Communi-k 2nd Quarter 2008

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KMBI

communi-k April - June 2008 • VOL 5 NO 2

Features Leader’s Edge

Affect & Influence - Multiplying Transformation

Organizational News EISTOP to Phase Out Spreadsheet by 2010

CBEDP Update

CBEDP Empowering Community

Understanding

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 1


inside ck

April - June 2008

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VOL 5

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COVER STORY 9 Understanding ENTREP

“Understanding the concepts and principles of what we do is important in doing things currently.”

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NEWS l 4 - 8 • Branch News Briefs • KMBI expands reach to Pangasinan, Cebu • BOT and managers increase efficiency in financial projection • BOT approves Adopt a Branch • Microfinanza appraises KMBI • Clients’ kids receive scholarship • EISTOP to phase out spreadsheets by 2010 • Six branches hold Summer Saya • KMBI to implement mega branch system

FEATURE l 10 - 13 • Valuing Partnership • Affect & Influence Multiplying Transformation • Meeting People at their Need: Understanding Social Responsibility 2 | Communi-K |

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16 The Executive Note

Comfort becomes an enemy when people reach the peak...it is the peak that is the most difficult terrain.

ENTREP 101

The World of Entrepreneurship MF Index l 14 - 15 The Kidapawan Experience Adherence to the Basics

UPDATES CBEDP Concludes its Second Year Organizational Performance l 20

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editorial board Edgardo S. Mercedes Editorial Adviser

Rizaldy R. Duque Editor-in-Chief

Kris Joy T. Guimary Editor

Lea J. Gatpandan Assistant Editor

Maylanie D. Apawan Calvin V. Perez Contributors

Hector H. 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

There is nothing more rewarding than to receive feedback from people in the community who have recognized our contributions in transforming their lives and community. I am proud and blessed with the achievements of the organization this quarter, its ability to move away from complacency and continuously aim for relevance in this God-given field. Our second quarter has been fruitful despite several challenges. We were able to expand in Northern Luzon and Visayas areas with five new branches. We were also able to maintain good relationship with our partners and have sustained our CommunityBased Enterprise Development Project in Koronadal City, South Cotabato. The accountability groups and devotion sessions, which is our spiritual support, have also been installed from the Board of Trustees down to the branch staff. This support is further strengthened by the national leadership camp held in Cebu City and the birth of the Adopt a Branch program. Together with this is an institutional evaluation, wherein every portion that constitutes this organization will be assessed for improvement and continuous enhancement of program, organization, and structure. Another milestone in our history is the conceptualization of ENTREP (Entrepreneurial Nurturing through Transformation, Re-formation and Empowerment Program). ENTREP, has a different approach in

terms of strategy and impact compared to the previous SUCCESS program. It enhances the integration of Spiritual, Economic, Environmental, and Social interventions to proactively shape target groups according to our mandate. The organization is continuously refined through the challenges brought by the changing environment. We have already taken steps through the achievements I mentioned, but we should not stop here. We may be on our peaks but being at the peak does not mean that innovation and learning should cease. Comfort becomes an enemy when people reach the peak, but let us remember that the peak is the most difficult terrain. When you are at the peak, you have two choices either fall down or stay on top. But to stay on top, we should exercise balance. To balance, we should have the HEART of a mother that takes good care of our clients and staff; the MIND of a snake, which is very attentive and wise; and a HAND that innovates to maximize potentials and enhance talents. With poverty alleviation and holistic transformation at the center of our service to God, we cannot afford to go down from the peak. Instead we should build more milestones until we reach another peak...For His Glory! Edgardo “Egay” Mercedes has been the executive director of KMBI since July 2006. He has served the organization for a total of 13 years in different capacities including being a program assistant.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 3


Branch

News Briefs KMBI staff develops sportsmanship

Like the Olympics in China, KMBI staff conducted their own friendship games and developed good sportsmanship. Lipa and Batangas branch face-off in an exciting duckpin bowling game at the Zenaida’s Bowlodrome in Batangas City while basketball enthusiasts of National Capital Region (NCR), Bulacan and 4HG Head Office had a match-up at the Pag-asa covered court in Valenzuela. Four teams from Lipa and Batangas branches participated in a three round robin games. Unit B of Batangas branch bagged the championship. Special awards were given to Noel Laquian of Lipa branch for garnering the highest score in Men’s division; Beth Estoesta of Batangas branch for Women’s division; and Fortunata Benamer of Lipa branch for striking the highest individual scoring. On the other hand, the basketball tournament matched four teams. After the exciting games, fourth place was awarded to Bulacan team, third place to 4HG Head Office, NCR 2 for the second place and NCR 1 for the championship. All teams went home with their trophies. Further, Ryan Mallari from NCR 2 team was awarded as the Most Valuable Player. Jason Mendiola and Alvin Ofemia of NCR 1, Ryan Mallari of NCR 2, James Marcelo of 4HG and Jesus Laurencio of Bulacan were hailed as the Mythical Five and awarded with medals. Due to the game’s success, the organizers proposed to make it an annual activity of KMBI. They plan to invite CALABARZON 1 staff for the second season. Lipa and Batangas branches also affirmed to continue the activity next year, said Ferdinand Baptista, Batangas branch manager.

Lucena cleans Pagbilao coastal area Lucena branch took the initiative of promoting clean environment by 4 | Communi-K |

organizing a cleanliness drive which benefited the residents of the Coastal Area of Polo, Pagbilao, Quezon. Some 90 program members from three barangays volunteered to serve through the said activity. Cleaning the coastal area in Polo, Pagbilao was strategically chosen by the branch to impart the importance of cleaning and protecting the environment to the program members and residents of the shoreline. Members were divided into three groups and assigned with a location in the shoreline to clean. They picked up plastic waste and segregated the biodegradable and non-biodegradable items for recycling. A program member commented that of all microfinance organizations in the area, only KMBI initiated such activity. The activity ended with a lunch fellowship, and praise and worship singing.

Lipa branch holds team building

Lipa Branch paused for a moment for enjoyment, fun and adventure through a team building activity with the theme “Inspire others to work together as a team – strive for a common objective.” The activity was highlighted by different group games and exhortation. The objectives were to enhance the relationship of the branch and develop a winning team in realizing their ultimate goal as they work together, resolve differences between members, and get better support from team members. “These activities taught us to become more patient, to strategize better, and to strengthen ownership of KMBI’s vision,” said Luradel Dador, branch manager.

Sta. Cruz goes “Hataw at Kagandahan”

Sta.Cruz branch organized a dance and

Program members and staff while cleaning the Polo coastal area.

beauty contest for program members dubbed as “Hataw at Kagandahan 2008” (Filipino terms for energy and beauty) at the Laguna State Polytechnic University. Some 12 candidates competed for Ms. KMBI 2008, while members of seven centers contended for the dance contest. Program member Irene Pajar was crowned Ms. KMBI. Center SCB-A542 bagged the grand prize for the dance contest.

