IMPACT
J U LY / A U G U S T 2 0 0 6 R AT
Opportunity monitors impact
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A publication of Opportunity International
Serving Poor Families
An assessment system that’s revolutionizing the microfinance industry
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with Microfinance
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4 Pioneering in Ghana Juliet Adomako-Kwakye’s story. 4
4 Disney invests in Opportunity
A generous investment.
5 On the cutting edge The Women’s Opportunity Fund continues to innovate.
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6 Sharing good news Opportunity loan officer, right, surveys a client in the Philippines to help determine Opportunity’s impact.
Blessed are they who have regard for the poor. – PSALM 41:1
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tories of lives changed are powerful. But when stories are supported by clear data, they carry a multiplied impact. To date, the global microfinance industry has been blessed with an abundance of inspiring anecdotes. But there are few measurable numbers between dollars loaned, clients served and percent of arrears. Sustainability and client outreach are the traditional benchmarks by which global development efforts are judged. But is poverty meaningfully reduced? Are clients truly impacted? While statistical measurements of this reduction have been difficult to obtain, microfinance institutions need this specific data to inform their choices on products, target markets and program effectiveness. In keeping with its entrepreneurial spirit, Opportunity International responded to the need and, in 2004, introduced its groundbreaking Client Impact Information Management System,
or CIIMS (pronounced “sims”). Yet CIIMS’ arrival was not without much research and effort.
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Board of Governors member invites friends to join the Opportunity mission.
MICROFINANCE Microfinance providers are increasingly asked to prove they reach the poorest,
HISTORY IN THE MAKING
defined as those who live on less than
Opportunity had been researching the impact of its microfinance programs since the mid-1990s, because it recognized the immense need to document success and identify areas for improvement. Opportunity touches more than 810,000 lives worldwide — with 42 partners running microfinance programs in 27 different nations. Governing these 42 partners is the Opportunity International Network, which provides the infrastructure and support necessary to make its microfinance programs run successfully. Each Opportunity partner program is led and staffed largely by indigenous professionals committed to meeting the needs of the local culture. And while each has collected anecdotal evidence from its clients since the beginning,
$1 per day or the bottom half of those living below their nation’s poverty line. The United States Agency for International Development, one of Opportunity’s largest donors, stipulates that at least half of their microenterprise grant funds are directed to programs that reach the poorest. Opportunity was ready for this challenge: CIIMS reporting was enhanced in 2005 to include the indicator “$/day income per household member” to respond to the data needs of its donors.
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From the CEO’s desk
CHRISTOPHER A. CRANE
President & Chief Executive Officer
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efore there was a single loan made through Opportunity International,
there was market research. The gathering of vital information is so fundamental to our work that it was literally the first thing we did: Thirty-five years ago the founders of Opportunity conducted market research among the poor around the world. Today, our leadership in informationgathering continues through the Client Impact Information Monitoring System. CIIMS is a great example of the innovative thinking that has always distinguished Opportunity International.
Opportunity International went further and began formulating measurable indicators of success. These indicators went through extensive field testing with input from experts in the field. Because women comprise the majority of the global poor, the Women’s Opportunity Fund was an essential component of this effort, providing funding and making a long-term commitment to its success (see “Safeguarding women’s needs,” page 5). SETTING THE PACE In the meantime, at a 1999 Microcredit Summit Campaign meeting, world leaders lamented the dearth of statistical measurements of microfinance’s success. They issued a call to action — challenging practitioners, donors and academics to design impact-monitoring and assessment systems that would integrate knowledge from the field into a decision-making tool for managers. At this meeting, leaders also reviewed a paper on Opportunity International’s pioneering work-in-progress, written by Susy Cheston, senior vice president for policy and executive director emeritus of the Women’s Opportunity Fund, and Larry Reed, CEO of the Opportunity International Network. By the time CIIMS was introduced in July 2004, no other microfinance organization had a network-wide monitoring system in place. Today, other microfinance networks around the globe are still “running to keep up with us” according to Simon Stenner, CIIMS project manager. A powerful statistical tool, CIIMS gathers
and analyzes information about Opportunity client transformation and satisfaction worldwide. Launched in 2004 and focusing on eight Opportunity partners, CIIMS now collects data from 18 partners in Africa, Asia, Eastern Europe and Latin America and hopes to reach 25 by the end of 2006. It is a free service available to all Opportunity partners. Thanks to CIIMS, we know more about our clients than ever before. With nearly two years of trend data compiled for some partners, Opportunity managers have at their disposal a powerful decision-making tool, giving them an advantage in an increasingly competitive environment. “CIIMS is helping us serve our clients better,” says Rick John, CFO of Opportunity International U.S., “because we better know and can respond to their wants and needs.” CIIMS has four main objectives: • measure economic, social and spiritual impact on clients’ lives • identify opportunities for new products and services • identify poverty alleviation • measure client satisfaction To meet these objectives, CIIMS collects information using a simple, verbal one-to-one survey. An Opportunity loan officer administers the survey during the normal course of business, drawing participants from a random sample of clients across all product types and locations. Clients answer standardized questions about products used (loans, savings, insurance, remittances), type of program (individual or group), length of time in the program,
Initiated by the Women’s Opportunity Fund, CIIMS is continually refined to give us better measures of our clients’ successes, as well as needs that still remain. By measuring better, we can
MORE THAN NUMBERS Opportunity International’s Client Impact Information Management System
serve better. Anyone who has ever met our clients knows the tremendous personal impact that Opportunity has made on their lives. With CIIMS, we can unearth — and measure — more of the amazing stories of Opportunity’s impact on hundreds of thousands of people around the world. Thank you for helping us serve and make a positive impact on people’s lives.
