People Management

Edited by Foxit PDF Editor Copyright (c) by Foxit Software Company, 2004 - 2007 For Evaluation Only.

CONCURRENT WORKSHOP SESSIONS Friday, July 25, 2008

11:00 a.m. - 12:30 p.m. The People Management Paradigm in Microfinance

Auditorium Zone C

Successful microfinance operations largely depend on careful attention to the development of human resources. Managers must ensure that appropriate HR systems are in place to continuously upgrade knowledge, skills and competencies to raise organizational performance. This session will explore how ABS-CBN Bayan Foundation transformed itself from a microfinance institution into a “Servicer of Servicers”. It established the Bayan Academy for Social Entrepreneurship and Human Resource Development (BASE-HRD) to house the different course offerings of Bayan and enhance the quality of human resources of microfinance institutions. Internal trainings include the ETHICS Boot Camp and Leadership Development Program. Entrepreneurship and management education courses for external partners were also developed. The courses for MFIs and other external partners include: Grassroots Entrepreneurship and Management Program, Licensable Academic Programs, and Professional/Management Certificate Courses. These courses are aimed at democratizing entrepreneurship and management education. Resource speakers: Dr. Eduardo A. Morato, Jr., President ABS-CBN Bayan Foundation, Inc.

Facilitator: Jeffrey Ordoñez Mindanao Microfinance Council

Documenter: Jacklord Rubillar Mindanao Microfinance Council

THE PEOPLE MANAGEMENT PARADIGM IN MICROFINANCE Powering Innovations in Microfinance Conference on Microfinance Asian Development Bank, Manila, Philippines July 24-25, 2008

By Dr. Eduardo A. Morato, Jr. President, ABS-CBN Bayan Foundation, Inc.

Environmental Trends and their Human Resource Implications

ENVIRONMENTAL TRENDS y Information Explosion and the Digital Age

HUMAN RESOURCE IMPLICATIONS y Knowledge is a commodity y Higher Order Thinking y Higher Order Skills are more important

ENVIRONMENTAL TRENDS

HUMAN RESOURCE IMPLICATIONS

y Globalization of markets, of production, of labor

y Cultural and workforce diversity

y Easier cross-border transactions

y Organizational flexibility y Tolerance for ambiguity, alternative systems

ENVIRONMENTAL TRENDS

HUMAN RESOURCE IMPLICATIONS

y Disaggregation of Supply to Market Chain

y Specialization and outsourcing

y Dispersion of Area

y Continuously changing organizational configuration

y Distribution of Functions

y Multiple transactions and deals with changing partners.

ENVIRONMENTAL TRENDS

y Technology changes and Innovation are happening very fast

HUMAN RESOURCE IMPLICATIONS

y Changing competencies y Multi-technology, multiskilling y Job enlargement and enhancement

ENVIRONMENTAL TRENDS

y Individuation y High Consciousness y Search for Self and Spirituality (versus religiosity)

HUMAN RESOURCE IMPLICATIONS y Personalized/ customized services y Human rights, privileges and happiness y Work life balance y Corporate Social Responsibility y Community Orientation y Self Mastery skills

ENVIRONMENTAL TRENDS

y Whole Brain Management and Recognition of Multiple Intelligences

HUMAN RESOURCE IMPLICATIONS y Fit Brain Preferences and Individual Personalities to Brain Requirement of the Job y Broader brain repertoire needed y Personality and person development are more needed

ENVIRONMENTAL TRENDS y Alliance Building, Networking, Mergers and Acquisitions, Franchising and Licensing, Partnering, Outsourcing and Subcontracting

HUMAN RESOURCE IMPLICATIONS y Multi-organizational Human Resource Systems y Sharing services, sharing people, sharing work y Lateral (rather than vertical or hierarchal) people management