ERRATUM In the recently released postpublication of KMBI LEAD Camp, it was mistakenly written that NICOLAS DELOS SANTOS is a program assistant of Metro Manila South 2. It should have been “Program Unit Supervisor of Metro Manila South 1.”


Organizational News

KMBI expands reach to Pangasinan, Cebu

Pangasinan staff during the branch operation training in July.

In September and October this year, KMBI will inaugurate its new branches in Pangasinan and Cebu provinces to serve more microentrepreneurs. KMBI allotted almost P153M for the expansion of two areas. covered lectures on branch operations, Three branches will be opened in social preparation, simulation and Pangasinan, particularly in the cities of reinforcements to prepare the staff for Urdaneta, San Carlos, and Dagupan, deployment. Renovations of branch while in Cebu area, Cebu South and offices were also done following the Mandaue will be established. Pangasinan standard structure of the organization’s area will be managed by former branches. Koronadal branch manager Rhanny Further, branches of Pangasinan Barrera while Cebu area manager will be and Cebu are expected to strategically the former Davao area manager Hazel transform into mega branches. “This Laurente. For Urdaneta, San Carlos depends on their performance for the and Dagupan branches, managers are first six months of operation,” confirmed former junior auditor Jasper Nazarro, Carmela Porras and Vencent Abraham, former Compostella Valley program operation managers. With this kind of unit supervisor Antonette Lapnite, set-up, a satellite office will be established and former Tacurong program unit for each branch. “More and more supervisor Marlon Timbal, respectively. microentrepreneurs will be catered by For Cebu South and Mandaue branches, this, not mentioning the employment managers are former Kidapawan program unit supervisor Abelardo Tejada opportunities that KMBI can provide for the locals of the said areas once the and former Metro Davao 2 program branches become viable,” Porras added. unit supervisor Jennifer Gonzales, Transforming of branches respectively. All the new branches will into mega branch is strengthened by be inaugurated in September. the environmental study conducted by The training unit for their operations managers along with the part, equipped the newly hired staff expansion team. with necessary knowledge and skills through a series of training. The training

BOT and managers increase efficiency in financial projection A member of the Board of Trustee and four senior managers attended a training seminar to increase efficiency in creating financial projections from March 31 to April 4 at the Bali Mandira Hotel, Bali, Indonesia. Entitled “Business Planning with Microfin,” the training seminar introduced the Microfin software version 4.04 beta which uses Microsoft excel as platform. Board of trustee Damiana Exiomo, executive director Edgardo Mercedes, finance and accounting manager Sancho Montaos II, and administration manager Annalie Concepcion attended the said training. Chuck Waterfield, developer of Microfin software and resource speaker for the topics Business Planning Elements and Financial Modeling Framework, discussed the effective interest computations, the need of transparency among microfinance institutions and how microfin software can help in preparing a business plan with five-year financial projections. Moreover, Waterfield mentioned that the software is designed to serve as an integrated part of a comprehensive business planning framework, which addresses both strategic and operational issues. “Microfin’s five-year financial projections serve as a key part of the operational planning process where it moves step-by-step covering in detail the key elements of designing financial products and services, establishing marketing channels and projecting activity levels, determining institutional resources and capacity, developing a financing strategy, and analyzing projected financial statements and ratios,” said Waterfield. Montaos reported that the microfin software can be used for KMBI’s business planning since it minimizes the time consumed in making projections and provides more time in the formulation of assumptions, product design and pricing to be made in doing the business plan and financial budget.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 5


Organizational News

BOT approves Adopt a Branch Head office staff will adopt branches this year, a step forward for open communication and unity of operations, head office and program members. In May, the board of trustees approved the “Adopt a Branch Program” proposed by the management which encourages the head office (HO) managers and other leaders to promote unity through quick information dissemination, ensuring proper understanding of holistic transformation, policies and system, and provide nonoperation perspectives to the branch in conducting demand-driven nonfinancial services for the clients. HO representatives will join branch activities like devotions, planning, capacity

to unify the understanding of holistic transformation framework, ENTREP concepts and principles inclined to produce seamless system and appropriate policies, consistent branch operational and financial performances, more matured and purpose-driven leaders, and effective implementers in the field. Based on the approved proposal, all HO departments shall adopt a branch except for the Audit Department to preserve their independence, objectivity and integrity of opinion. The branch to be adopted by the department must have been consulted with the concerned operations manager who acts as the control officer. Further, the HO representatives must secure approval

building and others in a weekly or monthly basis. With these interactions, the program serves as a form of discipleship – a biblical strategy to affect and influence people. The program also aims to eliminate if not remove the virtual divide between the HO and branches through the active participation of the HO leaders in the branches. It is expected that by bringing the HO to the branches, it will not only bridge the divide and eventually eliminate it, but also strengthen the facilitation of holistic transformation. Moreover, the Adopt a Branch program will pave way to the documentation of positive changes and discovery of best practices in the branches. Lastly, this program seeks

BOT/17

Microfinanza appraises KMBI

MFR representatives attend center meeting in Calamba branch.

Microfinanza Rating (MFR) together with Opportunity International (OI) Network visited KMBI to appraise the institution

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of its accreditation to the network. The accreditation happens once every three years as part of the accountability of the OI

network to KMBI to ensure that the organization’s structure, governance and business plans are properly implemented. MFR representatives Christian Banno, regional manager for newly independent state countries, and Marco Boa, senior financial analyst together with OI network representatives Lynn Exton, vice president for standard and accreditation; and Timothy Head, management information and performance report manager, met and interviewed members of the management committee and some other staff. Likewise, they visited Tandang Sora, Calamba and Biñan branches to observe the actual set up of operations and conduct validation interviews. “The first time that the organization underwent the said accreditation was in 2005 and it expired Microfinanza/17


