Transcript Curriculum Framework Report

CURRICULUM FRAMEWORK
REPORT
MAY 2002
Curriculum Framework Report
Contents
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Introduction
International best practice
Training delivery mechanisms
Curriculum content
Recommendations on skills programmes / learnerships
Overall conclusions
Implementation plan
Pre-project decisions
Next steps
2
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 *
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Develop a plan to increase awareness, interest and
understanding of skills development legislation and
BANKSETA Micro finance project
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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
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Assess required unit standards and qualifications
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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*
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Assess existing skills and capabilities, identify gaps
and future focus areas
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Developed a survey for lenders and borrowers
Conducted the surveys
Developed a Lender and Consumer Needs Analysis
Establishment of
curriculum and
consultative forum*
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Identify and appoint stakeholders to participate in
consultative forum
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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
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Develop and agree framework with Curriculum
Development Team
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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
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Develop approach and plan to implement skills
development iniatives
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Assessed the need for a skills programme or
learnership based on requirements of micro financiers
Delivery channel
plan
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Identify most appropriate channels to deliver skills
development initiatives
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Tested the most appropriate delivery mechanism for
the different skill areas and included in the curriculum
framework
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* These deliverables are contained in other reports. This report focuses on the Curriculum Framework
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Definitions
Within the context of this project, the following definitions were used:
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Micro Financier
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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
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Skill
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Delivery Channel
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The medium via which training is delivered in the market place e.g. face-to-face,
Distance learning
Delivery Method
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The ability to repeatedly act on, or apply, basic knowledge
The medium through which learning activities are conducted such as videos, CBT’s,
internet, manuals, case studies
Curriculum Framework
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A set of principles through which a learning plan can be effectively implemented at
various sites of learning
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SA context
The Department of Labour has launched a strategy to partner with a number of
institutions to address skills development in South Africa
Sector Education and Training
Authority (SETA)
National Skills Development Strategy
(NSDS)
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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
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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
BANKSETA identified a need to support micro finance organisations through
skills development and other business development support mechanisms
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Contents
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Introduction
International best practice
Training delivery mechanisms
Curriculum content
Recommendations on skills programmes / learnerships
Overall conclusions
Implementation plan
Pre-project decisions
Next steps
6
Creating a learning culture
A learning culture empowers people to continually expand their capability to
create the desired results, and to learn how to learn together
Shared Vision
Building a sense of
commitment in a group
Mental Models
Team Learning
Reflecting upon and
improving internal
pictures of the world
Conversational and
collective thinking skills
Systems Thinking
Personal Mastery
Understanding the forces
that shape the behaviour
of systems
Learning to expand
personal capacity to
create the desired results
Ref: The Fifth Discipline - The Art & Practice of a Learning Organization,
Peter M. Senge, 1990
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Learning guiding principles
Best 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
Establishing a learning culture is a lengthy process, requiring strong leadership,
clear responsibilities and a holistic plan
• 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
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Learning culture processes
The learning organisation generates a number of different Skills programmes
within the framework of its fundamental approach and philosophies
LEARNING
CULTURE
APPROACH
MODEL
METHODOLOGIES
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
METHODS
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Learning culture processes
Best practice shows that several areas of integration need to be set up in order
to properly manage the delivery of training
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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
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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
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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
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An integrated system which will cater for performance support, knowledge sharing and the
various learning tools would need to be established
An integrated model for the management of the above systems has been
formulated from best practice examples
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Learning culture processes
The management of the learning process and delivery of support would
require a holistic approach to ongoing management and fulfillment
ORGANISATIONS Internal training departments
COMM.
CHANNELS
Communicate
Learn
Desktop
Classroom
Learning
center
Training
division
Practice
Perform
Refine tools
methodology
Certify
Individual Performance Measures and Assessment
INTEGRATED
On-line
PERFORMANCE doc.
SUPPORT
Advisory
support
CBT
Internet
Online
help
Search
engines
Intranet
Task
assistant
Scenario
planners
Agent
engine
Filters
Group
scheduling
Collaboration
Virtual
Classroom
Simulation
Scripting
Expert
systems
Repositories
Tours
CONTENT
Development
Initiation
Staging
Testing
Technical
Training
Region
KNOWLEDGE Knowledge Discussion
maps
threads
SHARING
LEARNING
TOOLS
Training vendors
ENVIRONMENT
Organisational Performance Measures
Communication
tools
DELIVERY
CHANNELS
Outsourced training partners
LEARNING PROCESS
Career
maps
Competency
models
Corporate universities
Production
Training
Facilities
Modeling
Supervisory
Skills
Business
Skills
Corporate
Skills
Other
LEARNING MANAGEMENT
Strategic
planning
Course
development
Curriculum
mgmt
Delivery
processes
Materials
prod./dist.
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Compliance
Trainer
support
External
liaisons
Org.
mgmt
Learning approach
A fundamental approach of combining experiential and situation learning
methodologies generally delivers the most benefits
Experiential learning
Situation 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 selfinitiated 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
• 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
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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
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)
CURRICULUM
FRAMEWORK
METHODOLOGIES
Case studies
Lectures
Videos, etc.
DELIVERY METHODS
Face-to-face learning
Distance learning
IMPLEMENTATION PLAN
Prototype
Pilot
Roll-out
Ref: Skills Development, Ian Bellis, 2001
* Completed in project design phase
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Curriculum framework success factors
Best 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
Ref: Training from Scratch, Nancy Kuhn,
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Curriculum framework barriers to success
Significant 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
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Introduction
International best practice
Training delivery mechanisms
Curriculum content
Recommendations on skills programmes / learnerships
Overall conclusions
Implementation plan
Pre-project decisions
Next steps
17
Training delivery principles
Two main types of training delivery have been proposed, namely Distance
learning and face-to-face delivery
Description
Distance
learning
Advantages
Disadvantages
 Knowledge-based
 Controlled, consistent content
 Delivery media include
videos, internet, CDs,
etc.
• Effective for large groups or multiple
locations
 Require suitable infrastructure to
run training (e.g. computers for
CBTs)
 Does not required trainer/trainee travel
 May be difficult to disseminate
 Can contain large amounts of material
 May be difficult to update material
(CDs or videos, does not apply to
internet)
 Accessible at learner’s convenience
 Limited bandwidth may be result in
slow delivery
FACE-TOFACE
learning
 Skills-based
 Easily customised and revised
 Slow learning rate
 Delivery media include
classroom, mentoring,
apprenticeships, etc.
 Quickly developed
 Inconsistencies from class to class
 Minimal development costs
 Scheduling often presents
difficulties
 Trainees can ask specific questions
 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
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Training Delivery Channels –
face-to-face learning
There are three key face-to-face delivery channels: classroom,workshops and
seminars
Channels
Classroom Training
Workshops
Seminars
Advantages
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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
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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
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Content is a one-time message
Individual feedback may be limited
Individual participation is limited,
Can’t assessment competence
Training Delivery Channels –
face-to-face learning
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
Channels
Coaching
Mentoring
Role Play
Advantages
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Inexpensive to develop
High transfer of knowledge
Directly relevant to trainee’s job
Trainees interact with coworkers
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Disadvantages
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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
 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
Cost /
Development time  Low development cost
 R350 per hour of development time
Inexpensive to develop
High transfer of knowledge
Directly relevant to trainee’s job
Trainees interact with coworkers
Recommendation Could be used to disseminate skills and Subject matter experts could be used
knowledge obtained from seminars,
to consult on best practice and up to
workshops and experience to staff
date views on “Hot Topics” and
members who are new to their role or to problem solving
the organisation. Coaching could also
be used as a means of informal
assessment of learners
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 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
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
Training Delivery Methods –
distance learning
Simulation training, CBT’s and Videos could be used as complimentary as well
as parallel delivery methods to face-to-face channel methods
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
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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, decisionmaking 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 decisionmaking 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
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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
PIENAAR:
Hidden
Training delivery methods –
distance learning
Manuals, multimedia and the internet could be used as complimentary as well
as parallel delivery methods to face-to-face delivery methods
Methods
Paper-based/Electronic Manuals
Interactive multi-media
Internet
Advantages
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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
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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
22
Training delivery methods –
distance learning
Manuals, multimedia and the internet could be used as complimentary as well
as parrallel delivery methods to face-to-face delivery methods
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-toface delivery as well as a parallel medium
for Distance learning
Should be used as the primary
mechanism for distribution of content
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Strategy for delivering training
Principles guiding the delivery of training to micro financiers were developed,
taking into account global best practice

