Paper

Capacity Building: How to Have a Winning Organisation

Presented at "Strengthening MFIs in developing countries" Nov. 29-Dec. 1, 2006, Luxembourg
Download16 pages

This paper aims to answer the question: "How can we engage the positive potential of all employees towards transforming a microfinance organization (MFO) on a continuous basis?"

The paper bases its answers on the following premises:

  • People should be intelligently involved in changing their workplace;
  • There should be a systematic approach to change and an understanding of the interdependencies within an organization.

The paper proposes ten important ways in which an MFO can align itself to the standards that characterize world-class operations. They are goal-setting, client focus, organizing the workplace, visible measurement systems, best operating practices & continuous improvement, teamwork, staff empowerment, rewards and recognition, purposeful communication, continuous learning.

The paper states that MFIs should have:

  • Goals that are be few, simple, actionable by everybody in the business, constant and measurable;
  • A client focus by establishing written service standards, valuing complaints and getting client issues on the agenda of the board;
  • A realization of the value of organizing their workplace;
  • Performance measures and display them publicly;
  • A focus on "best operating practices" and on constant improvement;
  • Teamwork by transforming "managers" into "team leaders" and "departments" into "teams";
  • "Self appraisals" for staff;
  • Rewards and recognition through appropriate pay structures, benefits and recognition schemes;
  • Proper communication through notice boards and "start-of-the-day" meetings;
  • Continuous learning through staff training programs.

About this Publication

By O'Reilly, M.
Published