Microfinance Toolkit - Microfin Strategic Planning

We would be delighted to put our expertise to work for you in developing a business plan for your microfinance bank or institution. We use the world-class Microfin® planning framework to deliver best-of-breed strategic plan, operational plan and scenario-based financial models which are guaranteed to effectively guide your institution to success in the marketplace.

Our Methodology
We adopt a phased approach to the project, during which we hold strategy sessions with your board and executive management team.

Phase 1 – Articulating the corporate vision, mission, core values and goals
We spend a few hours with the ownership and top management to articulate and clarify the institution’s underlying philosophy, vision, mission and core values. The output of this session will be the vision, mission, goals and core value statements.

Phase 2 – Understanding the environment, markets & clients
This phase consists mostly of field work where we design suitable questionnaires and conduct surveys to gather empirical data which enable us understand the nature and structure of your chosen market territory. This will enable us determine:

Market size, structure and trends
Client demographics and characteristics
Competition and related challenges
Regulatory environment and challenges
Market opportunities and threats

Phase 3 – Fashioning a competitive strategy
Based on our findings in Phase 2, we propose a competitive strategy mix for management consideration. This covers:

Product development strategy
Market penetration strategy, including a realistic but challenging growth trajectory
Institutional development and capacity building strategy
Proposed targets and timelines over a 5-year period for:

Products and services
Customer base
Branch network
Financing sources and volumes
Operational efficiency metrics

These proposals are presented to management at a second strategy session where they are debated towards reaching a consensus on the underlying assumptions for the financial modeling phase.

Phase 4 – Operational strategy & financial modeling
The underlying assumptions agreed upon in Phase 3 are used to build scenario-based financial models using the Microfin® modeling tool. This exercise generates projected figures showing the quantitative impact of the strategic decisions taken by management.

These figures are presented to management at a third strategic session where they have the opportunity to review them and make desired changes in strategies and/or assumptions. Because our modeling tool is highly interactive, it allows the impact to be seen as the changes are made.

A print copy complete business plan for the institution is submitted, incorporating all the components discussed above.
A Microsoft Excel copy of your financial model is installed on a computer in your institution
Two staff of your institution are trained on the use of Microfin® scenario modeling and variance analysis modules to monitor your institution’s performance against targets on an on-going basis