Organizational News

EISTOP to phase out spreadsheets by 2010 In 2010, KMBI accountants will bid goodbye to excel spreadsheets and turn to web-based automated information and monitoring system also known as EISTOP or Enhanced Information System towards Optimum Productivity. This information system (IS) solution intends to converge the head office and branches in realtime situation to hasten reporting and recording and enable on-line monitoring. The project, based on KMBI’s business plan, shall be implemented this year. It entails a budget of Php11 million for the facilitation and implementation. “EISTOP is the institution’s attempt in bringing about a more relevant information system that will enable the institution to administer effectively and efficiently daily transactions at the head office and in the branch level,” said Sonny Montaos, finance and accounting manager. For the past 21 years, KMBI staff uses a manual system for safekeeping of pertinent

documents and reporting process which include encoding and consolidation of data, generating reports, sending of documents and storing files. The current system is found to be costly and time consuming which affects the productivity and efficiency of the departments and branches. “As the project name implies, the proposed system will provide optimum productivity. This means less error in the management information system (MIS) since there will be less human interventions. The system will consolidate data, strengthen control system, ease access to information processes which require large amount of time. With the project, lesser time will be used for the MIS, while more time in facilitating holistic transformation,” added Montaos. With current proposed IS solution, the recording, reporting and safekeeping of files will be much easier. EISTOP can be described as a “virtual huge filing cabinet or umbrella”

said Joel Cruz, MIS assistant. “The system allows authorized personnel of departments and branches to upload and update data, generate reports, retrieve branch and clients information, monitor performances and other operations all in real time scenario,” Cruz added. Through EISTOP, KMBI expects to have more informed decisions, flexible and better reporting, lower operating costs, enhanced control mechanism, and efficient operations. Asked about the status of the project, Montaos said, “currently, the proposal is subject for the approval of the board of trustees, while timeline is already defined by the management committee.” Coordination with possible consultants and technology providers were also made, he added.

Clients’ kids receive scholarship Children of KMBI program members namely Mary Joyce Madla and Marc Louie Moreno from Calamba branch, and Jonash Reyes from Lipa branch, were awarded with scholarship grant by Gordon V. and Helen C. Smith Foundation in May. Alliance for Philippine Partners for Enterprise Development, Inc. (APPEND) program facilitator of the scholarship assisted the three scholars during enrollment for the school year 2008 to 2009. Madla and Reyes enrolled at the Far Eastern University while Moreno enrolled at Mapua Institute of

Technology. Among the benefits the scholars receive are financial assistance to pay 100% of tuition fee, monthly living allowances and provisions of books and uniform. “I am very thankful to God for letting me experience His great love by giving me this wonderful opportunity. God is so good for blessing the people behind this program for their willingness to lend a hand to the less privileged,” said Reyes. KMBI in cooperation with APPEND launched the Gordon V. and Helen C. Smith Foundation Scholarship

Program to help the less privilege but deserving children of KMBI’s clients to pursue their dream for a better future.

Marc Louie Moreno and Mary Joyce Madla comprise the third batch of scholars.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 7


Organizational News

Six branches hold Summer Saya Together with the hot summer was the holding of Summer Saya activities of different KMBI branches. Even before summer, branches were excited preparing for the said activity for the staff and program members. Summer Saya, though not a regular activity of KMBI, was strongly supported by staff and program members. The activity aimed to promote camaraderie among staff and program members through fun and excitement. Summer saya was first conducted at Koronadal branch in 2001 headed by its former branch manager Selven Raguro who is now the research and development manager of the

organization. It was a mini-sports fest joined by its staff and program members. As years went by, branches started to adopt the said activity bearing the same objectives. For the managers, it is just a matter of creativity on how they will carry out the activity so long as the same objective is followed. Currently, there are six branches which are reported to have conducted the said activity at their areas, i.e. Legazpi, Daet, Naga, Surigao, Gumaca, and Iriga branches. Legazpi branch had two separate events where more than 1,000 program members gathered at the Bicol University and Daniel B. Peña Foundation College Gymnasium in Albay. A mixed sportsfest

KMBI to implement mega branch system Guided by its goal to reach out to 250,000 Filipino households on its 25th year, KMBI will implement mega branch system in different areas anytime this year. Mega branch system, through its main feature of adding satellite units, widens outreach and program implementation opportunities through area saturation according to Vencent Abraham, Mindanao operations manager. “We will be able to facilitate KMBI’s holistic transformation program, especially sharing the gospel of Jesus Christ and promoting Christian values, to a greater populace since market potential is rich in the area,” added Abraham. The system will help to cater more women microentrepreneurs given that there are existing branches that have centers in dispersed locations. Most of these locations can not be

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accommodated by a regular branch due to issue of viability and quality service. “If an area of operations has greater number of women microentrepreneurs and does not commensurate anymore to the capacity of the regular branch, a mega branch may be set up,“ said Carmela Porras, Luzon operation manager. However, this still needs to be validated against market condition in the area, and peace and order situation. Also prior to installation of mega branch system, an environmental scanning activity is required to determine the feasibility of operation for the mega branch. Asked about the difference of regular and mega branches, Porras said that there are changes in branch structure, personnel prerequisite, targets and budget requirements. The mega branch will have KMBI/17

and variety show highlighted the event. Daet branch had sportsfest, dance contest and search for Ms. KMBI with 1,500 program members at the Camarines Norte State College Echo Athletic field. Naga branch gathered more than 1,000 program members to celebrate the joy of motherhood in a mother’s day celebration with sportsfest and search for Mrs. KMBI at the Camarines Sur National High School. Surigao branch staff and program members gathered at the Rose Beach with 190 participants for a sportsfest. Gumaca branch had various competitions aside from the sportsfest, like cooking, and sing and dance competition, including the search for Ms. KMBI with 863 program members at Gumaca National High School. Iriga branch also had their sportsfest with cheering competition and search for Ms. KMBI at Belmonte Spring Resort Iriga City. “Every year, KMBI Naga branch is conducting the Summer Saya activity not only to give joy but to empower and inculcate in the program members’ minds the development of social, environmental, economic, and spiritual or SEES aspects of life. Aside from that, we also aim to showcase the talents of our program members. Climate condition does not hinder us to serve and give joy to our program members,” said Ian Mark Villacruz, Naga branch manager. Through the years, KMBI saw its impact in the lives of program members and staff, how clients participate in this kind of activity, the creativity of staff to implement such activity and how they Six/17


Cover Story

Understanding ENTREP by Aldy Duque

Understanding the concepts and principles of what we do is important in doing things correctly.

