Leading Growth in MFIs: Key Attributes and Characteristics

This paper highlights the vital role that leadership plays in the growth of an MFI. It presents the framework that Unitus uses to define and assess leadership in potential partner MFIs. Unitus Capacity Assessment Tool analyzes an MFI’s readiness for acceleration and serves as a framework to identify the components necessary for accelerating growth.

Unitus uses Unitus Acceleration Model to select high-potential MFIs that it thinks have the capacity for rapid growth. It then forms a 5-7 year partnership with them to help reach their maximum growth potential. Unitus has identified several criteria for selecting MFI partners. One of the most important criteria is visionary leadership. Key points in the paper include:

• Visionary leadership includes a vision for growth and poverty alleviation, and a skilled management;
• Unitus Capacity Assessment Tool focuses on institutional strengthening, broadening geographic outreach, and deepening market penetration;
• It narrows down and specifies critical competencies within each area that describe the specific position, system or function that drives growth;
• MFIs must understand their market as well as current and potential client needs, and develop products accordingly, in order to reach the above three targets.