2007 2nd qtr issue

communi-kA quarterly publication 2nd quarter 2007 . VOL 4 NO 2

KMBI “Partner for a Progressive Life”

Kabalikat para sa Maunlad na Buhay, Inc.

more than microfinance

KMBI earmarks P184M for Luzon expansionAnticipating its expansion in Luzon, KMBI earmarked Php184 million for the establishment and operation of eight new branches in Metro Manila and Bulacan. From this expansion comes a projected increase of 33 percent for total client outreach, 22 percent for manpower, and 34 percent for loan portfolio.

“The funding for the expansion shall come from the organization’s income, borrowed funds, and grants,” said Sancho Montaos II, finance and accounting manager. As to the availability of the funds, Rizaldy Duque, resource mobilization & communications manager, said, “The funds shall be provided in time as five banks have already opened their doors for us.” He added, “KMBI will

still seek for more grants through partnerships with private corporations and individuals, as well as foundations, not only to lower its cost of fund but also to continuously promote synergy in achieving a meaningful social impact.” To manage the upcoming operations, selections and movements of personnel were implemented. Edgardo Atienza, branch manager of Metro Manila South 1 (MMS1), was promoted to handle Bulacan area, while Ronald Ravelo, area manager of Calabarzon 1(Cal 1), was transferred to NCR area. Ronald Laureno, program unit supervisor of MMS1, succeeded Atienza, while Roschelli Clemente, who managed Upper Cavite, succeeded Ravelo. Elvie

KMBI earmarks P184M/7

HO concludes renovation

KMBI Board of Trustees pose for a smile during the turn-over. Behind is the KMBI logo.

Renovation of the head office towards a more corporate look was finally completed and turned-over on June 25. Scope of work included redesigning of deparment work areas in all three floors and creation of additional rooms for the Board of Trustees, training, library, prayer, clinic, among others.

Above photo taken from Google Images

| Communi-K | 2ND QTR 20072

“Reaching out to 250,000 clients on our 25th year”

Selected Kidapawan branch staff bested others in the search for 2006 KMBI Best Employees. Awarding was held during the Annual General Meeting at the Waterfront Insular Resort Hotel, Davao City. Rhodora Sabillo was awarded best branch manager, while Abelardo Tejada, Jr. and Kristine Charol Nim were chosen as best program unit supervisor (PUS) and best program assistant (PA), respectively. Kidapawan branch was also hailed as the best branch for the third straight year.

The selection was narrowed to eight candidates vying for the best PA category and four for PUS category. Best branch and best branch manager categories were chosen unanimously by the board of judges. The awardees were given plaques and cash incentives.

Criteria for judging were divided into technical and non-technical categories. Technical category included staff performance in relation to client outreach, portfolio-at-risk, loan portfolio & client turnover. The non-technical category included records management, transformation, and modeling of KMBI’s core values. Best support group staff Another award intended to recognize best support group staff was given to Hector Celajes, Jr., administration associate. “The awardees proved themselves worthy of the awards,” said Arthur Gonzaga, human resource development manager. “They exhibited exemplary performance which contributed to the success of the organization.For this, they should be recognized.” One

Kidapawan bags 2006 awardsawardee said that the recognition is also a challenge since, performance-wise, he needs to be consistent to prove he is worthy of it. The judges for the said awards were composed of the management committee.

Loyalty awardees Together with the performance awards was the loyalty awards for the staff who have rendered five years of service. The awardees were Carmela Porras, operations manager for Luzon; Reynald Alpajando, Bicol area manager; Fay Lorraine Amodia, Calabarzon 2 area manager; Hazel Laurente, Davao area manager; Edyline Ramos, fund and resource officer; Ian Mark Villacruz, Lucena branch manager; Gloria Baluyot, Biñan branch manager; Grace Bautista, Metro Davao II branch manager, Marion Esther Cruz, program unit supervisor of Upper Cavite; Jerzon Solomon, program unit supervisor of Metro Davao II , and Mirasol Ligad, program unit supervisor of Surigao. Each of them was awarded with a plaque and cash incentive.