The Future Directions of Human Resource Management

From PERSONNELING From HR MAINTENANCE MANAGER AND POLICY GUARDIAN

to

TOTAL PEOPLE MANAGEMENT

to

TRANSFORMATIONAL LEADERSHIP AND CHANGE AGREEMENT

From COMPETENCE BUILDER AND ENHANCER

to

From MANAGING THE INTERNAL ORGANIZATION

to

MANAGING NETWORKS AND EXTERNAL ORGANIZATIONS

From SINGULAR STAKEHOLDER PERSPECTIVE

to

Multi-Stockholder Perspective: Community, Environment, Society Organizational and Individual Perspective

From INTRA-ORGANIZATIONAL

to

INTER-ORGANIZATIONAL

ORCHESTRATOR OF CONTINUOUSLY

LEARNING ORGANIZATION

Human Resource Management Tensions

HIGH TECH GREATER TECHNOLOGY

HIGH TOUCH GREATER SERVICE

HIGH LEVEL OF COMPETENCE (Knowledge, Skills)

HIGH LEVEL OF CHARACTER (Values, Attitudes)

RESULT-DRIVEN (Impersonal Outcomes)

PROCESS-ORIENTED (Harmonious Means)

STANDARDIZATION (One Right Way)

INNOVATION/FLEXIBLE SYSTEMS (Many Possible Ways)

ORGANIZATION (One for All, All for One)

INDIVIDUAL PERSONS (One by One by One)

FORMAL SYSTEMS AND PROCEDURES

CULTURE AND INFORMAL BEHAVIOR/PRACTICES

COMMAND AND CONTROL

EMPOWER AND ENERGIZE

ABS-CBN Bayan’s People Management Paradigm

STRATEGIC Role: HRM as Strategic Partner In Strategy Execution Linking Business Strategy with Human Resource Management Strategy Outcome: Successful Strategy Implementation

Role: HRM as Change Agent for Continuous Transformation Creating Corporate Culture to Attain Vision, Mission and Objectives Outcome: Organizational Transformation towards Goal Congruence

SYSTEMS

PEOPLE

Role: HRM as Administrative Expert Linking HRM Systems with Corporate Competitiveness, Administrative Policies, Processes and Procedures that Enhance Quality and Reduce Costs Outcome: HR Systems/Infrastructure Aligned with Business Strategy

Role: HRM as Employee Champion Motivating People in Organizations, Increasing Employees’ Productivity and Contribution to the Organization Outcome: Highly motivated, Highperforming employees

OPERATIONAL

Eight R’s of Effective Human Resource Management

The Making of ABS-CBN Bayan Foundation as a Social Enterprise and the New People Paradigm

OLD BAYAN

E C N A N I F O R M IC

NEW BAYAN (2006)

MICROFINANCE PLUS PLUS

REPOSITIONING OF BAYAN MICROFINANCE AS WEALTH CREATOR, FAMILY FORMATOR AND WORK GENERATOR ENTREPRENEURSHIP FOR WEALTH CREATION Livelihood and Enterprise Development and Expansion

WEALTH ƒFormation of CREATOR

Program for strengthening multipurpose functional families in coops for credit context of Family and work Livelihood and services Enterprise ƒWorkers’ BAYAN Development Servicers as AS MFI Enterprise

JOB GENERATOR

FAMILY FORMATOR

Family members’ skills Worker Skills and Values for and values Decent Work development

WORK AS PROVIDER OF DECENT LIFE

Family Solidarity and Mutual Support Systems for Livelihood, Education, Health and Values

FAMILY AS FOUNDATION FOR COMMUNITY BUILDING

Bayan’s Strategies

2006 and beyond

Fix at Six (2006) Competence at Seven (2007) Transfigurate at Eight (2008) Align at Nine (2009) “Leaven Bread at Ten Ahead” (2010 & beyond)