Like any statistical program, CIIMS surveys produce data that must be interpreted to reveal the story behind the numbers. See sample graphs (page 3). Other examples of insightful CIIMS analysis include:
» One Opportunity partner’s survey results indicated that the sons of male clients were less likely to attend school than sons of female clients. The CIIMS analysis recommended that partner management explore the reasons for the lower school attendance and help overcome barriers to boys’ participation.
» A number of clients of another Opportunity partner did not answer a question about business profits, possibly indicating a need for additional financial literacy training, such as calculating revenue and profit.
» Some partners’ clients show relatively low levels of savings, indicating the need for focus groups or training materials to facilitate greater savings activity.
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Partners log their survey responses into a database. After analysis, this data is used to produce both narrative and graphic reports (see graphs below) that identify issues and trends, raise questions and encourage exploration and change.
Client surveys yield valuable data on the impact of microfinance.
demographics (age, marital status, education, dependents), housing situation, children’s education, business and savings activities, decision-making ability, health conditions, civic and religious participation, client training and satisfaction and spiritual transformation. Because the CIIMS survey is standardized, Opportunity can aggregate data and make comparisons across regions and programs. However, partners may add additional questions at the end of the survey to customize information for their unique needs, and the CIIMS help desk accepts suggestions for new and revised questions.
MEASURING HOLISTIC TRANSFORMATION The ultimate aim of CIIMS is to measure the holistic transformation of Opportunity clients and their families. Economic transformation is evaluated using metrics such as increased profit, revenue and number of employees. Social and spiritual transformation are measured by positive changes in selfconfidence, decision-making ability, education, housing quality, health concerns, worship service attendance and strength of relationship with God. CIIMS is also a catalyst in the fight against HIV/AIDS by measuring the effectiveness of Opportunity’s HIV/AIDS risk-management efforts. The CIIMS survey asks clients who have received HIV/AIDS training and support about subsequent behavioral changes that would reduce their risk of contracting HIV, thus indicating which training modules were most
effective. Surveyed clients at one Opportunity partner in Africa reported both personal and family-related changes, including: being more faithful in their marriage, their children practicing abstinence, supporting HIV-infected persons, and seeking voluntary testing and counseling. This partner also noted that mature clients reported greater benefits than new clients in such areas as practicing abstinence, caring for those who are infected and comfortably talking about HIV/AIDS. TRANSFORMING LIVES With 35 years of solid experience, Opportunity International has spearheaded continual innovation in the microfinance industry. While CIIMS enables the development of competitive, large-scale institutions, the fundamental strength is that of personal transformation. Although still in its early stages, CIIMS is one more step toward fulfilling Opportunity’s call to serve the poor. With each and every new tool and improved technology, Opportunity International is poised to have a dramatic impact on global poverty. ●
In December 2004, the Indonesian Social Department selected Opportunity partner Whana Kria Putri (WKP) as one of the best nongovernmental organizations in the country. The judges particularly commended WKP for using CIIMS to measure client impact and satisfaction.
