curriculum framework report curriculum framework report may 2002

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Curriculum Framework Report CURRICULUM FRAMEWORK CURRICULUM FRAMEWORK REPORT REPORT MAY 2002 MAY 2002

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Page 1: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

Curriculum Framework Report

CURRICULUM FRAMEWORK CURRICULUM FRAMEWORK REPORTREPORT

MAY 2002MAY 2002

Page 2: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

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Contents

Introduction International best practice Training delivery mechanisms Curriculum content Recommendations on skills programmes / learnerships Overall conclusions Implementation plan Pre-project decisions Next steps

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Focus of the curriculum framework assignment

The curriculum development assignment focuses on understanding the skill needs of micro financiers, and development of a plan to close the skill gaps

Stakeholder capacity building plan *

Develop a plan to increase awareness, interest and understanding of skills development legislation and BANKSETA Micro finance project

Identified more than than 122 different stakeholders Interviewed 48 stakeholders Created a Communication Plan, Stakeholder Matrix

and Capacity Building Plan

Unit standards and micro-lender qualifications review

Assess required unit standards and qualifications Assessed existing banking unit standards and unit standards developed by some of the training providers as an input into the survey

Learner needs analysis and profiles*

Assess existing skills and capabilities, identify gaps and future focus areas

Developed a survey for lenders and borrowers Conducted the surveys Developed a Lender and Consumer Needs Analysis

Establishment of curriculum and consultative forum*

Identify and appoint stakeholders to participate in consultative forum

Through stakeholder interviews, members for the 2 forums were appointed

Launched the 2 forums and held numerous meetings with each

Curriculum framework for micro-lenders

Develop and agree framework with Curriculum Development Team

Reviewed training and curriculum best practices Used the results from the survey to develop a

curriculum framework that was reviewed by the Curriculum Development Team and other stakeholders

Skills programmes plan

Develop approach and plan to implement skills development iniatives

Assessed the need for a skills programme or learnership based on requirements of micro financiers

Delivery channel plan

Identify most appropriate channels to deliver skills development initiatives

Tested the most appropriate delivery mechanism for the different skill areas and included in the curriculum framework

* These deliverables are contained in other reports. This report focuses on the Curriculum Framework

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Definitions

Micro Financier An organisation (private, public or Section 21) which provides loans SMMEs or

individuals under the exemption notice to the Usury Act The determination of the amount of knowledge or skill a person has in a particular

content area

Skill The ability to repeatedly act on, or apply, basic knowledge

Delivery Channel The medium via which training is delivered in the market place e.g. face-to-face,

Distance learning

Delivery Method The medium through which learning activities are conducted such as videos, CBT’s,

internet, manuals, case studies

Curriculum Framework A set of principles through which a learning plan can be effectively implemented at

various sites of learning

Within the context of this project, the following definitions were used:

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Sector Education and Training Authority (SETA)

Established by the Dept. of Labour to help implement the NSDS and to increase the skills of people in their sector Help firms understand the benefits

of training Encourage firms to train by offering

a grant Offer services to every sector of the

economy Comprised of employer and worker

representatives

National Skills Development Strategy (NSDS)

Develop a culture of high quality life-long learning

Foster skills development in the formal economy for productivity and employment growth

Stimulate and support skills development in small business

Promote skills development for employability and sustainable livelihoods through social development initiatives

Assist new entrants into employment

SA contextThe Department of Labour has launched a strategy to partner with a number of institutions to address skills development in South Africa

BANKSETA identified a need to support micro finance organisations through skills development and other business development support mechanisms

BANKSETA identified a need to support micro finance organisations through skills development and other business development support mechanisms

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Contents

Introduction International best practice Training delivery mechanisms Curriculum content Recommendations on skills programmes / learnerships Overall conclusions Implementation plan Pre-project decisions Next steps

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Creating a learning culture

Ref: The Fifth Discipline - The Art & Practice of a Learning Organization, Peter M. Senge, 1990

A learning culture empowers people to continually expand their capability to create the desired results, and to learn how to learn together

Systems Thinking

Understanding the forces that shape the behaviour

of systems

Team Learning

Conversational and collective thinking skills

Shared Vision

Building a sense of commitment in a group

Mental Models

Reflecting upon and improving internal

pictures of the world

Personal Mastery

Learning to expand personal capacity to

create the desired results

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Learning guiding principlesBest practice research shows that the fostering of a learning environment should be a key strategic objective, and not merely a training tactic

• The learning strategy must be linked to all the organisation’s plans and initiatives Learning and human performance should be viewed as strategic in nature Skills programs must be treated as business initiatives and must be integrated with all projects

• Learning strategies must have CEO-level ownership and sponsorship Culture change begins with the leader of the organisation Frequent communication regarding learning objectives, plans, value and results is essential Support for learning must be continually demonstrated Leaders must set up processes to actively solicit and gather feedback

• Learning strategies must be implemented on a solid infrastructure The infrastructure must support innovative, effective education driving bottom line results The infrastructure must support employees in sharing knowledge and developing expectations

• Learning business partners must be carefully selected The organisation and its partners must work together seamlessly Business relationships must be transparent

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Barriers to learning success

• Implementing piecemeal solutions Implementing a small portion of a comprehensive learning solution frequently ignores the

interdependencies between the different components of learning processes and the economies these processes bring to each other

• Not defining organisation roles clearly Unclear roles and responsibilities lead to duplication of development and management efforts,

resulting in unnecessary cost Clearly defined roles for central and departmental or business unit learning organisations can

help mitigate this risk and maximise the learning organisation’s impact on the bottom line

• The focus should not just be on “Training” While training is a very visible part of learning programmes, it is important to focus on the

holistic picture of what learning is and the strategic capabilities it brings to an organisation Examples of strategic capabilities include knowledge management, information portals, and

direct access to vendor resources, job aids, and ongoing performance support

Establishing a learning culture is a lengthy process, requiring strong leadership, clear responsibilities and a holistic plan

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Learning culture processes

LEARNING CULTURE

APPROACH

MODEL

The learning organisation generates a number of different Skills programmes within the framework of its fundamental approach and philosophies

The adoption of a set of assumptions and values on which the training programme has been based

The main components on which training is based

The processes whereby the model is put into effect

The specific mechanisms used to deliver the training, e.g. lecture, video, cd

METHODOLOGIES

METHODS

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Learning culture processes

The various organisations, training providers and vendors need to be managed in terms of the quality of materials and services as well as in their ability to deliver and fulfill on promised services

An effective learning management system would need to be set up which would cater for the planning requirements, ongoing course development, curriculum requirements, delivery processes, compliance, support and external liaison

A learning process would need to be clearly defined in terms of what programme a learner would follow in order to achieve specified learning outcomes

An integrated system which will cater for performance support, knowledge sharing and the various learning tools would need to be established

Best practice shows that several areas of integration need to be set up in order to properly manage the delivery of training

An integrated model for the management of the above systems has been formulated from best practice examples

An integrated model for the management of the above systems has been formulated from best practice examples

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12©Accenture 2001 All Rights Reserved

LEARNING MANAGEMENT

Coursedevelopment

ComplianceDelivery

processesCurriculum

mgmtExternal liaisons

Org.mgmt

ORGANISATIONS

LEARNING PROCESS CONTENT

Initiation

Technical

SupervisorySkills

BusinessSkills

CorporateSkills

Other

ENVIRON-MENT

Develop-ment

StagingTesting

TrainingRegion

Production

Training Facilities

Internal training departments Corporate universities Outsourced training partners

COMM.CHANNELS

DELIVERY CHANNELS

Desktop

Classroom

Learning center

Training division

Career maps

Competencymodels

Communicationtools

INTEGRATED PERFORMANCE SUPPORT

On-linedoc.

Communicate Learn Practice PerformRefine toolsmethodology

Certify

Organisational Performance Measures

Individual Performance Measures and Assessment

Advisorysupport

Onlinehelp

Taskassistant

Scenarioplanners

ScriptingExpert

systems

KNOWLEDGESHARING

Knowledgemaps

Discussionthreads

Searchengines

Agentengine

FiltersGroup

schedulingRepo-sitories

LEARNINGTOOLS

CBT Internet Intranet SimulationCollabor-

ationVirtual

ClassroomTours Modeling

Trainersupport

Materialsprod./dist.

Strategicplanning

Learning culture processesThe management of the learning process and delivery of support would require a holistic approach to ongoing management and fulfillment

Training vendors

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Learning approachA fundamental approach of combining experiential and situation learning methodologies generally delivers the most benefits

Experiential learning

• The learner participates completely, and has control over the nature and direction of the learning intervention

• Addresses the needs of the learner• Includes personal involvement and self-

initiated training• Learning is primarily based on direct

confrontation with practical, social, personal or research problems

• Self-evaluation is used to assess success• “Learning to learn” and openness to change

are key in experiential learning

Situation learning

• Learning occurs via social interaction and collaboration, and as a function of the activity, context, and culture in which it occurs

• Social interaction is a critical component because learners become members of a 'community of practice'

• Usually unintentional rather than deliberate• Knowledge is presented in authentic context

(i.e., the appropriate settings and applications)

Based on this fundamental approach, a number of curricula and training programmes can be designed

Based on this fundamental approach, a number of curricula and training programmes can be designed

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What is a curriculum framework?A curriculum framework provides the guiding principles within which the methodologies and delivery methods of a training programme are defined

METHODOLOGIESCase studies

LecturesVideos, etc.

DELIVERY METHODSFace-to-face learning

Distance learning

IMPLEMENTATION PLANPrototype

PilotRoll-out

CURRICULUM FRAMEWORK

Includes guidelines around: Purposes, goals and objectives of

learning* Learning outcomes* Methodology for selecting, structuring

and delivering the training content* Processes to facilitate learning* Process to assess the learners Methods of evaluating intentions,

outcomes and methods Planning and execution of the

management of the setting in which the curriculum in implemented (e.g. full-time, part-time, lectured, distance, combination)

* Completed in project design phase

Ref: Skills Development, Ian Bellis, 2001

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Curriculum framework success factorsBest practice suggests that the fostering of a “learning culture” will aid in the successful delivery of training initiatives

• Curricula must have a clearly defined vision, mission and goals

• Training should be modular and outcomes based

• Training content must be relevant to the trainee, and be based on trainee needs

• Training standards, systems and models must be clearly defined

• Curricula should offer a choice of training content and delivery mechanisms

• Training must be prioritised, addressing the most pressing needs first

• Training should be delivered at a convenient time, and in a convenient manner

• Registering for training should be easy for the trainee

• Feedback must be obtained from trainees to continuously improve programs

• Skills-based learning and people interfacing skills should ideally be facilitated through a face-to-face delivery channel to cater for questions and problem-solving

A curriculum framework should be flexible enough to incorporate a number of different means for developing and delivering training

A curriculum framework should be flexible enough to incorporate a number of different means for developing and delivering training

Ref: Training from Scratch, Nancy Kuhn,

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Curriculum framework barriers to successSignificant barriers to curriculum success exist, which may significantly undermine the successful adoption of the curriculum by the micro finance industry

• Lack of a cohesive approach to the deployment and delivery of training and development initiatives

• Lack of ownership and buy-in for training and development

• Lack of incentives to take advantage of the learning initiatives and to generate demand for training

• Often supply-driven and delivered in a top-down fashion, rather than from the target audience needs

• Training should be business-oriented, and not viewed as an extension of the basic general educational system

• Training services are not always accessible to the target audience

• Must be delivered via a suitable, convenient medium

• Geographic dispersion must be taken into account when planning the delivery of curriculum content

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Contents

Introduction International best practice Training delivery mechanisms Curriculum content Recommendations on skills programmes / learnerships Overall conclusions Implementation plan Pre-project decisions Next steps

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Training delivery principles Two main types of training delivery have been proposed, namely Distance learning and face-to-face delivery

Description Advantages Disadvantages

Distance learning

Knowledge-based

Delivery media include videos, internet, CDs, etc.