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t this point, you must have heard the buzzword…ENTREP. I am pretty sure as well that you know what it means – Entrepreneurial Nurturing through Transformation, Re-formation and Empowerment Program. It shall replace SUCCESS, a name we associated to our centers, and come the first day of January 2009, all our centers will bear the name ENTREP. To give you a little information about how it was brought to existence, our executive director Edgardo Mercedes conceptualized it while he was in a hotel in Dagupan City, around 2 o’clock in the morning on May 06 of this year. This happened after learning that SUCCESS with the same meaning is registered to the Philippines Securities and Exchange Commission as a name of a company. On June 07, KMBI Board of Trustees approved the implementation of ENTREP. Since then, information dissemination and orientation activities were held as part of transition from SUCCESS to ENTREP. Crucial to implementing ENTREP is our understanding of it, which is the main topic of this column. Basically, ENTREP is a nurturing program aimed for our clients. Now, we must understand that (in KMBI) when we talk of “clients,” we mean two types: our staff and program members. But at this point, let us focus only on our program members. ENTREP, as a nurturing program, is aimed at our program members and this is the reason “E” stands for “entrepreneurial.” Meaning, the kind of nurturing we will give to our clients is intended to produce the spirit, attitude or qualities of an entrepreneur in them. Does this mean that we will have new interventions? Nope, microfinance (MF), enterprise development (EDS) and values formation as our integrated interventions remain. In this sense, ENTREP becomes the mother program of the three interventions. What about Transformation, Re-formation and Empowerment? These three are the processes our clients undergo as we intervene. Among the three processes, “re-formation” is the new concept to KMBI constituents, but it is still consistent with our transformation framework of “Affect and Influence.” Re-formation was brought up after the realization that in the process of change, some (clients’) form or condition may

need only action without radical or revolutionary change, while some require a total transformation. Nevertheless, re-formation must not be related only to spiritual aspect but also to economic, environmental, and social aspects of man’s life. Empowerment, on the other hand, refers to the institution’s expectation that after a client is given assistance, the empowered clients will be able to empower others. Please bear in mind that processes of transformation and reformation may happen in different aspects of life at the same time, transformation in the social aspect for instance while reformation in the spiritual aspect. ENTREP is also our means to achieving holistic transformation. We do ENTREP, which is the three integrated interventions, because we want to see positive changes in different facets of our clients’ lives. We must take note that all the interventions we mentioned should be given to a client for her to experience a genuine and lasting change and sustainable growth. KMBI believes that MF alone, or even coupled with EDS, would not be enough to create the impact we intend for our clients. We have proven over and over again that values formation is an indispensable ingredient in the change we are trying to facilitate. For instance, an additional capital through MF may certainly help a

client grow her business but the issue of quality is never guaranteed with it. Our clients need the capacity through EDS to grow their businesses. At this point, quality of products is addressed but not the issue of sustainability. Adding capacity to the capital does not guarantee that the business will be sustained. How can we therefore ensure quality and sustainability? Character through values formation intervention must be present in order for our clients achieve a quality and sustainable growth. Another thing we must remember about ENTREP is that it is primarily the work of the branch. This does not mean though that the support departments do not have a role to play. No doubt, the quality of support the head office departments extend to the branches determine half of the success of ENTREP. The other half is determined by the branches. Branch officers and implementers (the program assistants) Understanding/17

Rizaldy “Aldy” Duque is the resource mobilization and communications manager of KMBI. He has served the organization in different capacities including research and development and transformation manager.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 9


Leader’s Edge

Valuing Partnerships by Lea Gatpandan

KMBI acknowledges that it cannot achieve its goal... “without partnership with like-minded organizations.

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any of KMBI branches had engaged in community outreach in different instances and capacities. The most common types of activities are capacity building, livelihood training, and delivery of professional services which aim for holistic development of the target sector or the community as a whole. And in many of KMBI endeavors, it found one key attribute necessary to heighten the desired impact. KMBI acknowledges that it cannot achieve its goal of holistic transformation of communities without partnership with like-minded organizations. It is much like recognizing that the feet cannot reach its destiny without the eyes or the rest of the body parts fulfilling their functions. Consequently, the best thing about partnerships is that when organizations join together to fulfill a mission, their combined interactions produce a total effect that is greater than the sum of their individual contributions. This is called synergism. “Synergy” (from the Greek word synergos), in a broader sense, is combined or “co-operative” effects -literally, the effects produced by parts, elements, individuals or groups that “operate together.” This is commonly associated with Aristotle’s statement in The Metaphysics, “the whole is greater than the sum of its parts” or 2+2=5. KMBI Pasig branch observed the principles of synergy through its educational and dental mission to 166 beneficiaries in Barangay Pleasant Hills,

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Mandaluyong City in May. Even though the branch is tenderfoot in the area, they responded to the need of the community through delivering the social activity in partnership with Philippine Dental Association (PDA) San Juan Chapter, Center for Family Ministry (CEFAM) of Ateneo de Manila University and Book of Hope. PDA San Juan Chapter headed by president Dr. Judith Ferrer and members Dr. Tani Villanueva, Dr. Leo Magtibay, Dr. Bing Licayan, and Dr. Edna Mendoza delivered free tooth extractions and health tips on dental care to 111 residents. It was CEFAM, headed by program director Maila Domingo who provided anesthesia, dental needles, toothpaste and other medicines. Simultaneously, at the third floor of the barangay hall, a film on the story of Jesus healing a paralytic was viewed by 55 children through Book of Hope. Afterwards religious reading materials were distributed to the children. “Mas nakilala ko po si Hesus doon sa napanood kong video. Mabait po siya. Natutunan ko rin po na mahalaga ang pagpray kay Jesus at paghingi ng tawad sa kasalanan” (“I

learned more about Jesus on the video we watched. He is good. I also learned the importance of prayer and asking for forgiveness of sins”), said a nine-year-old girl Ma. Roma Evangelista, daughter of program member and beneficiary of both dental and educational mission. Afterwards, KMBI staff introduced games and gave gifts such as crayons, pencils and food for the participants. Results of the activity may have been far different if the branch did it by itself. How far-reaching then are the benefits of synergy in partnerships of organizations? Synergy amplifies meaning or useful effects brought by the combinations of contributions. As exemplified in the case above, the joining of hands of four organizations in an activity increased functionality of service through the combination of individual specialties. Moreover, with each organization’s co-operation, they were not only able to practice their strengths, they were also able to efficiently serve the community through altruistic sharing of expertise, cost entailed, resources, information, etc. which in the long run


made the activity easier for the actors and beneficial for the participants. An element present in the partnership was their division of labor wherein each organization fulfilled individual roles to complete a whole which is the activity’s goal. Moreover, the end also benefits the participating organizations in that they were able to support and promote their own mission. According to 1000ventures. com, meaningful partnerships are the foundation for success. Partnership is what enables many companies to make continuous improvements. By sharing with others, you can direct your resources and capabilities to projects you consider most important. Synergy is the power behind business partnerships where two parties leverage their assets (resources, capabilities, expertise, client base etc.) for the mutual benefit of both. Learning the art of good partnership will not only help the organization and its program members. Doing so will enhance the staff’s

capabilities and skills as leaders, as well. As a leader one must adopt practices such as building partnership – a lasting partnership to develop numerous civic works for the benefit of program members. Nowadays, more and more competitors are establishing in different areas. KMBI must be distinct from others. The effects of synergy can also manifest inside an organization when all “participating” individuals work co-operatively to fulfill the corporate goals. Some of the elements necessary to achieve such are mutual dependency, sharing of competencies, becoming a team player, providing complementary support, becoming explicit on agreements or commitments, exercising good communication, and having respect and trust for each team member. These elements are needed in the interplay of activities within each unit, department, and group under this organization. With such a huge task to fulfill, one cannot afford to stay as a lone player.

