Jove Tapiador
MABS Regional Manager, Luzon
2009 RBAP-MABS National Roundtable Conference
May 12-13, 2009
Hyatt Hotel and Casino
Manila

INTRODUCTION
 Organizational
effectiveness and efficiency is
founded on the institution’s
 shared vision;
 clear strategy; and,
 a well-defined structure.

7S FRAMEWORK
 McKinsey’s 7S Framework
 Shared Vision
 Strategy
 Structure
 Systems
 Skills
 Staffing
 Style

 Organizational structure changes in response to
changes in the shared vision and strategy as well
as changes in the operating environment.
 This is what it means to be flexible and
adaptable.

 Oftentimes, managers  McKinsey’s 7S
focus on the their Framework
behavior or their  Shared Vision
staff’s behavior.
 Strategy
 At other times,
 Structure
managers look at their
 Systems
staff’s skill sets.
 Skills
 Sometimes, they
 Staffing
assume that a vision
and clear strategy will  Style
take them through.

 But often what is  McKinsey’s 7S
ignored is how an Framework
organization’s  Shared Vision
structure and systems  Strategy
affect implementing  Structure
activities.  Systems
 Without subsequent  Skills
modification, people  Staffing
revert to their old
Style
habits, become 
frustrated, or find
themselves facing
inflexible policies and
procedures.

CASE STUDIES
 Cases show how three organizations adapt to
changes in the marketplace, increase in clients,
increase in geographic scope, and greater
regulation.
 This also attempts to visualize next evolution of
microfinance organizational structure.

CRYSTAL BALL EXERCISE
 Year Clients Account Officers/Sup
 Year 1 150 2
 Year 2 300 3
 Year 3 900 7
 Year 4 1,800 13
 Year 5 3,600 26
 Year 6 7,200 52
 Year 7 12,000 105
 Year 8 17,000 117
 Year 9 21,000 144
 Year 10 25,000 170

 Others would shrug it off. “I don’t believe we’ll
reach that size.” (Lack of Vision.)
 Others would say, “That’s great! That’s what I
want. Now how will I go about it?” (Lack of
Strategy.)
 Then some would mutter, “I know that will
happen, we’ll just do the same things we’ve been
doing.” (Lack of flexibility.)

CASE 1: FROM START-UP TO NEAR
GROWTH
Clients Less than 5,000
No. of AOs Less than 38
Organiza:on • Integrated with branch opera:ons.
• MF account officers usually report directly
to the branch manager or loan officer.
• For larger opera:ons, MF supervisor
oversees day‐to‐day opera:ons over MF
opera:ons.
• Clear lines of repor:ng to the branch head.
• Microfinance personnel supported by
regular bank support units such as HR,
Treasury, etc.

CASE 1: FROM START-UP TO NEAR
GROWTH

CASE 2: FROM GROWTH TO
MATURITY
Clients 5,000 to 15,000
No. of AOs 32 ‐ 105
Organiza:on • Integrated with branch opera:ons.
• Usually have an MF supervisor overseeing MF
opera:ons and repor:ng directly to the branch
manager.
• MF opera:ons spread over a number of
branches requiring MF Head Office unit
supervision.
• Consolida:on of reports at head office.
• MF opera:ons s:ll supported by head office
units.

CASE 2: FROM GROWTH TO
MATURITY

CASE 3: MATURITY TO …
Clients 15,000 to 25,000
No. of AOs 105 to 168
Organiza:on
• Begins to affect bank culture.
• Greater senior management aVen:on and resources.
• Majority of MF opera:ons s:ll integrated with branch
opera:ons, but MF lending offices being established.
• Usually have an MF area supervisor overseeing MF
opera:ons repor:ng directly to head office.
• MF account officers have supervisors who report to the
branch manager.
• MF opera:ons supported by dedicated head office
units.

CASE 3: MATURITY TO …

CASE 4: NEXT GROWTH STAGE OR
DECLINE
Clients Greater than 25,000
No. of AOs Greater than 160
Organiza:on
• Splintered culture between regular bank and
microfinance opera:ons.
• Establishment of dedicated senior management team
for microfinance.
• Mix of MF opera:ons aVached to the bank branches
and MF opera:ons aVached to dedicated lending offices.
• Usually have an MF senior officer overseeing bank‐wide
MF opera:ons at head office.
• Branch managers or MF area supervisors have oversight
over MF opera:ons.
• MF opera:ons supported by dedicated head office
units.

CASE 4: NEXT GROWTH STAGE OR
DECLINE
Branch
Head Office Manager
Head Office Cash Accounting Loans
Support Depts
Microfinance Microfinance
Support Depts

 Banks need to often re-align organizational
structure and systems to meet the challenges
of growth:
 More clients leading to more capital requirements
 More capital leading to more fund raising activities
 More clients leading to more staff and support
people
 More people leading to more management time,
attention, and resources
 More management time, attention, and resources
leading to more management specialization and
control.

CONCLUSIONS
 A clear vision and detailed strategies
are not enough.
 At a certain scale, employee behavior
modification and management training
have limited impact.
 Accept reality of complexity in large
organizations.
 Therefore, attention to reporting
structures and improving bank-wide
management systems become critical.

 McKinsey's Performance Leadership Survey:
 An in-depth questionnaire designed to explore an
organization's effectiveness.
 Set up in 2002, the database contains information
from almost 400 discrete business units of 231 global
businesses in all major regions and industry sectors.
 More than 115,000 individual managers and
employees have participated.

 Thestudy revealed the following key strategies to
organizational effectiveness:
 Clear vision and strategy
 Accountability
 Openness and trust, basis of performance culture

Thank you.