ECONOMIC TRANSFORMATION
SOCIAL TRANSFORMATION
SPIRITUAL TRANSFORMATION
Opportunity Partner ABC* Clients’ current weekly net profit (US$)
Opportunity Partner ABC* Percentage of female clients who are always/often primary decision makers CIIMS Data
Opportunity Partner ABC* Percentage of clients participating in worship or religious activities CIIMS Data
CIIMS Data Mature Clients
50.0
Intermediate Clients
30.0
55.3
New Clients
22.6
54.4
20%
0%
0.0 20.0
7.5
28.6
40%
60%
14.5
Mature Clients
96.8
Mature Clients
Intermediate Clients
87.7
Intermediate Clients
New Clients
75.5
New Clients
$10-25
$25-50
58.3
9.5 7.5
80%
51.4
100%
0% <$10
70.8
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
>$50
ANALYSIS: Mature clients (more than 6 loan cycles) have
ANALYSIS: The longer a client is in the program, the
ANALYSIS: A clear relationship exists between worship
higher weekly net profits than new clients (0-2 loan cycles).
greater her decision-making influence in the household.
attendance and a client’s length of time in this
In the above example, 20 percent of mature clients are
Opportunity business training may influence the self-
Opportunity partner’s program.
experiencing a weekly net profit of more than $50, while
esteem and assertiveness of female clients.
only 7.5 percent of new clients experience the same. *Partner name removed for anonymity of data
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Pioneering in Ghana f you don’t know where you are going, any road will take you there. —Lewis Carroll Juliet Adomako-Kwakye believes that working for Opportunity International is the best route she can possibly take to fulfill her passion: using her management and accounting training to transform the lives of her fellow Ghanaians. A mother of two children who’s active in her church, Juliet has always cared about the poor, especially poor women. Juliet serves as branch relationship manager at Opportunity International Sinapi Aba Savings and Loans (OI-SASL) in Ghana. She first started working with Opportunity in 1997, after graduating from University of Cape Coast in Ghana with her diploma in education and a bachelor’s degree in commerce. Juliet started as a loan officer. Because of her work ethic, honesty and outspoken commitment to serving the poor, she was promoted several times. In her current role as branch relationship manager at OI-SASL, Juliet oversees 25 staff members and a portfolio of $1.3 million dollars, representing more than 10,000 clients. With responsibility for so many livelihoods, Juliet uses Opportunity’s Client Impact Information Management System (see story on page 1) to accurately identify client needs and
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which played a crucial role in respond to market demands, “so CIIMS’ creation. we can maintain a competitive With the CIIMS data advantage,” she says. collected, every program can be Juliet has a good head for assessed to determine its success business, but above all she loves at both meeting client needs and the work of poverty alleviation upholding Opportunity’s global and job creation, and she is mission and values. inspired by her clients’ For example, recent CIIMS transformation. Benjie data confirmed that a majority Montemayor, OI-SASL CEO, of OI-SASL clients received describes her as a vocal and HIV/AIDS-related training — a articulate leader, who “has critical intervention on the been advocating for more Juliet Adomako-Kwakye, AIDS-ravaged African continent. women’s involvement in of Ghana Clients receiving this training decision making.” have confirmed positive behavioral choices as a “She is one of the brains behind the formation result — including being faithful in marriage of Sinapi Aba Trust Ladies Association, which and seeking HIV/AIDS counseling. seeks to raise the image of women in the Training included everything from modes of institution and the community, promote gender transmission and methods of prevention; issues, empower women to realize their potential, educating family and friends about HIV/AIDS; and restore the dignity of the unfortunate.” supporting HIV/AIDS-infected or affected Always a progressive organization, SAT people; and seeking voluntary HIV/AIDS testing. helped test and refine the original prototype for “CIIMS keeps us focused,” Juliet says. “It Opportunity’s revolutionary CIIMS effort during helps us measure where we are and where we the 1990s. “A lot of our testing of indicators and want to go.” interview formats was with SAT — they were a To Juliet’s passion for transforming lives, real pioneer,” says Susy Cheston, senior vice CIIMS adds further evidence that Opportunity president for policy and executive director International works. ● emeritus of the Women’s Opportunity Fund,
IN THE NEWS OPPORTUNITY’S PASSION CARRIED INTO NEW SPHERES A commitment to building strong female leaders has served Linda Valentine well throughout her career — including her years with Opportunity International. In June 2006, Linda took on a new role of strategic influence: first female executive director of the Presbyterian Church USA — the denomination’s top post. “The world needs the Presbyterian church,” she said in an interview with the Presbyterian News Service. “We are called to serve, to bring light and life, hope and opportunity to the world. To share our resources, and be faithful to Christ’s call to serve the poor and the poor in spirit.” That passion for the poor is what first brought Linda to Opportunity in 2002, to
serve on its board of directors. At the time she was senior vice president of Motorola, Inc. Since then she has served on numerous Opportunity boards before joining the organization full time in 2005 as fund manager and general counsel. In every role, she exemplified strong business practices and the power of women to lead well.