To reiterate, KMBI acknowledges that it cannot achieve its goal of holistic transformation of communities without partnership. No lone effort produces great impact unless this contributes to the goals of the activity, team or organization. Rizaldy Duque, resource mobilization and communication manager once said “Effort without contribution is a waste of time,” which means that in order for one’s effort to gain more value, it must be done in the context of partnership. One must learn to maximize their resources and tap others. ”Key features to Effective partnership,” http:// www.1000ventures.com/business_guide/partnerships_main. html. 2 Corning, P. A. (2007) The Synergism Hypothesis: On the Concept of Synergy and It's Role in the Evolution of Complex Systems. http://www.complexsystems.org/publications/ synhypo.html. 1

Lea Gatpandan is the assistant editor and serve KMBI as resource mobilization and communication associate.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 11


Leader’s Edge

Affect & Influence

MultiplyingTransformation by Kris Joy Guimary

multiplying transformation A

ffect and influence (A & I) – For KMBI staff, these two words signify more than a call to action. It is a charge, a commission for them to move other members of the society to create positive impact in the communities where they are in. A & I is the organization’s proactive scheme manifested through the day to day transactions in instilling to its members Christian values. Today, A & I is reaping results through women multiplying transformation in their own community. In a recent activity conducted by West Avenue branch, program members conceptualized and initiated a feeding program cum values education drive through the realization that children in their community have to know Jesus as the Savior and Lord at their young age. The members had Emelyn Formaran, program assistant, impart godly values through the Wordless Book, a book that features five different colors which have underlying spiritual meaning. Sevenyear old girl Kaye Angelo Meneses, beneficiary and daughter of a program member, said afterwards, “Pinakita po doon sa book na dapat maging mabait ang bata kaya may white (We were taught through the story that every child has to be good that is why there was a white page).” Formaran emphasized the book’s main message of Jesus Christ giving His life to save us from our sins. The activity was also done to promote Christian values to other participants, particularly the children’s parents and neighbors. Moreover, it sought to put emphasis on good nutrition. The members are targeting to conduct this

feeding activity at least once a month. “At this stage, our program members are already aware that KMBI is not just simply a microfinance institution but also a partner in reaching out to indigent children in instilling transformation,” said program unit supervisor Ruby Calinisan. More and more of KMBI program members are growing a heart for others. Though it is integral for the organization that the Word of God is actualized in the lives of its staff and members, it is still equally significant to know that the members have gained trust on the sincerity and unconcealed support of the organization to the preservation of godly principles as attested by their response to the need of their society. One principle of influence is reciprocity, an act which allows individual to give something to others with the confidence that it is not being lost. This makes possible the development of various kinds of continuing relationships, transactions, and exchanges that are beneficial to society. In a movie entitled “Pay it Forward (2000),” a twelve-year-old student took to heart his teacher’s challenge of changing the world into a better place by creating a strategy of multiplying kindness. When a kind act is done, he refuses to have it paid back but instead passes it on to three more people and challenging them to do likewise. Unknowingly, his strategy succeeded. The scheme let out the goodness of human nature which was then appreciated and reciprocated by many. That simple activity initiated by the program members was a response to truthfulness and commitment

shown by the program assistants and the organization. What we are doing is more of a pact with the members to help them through their poverty. The relationship built through the process is founded on the confidence that the organization has only the best for them. What one program assistant has shown to the members has been multiplied to many. What more can 250,000 program members do to the rest of the Filipino communities? Harold Ledda, trustee of Asia Graduate of School of Theology and businessman, said, “We can talk of transforming others only when we can first talk of us being transformed by God.” A & I requires the basic, be transformed first by Christ before we lead others to Jesus Christ for transformation. Like sprayed perfume, Christian values cannot be kept. The seed of goodness is planted in the hearts of the members and is now bearing fruit which they will pass on by touching the lives of other people.

A&I 12 | Communi-K |

Source: Cialdini, Robert B., Ph.D., “Influence,” (Quill, NY, 1984 (Revised 1993), http://www.rickross.com/ reference/brainwashing/brainwashing20.html., August 2008. Kris Joy Guimary is the communications unit head of KMBI. She graduated from Mindanao State University with distinct honors.


n

Leader’s Edge

Understanding Social Responsibility

Meeting People at Their Need by Lea Gatpandan

R

ecently, several branches are becoming more socially responsible. In May, Daet branch responded to the need of 175 individuals through improving livelihood skills and increasing health awareness of their program members in a two-pronged outreach activity, i.e. livelihood training and medical mission to their community.

The activity was done in partnership with G-Core Group, Inc. and Pamilya Pinoy Negosyo.Com which provided free medical services and livelihood training. Barangay officials also supported the program by providing the venue and other hall facilities. Aside from Daet branch, other branches are also strengthening their involvements in civic works to help the poor and the same is the case with some program members who have developed the passion to help others by supporting the organization’s activities. Gumaca branch was able to mobilize a feeding program to the locals of Quezon. The principle of being socially

responsible provides an opportunity for the organization to exhibit a handson commitment in building better communities – not just for profit, but for the common good. Being socially responsible is being proactive rather than reactive. Today, many NGOs accept that their responsibility is to help improve society by taking a proactive stance in their societal roles. They opt to initiate or manage circumstances rather than be overwhelmed and react to situations which most likely leads to creating bandaid solutions to deeply rooted problems in the society just like poverty. As an NGO, KMBI seeks to address this issue not by distributing food, but engaging people, particularly microentrepreneurs to a transformative, reformative and empowering program. The program is continuous through a sixth-month cycle wherein women microentrepreneurs are nurtured to grow holistically as individuals and as group. In the process, the women are helped economically, spiritually and socially. Branch staff encourage women to reach out to their communities through socially-benefiting activities which they have initiated and planned together with the branch. But what does social responsibility (SR) mean? American Society of Association Executives and the Center for Association Leadership define SR as a commitment to leveraging the power of associations to create practices that make a positive social, economic and environmental impact while creating

healthier organizations. On the other hand, the Filipino company Yellowasp posted that SR is about improving the quality of relations with stakeholders, partners, clients, and employees. Yellowasp adheres to a certain social ethic, being an equal-opportunity company promoting support to the civil society. Research from the Points of Light Foundation points out some reasons why companies invest in workplace volunteerism, such as they want to “do good” for their community; it fits the company’s traditions and values; it improves reputation and image; it is important to customers that the company demonstrates “good citizenship;” it helps recruit and retain employees; it helps build employee morale and job satisfaction; it helps build teams among diverse employees; and it allows employees to develop new skills that are useful in their “real job.” Same with those reasons, KMBI has the heart to help the poor, communities and employees. It is the values that we would like to impart to our members as transformed individuals. The prosperity of communities is integral to the success of the organization and you as a leader. Imagine these people improve their lives after attending the program… Imagine yourself becoming more and more socially responsible and enhanced the leadership skills within you. Lea Gatpandan is the assistant editor and serve KMBI as resource mobilization and communication associate.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 13


MF Index

The Kidapawan Experience

Adherence to the Basics by Kris Joy Guimary

K

idapawan branch has been KMBI’s best branch for three consecutive years. Since its conception in 2004, the branch has reached and even exceeded its operational and financial targets. In fact, it has become a center in developing caliber staff, many of whom are now officers contributing in building strong and viable branches. In many of my conversations, I have learned that some operations people surmise that such consistency in performance just cannot take place, or if it could be, compromises are common. Thoughts on the probability of Kidapawan’s involving “secret” strategies stirred suspicions. However, we thought it best to appease the whiz through conducting a monthlong study on the branch.