Controlled, consistent content

• Effective for large groups or multiple locations

Does not required trainer/trainee travel

Can contain large amounts of material

Accessible at learner’s convenience

Require suitable infrastructure to run training (e.g. computers for CBTs)

May be difficult to disseminate

May be difficult to update material (CDs or videos, does not apply to internet)

Limited bandwidth may be result in slow delivery

FACE-TO-FACE learning

Skills-based

Delivery media include classroom, mentoring, apprenticeships, etc.

Easily customised and revised

Quickly developed

Minimal development costs

Trainees can ask specific questions

Slow learning rate

Inconsistencies from class to class

Scheduling often presents difficulties

Difficult to control and monitor

Micro financiers may be reluctant to make use of long-term classroom type learning due to work pressures. It is therefore important that consistency of

training content is provided through both distance and face-to-face channels

Micro financiers may be reluctant to make use of long-term classroom type learning due to work pressures. It is therefore important that consistency of

training content is provided through both distance and face-to-face channels

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Training Delivery Channels – face-to-face learning

Channels Classroom Training Workshops Seminars

Advantages Instructor adapts to specific audience needs Quickly developed Actual tasks can be simulated Allow exchange of ideas, elaboration of

content, feedback Conveys common message

Group or applied problem-solving applications

Content may be unique or tailored to group needs

Encourage collaboration, networking, and sharing of war stories

Experts present information to large groups of people in one location

Allows for networking Reinforces culture, etc. Motivational, depending on the presenter

Disadvantages Content is potentially unstable/changing Resource availability may be a factor for

regional delivery Practice opportunities linked to case-study

materials, not necessarily linked to actual job

Content is one-time message High risk of getting competency wrong

Content is a one-time message Individual feedback may be limited Individual participation is limited, Can’t assessment competence

When to use In large groups at regional training sites Instructor as an expert, facilitator, and role

model

Can be conducted to solve a group problem; develop group process skills

Small groups at local office or regional site

Disseminate common information from "the" experts to a large group at a regional training site

One-time message

Cost / Development time

80-100 hours per hour of delivery Low development cost R350 per hour of development time

80-100 hours per hour of delivery Low development cost R350 per hour of development time

80-100 hours per hour of delivery Low development cost R350 per hour of development time

Recommendation Should be used where skills levels are low and perceived importance is high – especially where skills-based learning is called for

Should be used to develop “Hot-skills” for the industry and to disseminate best practices

Should be used to disseminate topical and industry best practice information and develop “Hot skills” for the industry

There are three key face-to-face delivery channels: classroom,workshops and seminars

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Training Delivery Channels – face-to-face learning

Channels Coaching Mentoring Role Play

Advantages Inexpensive to develop High transfer of knowledge Directly relevant to trainee’s job Trainees interact with coworkers

Inexpensive to develop High transfer of knowledge Directly relevant to trainee’s job Trainees interact with coworkers

Student demonstrates a skill in a simulation of the real situation

Apply knowledge and skills by demonstrating

Encourage collaboration, networking, and sharing of war stories

Immediate feedback is provided

Disadvantages Training may be inconsistently delivered Difficult to control/monitor Requires workers to be teachers Can disrupt regular workflow

Training may be inconsistently delivered

Difficult to control/monitor Requires workers to be teachers Can disrupt regular workflow

Training may be inconsistently delivered

Difficult to control/monitor

When to use On-the-job training On-the-job training In small groups at regional training sites

Cost / Development time

15-60 hours per hour of delivery Low development cost R350 per hour of development time

15-60 hours per hour of delivery Low development cost R350 per hour of development time

15-60 hours per hour of delivery Low development cost R350 per hour of development time

Recommendation Could be used to disseminate skills and knowledge obtained from seminars, workshops and experience to staff members who are new to their role or to the organisation. Coaching could also be used as a means of informal assessment of learners

Subject matter experts could be used to consult on best practice and up to date views on “Hot Topics” and problem solving

Could be used where people interaction skills are required e.g. in Client service scenario where the learner may need to develop practical techniques of how to deal with difficult clients

Coaching and mentorship are cheaper alternatives for face-to-face, but may lack consistency of approach and may fail due to lack of sustained support

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Training Delivery Methods – distance learning

Methods Simulation Training CBT Video Tape

Advantages Student demonstrates a skill in a simulation of the real situation

Immediate performance feedback

Consistent delivery; learner controlled; flexible completion times/places

Individualized feedback Easy to track performance Available on demand Individualised self-paced instruction Content relatively stable Can contain large amounts of information

Leverage "experts" time Consistent delivery Reduce travel costs to meetings, etc. Capture a "real" event Content relatively stable Interaction or feedback is not necessary Flexible delivery times; could be viewed at

home

Disadvantages Can be expensive to develop Long development cycle May require high-tech equipment to run

Can be costly to update and produce Require necessary hardware to run

training Updates require burning new CBTs

Expensive to produce and update Requires necessary equipment to run

training Updates require development of new

videos

When to use When in-depth problem-solving, decision-making and application of skill is required

Individually at local office / home In large groups and / or multiple locations Individually at local office / home

Cost / Development time

300-600 hours of development per hour of delivery

High development cost R350 per hour of development time

300-600 hours of development per hour of delivery

High development cost R372 per hour of development time

300-600 hours of development per hour of delivery

High development cost R372 per hour of development time

Recommendation Should be used for very complex decision-making and problem solving skills areas such as finance and risk management to accurately reflect a work scenario

Should be used extensively as a parallel medium to emulate face-to-face delivery. Should be used where the practicing of skills is required

Should be used extensively as a parallel medium to emulate face-to-face delivery. Should also be used where emulation of behaviours or skills are required

Simulation training, CBT’s and Videos could be used as complimentary as well as parallel delivery methods to face-to-face channel methods

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Training delivery methods – distance learning

Methods Paper-based/Electronic Manuals Interactive multi-media Internet

Advantages Consistent delivery Portable Learner-controlled Available on demand Expert interaction not required for elaboration Reduced travel costs

Combination of sound, graphics, text and video on a computer

Safe practice of skills Simulate actual tasks Stable content Interactive and motivational Training can occur on demand, at point

of need Reaches large audience

Allows participants to learn at their own pace through an internal Internet site

Reduces need for trainers Material is easily updated / customised

Disadvantages Minimal feedback opportunities Expensive to revise content Generally low completion rates Content is potentially unstable Requires literate learners

Can be expensive to develop Relatively long development cycles Expensive to update

Limited bandwidth may result in slow response times

When to use Learner-controlled training that can be completed at point-of-need

Individually or in a small group Instructor-led or self-study

When the content does not require much facilitation or interaction

Individually at local office / home

Cost / Development time

80-120 hours of development per hour of delivery

Medium development cost R350 per hour of development time

300-600 hours of development per hour of delivery

High development cost R350 per hour of development time

300-600 hours of development per hour of delivery

High development cost R350 per hour of development time

Recommendation Should be used to supplement face-to-face delivery as well as a parallel medium for distance learning

Should be used as a parallel medium to emulate face-to-face delivery. Should be used where the practicing of skills is required or problem solving ability needs to be developed

Should be used to supplement face-to-face delivery as well as a parallel medium for distance learning

Should be used as the primary mechanism for distribution of content

Manuals, multimedia and the internet could be used as complimentary as well as parallel delivery methods to face-to-face delivery methods

PIENAAR:

Hidden

PIENAAR:

Hidden

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Training delivery methods – distance learning

Methods Paper-based/Electronic Manuals Interactive multi-media Internet

Advantages Consistent delivery Portable Learner-controlled Available on demand Expert interaction not required for elaboration Reduced travel costs

Combination of sound, graphics, text and video on a computer

Safe practice of skills Simulate actual tasks Stable content Interactive and motivational Training can occur on-demand, at point

of need Reaches large audience

Allows participants to learn at their own pace through an internal Internet site

Reduces need for trainers Material is easily updated / customised

Disadvantages Minimal feedback opportunities Expensive to revise content Generally low completion rates Content is potentially unstable Requires literate learners

Can be expensive to develop Relatively long development cycles Expensive to update

Limited bandwidth may result in slow response times

When to use Learner-controlled training that can be completed at point-of-need

Individually or in a small group, Instructor-led or self-study

When the content does not require much facilitation or interaction

Individually at local office / home

Cost / Development time

80-120 hours per hour of delivery Low development cost R350 per hour of development time

300-600 hours per hour of delivery High development cost R350 per hour of development time

300-600 hours per hour of delivery High development cost R350 per hour of development time

Recommendation Should be used to supplement face-to-face delivery as well as a parallel medium for Distance learning

Should be used as a parallel medium to emulate face-to-face delivery. Should be used where the practicing of skills is required or problem solving ability needs to be developed

Should be used to supplement face-to-face delivery as well as a parallel medium for Distance learning

Should be used as the primary mechanism for distribution of content

Manuals, multimedia and the internet could be used as complimentary as well as parrallel delivery methods to face-to-face delivery methods

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Strategy for delivering training

Training design and delivery should be modular

Training must be relevant to the learner, and impact their performace at work

Training development must be prioritised based on micro financier needs

Training development must be flexible, and be easy to update when required

A combination of experiential and situational methodologies should be used

A combination of face-to-face and Distance learning channels should be

used

Content should be available over multiple delivery channels

Principles guiding the delivery of training to micro financiers were developed, taking into account global best practice

Within these guiding principles, an approach to the development, delivery and management of training has been defined

Within these guiding principles, an approach to the development, delivery and management of training has been defined

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Strategy for delivering training

LEARNING AND TRAINING DEVELOPMENT

TRAINING PROVIDER NETWORK

• Downloadable training material• Access to training catalogues • Schedule of training courses

TRAINING CENTREMICROFINANCIERS

Call centre

Internet Portal

A central coordinating body, or training centre, is required to ensure efficient planning, design and delivery of training to micro financiers

The training center and the proposed BDS centre should be one entity, to ensure economies of scale

The training center and the proposed BDS centre should be one entity, to ensure economies of scale

DISTANCE LEARNING FACE-TO-FACE LEARNING

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Strategy for delivering training

INFORMATION

The training centre is responsible for the development, management and delivery of the training curriculum to the micro financiers

Online access

Phone / fax

Training CenterFRONT-office

INTERNETPORTAL

CALL CENTRE

ACTIVITIES

BACK-office

Training curriculum

Order videos, CDs, manuals

etc.