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
Within these guiding principles, an approach to the development,
delivery and management of training has been defined
24
Strategy for delivering training
A central coordinating body, or training centre, is required to ensure efficient
planning, design and delivery of training to micro financiers
LEARNING AND TRAINING DEVELOPMENT
DISTANCE LEARNING
FACE-TO-FACE LEARNING
Call centre
Internet Portal
MICROFINANCIERS
• Downloadable training material
• Access to training catalogues
• Schedule of training courses
TRAINING CENTRE
TRAINING PROVIDER NETWORK
The training center and the proposed BDS centre should be one entity,
to ensure economies of scale
25
Strategy for delivering training
The training centre is responsible for the development, management and
delivery of the training curriculum to the micro financiers
CALL
CENTRE
Phone /
fax
INFORMATION
Training
curriculum
ACTIVITIES
List of training
providers
Review and update curriculum
Manage learner database
Online
access
INTERNET
PORTAL
Catalogue of
training
material
List of subject
matter experts
(SMEs)
Order videos,
CDs, manuals
etc.
Register for
workshops /
seminars
Conduct online
training
Register for
face-to-face
training
FRONT-office
Coordinate trainee feedback
Certification of learners
Research new content / delivery mechanisms
Portal maintenance
BACK-office
Training Center
The training center could be outsourced by BANKSETA
26
Incentives
A 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
Incentives in the form of skills development grants would be the main monetary
incentives for micro finance businesses
27
Contents