Bayan’s Overall Performance

2005-2007

Wealth & Debt Ratios (Dec 2005 - Dec 2007) 30%

800%

743%

700%

25%

600% 500%

518% 393%

400% 300%

16%

15%

11% 10% 10%

200% 100%

20%

9%

3%

10% 5% 0%

0%

2005 Asset/Lopez Equity Ratio

2006 Return on Assets

2007 Borrowing/Asset Ratio

Scale, Outreach and Manpower (Dec 2005 - Dec 2007) 60,000

60,000

466

49,570 50,000 44,776 40,000

500 450 400 350

311

300

290 30,000

250 200

20,000 10,000

150 100 20

20

33

0

50 0

2005

2006

No. of Clients

No. of Branches

2007 Total Manpower

Loans & Savings Portfolio Growth ( Dec 2005- Dec 2007) 310

310

260 210

178

160 114

110 60

119 84

64

10 2005 2006 Clean Loan Portfolio

2007 Savings Portfolio

Loan Portfolio Quality Ratios (Dec 2005 - Dec 2007) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

97%

16%

97%

97%

11% 6%

13%

2005 Repayment Rate

6%

10%

2006 Past Due Rate

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

2007 PAR Rate

Productivity & Profitability Measures (Dec 2005 - Dec 2007) 74 70

57

60 50

40

40

32

28

30

4.00

20 10 0

1.00 6

2005 Net Surplus

0.28

2006 Operating Surplus

2007 Performance Incentives

20 18 16 14 12 10 8 6 4 2 0

The Transformation of ABS-CBN Bayan Foundation, Inc.

OLD BAYAN Microfinance

NEW BAYAN PROGRAM SERVICES

Microfinance Operations Enterprise Development Family Formation Technical and Livelihood Training Enabling Network for the Upliftment of Filipino Families Area and Industry Development for Entrepreneurship Health, Employment and Livelihood Program Pacific Rim Integrated Development Effort

SUPPORT SERVICES

Human Resource Department Finance Department Physical Assets and Administrative Processes Management Information System

LEARNING FACILITY

Bayan Academy for Social Entrepreneurship and Human Resource Development

Career Options for SEDOs:

A Quick Look at Bayan’s Social Programs

ENUFF Enabling Network for the Upliftment of Filipino Families

ENUFF OPERATIONAL FRAMEWORK

GEM TEM TLC-C LMMD

MBA-MEM

BS ENTREP

HS ENTREP

AIDE Area and Industry Development for Entrepreneurship

MICROFINANCE/AIDE Enhance Operation/ Internal Capacity on Area, Industry & Enterprise Development

Conduct Baseline Studies on Education & Health

Improve Human Development Index

Area Visibility and Presence Strategy

Improve Bayan sustainability

AIDE AIDE MICROFINANCE

Convergence Strategy

MICROFINANCE

Area and Industry Assessment

Improve Enterprise and Target High Potential Clients

PRIDE Pacific Rim Integrated Development Effort

PRIDE

Microfinance Enterprise Development Social Development

HELP Health, Employment and Livelihood Program

HELP primarily aims to train members of borrowers’ families in technical and livelihood skills for employment (or selfemployment/livelihood) so that they may contribute to the total family income and bring the entire family out of poverty.

BASE-HRD Bayan Academy for Social Entrepreneurship and Human Resource Development

BASE-HRD A learning hub and a laboratory for developing new learning methodologies and technologies for teaching entrepreneurship and management and for developing innovative learning materials that cater to the entrepreneurial poor

Bayan’s Four People Managers and their respective R’s

2006

2007

2007-2008

Whole Brain Learning System & Self Mastery Approaches in Managing People

Seven Self Mastery Skills

Cross Function of Brain Preferences/Personality Types and Functional Areas

Bayan’s Different Functional Units within the Whole Brain Learning System and the Seven Self Mastery Skills

The People Management Experience in Operations

THE ETHICS BOOT CAMP Recruiting with Values

THE ETHICS BOOT CAMP Bayan’s recruitment process for CHARACTER The second screening mechanism for new SEDOs after PMT screening A five day outdoor experiential course designed to inculcate Bayan’s “ETHICS”:

Equity Transparency Harmony Integrity Compassion Stewardship

After the training, the trainor assesses the participants and makes proper recommendations if he or she will proceed on the next training After six (6) months, they will be further evaluated based on their actual behavior in the field They will be ranked accordingly All of the ETHICS Boot Campers are now Probationary SEDOs