List of subject matter experts

(SMEs)

Catalogue of training material

List of training providers

Register for workshops /

seminars

Conduct online training

Register for face-to-face

training

Review and update curriculum

Portal maintenance

Certification of learners

Research new content / delivery mechanisms

Manage learner database

Coordinate trainee feedback

The training center could be outsourced by BANKSETAThe training center could be outsourced by BANKSETA

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IncentivesA significant risk to the successful delivery of training to the micro finance industry is the perceived lack of real business benefits

Involvement of micro finance practitioners in the development of the content of the training materials will the create a sense of ownership of the programme

Buy-in for the benefits of the training initiatives will be generated through a needs-driven strategy

The creation of micro finance best practices will be generated through practitioner involvement in the project and in so doing generate demand for the training

Monetary incentives in the form of skills development grants will afford micro financiers the opportunity to claim back on their skills levies paid. Qualifying employers can access up to 60% of their annual contributions for skills development under the sector grant scheme

Planning grants may be obtained through the registration of a skills development facilitator as well as the submission of a workplace skills plan

Implementation grants may be obtained through the submission of a skills development implementation report

A significant risk to the successful delivery of training to the micro finance industry is the perceived lack of real business benefits

Incentives in the form of skills development grants would be the main monetary incentives for micro finance businesses

Incentives in the form of skills development grants would be the main monetary incentives for micro finance businesses

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Contents

Introduction International best practice Training delivery mechanisms Curriculum content Recommendations on skills programmes / learnerships Overall conclusions Implementation plan Pre-project decisions Next steps

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Curriculum content overview

The majority of South African micro-finance businesses are small to medium sized businesses and it is with this in mind that the overall modular approach to the training needs of micro-financiers was taken

The contextual learning needs of a micro finance business were looked at from a small to medium sized business perspective, where every aspect of the business was seen as a training module

International business school models were applied to source the various training modules that would be appropriate to a small to medium-sized financial services business

Several Industry practitioners and stakeholders were approached for their input on the training requirements for a micro finance business. Responses from these interviews were used to add micro finance industry-specific topics to the curriculum

Existing unit standards for the banking industry were used to include loan granting aspects from a financial services sector perspective

An external subject matter expert was consulted on the overall approach and content of the curriculum framework

Workshops with the Curriculum Development team and the Consultative Forum were held to validate the approach and high level content

The curriculum content has been developed through the application of best practice models, consultation with industry experts,stakeholders as well as a learner needs analysis

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Approach overview

Qualitative Interviews with Stakeholders

Web-based Electronic Survey

Learner Needs Analysis

Curriculum Development Team Workshops

Curriculum Framework

Research Best Practice

Consultation with external SME

Over the past nine weeks, the team has been actively collecting data and consulting stakeholders on learner skills and business needs

Consultative Forum Workshops

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Curriculum content summary

Skills areas included in the content of the curriculum : Risk management

Loan book management

Client service

Legal and regulatory compliance

Cash management

Finance

Funding strategies

Business strategies

Client administration

Based upon the learner needs analysis, a high level view of the curriculum content has been established

Staff management

Complaint procedures

Service provider management

Marketing

SMME

Leadership development

Management development

Communications

Personal development

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Curriculum content summaryManagers / owners of micro finance busineses were asked to rate their level of experience and the level of importance to their business of each skill area as well as whether they had received training

• The top 5 areas of importance are ‘risk management’, ‘loan book management’, ‘client service’, ‘legal and regulatory compliance’ and ‘cash management’

• SMME lending is seen as the least important skill area by micro financiers, possibly because so few micro financiers lend to SMMEs

• Due to the predominant business action of micro financiers, it is not surprising to see risk and loan book management as the top skill areas

• The importance of client service may be driven by the highly competitive industry and the need to acquire and retain customers

Importance (%) Skill Level (%) % Received Training

Summary of Skill Areas

0

10

20

30

40

50

60

70

80

90

100

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Com

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int P

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dure

s

Servic

e Pro

vider

s

Mar

ketin

g

SMM

E

Per

cen

t

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Curriculum content summaryNon-managerial staff within micro finance businesses were asked to rate their level of experience and the level of importance to their business of each skill area as well as whether they had received training

• The top 5 areas of importance are ‘client service, ‘Risk management’, ‘staff management, ‘funding strategies’ and ‘loan book management’

• SMME lending is seen as the least important skill area by non-managerial micro financiers, possibly because so few micro financiers lend to SMMEs

• Due to the client facing role of non-managers, it is not surprising to see client service and risk management as the top skill areas

• The importance of client service may be driven by the highly competitive industry and the need to acquire and retain customers

Importance (%) Skill Level (%) % Received Training

Summary of Skill Areas

92 9086 86 85 83 83 83

78 78 7672

63 6257 58

48

70 69

44

6761

68

48

6359

75

40

0

10

20

30

40

50

60

70

80

90

100

Client

Ser

vice

Risk M

anag

emen

t

Staff

Man

agem

ent

Fundin

g Stra

tegie

s

Loan

Boo

k Man

agem

ent

Servic

e Pro

vider

s

Cash

Man

agem

ent

Client

Adm

inistr

ation

Financ

e

Lega

l & R

egula

tory

Com

plian

ce

Mar

ketin

g

Compla

int P

roce

dure

s

Busine

ss S

trate

gy

SMM

E

Pe

rce

nt

Page 34: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

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Risk management outline

The Risk Management skills area consists of four modules:

Module Definition Fraud Management The ability to minimise fraudulent transactions in your business through the establishment of

effective fraud prevention policies and procedures

Risk Management Identification and analysis of risk to the business. This includes managing the impact of interest rate changes and specific client risks

Risk and Return Analysis

Identification and analysis of risk to the business in relation to the expected returns from loans made

Client Credit Limits Setting of standard credit limits for clients

Risk management had the highest rating of importance in the learner needs analysis survey

Classroom based courses should be run to development this important skill area, supported by coaching and electronic material

Classroom based courses should be run to development this important skill area, supported by coaching and electronic material

Substantial face-to-face initiatives

to develop foundational skills in Risk Management

Supported by mentoring

programmes, coaching,

seminars and workshops

Supported by distance learning initiatives such as CBT, Manuals and web-based

learning

Recommended delivery channels and training methodologies

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35

Risk management – survey findings

The overall importance of risk management is 84% whilst the reported skill levels average 64% and 21% of respondents have received training in this area

There appears to be a high need for training in fraud management and the setting of client credit limits

There appears to be a high need for training in fraud management and the setting of client credit limits

Overall, risk management is rated as the most important skill area by micro financiers

The importance of the four risk management skills were similarly rated by micro financiers (83%-87%), as were the levels of expertise (61%-68%)

The fewest respondents had received training in fraud management (16%)

Most respondents had received training in ‘risk and return analysis’ (24%)

Client credit limits are an important skill, as this could limit the danger of borrowers becoming over-indebted and unable to repay their loans due to reckless lending. The training received in this skill is 21% and suggests a priority skill for trainingImportance (%) Skill Level (%) % Received Training

Risk Management

0

10

20

30

40

50

60

70

80

90

100

Fraud Management

Risk Management

Risk and Return Analysis

Client Credit Limits

Per

cen

t\

87

63 61

84 83

62

83

68

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36

Risk management - delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Fraud Management

Manage fraud within a micro finance business

Face-to-face

Classroom Training could be used at the beginning of the learning process to develop foundational knowledge of fraud management

Seminars and workshops could be used to showcase latest findings and trends in fraud management from experts in the industry and be offered on an ongoing basis

Coaching could be used to disseminate knowledge to new recruits into a business and could be used as a basis for informal assessment

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Case Studies on South African fraud could be developed through interviews with micro financiers who have been victims of fraud

Electronic and paper-based manuals with methods to manage and combat micro finance targeted fraud could be used to help establish content and situational knowledge of fraud management principles

Manuals could be supplemented by Instructional videos depicting real life examples of how fraud has successfully been managed within micro finance businesses in South Africa

Guest speakers from the micro finance industry could be used in classroom training, seminars and workshops to convey a sense of how fraud is practically managed in a businessDistance

Learning Electronic Information Exchanges and BDS

Web portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Risk and Return Analysis

Identify and apply appropriate criteria for calculating repayment ability in relation to expected returns from loans made

Face-to-face

Seminars and workshops could be used to establish practical skills in risk return analysis

Coaching could be used to disseminate risk and return analysis skills

Risk and return Analysis Manuals could be developed, based upon a typical micro finance business model

A CBT with a practical Ms Excel-based tool to simplify and standardise the calculation and analysis of risk and return could be developed in consultation with micro financiers

A Case study of how analysis could be applied within a micro finance business to accurately predict risk and return could be developed and could also include a business simulation model to show

A Business simulation model, showing the application of risk and return principles could be developed so that learners can practice and develop skills that can be directly transferred into their business

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

The management of risk is fundamental to the running of a micro finance business

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37

Risk management - delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Risk Management

Structure a risk management policy and procedure for a micro finance institution

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of risk management policies and procedures

Seminars and workshops could be used to showcase latest findings and trends in risk management from experts in the industry and be offered on an ongoing basis

Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Electronic and paper-based manuals with guidelines on how to establish a sound risk management policy for a micro finance business could be developed. Examples of established risk management procedures could be included in the content and serve as a basis for application within the learner’s business environment

Case Studies developed through consultation with micro financiers could be used to depict good and bad applications of risk management policies and procedures

Guest speakers could be used to talk about how they set up a risk management policy and procedures for their business and what practical difficulties they had in developing and implementing

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Client Credit Limits

Set standardised credit limits for clients

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in credit limit setting from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Electronic and paper-based manuals with guidelines on credit limit setting within a micro finance business could be established. Principles of credit limit setting and management could be included in the content to build foundational and contextual knowledge of why the skill is important to a micro finance business

A CBT could be developed with scenarios on client credit limit setting and possible associated risk stemming from incorrect limit setting

Case Studies on credit limit setting could be developed through consultation with micro financiers to show benefits of sound credit limit setting principles

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

The management of risk is fundamental to the running of a micro finance business

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38

Loan book management outline

The Loan Book Management skills area consists of five modules:

Module Definition

Loan Repayments The ability to effectively record loan data, collect all instalments due and correctly issue receipts  

Loan Book Reconciliation

The ability to reconcile loan repayments with the loan book

Bad Debt Recovery Process

The effective operation of procedures, systems and practices to recover overdue loan repayments and bad debts

Interest Calculation Ability to calculate interest on different loans in your business

Debt Collector Appointment and Management

Appoint and manage debt collection agents

Loan book management was rated as the second most important skill in the survey

Substantial face-to-face initiatives

to develop foundational skills in Risk Management

Supported by mentoring

programmes, coaching,

seminars and workshops

Supported by distance learning initiatives such as CBT, Manuals and web-based

learning

Recommended delivery channels and training methodologies

This key skills needs to be developed through classroom-based learning, supported by coaching and electronic material

This key skills needs to be developed through classroom-based learning, supported by coaching and electronic material

Page 39: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

39

Loan book management – survey findings

The overall importance of loan book management is 82% whilst the reported skill levels average 68% and 28% of respondents have received training in this area

Staff need to be trained on how to manage the bad debt recovery process, as well as the appointment and management of debt collectors

Staff need to be trained on how to manage the bad debt recovery process, as well as the appointment and management of debt collectors

Importance (%) Skill Level (%) % Received Training

‘Loan Repayments’ achieved the highest level of importance (91%) in the entire survey, which is not surprising due to the nature of the industry. As expected, the skill levels are high in this area (77%) and 40% of respondents have received training in this area

The appointment and management of debt collectors is viewed as the least important skill, with low skill levels and only 18% of respondents had received training in this area. This could be attributable to the fact that most micro financiers collect debts themselves