Kidawapan remains on topFor the second quarter of this year, Kidapawan branch of NORSOCO area remains on top with 4,545 active program members, Php16.39 million loan portfolio, 23.90% increase of client turn-over, 212.81% operational sustainability, no portfolio-at-risk (PAR), and high qualitative scores. For the third consecutive year, it has maintained the quality of performance in terms of operations and transformation, which the organization has set as standard for all branches to reach.

Top: Key officers and members of the Board of Trustees award plaque and cash incentive to Kidapawan staff for their exemplary performance in 2006; Right: Rhodora Sabillo, branch manager of Kidapawan, cried for joy upon receiving the said award. Board Corporate Secretary Aurelio Llenado, Jr. looks on.

“Now these are the gifts Christ gave to the church: the apostles, the prophets, the evangelists, and the pastors and teachers.” (Ephesians 4:11)

3KMBI |

Caraga launched the “19 Strong” program, a strategy to empower the branch staff towards competence, teamwork and excellence.

A brainchild of Caraga Area Manager Enrique Maca, the program seeks to boost staff capacity and morale through developmental training and coaching by their respective branch managers. It uplifts

individual contribution of the staff since it is integral to the achievement of the area’s goals. “If our staff excel in character and skills, and are united, no trials or problems will hinder us,” Maca said. “The area is aiming for 16,800 transformed clients by year end.” On the month of May, they focused on the theme “Building

Caraga launches “19 Strong”

L-R: Area Manager Enrique Maca, Branch Manager Marianne Gomez, Branch Accountant Sharon Cruzado, and Program Assistant Marinel Villarin with some visitors from Germany.

KMBI prepares for the Luzon Microentrepreneur Summit to be held in Araneta Coliseum, Quezon City on October 22, 2007. The event is envisioned to be the first of its kind and the largest event to be hosted for the benefit of microfinance clients. The activity is also a response to KMBI’s direction to deliver demand-driven and sustainable non-financial services to the program members.

The summit seeks to address the multi-level needs of some 10,000 program members from all over Calabarzon operations. “This is a large-scale event since it will involve implementors and microentrepreneurs,” Enterprise

Development Unit Head Hazel Rosacia said. “Aside from this, the summit also provides them the opportunity for learning on spiritual, economic, and social aspects, as well as provide them social interaction and networking, awareness of KMBI’s strategic direction and core values, and involvement in a time of praising,

hearing God’s Word, and praying.” The concept of this summit has

been brewing within the management committee for years. “This has been a long time dream of the organization – to gather this many program members in a one-time event,” said Liza Eco, over-all summit coordinator. The committee is considering conducting a similar event for Mindanao microentreprenuers. One of the resource speakers for the event will be Chinkee Tan, founder of Millionaires in Business. He will talk on Personal Financial Management. Also, Clem Guillermo, senior trainor of Systematic Training for Effective Parenting will discuss Family Matters. Other topics will be livelihood opportunities and significance of women in the society. On the event, five outstanding

KMBI prepares for ME Summitmicroentrepreneurs from Luzon and Mindanao will be recognized for their exemplary business performance and accomplishments, and for serving as inspiration to other microentrepreneurs. Designed similarly with Citigroup’s Microentrepreneur of the Year (MOTY) awards, this recognition seeks to build awareness and support for microenterprise development as tool for employment generation and poverty reduction. Currently, the Enterprise Development Services (EDS) unit is facilitating the application for the said recognition. Another highlight of the summit is the “Pangkabuhayan Raffle,” with nine-seater jeepney, tricycle, and mini-grocery showcase with freezer as major prizes. The minor prizes include sewing machines, gas ranges, pedicabs and refrigerators. There will also be door prizes like flat irons, rice cookers, desk fans, double burner gas stoves, osterizers, cellphones and grocery packages. Tickets for the said raffle will be disbursed to all program members of KMBI.

Caraga launches/10

The management committee discusses developments of the Summit every week.



As KMBI pursues to actively share and promote Christian values, a three-day annual spiritual retreat, with the theme “Preparing the Way for Greater Impact,” was held at Island Cove Resort and Leisure Park in Cavite. Some 355 staff along with members of the board of trustees convened to be physically and spiritually revitalized, and to reaffirm their commitment to the fulfillment of Goal 25.250.

