curriculum framework report curriculum framework report may 2002
TRANSCRIPT
Curriculum Framework Report
CURRICULUM FRAMEWORK CURRICULUM FRAMEWORK REPORTREPORT
MAY 2002MAY 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
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
29
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
30
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
32
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
Risk M
anag
emen
t
Loan
Boo
k Man
agem
ent
Client
Ser
vice
Lega
l & R
egula
tory
Com
plian
ce
Cash
Man
agem
ent
Financ
e
Fundin
g Stra
tegie
s
Busine
ss S
trate
gy
Client
Adm
inistr
ation
Staff
Man
agem
ent
Compla
int P
roce
dure
s
Servic
e Pro
vider
s
Mar
ketin
g
SMM
E
Per
cen
t
33
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
34
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
55
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
56
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
57
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
58
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
59
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
60
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
61
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
62
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
63
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
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
65
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
66
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
67
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
68
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
69
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
70
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
71
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
72
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
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
74
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
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
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
77
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
78
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
79
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
80
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
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
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
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
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
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
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
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
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
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
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
91
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
92
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
93
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
94
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
95
Contents
Introduction International best practice Training delivery mechanisms Curriculum content Recommendations on skills programmes / learnerships Overall conclusions Implementation plan Pre-project decisions Next steps
96
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
97
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
98
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
99
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
100
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
101
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