FORMULA OF SUSTAINABILITY IN OPERATIONS

Sample Required Competencies and Expected Outputs of a SEDO ACTIVITY

Area Survey

TECHNICAL COMPETENCIES

ƒ

ƒ

ƒ

ƒ

Ability to gather useful information through: meeting key people, interviews and observation on actual visits Ability to accomplish community and business mapping that will capture data helpful in assessing the potential of the area to yield at least one Buklod Ability to identify growth potential of livelihood enterprises within communities. Ability to analyze data and maps and make recommendations on the potential of the area to yield at least one Buklod (with at least 30 members)

BEHAVIORAL COMPETENCIES

ESSENTIAL CHARACTER/

TRAITS

EXPECTED OUTPUT

Planning and programming

Structured Potential Area Survey Thinker

Interpersonal Effectiveness

Organized

Report

Tenacity Communication and influence Results Orientation

Perseverance

Sample Required Competencies and Expected Outputs of a SEDO ACTIVITY

Nurturing Clients into Entrepreneurs

TECHNICAL COMPETENCIES ƒ

ƒ

ƒ

ƒ

Knowledge and understanding of Entrepreneurship concepts Ability to identify, coach and mentor High Potential clients (HPCs) Ability to determine actual financing gaps in the business of a client. Ability to apply entrepreneurship concepts by coaching and mentoring clients in enterprise development.

BEHAVIORAL COMPETENCIES

Planning and Programming

ESSENTIAL CHARACTER/ TRAITS

Stewardship Accountability

Communication

and influence

Tenacity

Emotional and Resourcefulness Social Intelligence

EXPECTED OUTPUT Clients moving on to the next level of business

Profile of a Performing SEDO MBTI Profile

Enneagram Type

• Warm-hearted, conscientious, and cooperative • Want harmony in their environment; work with determination to establish it • Like to work with others to complete task accurately and on time • Loyal, follow through even in small matters • Notice what others need in their day-by-day lives and try to provide it • Want to be appreciated for who they are and for what they contribute

THE LEADERSHIP DEVELOPMENT PROGRAM (LDP) Competency Based on Strategies, Programs, Activities &Tasks (SPAT)

THE LEADERSHIP DEVELOPMENT PROGRAM (LDP) Bayan has established Competency models for all its positions in order to identify the capability requirements of performing at the level required by its vision and mission The goal is to develop a talent pool that will help the organization meet its strategic requirements in the planning period

Competencies Targeted and Assessment Methods Used Oral and written responses are rated according to the answer keys for every main assessment exercise Five-point scale to rate the competency level of participants per exercise 54321-

Much more than Acceptable More than Acceptable Acceptable Less than Acceptable Unacceptable

Individual Development Plans (IDPs) Contain strengths, areas for development as well as recommended development activities for employees to close competency gaps for future roles in management The ultimate goal of the LDP process is to ensure that the identified hi-potential talents of Bayan continually harness their strengths and work on their developmental areas In 2009, the Routing process will be gradually cascaded to the rest of operations, and in 2010, it is planned that all Bayan employees will have full accountability and participation in enhancing their capabilities and growing their future in the company

CAREER PATHING The Four Career Tracks

The Four Career Tracks MANAGERIAL TRACK

ENTREPRENEURIAL TRACK BAYAN EMPLOYEE

TECHNICAL TRACK PERFORMANCE TRACK

MANAGERIAL TRACK

Where people followed the hierarchical route from rank and file to officer to assistant manager or branch manager, enroute to higher positions like managers, regional managers, and directors

TECHNICAL TRACK

Pertains to technical personnel who do not have the inclination to move up to managerial positions but would like to become specialists in one or two functional areas of a given field and to be trained along their chosen area/s of expertise

PERFORMANCE TRACK

An approach that addresses the need of personnel who will choose to remain in their present work assignments, to grow and develop on the job

ENTREPRENEURIAL TRACK

This phase hopes to prepare employees who, in the future, would want to establish their own enterprise or are planning to retire from ABS-CBN Bayan Foundation