DISNEY INVESTS IN OPPORTUNITY In May, Opportunity received a $200,000 contribution from The Roy E. Disney Family and executives of Shamrock Holdings, Inc. — the investment vehicle of the Disney family. The money is slated for Opportunity’s work in Lima, Peru, where the organization will develop 40 new Trust Banks. Over the last 27 years, Shamrock has supported many initiatives to help those in need. “Opportunity International is a global
leader in microfinance, and we are impressed with its innovations and previous success around the world,” said Michael McConnell, managing director of Shamrock Holdings, Inc. “Opportunity International’s efforts in Peru will provide thousands of poor citizens with the financial tools to rise out of poverty and will demonstrate further that Peru is a strong market for microfinance.” Opportunity President and CEO Christopher Crane expressed the organization’s gratitude: “We are enthusiastic to partner with the Disney family and Shamrock executives to help achieve our goal of elevating Peru and its poorest rural areas to a global microfinance center. This grant leverages the private dollars that donors have provided to start our microfinance operations.” To read the press release, visit www.opportunity.org under “Media Center.”
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ASK THE EXPERT
WOMEN’S OPPORTUNITY FUND For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org
Safeguarding women’s needs Chuck Day, Opportunity International’s director of Planned Giving, answers questions on estate planning and charitable giving.
Members of the Orphan Caring Group meet in Nsike village in Uganda.
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QUESTION: As concerned as I am regarding the world’s poor of today, I am also concerned about the poor of tomorrow. What can I do to help the next generation? CHUCK: Using United Nations projections, experts estimate that today’s 6 billion world population will increase by 77 million each year, reaching 8.9 billion by 2050. And the population of the world’s 49 leastdeveloped nations — those with the greatest need for microfinance — is expected to increase 10 times faster than that of the world’s developed countries. Where will future financial resources come from? Interestingly, the poor of tomorrow may be most helped by the foresight of generous givers today. The United States is experiencing the largest generational wealth transfer in history, with an estimated $17 trillion expected to pass from parent to child by 2025. Many of those inheritance dollars are potentially subject to estate taxes and could be redirected to help the poor. Here are the steps you can take today in order to help tomorrow’s poor: Maintain an up-to-date estate plan and remember Opportunity in your plan. Consider naming Opportunity as a beneficiary of your IRA, as IRA assets are potentially subject to a combined estatetax/income-tax rate of more than 65 percent when passed to children or grandchildren. Consider a life-income charitablegiving arrangement in which you receive current tax benefits and lifetime income, while Opportunity receives funding upon your death. For expert assistance with the planning needed to help the poor of tomorrow, contact Chuck Day, director of Planned Giving, at 800-793-9455, x4136 or cday@opportunity.org.
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he birth of the Women’s Opportunity Fund was a defining moment in Opportunity International’s history. While directing its energies to the poorest of the economically active poor, Opportunity needed to provide more opportunities for women — the vast majority of the poor. The Women’s Opportunity Fund has been an important business incubator for Opportunity International in other ways as well. Consider the Trust Bank group-lending program, which became its hallmark achievement. Launched in 1991 as a pilot with 23 extremely poor women in an El Salvador slum, the Trust Bank model became Opportunity’s primary lending methodology. In the same way, the Women’s Opportunity Fund shaped the direction of Opportunity’s Client Impact Information Management System (CIIMS), so that the needs of women clients would not be overlooked.
