Powerpoint capacity building tmf 2011 10 11 (no quiz))

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Powerpoint capacity building tmf 2011 10 11 (no quiz))

  1. 1. 10 commandments of TMF Capacity Building <br />Angelica Senders<br />For Terrafina Micro Finance (TMF) <br />October 12, 2011<br />
  2. 2. 1. Capacity Building is the process of supporting the development of capacities of partner organisations<br />Capacity Development:is an endogenous process of the organisation (or any humans system) to develop its capacities ‘to do something’ (e.g deliver outputs = services or products). <br /> Continuous development of it capacities is an objective of all successful organisations<br />Capacity Building: is the process of supporting the development of capacities of an organisation. <br /> Capacity Building is an activity/ strategy of development organisations<br />
  3. 3. 2. The TMF strategy (= providing loans ànd CB) centers around Capacity Development <br />Taken from TMF business plan: <br />TMF hopes to achieve its objectives through:<br />1. Building of MFI capacity, resulting in: <br />effective graduation (financial and institutional sustainability)<br />appropriate financial services for rural productive poor <br />effective (SPM) to ensure improved living conditions<br />2. Facilitation of increased financial service delivery by MFIs in rural areas and in the agricultural sector (including value chain finance).<br />3. Strengthen the capital base of partner MFIs so as to expand capacity to borrow and/or meet regulatory requirements<br />4. Facilitate inclusive financial sectors (meso-level, MFI associations etc.).<br />
  4. 4. 3. The development of capacities of MFI for TMF is a means to an end:<br />Output: Expanded rural outreach by sustainable microfinance providers for rural producers and entrepreneurs<br />Outcome: rural development and poverty alleviation<br />Internal capacities (capabilities)<br />Input<br />Output<br />Outcome<br /> External factors<br />
  5. 5. TMF uses MicroScore as tool to systematically identify which capacities are to be developed to ensure graduation of the partner organisation<br />The tool assesses the strengths and weaknesses of an organisation in 4 domains of internal capacity (or capability). <br />They are closely related and by themselves they do not contribute to social change <br />Together they contribute to an organisations capacity to achieve its objectives in bringing about social change <br />
  6. 6. Internal capacities (capabilities)<br />Governance<br />Institutional<br />Input<br />Output<br />Outcome<br />Services & SPM<br />Financial performance<br /> External factors<br />
  7. 7. MicroScore is inspired by other models:<br />
  8. 8. 5. Capacity building leads to observable developed capacities<br />Based on MicroScore assessment capacities to be developed are identified<br />Assessment are of a participatory nature but include an expert view<br />Observable improved capacities are agreed upon<br />Capacities to be developed are agreed upon and formalized <br />In observable terms<br />time specific: before contracting, e.g in the first 6 months, within 1 year)<br />Development of capacities is monitored<br />When results are not achieved, this is sanctioned! (‘up or out’)<br />Assessments are repeated on a regular (yearly) basis (for this MicroScore is used in adjusted form (shorter, faster) <br />
  9. 9. 6. Capacity building is a tailor-made process involving a variety of activities<br />Capacity building needs of each MFI are specific, related to its history, circumstances and life-cycle. <br />CB involves a combination of formal and informal activities, including training and on the job training and advice and accompaniment:<br />(In)formal training of staff and Board in many different subjects;<br />Coaching of Board, management and staff.<br />Development and implementation of policies, systems and procedures, such as MIS, HRD, manuals;<br />Services, such as audits, ratings, facilitation of strategic and business planning, <br />Assistance in the development of innovative services<br />Improving social performance management of the MFI <br />
  10. 10. 7. Funding of CB is joint responsibility of TMF and the partner organisation<br />Grants for capacity building is one of the instruments to support microfinance, others are capital grants and access to loans. <br />A timely, and coherent combination of instruments is needed to effectively strengthen a MFI. <br />This does not imply that TMF takes over the responsibility of the partner to develop its own capacities and contributes to it financially and in kind!<br />In CB trajectories own efforts and contributions of the partner organisations are specified<br />
  11. 11. 8. Facilitation of capacity building is the responsibility of TMF staff (international and local), but carried out in close cooperation with locally available expertise<br />As there are local:<br />Consultants<br />Networks<br />Knowledge institutes<br />Associations/ platforms of MFIs<br />Other international organisations involved in CB of MFIs<br />
  12. 12. 9. The results of CB are monitored at different levels, with different methods, on a regular basis <br />CB Input: <br />CB trajectories as facilitated by TMF staff <br />Capacity Development (graduation)<br />Progress on 4 MicroScore domain<br />Output (service delivery of partners):<br />Expansion (broadening/ deepening) of rural client outreach <br />Strengthening of the enabling environment for rural microfinance, through support to sector initiatives<br />Outcome:<br />Development and poverty alleviation (incl gender)<br />through improved access to microfinance for rural entrepreneurs and producers<br />
  13. 13. 10. Multi-stakeholder platforms play an important role in the TMF strategy; systematically enhancing their capacities is a crucial element in the TMF strategy<br />Examples are: Associations of MFIs, platforms of value chain actors<br />Support to the development of their capacities follows the same logic as described for individual organisations <br />GIZ formulate 5 domains for capacity development of multi stakeholder processes in it new strategy called Capacity Works:1. Strategy : clear and plausible strategic orientation2. Cooperation: a clear understanding of who is being cooperated with and how3. Steering structure : an effective steering structure4. Processes: a clear understanding of the key strategic processes5. Learning and innovation: supporting learning capacity development <br />
  14. 14. TMF: 10 commandments/ guiding principles for CB<br />Capacity Building is the process of supporting the development of capacities in partner organisations<br />The TMF strategy (= providing loans ànd CB) centers around Capacity Development <br />The development of capacities of MFI for TMF is a means to an end: <br />Output: Expanded rural outreach by sustainable microfinance providers<br />Outcome: rural development and poverty alleviation and increased access to finance for rural entrepreneurs and producers<br />TMF uses MicroScore as tool to systematically identify which capacities are to be developed to ensure graduation of the partner organisation<br />Capacity building leads to observable developed capacities <br />Capacity building is a tailor made process involving a variety of activities<br />Funding of CB is joint responsibility of TMF and the partner<br />Capacity building is the responsibility of TMF staff (international and local), but carried out in close cooperation with locally available expertise<br />The results of CB are monitored at different levels, with different methods, on a regular basis. <br />Multi-stakeholder platforms play an important role in the TMF strategy, systematically enhancing their capacities is a crucial element in the TMF strategy<br />

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