Training and skill levels are quite low in ‘bad debt recovery processes’ indicating a priority for training

Loan Book Management

91 88 87 84

7077

7264

74

58

0

10

20

30

4050

60

70

80

90

100

Loan

Repayments

Loan Book

Reconciliation

Bad Debt

Recovery

Processes

Interest

Calculations

Debt Collector

Appointmentand

Management

Per

cen

t

Page 40: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

40

Loan book management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Loan Repayments

Set up a policy and procedure for recording loan data, collecting all instalments due and correctly issuing receipts  

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in loan repayment management from experts in the industry and should be offered on an ongoing basis

Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Electronic and paper-based manuals could be used to help establish content and situational knowledge of loan repayment principles and included guidelines on the setting of policies and procedures for the loan repayment function

Case Studies could be developed in consultation with micro financiers to show various loan repayment procedures and policies and to highlight possible pitfalls of inappropriate loan repayment practices

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Loan Book Reconciliation

Reconcile loan repayments with the loan book

Face-to-face

Classroom Training could be used at the beginning of the learning process to develop foundational knowledge of loan book reconciliation

Seminars and workshops could be used to showcase latest findings and trends in loan book reconciliation from experts in the industry and should be offered on an ongoing basis

Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Electronic and paper-based manuals could be developed to show the standard steps to be followed when reconciling a loan book. This manual should be developed in consultation with micro finance practitioners to ensure relevance

A CBT could be developed to show the process to be followed to reconcile the loan book with repayments done. Scenarios could be included, showing possible solutions for common errors in loan book reconciliation

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Loan book management is a core business function for a micro financier

Page 41: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

41

Loan book management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Bad Debt Recovery Process

Set up procedures, systems and practices to recover overdue loan repayments and bad debts

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of loan book reconciliation

Seminars and workshops could be used to showcase latest findings and trends in bad debt recovery process management from experts in the industry and should be offered on an ongoing basis

Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Electronic and paper-based manuals could be used to help establish content and situational knowledge of loan repayment principles and be supplemented by Instructional videos

Case Studies could be developed in conjunction with micro finance practitioners

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Loan book management is a core business function for micro financiers

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42

Loan book management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Interest Calculation

Calculate interest on different loans in a micro finance business

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in loan book reconciliation from experts in the industry and should be offered on an ongoing basis

Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Electronic and paper-based manuals could be developed in consultation with a cross-section of micro financiers who are involved in different types of lending e.g. Housing, short-term and term lending to develop appropriate models of interest calculation for the industry

A CBT could be developed with a practical, standardised tool in MS Excel to calculate interest and repayment schedules for various types of loans

Distance Learning

Electronic Information Exchanges and BDS portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Debt Collector

Appointment and

Management

Appoint and manage debt collection agents

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in debt collector appointment and management from experts in the industry

• Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment

Electronic and paper-based manuals could be used to help guidelines on the appointment of debt collection agents for a micro finance business. Both micro financiers and debt collection practitioners could contribute to the development of this manual

Case Studies could developed in conjunction with micro financiers and debt collection agencies. The case study could show the various operating models of collection agents and how they would best suit the needs of their micro finance business. Success as well as failure stories could be depicted.

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Loan book management is a core business function for micro financiers

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43

Cash management outline

The Cash Management skills area consists of two modules:

Module Definition Cash Management Procedures

The policies and procedures to manage daily cash floats and cashing up to ensure effective control

Security Policies and Procedures

Setting up policies and procedures for limiting the amount of cash on the premises and securing the premises against robberies, theft and fraud

According to the results from the survey, cash management has the third highest rating of importance

Predominantly Internet –based and

paper-based training materials

The development of industry best practices could be used to develop industry-wide policies and procedures for the containment of physical risk for micro

financiers

The development of industry best practices could be used to develop industry-wide policies and procedures for the containment of physical risk for micro

financiers

Recommended delivery channels and training methodologies

Supported by coaching,

seminars and workshops

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44

Cash managementsurvey results

There appears to be a need for training in the security policies and procedures pertaining to cash management

There appears to be a need for training in the security policies and procedures pertaining to cash management

Security of cash appears to be important to micro financiers (82%) since most micro financiers deal with a large amount of cash on their premises. 29% of respondents had received training in this skill and the reported skill levels were 67%

‘Security policies and procedures’ were also rated quite high, however fewer respondents said they had received training in this skill (18%)

The overall management of cash was less important (59%) to respondents

Importance (%) Skill Level (%) % Received Training

The overall importance of cash management is 81% whilst the reported skill levels average 65% and 24% of respondents have received training in this area

Cash Management

8279

6763

0

10

20

30

40

50

60

70

80

90

100

Cash Management Procedures Security Policies and Procedures

Per

cen

t

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45

Cash management - delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Cash Management Procedures

Develop policies and procedures to manage daily cash floats and cashing up to ensure effective control

Face-to-face

Face to face training methodologies not indicated due to the nature of the subject being predominantly policy and procedure setting based

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures as well as disseminate industry best practices

Seminars held by industry experts could be arranged to update micro finance practitioners on the latest trends in cash management procedures to contain physical risk

Coaching could be used to disseminate the latest cash management best practices within businesses

Distance learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Security Policies and Procedures

Set up policies and procedures for limiting the amount of cash on the premises and securing the premises against robberies, theft and fraud

Face-to-face

Face to face training methodologies not indicated due to the nature of the subject being predominantly policy and procedure setting based

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

Seminars and workshops held by security industry experts could be arranged to update micro finance practitioners on the latest trends in containing physical risk for micro finance businesses

Coaching could be used to disseminate the latest trends in physical risk containment practices

Distance learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information on the setting of security policies and procedures

Training materials could be obtained through a BDS call centre / support centre

The management of cash is core to the running of a micro finance business

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46

Cash management - delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Cash Management Procedures

Develop policies and procedures to manage daily cash floats and cashing up to ensure effective control

Face-to-face

Face to face training methodologies are not recommended due to the nature of the subject being predominantly policy and procedure setting based

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Security Policies and Procedures

Set up policies and procedures for limiting the amount of cash on the premises and securing the premises against robberies, theft and fraud

Face-to-face

Face to face training methodologies not indicated due to the nature of the subject being predominantly policy and procedure setting based

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information on the setting of security policies and procedures

Training materials could be obtained through a BDS call centre / support centre

The management of cash is core to the running of a micro finance business

Page 47: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

47

Client service outline

The Client Service skills area consists of five modules:

Module Definition Client Request Resolution Ability of staff to deal with client requests for loan information, dispute resolution and requests

for rescheduling of loans

Product and Service Knowledge

The level with which staff are able to successfully provide product and service information to clients

Client Acquisition and Retention Strategies

Ability to identify innovative ways of acquiring and retaining customers on an ongoing basis

Client Education and Coaching Educating and coaching clients in skills to handle their finance so that they can meet their

commitments and not incur excess debt

Client Service Improvement

Ability to identify ways to improve service to clients and to act on problem areas

Client service was rated as the fourth most important skill area in the learner needs analysis survey

Foundational skills

development through

classroom training

Supported by case studies and

manuals

Followed up by coaching and

mentoring workshops

A programme on Client Service could be run that covers the skills and knowledge components of client service

A programme on Client Service could be run that covers the skills and knowledge components of client service

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48

Client service – survey results

The overall importance of client service is 82% whilst the reported skill levels average 65%, and 24% of respondents have received training in this area

‘Client acquisiton & retention’ is an important skill and training in this skill could receive a high priority due to the low level training received

‘Client acquisiton & retention’ is an important skill and training in this skill could receive a high priority due to the low level training received

Importance (%) Skill Level (%) % Received Training

‘Client request resolution’ and ‘Product and service knowledge’ are seen as the most important skills for client service, and the skill levels are relatively high

Client service improvement is rated the least important of all the client service skills, and the skill levels are correspondingly low

Client acquisition & retention was rated fairly high, although experience would suggest this to be the most important skill for micro financiers given the pressures of increased competition on their businesses. Only 19% of respondents had received training in this skill

Client Service87 85

81 79 7770 71

6065

57

0

10

2030

40

5060

70

80

90

100

Client RequestResolution

Product andService

Knowledge

ClientAcquisition &

RetentionStrategies

Client Educationand Coaching

Client ServiceImprovement

Per

cen

t

Page 49: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

49

Client service delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Client Request

Resolution

Effectively deal with client requests for loan information, dispute resolution and requests for rescheduling of loans

Face-to-face

Role plays could be used to support classroom based training. Scripts for different client requests could be created and different roles enacted by trainees

Coaching could be used to disseminate knowledge to new recruits into a business and to provide ongoing training to staff on managing client requests. A client resolution scorecard could be created by the staff which is reviewed weekly and successes tracked

Electronic and paper-based manuals could be used to educate on the basic request resolution processes and frequently asked questions. These could include Client Resolution Job Aids and Process posters to assist staff members

Case Studies would form the basis of the role plays and be based on real examples collected from branches or reported at the MFRC

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

Product and Service

Knowledge

Provide product and service information to clients

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop basic knowledge of micro financing products and services. This training must include ways of communicating this information to clients.

Coaching could be used to disseminate knowledge to new recruits and to provide training on any new products or services

Electronic and paper-based manuals could be used to educate staff members and new recruits on basic products and services offered by the business. A job aid/o “pop quizz” on product features could also be used to ensure information is internalised

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

With increasing competition, client service will become one of the differentiators in the micro finance industry

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50

Client service delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Methodology

Client Acquisition

and Retention Strategies

Identify innovative ways of acquiring and retaining customers on an ongoing basis

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop basic acquisition and retention strategies for managers

Seminars and workshops could be used to showcase latest best practices for acquisition and retention I.e further research on Customer Lifetime Value and presentations from experts in the field

Coaching could be used to disseminate knowledge to staff

Case Studies on different company’s strategies could be used as supporting material

Electronic and paper-based manuals could be used to help establish basic acquisition and retention knowledge

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

Client Education

and Coaching

Educate and coach clients in skills to handle their finance so that they can meet their commitments and not incur excess debt

Face-to-face

Seminars and workshops could be used to train learners in techniques on how to educate and coach clients

Role plays could be used to support transfer of skills techniques in education and guiding clients

Coaching could be used to disseminate skills and techniques to new recruits into a business and to train on new approaches or methods

Electronic and paper-based manuals could be used to help establish the “how” and the “what” to communicate to clients

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

With increasing competition, client service will become one of the differentiators in the micro finance industry

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51

Client service delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Client Service Improvement

Identify ways to improve service to clients and to act on problem areas

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in client service improvement from experts in the industry

Role plays could be used to help staff identify ways to improve service

Coaching could be used to disseminate skills and techniques to new recruits into a business and ensure ongoing development takes place. This skills lends itself to ongoing coaching and guidance

Electronic and paper-based manuals could be used to help establish basic client service principles and behaviours

Video could be used to illustrate international or local examples of good client service

Distance Learning

Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

With increasing competition, client service will become one of the differentiators in the micro finance industry

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52

Finance outline (1)

The Finance skills area consists of nine modules:

Module Definition

Cost Management Ability to understand cost management data and cost management reports required to run a micro finance business

Management Report Preparation

The ability to prepare and interpret management reports on client trends, overdue loans, bad debt and other information essential to managing the business

Financial Statement Preparation

The ability to prepare and /or read the financial statements and form an opinion of the financial health of the business.