Introduction
International best practice
Training delivery mechanisms
Curriculum content
Recommendations on skills programmes / learnerships
Overall conclusions
Implementation plan
Pre-project decisions
Next steps
28
Curriculum content overview
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

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
29
Approach overview
Over the past nine weeks, the team has been actively collecting data and
consulting stakeholders on learner skills and business needs
Research Best Practice
Qualitative Interviews
with Stakeholders
Curriculum Development
Team Workshops
Curriculum
Framework
Consultation with external SME
Consultative Forum Workshops
Web-based
Electronic Survey
Learner Needs Analysis
30
Curriculum content summary
Based upon the learner needs analysis, a high level view of the curriculum
content has been established

Skills areas included in the content of the curriculum :
 Risk management
 Staff management
 Loan book management
 Complaint procedures
 Client service
 Service provider management
 Legal and regulatory compliance
 Marketing
 Cash management
 SMME
 Finance
 Leadership development
 Funding strategies
 Management development
 Business strategies
 Communications
 Client administration
 Personal development
31
Curriculum content summary
Managers / 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
Summary of Skill Areas
100
• 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
90
80
70
Percent
60
50
40
30
20
10
0
Importance (%)
Skill Level (%)
% Received Training
32
Curriculum content summary
Non-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
Summary of Skill Areas
100
92
90
86
90
86
70
70
Percent
50
83
83
83
78
80
60
85
57
69
78
76
67
63
61
58
48
44
75
72
68
59
40
30
20
10
0
Skill Level (%)
62
48
40
Importance (%)
63
% Received Training
33
• 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 nonmanagers, 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
Risk management outline
Risk management had the highest rating of importance in the learner needs
analysis survey
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
Recommended delivery channels and training methodologies
Substantial faceto-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
Classroom based courses should be run to development this important skill
area, supported by coaching and electronic material
34
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
Risk Management
100
90
87
84
83
83
80
Percent\
70
63
68
62
61
60
50
40
30
20
10
0
Fraud
Management
Risk
Management
Importance (%)
Risk and Return
Analysis
Skill Level (%)
Client Credit
Limits
% Received Training
 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 training
There appears to be a high need for training in fraud management and the
setting of client credit limits
35
Risk management
- delivery recommendations
The management of risk is fundamental to the running of a micro finance business
Module
Fraud
Management
Risk
and Return
Analysis
Learning
Outcome
Manage
fraud within
a micro
finance
business
Identify and
apply
appropriate
criteria for
calculating
repayment
ability in
relation to
expected
returns from
loans made
Delivery
Channel
Type of Channel
Training Method
Face-toface
 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
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
 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
business
Face-toface
 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
Distance
Learning
 Electronic Information Exchanges and Webbased training, could be used to disseminate
content information cheaply throughout the country
 Training materials could be obtained through a
BDS call centre / support centre
36
 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
Risk management
- delivery recommendations
The management of risk is fundamental to the running of a micro finance business
Module
Learning
Outcome
Delivery
Channel
Risk
Management
Structure a
risk
management
policy and
procedure for
a micro
finance
institution
Face-toface
 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
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
Face-toface
 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
Distance
Learning
 Electronic Information Exchanges and Webbased training, could be used to disseminate
content information cheaply throughout the
country
 Training materials could be obtained through a
BDS call centre / support centre
37
Client Credit
Limits
Set
standardised
credit limits
for clients
Type of Channel
Training Method
 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
 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
Loan book management outline
Loan book management was rated as the second most important skill in the
survey
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
Recommended delivery channels and training methodologies
Substantial faceto-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
This key skills needs to be developed through classroom-based learning,
supported by coaching and electronic material
38
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
Percent
Loan Book Management
100
90
80
70
60
50
40
30
20
10
0
91
88
77
87
84
74
72
70
64
Loan
Repayments
Loan Book
Reconciliation
Importance (%)
Bad Debt
Recovery
Processes
Skill Level (%)
58
Interest
Calculations
Debt Collector
Appointment
and
Management
% 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
Staff need to be trained on how to manage the bad debt recovery process, as
well as the appointment and management of debt collectors
39
Loan book management
delivery recommendations
Loan book management is a core business function for a micro financier
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-toface
 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
Face-toface
 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
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
40
 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
Loan book management
delivery recommendations
Loan book management is a core business function for micro financiers
Module
Learning
Outcome
Delivery
Channel
Type of Channel
Bad Debt
Recovery
Process
Set up
procedures,
systems and
practices to
recover
overdue loan
repayments
and bad
debts
Face-toface
 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
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
41
Training Method
 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
Loan book management
delivery recommendations