“Ready, get set, go!” the staff responded in affirmation to the challenge of Rev. Philip Tarroja,

trustee of the Alliance of Philippine Partners in Enterprise Development (APPEND), which is to face Goal 25.250 head on. He shared that God is the one equipping people to face the task at hand. Participants, from different parts of Calabarzon, Bicol, and Metro Manila, were also sent to different break-out sessions to attend especially conceptualized topics that would meet their various needs. For the program assistants, topics were on the core values, intimacy with God and family matters to strengthen them as they are

Luzon staff affirm commitment to Goalthe frontliners in the field. These were delivered by Rev. Tarroja and Ernesto Rodejo, chairman and president of One Heart Gospel Ministries, Inc. For the program unit supervisors, branch managers and head office staff, topics were on basic counseling and people handling to upgrade their skills on how to effectively manage and coach their staff. Doctor Willy Basilio, senior pastor of Marikina Christian Fellowship, and Dr. Gloria Jimenez, planning and evaluation director of Department of Agriculture, were the resource speakers. A time of praise was set for the participants to come together in worship before God. Before and after every plenary talk, they sang and celebrated their victories in God and gave back to Him all glory for everything that He has bestowed the organization. These sessions sought to enhance their relationship with God as this is the major goal of the organization for the staff. The 4HG band led the worship experiences. Ample time during the latter part of the afternoons and evenings were given for participants to rest, play and socialize with staff from other branches. Some of them engaged in teambuilding activities which strengthened staff relationship. The organization invested Php1.8 million for the said event. The participants came from different parts of Calabarzon 1,2, and 3, Bicol and Metro Manila. Only 7% of the total Luzon staff was not able to join the event for various reasons. For the Mindanao staff, the retreat is slated on July 19 to 21 at the Waterfront Insular Resort Hotel, Davao City.

Clockwise: Staff paired up to pray for each other during the commitment service; Afterwards, they sang “Ang galing ng Panginoon”(God is good); Lower Cavite staff in a praise and worship session; and Executive Director Edgardo Mercedes, Chairman & President of the Board Amelia Gonzales and Rev. Philip Tarroja after a plenary session.


5KMBI |

Koronadal equips PAs and center leaders Some 170 center leaders of Koronadal branch were equipped on basic entrepreneurial skills and management of centers in a Center Leaders’ Conference (CLC) held in Marvella Plaza Hotel, Koronadal City.

The conference was held to start a partnership with the center leaders in the delivery of Enterprise Development Services to their respective members, increase their level of awareness on available resources and services, empower them in handling their centers and members, as well as establish innovations to improve financial management in their respective centers.

Four modules were discussed in this two-day conference. On the first day, Norsoco Area Manager Nemwell Arzaga and Koronadal Branch Manager Rhanny Barrera discussed the leadership and basic center management, respectively. Arzaga taught how to become effective leaders and people management, while Barrera gave guidelines on proper recording to improve the financial management and accountability in the centers. For her part, EDS Head Hazel Rosacia facilitated the BEST (Business, Expenses and Savings Training) games to hone the participants’ skills in record-keeping, profit and loss statement, and cash budgeting. “It is a reality-based business game wherein participants experience real-life business situations,” explained Rosacia. “The groups are like manufacturing firms where they device ways to keep their businesses going. They choose their president, secretary, treasurer, finance officer,

quality controller, purchasing officer and marketing manager. Through this, they learn many lessons applicable to their own businesses.” After the game, Rosacia reinforced the activity through an interactive session on the concept of marketing. The participants showed how they market their own products. Invited guests from Department of Trade and Industry (DTI) and Technical Education and Skills Development Authority (TESDA) shared their insights on the topic.

Basic entrep training for PAs A two-day pilot-testing of the Entrepreneurship and Community Organizing Workshop (ECOW) was conducted for program assistants at the Punta Isla Resort, Lake Sebu, Koronadal City. This is in response to the need to adapt to the many changes in the microfinance industry that have taken place over the past years. ECOW is one of the activities under the fifth strategic direction of Goal 25.250, which is to train and equip Board and staff of both the NGO and the Bank on leadership and management towards technical expertise and social responsibility. It is conducted to equip program assistants on enterprise development in the communities.