Business Ethics Alignment

Applying business practices that will contribute in setting an image of the micro finance industry as part of the formal financial services sector, always acting in the interest of clients and the community

Budgeting and Financial Planning

The ability to prepare budgets and conduct financial planning in a business (debt, cashflow, payments etc)

Finance has nine skill areas that require development

Page 53: Curriculum Framework Report CURRICULUM FRAMEWORK REPORT MAY 2002

53

Finance outline (2)

The Finance skills area consists of nine modules:

Module Definition

Internal Audit Ability to examine the business’s accounting records, processes, systems and administration to ensure compliance and to prevent fraud

Accounting Packages

The ability to use computer-based accounting packages

Cash Flow Management

Having an understanding of the amount of cash needed to fund the demand for loans at different times of the month and year (e.g. In December, the demand for loans may increase due to Christmas) and ongoing operations

Tax Calculation The ability to calculate tax calculations (e.g.employees and provisional tax).

Finance has nine areas that require development

Foundational skills

development through

classroom training

Seminars, workshops and

coaching

Case studies, simulations and

CBT

In the past, there has been a lack of focus on internal auditing by micro financiers, a trend which could open such businesses to internal fraud

In the past, there has been a lack of focus on internal auditing by micro financiers, a trend which could open such businesses to internal fraud

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54

Finance- survey results

The overall importance of finance is 78% whilst the reported skill levels average 61% and 29% of respondents have received training in this area

Training could be offered across all finance skill areas to the relevant people who fulfill financial functions in micro finance organisations

Training could be offered across all finance skill areas to the relevant people who fulfill financial functions in micro finance organisations

Importance (%) Skill Level (%) % Received Training

As expected, the financial functions of micro financiers are very important, with many skill areas achieving an 80% importance level

A cause for some concern is the low level of skills reported in the preparation of financial statements (65%), despite the finding that 42% of respondents had received training. This suggests that past training has not been effective

‘Tax calculations’ were rated as the least important skill, with skill levels and training far below that of the other finance skills. Perhaps this function is performed by tax consultants or accountants and not by micro financiers themselves. There is a need for training in this area in order to enable micro financiers to understand the tax implications of business operations

Finance

83 82 82 8279 78 77 77

666764 65 62 62

5761

65

48

0

10

20

30

40

50

60

70

80

90

100

CostMgt

MgtReportPrep

FinancialStatement

Prep

BusinessEthics

Alignment

Budgeting& Financial

Planning

InternalAudits

AccountingPackages

CashflowMgt

TaxCalculations

Per

cen

t

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Finance delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Cost Management

Understand cost management data and cost management reports required to run a micro finance business

Face-to-face

Classroom training could be used at the beginning of the learning process to develop foundational knowledge of cost management

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Case studies could be developed in consultation with micro financiers where a learner would need to perform a profitability analysis (cost drivers) – identify the major costs of 3 different micro finance businesses and ways of reducing their costs

Practical exercises could be developed where the learner would need to prepare a cost budget for their micro finance business

Specific computer application training for cost management reporting

Electronic and paper-based manuals could be used to help establish content and situational knowledge of costing accounting and cost management principles

A CBT could be developed which would take learners through the micro finance case studies and practical exercises as mentioned above

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Management Report Preparation

Prepare and interpret management reports on client trends, overdue loans, bad debt and other information essential to managing a micro finance business

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of cost management

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals could be developed which incorporate the interpretation and understanding of exception reports, warning signs of potential problems, reasons for rising costs and for declining revenues

A CBT with a simulation of how to put together management reports for a micro finance business could be developed and be based upon

Case studies could be used to impart contextual and situational knowledge and solutions

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Finance delivery recommendations

Module Learning Outcome Delivery Channel

Type of Channel Training Method

Financial Statement

Preparation

Prepare and /or read the financial statements and form an opinion of the financial health of the business

Face-to-face

Classroom training could be used at the beginning of the learning process to develop foundational knowledge of Income statements,balance sheets and cash flow statement preparation

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in financial statement preparation from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals could be used to help establish content and situational knowledge of how to read and interpret financial statements as well as develop an understanding of the interdependencies between the different types of financial statements

An interactive CBT could be developed where the learner would “prepare” financial statements for a hypothetical micro finance business

Case Studies could be developed and used to compare financial statements from several micro finance businesses and could form the basis of an analysis of relative financial ‘health’ of the businesses

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be purchased from a BDS call centre / training centre

Business Ethics

Alignment

Apply business practices that will contribute in setting an image of the micro finance industry as part of the formal financial services sector, always acting in the interest of clients and the community

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in business ethics alignment from experts in the industry

Coaching could be used to build and perpetuate the application of business ethics in the micro-finance industry

Case Studies of micro finance business practices could be developed and be used to depict implications of not applying ethical business practices. The case study could involve learners making value judgments and giving feedback on what they would do in the given situations

Electronic and paper-based manuals could be used to help establish content and situational knowledge of business ethics for the micro finance industry

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Finance delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Budgeting and

Financial Planning

Prepare budgets and conduct financial planning in a business (debt, cash flow, payments

etc)

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of budgeting and financial planning

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in budgeting and financial planning from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Case Studies could be used to develop an understanding of what should be included in a budget and how to calculate budget entries. In addition, the case study could help the learner identify strategies to maximise cash flow while at the same time ensuring timeous payment by customers

Electronic and paper-based manuals could be used to help establish content and situational knowledge of how to plan what finances a hypothetical micro finance business will need in the future based on past expenditures as well as develop an understanding of the differences between cash and credit

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Finance delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Internal Audit

Examine the business’s accounting records, processes, systems and administration to ensure compliance and to prevent fraud

Face-to-face

Classroom training could be used at the beginning of the learning process to develop foundational knowledge of internal auditing practices

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in cost management internal auditing practices be used to disseminate knowledge to new recruits into a business

Case studies could be developed from actual micro-finance businesses and be used to assimilate do’ s and don’ts of internal auditing

The case studies could be supplemented by a CBT which could take the learner through the steps on how to conduct an internal audit

Electronic and paper-based manuals could be used to help establish content and situational knowledge of how to conduct an internal audit and could include topics such as:

What constitutes an audit The importance of conducting an

internal audit Computerised accounting packages

vs. manual accounting methods How to prepare a full audit for

reporting purposes Audit a hypothetical micro

financier’s business and identify problems

Learners could be asked to complete an assignment in which they conduct a mock internal audit of their own micro-finance business

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Finance delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Accounting Packages

Use computer-based accounting packages

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of accounting packages. (Existing training courses which are currently being presented by software vendors could be incorporated into the curriculum)

Seminars and workshops could be used by accounting package vendors to showcase latest trends in accounting packages

Electronic and paper-based manuals could be developed and distributed by Software vendors for their specific packages. Topics that could be included in the manual:

Manual vs electronic accounting methods

Introduction to basic accounting principles

Case studies could be used to show the application of accounting packages in micro finance businesses

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be purchased from a BDS call centre / training centre

Cash Flow Management

Understand the amount of cash needed to fund demand for loans

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of cash flow management

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Case studies could be developed where learners can analyse the cash flow positions of various micro-finance businesses and give input on how to optimise cash flow for “ailing businesses”

Electronic and paper-based manuals could be used to help establish content and situational knowledge of cash flow management principles Topics that could be included :

Predicting the amount of cash needed based on customer behaviour and past loan history

Identifying ‘busy’ times of the year and month and budgeting accordingly

A business simulation CBT could be sourced or developed which would help build skills in effective cash flow management

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Finance delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Tax Calculation

Calculate tax calculations (e.g.employees and provisional tax)

Face-to-face Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of tax calculations and principles of South African tax

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Assignments could be used where learners are required to :

Prepare hypothetical tax returns for a micro finance business

Complete a VAT claim form for a hypothetical business

Electronic and paper-based manuals could be used to help establish content and situational knowledge of tax calculation principles. Topics that could be included :

Understanding the different types of taxes applicable to a micro financiers business

Learning how to calculate PAYE for a number of different employees

Understanding the process of registering for tax purposes

Distance Learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Client administration outline

The Client Administration skills area consists of two modules:

Module Definition Client Information Processing

The ability to collect, store, analyse and retrieve client information accurately timeously and accurately to ensure compliance with regulatory requirements and prevent losses to clients and the business

Safekeeping of Client Assets as Surety

The ability to collect, record and store clients' assets as security against services and/or products rendered

Client administration has two areas that require development

Foundational skills

development though coaching

Internet-support based materials

Business simulation and case studies

Recommended delivery channels and training methodologies

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Client administrationsurvey results

The overall importance of client administration is 73% whilst the reported skill levels average 61% and 23% of respondents have received training in this area

Training needs to be developed around current and future means of safe-guarding client assets as surety for loans

Training needs to be developed around current and future means of safe-guarding client assets as surety for loans

The ability to process client information accurately and timeously is seen as very important. Skill levels are relatively high, and 31% of respondents have received training in this skill

‘Safekeeping of client assets as surety’ is viewed as relatively unimportant by micro financiers. This is concerning since most “assets” in question are client’s bank cards and pins

In the future, additional means of securing loans will need to be identified, and the need to safeguard assets may become more important to micro financiers

Importance (%) Skill Level (%) % Received Training

Client Administration

85

61

72

49

0

10

20

30

40

50

60

70

80

90

100

Client Information Processing Safekeeping of Client Assets as Surety

Per

cen

t

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Client administration delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Client Information Processing

Collect, store, analyse and retrieve client information accurately timeously and accurately to ensure compliance with regulatory requirements and prevent losses to clients

and the business

Face-to-face • Coaching could be used to disseminate knowledge and procedures to new recruits and existing staff in a business

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures on client information processing within a micro finance environment. Industry best practice could be used to establish the foundation for the development of the content for these manuals

A Business simulation model, showing the application of sound client information processing principles could be developed so that learners can practice and develop skills that can be directly transferred into their business

Case studies could be developed in conjunction with micro financiers, depicting different operating models and client information processing methods. Learners could give feedback on the practical application of methods within their businesses

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Safekeeping of Client Assets as

Surety

Collect, record and store clients' assets as security against services and/or products rendered

Face-to-face

Coaching could be used to disseminate policy and procedures to new recruits and existing staff in a business as well as for the development of appropriate policies and procedures

Electronic and paper-based manuals, based upon industry best practice could be used to develop policies and procedures on the safekeeping of client assets for surety purposes

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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64

Staff management outline

The Staff Management skills area consists of six modules:

Module Definition

Performance Management Developing processes and tools to evaluate the performance of your staff

Reward and Recognition Management

The ability to establish and apply fair rewards and recognition for employees, linked to individual / team performance

Business Process and Systems Improvement

Identifying and implementing business process changes and system upgrades to improve your business

Recruitment & selection Appointing people with the required skills and knowledge in the business

Training Needs analysis Understanding the training requirements of your staff and implementing or outsourcing training programmes that will improve work performance

Grievance &Disciplinary Policies & Procedures

Establishing policies and procedures to address grievances of employees and apply discipline fairly and procedurally correct

Staff management has six areas that require development

Foundational skills

development through

mentoring, coaching and

seminars

Supported by Case studies,

simulation training and

manuals

There is an apparent lack of emphasis on the application of staff management principles by micro financiers This may lead to high staff turnover rates in the future

There is an apparent lack of emphasis on the application of staff management principles by micro financiers This may lead to high staff turnover rates in the future