The ABS-CBN Bayan Academy for Social Entrepreneurship and Human Resource Development (BASE-HRD)

Entrepreneurship Management Education

The Three Tiers of Entrepreneurship Management Education

LEVEL 3 LEVEL 2 LEVEL 1

FIRST TIER (LEVEL 1): The Grassroots Entrepreneurship and Management (Entrep-Eskwela) & Technical and Livelihood Courses on Communities (Sanayan Pang Hanap-Buhay at Kabuhayan)

HTS: G I L H G I H M GE

r u ns g in in a r T ’ s r raino • Six GEM T nsees e c li M E G yan a 3 is •1 V d n a h s , Engli o in ip il F M E •G versions d into e t la s n a r t g bein • Currently , a nd n o n y a ig il H o n, Maguindana Bicolano

TLC-C HIGHLIG HTS: • Commercial c ooking courses in partnership wit h TESDA since June 2008 • Program now on its 2nd of 10 batches of par ticipants • Successful pa rticipants given Commercial Co oking National Certificates

SECOND TIER (LEVEL 2): Franchisable/Licensable Academic Programs BS Entrepreneurship Master in Business Administration • Now on its 2nd year in Assumption Major in Entrepreneurship and College with focus on Women Entrepreneurship and Community Microfinance (MBA-MEM) • Piloted in partnership with UMAK in 2007 • Currently running its 2nd batch in UMAK, simultaneous with the first offering of the program by Central Philippine University in Iloilo City and Capitol University in Cagayan de Oro City

Development • Also being offered to Colegio San Agustin-Bacolod with focus on Social Entrepreneurship

Basic Education Entrepreneurship • Currently on its pilot run at Elizabeth

Seton School (ESS) • Shall be transferred to other interested schools

THIRD TIER (LEVEL 3): Professional Management Education in Entrepreneurship and Microfinance Programs Faculty Capability Building Program (FCBP) • Contains two modules: Learning

Methodologies and Materials Development (LMMD) and Teaching Entrepreneurship and Management (TEM) • For 2008, four FCBP runs were implemented in Manila, Bicol, Iloilo and Cagayan de Oro with a total of 198 participants from 62 institutions

Professional/Management Certificate Courses (PMCC) • Offered starting May 2008 • Six PMCC runs already concluded with topics on: • Strategic Planning and Management • Strategic Implementation and Resource Mobilization • Eight R’s of Effective Human Resource Management • Finance for All • Community-based Social Enterprise Development • Effective Branch Management •Total of 182 participants from 46 organizations (18 private organizations, 11 MFIs, five (5) academic institutions, five (5) banks, five (5) NGOs, and two (2) LGUs)

ABS-CBN Bayan Foundation, Inc. Now and Beyond

VISION We, the able stewards of Bayan, envision a happy, healthy and wealthy Filipino nation built on the strength of enterprising families, caring communities and progressive industries.

MISSION We pledge to uplift the lives of Filipino families to ensure the total well-being of their children We pledge to foster the formation of viable enterprises, the forging of competitive industries and the convergence of area forces and resources. We pledge to be the premier servicer of servicers as we weave a potent network of nation builders. We pledge to be the role model in social entrepreneurship and the exemplary stewards of sustainable philanthropy.

OBJECTIVES To improve the quality of lives of the families and communities we serve. To be a major national, regional and global force in the movement to democratize entrepreneurship and productive education. To be the most prominent face of Kapamilya corporate social responsibility. To be one of the best managed social and enterprise development institutions in the world.

SOCIAL & ENTERPISE DEVELOPMENT INSTITUTION

Towards democratizing entrepreneurship and education…

…and building the nation from below.

THANK YOU!

POWERING INNOVATIONS IN MICROFINANCE conference on microfinance July 24 - 25, 2008 * Asian Development Bank, Manila, Philippines

Edited by Foxit PDF Editor Copyright (c) by Foxit Software Company, 2004 - 2007 For Evaluation Only.