During the training, Rosacia presented EDS’ development programs and introduced BEST games. Then, she spoke about various techniques on the technology of participation. She encouraged participants to involve in the development of their local community. Aside from this, she also talked on facilitation skills, while Arthur Gonzaga, human resource development manager, talked on adult learning principles. The participants said the training was necessary and helpful especially in maintaining their centers. “The initiative is a must for future undertakings of the organization,” said Calvin Perez, EDS senior associate. “This serves as tool for staff to effectively provide EDS.”

Top-down: Koronadal center leaders

playing the BEST (Business, Expenses,

and Savings Training) games;

Branch staff during the Entrepreneurship

and Community Organizing Workshop

(ECOW).



Lucena branch hosted on April 10 a dental mission for their clients in Barangay Malicboy, Pagbilao, Quezon, as part of its holistic transformation projects. Some 140 clients, along with their family members, benefitted free dental services and medicines through the assistance of Dr. Joseph Garcia and the partnership of some government workers. Aside from the free services, Dr. Garcia, along with Councilor Joanne Mercado, provided the medicine and equipment for the mission. Branch Manager Ian Mark Villacruz reported that it was the

first time that a dental mission is conducted in the area. “It is an opportunity for us to promote the need for dental care among our clients since many tend to disregard dental health,” said Cherrie Lyn Asis, prorgam assistant of Lucena. The activity was also an opportunity for KMBI to strengthen the clients’ understanding of holistic transformation program. It was also a chance to create partnership with the local health unit and private individuals since the activity would not be realized without their support.

Lucena hosts dental mission

Program members of Lucena branch and their relatives await their turn in the free dental service facilitated by the branch.

Local dentist Joseph Garcia extracts tooth of a program member.

“Kadang-kadang” or the Filipino version of stilt was among the games that brought together 225 center leaders of Butuan branch on a half-day sportfest on June 2 in the Free Methodist Bancasi camp grounds. The branch staff organized the activity to encourage sportmanship and excellence through teamwork,

Pinoy games bring together Butuan center leaders

and to emphasize the importance of good health. This is part of the holistic transformation program of the organization.

“We saw that the clients need some exercise,” said Jennifer Mendaje, program assistant of Butuan branch. “They were always busy with their businesses and loan repayments.”

Center leaders of Butuan branch do more than just manage centers: they also jump high to win the sack race in a half-day sportsfest.

During the sportfest, the program members were given the chance to play kadang-kadang, tug of war, and sack race.“Teamwork was evident as the center leaders grouped to devise strategies to win the games,” reported Mendaje. Prior to holding the games, Leah Medado, an entrepreneur, delivered a short reflection based on Nehemiah 4:6. She talked about eagerness in working for a specific project. She reminded the leaders to place their hearts on serving their respective members since they are doing it for God and not for the organization. Caraga Area Manager Enrique Maca for his part updated the center leaders on the new programs and benefits of the organization for the clients. Before the activity ended, a participant commented that she enjoyed the activity because not only was it her first time to play those games, but also she was able to meet other center leaders. The activity was initiated by Butuan Branch Manager Marianne Gomez and Caraga Area Manager Enrique Maca.


7KMBI |

Executive Director Edgardo Mercedes, along with Finance and Accounting Manager Sancho Montaos IIand Operations Manager for Luzon Carmela Porras, learned new techniques on capital sourcing in a seminar entitled “To the Mainstream: Capital Structuring for Sustainable Microfinance” together with other microfinance practitioners from Asia in Hyderabad, India.

Management learns capital structuring in India

“Microfinance institutions (MFIs) are now looking for other sources of funds in the form of credit (borrowings) and equity (investments) since the trend is changing from being donor-driven to being self-sustainable,” said Montaos. “Less and less donors are putting in money in the MFIs as in the case in the Philippines; thus, we learned how to achieve a capital structure or funding

L-R: Finance & Acounting Manager Sancho Montaos II, Intellicap Team Leader Manju Mary George, her assistant Rhadika, Executive Director Edgardo Mercedes and Luzon Operations Manager Carmela Porras in India.

