure Examina ons and make them legal prac oners of their cra . The move is necessary to empower the members since they can use the skills that they have acquired during the training caravan to earn a decent living and make them compe ve in the industry. Moreover, they shall also serve as trainers to other interested beneficiaries of the community. Results of the said examina on shall be revealed in the next issue of this publica on

Updates

“I chose you to lead my people” (2 Samuel 7:8)

ISO Cer fica on envisioned to materialize by 2010

By Maylanie Apawan

A

ll efforts for the cer fica on of KMBI to ISO on January 2010 are in full swing.

Currently, as part of KMBI’s prepara on for cer fica on under ISO 9001:2008, the Quality Management Department spearheads the training of head office personnel coming from Training, Human Resource Development and Administra on, Opera ons, Audit, Administra on, Finance and Accoun ng (FAD)and Resource Mobiliza on and Communica ons (RM&C) department on Quality Management Systems Internal Audit (QMSIAT) as well as the documenta on of KMBI processes, procedures and policies in me for the scheduled independent audit for ISO compliance before the year ends.

Quality Management Systems Internal Audit Training (QMSIAT) is a course that is intended for professionals aiming to build on the knowledge of ISO 9001 and evaluate the effec veness of the quality management system in the organiza on.

It is an intensive three-day course that teaches the principles and prac ces of effec ve quality management systems process audits in accordance with the ISO 9001 series of standards. The training guided the par cipants in the internal audit process, from planning an audit to repor ng on audit results and following up on correc ve ac ons. KMBI hopes to develop a pool of internal auditors who will be adept on the requirements of ISO 9001:2008.

Also in prepara on to the Documenta on Audit of all processes, procedures and policies implemented by the organiza on, KMBI Organiza onal Manual and Branch Opera ng Manual

have already been updated to include all policies, procedures and processes not yet incorporated in the 2006 edi on of these documents. All concerned departments (Audit, HR, Admin, Opera ons and FAD) have updated their respec ve processes in line with the requirements of ISO 9001:2008. A Summary of Quality Manual has also been dra ed outlining the quality policy statement, quality objec ves and the general principles of quality to be adhered in all areas of KMBI opera on. Together with the Organiza onal Manual and Branch Opera ng Manual, these documents will be subjected to independent audit to be conducted by TUV Rheinland, one of the respected ISO accredited cer fying body in the Philippines.

Orienta on of the forthcoming ISO cer fied audit will be cascaded to the branches of Daet, West Avenue, Metro Davao II, Kidapawan and Koronadal. The orienta on of these branches will be conducted by QM department beginning the last quarter of 2009 in prepara on to the scheduled independent audit which covers all aspects of KMBI opera ons in these areas.

The cer fica on of the head office and the ini al five KMBI branches under ISO 9001:2008 will prelude the cer fica on of the projected 61 KMBI branches comes 2010. KMBI cer fica on under ISO 9001:2008 is indeed a realiza on of one of the organiza on core values of con nuously achieving excellence in all our works and pursuits.

ISO 9001:2008 are set of interna onally recognized principles governing quality management standard.

In line with the purpose of con nuously improving customer sa sfac on, service

and customer oriented industries in the Philippines are now standardizing the quality of services and products being offered to its clientele. Be it in the industry of banking, manufacturing, educa on among others, ISO 9001:2008 finds applica on in ensuring that the processes, procedures, and policies of these industries are in tuned with an interna onally recognized standard and quality. Accredita on by an interna onally recognized independent cer fying body, such as the Interna onal Organiza on for Standard will vouch the quality of services and programs of being implemented by an accredited organiza on to be at par with what is interna onally recognized standard and requirements.

In microfinance sector, specifically the MFI providers in the Philippines, are not immune to the current interna onal trend. A number of MFI providers in the Philippines have responded to the current call for ISO Cer fica on. KMBI, as one of the leaders in providing quality and holis c microfinance services in the Philippines, has responded to this challenge. Beginning this year, KMBI has outlined a year-long plan for ISO Cer fica on of its ini al branches and head office opera on. The move will put the organiza on in the advantage of being one of the pioneers in the MFI industry in the Philippines to be ISO cer fied. And thus, vouch the highest quality of services and products we are offering to our clients and partners

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Organizational Performance

Communi-K • vol. 6 no.3 3rd Quarter 2009

Indicators

Efficiency

Loan Ac vity

Cost per Unit Lent (USD)*

0.0042

Client Outreach

171,977

Cost per Loan Made (USD)*

24.32

Loan Por olio

P459.96M

Financial Self-Sufficiency

98.52%

Value of Loans Made

P1,169.14B

Opera onal Self-Sufficiency

106.68%

Por olio-at-Risk

11.16%

Ave. No. of Client per PA

245

MF Opera ons

975

No. of Loan Made

203,844

Support Group

92

Number of Staff

* USD 1.00 is equivalent to Php47.700 as of October 30, 2009

KMBI launches the HOPE FUND campaign

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he recent tragedies brought about by Typhoon Ondoy and Typhoon Pepeng both on the lives and welfare of KMBI’s staff and clients, as well as its accompanying effect on its opera on surfaced ques ons of our readiness to handle such large scale incidences. With more than 12,000 program members and staff directly affected by the recent events, we ask ourselves, how do we act on such occasions, and how do we mi gate losses both in lives, property and investments? How do we do it in a consistent developmental approach as to avoid dependency and mismanagement of resources?

From such gut wrenching situa ons, the HOPE FUND was established, primarily with the sole inten on of immediately responding in mes of calami es. It aims to provide immediate relief services to affected program members and staff (since the primary need is survival and damage mi ga on for the first week), and a long term rehabilita on program, which aims to assist microentrepreneurs in restructu ng their current loans and restart their businesses.

The HOPE FUND is a standby mechanism both funded by a por on of our Transforma on budget (or 10% of the Transforma on alloca on, which comes from 10% of the gross annual income), and grants and dona ons by partners and friends.

HOPE Relief ini a ves shall be taken from the Transforma on alloca on, while HOPE Rehabilita on shall be used to restructure exis ng loans of affected members and allow them to avail of regular loans.

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Among the supporters of the campaign include the Alliance of Philippine Partners in Enterprise Development (APPEND), Opportunity Interna onal Germany and Grameen Founda on. We are s ll looking for donors and partners in ensuring that we are prepared and able to respond in cases like typhoons, landslides, and fires wherein KMBI branches operate.

Your dona ons shall be treated with utmost sense of stewardship. Corresponding official receipt, cer ficates of dona on for corpora ons (for tax credit purposes), u liza on reports shall be provided for donors. You can deposit yor cash or cheque dona ons at the account listed below. For cheque dona ons, kindly write KABALIKAT PARA SA MAUNLAD NA BUHAY, INC. as payee. A er deposi ng the cash or cheque, please inform us of the pledge at aldyduque@kmbi.org.ph.

FOR PESO DONATIONS: Account Name: Kabalikat para sa Maunlad na Buhay, Inc. Bank: Banco de Oro (BDO) Branch: SM Super Center Valenzuela City Swi Code: BNORPHMM Savings Account No.: 209019913-6 FOR DOLLAR DONATIONS: Account Name: Kabalikat para sa Maunlad na Buhay, Inc. Bank: Bank of the Philippine Islands (BPI) Branch: Marulas, Valenzuela City Swi Code: BOPIPHMM Savings Account No.: 0194009917

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”

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