MicroSave Toolkit: Strategic Business Planning for Market-Led Financial Institutions

This toolkit explains the process of strategic business planning for microfinance institutions to operate successfully in a dynamic market scenario. The guide explains how to undertake strategic business planning through a series of 19 steps:

• Step 1–3: define/refine the organizational mission, vision and value which are at the core of the business strategy;
• Step 4–7: help diagnose MFIs strategic position. These steps can be used to conduct market analysis, competition analysis and survey the macro-environment;
• Step 8–9: explain strategy formulation and the use of SWOT analysis;
• Step 10: explains how to develop financial projections;
• Step 11-12: suggest procedures to develop MFIs business plan through KOGMA (Key Objectives, Goals, Measures/targets and Activities) analysis. KOGMA analysis provides a participatory method for strategic planning, thus creating better “buy-in”. It improves tracking and management of gaps in implementation and provides a measurable and manageable basis for performance evaluation;
• Step 13-16: suggest ways for performance measurement and activities analysis;
• Step 17-19: suggest ways to communicate the strategic business plan effectively at all levels within the organization. The document also suggests ways to develop tracking systems to monitor progress and compile management information and finally carrying out periodic assessments.

The toolkit suggests that MFIs should make use of the strategic business planning process to make more informed choices and decisions, set future directions, establish priorities, allocate limited resources, improve operations and monitor results.