KMBI earmarks P184M...Ruiz is appointed to handle Valenzuela branch, Emerlyn Singson for Meycauayan branch, Ellen Ruth Sabio for San Jose branch, and Jamenil Macahilos for Camarin branch. Their respective program unit supervisors took on their task as branch managers of their previous assignments. Opening branches in these locations prepares the organization for the establishment of its proposed bank, which shall be put up in Valenzuela City in 2008. “The profitable portfolio from these strategic branches will be transferred to the proposed bank to help the bank to take-off or start-up fast,” according to Montaos.

For Deputy Director Liza Eco, the expansions also meet the microfinancing needs of a market that is existing in the area. “Former clients and other microentrepreneurs are asking if we have operation in Valenzuela City,” said Eco. “Our head office is in the city. It is high time that we open again a branch to cater to the needs of microentrepreneurs here.” Various MF players cater to Metro Manila and Bulacan which gives microentrepreneurs in the area more options. Ravelo pointed out that the organization is driven by a much bigger mission. “Thus, regardless of number of players, KMBI is resolute in ushering

communities to transformation,” he said. “This makes KMBI different from other organizations.” The branch openings complete 50 percent of the projected expansion for 2007. The other four branches will be in Marikina, Muñoz, Tandang Sora, and Pasig. These expansions fulfill the third strategic direction of Goal 25.250, which is to maintain microfinance operations of the NGO.

From Page 1

mix, including the means, risks and value proposition for prospective investors.” The organization plans to adopt the financial analysis techniques to improve its assessment of capital structure mix and analysis of its financial ratios particularly Return on Equity and Return on Assets. The templates on financial planning and forecasting will also be used. But as to where the organization wants to be in terms of capital structuring, Montaos revealed the organization will adapt accordingly as it continues to grow and evolve. Other emergent mechanisms learned were debt structuring, making MFI investment worthy, evolving an overall financial roadmap, regulatory context for capital structuring, MFI financing needs and evolution of capital structure and linking value to capital structure.

Schedule of Branch Inaugurations

• Valenzuela - August 21 • Muñoz - September 4

• San Jose - September 6 • Tandang Sora - Sept. 5

• Meycauayan - August 24 • Marikina - Sept. 11

• Camarin - September 3 • Pasig - Sept. 12



and settle anew with her children in the nearby city of General Santos. Her hobby, dressmaking, became a lifesaver for them.

With her little savings, Belle started her dress shop. Her sewing machine and dedication

to create well-crafted products gave her enough

to generate income, but only a few customers believed in her skill. Being a stranger in that land was a great challenge that moved Belle to double her efforts while coupling it with fervent prayers to God. For three years, her weekly net profit was only Php700. When a friend invited her to enroll in KMBI’s program, she did not hesitate to join. She knew that being in the program would not only provide her additional capital but would also increase her contacts. Rightly so, Belle gained friends and customers. Before long, she won the trust of some famous families who are in the tuna business. With the increasing orders from customers, Belle hired one of her neighbors to help. The arrangement went smoothly for a time, but soon, her every customer demanded for the quality products which only her skilled hands could produce. She

gave in to the demand and found herself staying up until the wee hours of the morning perfecting three to five dresses worth PhP300 apiece for labor and PhP600 for materials. Belle made sure that only choice materials she herself bought from the town of Marbel and Davao City were used. She utilized the amount she loaned to purchase these materials. Now in her seventh loan cycle, Belle is earning a weekly net profit of Php3,000. Recently, Belle was elected vice-president for special projects in her SUCCESS Center. She plans her group to engage in business training. She desires that other women may learn from her lessons on good stewardship of money, time and skills. She believes that, in time, additional income generating projects may be borne out of the group’s diverse skills and talents which were evident in the rag-

making project of disabled persons in her barangay, which she helped generate. Years back, this group of disabled

Doors of BlessingsWhen things turned sour in Belle’s marriage, life opened unexpected...