On May 19, I embarked to Kidapawan City to conduct focused group discussion and interviews with staff and program members. I wanted to know what made Kidapawan the best branch. Series of questions were thrown. Responses were probed, verified and tested after many discussions. My auxiliary goal sided the suspicisions. However, after stringing responses, it has been made clear to me that no matter how I dig deep, I could only get the assumption that I wanted to nullify 14 | Communi-K |

the branch has no secret strategy except for their disciplined adherence to the basics such as policies, close monitoring, observance to protocol, raising the dignity of their work, transparency, unity, spiritual transformations and even their perseverance in going through painstaking experience just so to lay strong foundations for the operations. The staff termed it gutlevel “obedience.” They believe in KMBI’s development program. They own the vision. Even the selected

program members divulged their share of experiences. The following provide a glimpse of the result of the study. Culture of 100% collection. Kidapawan staff and members have only the standard in mind – zero PAR. Officers and program assistants (PAs) attribute the 100% collection to their establishment of quality centers through careful client selection, quality delivery of orientation sessions and close monitoring. Client selection. In selecting


MF INDEX clients, the PAs resourcefully gather information about the prospective clients and carefully analyze the data. They ask the client’s or their spouse’s (other) income sources in case clients will have difficulty in paying the weekly amortization. They inquire about the level of their children’s education, and compute tuition and weekly education and household expenses with the members. If members have children who are already working, they also assess the capacity of the children to help in paying. They ensure that the husband, parents and relatives know that the person has such obligations with KMBI. They are keen not to allow microentrepreneurs with dwindling businesses to loan. They review loan documents. The officers do not allow any group to continue the loan process once glitches are noticed in their documents. They are firm about this, and when clients complain, the staff continues to emphasize the “no compromise” policy. Lastly, they inquire from neighbors and relatives regarding the character of the member in the community, her track record on loans, or if she has outstanding loans with other organizations. They go through the conscientious process of selecting clients in order to gain the benefits of having quality groups. Quality orientation session. Orientation sessions are the branch’s platform by which all policies and agreements are set by both PA and program members (PMs). The staff deliver the information thoroughly, putting emphasis on key aspects, particularly on mutual guarantee. It is assumed that prior their meeting the PA has the support of the center leaders, and thus laying down of policies and agreements are settled on that level before they are expressed to the group. On mutual guarantee, it is emphasized that in loaning from the company, the members receive the amount as whole, thereby pinning the point that the loan is a group responsibility and not of individuals. The members, during the FGDs, reiterated “utang ng isa, utang ng lahat” as if it were their life’s guiding principle. PAs tell the group that by signing a pact with KMBI, they are

responsible of fulfilling their end in the partnership regardless of what transpires along the way. This includes meeting the required 100% weekly collection and solving their center problems with (as much as possible) minimal supervision from the staff. Hence, the weight of the obligation is placed on the group and not on the PA. By doing so, the PA remains as guide while the members develop independence and accountability in solving their own challenges. In the orientations and center meetings also, the staff establishes their authority and credibility by firmly relaying and actualizing the policies, creating good relationships with the clients, praying, and discussing transformation inputs. They also keep their words, especially on observance of time. Once they have set schedules with the group, they expect the members to be organized before the time for them start on the set schedule. The staff arrive one hour or thirty minutes before the time. They do this not only during center meetings, but also when they invite members to meetings or any discussions in the branch office. Collection strategy. One of the ways to easily collect payments is through dividing members into four subgroups. Subgroup members have homes or business near to each other, or are relatives. From their subgroup, a leader is chosen to monitor their businesses, remind them on their payment schedules, collect the payments, and remit to the center treasurer. Overcoming common problems. In the advent where common problems arise, like delinquent clients, stow away, etc., the PAs remind the leaders and the group of the agreements made during the orientations. They firmly place the responsibility on the members by reminding them on their pact. By doing so, they are empowering the members to see their problems as their responsibility to solve as a group. The staff’s consistency in imposing a disciplined system brings out respect and appreciation from the members. Clients are expected to follow organizational and internal policies. When rebellion is sensed even from a single client, the PAs intervene

immediately. They do not allow it to worsen. When one or two clients are unable to pay and members contribute, the branch considers it a big problem. Clients do not like staying longer in the center, especially when the reason is incomplete payment. Strict supervision and monitoring. Branch officers strictly monitor their staff to align all functions and decisions to the standards of the organization. The officers are knowledgeable on every policy, making them firm and confident in guiding the staff to strictly comply the policies. Among the policies where they are keen at are the following: Cut-off time for payments, are strictly observed PA and members, and monitored by their respective Program Unit Supervisors (PUS). The PAs are required to update their PUS an hour before the cut-off time. It is expected by then that collections are intact. The PUS has their own copy of the amortizations required of the group every week to check if this coincide with the update. When the PA fails to do so, the PUS contacts the PA or the center president. In my visit, I witnessed a member running towards the office door and bursting to tears. She came in five minutes past 12 noon, and was so sorry to have missed the cut-off time. She was terrified with the thought that her group will blame her for being late because it will affect their performance and the assessment of the branch on her group. She cried for almost 20 minutes; we had to console her. What seemed to be comical for an outsider (like me) was the world for the program member. Surprise visits. To continuously check the center meetings, records and other items, the PUS makes unannounced visits. This is a form of challenge for their staff to be prepared at all times. Writer’s Note: The full-length result of the study will be presented through a “brief” which will come out soon.

Kris Joy Guimary is the communications unit head of KMBI. She graduated from Mindanao State University with distinct honors.

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 15


ENTREP 101

...branded as the “dreamers, the doers, the risk takers, the innovators, the visionaries and ultimately the leaders in their endeavors.