Loan book management is a core business function for micro financiers
Type of Channel
Module
Learning
Outcome
Delivery
Channel
Interest
Calculation
Calculate
interest on
different
loans in a
micro finance
business
Face-toface
 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
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
Face-toface
 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
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
Debt
Collector
Appointment
and
Management
Appoint and
manage debt
collection
agents
42
Training Method
 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
 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.
Cash management outline
According to the results from the survey, cash management has the third
highest rating of importance
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
Recommended delivery channels and training methodologies
Predominantly
Internet –based and
paper-based training
materials
Supported by
coaching,
seminars and
workshops
The development of industry best practices could be used to develop industrywide policies and procedures for the containment of physical risk for micro
financiers
43
Cash management
survey results
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
100
90
82
79
80
70
67
63
Percent
60
50
40
30
20
10
0
Cash Management Procedures
Importance (%)
Skill Level (%)
 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
Security Policies and Procedures
% Received Training
There appears to be a need for training in the security policies and procedures
pertaining to cash management
44
Cash management
- delivery recommendations
The management of cash is core to the running of a micro finance business
Module
Cash
Management
Procedures
Security Policies
and Procedures
Learning
Outcome
Delivery
Channel
Develop policies
and procedures
to manage daily
cash floats and
cashing up to
ensure effective
control
Face-toface
 Face to face training methodologies not
indicated due to the nature of the subject
being predominantly policy and procedure
setting based
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
Set up policies
and procedures
for limiting the
amount of cash
on the premises
and securing the
premises against
robberies, theft
and fraud
Face-toface
Distance
learning
Type of Channel
 Face to face training methodologies not
indicated due to the nature of the subject
being predominantly policy and procedure
setting based
 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
45
Training Method
 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
 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
Cash management
- delivery recommendations
The management of cash is core to the running of a micro finance business
Module
Cash
Management
Procedures
Security Policies
and Procedures
Learning
Outcome
Delivery
Channel
Type of Channel
Develop policies
and procedures
to manage daily
cash floats and
cashing up to
ensure effective
control
Face-toface
 Face to face training methodologies are not
recommended due to the nature of the
subject being predominantly policy and
procedure setting based
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
Set up policies
and procedures
for limiting the
amount of cash
on the premises
and securing the
premises against
robberies, theft
and fraud
Face-toface
Distance
Learning
 Face to face training methodologies not
indicated due to the nature of the subject
being predominantly policy and procedure
setting based
 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
46
Training Method
 Electronic and paper-based manuals could be used to
help establish content knowledge of how to develop
policies and procedures
 Electronic and paper-based manuals could be used to
help establish content knowledge of how to develop
policies and procedures
Client service outline
Client service was rated as the fourth most important skill area in the learner
needs analysis survey
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
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
47
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 Service
87
85
70
81
79
71
60
Percent
100
90
80
70
60
50
40
30
20
10
0
Client Request
Resolution
Product and
Service
Knowledge
Importance (%)
Client
Acquisition &
Retention
Strategies
Skill Level (%)
77
65
57
Client Education
and Coaching
Client Service
Improvement
% 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 acquisiton & retention’ is an important skill and training in this skill
could receive a high priority due to the low level training received
48
Client service
delivery recommendations
With increasing competition, client service will become one of the differentiators
in the micro finance industry
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-toface
 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
Face-toface
 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
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
49
 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
Client service
delivery recommendations
With increasing competition, client service will become one of the differentiators
in the micro finance industry
Module
Client
Acquisition
and
Retention
Strategies
Client
Education
and
Coaching
Learning
Outcome
Identify
innovative
ways of
acquiring and
retaining
customers on
an ongoing
basis
Educate and
coach clients
in skills to
handle their
finance so that
they can meet
their
commitments
and not incur
excess debt
Delivery
Channel
Type of Channel
Training Methodology
Face-toface
 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
Face-toface
 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
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 materials50
from a central point
 Electronic and paper-based manuals could be
used to help establish the “how” and the “what” to
communicate to clients
Client service
delivery recommendations
With increasing competition, client service will become one of the differentiators
in the micro finance industry
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-toface
 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
51
Finance outline (1)
Finance has nine skill areas that require development
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)
52
Finance outline (2)
Finance has nine areas that require development
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).
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
53
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
Finance
100
90
83
82
82
80
Percent
70
67
64