Milabelle Maningo has been a program member of KMBI in General Santos City since November 2003. Her enrollment to the program opened doors of opportunities and blessings that were beyond her expectations. Belle, as what she is fondly called, is a 38-year-old working mother with three kids. Her firstborn, 23-year-old Joe Alvin, finished with a degree in management accounting. Her second child, 20-year-old Julie Anne, is in her senior year as Nursing student. The youngest, 18-year-old Earl Bryanne, is a junior in BS Marketing. Since she ended a rough marriage eight years ago, Belle has been working herself to the bones making uniforms and neckties for teachers of private and public schools, local entrepreneurs and other customers in order to provide for her children’s needs. Dressmaking was just a hobby for Belle then. Her husband then provided well for the family allowing Belle to manage a restaurant and take care of her children at the same time when they lived in Zamboanga City. When their marriage turned sour, Belle decided to move on

Doors of Blessings/12


9KMBI |

On Creating Higher Product

He decided to live his life for Christ...

Doors of BlessingsThe best translation of the Bible is your life. It sounded like a cliché, but the way Eduardo Jimenez said it during one interview gave me a notion that there’s more depth to this man than what we are seeing. Eduardo Cabral Jimenez or Ed was connected with the Treasury Department of the Central Bank of the Philippines before he joined KMBI in 1993 as Credit Operations Manager. During these times, his wife, Engr. Gloria Picar-Jimenez, gave all the support she could for a husband who was so eager to work for the greater good. Ed grew up in Caloocan City with nine other siblings. He finished Economics at the Polytechnic University of the Philippines. He also completed graduate courses in Public Administration at UP Diliman and at Carleton University, Ottawa Canada. In an interview, Ed divulged how his life is lived.

CK:How do you see KMBI’s work?ECJ: I see KMBI fulfilling its unique calling of integrating faith, credit program and development. I was

drawn to KMBI in 1993 as I see the institution being open to the idea of integrating discipleship commitments and alleviating poverty thru the provision of microfinance services.

CK: What makes you give yourself to this kind of work?ECJ: I came to know the Lord Jesus at a very young age. In my early teens, I was discipled and mentored by people who were committed to the principles and practice of discipleship. CK: Any significant happening in your past that shaped your views today? ECJ: Back in 1973, I consciously made a commitment to make the Lord Jesus Christ not just my personal Savior but also the Lord of my life. From that time on, my focus is to invest in three eternal and lasting investments as a disciple of the Lord. I am committed to invest my life to know more the Triune God, the Word of God, and the people. These are my three lasting investments that would outlive my physical life.

CK: What makes Ed Jimenez an “Ed Jimenez”?ECJ: I am a very passionate man and have a very high commitment to justice issues. When I look at poverty around us, I see that systemic as well as institutions might be the source or contributory to some unjust systems and practices. I want to be used by God to address some of these issues by looking at changing structures, systems, policies and even bringing

people to the same commitment that I have so that we can contribute to alleviation of poverty and provide some level of “shalom” or wholeness to people and communities. In the last 30 years or so, my wife and I have committed to mentor other men, women, and couples in strengthening their spiritual life so that they too might become effective “disciplemakers” or mentors to others. My wife and I are part of the leadership of a local, contextualized ministry focused on mentoring and discipling people.

CK: What is your mission statement? ECJ: Colossians 1:10 – That I may live a life worthy of the Lord and may please Him in every way, bearing fruit in every good work, and growing in the knowledge of God.

CK: What legacy would you want to leave?ECJ: The fulfillment of 2:2 Principle of Timothy when he said “and the things you have learned from me in the presence of many witnesses, these entrust to faithful men (and women) who will be able to teach others also.

Disciple in the Market Place

Eduardo Jimenez (right) shares his passion in discipling others with wife, Dr. Gloria Picar-Jimenez.

Be Christ’s Disciple/11



Excellence through Teamwork” and had Vencent Abraham, operations manager for Mindanao, strengthen their stance on the topic. Abraham pointed out that they must develop strong bond and become good leaders who understand that the quality of team performance measures their own success. He said, “Look for excellence and reward it. Leaders understand that incentives not only help to build morale, they also increase production.” The program is in-line with the operation’s quest for operational excellence. Abraham “We will not stop developing and equiping our manpower until they become globally competitive Christian leaders,” said Abraham. Maca revealed the program’s concept was inspired by the successful method of the previous Chicago Bulls team.