Recommended delivery channels and training methodologies

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Staff managementsurvey results

The overall importance of staff management is 73% whilst the reported skill levels average 58% and 20% of respondents have received training in this area

Training in staff management needs to be delivered to improve the work experience of employees and provide them with personal development

Training in staff management needs to be delivered to improve the work experience of employees and provide them with personal development

Most staff management skills were rated between important and very important by micro financiers

The overall skill levels were rated as somewhat skilled, although there is room for improvement across the board

26% micro finance manager/owners who responded had received training in recruiting staff, the highest trained staff management skill

‘Business process & systems improvement’ had the lowest skill levels and fewest number of respondents with prior training

Importance (%) Skill Level (%) % Received Training

Staff Management

75 75 73 72 72 70

6063

5558 57 56

0

10

20

30

40

50

60

70

80

90

100

PerformanceManagement

Reward andRecognitionManagement

Business Process& Systems

Improvement

Recruitment Training NeedsAnalysis

Grievance &Disciplinary Policies & Procedures

Per

cen

t

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Staff management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Performance Management

Develop processes and tools to evaluate the performance of employees

Face-to-face

Mentoring programmes could be used to reinforce the foundational learning from distance learning initiatives

Seminars and workshops could be used to showcase latest findings and trends in funding strategies from experts in the industry

Case Studies could be used to impart contextual and situational knowledge and solutions

Business simulation training could be employed to illustrate scenario-based problem solving of employee performance issues

Role plays could be used to develop counseling skills for managers who need to assess and evaluate employees on issues of performance and development

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

Video tapes depicting typical employee / manager interactions could be sourced or developed which will demonstrate behavioural approaches to performance management

Standardised performance rating tools could be developed in conjunction with micro financiers to simplify and standardise the performance appraisal process. Such a tool could be developed in MS Excel

Distance learning

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Reward and Recognition Management

Establish and apply fair rewards and recognition processes which are linked to individual and/or team performance

Face-to-face

Seminars and workshops could be used to showcase latest findings and trends in reward and recognition management from experts in the industry

Case Studies could be developed to showcase various reward and recognition models being employed in the micro-finance industry. These case studies could be developed from micro finance industry best practice. Industry benchmarking could be used when creating the case studies

Electronic and paper-based manuals could be developed to establish content knowledge of reward and recognition management practices and principles and to highlight micro-finance industry-specific performance success factors

Distance learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Staff management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Business Process and Systems Improvement

Identify and implement business process changes and system upgrades to improve your business

Face-to-face Mentoring programmes could be used to reinforce the foundational learning from Distance learning initiatives

Seminars and workshops could be used to showcase best practice and trends in business process innovation and systems improvement from experts in the industry

Electronic and paper-based manuals could be developed in conjunction with industry leaders on best practice in business process and systems improvements

Case Studies could be developed in conjunction with micro financiers to show various methods employed by leaders in the industry to bring about innovative process and systems improvements

A practical business process diagnostic tool, based on industry best practice could be developed to help practitioners gauge their business process effectiveness.

Video tapes depicting industry best practice in business process systems innovation could be developed in conjunction with micro financiers and be used to supplement the case studies and manuals

Distance learning

Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Staff management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Recruitment Appoint people with the required skills and knowledge in a business

Face-to-face Seminars and workshops could be used to showcase latest findings and trends in funding strategies from experts in the industry

Electronic and paper-based manuals could be developed in conjunction with micro finance practitioners to establish content knowledge of how to recruit and select appropriately skilled resources into a micro finance business. Topics that could be included:

Recruitment and selection principles for the micro finance industry

South African contextual issues (employment equity, conditions of employment act and other related legislation)

Interviewing and recruitment techniques such as behavioural interviewing

Establishment of employment contracts

Videos could be used to show the application of appropriate interviewing techniques and principles

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Training Needs analysis

Implement or outsource training programmes that will improve work performance

Face-to-face Seminars and workshops could be used to showcase latest findings and trends in training needs analysis from experts in the industry

Electronic and paper-based manuals could be used to help establish content knowledge of how to conduct a training needs analysis

Case studies could be developed in conjunction with micro financiers to show how training is important to the success of a micro-finance business. Various methods of training needs analyses could be showcased and used within

A practical tool, created in MS Excel could be developed in conjunction with industry practitioners to standardise the approach to the analysis of staff training needs

Training needs analysis could directly supplement both performance management as well as the recognition and rewards modules

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Staff management delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Grievance &Disciplinary Policies & Procedures

Identify

policies and procedures to address grievances of employees Apply discipline which is fair and procedurally correct

Face-to-face

Seminars and workshops could be used to educate individuals on legislation on policies and procedures from experts in the industry

Electronic and paper-based manuals could be used to help establish content knowledge of how to establish a grievance and disciplinary procedure within a micro finance business. Topics which could be included:

South African contextual issues (Legislation) CCMA rules Grievance and disciplinary procedures Policy and procedure setting principles

Case Studies on South African grievance and disciplinary procedures could be developed through interviews with micro financiers who have experience in the establishment and practice of sound grievance and disciplinary policies and procedures

Guest speakers (labour attorneys and labour consultants) could be employed to to give seminars on industry practices and current labour legislation.

Distance learning

Electronic information exchanges could be used to source a pool of available resources

Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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Service providers outline

The Service Provider Management skills area consists of two modules:

Module Definition

Contract Management

Establishing formal contracts with service providers (software providers, credit bureaus, etc), that includes your business requirements and the services offered by the provider

Service Level Agreements

Establishing service level agreements and procedures to ensure that agreements are adhered to by service providers

Service providers has two areas that require development

Foundational skills

development through

Workshops

Electronic manuals and web-based

support

There appears to be a lack of formal approach to the management of service providers, opening micro financiers to potential risk from third party provided

services

There appears to be a lack of formal approach to the management of service providers, opening micro financiers to potential risk from third party provided

services

Recommended delivery channels and training methodologies

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Service providerssurvey results

The overall importance of service providers is 68% whilst the reported skill levels average 56% and 15% of respondents have received training in this area

Any training offered in this area could be specific and relevant to the potential kinds of services that micro financiers require or may require in the future

Any training offered in this area could be specific and relevant to the potential kinds of services that micro financiers require or may require in the future

The relative low importance of ‘contract management’ (68%) and ‘ service level agreements’ (66%) is probably due to the fact that micro financiers do not enter into many contracts with service providers, and do not see much need for specific skills

Specific training could be offered about managing contracts with application providers, payment providers and debt collectors, and any other providers offering pertinent services

Importance (%) Skill Level (%) % Received Training

Service Providers

68 66

56 54

1512

0

10

20

30

40

50

60

70

80

90

100

Contract Management Service Level Agreements

Per

cen

t

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Service providers delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Contract Management

Establish formal contracts with service providers

Face-to-face

Workshops presented by industry experts could be used to build contract management capability

Electronic and paper-based manuals could be developed in conjunction with micro-financiers, services providers and contract attorneys. These manuals could be used to help establish content knowledge of how to establish and manage contracts with third party service providers

Case studies of how contract management principles have been employed in micro finance businesses could be used to illustrate the content and contextual issues involved in dealing with third party service providers

Guest speakers could be used to consult to micro financiers on industry best practices in contract management principles

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

Service Level Agreements

Establish service level agreements and procedures to ensure that agreements are adhered to by service providers

Face-to-face

Workshops presented by industry experts could be used to build a service level agreement capability and build negotiation skills

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop service level agreements and policies specific to the micro-finance industry needs

Guest speakers who have deep knowledge of how to set up service level agreements could be used to hold workshops with micro-finance practitioners on how to establish SLA’s with third party service providers

Service level agreements could be combined with contract management

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Training materials could be obtained through a BDS call centre / support centre

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73

Funding strategies delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Capital Requirements

Provide the correct amount of capital required to grow a business

Face-to-face

Mentoring programmes could be used to build foundational knowledge in capital requirements knowledge

Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals with guidelines on how to determine capital requirements could be developed. Examples of key forecasting methodologies, formulae and considerations and business case development could be included

Case studies developed through consultation with micro financiers could be used to understand the influencers in growth strategies in micro financing businesses

A CBT simulating business growth and performance on funding methodologies could be developed

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate content information cheaply throughout the country

Case studies could be used to impart contextual and situational knowledge and solutions

Business simulation training could be employed to illustrate scenario based problem solving

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Funding strategies delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Employment of Capital

Identify capital employment techniques to grow a business profitably

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of employment of capital

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals with guidelines on how to use capital effectively could be developed. Examples of prioritisation techniques could be included

Case Studies developed through consultation with micro financiers could be used to understand the highest return areas in a micro financing businesses

A CBT simulating business growth and performance based on employment of capital could be developed

Distance learning

Electronic information exchanges and web-based training, could be used to disseminate content information cheaply throughout the country

Case Studies could be used to impart contextual and situational knowledge and solutions

Business simulation training could be employed to illustrate scenario based problem solving

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75

Funding strategies delivery recommendations

Module Learning Outcome Delivery Channel

Type of Channel Training Method

Funding Strategies

Identify the procedures, sources and cost involved in applying and obtaining funding

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of funding strategies

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in funding strategies from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals with guidelines on various sources of funding, with associated advantages and disadvantages of each. Include lists of funding institutions, and their requirements for applicants.

Case Studies developed through consultation with micro financiers and funding institutions could be used to identify the most suitable source of funding, based on cost of funding, effort required etc.

A CBT simulating of return on capital based on users choice of funding sourceDistance

learning

Electronic information exchanges and web-based training, could be used to disseminate content information cheaply throughout the country

Case Studies could be used to impart contextual and situational knowledge and solutions

Business simulation training could be employed to illustrate scenario based problem solving

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76

Complaint procedures delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Resolving Complaints

Establish a procedure for resolving complaints raised by clients

Face-to-face

Face to face training methodologies not indicated

Electronic and paper-based manuals with MFRC-approved processes for complaint and problem resolution

Electronic / paper- based guidelines on problem resolution, conflict management, facilitation and mediation

Electronic database of common complaints and best practice resolutions.