The World

of Entrepreneurship

by Milan Apawan

W

ebster’s defines an Entrepreneur as “One who undertakes to start and conduct an enterprise or business, usually assuming full control and risks.” To be an entrepreneur is to be able to create something novel to the world. To create a product whose market no one thought would exist. To start an idea that would trail blaze the development of something bigger than what originally conceived. The term ‘entrepreneur’ goes back as early as 18th century. It was first introduced by French economist Richard Cantillon. In his writings he formally defines the entrepreneur as the “agent who buys means of production at certain prices in order to combine them” into new product. In this definition, fellow French economist, J.B. Say, added entrepreneurs are leaders. Over the century, notable economists’ writings had recognized the role of ‘entrepreneurs’ in various economic processes. Alfred Marshall (Principles of Economics) introduced the necessity of entrepreneurship in production. According to Marshall, an entrepreneur is a driving force that organizes production in such a way as to create new commodities or improve “the plan of producing old commodities.” Other economists such as Smith, Ricardo, and Mill briefly touched on the aspect of proposing its 16 | Communi-K |

contribution to economic growth. Modern day ‘entrepreneur’ had retained connotation of being branded as the dreamers, the doers, the risk takers, the innovators, the visionaries and ultimately the leaders in their endeavors. From being described as driving force of production, as posited by early century economists, nowadays modern economists actually believed that entrepreneurship could itself be the factor of production. In the Philippines, entrepreneurs’ role is particularly crucial. The Medium Scale Development Plan (2004-2010) encourages the growth of microenterprises and small scale businesses to combat unemployment and poverty. An economy on the way towards economic growth needs people who are not afraid to discover new markets, discover new sources of raw materials, mobilize capital sources, introduce new technologies, new

industries and new products, and create employment opportunities for others. Entrepreneurs’ role is integral in business culture. Every successful entrepreneur brings about benefits not only for himself but for the municipality, region or country as a whole. Thus, indeed society regards them as engines for job creation and ultimately economic growth. Source: Principle of Economics by Alfred Marshall Introduction to Entrepreneurship revised edition 2007 small enterprises research and development foundation and University of the Philippines Institute for small-scale industries Maylanie “Milan” Apawan is the resource mobilization and communication associate of KMBI and the newest addition to the RM&C team.


BOT...from page 6 from their respective directors. For their functions, HO representatives can serve as consultant, mentor or coach for branch officers in relation to planning, implementation, and assessment of holistic transformation or ENTREP interventions. On the other hand, the HO representatives are discouraged from directly meddling in the day to day operations of the branch as this function belongs only to the operations manager.

Microfinanza...from page 6 this year,” said Liza Eco, deputy director for support and services group. “OI, makes sure that members or partners are on track with the standard of the network,” added Eco. The official result of the rating will be released after two months. However, MFR already identified initial positive and areas of improvement of the organization during the last day of their visit. MFR cited that the organization has a good outreach and portfolio and has an impressive number of clients. Further, the organization has a good geographical network with the organization’s presence in all major islands in the Philippines. For MFR this indicates a “good network of partners both local and international and good linkage with banks.” Moreover, they mentioned that KMBI has a good reputation in the microfinance industry. Some areas for improvements include the enhancement of management information system to further growth of the branches and avoid fraudulent acts. This suggestion for improvement is currently addressed through the Enhanced Information System towards Optimum Productivity (EISTOP) project. MFR, specialized in microfinance and rural finance, is a recognized rating agency within the Inter-American Development Bank, Consultative Group to Assist the Poor, European Union, and Rating and Assessment Fund. Committed to improve the quality standards for microfinance professional ratings, its mission is to improve the transparency and sustainability of

the microfinance sector by providing analysis on the strength and weaknesses of the organization.

Six...from page 8 mobilize fund for it. Given the impact of the activity, the organization is now checking the possibility of making the summer saya as an institutional activity. Doing so, the summer saya will have a regular fund coming from the organization to help the branches in implementing it. Once it is approve, all branches can conduct the activity every summer. The organization would like to be part of this endeavor and will try its best to find ways on how they can support the activity.

leadership leads to compromised operation while lack of capabilities leads to missing the intended impact. These two issues must be addressed both in the organization and branch levels. Understanding the concepts and principles of what we do is important in doing things correctly. Certainly, there are still other things you need to know about ENTREP but for the meantime, and because our space is limited, I need to be contented with what I have written here. Nonetheless, I believe that the concepts I brought up are good foundations in doing ENTREP. I hope that you will find time to understand and explore them in preparation to the full implementation of the program. Rest assured that there will be orientation in the next days to come. I’ll see you there…for sure.

KMBI...from page 8 three units. Each unit has a supervisor and eight program assistants. The third unit will have its own satellite office which has an assigned branch accounting associate to do the bookkeeping. Hence, the mega branch has 32 personnel and is expected to have a minimum of 7,200 program members. Two offices will be maintained by a mega branch. The main office will be located in a key city and the satellite office will be in another town. “The mega branch is also an expansion strategy in the sense that while it reaches out to greater number of microentrepreneurs, it is also preparing the satellite unit in having its own branch scale operation,” said Vencent Abraham, Mindanao operations manager. Abraham reminds, however, that not all satellite units will be transformed into a mega branch later on considering the uncontrollable factors and potential areas.

Understanding ENTREP...from page 9

must do ENTREP or the three integrated interventions properly. Of course, we cannot disregard the leadership and capabilities of the officers. Dysfunctional

We’d love to hear

YOUR THOUGHTS Please take a moment to give us your comments and suggestions on articles presented.

You may reach us at

KMBI 12 San Francisco St. Karuhatan, Valenzuela City 1441 Philippines Email: rmc@kmbi.org.ph

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 17


Project Update

CBEDP concludes its second year by Calvin Perez

The program is an integration of major “components that contributes to empower...