82
65
79
62
78
77
62
60
57
77
65
61
66
48
50
40
30
20
10
0
Cost
Mgt
Mgt
Report
Prep
Financial Business Budgeting
Statement Ethics & Financial
Prep
Alignment Planning
Importance (%)
Skill Level (%)
Internal Accounting Cashflow
Tax
Audits
Packages
Mgt
Calculations
% 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
Training could be offered across all finance skill areas to the relevant people
who fulfill financial functions in micro finance organisations
54
Finance
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Cost
Manage
ment
Understand
cost
management
data and cost
management
reports
required to
run a micro
finance
business
Face-toface
 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
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
Face-toface
 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
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
Manage
ment
Report
Prepara
tion
Prepare and
interpret
management
reports on
client trends,
overdue
loans, bad
debt and
other
information
essential to
managing a
micro finance
business
Type of Channel
55
Training Method
 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
 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
Finance
delivery recommendations
Module
Learning Outcome
Delivery
Channel
Financial
Statement
Preparation
Prepare and /or
read the financial
statements and
form an opinion of
the financial health
of the business
Face-toface
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
Type of Channel
 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
Distance
Learning
 Electronic Information Exchanges and Webbased training, could be used to disseminate
content information cheaply throughout the
country
 Training materials could be purchased from a
BDS call centre / training centre
Face-toface
 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
Distance
Learning
 Electronic Information Exchanges and Webbased 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
Training Method
 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
 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
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-toface
 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
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
 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
57
Finance
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Type of Channel
Training Method
Internal
Audit
Examine
the
business’s
accounting
records,
processes,
systems
and
administrati
on to
ensure
compliance
and to
prevent
fraud
Face-toface
 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
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
 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 microfinance business
58
Finance
delivery recommendations
Module
Accounting
Packages
Learning
Outcome
Delivery
Channel
Type of Channel
Training Method
Use
computerbased
accounting
packages
Face-toface
 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
Cash Flow
Management
Understan
d the
amount of
cash
needed to
fund
demand for
loans
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
 Case studies could be used to show the
application of accounting packages in micro
finance businesses
Face-toface
 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 :
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
59
 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
Finance
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Type of Channel
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
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
Training Method
 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
Client administration outline
Client administration has two areas that require development
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
Recommended delivery channels and training methodologies
Foundational
skills
development
though coaching
Internet-support
based materials
61
Business
simulation and
case studies
Client administration
survey 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
Client Administration
100
90
80
85
72
Percent
70
61
60
49
50
40
30
20
10
0
Client Information Processing
Importance (%)
 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
Safekeeping of Client Assets as Surety
Skill Level (%)
% Received Training
Training needs to be developed around current and future means of safeguarding client assets as surety for loans
62
Client administration
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
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
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
Distance
learning
Type of Channel
 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 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
63
Training Method
 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
 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
Staff management outline
Staff management has six areas that require development
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 &
Establishing policies and procedures to address grievances of employees and apply discipline
Disciplinary Policies &
fairly and procedurally correct
Procedures
Recommended delivery channels and training methodologies
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
64
Staff management
survey 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
Staff Management
100
90
80
75
75
Percent
70
60
60
73
72
63
55
72
58
70
57
56
50
40
30
20
10
 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
0
Performance
Management
Reward and Business Process Recruitment
Recognition
& Systems
Management Improvement
Importance (%)
Skill Level (%)
Training Needs
Analysis
Grievance &
Disciplinary Policies
& Procedures
% Received Training
Training in staff management needs to be delivered to improve the work
experience of employees and provide them with personal development
65
Staff management
delivery recommendations
Module
Performance
Management
Reward and
Recognition
Management
Learning
Outcome
Delivery
Channel
Type of Channel
Training Method
Develop
processes and
tools to
evaluate the
performance of
employees
Face-toface
 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
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
 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
Face-toface
 Seminars and workshops could be used
to showcase latest findings and trends in
reward and recognition management from
experts in the 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
Establish and