Distance learning

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

Electronic information exchanges and web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

Complaints Logging

Establish a process for logging client complaints according to regulatory requirements

Face-to-face

Face to face training methodologies not indicated

Electronic and paper-based manuals with guidelines on SA regulations re. notification of authorities of client complaints, including which complaints are to be logged, what are the recommended processes to follow per complaint type, which bodies are to be informed of complaint / resolution

Distance learning

Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country

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Business strategies outline

The Business Strategies skills area consists of two modules:

Module Definition Business Strategy Development

Ability to identify goals and objectives for your business. It contains an action plan and identifies the resources required for carrying out goals. Its about being able to “identify the right things”

Industry Analysis Ability to analyse the industry in terms of existing competitors, barriers to entry for new competitors, substitutes, products, opportunities and client dynamics (needs, price sensitivity, volumes

Business strategies consist of two areas that require development

Foundational skills

development through

classroom training

Mentoring, seminars and workshops

Business strategy development appears to be implemented sporadically by micro finance busineses and should be given a higher focus than what it

currently has if micro finance businesses are to survive in the future

Business strategy development appears to be implemented sporadically by micro finance busineses and should be given a higher focus than what it

currently has if micro finance businesses are to survive in the future

Recommended delivery channels and training methodologies

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Business strategiessurvey results

The overall importance of business strategies is 74% whilst the reported skill levels average 62% and 23% of respondents have received training in this area

There exists a need for industry analysis skills training, in order to make micro financiers aware of the potential effects of external events on their operations

There exists a need for industry analysis skills training, in order to make micro financiers aware of the potential effects of external events on their operations

Just under a third of all respondents have received training in developing business strategies and the perceived skill levels are 65%

‘Industry analysis’ skills are rated at 59% and the importance is rated as 72%. Only 15% of respondents had received training in this area

Industry analysis (72%) was rated almost identically in importance to ‘competitor analysis’ (71%) suggesting that understanding what the industry and competitors are doing is regarded as important by micro financiers

Importance (%) Skill Level (%) % Received Training

Business Strategies

7672

6559

0

10

20

30

40

50

60

70

80

90

100

Business Strategy Development Industry Analysis

Per

cen

t

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Business strategies delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Business Strategy Development

Identify goals and objectives for a business

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of business strategy development

Mentoring programmes could be used to reinforce the foundational learning from classroom training

Seminars and workshops could be used to showcase latest findings and trends in funding strategies from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Case Studies could be used to impart contextual and situational knowledge and solutions. Examples across industries could be used at the beginning of the course followed by micro financing specific examples of stories of success and failure

Business simulation training could be employed to illustrate scenario based problem solving

Electronic and paper-based manuals could be used to supplement face-to-face initiatives

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

Industry Analysis

Analyse the industry in terms of existing competitors, barriers to entry for new competitors, substitutes, products, opportunities and client dynamics (needs, price sensitivity, volumes

Face-to-face

Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of industry analysis techniques

Seminars and workshops could be used to showcase latest findings and trends in industry analysis from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business and to help other senior people in the organisation on an ongoing basis

Case Studies from different industries could be used to familiarise participants with the methodology

Video on Industry Analysis could be sourced internationally to support case study material

Business simulation training could be employed to illustrate scenario based problem solving

Electronic and paper-based manuals could be used to supplement face-to-face delivery

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

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Marketing outline

The Marketing skills area consists of four modules:

Module Definition

Competitor Analysis

Understanding what products and services your competitors offer, and how they deliver those products and services to their clients

Marketing Plan Development

Ability to design and develop a marketing plan that contains data on loans, costs, profits, market and competitors. It outlines opportunities, issues and proposes a broad marketing strategy

New Products / Services Development

Ability to translate a product or service idea into an actual offering including pricing, packaging, characteristics and delivery

Marketing Materials Development

The ability to design and develop marketing material that will create awareness of your products and services and increase revenue

New Products / Services Needs Identification

Identification of additional micro financing product/service needs

Marketing contains 5 key skills that need to be developed

The provision of marketing training should be practical in nature in order to develop readily transferable skills in the industry

The provision of marketing training should be practical in nature in order to develop readily transferable skills in the industry

Foundational skills

development through

classroom training

Seminars and workshops

Case studies and manuals

Recommended delivery channels and training methodologies

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81

Marketing- survey results

The overall importance of marketing is 66% whilst the reported skill levels are 52% and 22% of respondents have received marketing training

In order to increase the skills level, training should be offered in all of the skills areas, especially in competitor analysis, and the identification and development

of new products and services

In order to increase the skills level, training should be offered in all of the skills areas, especially in competitor analysis, and the identification and development

of new products and services

Importance (%) Skill Level (%) % Received Training

‘Competitor analysis’ is rated the most important skill (71%) within marketing with only 12% of respondents having received training in this area

‘Marketing plan development’, the second most important skill according to the responses obtained has the highest amount of training in the entire survey (53%), a surprising finding

‘Marketing materials development’ was rated least important within marketing. Micro financiers may not feel that materials increasing awareness of their products and services are necessary, although 22% of the respondents said they had received training in this area

Marketing Management

7167 67

64 6359

5349

45

55

0

10

20

30

40

50

60

70

80

90

100

CompetitorAnalysis

Marketing PlanDevelopment

New Product/ Services Needs

Identification

New Product/Services

Development

Marketing MaterialsDevelopment

Per

cen

t

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82

Marketing delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Recommended Training Methodology

Competitor Analysis

Identify what products and services your competitors offer, and how they deliver those products and services to their clients

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of competitor analysis

Seminars and workshops could be used to showcase latest findings and trends in competitor analysis from experts in the industry

Electronic and paper-based manuals could be used to help establish content and situational knowledge of competitor analysis principles and be supplemented by CBT

Case studies could be used to impart contextual and situational knowledge and solutions and supported by generic examples of competitor analysis in Video format

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

• BDS call centre / support centre could be used to purchase training materials from a central point

Marketing Plan Development

Design and develop a marketing plan

Face-to-face

Classroom training, could be used at the beginning of the learning process on how to develop a marketing plan

Seminars and workshops could be used to showcase latest findings and trends in marketing plan development from experts in the industry

Electronic and paper-based manuals could be used to help establish content and situational knowledge of marketing plan principles and be supplemented by CBT

Case studies could be used to impart contextual and situational knowledge and solutions

Simulation to run the whole course from the setup of a new business, through the development of a Marketing Plan followed by marketing material etc.

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

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83

Marketing delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Recommended Training Methodology

New Products / Services Needs Identification

Identify new micro financing product/service needs

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of how to develop new products and services

Seminars and workshops could be used to showcase latest findings and trends in new products and services development from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals could be used to help establish content and situational knowledge of new products and services development principles and be supplemented by CBT

Case studies could be used to to test knowledge and to develop problem solving abilities in the identification of new products and

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

New Products / Services Development

Translate a product or service idea into an actual offering including pricing, packaging, characteristics and delivery

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of how to develop new products and services

Seminars and workshops could be used to showcase latest findings and trends in new products and services development from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals could be used to help establish content and situational knowledge of product and service development principles and be supplemented by CBT

Case studies could be used to impart contextual and situational knowledge and solutions in the development of new products and services

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

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84

Marketing delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Marketing Materials Development

Design and develop marketing material that will create awareness of your products and services and increase revenue

Face-to-face

Classroom training, could be used at the beginning of the learning process to develop foundational knowledge of how to develop marketing materials

Seminars and workshops could be used to showcase latest findings and trends in marketing material development from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business and for ongoing development

Electronic and paper-based manuals could be used to help establish content and situational knowledge of marketing materials development principles and be supplemented by CBT

Case studies could be used to impart contextual and situational knowledge and solutions

Distance learning

Electronic information exchanges and BDS web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news

BDS call centre / support centre could be used to purchase training materials from a central point

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85

SMME outline

The SMME skills area consists of four modules:

Module Definition

Evaluation of SMME business

Understanding of the SMME business and industry in terms of costs, revenue streams, suppliers, buyers and key players

Alternative ways of securing loans

Ability to identify alternative means of securing loans with SMME (guarantees)

Structure Financial Solutions

Ability to assist SMMEs develop financial plans for their business and provide a financial solutions that meets short and long term goals

Monitoring Progress

Ability to monitor the developments of the SMME through financial reporting, audits and progress updates and reviews

SMME consists of four key areas which need to be developed

SMME lending is highly specialised and is still a fledgling industry in South Africa. Training initiatives should be held in conjunction with business

development support initiatives

SMME lending is highly specialised and is still a fledgling industry in South Africa. Training initiatives should be held in conjunction with business

development support initiatives

Foundational skills

development through

classroom training

Supported by manuals and case studies

Supported up by seminars,

workshops and coaching

Recommended delivery channels and training methodologies

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86

SMME- survey results

The overall importance of SMME lending is 62% whilst the reported skill levels average 40% and 10% of respondents have received training in this area

Micro financiers need to be trained in evaluating the businesses of SMMEs so that this becomes a profitable market for all micro financiers to lend to

Micro financiers need to be trained in evaluating the businesses of SMMEs so that this becomes a profitable market for all micro financiers to lend to

Importance (%) Skill Level (%) % Received Training

Most of the skills scored quite low in importance, and ‘monitoring progress’ scored the lowest in importance out of all the skills tested by the survey. This phenomenon may be attributable to the fact that very few respondents actually lend to small, medium and micro enterprises (SMMEs), and those that don’t may feel that it is not an important skill to possess

The skill levels were also correspondingly low, with ‘alternative ways of securing loans’ and ‘monitoring progress’ scoring lowest in skill levels in the entire survey

Very few respondents had received training in any of the skills, again probably because lending to SMMEs is not part of their business

In the future, many micro financiers may find they need to broaden their potential customer base, and lending to SMMEs will become a high priority area for training

SMME Financing

6762 59 58

4638 39 38

13 11 8 9

0

10

20

30

40

50

60

70

80

90

100

Evaluation of SMME business

Alternative Waysof Securing Loans

Structure FinancialSolutions

Monitoring Progress

Per

cen

t

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87

SMME delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Evaluation of SMME business

Identify components of an SMME business and industry in terms of costs, revenue streams, suppliers, buyers and key players

Face-to-face Classroom Training could be used at the beginning of the learning process to develop foundational knowledge of how to evaluate SMME businesses

Seminars and workshops could be used to showcase latest findings and trends in marketing material development from experts in the industry

Coaching could be used to disseminate knowledge and skills

Electronic and paper-based manuals could be used to help establish content and situational knowledge on principles of evaluating SMME businesses

Case Studies could be used to impart contextual and situational knowledge and solutions

Distance learning

Electronic information exchanges and web -based training, could be used to disseminate content information cheaply throughout the country

Alternative ways of securing loans

Identify alternative means of securing loans with SMME

(guarantees)

Face-to-face Seminars and workshops could be used to showcase latest findings and trends on means of securing loans

Case Studies could be used to impart contextual and situational knowledge and solutions

Distance learning

Electronic information exchanges and web -based training, could be used to disseminate content information cheaply throughout the country

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88

SMME delivery recommendations

Module Learning Outcome

Delivery Channel

Type of Channel Training Method

Structure Financial Solutions

Assist SMMEs to develop financial plans for their business and provide a financial solutions that meets short and long term goals

Face-to-face Classroom Training, could be used at the beginning of the learning process to develop foundational knowledge of how to structure financial solutions

Seminars and workshops could be used to showcase latest findings and trends in marketing material development from experts in the industry

Coaching could be used to disseminate knowledge to new recruits into a business

Electronic and paper-based manuals could be used to help establish content and situational knowledge and principles of structuring financial solutions

CBT could be used to supplement electronic and paper-based manuals

Case Studies could be used to impart contextual and situational knowledge and solutions

Distance learning

Electronic Information Exchanges and Web-based training could be used to disseminate content information

Monitoring Progress

Monitor the developments of the SMME through financial reporting, audits and progress updates and reviews

Face-to-face Seminars and workshops could be used to showcase best practices in monitoring SMME business progress

Coaching could be used to disseminate knowledge

Case Studies could be used to impart contextual and situational knowledge and solutions

Distance learning

Electronic information exchanges and web training could be used to disseminate content and best practice information

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89

Additional skills identified

Additional soft skills identified

Module Definition

Leadership development

May cover areas of general leadership skills, leadership in senior management and change management as well as leadership development for non-managers

Management development

May cover areas such as the manager’s role within the organisation, managing conflict, work motivation, team building, mentoring and coaching skills as well as performance management

Communications May cover negotiation skills, how to work manage and work with difficult people, English as a second language, written communication for marketing and contractual purposes as well as interpersonal communication skills

Personal development

May cover areas such as time management, problem-solving and decision-making, creativity and innovation, emotional intelligence, stress management and career management