Caraga launches...From page 3

Entrep 101Understanding Your Customers

All businesses have a product or service to offer. But not all businesses succeed. Many businesses fail because customers either have no need for the product or service or they simply cannot afford to pay for these. People buy particular products or avail of services because of a felt need or want. Need refers to a state of deprivation of some basic satisfaction. Wants, on the other hand, are desires for specific goods and services to satisfy particular need. Customers are the most important people or your business. If you do not satisfy them, they will no longer buy from you. On the contrary, more satisfied customers mean larger scale and bigger profits. It will be difficult to satisfy your customers if you do not understand them. Do market research to understand your customers, make better decisions and increase your sales. Market research means getting information about your customers and competitors so that you get a good picture of your position in the market. Market research need not be sophisticated. You can do market research in several practical ways:

1.Talk to your customers. Ask them if they are satisfied with your product or service and what other goods or services they need;2.Find out why some customers do not buy from your business. Is it because your competitors offer a better product, a better price, better service, or is it because they

are more accessible?3.Study your competitors’

businesses. Check out their products or services; what prices they charge; what they do to attract customers to buy; what customers say about the goods and services they buy; and why customers buy from them instead of you.4. Ask your suppliers,

other businesses and business friends which

goods sell well in their businesses.6. Review your sales records and your stock cards to find out which goods or services sell well. What are your bestsellers? What are your slow moving products? Which of your products or services are not being patronized?7.Read newspapers, catalogues, trade journals, and magazines to get information and ideas on new products or services.8. Watch television and listen to the radio to find out what is popular at the moment and to see what other businesses advertise and how they advertise.

Top-down: Butuan branch staff listen intently as the

program is explained; Mindanao Operations

Manager Vencent Abraham shares points on

teamwork.

Reference: Improve Your Business Basics (Philippine Edition), ILO

This is an introduction of a three-part series on discovering program members’ individual capacities and skills to build them up accordingly.


11KMBI |

The example of Ed Jimenez is clear - to become Christ’s disciple, we must intentionally choose to invest our lives to Christ’s discipline. An author said being a disciple is “living a fully human life in this world in union with Jesus Christ and growing in conformity to his image” (Wilkins,p.42). In the book “The Complete Book of Everyday

MFIndex : Verifiable Information - A Reliable Foundation

Primary Factors

Information What to Look for

Character Personal informa-tion about the owner and family

Honesty and integrity Family situation Ability to manage a business Changes in business/family

assets Reputation in community

Capacity Business ability to repay the loan

Cash flow of business, taking into consideration family needs

Repayment capacity History of loan repayment

Secondary Factors

Capital Owner’s Investment Family money invested in the business

Collateral Loan guarantees(back up sources of repay-ment if business cannot repay)

Business assets Personal / Group guarantee Business assets Personal/Family assets

Conditions Key economic issues that can impact the business ability to repay

Economic conditions for business

Risk of price fluctuations and possible downswings

Production risk Direction of the regional

economy

Sustainability of the operations critically begins with area selection, client selection and center management. During the clients selection stage all information needs to be verifiable to set reliable foundation. The process of finding useful information, which you use to make accurate analysis and sound decision, begins with knowing what, where and how to collect information.

WHAT TO LOOK First, verify individual character and ability of borrower or group. Second, check related business activities of the individual. Third, determine existing potential market for her business. Fourth, carefully examine the feasibility of her projected cash flow.

SOURCE OF INFORMATION There are lots of sources for these information. To mention a few reliable ones, go to the network of the individual’s peers and her community leaders to verify the information you gathered. You can also check records or talk with the individual’s customers, suppliers

and creditors. Never decide without sufficient data to back up your recommendations. Decide based on two (or more) testimonies. Statistical

records are also stable sources. The succeeding table presents the fundamental factors in loan analysis.

Christianity,” R.Paul Stevens and R. Banks said that active discipleship involves the following choices and activities:• The use of time. Develop regular patterns of prayer, study and reflection; also, use the gaps in your day to do those;• The use of means. Take advantage

of vehicles of growth and support that are open to us, such as accountability groups and church involvements;• The use of vocation. Consider your job as the area in which to minister as disciple of Jesus;•The use of spiritual disciplines, e.g. fasting, solitude, confession, study, worship, discernment and simplicity.

Be Christ’s Disciple

Our Vision“To see people in

communities live in abundance with

strengthened faith in God and in right relationship with their fellowmen and

the rest of creation.”