apply fair
rewards and
recognition
processes
which are
linked to
individual
and/or team
performance
66
 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
Staff management
delivery recommendations
Module
Business
Process and
Systems
Improvement
Learning
Outcome
Identify and
implement
business
process
changes and
system
upgrades to
improve your
business
Delivery
Channel
Type of Channel
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
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
Training Method
 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
Staff management
delivery recommendations
Module
Recruitment
Training
Needs
analysis
Learning
Outcome
Appoint people
with the required
skills and
knowledge in a
business
Implement or
outsource training
programmes that
will improve work
performance
Delivery
Channel
Type of Channel
Training Method
Face-to-face
 Seminars and workshops could
be used to showcase latest findings
and trends in funding strategies
from experts in the industry
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
 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:
Face-to-face
 Seminars and workshops could
be used to showcase latest findings
and trends in training needs
analysis from experts in the industry
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
68
 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
 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
Staff management
delivery recommendations
Module
Grievance &
Disciplinary
Policies
&
Procedures
Learning
Outcome
Identify
policies and
procedures to
address
grievances of
employees
Apply discipline
which is fair and
procedurally
correct
Delivery
Channel
Type of Channel
Training Method
Face-toface
 Seminars and workshops could be used
to educate individuals on legislation on
policies and procedures from experts in the
industry
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
 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.
69
Service providers outline
Service providers has two areas that require development
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
Recommended delivery channels and training methodologies
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
70
Service providers
survey 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
Service Providers
100
 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
90
80
70
Percent
60
68
66
56
54
50
40
30
20
15
12
10
0
Contract Management
Importance (%)
Skill Level (%)
Service Level Agreements
% Received Training
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
71
Service providers
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Contract
Management
Establish formal
contracts with
service
providers
Face-toface
 Workshops presented by industry experts
could be used to build contract
management capability
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-toface
Distance
learning
Type of Channel
 Workshops presented by industry experts
could be used to build a service level
agreement capability and build negotiation
skills
 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
72
Training Method
 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
 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
Funding strategies
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Type of Channel
Capital
Requirements
Provide the
correct amount
of capital
required to
grow a
business
Face-toface
 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
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
73
Training Method
 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
Funding strategies
delivery recommendations
Module
Employment
of Capital
Learning
Outcome
Identify capital
employment
techniques to
grow a
business
profitably
Delivery
Channel
Type of Channel
Face-toface
 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
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
Training Method
 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
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-toface
 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
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
 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 source
75
Complaint procedures
delivery recommendations
Module
Resolving
Complaints
Complaints
Logging
Learning
Outcome
Establish a
procedure for
resolving
complaints raised
by clients
Establish a process
for logging client
complaints
according to
regulatory
requirements
Delivery
Channel
Type of Channel
Face-toface
 Face to face training methodologies not
indicated
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
Face-toface
 Face to face training methodologies not
indicated
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
76
Training Method
 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.
 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
Business strategies outline
Business strategies consist of two areas that require development
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
Recommended delivery channels and training methodologies
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
77
Business strategies
survey 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
Business Strategies
100
90
80
Percent
70
76
72
65
59
60
50
40
30
20
 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
10
0
Business Strategy Development
Importance (%)
Skill Level (%)
Industry Analysis
% Received Training
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
78
Business strategies
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Business
Strategy
Develop
ment
Identify goals
and objectives
for a business
Face-toface
 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
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-toface
Distance
learning
Type of Channel
 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
 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
79
Training Method
 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
 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
Marketing outline
Marketing contains 5 key skills that need to be developed
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 /
Identification of additional micro financing product/service needs
Services Needs
Identification
Recommended delivery channels and training methodologies
Foundational
skills
development
through
classroom
training
Seminars and
workshops
Case studies and
manuals
The provision of marketing training should be practical in nature in order to