O

�

the said foreign agencies while the implementation and monitoring of programs, projects and activities are provided by KMBI. The said project has four phases of implementation: the pre-entry, planning and organizing, capacity building and project management. It aims to develop the market in the community and thus bulk of the activities are to identify potential livelihood sources with resources endemic to the area, train residents and organize them into enterprises. The second year of CBEDP implementation at Carpenter Hill, Koronadal, South Cotabato prioritized the training caravan which include provision of technical assistance for the Brgy. Carpernter Hill Multi-purpose Cooperative. A pre-membership and education seminar was conducted as part of its efforts of strengthening the existing organization in BCH. Also, training on basic cooperative management was conducted to enhance their capability to administer and manage community enterprises in the future. A total of 30 participants joined the said activities. Other activities conducted among others include: Sports Local residents helps in constructing the nursery site at Brgy. Carpenter Hill. Development activity

ne of the foremost non-financial services that the organization has started to embark on is the communitybased enterprise development project (CBEDP) jointly undertaken with AUSAID and Opportunity International. The project was designed as a three-year endeavor from 2006-2009. Last June, CBEDP concluded its second year implementation.The program is an integration of major components that contributes to empowerment, and these are microfinance, community organization, capacity building, enterprise development and partnership building. Along the process of implemention, KMBI shall facilitate the full participation of the community from conceptualization, planning, implementation and eventually, monitoring of activities under the CBEDP. Funds were provided by

18 | Communi-K |

for the youth of BCH and the set of activities included Drug Awareness, Social Graces, basic officiating and training on Basketball, Volleyball, Badminton and Arnis Plant Propagation and Nursery Management. One problem that BCH is facing is the continued degradation of our environment and that the lack of sustainable of supply of planting materials needed for reforestation. The activity was designed to offset the alarming situation and more so, to raise the level of awareness of the participants regarding environmental conservation and preservation. FAITH (Food Always In the Home) Gardening. Another major problem of BCH is the lack of a sustainable source of food and to the said activity was proposed. It aims to facilitate residents’ appreciation of the activity and to somewhat ensure a continuous supply of vegetables in their home. Waste Recycling and Vermi culture. The activity was designed not only to help facilitate the gradual decline of wastes in the area, but also to make it as another source of livelihood for the community. It is also the same with the conduct of the vermi culture training as this will hopefully propel farmers and local consumers to practice organic farming. Floral Arrangement. The women sector of BCH needed available skills to make use of their idle time in the community, thus, the proposal to conduct the floral and table arrangement


training was actualized. This was in adherence to the objective of providing local residents with options regarding livelihood sources. Chicken Production and Management. Another livelihood training activity for residents in BCH was the chicken production and management. This activity is feasible in the sense that it is common in the area and that the environment is conducive for such livestock production. This shall, in the long run, help the immediate food needs of the residents and thereby offer hope of elevating their standard of living. Cosmetology Training. Activity was identified as a viable alternative for the women and that it is easy to be learned by them. The organization, in

partnership with select foreign funding agencies had provided the necessary financial assistance to make it happen Therapeutic Massage Training. The organization has suggested that this become a regular activity of BCH and venture on widening its scope by increasing the individuals for training. To date, KMBI has successfully undertaken activities from its initial year of operation until the end of the second year of the project on the year 2008, and plans to sustain organized livelihood associations in preparation for the third year of implementation which is about project management and sustaining the viability of such enterprises. The future is bright not only in the impending success of the CBED

Arnel Bento demonstrates asexual plant propagation to the participants.

Health Corner

Project, but also in the commitment of KMBI in incorporating the program in its regular provision of non-financial services to our diverse stakeholders. With the unabated faith in God and the strong commitment of having a hand in alleviating the situation of our countrymen from the stranglehold of poverty, KMBI is there at the forefront, unwavering and focused-driven to realize its vision and reach its mission.

Calvin Perez is the community development unit head of KMBI. He is also the project manager of CBEDP.

Ruben Mortejo (left), President of Vermi Culture Association, explains to KMBI representatives on the worm BTH used for breeding of worms.

Crunch in Bed

Skin Tip

FITNESS TIP: Before you even get out of bed in the morning, do ten stomach crunches while lying flat on your mattress. Increase daily by one until you get up to 100. Think you’ll never get there? Try it. You may eventually have to set your clock to wake up 15 minutes earlier, a small price to pay for a flatter stomach.

Protect your skin from the sun with a block that screens both UVB and UVA light. Make sure your sunscreen contains both titanium dioxide and zinc oxide. Sunblock manufacturers went ballistic about popular ingredients avobenzone or Parsol 1789 when it was discovered that the chemical deteriorates in sunlight. There is no perfect sunblock, but wearing any lotion with a SPF of 15 to 30 is still effective.

Source: http://www.health-fitness-tips.com Icon source http://www.backcare-sports.com.au/body.htm

Source: http://www.health-fitness-tips.com Icon source: http://www.gnurf.net/v3/clip-art/free-clip-art-sun-block-008.html

“Reaching out to 250,000 Filipino households on our 25th year” KMBI | 19


Organizational Performance

Quarterly Loan Portfolio Per Area (in Millions)

Indicators

Our Vision

200

Loan Activity

180

Client Outreach Loan Portfolio

129,361

160

371,897.320

140

Value of Loans Made

630,603

Ave. No. of Client per PA Portfolio-at-Risk No. of Loan Made

120

2008 Q2 2008 Q1 2007 Q4

100

263

80

4.86%

60

106,696

Efficiency * Cost per Unit Lent (USD) * Cost per Loan Made (USD)

40 20 0.00

0.01 13.39

Financial Self-Sufficiency

87.80%

Operational Self-Sufficiency

113.53%

n l 1 N 2 N 3 aga vao R CO co ca C Bi Bula ZON ZO ZO Car Da N SO R R OR AR BA BA N B A LA LA L A CA CA C

Client Outreach Growth 2008 Q1 129,651

Number of Staff MF Operations

634

Support Group

61

*USD

2nd Quarter 2008

2007 Q4 126,294

2008 Q2 129,361

1.00 is equivalent to Php41.87 as of June 30, 2008

MIX ranks KMBI at top 20 KMBI, being one of the profitable microfinance institutions (MFIs) in the Philippines, got to the 2007 MIX Asia and Global 100 ranking. The Asian Development Bank (ADB) and the Microfinance Information eXchange, Inc. (MIX) released on April the first ranking of Asian MFIs – the 2007 MIX Asia 100. MFIs surveyed were ranked within the nine categories: outreach-borrowers, outreach-depositors, scale, market penetration, growth, profitability, efficiency, productivity, and portfolio quality. MIX Asia 100 has drawn outreach and financial information from 392 MFIs across 23 countries in Asia and selected the top 100 MFIs. KMBI ranked 18 in profitability category. On the other hand, the MIX Global 100, a yearly composite ranking, presents 100 leading MFIs in the world. Out of 607 samples, KMBI ranked 29 in profitability category and 81 in outreachborrower category. PROFITABILITY

KMBI

MIX Asia 100

Ranked 18th

MIX Global 100

Ranked 29th

OUTREACH-borrowers

KMBI

MIX Global 100

Ranked 81st

“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”

2009 Collection Holidays New Years Day Maundy Thursday Good Friday Araw ng Kagitingan Labor Day Independence Day Ninoy Aquino Day National Heroes Day 20 | Communi-K |

January 1 April 9 April 10 April 9 May 1 June 12 August 21 August 31

All Saints’ Day Bonifacio Day Last Five working days of the Year Christmas Day Rizal Day Eid’l Fitr Last Day of the Year

November 1 November 30 December 22, 23, 24, 28 & 29 December 25 December 30 Movable date December 31

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


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