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Poor women face unique challenges as a result of cultural prejudice and discrimination. Those challenges require specialized indicators of transformation, which CIIMS has provided. For example, while increased loan size or profits may be useful statistics for both men and women, metrics regarding literacy, decision-making ability and self-confidence are more relevant to the empowerment needs of women. “We knew that our programs were transforming women’s lives, but we weren’t content until we could define and measure this transformation,” says Julie Hindmarsh, board of directors member and Women’s Opportunity Fund committee member. The Women’s Opportunity Fund also provided the essential financial backing for CIIMS, led by a leadership gift from Karol Emmerich, former Opportunity board of directors member and current Board of Governors member. Soon, several other donors and friends joined her in giving to the project. “A lot of people were passionate about keeping us focused on the transformation happening in our clients’ lives,” says Susy Cheston, senior vice president for policy, executive director emeritus of the Women’s Opportunity Fund and an early proponent of Opportunity’s impact-assessment effort. “We had confirmed the value of our impactmonitoring system during pilots in different countries, but we didn’t have the financial or technical means to do this work in an ongoing way. The Women’s Opportunity Fund provided the funding and made a long-term commitment to create something that would be functional and cost-effective. No one had ever done anything like this before, so we were pioneers.” By embracing challenges over the course of its history, Opportunity International and the Women’s Opportunity Fund have shown that while heeding Jesus Christ’s call to serve the poor may not be easy, the results are well worth the effort. ●
BOARD OF GOVERNORS For more information about the Board of Governors, visit www.opportunity.org/BOG
Friends sharing good news with friends wo years ago, when Maureen Kirsch mentioned to a friend that she was interested in learning more about microfinance, she had no idea where it would lead. Within 12 months of first hearing the words Opportunity International, Maureen boarded a plane for Romania to see Opportunity’s work firsthand. She then hosted an event at the Metropolitan Museum of Art in New York City to tell her friends about microfinance and the work of Opportunity International. No doubt Maureen was on an accelerated track, but she also had encouragement from her friend and Opportunity Board of Governors member, Suzanne Diamond. Suzanne lives in California and flew to New York to help her friend share Opportunity’s story at the museum. It’s no surprise that at last year’s Opportunity International Board of Governors Conference, Suzanne received the 2005 Governor Servant Leadership Award for her willingness to always go the extra step to help Opportunity. With Suzanne’s encouragement, Maureen also attended the 2005 Board of Governors conference and is already making plans to attend again October 27-28, 2006. “I was so impressed with the people involved with Opportunity,” Maureen says. “After meeting them and hearing them speak, I knew that I wanted to be more involved with this organization. “The conference exceeded my expectations and inspired me to do more to introduce my friends to Opportunity.” Maureen also appreciated receiving the Opportunity
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International Volunteer Toolkit — a comprehensive guide to introducing others to Opportunity’s work — which was given to all who attended the annual governors conference. Afterward, Maureen quickly put the toolkit to use when she hosted an event for an Opportunity International staff member from Zambia. With the help of yet another friend, Nancy Solomon, Maureen opened her apartment on Fifth Avenue in New York City for the event. The Opportunity story struck home with people’s hearts that night. Even Maureen’s housekeeper, from Ecuador, made a $25 donation in response. What’s next for Maureen? She is currently preparing to travel with a group of friends to Peru to introduce them to Opportunity’s work. From one friend to another, Opportunity’s story travels and touches hearts, which leads to changed lives all over the world. ●
EDITOR Laura Reilly DESIGN & PRODUCTION Journey Group, Inc. THE OPPORTUNITY MISSION is to provide opportunities for people in chronic poverty to transform their lives. OUR STRATEGY is to create jobs, stimulate small businesses and strengthen communities among the poor. OUR METHOD is to work through indigenous partner organizations that provide small business loans, training and counsel. OPPORTUNITY INTERNATIONAL’S COMMITMENT is motivated by Jesus Christ’s call to serve the poor. STATEMENT OF INTENT REGARDING POVERTY AND WOMEN Opportunity International–U.S. strives to reach the world’s poorest people through its microenterprise development programs. Recognizing that the large majority of the world’s poorest are women and that they contribute decisively to the well-being of their families, Opportunity makes it a priority to support programs that serve the particular needs of women. OPPORTUNITY INTERNATIONAL SERVES women and men of any faith and no faith.
Board of Governors member Maureen Kirsch, left, interacts with an Opportunity client in Romania.
INSIGHT TRIP 2006 CALENDAR Governors Insight Trip to Ghana Peru Insight Trip
IMPACT is a bimonthly publication of Opportunity International, 2122 York Road, Suite 340, Oak Brook, IL 60523 800.793.9455 www.opportunity.org
September 8-16, 2006 October 29-November 1, 2006
For more information, contact Wendy Cox at 800-793-9455 x4180 or wcox@opportunity.org.
OPPORTUNITY INTERNATIONAL HAS PARTNERS in Albania, Bulgaria, China, Colombia, Croatia, Dominican Republic, East Timor, Egypt, Ghana, Honduras, India, Indonesia, Macedonia, Malawi, Mexico, Montenegro, Mozambique, Nicaragua, Peru, Philippines, Poland, Romania, Russia, Serbia, Uganda, Zambia and Zimbabwe. © 2006 by Opportunity International
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