develop readily transferable80skills in the industry
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
Marketing Management
100
90
80
Percent
70
60
71
67
59
67
64
63
55
53
49
50
45
40
30
20
10
0
Competitor
Analysis
Marketing Plan
Development
Importance (%)
New Product/
Services Needs
Identification
Skill Level (%)
New Product/
Services
Development
 ‘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 Materials
Development
% Received 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
81
Marketing
delivery recommendations
Module
Competitor
Analysis
Marketing
Plan
Development
Learning
Outcome
Delivery
Channel
Identify
what
products
and
services
your
competitors
offer, and
how they
deliver
those
products
and
services to
their clients
Face-toface
 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
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
Face-toface
 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
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
Design and
develop a
marketing
plan
Type of Channel
82
Recommended Training
Methodology
 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
 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.
Marketing
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
New
Products /
Services
Needs
Identification
Identify new
micro
financing
product/ser
vice needs
Face-toface
 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
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
Face-toface
 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
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,
characteristi
cs and
delivery
Type of Channel
83
Recommended Training
Methodology
 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
 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
Marketing
delivery recommendations
Module
Learning
Outcome
Delivery
Channel
Type of Channel
Marketing
Materials
Development
Design and
develop
marketing
material
that will
create
awareness
of your
products
and
services
and
increase
revenue
Face-toface
 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
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
Training Method
 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
SMME outline
SMME consists of four key areas which need to be developed
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
Recommended delivery channels and training methodologies
Foundational
skills
development
through
classroom
training
Supported by
manuals and
case studies
Supported up by
seminars,
workshops and
coaching
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
85
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
SMME Financing
100
90
80
Percent
70
67
62
60
50
59
58
46
39
38
40
38
30
20
10
13
11
9
8
0
Evaluation of
SMME business
Alternative Ways
of Securing Loans
Importance (%)
Structure Financial
Solutions
Skill Level (%)
Monitoring
Progress
% 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
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
86
SMME
delivery recommendations
Module
Evaluation
of SMME
business
Alternative
ways of
securing
loans
Learning
Outcome
Delivery
Channel
Type of Channel
Training Method
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
Face-to-face
 Seminars and workshops could be used
to showcase latest findings and trends on
means of securing loans
Distance
learning
 Electronic information exchanges and
web -based training, could be used to
disseminate content information cheaply
throughout the country
Identify
alternative means
of securing loans
with SMME
(guarantees)
87
 Case Studies could be used to impart
contextual and situational knowledge and
solutions
SMME
delivery recommendations
Module
Structure
Financial
Solutions
Monitoring
Progress
Learning
Outcome
Delivery
Channel
Type of Channel
Training Method
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
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
Distance
learning
 Electronic information exchanges and
web training could be used to
disseminate content and best practice
information
Monitor the
developments of
the SMME
through financial
reporting, audits
and progress
updates and
reviews
88
 Case Studies could be used to impart
contextual and situational knowledge and
solutions
Additional skills identified
Several soft skills areas have been identified as potential training and
development needs within the micro finance industry
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
Recommended delivery channels and training methodologies
Foundational
skills
development
through
workshops and
seminars
Supported by
manuals, videos,
internet-based
learning, CBT
and case studies
Supported by
seminars,
workshops and
coaching
The above skills could be seen as complimentary to the “hard” skills proposed
in the preceeding sections
89
RFI skills analysis
Retail financial institutions (RFI) would supply funding to the SMME market. A
separate needs analysis was conducted on their specific needs
Percent
Summary of Skill Areas
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
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
Funding strategies and loan book management were seen as the top two skills
required by RFIs
90
RFI skills areas
Funding strategies is perceived to be the most important skill area by the RFIs
Percent
Summary of Skill Areas
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
t
g
e
s
E
nt
nt
gt
ce
ce
il ls
ic
in
en
ng
e
ie
e
M
t
i
n
n
k
v
M
t
g
r
m
m
a
m
t
S
ia
ke
ui
te
SM
in
pl
y
Se
ge
ge
ge
ar
ac
cr
F
ra
g
r
t
a
a
t
a
e
m
t
M
n
te
o
S
R
an
an
an
on
li e
FI
FI
ra
lc
t
m
M
M
C
ng
C
a
R
R
i
S
k
g
h
FI
nd
FI
oo
Le
as
u
R
R
B
F
C
d
an
an
o
y
L
or
at
l
u
eg
R
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
High importance areas with low skill levels and a low % of trained respondents
should be high priority areas for future training initiatives
91
Summary –
skills gap
A skills gap for RFIs was was conducted by subtracting the ‘skill level’ from the
‘importance’
Summary of Skill Gaps
• ‘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
Contract Mgt
SMME
RFI - Finance
RFI Marketing
Regulatory and Legal compliance
Management
Cash Management
Recruiting
RFI Client Service
RFI Strategy Skills
Loan Book management
Experience
Funding Strategies
0%
Importance
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent
The higher skills gaps highlight the priority areas for skills training
92
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
93
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
94
Contents