Our Mission“KMBI is a Christ-centered development organization,

existing to help transform the lives of its clients and develop

its human resources who will provide sustainable

microfinance, training and demand-driven

non-financial services.”

Core ValuesRespectIntegrity

StewardshipCommitment to the Poor

DisciplineInnovationExcellence

Goal 25.250Reaching out to 250,000 clients on our 25th year

Editorial Advisers: Eduardo C. JimenezEdgardo S. Mercedes Liza D. Eco

Editor: Kris Joy T. Guimary

Assistant Editors: Lea J. Gatpandan

Contributors: Hazel Christine Rosacia, Vencent Abraham, Enrique Maca, Calvin Perez, Evangeline San Pedro, Ian Mark Villacruz, Jennifer Mendaje.

editorial box

Organizational Performance2nd Quarter 2007

Kabalikat para sa Maunlad na Buhay, Inc.Head Office: KMBI Bldg., 12 San Francisco St., Karuhatan, Valenzuela CityTel (02) 291.1484 to 86 l Fax (02) 292.2441 l http://www.kmbi.org.ph

Special Announcement

KMBI’s Biggest Event of the Year is NEAR!

It’s 12 weeks to go to the first Microentrepreneur Summit to be held in Araneta Coliseum. Link with your area

managers for further details of the event. This will definitely be a great event. So pray

and look forward to it!

Doors of Blessings...From Page 6

persons started making rags as source of income. They only had few contacts to help sell their products. When Belle learned of this, she encouraged other program members to grab the opportunity of helping. However, the group was not that interested so she pursued it herself. She spent her savings to buy 100 kilos of rags (PhP15.00 per piece) every week and sold the rags to contacts in Zamboanga City. This endeavor greatly helped the disabled persons provide food for their own families, a fact that helped raise Belle’s spirit to life after being affected by the separation from her husband. She realized that the experience made her see things with grace and love, and her

desire is for other program members to cultivate the same attitude through her influence. Last April, Belle received one of the greatest fruits of her labor – her firstborn son graduated from college. She is overjoyed, but she still wants to continue helping others. Recently, she asked contacts to refer to her needy students that she could sponsor. This schoolyear, two students were able to continue schooling through her. Belle acknowledges that it is the hand of God who has led her and her children out of the grief they experienced and into the joy of sharing these blessings to others.

Client outreach increased by 23.18% as compared to last year and 8.74% as compared to last quarter.

PESO is a performance standard set by the Philippine National Credit Council (NCC), an inter-agency body chaired by the Department of Finance (DOF), to allow the comparison of performance among all institutions engaged in the delivery of microfinancial services and to guide regulators in the assessment of financial institutions under their supervision.

PESO REPORTING

As of 1st Quarter 2007 - 89

I. Portfolio Quality 40/40II. Efficiency 23/30 III. Sustainability 10/15IV. Outreach 15/15 88/100

Rating of 88 = Very SatisfactoryThe MFI has satisfactory performance. It has safe and sound operations and is able to withstand business fluctuations. However, there are some areas in its operations that need special attention, which if left unchecked may negatively affect its MF operations.

Comparative Analysis 2006 vs 2007

(As of March 31, 2007; Forex $1 to

Loan ActivityClient Outreach 102,692Loan Portfolio (US$) 6.9 MValue of Loans Made (US$) 11.88 MAverage Loan Size (US$) 131.80 Ave. No. of Clients per PA 257Portfolio At Risk 3.30%Number of Loans Made 90,205

EfficiencyCost per Unit Lent (US$) 0.0032Cost per Loan Made (US$) 19.51

Human ResourceTotal No. of Staff MF Operations 502 Support Group 44

Sustainability and ProfitabilityFinancial Self-Sufficiency 140.41%Operational Self-Sufficiency 142.48%

(As of June 31, 2007; Forex $1 to Php46.32)

1st Quarter 2nd Quarter -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

86,716 83,392

94,992 102,692

Client Outreach

N

umbe

r of

Clie

nts

2007 2nd qtr issue

Documents

best branch manager

kmbi best employees

best pa category

best support group staff

best program assistant

accounting manager

kmbi partner

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