Several soft skills areas have been identified as potential training and development needs within the micro finance industry

The above skills could be seen as complimentary to the “hard” skills proposed in the preceeding sections

The above skills could be seen as complimentary to the “hard” skills proposed in the preceeding sections

Foundational skills

development through

workshops and seminars

Supported by manuals, videos,

internet-based learning, CBT

and case studies

Supported by seminars,

workshops and coaching

Recommended delivery channels and training methodologies

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90

RFI skills analysisRetail financial institutions (RFI) would supply funding to the SMME market. A separate needs analysis was conducted on their specific needs

Funding strategies and loan book management were seen as the top two skills required by RFIs

Funding strategies and loan book management were seen as the top two skills required by RFIs

Summary of Skill Areas

0%10%20%30%40%50%60%70%80%90%

100%

Fundin

g Stra

tegie

s

Loan

Boo

k man

agem

ent

RFI Stra

tegy

Skil

ls

RFI Clie

nt S

ervic

e

Recru

iting

Cash

Man

agem

ent

Man

agem

ent

Regula

tory

and

Leg

al co

mpli

ance

RFI Mar

ketin

g

RFI - F

inanc

e

SMM

E

Contra

ct M

gt

Per

cen

t

Importance Experience

• The top 5 areas of importance are ‘funding strategies, ‘loan book management’, ‘RFI Strategy skills’ ‘RFI client service’, ‘legal and ‘Recruiting’

• Contract management is seen as the least important skill area by RFIs, possibly because most of the RFIs have fixed contracts with their clients

• Due to the importance of funding for their organisations and the associated risk to their organisations it is not surprising to see that as the top skill areas

• The importance of client service may be driven by the focus market that most of the RFIs have in terms of their very specific objectives customers

• Marketing was scored relatively low, which corresponds with the opinion from the stakeholder interviews that they focus on development rather than making money as an overall objective

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Summary of Skill Areas

0%10%20%30%40%50%60%70%80%90%

100%

Per

cen

t

Importance Experience

Funding strategies is perceived to be the most important skill area by the RFIs

• The top 5 areas of importance are ‘funding strategies, ‘loan book management’, ‘RFI Strategy skills’ ‘RFI client service’, ‘legal and ‘Recruiting’

• Contract management is seen as the least important skill area by RFIs, possibly because most of the RFIs have fixed contracts with their clients

• Due to the importance of funding for their organisations and the associated risk to their organisations it is not surprising to see that as the top skill areas

• The importance of client service may be driven by the focus market that most of the RFIs have in terms of their very specific objectives customers

• Marketing was scored relatively low, which corresponds with the opinion from the stakeholder interviews that they focus on development rather than making money as an overall objective

High importance areas with low skill levels and a low % of trained respondents should be high priority areas for future training initiatives

High importance areas with low skill levels and a low % of trained respondents should be high priority areas for future training initiatives

-RFI skills areas

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Summary –skills gap

A skills gap for RFIs was was conducted by subtracting the ‘skill level’ from the ‘importance’

Summary of Skill Gaps

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Funding Strategies

Loan Book management

RFI Strategy Skills

RFI Client Service

Recruiting

Cash Management

Management

Regulatory and Legal compliance

RFI Marketing

RFI - Finance

SMME

Contract Mgt

Percent

Experience

Importance

• ‘Recruiting’ had the largest skill gap (31%) with funding and strategy skills close second with 28% and 26% respectively. This also corresponds closely with the training received

• ‘Contract Management” and ‘Finance’ (4% and 5% respectively)had the lowest skills gap attributable to relatively low importance and high skill levels (12%)

• Funding strategies rated highest in terms of importance, with a high gap percentage(28%), thus a clear need for the RFIs’ training requirements to develop their funding mechanisms

The higher skills gaps highlight the priority areas for skills trainingThe higher skills gaps highlight the priority areas for skills training

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RFI recommendations

Recommendations Further investigation into the gaps identified from this survey needs to be done from a more

representative sample. Although the analysis identified some issues for the RFIs, a focused analysis on RFIs must be done to ensure identification of their needs on a specific basis

All the RFIs noted the need for application processing training that ensures quality loan book. This, together with the focus on clear cut collection processes will ensure good management of their loan book

Recruiting was identified as the area where there was the biggest gap between importance and current skill level. Provisionally, the recommendation is that skills development interventions should focus on this area for development

Funding Strategy was also identified as a key area of development for the RFIs. They are dependent on sourcing cost effective funding at a cheaper rate than the normal institutions, with the added complexity of above average risk exposure. This adds to the difficulty of sourcing funds for expanding their operations.

Strategy Skills rated high in terms of importance for both the RFIs and the RFI clients (SMME). The reason for this is that they need to make sure that their clients have a solid understanding of their business and a viable business strategy and plan, that will help them with repayment of their loans. The strategy skills for the RFIs themsevles will help them identify better ways in which to approach a highly complex and difficult market and reach their specific developmental objectives

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Next steps for RFIs

1. More detailed analysis is required on the RFIs over a broader spectrum of representatives, specifically identifying micro financiers that provide similar services to the SMME market and identifying similarities and differences in terms of skill development requirements

2. Implement skills and training initiatives that can address funding, contract management and recruiting skill needs based on initial assessment of the situation

3. Analysis of the overlaps between different market SETA objectives to identify synergies and opportunities for collaboration

4. Identify opportunities where BDS support currently available to the RFIs and the SMME clientele can be developed and enhanced to fit to specific requirements of the RFI business objectives

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Contents

Introduction International best practice Training delivery mechanisms Curriculum content Recommendations on skills programmes / learnerships Overall conclusions Implementation plan Pre-project decisions Next steps

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Recommendations on skills programmes / learnerships

The reasons for our recommendation are listed below No qualification in micro finance exists at present, leaving the learner without a specific goal /

qualification to work towards The approach to the training of micro finance-related topics has been very fragmented, with little

agreement between providers on content, methodologies and guiding principles• In the past, training has either been very generic in nature or very specific to a particular business

There is a lack of existing micro finance-specific accredited education and training institutions to offer the formal training components of the learnership

• Capacity needs to be developed within the training industry to cater for the specific training needs of micro-financiers

• Capacity building may take a number of years before training providers are proficient in the delivery of micro-finance specific training content

Learning should be prioritised by industry demand for learning initiatives Extensive use of the 80/20 principle should be used in this regard where the key skills areas for micro-

financiers are prioritised

Modules within identified skills areas could form the basis of skills programmes, which could form the basis for credits towards a future qualification in micro finance

Skills programmes should be instituted initially, with scope to develop a learnership in the future as soon as a formal qualification in micro finance is developed and capacity has been built for training providers

Skills programmes could be made up of modules within skills areas which micro financiers can pick and choose from, depending upon their training needs

Skills programmes could be made up of modules within skills areas which micro financiers can pick and choose from, depending upon their training needs

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Recommendations on skills programmes

Purpose Provide micro finance practitioners with a wide choice of

industry specific and generic training to promote professionalism though building knowledge and skills in the industry

Focus The Skills programme will initially be focused on developing

skills in competency areas identified as being high priority. These areas have been identified in the learner needs analysis as Risk Management, Loan Book Management, Client Service, Legal and Regulatory Compliance, Cash Management and Finance

Once these skills programmes have been rolled out, the rest of the skills areas can be developed as part of the skills programme

Orientation Relevance, importance and necessity of the Skills

programme should be driven through micro-finance business needs and demand

Learning Activities A combination of Distance learning and face-to-face learning

activities will need to be coordinated through a central body. The proposal is that this be a centralised BDS / Training centre

Several skills programmes, made up of modules could be implemented. The overall guiding principle should be flexibility of learning, based upon learner needs

Skill areas e.g. Risk Management,

Client service,Loan book Management

Modulese.g. within Risk Management,

Fraud Management as a module could form the

basis for a credit towards a qualificationin micro finance

Sequencing of learningHigh level recommendations of the sequencing of learning events

should be formulated e.g. Business strategy should come before funding

Skills programmes

Ref: Skills Development, Ian Bellis, 2001

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Recommendations on skills programmes

In order for the skills programme to work, a clustering of skills areas into core, fundamental and elective learning needs to be performed

Fundamental Learning Core Learning

Definition:

Learning which forms the grounding or basis needed to undertake further learning required in obtaining a qualification

Suggested fundamental skill areas:

• Client Service

• Client Administration

• Complaint Procedures

• Communications

• Personal development

• Leadership Development• Management development

Definition:

Compulsory learning required in situations contextually relevant to a particular qualification

Suggested core skill areas:

• Risk Management

• Cash Management

• Legal and Regulatory Compliance

• Loan Book Management

• Staff Management

Definition:

A selection of additional credits at the level of the NQF specified, from a choice of may be made to ensure that the purposes of the qualification is achieved

Suggested elective areas:

• Finance

• Marketing

• Funding strategies

• Business Strategies

Elective Learning

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Overall conclusions

The implementation of the training should be pushed through in the form of modular-based skills programmes, offering the learner flexibility of learning, based upon training and development needs

The overall guiding principle should be that of a learning organisation approach The delivery of training materials should be through a combination of different delivery

channels and should be offered in parallel through both distance and face-to-face methods

Use should be made of the 80 / 20 principle when implementing the Skills programme The 20 percent of learning that will deliver 80% of the value to micro financiers should be

prioritised in the roll-out

Extensive use should be made of South African, micro-finance industry specific content for case studies and other training materials

Extensive marketing of the Skills programme should be done to increase awareness

Skills programmes, made up of prioritised modules could be implemented as flexible learning offerings to the micro-finance industry

Learning initiatives should be prioritised by industry skills needsLearning initiatives should be prioritised by industry skills needs

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Recommended implementation approach

Month 1 Month 2 Month 3 Month 4

Select training providers

Select Micro financiers for prototype

Month 5

Detailed design of curriculum, including the development of skills programmes within the curriculum

Pilot: Training Program

Prototype: Training Program

Roll Out Phase 1 Training Program

Communication

Project Management

PROTOTYPE PILOT ROLL OUT

Select Micro financiers for

prototype

Select Micro financiers for

roll out

DETAILED DESIGN

Consultative Forum Sessions

Cu

rric

ulu

m

Agr

ee w

ith fi

ndin

gs a

nd r

ecom

men

datio

ns

Development of unit standards, based upon skills programmes *

*Unit standard development would probably continue for at least a two year period

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Next steps

Final agreement on the prioritisation of skills areas should be reached by the project steering committee

More in-depth content knowledge for each skills area should be identified through consultation with a wide range of industry experts

Expression of interest communications need to be developed should be expressly geared towards service providers who are able to deliver on the development of agreed prioritised skills training materials

Training providers who were identified by the project team as well as those who responded to the expression of interest should be attend a detailed briefing session on the express requirements for the development of training materials for the prioritised skills areas

Development timelines, level of detail, materials content quality assurance standards, guidelines for delivery methods of training materials such as CBT, videos and manuals should be outlined in the briefing sessions

Feedback from attendees should be obtained and recorded for RFP purposes An RFP (Request for proposal) should be sent out to all interested training provider parties Unit standards should be developed from the skills programmes once the detailed design

of the curriculum has been established

Prioritised skills areas should be agreed upon and developed first

Learning initiatives should be prioritised by industry skills needsLearning initiatives should be prioritised by industry skills needs