Introduction
International best practice
Training delivery mechanisms
Curriculum content
Recommendations on skills programmes / learnerships
Overall conclusions
Implementation plan
Pre-project decisions
Next steps
95
Recommendations on skills
programmes / learnerships
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

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
•

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 microfinanciers
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


In the past, training has either been very generic in nature or very specific to a particular business
Extensive use of the 80/20 principle should be used in this regard where the key skills areas for microfinanciers 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 could be made up of modules within skills areas which micro
financiers can pick and choose from, depending upon their training needs
96
Recommendations on skills
programmes
Several skills programmes, made up of modules could be implemented. The
overall guiding principle should be flexibility of learning, based upon learner
needs
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

Skills
programmes
Modules
e.g. within Risk Management,
Fraud Management
as a module could form the
basis for a credit towards a qualification
in micro finance

Orientation

Skill areas
e.g. Risk Management,
Client service,
Loan book Management
Relevance, importance and necessity of the Skills
programme should be driven through micro-finance business
needs and demand
Learning Activities

Sequencing of learning
High level recommendations of the sequencing of learning events
should be formulated
e.g. Business strategy should come before funding
Ref: Skills Development, Ian Bellis, 2001
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
97
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
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
Elective Learning
Definition:
Definition:
Definition:
Learning which forms the grounding or
basis needed to undertake further
learning required in obtaining a
qualification
Compulsory learning required in
situations contextually relevant to a
particular qualification
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 fundamental skill areas:
Suggested core skill areas:
• Client Service
• Risk Management
• Finance
• Client Administration
• Cash Management
• Marketing
• Complaint Procedures
• Legal and Regulatory Compliance
• Funding strategies
• Communications
• Loan Book Management
• Business Strategies
• Personal development
• Staff Management
• Leadership Development
• Management development
98
Suggested elective areas:
Overall conclusions
Skills programmes, made up of prioritised modules could be implemented as
flexible learning offerings to the micro-finance industry




The implementation of the training should be pushed through in the form of modularbased 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
Learning initiatives should be prioritised by industry skills needs
99
Recommended implementation
approach
DETAILED DESIGN
PROTOTYPE
PILOT
ROLL OUT
Agree with findings and recommendations
Curriculum
Select training providers
Select Micro
financiers for
prototype
Select Micro financiers
for prototype
Select Micro
financiers for
roll out
Detailed design of curriculum, including the development
of skills programmes within the curriculum
Prototype:
Training Program
Pilot:
Training
Program
Roll Out Phase 1 Training Program
Development of unit standards, based upon skills programmes
*
Consultative Forum Sessions
Month 1
Month 2
Month 3
Project Management
Communication
*Unit standard development would probably continue for at least a two year period
100
Month 4
Month 5
Next steps
Prioritised skills areas should be agreed upon and developed first




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
Learning initiatives should be prioritised by industry skills needs
101